dudhsagar dairyrreport 2009,10

MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED

MEHSANA DISTRICT CO-OPERATIVE MILKMEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED - MEHSANA.PRODUCERS UNION LIMITED - MEHSANA.

N.R.VEKARIA INSTITUTE OF BUSINESS MAGAGEMENT STUDIES, JUNAGADH 1


PREPARED BY: PROJECT GUIDE: SANDIP A. PATEL Prof. C.D.LAKHLANIM. B. A. Sem.-III

SUBMITTED TO:N. R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES

JUNAGADH

SAURASHTRA UNIVERSITY – RAJKOT

ACADAMIC YEAR2009-2010



PREFACE

As a part of my curriculum for M.B.A. , I am supposed to prepare a

report in to gain better insight to study the whole environment of

industries as well as organization.

So I have chosen MEHSANA DISTRICT CO-OPERATIVE MILK

PRODUCERS UNION LTD. It is one of the biggest Co-operative Dairy of

India in Procurement.

During preparation of this project report we came to know about various

aspect of the company .It is indeed a golden opportunity for us in the study

management and a matter of esteem by itself.

Due to making this report we came to know about various aspect of the

company, it is indeed a golden opportunity for us in the study management

and a matter of esteem by itself.



STUDENT DECLARATION

The undersigned Mr. PATEL SANDIP A., the student of M.B.A. - II

semester , here by declared that the project work in this report is my own

and have been carried out under the supervision of Prof. CHETAN D.

LAKHLANI of N. R. VEKARIA INSTITUTE OF BUSINESS

MANAGEMENT STUDIES – JUNAGADH.

I have collect data from the company from a different departments and

library and also from the internet. It is not a secondary data which is use in

this report. It is a fresh and primary data only. This is my responsibility to

submit this report to concern authority because it is part of our study.

At last, I submit this report to the college and complete my responsibility to

submit a SUMMER TRAINING REPORT on MEHSANA DISTRICT CO-

OPERATIVE MILK PRODUCERS UNION LIMITED, MEHSANA.

THANKING YOU

DATE: YOURS FAITHFULY



PLACE: JUNAGADH PATEL SANDIP A.

ACKNOWLEDGEMENT

With a deep sense of gratitude, I wish to express my sincere thanks to

all who supported me, given me their precious time, opinions and suggestions

to complete my project. First of all, I would like to thank Prof. NISHAR

MUNSHI sir, Director of our Institute for giving me this great opportunity to

undergo training at one of the most reputed dairies in India named

Dudhsagar Dairy.

The project report will be considered incomplete without acknowledging the

people who have helped me a lot to make it complete. First of all I am

thankful to management authorities for providing me with the opportunity to

carry out my training in the organization.

I am thankful to Mr. PULAK MUKHARJI sir of Sales dept giving us this

opportunity to under go training at “sales Department” in which we have

taken vital experience. I am thankful to Dr. JAYESH BODA sir. Also I have

thankful to Mr. JEORGE sir the Assistant Manager (account department)

and Mr. A.L.DASH Senior officer providing us Account Department of the

Organization.

I am thankful to Mr. B.K.RANA. AGM (Engineering), Mr. J G PATEL A.M

(H.R & Admin.) and Ms KINNARI Jr. Executive (H.R & Admin.) guided us

regarding our subject & providing us necessary information throughout our

training.

I am thankful to all respondents for their contribution & also co-

operation in making the project report successfully without which the

report has not been possible & completed.



SANDIP A. PATEL

Sr.no. PARTICULAR Pg.

no.

GENERAL INFORMATION

1 Executive summary 10

2 Industry information 11

3 Company overview 17

4 Functional Area information 24

DEPARTMENTS

5 PART - APRODUCTION / OPERATION DEPARTMENT1 Introduction 262 Organization structure 273 Types of production process 284 Types of plant layout 455 Selection of location 486 Types of raw material and procurement 497 Material handling system 508 Production planning and control system 519 Repair and maintenance 5210 Introduction to material management 5211 Purchase department 55



12 Inventory control 5713 Quality assurance 59

6 PART – BMARKETING DEPARTMENT

1 Introduction 612 Organization structure 653 Product 65

3.1 Product mix 653.2 Product life cycle 693.3 New product development 703.4 Branding and packaging 72Pricing – Methods and strategies 73

4 Promotion mix 744.1 Advertising 744.2 Sales promotion 74

5 Channel management

7 PART – CFINANCE / ACCOUNTING DEPARTMENT

1 Introduction 772 Organization structure 793 Capitalization and capital structure 814 Leverage analysis 825 Capital budgeting 836 Sources of finance 857 Working capital management 86

8 PART – DHUMAN RESOURCE DEPARTMENT

1 Introduction 942 Organization structure 953 Human Resource planning 95



4 Recruitment sources 965 Selection methods 976 Placement 987 Training and development 1008 Performance appraisal policy 1029 Wage and salary administration – job evaluation 10310 Promotion and Transfer 10411 Role of Human Resource Development 10512 Trade union and industrial relation 10613 Dispute management 10714 Social responsibility 107

9 General summary and findings 108

10 Bibliography 110



1. ECUTIVE SUMMARY

“Practice makes a man perfect”. A man can become perfect with a perfect

knowledge and experience. As a student of business administration, we have

studied many theories in the classroom but any professional degree is incomplete

without practical knowledge of concerned field.

And the same case is with management studies, management is

incomplete without knowing practical application of theories studied. I have

experienced and understood the practical importance of these theories on this

training. More books and theoretical knowledge can’t help you in any field

whether it is management or technical. Only thing can help you is practical

knowledge.

This training provides a golden opportunity to the students for getting a

perfect knowledge and experience. During the training I came to know how

actual is the world of marketing and we should have some extra skills to be the

leader.

As a part of my learning in management field and requirement of MBA

programme, I have been given an opportunity to grab practical knowledge in the

area of marketing and I had selected “MEHSANA DISTRICT CO-OPERATIVE

MILK PRODUCERS UNION LTD.”, MEHSANA. I have made my best efforts

to get knowledge and experience. During this training, I had collected necessary

information, and I present all the necessary information to understand the until

well.



2. INDUSTRY INFORMATION

INTRODUCTION

The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value added milk products in the world. The dairy sector has developed through co-operative in many parts of the state. During 1997-98, the state had 60 milk processing plants with an aggregate processing capacity of 5.8 million liters per day. In addition to these processing plants, 123 government and 33 co-operative milk chilling centers operate in the state.

Dairy is a place where handling of milk and milk products are done and technology refers to the application of scientific knowledge for practical purposes. Today, the dairy industry is focusing on the other products like ice cream, pizza, cheese, milk powder etc. because of the excess milk available and availability of the potential market, the Indian dairy industry has broken all the traditional boundaries of producing only milk.

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs 7,00,000 million.



BACKGROUND

India with 134mn cows and 125mn buffaloes and has the largest population of cattle in the world. Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently there are around 70,000 village dairy cooperatives across the country. The co-operative societies are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy federation. Milk production gives employment to more than 72mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by USA. The milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year. This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five milk producing nations in the world are India, USA, Russia, Germany and France.

Production of milk in India

Year Production in million MT

1988-89 48.4

1989-90 51.4

1990-91 53.7

1991-92 56.3

1992-93 58.6

1993-94 61.2

1994-95 63.5

1995-96 65

1996-97 68.5



1997-98 70.8

1998-99 74.7

2020(T) 240.0

T= target / expected

WORLD'S MAJOR MILK PRODUCERS

(Million MTs)

Countries 1998 1997 1996

India 74 71 68

United States 71 71 70

Russian Federation 33 34 36

Pakistan 22 21 20

Brazil 22 21 19

Ukraine 14 15 16

Poland 12 12 11

New Zealand 12 11 10

Australia 10 9 9

EMERGING DAIRY MARKETS Food service institutional market: It is growing at double the rate of

consumer market Defense market: An important growing market for quality products at

reasonable prices Ingredients market: A boom is forecast in the market of dairy products used

as raw material in pharmaceutical and allied industries Parlour market: The increasing away-from-home consumption trend opens

new vistas for ready-to-serve dairy products which would ride piggyback on the fast food revolution sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of modernization, would have a place in the sun of prosperity for many decades to come. The one index to the statement is the fact that the projected total milk output over the next 15 years (1995-2010) would exceed 1457.6 million tonnes which is twice the total production of the past 15 years!

Market Size And Growth



Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. The top 6 states Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.

About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality however, it poses a higher risk of adulteration and contamination.

The production of milk products, i.e. milk products including infant milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same year.

MAJOR PLAYERS

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation.

MAJOR DAIRY PRODUCTS MANUFACTURERS

Some of the major dairy products manufacturers in the country:

Company Brands Major Products

Nestle India Limited Milkmaid, Cerelac, Lactogen, Milo, Everyday

Sweetened condensed milk, malted foods, milk powder and Dairy whitener

Milk food Limited Milk food Ghee, ice cream, and other milk products

Indodan Industries Limited

Indana Condensed milk, skimmed milk powder, whole milk powder, dairy milk whitener, chilled and processed milk



Gujarat Co-operative milk Marketing Federation Limited

AmulButter, cheese and other milk products

Britannia Milkman Flavoured milk, cheese, Milk Powder, Ghee

Cadbury Bournvita Malted food

FUTURE PROSPECTS

India is the world's highest milk producer and all set to become the world's largest food factory. In celebration, Indian Dairy sector is now ready to invite NRIs and Foreign investors to find this country a place for the mammoth investment projects. Be it investors, researchers, entrepreneurs, or the merely curious – Indian Dairy sector has something for everyone.

Milk production is relatively efficient way of converting vegetable material into animal food. Dairy cows, buffaloes, goats and sheep can eat fodder and crop by products which are not eaten by humans. Yet the loss of nutrients energy and equipment required in milk handling inevitably make milk comparatively expensive food. Also if dairying is to play its part in rural development policies, the price to milk producers has to be remunerative. In a situation of increased international prices, low availabilities of food aid and foreign exchange constraints, large scale subsidization of milk conception will be difficult in the majority of developing countries.

Hence in the foreseeable future, in most of developing countries milk and milk products will not play the same roll in nutrition as in the affluent societies of developed countries. Effective demand will come mainly from middle and high income consumers in urban areas.

There are ways to mitigate the effects of unequal distribution of incomes. In Cuba where the Government attaches high priority to milk in its food and nutrition policy, all pre-school children receive a daily ration of almost a litre of milk fat the reduced price. Cheap milk and milk products are made available to certain other vulnerable groups, by milk products outside the rationing system are sold price which is well above the cost level. Until recently, most fresh milk in the big cities of China was a reserved for infants and hospitals, but with the increase in supply, rationing has been relaxed.

In other countries dairy industries have attempted to reach lower income consumers by variation of compositional quality or packaging and distribution methods or



blending milk in vegetable ingredients in formula foods for vulnerable groups. For instance, pricing of products rich in butter fat or in more luxury packaging above cost level so as to enable sales of high protein milk products at a some what a reduced price has been widely practiced in developing countries. This policies need to be brought in Indian Dairy scenario.

DAIRY INDUSTRY IN GUJARAT

Gujarat Cooperative Milk Marketing Federation (GCMMF)

OVERVIEW

Gujarat cooperative milk marketing federation is India’s largest food products marketing organization. It is a state level apex body of milk cooperative in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

MEMBERS 12 DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION

No. of producer members 2.41 million

No. of village societies 11,615

Total milk handling capacity 7.4 million liters per day

Milk collection (total- 2004-05) 2.08 billion liters

Milk collection (daily avg. 2004-05) 5.71 million liters

Milk drying capacity 511 metric tones per day

Cattle feed manufacturing capacity 2340 metric tones per day



3. COMPANY OVERVIEW

The Mehsana District Co-operative Milk Producers’ Union Limited, Mehsana is

one of the largest Co-operative Dairy in whole of Asia and is in existence for

more than last 40 years. The Union functions under a Co-operative setup wherein

1100 Village Dairy Co-operative societies in Mehsana district are members of the

Union. The Board of Directors, elected from Village Dairy Co-operative

Societies, governs the Union and the Managing Director looks after day-to-day

management of the Union.

The main plant of the union is situated at Mehsana in Gujarat, having processing

capacity of 20 lakh liters milk/day. It also has 5 chilling centers and 2 cattle feed

plants operating at various locations in Mehsana district. Union is also providing

other services such as animal health, artificial insemination, feeds and fodder etc.

to its societies. The current turnover of the union is more than Rs. 1200 crores per

annum. It has employee strength of 1600.

Dudhsagar, in its quest for excellence, wants to streamline and integrate its

processes in the areas of Finance, Sales, Purchasing and Manufacturing. To

achieve this, Dudhsagar has invited TCS to aid them in this business and IT

initiative by providing, installing and configuring Oracle Application 11i. The



proposed Oracle Apps modules for implementation are Oracle Financials, Oracle

Purchasing, Order Management, Oracle Process Manufacturing, and Oracle

Enterprise Asset Management.

HISTORY AND DEVELOPMENT

The dairy was established on 8th November 1960. The dairy has been registered under the leadership of shri. Mansihbhai Pruthviraj Patel in April 1961. He was the founder of the “DUDH SAGR DAIRY”.

Late Shri. Mansihbhai Pruthviraj Patel – (1919-1970)

A visionary step initiated 50 years ago, against all odds, with only 1125 producer members to start with, by our founder Chairman Shri. Mansinbhai Pruthviraj Patel has grown to become Asia’s largest co-operative society, an Institution that epitomizes the economic & social empowerment of about 5 LACS milk producing members.



Late Shri. Motibhai R Chaudhary – (1923-2005)

As an able Leader & Administrator, Shri. Motibhai R Chaudhary was Chairman of our Union continuously for a period of about 34 years. He has taken the Mission forward to very high peaks of achievement. His contributions for the progress of the Union, his ideas and beliefs in simple living and high values are unforgettable.

PROGRESSIVE JOURNEY OF DUDHSAGAR DAIRY

Mehsana largest milk producing district of Gujarat is famous since long for cattle breeding & animal husbandry practices. Large, small & marginal farmers & landless labourers are engaged in the practices of animal keeping & milk production. The high yielding well known “Mehsani” buffalo breed is native of the district & is known for its potential of economical milk production. The union makes use of most advanced technologies for manufacture of various milk products, for providing better animal health care services & for building socio-economic strength.

AWARDS:

The Union has been awarded National Productivity Award for two consecutive years of 2004-05 and 2005-06 for the second best productivity in the large unit’s category of Dairy Processing Industry.



HISTORICAL BACKGROUND INAUGURATION

1960 - Establishment of the MDCMPU Ltd.

1961 - Started milk supply to Ahmedabad Municipal dairy.

1963 - The MDCMPU ltd Inaugurated

1964 - Inauguration of the Vihar chilling center.

1966 - Establishment for the animal husbandry by the Union.

1967 - Innogration of the Kheralu chilling center.

1968 - Milk supply to the Delhi started.

1969 - Inauguration of the cattle feed in Boriavi.

1970 - Establishment of new processing section.

1971 - Vihar chilling center established unit with capacity 60,000L.

1972 - Loan for purchasing cows & buffaloes.

1973 - Inauguration of the Hansapur chilling center.

1974 - Hansapur chilling center has started colleting milk.

1975 - Inauguration of the Harij chilling center

1976 - Harij chilling center has started collecting milk.

1977 - Animal insurance policy has started.



1978 - Kadi chilling center has started.

1979 - Wireless radio telephone facility for animal Husbandry has provided.

1980 - Liquid nitrogen plant & artificial insemination at Jagudan has started.

1981 - Cattle feed plant at Ubkhal has started.

1982 - Government thanks Dudhsagar dairy for collecting large quantity of milk.

1983 - State awarded for high milk producing animal.

1984 - N4 powder plant has inaugurated.

1985 - Celebration of silver jubilee.

2005- Established Dudhmansagar Dairy

2009- Celebration of Golden jubilee.

BASIC INFORMATION OF THE COMPANY

NAME OF THE COMPANY:-

MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED. (DUDHSAGAR DAIRY)

ADDRESS OF THE COMPANY:- Dudhsagar dairy Mehsana District co-operative milk producers union limited. Mehsana – 384002 Gujarat state, India.

REGISTERED OFFICE:- Dudhsagar dairy Mehsana District co-operative milk producers union limited. Mehsana – 384002 Gujarat state, India.

DATE OF ESTABLISHMENT:-Dudhsagar dairy was established as on 8th November 1960.The starting date of union is 2nd April 1961.



ANNUAL SALES TURN OVER:- Rs.1750 corer (Appro.) (2008-2009)

MAIN BUSINESS:-Dudhsagar Dairy is engaged in producing and selling milk product.

RAW MATERIALS:-Milk is the main raw materials.

PLANT:-Dudhsagar Dairy is situated at Mehsana is producing market milk, Butter, Ghee,

Milk powder, and sweetened condensed milk.

CATTLE FED PLANTS:-Boriavi , Ubkhal [ Capacity 300 mt.]

ANIMAL BREEDING STATION:-Jagudan village, district mehsana

BANKERS:- The Mehsana District central co-operative bank ltd. Mehsana Bank Of Baroda, Mehsana. State Bank Of India. U.T.I. Bank, Mehsana. H.D.F.C. Bank, Mehsana.

AUDITORS:- Special auditor(MILK) Milk audit office Gujarat Mehsana

Provide maximum customer satisfaction by quality of milk product diversification.

DUDHSAGAR DAIRY has a mission to save the surplus milk and give employment to village people. DUDHSAGAR DAIRY sells their items at MRP price and their mission to provide healthy and happy life.



ORGANISATIONAL STRUCTURE

BOARD OF DIRECTORS

In present condition the chairman of the dairy is Shri. Vipulbhai M Chaudhary and the vice chairman is Shri. Harjivanbhai Devabhai Patel and other are member.

Board Of Directors

1 Shri. Vipulbhai M Chaudhary Chairman

2 Shri. Patel Harjivanbhai Devabhai Vice Chairman

3 Shri. Patel Rambhai Baldevbhai Member

4 Shri. Desai Khengarbhai Bijalbhai Member

5 Shri. Chaudhary Ramjibhai Savjibhai Member

6 Shri. Desai Ramjibhai Karamshibhai Member

7 Shri. Vihol Chandanji Ravaji Member

8 Shri. Patel Mafatlal Manganlal Member

9 Shri. Patel Prahladbhai Prabhudas Member



10

Shri. Chaudhary Becharbhai Jeshingbhai

Member

11

Shri. Nardolia Ahemadbhai Aliji Member

12

Shri. Thakor Divanji Javanji Member

13

Shri. Patel Kalabhai Dwarkadas Member

14

Smt. Shah Rajeshriben Naileshbhai Member

15

Smt. Chaudhary Vakhatben Haribhai Member

16

Smt. Chaudhary Daliben Hirabhai Member

17

Shri. Dist. Registrar Member

18

Shri. Bharat M. Vyas Member

19

Shri. K.C. VermaManaging Director



5 PART – A

PRODUCTION / OPERATION DEPARTMENT1 Introduction

2 Organization structure

3 Types of production process

4 Types of plant layout

5 Selection of location

6 Types of raw material and procurement

7 Material handling system

8 Production planning and control system

9 Repair and maintenance

10 Management of industrial safety

11 Introduction to material management

12 Role of material management

13 Purchase department

14 Inventory control

15 Quality assurance

1. INTRODUCTION

Meaning of PRODUCTION is simply that “To use material which is not in form to use but through systematically process- it converts into finish products which can be use. Production Department plays a vital role in the industry. In this department different kinds of milk products are prepared from their raw material. It is called as input output process of the product.

A production means creation of utilities and entails the procurement and utilization of factors of production which includes manpower, material, building and equipments.



“Production management deals with decision making related to production process so that the resulting goods or service is produced according to specifications in the amount and by schedule demanded and at minimum cost”

E. S. Buffa

Production must be operated in an economic and efficient manner because cost of production is vital factors in market competition and in ensuring normal profit or return on investment.

The production process at Dudhsagar Dairy is responsible for manufacturing all the products as per the specified product requirements. These include Dairy products such as pasteurized milk, milk powder, butter & ghee, SCM etc and cattle feed. The production process includes planning, production, scheduling, monitoring and management of all the production activities. It is also responsible for managing resources such as men, machinery and material, for production, reducing wastages and for cost control measures.

There are four manufacturing plants, at Mehsana, Vihar, Ubhkal and Boriavi. The Mehsana Plant manufactures all the Dairy products. The Vihar Plant manufactures Sweetened Condensed Milk. Cattle feed is manufactured at the Ubhkal and Boriavi Plants. Besides the above mentioned manufacturing facilities, there are five chilling centres at Vihar, Kadi, Kheralu, Hansapur and Harij. These chilling centres are responsible for milk collection, chilling and dispatch to dairies. The Mehsana Plant is also a milk collection centre. The objective of this document is to explain the manufacturing process at Dudhsagar dairy. The study was carried out at the Mehsana Plant, the Vihar Chilling Center & SCM Plant and the Ubhkal Cattle Feed Plant. For the milk collection activities, the process followed at the Vihar Chilling Centre has been taken as the standard. Similarly, for cattle feed manufacturing, the processes followed at the Ubhkal Cattle Feed Plant has been taken as the standard.

2. ORGANIZATION STRUCTURE


INPUTS

Material Labour Capital Energy

PRODUCTION PROCESS

OUTPUTS

ProductsServices

Information

PRODUCTION DEPARTMENT


3. TYPES OF PRODUCTION PROCESS

PRODUCTS MANUFACTURED BY DUDHSAGAR DIARY


PRODUCTION MANAGER

SENEOR OFFICER

JUNIOR OFFICER

SUPER VISOR

WORKER

ASSISTANT MANAGER


MAIN PRODUCTS

1. Milk:- ► Standardized Milk 4.50 fat/ 8.5 SNF ►Toned Milk 3.0 fat/ 8.5 SNF ►Double Toned Milk 1.5 fat/ 9.0 SNF ►Whole Milk 6.0 fat/ 9.0 SNF

2. Flavoured Milk:- ►Elaichi Flavor ►Kesar Flavor ►Rose Flavor

3. Butter:- ►Table Butter (yellow butter) ►White Butter

4. Ghee:- ►Pure Ghee

5. Powder:- ►Whole Milk Powder ►Infant Milk Powder ►Skimmed Milk Powder

6. SCM:- ►Sweetened Condensed Milk

7. Cattle Feed:- ►Sagardan ►Sagarhypro dan ►Sagar purak dan

MILK PROCESSING DEPARTMENT

MILK FLOW PROCESS


Village Milk Co-Op Soc. (Collection Center)


TYPES OF MATERIAL HANDLING EQUIPMENT

Balance Tank Pasteurizer Bottle Filling MachineN.R.VEKARIA INSTITUTE OF BUSINESS MAGAGEMENT STUDIES, JUNAGADH 30

Milk Farmers

Chilling Center

Raw Milk Reception Dock (RMRD)

Milk Processing Plant

Powder Section Butter & Ghee Section Milk Packing Section

Storage

Dispatch Federation

Distribution Channel

Consumer

Pasteurized Milk


Milk Preparation Tank Cream Separator Sour Separator Hot Water Pump Filter Vertical Balance Tank

TYPES OF PRODUCTS

Pasteurized Milk Pasteurized Cream for Butter and Ghee

PROCESS OF STERILIZED FLAVORED MILK


Standardization

Sugar addition

Pre heating

Homogenization

Heating

Chilling

Addition of color

Bottling Room

Batch Sterilization

Cooling through fans

Labeling

Wrapping

Storage


Flavored milk is recognized as beverage product containing milk to which has been added flavoring materials such as Chocolate, Fruit flavors (Strawberry, Pineapple, Apple, Banana etc) or Syrups & possibly coloring materials. The milk product is usually skimmed or partially skimmed milk with a reduced fat content. For longer shelf life here sterilized flavored milk is manufactured. SFM is marketed under the brand name of Amul cool & Sagar sfruti.



MAINLY THREE FLAVORS ARE PREPARED HERE:

○ Kesar Flavor ○ Elaichi Flavor ○ Rose Flavor

THE COLOR & FLAVOR ADDITION PERCENTAGE VARIES WITH FLAVOR

Kesar flavor

Flavor: - Kesar milk masala @0.5ml/lit Color: - Kesari powder 20.25gm/lit

Elaichi flavor Flavor: - Spice drop cardmon @0.25ml/lit Color: - Apple Green powder @0.25gm/lit

Rose flavor

Flavor: - Rose special @0.18ml/lit Color: - Erythrosine 20.022gm/lit

The specific amount of color & flavor for respective flavored milk is taken into 10 lit milk 7 mixed. Followed by filtering the mix using cloth & then adding it in the bulk tank & agitated.

BUTTER SECTION

There are two butter sections in this plant. The butter is produced by continuous butter making machines and packed semi-automatically. Butter produced is marketed in Mehsana district by “Mehsana District Co-Operative Milk Producers Union Ltd.” and


Raw Milk

Heated on 82 degree Celsius

Milk

Store on 0 degree Celsius

Dispatch

Machine through Raw Milk has been separated in two different items

Cream use in Contimab Machine

Packaging

Raw Cream

Add Anato Color and Salt

Butter will be ready


outside Mehsana district by “Gujarat Co-Operative Milk Marketing Federation. “The capacity of butter production is approximately 120 tons per day. Nowadays approximately 40 tons per day is produced. Contimab process of continuous butter making is followed in contimab machine. Butter is packed in 100 gms, 500 gms, 500 gms institutional packing, and 9.1 gm chaplets packets. The selling price of 100 gms is Rs.16, 500 gms is Rs.72, 500 gms & Rs.200 per Kg. for chaplets packing.

PRODUCTION PROCESS OF WHITE BUTTER

EXPLANATION:

First of all milk has heated on 80 to82 degree Celsius and after raw milk separated from the two different items one is milk other is cream. Cream has use in contimeb zone. Under contimeb zone cream has been separated and after butter will be ready. Then butter will go on packing department and hear butter finally packs. Then butter goes on cold storage below 4 degree Celsius.


Cream has separated on the milk

Stored 4 hours

After cream have been uses in contimb zone

Cream has been cooled down on 8 to 10 degree Celsius

Then cream has churned and adds anato color and salt

Store on 0 degree Celsius

Butter ready and packing

Dispatch


PRODUCTION PROCESS OF YELLOW BUTTER

EXPLANATION:

First of all milk has heated on 80 to82 degree Celsius and after raw milk separated from the two different items one is milk other is cream. Cream has use in contimb zone and added anato color and salt. Under contimb zone cream, anato color and salt has mixed and yellow butter will be ready. Then yellow butter will go on packing department and here butter finally packs. Then butter goes on cold storage below 4 degree Celsius.

COMPOSITION (Characteristic or Specification of Butter)

Yellow (Salted Butter):-

Fat 80% (min)Moisture 16.3% (max)Salt 2.5% (max) Curd 1% (max)Coliforms Negative



Yeast&Moulds 10 per gramTexture Close and no free moistureFlavor CleanSalt Absence of giftColor 0.3 ml/kg

White Butter:-

Fat 80-84%Moisture 16% (max)Curd 1% (max)Coliform Negative

List of Equipments

1. Continuous Butter Making Machines a. Contimab b. West falia

2. SIG Packing Machine a. 100 gm. b. 500 gm.

3. Chiplet Packing Machine

4. Carton Sealing Machines

5. Butter Analyzer

GHEE SECTION

This is a very important section of the dairy. Here ghee is made by cream butter method i.e. first cream is converted to white butter through continuous butter making machine and then butter is melted and heated to make ghee. Buttermilk and serum are again issued to process section. There is a wide variety of packaging of ghee. Ghee is sold in 1 litre, 2 litres, 5 litre tin, 15 Kg. tin, 1 litre refill pack, 500 ml and 500 gm


Receive Ghee in the tank

Milk

Packing

Process in Serum Separator

Butter is passing on hot exchanger

Ghee is stored in cold tank and ghee cold on only 35 degree

Celsius

Butter

Butter receives in butter Malting Vat on 55 degree

Celsius

Butter receives in Ghee Kettle and on 112 degree Celsius at

heating an one hour.


pouch pack. Average ghee production of this dairy is 20 ton per day in two shifts. The ghee is packed under two brand names Sagar and Amul, but the Sagar is mainly produced. Ghee is marketed under Gujarat Cooperative Marketing Federation Ltd, Anand.

PRODUCTION PROCESS OF GHEE

EXPLANATION:

Ghee is prepared by making white butter from continuous butter making machine. Cream after ageing of 4 hours is taken for butter making and white butter is made on BUC-1500 Westfalia Separator Machine. This white butter is worked in machine and an another worker and then passed through a Spiral flow Heat Exchanger for melting via a pump. The melted butter is stored in an elevated tank. Serum is separated from butter by a serum separator and separated melted butter is taken in a butter-melting vat. Melted butter is pumped to ghee kettle via a pump. In ghee kettle this melted butter is heated at 108-110 c for two hours or till the end point of ghee is obtained. The ghee kettle is a simple jacketed kettle in which heating is done by steam at a pressure 2-3 kg/cm. The butter is held in this kettle for another two hours for settling.



Then ghee is pumped to the storage tank via clarifiers. The ghee is then packed in different packages via the packaging lines provided for different types of packaging. There should not be any clash between lines, so this is a critical points in ghee packaging. The sample is tested from two tanks i.e. two storage together constitute a single batch of ghee. Tins are seamed by a seamer and then packed in cardboard boxes. Packaging of ghee takes place at 36-45 C. There are heaters on the packing pipelines of ghee for keeping ghee hot while packing. The balance tanks of ghee packing are pneumatically controlled and filling is gravimetric.

LIST OF EQUIPMENTS

CBM : 1 Serum Separator : 5 Settling Tanks : 4 Butter Melting Vats : 3 Ghee Kettles : 11 Ghee Storage Tanks : 10 Ghee Clarifiers : 2 Electric Embossing Machine : 1 Packaging Machine

½ kg pouch filling : 2 Rollatainer refill pack : 1 Rollatainer tin pack (1 lit) : 2 Mether Platt ghee tin pack (5lit) : 1 15 kg tin packing machine : 1

SPECIFICATION

Continuous Butter Making Machine:-

Type : BUC-1500 Capacity : 1300-2100 kg/hr Use : Pasteurized white butter manufacturing for ghee making.

Ghee Kettle:-

Capacity : 1000 kg (9), 500 kg (2)Working pressure : 3 kg/cmTested pressure : 6 kg/cmWorking Temperature : 108-110 C1 Batch Time : 2 hrs Settling Time : 2 hrs

Ghee Storage Tanks:-



Type : Alfa LevelCapacity : 2700 kg/tank

Pouch Filling Machine:-

Type : Nichrome Fill packSpeed : 10-24 pouch/minuteFilling Temperature : 36-45 CPouch Thickness : 80 Micron (min)Air Pressure : 5.5-6.0 kg/cmEmpty Pouch Weight : 4-5 gmSealed Wear Temperature : 5-7 C

Ghee Tin Packing Machine:-

Type : Mather platSpeed : 3-5 tins/minuteFilling Temperature : 36-45 CWeight : 5 + - 0.010

Ghee Tin Packing Machine:-

Type : Rollatainer

Parameter : 1 kg : 2 kgSpeed : 8-13 Tin/min : 7-10 Tin/minAir pressure : 3.5-6 kg/cm : 3.5-6.0 kg/cmGhee Temperature : 36-45 C : 36-45 CGhee Weight : 1 + 0.005 kg : 2 + 0.005 kg

POWDER SECTION

Powder is the best way of preserving milk solids. The main objective in processing it is to achieve good storing stability, low production costs & a product that resembles as much as possible the original after reconstituting. The production of concentrated & dried milks has the advantage of processing & storing all market surpluses especially fluid milks, as well as at by products. Due to the preserving effect of low water activity, dry milk products are desirable in regions with unfavorable climate conditions. Even infant formula is designed as a substitute for human milk when mother can not best feed their babies. Powder section has a paramount importance in itself, a large proportion of milks are diverts to this section for manufacturing different types of powder.


Pasteurized chilled Milk

Concentrated milk tank

Spray drying

Milk evaporating plant high heating

Vipro Fluidizer Filter air 20-30 degree Celsius

Packing

Filling bags / powder silo

Storage

Dispatch


PRODUCTION PROCESS OF POWDER

In Dudhsagar, four powder plants are manufacturing powder. The types of powder manufactured are Whole milk powder (for army), Skim milk powder, Baby food, and Dairy whitener. All plants are having two stages drying; two plants are manually operated while two are automated. The brand names of powder are Amul for whole milk powder, Amul spray for baby food, Amulya for dairy whitener and Sagar for skim milk powder.

Skimmed Milk Powder - Amul / Sagar / Dudhsagar SMP



Infant Milk Powder – Amulspray

Dairy Whitener-Amulya

Whole Milk Powder - Amul WMP



NO. PRODUCT BRAND NAME TYPES OF PACKING

1. SMP Sagar SMP 25 kg Bulk pkg. 500 gm pouch

2. IMP Amulspray 200 gm pouch 200 gm refill 500 gm refill 500 gm tin 500 gm pouch 1 kg tin

1 kg refill1 kg pouch

10 kg tin

3. SWMP Amulya 200 gm refill1 kg refill 1 kg pouch

500 gm pouch 500 gm tin

1 kg tin 10 kg tin

4. WMP Amul 10 kg tin

CATTLE FEED MANUFACTURING PROCESS



Cattle Feed (Sagar Dan) is manufactured at the Ubhkal and Boriavi Cattle Feed Plants. The manufacturing process at both the cattle feed plants are the same. The study was carried out at the Ubhkal cattle feed plant.

CATTLE FEED

Sagar Dan is the primary product being produced at the Cattle Feed Plant.As per Animal Husbandry Department requirements, de-worming doses are manufactured twice in a year. The medicated pellets are packed in 400 gm plastic packets.Other than Sagar Dan, the following cattle feed are also manufactured at the Boriavi Plant – Purak Dan, Rahat Dan, Calf Starter and Pashu Poshak.The average shelf life of Sagar dan is about 6 months.Generally production and dispatch of the production takes place on a day to day basis.The formula for Sagar dan keeps on changing from month to month. It may also vary within a month. This is because of the variations in the nutritional values/prices of the raw materials from season to season.Production Planning for cattle feed is carried out on the basis of the sales orders placed for each of the products, the capacity of the plant, the availability of the plant and the storage capacity of the finished product store. Production in-charge considers the storage capacity of the finished products and readiness of the plant during the planning process. Impact of material non-availability (major ingredients and alternate ingredients) is also considered during production planning. Other parameters considered for planning include requirement of raw materials, buffer stock, stock information, etc.SAGAR HY PRO DAN is the best product for animals which is introduced by dairy in April 2009.

PRODUCTION PROCESS OF SAGAR HY PRO DAN




Grain Storage Silos Separate Storage Good down for each Raw

material

Storage Bins

Batch Hopper

Batch Mixer

Hammer Mills

Pellet Mill Bins

Molasses Mixer Molasses Tank

Pellet Mills

Stream

Cooler

Shieve

FG Storage Bins

Weighing and Packing

Finish Goods Store

Dispatch

MOLASSES


INGREDIENTS OF SAGAR HY PRO DAN:

(1) Grains: Jowar Maize Millet Barley(2) Rice Polish Fine Grade Two(3) De-oiled Rice Bran(4) Mustard Rape Seed Extraction(5) Cotton Seed Extraction(6) Guwar Meal(7) Molasses(8) Vitamins(9) Minerals(10) Salt(11) Ani Feed(12) Urea(13) Calcite Powder(14) Protein



4. TYPES OF PLANT LAYOUT

“A good layout is one which allows material rapidly and directly

for processing this reduces transport, handling, clerical and cost down per

unit. Space requirement are minimized and it reduces ideal machine and

ideal man time” - F.G.MOORE

"Plant layout means physical arrangement or machines equipment's and other

industrial facilities on the factory floor in such manner that they may be handle

efficiently."

In “MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED.” unit

is located at Mehsana has very well arranged plant layout. In this plant layout all

departments’ machines and equipment are well arranged.

According to F.G. Moore, A good lay out is one which allows materials rapidly and

directly for processing.

1. Economical use of production, storage and service space.

2. Reduction in material handling cost and the amount of work in process due to

minimum different process.

3. Efficient utilization of machinery and labour by avoiding delay and bottlenecks.

4. Effective planning supervision and control of manufacturing operations.

5. High safety and improve work condition for worker.

6. Larger Capital Investment in plant equipment tooling and other physical facilities.

Plant layout is also the physical arrangement or appearance of the plant. If the plant

layout is well arranged according to convenient of organization it will be beneficial by

many ways.

There are 4 broad categories of plant layout.



1) Product layout

2) Fixed position layout

3) Group layout

4) Process layout

1) Product Layout (or) Line Layout :

In product layout machines and equipment or arrange in the sequence of the manufacturing operations require for the product. The materials move form one workstation to another workstation sequentially (in order wise) without any backtracking or Deviation of materials. It is called line layout because machines are arranged in strait line. The raw materials are fed at one land and taken out as finished product on the other land. It is a grouping of machines in one sequence a product lay one may be a straight-line shape or (circular) [U] shape. The layout can be presented as order.

Advantages

Low cost of material handling due to strait and shorter part and animating Smooth and uninterested operation free from optical Continuous flow of work Special purpose equipment can be operated by semi skilled labour Optimum use of floor Shorter processing time and quicker output simple and effecting work High initial capital investment in special purpose machine Heavy overhead charges and less flexibility of operation Suitability of product

2) Fixed Position Lay Out :

In this type of lay out the major product been product fixed and a particular locating equipment labour and components are moved to that particular location. This layout is applied when materials been process are large very heavy have and difficult to move ship builds locomotive manufacturing wagon manufacturing and Altar manufacturing are the products where this layout is apply.

3) Group Lay-out (or) Combined Layout :

In most industrial establishment plants are rarely laid out. It either pure from and a combination of product or process layout is apply. It is possible to have both types of layout in an efficiently combined from if the product manufactured on same what similar and not complex. This layout is combination of both product and process lay-out.

4) Process lay-out (or) Functional Lay Out :



In this type of lay-out machines of similar type on located together according to their function products move between the machinery equipment in order of the operations require.

Advantages

Lower initial capital investment in machinery Overhead cost is low Change in product design and volume Supervision can be more effective and specialize Greater flexibility more time taken in production more skilled worker required production planning and control difficulty

Factor influencing to plant layout

(1) Location of plant(2) Nature of product(3) Availability of floor spare(4) Types of industry(5) Nature of manufacturing(6) Types of production(7) Policies of management

From the above stated four types of plant layout, DUDHSAGAR DAIRY uses product layout system.

MANUFACTURING SYSTEM AND LAYOUT

LAYOUT PRODUCT MFG. SYSTEM

P

R

O

D

U

C

T

L

A

Y

O

Y

T

Ghee Continuous

Flavoured Milk Batch

Milk Powder Continuous

Amul Spray Powder Continuous

Butter Continuous

Butter Milk Batch

Milk Batch

Sagar Sfurti Batch

Formerly, DUDHSAGAR had the old machines were performing the production operation. This was taking too much time. Therefore DUDHSAGAR adopted



modernization and set up a totally automatic plant. As a result it has developed a new plant layout at DUDHSAGAR to adjust the automatic equipment and machineries.

5. PLANT LOCATION

Site selection is an important activity, which decides the fate of the business. A good location may reduce the cost of production and distribution to the considerable extent.

“It is an ideal location where all types of cost of business activities are minimum.”

- John ShubinMeaning:

Location is a geographical place or area were plant factory, company, unit firm or industry is situated or established or located or setup or started or commence or existed.

Factors determining the location of industry there are two types of factor that determine the location.

A) Primary Factor (Or) Economic Factored in That :1) Availability of raw materials.2) Availability of transportation and communication facilities.3) Availability of labour Skill skill or skill.4) Nearest to market5) Power, Fuel, Water supply.

B) Secondary and Non Economic Factor :1) Climatic Condition2) Availability of financial facilities3) Personal factors4) Assistance from the govt.5) Scope for expansion6) Industrial atmosphere7) Existence of ancillary (supported) industries8) Availability of facilities to employees

Aspects of Location Planning (Process) :At the time selection of industry the following point should be consider.

1) Selection of Region that Include :1) Availability of raw material2) Nearest to market3) Nearest to the sources of motive power4) Availability of transportation facility5) Suitability of climate



2) Selection of the Locality :1) Supply of Labour2) Existence of complimentary and competitive industry3) Banking and research facilities4) Local taxes

3) Selection of Exact Site :1) Availability of cheap land to start factory.2) Cost of land development L - the land should be flat and strong enough to

sustain heavy machine installation.3) Repair facility4) Housing facility5) Social and De-creation (entertainment Tool) facilities6) Post and telegram facilities7) Cost of water supply drainage and disposal of west.8) Any restriction imposes by town planning dept. or local by - laws9) Tax, fire fighting police protection facility

The “MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED.” has select the location as -

Dudhsagar dairyMehsana District co-operative milk producers union limited.Mehsana – 384002Gujarat state,India.

6. TYPES OF RAW MATERIAL AND PROCUREMENT

Purchasing to a manufacturing concern is of extreme importance because it has its bearing on every vital factor concerning the manufacture, i.e. quantity, quality, cost efficiency, economy, prompt delivery, volume of production etc. It is the scientific purchasing that can save much money, time and efforts of the management.

The task of purchasing is related to going to open marketing, finding the desired materials at the lowest possible price and selecting the supplier who offers it at that price having the quality of the materials in mind. It is indeed, a specialist activity calling for the commercial rather than the technical training and outlook

In case of Dudhsagar dairy the main product of raw-material is milk & milk get lowest price from near villages. So, transportation & other raw-material handling cost is lower.

7. MATERIAL HANDLING SYSTEMN.R.VEKARIA INSTITUTE OF BUSINESS MAGAGEMENT STUDIES, JUNAGADH 50


In highly materialized countries, we have to automated material handling has been practically eliminated. New concept of packaging, containerization and polletisation has contributed to cost reduction appreciably. Containerization is the packing and transporting of goods in standard sized containers. These containers are unopened during entire transport from the forwarding point to the destination point. Material handling and packaging services have also speeded up the order processing and movement or consignment.

Comprehensive Material Handling Programme

Type of the productPlant layout Type of production systemFactory buildingProduction planning and controlPackaging Material handling equipment

Advantages of Material Handling

Minimize movement of material, moves them continuously and at maximum rate which advantageous as under:

Shorter operating cycle Reduction handling cost

It eliminates unproductive handling of materials like back tracking, re-handling

It reduce ideal machine capacity It reduce the ideal time of labour It eliminates the factory hazards and thus increase the safety of the

operator Reduce operation cost Better qualitative product Timely production It helps in maintaining effective production control



In DUDHSAGAR DAIRY there are following types of material handling equipments-

Milk TankersTemposCaratesCansTrolleyGravity RollerPortable BeltPedestrian-Led-Powered Truck.

8. PRODUCTION PLANNING AND CONTROL SYSTEM

“The act of packing and supervision of the search, screening, development and commercial is a action of new products the modification of existing lines and the discontinuance of marginal or unprofitable item.”

American Marketing Association

Production Planning and control are 2 important aspect of production. Production planning is prerequisite of production control. Production control cannot be imaged without production planning.

Production planning is the function of management to look ahead, anticipate difficulties and take steps to remove obstacles before they are materialized. Where n unit is constantly evaluated and compare with the standards set in advance.

Product planning has assumed front rank importance in the modern market oriented business. In addition product planning invites an intelligent, appropriate and scientific approach. The case history of the successful companies has proved that product planning calls for the highest degree of top management ability and effort.

"PPC refers to the co-ordination of a series of functions according to plan facilities and regulate the orderly movement of goods through their manufacturing cycle from the procurement of all materials to the shipping of finished goods at a predetermined rate."

Charles A. Keopke



9. REPAIRS AND MAINTENANCE

Repairs & maintenance is carried out to have the optimal use of capital equipments through actions such as replacement, repair, service & modification of the components or machinery so that this will continue to operate as long as it is beneficial to do so.

The efficiency of the production function solely depends on the functional reliability of the production facilities which are nothing but a package of land, building, plant, and equipment, tools, and plant service such as material handling, power plant gas and streamlines, water supply, fire fighting facilities etc. all the facilities are subject to wear and tear either simply by elapse of time frequency of their use. For the maintenance of the functional reliability of all this facilities, plant maintenance is considered as an important service function of modern production management.

Objectives of Repairs & Maintenance

o To obtain maximum capacity of plant by avoiding breakdown.

o To keep the machines in proper condition so as to maintain the quality of Product

o By minimizing the wear & tear pressure, the plant value is increased.

o To ensure the safety of workers.

o To keep the plant at the maximum efficient levels.

o To achieve all the productive objectives at an economical level

10. MATERIAL MANAGEMENT

INTRODUCTION

All types of organization whether manufacturing, trading or even net profits are continuously involved in procurement, storage and stock replacement of different types of material. At different point of time many of the items are bought stored and stocked either for immediate or future use.

Purchasing to a manufacturing concern is of extreme importance because it has its bearing on every vital factor concerning the manufacture, i.e. quantity, quality, cost efficiency, economy, prompt delivery, volume of production etc. It is the scientific purchasing that can save much money, time and efforts of the management.



The task of purchasing is related to going to open marketing, finding the desired materials at the lowest possible price and selecting the supplier who offers it at that price having the quality of the materials in mind. It is indeed, a specialist activity calling for the commercial rather than the technical training and outlook.

The function of buying or stocking is a result or decision making process which may be simple or complex initiative or analytical, hasty, or deliberated.

Inventory includes all the activities related to raw material management, finished goods management, reprocess and scrap management, dispatching the finished goods, sales reject and return management and stock management. Activities include storage, management and issue of goods or material.

Store Structure

Stores are located at Mehsana Plant, Chilling Centre (CC) and Cattle Feed Plant (CFP).There are five types of stores:

1. General Store2. Finished Product Store3. Ghee Store4. Society Store5. Veterinary Store6. Milko tester Store

A) MEHSANA PLANT

Mehsana plant has five stores. General Store and Finish Product Stores are main store and Society Store, Veterinary Store and Milko Tester stores are sub store. General Store also receives material for three sub-stores and material is delivered directly at the sub stores. Functional overview of each store is detailed as under:

1. General Store

General store maintains inventory of:

Packaging MaterialEngineering MaterialRaw MaterialConsumableLab MaterialPower and Fuel

Material is issued to internal section of the Mehsana Plant and also some time to Chlling Centre Store.



2. Finish Goods Store

Finished goods store at Mehsana handles all the milk products except Pouch Milk, Flavored Milk and Chass. The physical storage for the finished goods (White butter,Table Butter) is maintained in seven cold storage godowns. There are also other godowns used for storing SCM, Ghee, WMP, SMP etc. Depending on the need, external agency cold stores are used on hire basis.

3. Society Store

Material in Society Store is received through the main store. Society Store maintains approximately 86 items used by about 1200 co-operative societies. Society store sales these items to co-operative societies. Society store items include Visit books for doctors, Milko tester parts, Order Books etc. for the co-operative societies.

4. Veterinary Store

Medicines and medical instruments are received in the Veterinary Store through the General Store. Veterinary Store at Mehsana is main store responsible for purchasing and distributing the material to veterinary sub stores under Dudhsagar dairy. Doctors registered under Mehsana sub store and Co-operative Societies under Mehsana District takes medicines from Mehsana Veterinary Store. There are total 85 doctors registered under Dudhsagar Dairy.

5. Milko Tester Store

Milko tester machine is used by Co-operative Societies to measure FAT content of milk. These machines are sold and maintained by Dudhsagar Dairy as and when requested by the Co-Operative Societies. Maintenance of machine is carried out at Milko tester workshop. To carry out maintenance, Milko Tester store maintains inventory of 500+ Milko Tester spare parts. There are Milko Tester workshops at each chilling centre. Cooperative societies go to nearest workshop for Milko Tester repair. If repair is not possible at any Chilling centre workshop, it is brought to Mehsana workshop for repair.

B) CHILLING CENTRE (CC)

Following three stores are at the Chilling centers:1. General Store2. Veterinary Store



3. Society Store

General Store issues material to various sections in the chilling center, where as society and veterinary stores issues material to the co-operative societies under the chilling centre. General Store and Veterinary store receive material directly from the vendors but society store receives material from Mehsana Society store.

C) CATTLE FEED PLANT (CFP)

The Stores operation at Cattle Feed Plant is divided into two sections. One section is responsible for the Engineering Items and the other section is responsible for the Cattle Feed Raw Materials.

Stores Engineering

The Engineering Store maintains inventory of:Packing MaterialRepair and Maintenance MaterialLaboratory ItemPower and FuelConsumables

Raw Material Store

The Cattle Feed Plant production store basically maintains the raw materials required for the Cattle Feed Production and the Finish Goods. There are different varieties of raw materials used in cattle feed production, which includes Jowar, Rapseed, Grains, Oil Seeds, Rice Bran, etc. Along with the raw materials this store also handles Finish Goods (Cattle feed), Cromy Dan (De-worming Material Pouches), Mineral Mixture, Empty Gunny Bags etc.

11. PURCHASE DEPARTMENT

The main objective of purchase dept is to ensure availability of right kind & quality of materials, services as per indents of user dept at competitive prices in time. Dudhsagar Dairy has a centralized Purchase dept at Mehsana which caters to the needs of various dept, chilling centers & cattle feed plants.

Shri S.Palit, Sr. Manager (Purchase) is in-charge of Purchase department. The dept. is functioning through the set defined rules and regulations of the society. The procurement of cattle feed, engineering goods, raw materials and packing materials and other general goods are being handled from this department. The raw milk procurement is being handled by Co-operative Service dept. under MPO department. in-charge. The



purchase dept. negotiates the rates with the supplier, but some times the user dept. also negotiates especially for the engineering goods. Purchase dept. makes sure for the timely payment to the supplier as per the terms and conditions decided at the time of PO. Before making the payment pre-audit inspection is being worked out by the Internal Audit department. The following number of activities which are performed by Purchase department of Dudhsagar dairy.

General purchase which includes purchase of Packaging materials, Sugar, Furnace oil, Lignite, Chemicals & Cement, stationary & printing items, Human medicines, etc.

Raw material purchase cattle feed plant, Engineering item purchase, Capital items purchase, Computer equipment purchase, Other miscellaneous items, Petty case purchase, Annual rate contracts, Contracts----- Transport contract,

Labor contract Maintenance contract

FUNCTIONS

Select suppliers on base of their ability, for purchase goods. Obtain raw material at the most competitive prices from the market. Attend to complaints of user department.

IDENTIFICATION OF SUPPLIER

Suppliers are selected on the basis of their ability to meet the specified requirements of Dudhsagar Dairy. These suppliers communicate directly with Dudhsagar Dairy. New suppliers send an introductory letter along with the data on firm (supplier facility) to Dudhsagar Dairy. The data on firm contains information relating to supplier’s factory, machinery used, production and turnover. If found necessary, they are called for a discussion or a person from Dudhsagar Dairy may visit the supplier to verify the areas mentioned in the data provided on the firm. Based on satisfactory evaluation and commercial offer, the supplier is asked to supply the samples. On satisfactory compliance of the sample, the supplier is approved for regular supplies and is included in approved list of suppliers.

THE PURCHASE ACTIVITY 1. Engineering Purchase2. Cattle Feed Purchase3. General Purchase

1) ENGINEERING PURCHASE



This section purchases all electrical & mechanical items.

ACTIVITIES

Get requisition letter from concerned department. Create purchase inquiry and request for quotation. Receive quotation. (in 7 to 8 days) Open quotation. (On week days Monday – Wednesday – Friday) Preparative comparative statement (within 2 days) Give comparative statement for approval to user department. Comparative statement approval by Asst. Mgr. (Purchase Department) General purchase order in system. At the end dispatch it to selected parties.

2) CATTLE FEED PURCHASE

This section purchase cattle feed ingredients. The items are as follow; Juwar Maize Damage Wheat Rice Bran Ext. Sun Flower Ext. Mango Extract

3) GENERAL PURCHASE

In this department buy common items which are mostly used by all departments like Sugar, Stationary, Packing material etc. Items are classified as follow:

1. Purchase of Packaging Materials2. Purchase of Scheduling Items3. Purchase of Sugar4. Purchase of Furnace Oil5. Purchase of Lignite6. Purchase of Lab Chemicals and Cleaning Agents7. Purchase of Chemicals and Glassware8. Purchase of Caustic Soda9. Purchase of Cement and Construction Material10. Stationery Purchase11. Purchase of Human Medicines13. Purchase of Society Material14. Purchase of Veterinary Medicines through GCMMF15. Direct Purchase of Veterinary Medicines by Dudhsagar Dairy16. Purchase of Kerosene

12. INVENTORY CONTROL



“Inventory is defined as a usable resource which is physical and tangible such as materials. “

Inventory constitutes the largest component of current assets in many organizations. For management of inventories therefore may result in business failure. A stock-out creates an unpleasant situation for organizations.

ABC :-

ABC Analysis is the basic analytical management tool, which enables top management to place the efforts, where the results will be greatest. This technique popularly known as “always better control” has universal application in many areas of human endeavor. The technique tries to analyze the distribution or any characteristic by money value of importance in order to determine priority. In this method 20/80 ratio use and it is very useful concept in business where it can be used to solve some production control, quality control, inventory control and similar other management problems. So the golden rule is to keep an eye on this 20% and you will cover 80% of the effect.

EOQ :-

Economic ordering quantity deals with two basic issues

1) When to order and2) How much to order

The problem of when to order is decided by prescribing the reorder level of each of the inventory item. The other incidental issue is how much order i.e. what should be the size of each order. The issue of how much to order is decided on the basic of “economic ordering quantity

The other side of the scene is the inventory carrying cost when inventories are stored, it involves following types of cost.

Invest cost Cost of storage space Cost of insurance and tax

EOQ formula:-



Where:-

R = Annual requirement (unit)D = ordering cost per order.C = cost per unit.S = storing cost as percentage of value of materials store.

3) Re order level4) Value Analysis

In DUDHDSAGAR DAIRY use perishable product milk. It is collected from near villages, so it is collected everyday.

13. QUALITY ASSURANCE

In a competition age, every manufacturer would like to maintain the quality of his products so that it may be liked by the users in preference to products of his competitors. Reputation for uniformity & dependability of the quality of a product is one of the most important assets which a manufacturing concern should try to acquire or not to lose if already acquired.

There is an old saying that,

“One is reminded of quality long after price is forgotten.”

The DUDHSAGAR DAIRYgets the three certificates as follows-

For Quality : ISO 9001For Safety : HACCP 9000For Environment : ISO 1401



6 PART – BMARKETING DEPARTMENT

1 Introduction


3 Product

3.1 Product mix

3.2 Product life cycle

3.3 New product development

3.4 Branding and packaging

4 Promotion mix



4.1 Advertising

4.2 Sales promotion

5 Channel management

1. INTRODUCTION The marketing is very broad concepts for the business. We can distinguish between social and a Managerial definition of Marketing. Asocial definition saw the role Marketing plays in society. One market said that Marketing’s role is to “Deliver a higher standard of living.” Here is a social definition that serves our purpose Marketing is a societal process by which individuals and group obtain of what they need and want through creating, offering and freely exchanging products and services value with others. For Managerial definition, Marketing has often being described as “the art of selling products”.

Marketing deals with identifying and meeting human and social needs. One of the shortest definition or marketing is “Meeting needs profitably”. Marketing is a process by which individuals and groups obtain what they need and want by creating and exchanging and values with others.

“A market may be considered as a convenience meeting place where buyers and sellers gather together for exchange of goods and services”.

Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and businesses. Marketing people are involved in marketing 10types of entities:

1. Services2. Experiences3. Events4. Persons5. Places6. Properties7. Organizations8. Information9. Ideas

Marketing has often been described as “The Art of Selling Products”



Essentials of Marketing

Focus on brand name Effective Differentiation Effective public relations Price differentiation Strong distribution network

Marketing is the vast term. It includes most of departments like H.R.M., Finance, and Production, Purchase departments.

DEFINITION:

“Marketing is a social and managerial process by which individuals and groups obtain what they need and want by way of exchanging things for mutual benefits”.

PURPOSE & SCOPE

To supply milk & milk products To review customer requirement, resolving any requirements differing from established norms.To meet customer requirement.

RESPONSIBILITY & AUTHORITY

Sales coordination of liquid milk, Chas & flavored milk within Mehsana milk shed area.Sales coordination of milk products to various GCMMF depots & their bulk parties Sales coordination of milk products to Defense Liasioning with Government & legal agencies as & when required Liasioning with National Co-operative Dairy Federation of India Ltd (NCDFI), GCMMF Ltd.Complaints redressal.

ACTIVITIES

Milk, chhash, flavoured milk sales:

The liquid milk is sold in pouches, in cans & tankers. The pouch milk will be supplied as per the requirement of milk distributing agents. The loose milk in tankers will be supplied to Mother Dairy, Gandhinagar, other member union other parties & to individual customer as per their requirement. Mother dairy 7 other member unions are lifting milk as per the monthly milk dispatch program decided



in GCMMF, Anand. Chhash is also sold in pouches & in cans. Flavoured milk is sold in bottles as per the requirements of GCMMF, milk distributors &approved parties.

The appointment of milk distributing agent:

The sales process of dudhsagar dairy invites applications from the parties of potential areas, who are interested in selling milk, chhash, flavoured milk. The area may be fixed while appointing the milk-distributing agent, whenever required.

In case of an individual customer, milk, chhash, chilled water is given in union's cans vessel against cash payment basis.

Product sales within district including village co-operative societies:

The demand for ghee, chhash, chilled water etc, within the district is being met by selling the products to the individual customer or institutional customers. The sale may be done against cash payment or cheque or DD or credit sales depending upon the party.

Export orders:

The export dept of GCMMDF Ltd. Anand sends the copy of export order for the various products to the managing director, production process, QA process, purchase process & sales process. On the receipt of the same, the order details are examined. Production planning is done as it done as it is mentioned in production process. The dispatch of different products is made by dairy against GCMMF Ltd's Dispatch instruction letter, to its various depots.

Whenever there is demand for products, which is specific & special requirement from customers, it is received by sales process. Sales process in turn reviews the requirements with top management & concerned personal. Detail of the reviving and meeting customers requirement are explained in customer satisfaction sub process.

General house keeping:

Housekeeping is maintained at sales process as per the work instruction of general housekeeping.



GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION

Gujarat Co-operative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is state level apex bodies of milk co-operative in Gujarat which aim to provide remunerative returns to the farmers & also serve the interest of consumers by providing quality products which are good value for money.

SABAR AMUL BANAS

VASUDHARA DUDHSAGAR MADHUR

UTTAM UTTAM

SURSAGAR BRODA

PANCHRMRUT DUDHDHARA SUMUL GOPAL

In all thirteen dairies the marketing is done by Gujarat Co-operative Milk Marketing Federation with brand name of “AMUL”.


“GCMMF” Brand name

“AMUL” & SAGAR”


2. ORGANIZATION STRUCTURE

3. PRODUCT

3.1 PRODUCT MIX


MARKETING DEPARTMENT

OTHERS

GENERAL MANAGER

SALES MANAGER

SENIOR MANAGER

JUNIOR MANAGER


Product mix is the set of marketing tools that firm uses to pursue its marketing objectives in the target market. It consists of everything the firm can to influence the demand for its product. The many possibilities can be collected into 4 groups of variable known as the four Ps:ProductPricePlacePromotion

Product mix which is also called as product assortment is the set of all product and items that a particular seller offers for sale. A company’s product mix has certain width, length, depth and consistency.

PRODUCT

Marketing is a comprehensive term and it includes all resources and a set of activities necessary to direct and facilities the flow of goods and services from producers to customers in process of the distribution. Business regards marketing as a management function to plant promote and delivered product to the clients or customers.

PRODUCT PLANNING

Product is a key element in the market offering. Marketing-mix planning begins with formulating an offering to meet target customers need and wants. The customer will judge the offering by three basic elements.

Product featureService mix and qualityPrice

A product is anything that can be offered to satisfy a want or need. Products that are marketed include physical goods, services, experience, events, persons, places, properties, organization, information and ideas.

In planning its market offering, the marketer needs to think through five level of the product. Each level adds more customer value and the five constitute a customer value hierarchy. The most fundamental level is the core benefit; the fundamental services or benefits that the customer is really buying. A patient is buying cure for his disease not medicines.

PRODUCT CLASSIFICATION

Marketers have traditionally classified products on the basis of characteristic.

DurabilityTangibilityUse (Customer or Industrial)



PRICE

“Price is the only element in the marketing mix that creates sales revenue; the other elements are costs.”

- Philip Kotler

It is the value, usually in monetary terms that sellers ask in-exchange for the products they are offering.

The prices of products of DUDHSAGAR are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of DUDHSAGAR products. However, the price is inclusive of several elements like:

Cost of Milk Raw Material Cost Labour Cost Processing Cost Packaging Cost Advertising Cost Transportation Cost Sales Promotion Cost Taxes etc.

The GCMMF considers all these cost aspects and set them up in pricing structure to decide the jelling price of milk and milk products.

DUDHSAGAR decides prices for the product Milk, Butter Milk and Curd. For that they mainly focus on commission of retailers.

PLACE

DUDHSAGAR dairy is classified into large scale industry. Dairy is producing its various products like milk, ghee, butter and milk powder etc. it is very necessary to have strong distribution channel. The DUDHSAGAR dairy has its own sales office which is organized by DUDHSAGAR dairy him self and Gujarat state milk marketing federation company distributes 70% products through GCMMF and 20% through local marketing and remaining 10% to the Army.


Local Sales

DUDHSAGAR DAIRY

Army Sales

G.C.M.M.F Sales


1) LOCAL SALES

It is the sales made in the boundaries of Mehsana milk shed area consisting of Mehsana, part of Gandhinagar and part of Patan Districts. The products mainly sold are Sager Milk, Sager Ghee, Sager Butter Milk, Amul Butter and Amul Milk Powder. This local sale is done through distributors.

On special occasions like marriage, party big orders are taken directly from party. Average milk sold locally is 7500 liters, per day.

2) GCMMF SALES

The sale of organization is mostly made by Gujarat Co-operative Milk Marketing Federation (GCMMF).

3) ARMY SALES

It is very special selling to Army. There is no intermediate between two. Only Butter, Sweetened Condensed Milk and Skimmed Milk Powder sold to army. From this, Powder is negotiated by federation and Sweetened condensed Milk by Dairy.

Powder is supplied by main three centers

a) Mehsana District Co-operative Producers Union Ltd.

b) Amul Dairy

c) Saber Dairy (Sabarkantha)

Whole milk powder is given to Army’s supply depot as per their demand. There total 47 Army supply depot in India. Skimmed milk powder is gives to Army’s Military farm.


Retailer

Wholesaler

Customer

ALL INDIA


3.2 PRODUCT LIFE CYCLE

Product Life Cycle is an important concept that applies product Items. A company has to change differentiating & positioning strategy with changes in the product, market, economic condition & competitors over time.

The Product concept comes from the fact that a product sales volume & amount of profit. Profit rise & fall at different stages of the product life cycle. Products required different marketing, Financial, Manufacturing, Purchasing & Human resource strategies in each of their life cycle.

Product Life Cycle has commonly four stages

IntroductionA period of slow growth as the product is introduced in the marker. Here heavy expenses incurred with product introduction.

GrowthA growth is a period of rapid market acceptance and profit improvement.

MaturityA maturity is a period of slowdown in sales growth and profit stabilized of decline because of increase competition.

DeclineA decline is a period when sales show a down ward profits.



3.3 NEW PRODUCT DEVELOPMENT

Company’s that fail to develop new products are putting themselves at great risk. Their existing products are vulnerable to changing customer needs & tastes, new technologies, shortened product life cycles & increased domestic & foreign competition. New technologies are especially threatening. Market established company’s focus on incremental innovation. Newer companies create disruptive technologies that are cheaper & more likely to alter the competitive space.

New product development process includes the following steps.


Idea generation

Product development

Marketing strategy development

Concept development and testing

Idea screening

Business analysis


1) Idea Generation:-

The generation of new product idea contains the sources of all ideas relating to the new product. Whether they can be from employees, R & D, marketing experts, public, government etc..

2) Screening of Idea :-

The idea will be scrutinized after its collection. All the ideas collected may not be acceptable. Ideas with product policies & objectives of the film may be dropped out lightly.

3) Concept Development & Testing :-

All the ideas that survive the process of screening will be studied in details. They will be developed into mature product concepts. Concept testing helps the company to choose the best among the alternative product concepts. A product idea can be turned into several product concepts.

1) Who will use the product?2) What primary benefits should this product provides?3) When will people consume this product?

4) Marketing Strategy development :-

The manager, at this stage should develop the marketing strategies.

5) Business Analysis :-

Under this stage, selected ideas are studied in detail manner, determining is desirable market feasibility & features of the product.

6) Product Development & Programme :-

The product must be developed by,


Market testing

Commercialization


a) Developing modelsb) Consumer reference testingc) Brandd) Packaging

7) Market Testing :-

The segment will be selected to test the product & its sustainability will be decided from its performance.

8) Commercialization :-

If the product proved successfully in testing, a decision to produce it on commercial basis may be taken & it will be launched fully into the market.

3.4 BRANDING & PACKAGING

BRANDING“A name, term, sign, symbol or design or a combination of them intends to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”. Thus brand identifies the sellers or makers.

The American Marketing Association

There are mainly two names are use for the product and that are AMUL and SAGAR. These are two brand names which are mainly use for the product.

PACKAGING

Milk:-Pouch milk – 500 ml

Ghee:-Pouch packing – 500 mlRefill packing – 1 litterTin packing – 1 litter, 2 litter, 5 litter, 15 kg

White butter:-Only 15 kg cartoon packing

Yellow butter:-Packing brand name “Amul Pasteurized butter”Packing on 500 gram, 100 gram and 10 gramButter use name table butterOne chip lets weight 90 gramOne packet 110 chiplets pack and under 1 cartoon 12 packets

Amul spray:-



Tin pack – 500 gram & 1 kgRefill pack – 200 gram, 500 gram & 1 kgPolythin – 200 gram & 1 kg

Amulya:-Tin pack – 500 gramRefill pack – 200 & 500 gramPouch pack – 500 gram & 1 kg

Sagar skin milk powder spray dried (non fat)Refill – 500 gram

3.5 PRICING – METHODS AND STRATEGIES

The aim of each and every company is the maximum of profit and customer satisfaction. The level of profit is generally depending on the pricing policy of the company. Prices of the product are decided evaluating the return of factors of production i.e. interest, rent, wage, and profit. Also other such as direct and indirect taxes etc is also considered while deciding the price.The factors affecting the pricing are as follow.

Cost of production. Competition Quality of product Payment period There are five types of price setting methods. Value pricing Target return pricing Mark-up pricing Group Pricing Going rate pricing

In DUDHSAGAR DAIRY, prices are not fixed for the products; there are some regular changes in price of some products, just like milk and ghee. Prices are more and less depends upon the cost of the raw materials and other expanses. They can also adjust the price according to the market price and demand of product.



4. PROMOTION MIX

Promotion refers to marketing activities used to communicate positive information about an organization, its product and activities to directly or indirectly expedite exchange in a target market.

DUDHSAGAR promotes its products through newspaper, hoardings etc. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

4.1 ADVERTISEMENT

“Dudhsagar dairy” is do advertisement of its product many different ways, which are under

- Advertisement through Newspaper

- Advertisement through Board and Hoardings

- Advertisement through Posters

- Advertisement through Internet

The sales of organization mostly make by Gujarat Co-operative Milk Marketing Federation (GCMMF).

4.2 SALES PROMOTION

Sales Promotion consists of short term incentives to encourage Purchase and Sales of a product or services where as advertising offer reasons to by a product or services, sales promotion offers reason to buy it. Advertising is joined by two other mass production tools, sales promotion and public relation. Two tools of the sales



promotion (a) Consumer sales promotion tools and (b) Trade promotion tools. The main consumer sales promotion tools include:

Samples Coupons Cash refund Price pack Premium Advertising specialties Contents and games Patronage reward

For the sales promotion, in the Dudhsagar some stapes are taken like in dipavli festival some discount is given to the customers. For increase the morale of agent some benefits are given like bonus, increase commission etc.

5. CHANNEL MANAGEMENT

“Dudhsagar Dairy” Mehsana is producing various products like Milk, Butter, Ghee, Milk powder and Sweetened condensed milk etc. Distribution channel is important for business.

It has two types of Distribution channel like:

1) Local Distribution channel: -

The Dudhsagar dairy has its own sales office, which is organized by Dudhsagar dairy itself. It has different sales office in different cities like Kalol, Kadi, Mehsana and other places.

E.g. Wholesale dealer Retailers Customer

2) Nationally Distribution Channel: -

Federation dairy union Federation Depot Wholesale dealer Retailer Customer

This Distribution channel decided by Gujarat Coop Milk Marketing Federation Ltd



7 PART – CFINANCE / ACCOUNTING DEPARTMENT



1 Introduction


3 Capitalization and capital structure

4 Leverage analysis

5 Capital budgeting

6 Sources of finance

7 Working capital management

1. INTRODUCTION

Finance Management is the part of the Managerial activity, which is concerned with planning, and controlling of the firms financial resources. It is an applied branch of general management it has to plan to organize and control the finance of the enterprise. Chief duties of financial management are planning and control of corporate finance. Financial Management is called upon to take three major decisions viz. Investment decision, financial decision, and dividend decision. Financial Management involves the implementation of these three major decisions it is an integral part of overall management rather than merely a staff activity concerned with fund raising operations without sound management of financial resources, business can not achieve its objective and may occur heavy losses, Thus financing management in charge of efficient planning and control of the cycle of flow of funds inflow and outflow of funds.

Financial management, as an academic discipline, has undergone fundamental changes in its scope and coverage. In early years of its evolution it was treated as synonymously with the raising of funds. In current literature pertaining to financial management, a broader scope so as to include, in addition to procurement of funds, efficient use of resources is also characterized by a change over the years. Financial management, as an integral part of overall management, is not a totally independent area. It draws heavily on related discipline and fields, such as economics, accounting, marketing, production and quantitative methods.



Importance of finance can not be measured. It is really a key for business operation money is universal lubricant which keeps enterprise dynamic. It has gained lots of importance over time. Success of every business largely depends upon the financial position of the business. It is said, “Finance is the arms and legs of business “. A potential and capable management can run the department very effectively. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner

“Financial management is the activity concerned with the planning, raising, controlling & administrating the funds used in business.”

The financial management involves critical decisions on which the very survival of the organization depends. The main financial decisions are as follows:

Investment Decision. Financing Decision. Dividend Decision.

Financial decisions are thus very crucial and important, decisions for the firm. The main function of finance department is to tackle The day to day financial requirement and other short term and long term expenses, which an organization incur quite often.

All the other department of the organization strongly depends upon the finance department to carry on their departmental activity efficiently. Hence it is the responsibility of the finance manager to manage the finance function with proper care. Adequate financial availability in time in the organization would lead to organizational success and the failure to manage finance will thus lead to inefficiency.

IMPORTANCE OF FINANCE MANAGEMENT :-

Proper finance is the real key to the success of any business enterprise. Without proper finance a business neither survives nor expands and modernizes. It is the finance, which works like a lubricant, which keeps the organization dynamic. Keeps men and machine at work. The following are the points highlight the importance of finance.

Finance for business promotion. Finance management for optimum use of firm. Use for co-operation in business activities. Useful in decision-making. Determinant of business success. Measurement of performance. Basis of planning, co-operation and control.

SCOPE OF FINANCE MANAGEMENT :-



1. Investment or long term asset mix decision.2. Dividend decision / profit allocation decision.3. Liquidity decision / short - term asset mix decision

INTERNAL AUDIT DEPARTMENT

Shri. George Samuel is the in-charge of Internal Audit. Department handles the internal audit functions in various parameters as Financial, Operational, Special Assignments & Propriety areas. Internal audit dept. is broadly divided into pre-audit of payments; post audit of books, post audit stock, continuous physical verification, 100% purchase procedure, P&L & B/S audit. The internal audit procedure is defined in depth in Internal Audit Manual. The whole audit programme is well defined in advance and respective personnel are being responsible for the distributed work area.

Any queries are being seriously vouched and highlighted to the management to take rigorous steps for the same. After finalizing the internal audit workings, same set of books are being given to Government auditors for their audit purpose. Government auditors vouch the books and puts query (if any) for the clarification with the Union’s management and ask for the explanation of the query. Once the Government auditors are satisfied with the explanation of the query, the same is being freeze and cleared.

2. ORGANISATION STRUCTURE

The accounting function covering the Mehsana office and plant, the five Chilling centers at Vihar, Kadi, Harij, Hansapur, and Kheralu and two cattle feed plants at Boriavi and Ubkhal are performed by the Accounts Department at Mehsana head office of Dudhsagar dairy. All the purchase and sales for Dudhsagar dairy are executed from the Mehsana head office centrally. The purpose and scope of Account process are Management of Financial resource of the union accurate and timely payment to societies and supplies, maintain proper books of the union and advise Dudhsagar dairy’s management of the performance of the union based on accounting records, finance process includes the accounting functions of payables, Receivable, Cash Management, Asset Management, and General Accounting & Reporting functions including Budgeting. It also covers Costing activities performed at Dudhsagar dairy. The Audit Budgeting and Costing process are performed by the internal Audit department in closeness with Accounts Department.


Chairman

Managing Directors



General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Managers

Sr. Clerk

Deputy Manager

Assistant Manager

Sr. Executive

Executive

Asst. Executive

Jr. Executive

Sr. Assistant

Jr. Assistant


FINANCIAL PLANNING

A firm needs to manage its resource effectively and efficiently to achieve its objective. The managing of resources in an a effective manner is possible only when the management work out the future course of action in advance and take decision in professional manner and rational manner that’s why financial planning is very important.

Financial planning is a statement estimating the amount of capital and determining its composition. It includes;

Determination the amount needed for implementing the business plans. The determination form and proportionate amount of securities. Laying down the policies as to administration of financial plan.

STEPS FOR FINANCIAL PLANNING

3. CAPITALIZATION & CAPITAL STRUCTURE


Jr. Clerk

Analysis of past performance

Forecasting cash flow

Establishing objective

Determine investment need

Financing

Consequences of financial plan


CAPITALIZATION

Sources of capital for DUDHSAGAR are:

Federation gives them daily amount decided by union.Fix deposit of society is major source of finance.Interest of fix deposit of bank like SBI, BOB, etc is one of the sources of finance.Share capital of DUDHSAGAR. (Share of DUDHSAGAR is not for public but only for the society members.)

CAPITAL STRUCTURE

Capital is one of the most important factors of production without capital organization cannot production or other type of the activity. Capital includes share capital reserve and surplus and long term liabilities. The authorized share capital of the dairy is 2500,000 shares of Rs. 100 each and the capital is 2500, 00,000.

4. LEVERAGE ANALYSIS

Leverage is used for getting higher work don by putting lesser efforts i.e. mechanical advantages is achieved is achieved. For example, leverage helps us in log objective, which may not be otherwise possible. Leverage has been defined as “the mechanical advantages gained by the use of levers.”

Operating Leverage Financial Leverage Combined Leverage

The leverage associated with investment activity is referred as operating leverage while leverage associated with financial leverage associated with financial activity is called as financial leverage.

OPERATING LEVERAGE

The operating leverage many are define as firm’s ability to use fixed cost to magnify the effects of chances in sales on “Earning Before Interest & axes (EBIT). The operating leverage takes place when a change in sales producer a greater change in EBIT. A firm will not have operating leverage if its fixed operating cost is zero. For such firm a given percentages change in same



percentages in the level if sales would lead to the same percentages change in the level of EBIT.

ContributionOperating Leverage = ---------------

EBITWhere, EBIT = Earning Before Tax & Interest

= Contribution - Fixed Cost Contribution = Sales - Variable Cost

FINANCIAL LEVERAGE :-

Financial leverage is also known as “Trading on Equity”. The financial leverage is the ratio of long – term debt to total funds employed. It may be defined as the tendency of the residual net income to change disproportionately with operating profit.

EBITFinancial Leverage = ---------

EBTWhere,EBIT = Earning Before Tax & InterestEBT = Earning Before Tax

COMBINED LEVERAGE :-

It is also known as “composite leverage”. Operating leverage measures percentage change in sales & financial leverage measures percentage change in taxable profits or earnings per share (EPS) due to percentage change in operating profit. i.e. EBIT. Their combined effect will measure the company’s financial revenue & taxable income or EBT.

Operating LeverageCombine Leverage = -----------------------

Financial Leverage

5. CAPITAL BUDGETING

Capital budgeting will show the future expenditure on fixed assets over a period of years. Capital budgeting represents a scheme for investing resources which can be analyzed & appraised reasonably independently. The basic characteristic of a capital expenditure is that it typically involves a current outlay of funds in the expectation of a stream of benefits extending for into the future.



“Budgeting is the financial and quantitative statements prepare and approved priority to a definite period of time of the policy to be perceived during that period for the purpose of attaining given objective.”

“Budgeting is the process of planning all flow of finance resources into within and information during some specified period.”

Currently the budgeting activities are restricted to annual preparation of budget and monitoring of budget versus actual cost quarterly. Budget is made annually by manually obtaining the amount from each department against the several budget head description in a form. Dudhsagar wants to track and implement budgetary controls while making expenditure.

Dudhsagar has limited exercise towards allotment and structuring of cost code, sub code and purpose code according operation classification. As sales are more or less regulated, a more system orientation is adhered to in drafting cost budgets. The code allocation practice is on to allot the codes based on direct cost and than to the sub division or activity the codes are both all allotted to process and product.

In case of finance and accounts, situation is different in case where the tally accounts and budget codes are same and in circumstance where they are different. In case where they are different the budget accounting system codes are input against each account automatic conversation to BAS codes occur where they same.

Budget is tracked against the cost centers and sub centers are defined with the responsibility center but currently the responsibility centers are not in use the stores consumption tracked till the cost center and sub center level at the time of consumption itself for other expenses like repairs and maintenance travel expense and other office expenses the cost center and sub centers are entered to categories the expenses after exporting them into an oracle based system from the tally system for the purpose of tracking. A quarterly budget review report is prepared depicting the quarterly budget amount actual expense and variance figures along with the cumulative figures.

For following essential element of Budget Company prepare and control successful budget system.

Objectives

Knowledge

Accurate forecasting or business activity

Co-ordinating business activity

Communicates the budget



Education, co-operation

Flexibility

Providing frame-work for evaluation

“DUDHSAGAR DAIRY,” Prepares following budget in terms of time, nature and capacity is given below.

TIME BASED BUDGET:

Long Term Budget (5 to 10 year)

Short Term Budget (1 to 2 year)

Current Budget (up to 1 year)

ACCORDING TO NATURE:

Operating Budget

Financing Budget

ACCORDING TO THE CAPACITY:

Fixed Budget

Flexible BudgetACCORDING TO FUNCTION:

Sales Budget

Production Budget

Personnel Budget

Direct Labour Budget

Cash Budget

Capital Expenditure Budget

6. SOURCE OF FINANCE

Where money comes in company is important because this financial facility useful for company activity. There are two types of source of collecting money in market first one is short term source and second is long term source long term source of finance is useful for fixed assets and short term finance source is useful for company day to day activity.

a) Long Term Source of Company



Equity share capital

Reserve & surplus

Secured loan

Unsecured loan

b) Short term sources of company Deposit

Bank loan

7. WORKING CAPITAL MANAGEMENT

INTRODUCTION

Every business concern irrespective of its, nature and needs of working capital. Funds are needed to carry out business operations such as purchase of raw materials, payment of wages and other day-to-day expenses, these funds are known as working capital the key difference between long term financial management and working capital management is in terms of the timing of cash. While long-terms financial decisions like buying capital equipment or issuing debentures invoice cash however an extended period of time, short-term financial decisions typically involves cash how within a year or within the operating cycle of the firm. The concept of working capital has been a matter of great controversy among the financial wizards. There are two concept of working capital-gross & net.

Gross working capital refers to the funds invested in current assets. Current assets are the assets, which can be converted into cash within one year and includes stocks, debtors, cash, short-term securities and bills receivable.

The gross working capital concept focuses on two aspects of current assets management. How to optimize investment in current assets? How should current assets financed?



The consideration of the level of the current assets should avoid two danger points - excessive and inadequate investment in the current assets. Investment in the current assets should be just adequate to the need of the business firm. Excessive investment in the current assets should be avoided since it impairs firm's profitability, as idle funds generate nothing. On the other hand inadequate investment in the current assets can threaten the solvency of the firm because of its inability to pay the current obligations. Another aspect of the gross working capital points to the need of arranging to finance the current assets. Whenever the need for working capital rises for any reason, financing arrangement should be made quickly. Similarly some surplus funds arise they should be invested in the short-term securities.

Net working capital refers to the difference between current assets and current liabilities. Current liabilities are those claims of creditors that are expected to mature for payment within one year and include creditors, bills payable and outstanding expenses.

Net working capita; is the qualitative concept. In indicates the liquidity position of the firm. The good liquidity means maintaining current assets in excess of current liabilities. A weak liquidity poses a threat to the solvency of the company.

Net working capital also covers the question of judicious mix of long-term and short-term funds for financing current assets.

CATEGORY OF WORKING CAPITAL

[A] Permanent working capital:-

The need for the working capital arises due to operating cycle. The operating cycle is the continuous process so the need for working capital is felt constantly. Thus a minimum level of the current assets is continuously required by the firm, which is referred as permanent working capital.

[B] Temporary working capital:-

The firm has to maintain extra inventory of finished goods to support the peak periods of sales activities and investment in receivable may also increase during such period. On the other hand investment in raw material, work-in-progress and finished goods will fall if the market slack. Thus the extra working capital need to support the changing production and sales activities is called temporary working capital. It may be financed by short terms sources.

In the figure-1 it is shown that working capital is stable over time, while temporary working capital is fluctuating-sometime increasing and sometime decreasing. However the permanent working capital line need not be horizontal if the firm's requirement for the permanent working capital increasing or decreasing over a period of time.



NEED FOR WORKING CAPITAL

Need for working capital arises in order to run day-to-day business activities. The firm should aim to maximize the wealth of the shareholders. In it endeavor to do so, a firm should earn sufficient return from it operations. Earning steady amount of profit requires successful sales activity hence firm has to invest enough funds in current assets for generating funds. Current assets are required because sales do not convert into cash instantaneously. There is always an operating cycle involved in the conversion of sales into cash.

OPERATING CYCLE

There is difference between current assets and fixed assets in terms of their liquidity. A firm requires years to recover the initial investment in fixed assets. On the contrary, investment in the current assets such as debtors and inventory is realized during the firm's operating cycle that is usually less than one year.

Operating cycle is the time duration required to convert sales, after the conversion of resources into inventories into cash. The operating cycle of manufacturing firm involves three phases: Acquisition of resources such as raw material, labor, power and fuel etc...

Manufacturing of the product which includes conversion of raw material into work-in-progress into finished goods. Sales of the product either for cash or on credit. Credit sales create account receivable for collection. OPERATING CYCLE


CREDITORS

FINISHED GOODS

TRADE DEBTORS

CASH

RAW-MATERIAL

WORKING PROGRESS

SALES


WORKING CAPITAL MANAGEMENT

Working capital management usually is concerned with the administration of all the current assets and current liabilities. Thus it is basically concerned with: -

Determining the need of working capitalDetermining the optimum level of investment in various assets, andExamining the salient point of regarding each element of working capital

It is obvious that given a constant level of production higher the amount of working capital the lower will be the return on investment since capital turnover ratio will be less. On the other hand lower the amount of working capital the higher would be the amount of the risk since the company would not have adequate liquidity to meet its short- term obligation.

The two important aims of the working capital management are: profitability and solvency. Solvency refers to the firm's continuous ability to meet maturing obligations. Lenders and creditors expect prompt settlement of their claims as and when they due. TO ensure solvency, the firm should be very liquid. If the firm maintains a relatively large investment in the current assets, it will have no difficulty in paying claims of creditors when they become due and will be able to fill all sales orders and ensure smooth production. Thus a liquid firm has less risk of insolvency. However there is a cost associated with maintaining a sound liquidity position. A considerable amount of the firm's funds will be tied-up in the current assets, and to the extent this investment is idle, the firm's profitability will suffer. To have higher profitability, the firm may sacrifice solvency and maintain a relatively low level of current assets. When the firm does so, its profitability will improve as less funds are tied-up in the current assets, but its solvency would be threatened and would be exposed to greater risk of cash shortage and stock-outs.

SIGNIFICANCE OF WORKING CAPITAL

Management of working capital is an essential task of the finance manager. He has to ensure that the amount of working capital available with his concern is neither too large nor too small for its requirements. A large amount of working capital would mean that the company has ideal funds. Since funds have a cost the company has to pay huge amount as invest on such funds. .



Over capitalization implies that a company has large funds for its requirements, resulting in a lower rate of return a situation, which implies a less then optimum use of recourses. A firm has therefore, to be very careful in estimating its working capital requirements

If the firm has inadequate working capital it is said to be under capitalized, such a firm runs the risk of insolvency.

WORKING CAPITAL FORCAST

Estimate of future working capital based on current assets and current liabilities. The estimation of future working capital can be made if the amount of current assets and current liabilities can be estimated as follows:-

The various constituents of current assets and current liabilities have a direct being on the computation of working capital and the operating cycle. The holding period of various constituents of operating cycle may either contract or expand the net operating cycle period; lower will be the requirement of working capital and vice-versa.

DETERMINENT OF WORKING CAPITAL

Working capital requirements are always very from industry to industry, firm to firm etc. The following factors influence the working capital requirement of the firm.

1] Nature of the business2] Sales and Demand condition3] Technology and Manufacturing Policy4] Credit Policy and Production Policy5] Availability of the Credit6] Operating Efficiency7] Price level changes8] Seasonality of Operation9] Market Condition10] Size of the Organization11] Operating Process Cycle12] Inventory13] Types of raw material require and their procurement sources14] Safety stock and lead time15] Marketing of the company's goodwill etc.



MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD Balance Sheet for the Year ending on 31st March 2009

PARTICULAR 2006-07 2007-08 2008-09 ASSESTFIXED ASSETS 831957692 898608895 4510945763CAPITAL WORK IN PROCESS 9695503 10713587 212254155INVESTMENTSINVESTMENT IN SHARE 77026920 98191020 98191020NATIONAL SAVING CERTIFICATE 16000 16000 22000INVENTORIES 1130026534 1746402925 1900294576TRADE DEBTOR 628486610 844306783 571369017LOAN & ADVANCES 278296775 300393847 531448223CASH & BANK 1515573851 294499251 2346561963 TOTEL 4471079885 4193132308 10171086717 LIABILITIESAUTHORIZED SHARE CAPITAL 250000000 250000000 250000000



SHARE CAPITAL(FULLY PAID) 182943200 183107200 183197200RESERVES 265716835 283466254 3909157254LOANSECURED 1487516157 1460857134 1204963315UNCURED 636516100 736516100 2486516100CURRENTLIABILITIES & PROVISIONSDEPOSITS 314612337 379986885 480085481UNPAID DIVIDEND 5634 7423 8443DUES TO SOCIETIES 1223474127 740415963 1367281855OUTSTANDING AGAIN EXP 72032031 95881537 140989987OUTSTANDING AGAIN PURCHASE 112972951 140793050 181912808SANDRY CREDITORS 77558291 67006202 84786012DEBENTURE REDEMPTION PREMIUM 10238708 14334191 18429674PROVISION FOR INCOME TAX 50162554 55262554 73087554PROVISION FOR CONTINGENT LIABILITY 0 0 3471578PROFIT & LOSS A/C 37330960 35497815 37199456 TOTEL 4471079885 4193132308 10171086717

MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD

Trading, Profit and Loss Account for the Year ending on 31st March 2009

EXPENDITURE2006-07 2007-08 2008-09

OPENING STOCK 1051298582 762183626 1324870445WORK IN PROCESS 161073409 118143040 151429162RAW MATERIAL OF MILK 33392648 49043885 29452351PURCHASE 8930681333 11388237501 12448930258PURCHASE EXP 366069948 490701293 66465771POWER & FUEL 317897797 374750901 479878006MATERIAL CONSUMED 1982968666 2365212470 2988357484CO-OPERATIVE EXP 18118133 20839892 21808578PROCESSING EXP 14031551 16825130 18647354INSURANCE PREMIUM 6410080 3749309 2876917SALARY & WAGES 279753718 280769559 354520320STAFF P.F & OTHERS BENEFIT 96112142 77248480 97499710FREIGHT & FORWARDING EXPENSE 40265698 50948347 65538769AUDIT FEE 10741408 15710259 10669377



INTEREST & COMMISSION 101258595 96956538 156708131OTHER EXP 17890105 31869931 36003267MARKETING EXPENSE 12026015 11436918 9964683DONATION 12211 0 0REPAIR & MAINTENANCE 61289639 67239455 83125090RATE RENT & TAXES 8035693 5294435 7801914POST TEL.&STASTIONERY-PRIN 6443369 4712322 6644787PREVISION FOR TAX 1694465 5677035 18928748PROVISION FOR RESPONSIBILITY 0 0 3471578DEPRECIATION 113446183 121655115 120425999PROFIT 37330960 35497815 37199456TOTAL 13668242348 16394703256 18541218155INCOME 79643064 67123786 67505990SALES 12659228733 14821827512 17502649176CLOSING STOCK 929370551 1505751958 1569254289LOSSTOTAL 13668242348 16394703256 19139409455



8 PART – DHUMAN RESOURCE DEPARTMENT

1 Introduction


3 Human Resource planning

4 Recruitment sources

5 Selection methods

6 Placement

7 Training and development

8 Performance appraisal policy

9 Wage and salary administration – job evaluation

10 Promotion and Transfer

11 Role of Human Resource Development

12 Trade union and industrial relation

13 Dispute management

14 Social responsibility

1. INTRODUCTION

Manpower is one of the important aspects to be taken into consideration. If a company has highly advance technology for the production unit but does not have well skilled labor to operate the machineries then all the technology is a waste. Even after having highly advanced technology the unit cannot excel in its production objectives. Human resource management deals with the human aspect of the organization.

“It is basically concerned with two important function is managerial function, under which planning, organizing, directing, and controlling are included and also operating function under which procurement development, compensation integration and separation are included.

Adovin Flippo

Thus in short, it is concerned with the obtaining and maintaining of satisfactory and satisfied work costs. The main objectives of personnel department are:

1. To select the personnel on need.2. Effective utilization of personnel in the achievement of organization goals.



3. To safeguard the interest of labor and management by securing the highest level of mutual understanding and goodwill among those sections in the company which participate in the manufacturing process?

4. To maintain harmonious relations between workman & management.5. To sustain & improve work condition so that the employee nay sick to their

jobs for longer period.

Now a day in India, the importance of personnel has been identified and realized and therefore maximum efforts are being done to develop it and thus DUDHSAGAR has maintained a separate department having separate nice president.

In DUDHSAGAR DAIRY total member of staff are above 1850, and maximum member of workers is in powder section & it is 361.

2. ORGANISATION STRUCTURE


H.R. DEPARTMENT

H.R. MANAGER

SUPER VISOR

CLARK

WORKER

ASSISTANT MANAGER


3. HUMAN RESOURCE PLANNING

“The process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrate plan of the organization”.

Coleman

Human resource planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through HRP a management strives to have the right number & right kind of people at the right places, at the right time to do things, which result in both organization & individual receiving the maximum long range benefit. Thus, HRP consist of projecting future manpower requirements & developing manpower plans for the implementation of the projection.

There are several factors that have to be consideration in the time of Human Resource Planning.

Strategy of the organization Organizational growth Environment Uncertainty Time horizon Nature of the job Off loading the work

Human resource planning is understood as the process of forecasting an organization’s future demand for and supply of the right type of people in the right number. This is a crucial step in the overall HRM process. Organizational planning includes managerial activities that set the companies objectives of the future and determine the appropriate means for achieving those objectives.

4. RECRUITMENT SOURCES

“Recruitment is a process of searching for prospective employee & stimulating & encouraging them to apply for jobs in an organization”.

When management official thinks that, in the organization, requirement for the recruitment & fill up the vacancy, for suitable person for suitable job, to do recruitment. Company for its better future & earn more profit than earlier, it shall fill the vacancy & appoint the right person in right place, by advertising on the notice board, in the magazine, newspaper, & from the past pending application in the organization.

E.g. the recruiters prepare profiles for each category of works & according by work and the main specialization, where they should be placed.



DUDHSAGAR DAIRY generally use both type of sources of Recruitment:

1) Internal: -

Internal sources include personnel already available in the company, e.g. its working force when ever vacancy occur somebody from within the organization is upgraded transferred promoted & some time demoted.

2) External: -

External sources of recruitment are private employment agencies, placement exchangers, and management consulting firms.

5. SELECTION METHODS

SELECTION

“It is the process of choosing the prospective candidate who can match best with the job profile as well as can adjust best with the Organization culture.” Flippo

After considering the application from the candidate who is given an application for the job a particular designation, by the selected official creates a selection committee to select the right candidate. That committee calls the candidate for personal interview; they select a candidate with his knowledge, practical skill & qualification. One of the most beneficial points is that candidates have any experience in that type of work.

Selection is a hard tasks & it is complex in nature. It is also time consuming as well as costly. In DUDHSAGAR dairy

SELECTION IN DUDHSAGAR

The company has adopted the various methods of selecting the essential workers in the organization. One of those methods is to call the candidates for personal interview to know his basic knowledge, attitudes regarding the job and some other basic testing. For that, company has a selection committee to select a suitable candidate for the job.


EXTRERNALINTERNAL

RECRUITMENT


Selection for the managerial level post, it’s based on educational qualification as well as practical knowledge & skill. For workers, it’s based on experience & seniority.

VACANCY IN ANY DEPARTMENT

APPROVAL FROM M.D.

ADVERTISEMENT

COLLECTION OF APPLICATION

SECURITIZE THE APPLICATION

INTERVIEW

MEDICAL CHECKUP

SELECTION

In DUDHSAGAR DAIRY the probation period for officers is 12 months, 6 months for clerical employee, and 3 months for workers

6. PLACEMENT & INDUCTION

PLACEMENT

After an employee has been hired, an offer of employment has been extended and accepted & accepted the final stage in procurement function is to be concluded namely that of placement of the individual on the new job. Placement includes initial assignment of new employees and the promotion transfer or demotion of present employees.

Placement may be defined as the determination of the job to which an accepted candidate is to be assigned & his assignment to that job it is matching of what the supervisor has reason to think he can do which the job demands. It is matching of what he describes.

Collect details about the employees

Construct his / her profile

Which subgroup profile does the individual’s profile best fit?

Compare subgroup profile to job profile.



Which job profile does subgroup profile best fit?

Assign the individual to job family

Finally placement is done with right candidate at right job.

“DUDHSAGAR DAIRY” is also having systematic placement activity i.e. this firm also checkout all the information of job & job holder before giving him final placement so that best individual can be fit into the job. In DUDHSAGAR DAIRY, worker as well as engineers guide to new comers but there are fewer chances of demotion and transfer.

INDUCTION

“Induction is the process of receiving & welcoming an Employee when he first joins a company & giving him the basis information he needs to settle down quickly & happily & start Work.”

Michal Armstrong

Purpose of Induction

Promote among old employees Build up confidence of new Employee To give necessary Information about company to new employees To faster a close and cordial relationship

Induction in DUDHSAGAR

Company’s Organization Structure Brief History & Operations of the Company Product & Services of the Company Rules & Regulations and Daily work Routine Working Method & Discipline of the Unit Training & Promotion Policy Benefits & Services to Employees

DUDHSAGAR DAIRY is not having any specific induction procedure i.e. whenever any new employee is appointed, the information regarding daily work routing & work rules is given no any other welcome process is carried out in this organization



7. TRAINING & DEVELOPMENT

TRAINING

Training is very important need after selection of the workers for jobs. Training programme can help to the company in competition period for its quality. Training is defined as “the act of increasing knowledge and skills of an employee for doing a particular job”. Training implies activities in that teach employees how to perform their present job better. In short, training prepares people to perform their present jobs more efficiently. Training teaches employees required skills, knowledge, attitudes and helps them improving their performance by improving new skill, new techniques of doing the work and improving their work habits, and reduces wastage of time or cost.

“Training is a process of learning a sequence of programmed behavior”. It is a short term process utilizing a systematic and organizes procedure by which non managerial personnel learn technical knowledge and skill for definite purpose.

TRAINING METHODS

A) On the Job Training :



This most commonly used & widely accepted method of training is helpful to the job. On the job training is essentially a process of learning while doing the job. A variety of on the job training methods may be employed by organizations, which are discussed below.

1) Job Instruction Training2) Training by supervisors3) Simulation4) Apprenticeship5) Self – learning6) Training by experience workman7) Instruction

B) Off – the – Job Training :- In off – the – job training, the training does not form part of actual job activity. Here, the training is provided first to the new employee either at co classroom or at training centers owned by organization. When training tests completed, employee is put one actual job activity. Some of the widely accept off – the – job training methods are as discussed below.

1) Lectures method2) Conferences3) Seminar or group discussion4) Role play5) Programmed instructions6) Case study etc.

TRAINING FOR THE WORKERS

The HR department of the DUDHSAGAR DAIRY prepares schedule for training of the workers in orders to make them familiar with their task and to develop the job. The main purpose of the company behind imparting training is to make the workers well converse with the new technology.

TRAINING FOR CLERK AND TECHNICAL STAFF

The DUDHSAGAR DAIRY is not imparting any training course as far as clerical staff is concerned. But the supervisors are trained for: Gaining knowledge of responsibility Cost control and cost effectiveness Knowledge of all disciplinary action Development of leadership quality

DEVELOPMENT



DUDHSAGAR aims at improving the managerial skills and effectiveness of its every individual through a planned and deliberate profile and process of learning.

The Human Resource Department of the DUDHSAGAR arranges various conferences and invites guests and other executives from its different units to audit the organization and to impart training to the executive. On the contrary, the officers and managers of this company are also sent to its different units within the country as well as aboard for the exchange of idea relate to the operation management and also for the improvement of this technical knowledge.

8. PERFORMANCE APPRAISAL POLICY

“Performance Appraisal is a systematic, periodic and impartial rating of employee’s excellence in matters pertaining to his present job and to his potentialities for an enhanced job.” Flippo

It is a process of obtaining, analyzing & recording information about the relative worth of an employee. Performance Appraisal evaluates the Performance of employees by quantitative factors such as quantity of output and rejected output, standard of work etc…

PERFORMANCE APPRAISAL IN DUDHSAGAR

DUDHSAGAR has adopted performance appraisal system in an Organization. It helps to

To assist in determining promotion and transfer policies. To improve job performance & identify potentialities for other work. To help in proper placement of workers. To reduce grievances among employees. To identify work area & needs for further training of employees. To develop positive relation in between employees and high authority.



TIME KEEPING SYSTEM

The dairy has a time keeping system. The officers & employees have to mark their presence in attendance register. There is also card system that is very easy. All the staff on factory floor is working in the three shifts and each shift is of 8 hours.

First shift - 4.00 a.m. to 8.00 a.m. Second shift - 8.00 a.m. to 16.00 p.m. Third shift - 16.00 a.m. to 24.00 p.m. Office time - 10.00 a.m. to 18.00 p.m.

9. WAGES AND SALARY

It is a universal fact that no one will work without any reward. Thus an employee has to be properly rewarded for his services rendered to the organization. He should be paid reasonable wage or salary. The salary or wage is the remuneration for his service to the organization.

At DUDHSAGAR, wages and salaries arc paid on monthly basis. A time rate wage system is followed by the organization. The salary of an employee would include basic salary plus allowances like house rent, medical allowance, clearness allowances, performance allowances, festival allowances, travel allowances, education and development allowances, leave allowances etc,.

A common method is followed for the wage and salary administration. The present catalogue record received from the time keeping officer is maintained of each employee in the register, which is known as "Muster Roll".

Timekeeper sends that muster roll to the account department for attendance of each and every employee. This will analyze and entered in the computer. The report is scrutinized and statutory and non-statutory deductions are made. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.



10. PROMOTION AND TRANSFER

PROMOTION

Promotion is a term which covers a change & calls for greater responsibility & usually involves higher pay & better terms & condition of service and therefore, a higher status or rank. Following points are to be considered while promoting employees:

Seniority

Vacancies

Opinion of Divisional head, past record, behavior

Skill and knowledge

Experience

Loyalty towards organization

TRANSFER



Promotion means an improvement in pay prestige, position and responsibilities of an employee within his/her organization. A mere shifting of an employee is a different job which has better working hours better location and pleasant working conditions does not amount to promotion. The new job is a promotion. The new job is a promotion for the employee only when it carries increased responsibilities and enhanced pay. Transfer is a horizontal movement policy. It does not change authority, salary, status but only place is changed from one organization to another organization.DUDHSAGAR gives first preference for transfer to those employees who are coming from local areas. Normally DUDHSAGAR gives transfer to adjust the work force of one plant to another. There is no any fix transfer policy. Sometime temporary transfer is also given to employees.

SLOGAN: - “ONE HAND IN ANOTHER HAND”

11. WALFARE POLICY

DUDHSAGAR provide very good facility to their employees so that employees work effectively and efficiently. It provides following services to their employees:

UNIFORM: DUDHSAGAR gives two pairs of uniform every two years to the workers.

CANTEEN FACILITY: DUDHSAGAR has its own canteen for its employees. All the employees of DUDHSAGAR get tea, coffee, breakfast and lunch at minimum rate. They lunch dish at Rs. 10 per dish. For that they provide coupon to their employees.

SAFTEY: DUDHSAGAR provides hand gloves, cap, shoes, apron and other things for the safety purpose of workers.

MEDICAL FACILITY: DUDHSAGAR also provide medical facility to its workers. They organize vaccination programme for the workers on regular basis. DUDHSAGAR has its own hospital in the organization.



WORKERS COMPENSATION POLICY: If during the working time any accident occurs, the company will pay for the injury as per the workman compensation act.

BONUS: In DUDHSAGAR bonus is given to the workers and officers before Diwali, Production Bonus is also given to employees.

PERSONAL ACCIDENT POLICY: the amount for this is set up for every worker category wise. The premium is paid by the organization on behalf of workers. In case of any accident this policy is very useful for the workers.

REST ROOM FACILITY: There is a rest room facility in the organization for worker. So they can take rest during their intervals and free time. It covers number of light, fans, toilet and bathrooms and again services of personnel lockers. So employee can put their things in the locker.

LIBRARY FACILITY: DUDHSAGAR gives library facility to the employees.

12. TRADE UNION & INDUSTRIAL RELATION

TRADE UNION

Trade unions as we know exist in most organization. Trade unions are the typical unions made up of employees of that particular organization. Generally the employees in order to get better working conditions, better pay scales and to protect themselves from exploitation form Trade Unions. Trade unions perform the basic activities of discussions and negotiations with the management regarding the issues of conflict.

At DUDHSAGAR there are tree trade unions in existence. One trade union is for workers the other is for clerical staff and finally one is for officials. In the initial stage there were many strikes had for 2 to 3 days of workers. However since then DUDHSAGAR has been faced harmonious relations with trade unions. Since DUDHSAGAR is a co-operative organization each member of trade union works as a family member of DUDHSAGAR

INDUSTRIAL RELATION

Industrial Relation is concerned with the systems, rules and procedures used by union and employers to determine the reward for effort and other conditions of employment,



to product the interests of the employed and their employers and to regulate the ways in which employers treat their employees.

There are 3 approaches of industrial relation.

Uniform approach Pluralistic approach Marxist approach

13. DISPUTE MANAGEMENT

Disputes are common in industries. Disputes occur only through the misunderstanding among the executives, officers, employees & employers or among hem in the company for the common task to be performed in company. Disputes are also one of the parts of success because through it, one can also find the new ways or solutions for the problems & it would assist in increasing the creativity & innovativeness for the solution.

Causes of Industrial Disputes:-

(1) Wage & Salary(2) Working Hours(3) Working Environment(4) Privileges & Benefits (5) Rights & Obligations(6) Failure of Trade Unions(7) Absence of Any Suitable Grievance Redressed Procedure(8) Management Attitude to Labour.



In case of DUDHSAGAR there is a manual harmonious relation between the management and personnel. There is a peace and harmony in the unit. But, if there is any grievance between the employee and management then the head management manages the grievance and tries to solve problems very factually. Thus the unit enjoys internal peace and harmony.

14. SOCIAL RESPONSIBILITY

“To actively contribute to the social and economic development of the communities in which we operate. In so doing, build a better, sustainable way of life for the weaker sections of society and raise the country’s Human Development index”.

In DUDHSAGAR Dairy social empowerment of about 5 LACS milk producing members. So, the social responsibility is necessary for progress and welfare of society.

9. GENERAL SUMMARY AND FINDINGS

RECOMMENDATION

PRODUCTION DEPARTMENT

Strengthen the relationship with villagers.As the dairy industry depends on agriculture & veterinary DUDHSAGAR Dairy should have to concentrate on making strong relationship with villagers by providing societal services like health and safety (medical facility) to the farmers, educational facility to their children, insurance facilities etc.Though milk is perishable item durability of milk should be increase by increase in number of chilling centers in all over the Gujarat.

HUMAN RESOURCE DEPARTMENT



Working system in many departments is obsolescing. So, union has to adopt new operating systems to work like increase in no. of computers in administrative department, salary department etc. So that work can be done speedier and efficiently and newly recruited employees can be motivated.

SUGGESTION

I would like to give suggestion as bellow.

The operating expenses are very high. Such has a raw material, research & extension, packaging, processing, power & fuel etc. In this expenses raw material consumption is most and company can never controlled. Such expenses. Because DUDHSAGAR is expanding its dairy network year to year. So plant machinery consumption, operation expanses and other expenses will be increase in future. So firm should more focus to increase in sales. So increasing in the selling of milk products is necessary.

Average collection period of DUDHSAGAR is not covered with in credit period, which is granted by firm to its debtor with in month. So firm should try to collect amount from debtors with in month.

To purchase milk is most important factor of DUDHSAGAR because firm milk as a raw material which is perishable. So firm should use more and more high speed vehicles like tanker, railways etc for to collect raw-material and arrangement of more calling centers are necessary to protect the raw-material. Because wastage of milk can effect on the expected production or on the profit also.

Firm should pay its creditor or societies with in few times. Because if payment became late. The credit of company may be affected.

Since several years DUDHSAGAR is expanding dairy network .So collection of milk from far places is very costly and its maintenance and other cost are also may be increased. So DUDHSAGAR should establish satellite dairies on such far places. Because such this steps the production and sales will be increased and market of the private competitor will be decreased.

In the globalization world when cutthroat competition is prevailing in all developed or developing country so to survive in the market, high qualified persons are more necessary for every firm. Due to lack of salary and other. Facilities qualified person cannot stay in the particular firm. So for DUDHSAGAR should take necessary steps for this. Firm should increase extra facility or high salary.

In the marketing field to increase the market of new products. Firm should use more and more distribution channels like DUDHSAGAR parlor, retailer, and direct selling and media like more advertisement in television, news-paper posters, board and many more.



FUTURE CHALLENGES

The future of any institution is a subject, which requires constant attention. The future is perceived as one embroiled with hardship. Hardships may surface in many forms as global demands and changes, foreign affiliations, competition, liberalization, changing values, urban shifting etc. are some of them to name which we foresee and union has to cope with these.

In future union should adopt latest technology. Union should not sit with foremost quality of product and co-placement with existing product range but think in a more innovative way. To stay ahead research and development unit has to be strengthened.

Union also thinks of price to sustain leading position in the market. Prices will have to remain steady and so union should concentrate on reducing maintenance expenses rather than proposing increasing product price.

In comparison with other countries, which are in leading position in dairy industry, the milk-producing animals in our country yield 4 times less milk. Hence, it is the time that union should seriously review enhancement of milk production by adopting better animal husbandry practices.

10. BIBLIOGRAPHY



For the reference I have used the following:

BOOKS:

Sr. on. Name of books Author name

1 Marketing Management Philip kotler

2 Human Resources Management P. Subbarao

REPORT:

Annual report of Dudhsagar dairy

Annual report of Amul dairy

WEB SITES:

◘ www.indiandairy.com

◘ www.intra.sagar.com

◘ www.amul.com

◘ www.sagar.com

◘ www.gcmmf.com

◘ www.dudhsagardairy.co.in


http://www.gcmmf.com/

http://www.sagar.com/

http://www.amul.com/

http://www.intra.sagar.com/

http://www.indiandairy.com/

dudhsagar dairyrreport 2009,10

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