Management science project work on Sanchi milk factory

Submitted by :Rana pratap singh kushwahItm university

Objective of the study:

• To find out the best combination of production of milk packets among them.

• To use linear programming in sanchi to optimize profit.

Organization Structure:

Activities of MPCDF / Milk Union are governed by 3 major areas

• Field Operation

• Plant Operation

• Marketing

Field Operation The Field Operation activities begin with organization of Dairy Co-

operative Societies in the rural areas and end with milk transportation to the dairy dock. The basic Field Operations include :-

• Organization of Dairy Co-operative Societies on 'Anand' pattern.• Organizing milk producers farmers' training programs for formation of co-

operatives, awareness to co-operative principles & milk production enhancement techniques etc..

• Procurement and transportation arrangement of milk.• Providing Technical Input services to the milk producer farmers for milk

production enhancement such as Animal Health Care (First Aid & Emergency), Artificial Insemination, Balanced Cattlefeed and improved fodder seed etc.

• Preference to economically weaker sections, small & marginal farmers, scheduled caste / tribe categories in various activities.

Plant Operation

• Reception of milk at Chilling Centre / Dairy Dock.• Testing of milk.• Milk Pasteurization• Milk Chilling• Milk Packing• Manufacturing & packing of Main products like Ghee, SMP,

White Butter & Table Butter.• Manufacturing & packing of indigenous products like

Shrikhand, Lassi, Peda, Salted & Plain Butter Milk, Flavored Milk etc.

• Storage of products

Marketing• The Marketing Activities at the Milk Unions/MPCDF can be summarised hereunder :-

Marketing of different types of milk in different pack sizes (Full Cream Milk, Standard Milk, Toned Milk, Double Toned Milk, Skimmed Milk etc.) under the brand name "Sanchi".

• Marketing of Indigenous fresh milk products (Ghee, Flavored Milk, Butter Milk, Shreekhand, Sweet Curd, Mattha, Dahi, Lassi, Peda, Chakka, Mawa, Paneer etc.) under the brand name "Sanchi" within the state.

• Sales Promotion and advertising• Sale of surplus milk to the other cooperative Milk Unions under the State Milk Grid (SMG)

and to other Cooperative Organizations / Milk Unions outside the state under the National Milk Grid (NMG).

• Marketing of Ghee, Skimmed Milk Powder (SMP) and Table Butter under the brand name "Sneha" by MPCDF (products manufactured by the Milk Unions) outside the state.

• Consumer Awareness about Pasteurization of milk, "Quality" and "Hygiene" aspects of "Sanchi" milk and milk products.

• Distribution System for liquid milk and milk products in the towns.• Tapping new areas and townships for sales coverage.• Organizing campaigns against adulterated milk .

PRODUCTS (MILK)

Sanchi – GoldHigh Fat Milk

• Sanchi health is pasteurized full cream milk• Contains 6% and 9% solid not fat (SNF).• It has high nutritive value with body building

proteins, bone forming minerals and vitamins.• Available in 500 ml and 1000 ml pouches in

Ujjain, Bhopal, Indore, Gwalior & Jabalpur milkshed area.

Sanchi – SmartDouble Tonned Milk

• Sanchi health is pasteurized double tonned milk.• Contains 1.5% fat and 9% solid not fat(SNF).• It is homogenized milk which contains proteins,

minerals and vitamins.• Ideal milk (with less fat) for health conscious

persons.• Available in 500 ml and 200 ml pouches in Ujjain,

Bhopal, Gwalior, Indore and Jabalpur milkshed area.

Sanchi -TazaTonned Milk

• Pasturized and homogenized toned milk.• Contains 3% and 8.5% solid not fat(SNF).• It is a balanced milk suitable for every age

group .• Available in 200 ml, 500 ml and 1000 ml

pouches in Ujjain, Bhopal, Indore, Gwalior & Jabalpur milkshed area

Sanchi – ShaktiStandardised Milk

• Sanchi Shakti is pasteurized Standard Milk.• Contains 4.5% fat and 8.5% solid not fat(SNF).• It contains proteins, ,minerals and vitamins.• Ideal milk tea, curd and other home made

sweets.• Available in 500 ml pouches in Ujjain, Bhopal,

Gwalior Jabalpur and Indore milkshed area.

• We take the all four different types of milk (packets).– Gold – Shakti– Taza – Smart

• We are going to take only 500ml pack of all in our study.

Objective Function:Milk Type Cost Price Selling Price Profit margin

Gold (x1) 13.5 16 2.5

Shakti (x2) 13 15 2

Taza (x3) 11.5 13.25 1.75

Smart (x4) 9 10.5 1.5

Z(max)= 2.5x1+2x2+1.75x3+1.5

Labour hour

• Approx 125 employees 52500 minutes we have

2x1+2x2+3x3+3.5x4 =< 52500 The other two taking more time because the

abstraction of cream is takes place which takes more time.

Milk Type Labour required (min)

Gold (x1) 2

Shakti (x2) 2

Taza (x3) 3

Smart (x4) 3.5

Quality test(3600 minutes)Milk Type Gold Shakti

Time required (min) .5 1

.5x1+x2 +0x3+0x4 =< 3600

Packaging : For packaging they have two machines each working at 8 hr. daily and packs 30 packets in a min.

Milk Type Packaging (seconds)

Gold (x1) 2

Shakti (x2) 2

Taza (x3) 2

Smart (x4) 2

X1+x2+x3+x4= 28800

Sensitivity report:

Answer report:

• Thanks