Organisational Study of KMF

KARNATAKA MILK FEDERATION

ACKNOWLEDGEMENT

This gives me a heavenly delighted pleasure to write an acknowledgement to this project report Because this report is an Contribution of large number of people. Firstly I would like to Thank our Principal Dr.Ajith Prasad sir for giving us this opportunity op portunity to do the project work. I am also Thankful to our HOD Prof. Sharad Desai for his encouragement encouragement and guidance. guidance. I am also thankful to Prof. N.L Guddin for provinding us the Guidelines and constant support throughout the project. I would also like to t o Thank Prof.Vibha Mogali for her guidance. I am Thankful to KMF for giving me this opportunity.I specially specially Thank Mr.Raghuram.R Mr.Raghuram.R for teaching me about the working of all Plants and Products. Finally I am Thankful to my Parents and Friends for their moral support throught the project work.

JSS SMI UG AND PG STUDIES DHARWAD

1


—

INDEX

SL.NO

PARTICULARS

PAGE NO.

01

Introduction

01

02

Company profile

04

03

Introduction of DMU

05

04

History

08

05

Vision and mission

09

06

Function of DMU

10

07

Scope of objectives

11

08

Organization chart

13

09

Production profile

16

10

Department

19

11

SWOT annalysis

48

12

Suggestion

51

13

Conclusion

52

14

Bibliography

53


2


I) EXECUTIVE SUMMARY. In today’s competition world, no business is spared from the competition even the basis need industries like milk industries are facing the problems, so the companies should look at the consumer’s attitude towards their products and if anything goes wrong they should suddenly rectify it. We got an insight observation about the different departments and products of Nandini Milk. Our external Guide Mr. Raghuram R Was kind enough to show each and every process of production of different production and patiently explained it to us. We had a very Enlightening Experience.


3


General information About Diaries

A dairy is a business enterprise established for the harvesting of animal a nimal – mostly milk – mostly from cows or goats or goats,, but also from buffalo from buffalo,, sheep sheep,, horses or camels – for for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned with the harvesting of milk. Terminology differs between countries. For example, in the United States,, a farm building where milk is harvested is often called a "milking States parlor". In New In New Zealand such a building is historically known as a "milking shed" or "milking parlour" (note the different spelling). Sometimes milking sheds are referred to by their type, such as "herring bone shed" or "pit parlour". In some some countries, especially those with with small numbers of animals being milked, as well as harvesting the milk from an animal, the dairy may also a lso process the milk into butter into butter , cheese and yogurt yogurt,, for example. This is a traditional method of producing specialist milk products, especially in Europe. In the United States a dairy can also be a place that processes, distributes and sells dairy products, products, or a room, building or establishment where milk is stored a nd processed into milk products, such as butter as butter or or cheese cheese.. In New In New Zealand English English the singular use of the word dairy almost exclusively refers to a corner shop, shop, or superette or superette.. This usage is historical as such shops were a comm co mmon on place for the public to buy milk products. As an attributive, the word dairy refers to milk-based products, veil, derivatives and processes, and the animals a nimals and workers involved in their production: for example dairy cattle, cattle, dairy goat. goat. A dairy farm produces farm produces milk and a dairy factory factory processes processes it into a variety of dairy dairy products. These establishments constitute the dairy industry, a compon co mponent ent of the food industry. industry.


4


Operation of the dairy farm When it became necessary to milk larger cows, co ws, the cows would be brought to a shed or barn barn that was set up with bails with bails (stalls stalls)) where the cows could be confined while they were milked. One person could milk more cows this way, as many as 20 for a skilled worker. But having cows standing about in the yard and shed waiting to be milked milked is not good for the cow, as she needs as much time in the paddock grazing as is possible. It is usual to restrict the twice-daily twice-da ily milking to a maximum of an hour and a half each time. It makes no difference whether one milks 10 or 1000 cows, the milking time should not exceed a total of about three hours each day for any cow. As herd sizes increased there was more need to have efficient milking machines, sheds, milk-storage milk-storage facilities (vats vats)), bulk-milk transport and shed cleaning capabilities and the means of getting cows from paddock to shed and back. Farmers found that cows would abandon their t heir grazing area and walk towards the milking area when the time came for milking. This is not surprising as, in the flush of the milking season, cows presumably get very uncomfortable with udders engorged with milk, and the place of relief for them is the milking shed. As herd numbers increased so did the problems of animal of animal health. health. In New In New Zealand two approaches to this problem have been used. The first was improved veterinary medicines (and the government regulation of the medicines) that the farmer could use. The other o ther was the creation of veterinary clubs where groups of farmers would employ a veterinarian (vet) full-time and share those services ser vices throughout the year. It was in the vet's interest to keep the animals healthy and reduce the number of calls from farmers, rather than to ensure e nsure that the farmer needed to call ca ll for service and pay regularly. Most dairy farmers milk their cows with absolute regularity at a minimum of twice a day, with some high-producing high-p roducing herds milking up to four times a day to lessen the weight of large volumes of milk in the udder of the cow. This daily milking routine goes on for about 300 to 320 days per year that the cow stays in milk. Some small herds are milked once a day for about abo ut the last 20 days of o f the production cycle but this is not usual for large herds. If a cow is left unmilked just once she is likely to reduce milk-production almost immediately and the rest of the s eason may see her dried off (giving (giving no milk) and still consuming feed for no


5


production. However, once-a-day milking is now being practised more widely in New Zealand for profit and lifestyle reasons. This is effective because the fall in milk yield is at least partially offset by labour and cost savings from milking once per day. This compares to some intensive farm systems in the United States that milk three or more times per day due to higher milk yields per cow and lower marginal labor costs. Farmers who are contracted to supply liquid milk for human consumption (as opposed to milk for processing into butter , cheese, and so on — see milk ) often have to manage their herd so that the contracted number of cows are in milk the year round, or the required minimum milk output is maintained. This is done by mating cows outside their natural mating time so that the period when each cow in the herd is giving maximum production is in rotation throughout the year. Northern hemisphere farmers who keep cows in barns almost all the year usually manage their herds to give continuous production of milk so that they get paid all year round. In the southern hemisphere the cooperative dairying systems allow for two months on no productivity because their systems are designed to take advantage of maximum grass and milk production in the spring and because the milk processing plants pay bonuses in the dry (winter) season to carry the farmers through the midwinter break from milking. It also means that cows have a rest from milk production when they are most heavily pregnant. Some year-round milk farms are penalised financially for over-production at any time in the year by being unable to sell their overproduction at current prices.


6


General information About Diaries

A dairy is a business enterprise established for the harvesting of animal milk – mostly from cows or goats, but also from buffalo, sheep, horses or camels – for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned with the harvesting of milk. Terminology differs between countries. For example, in the United States, a farm building where milk is harvested is often called a "milking parlor". In New Zealand such a building is historically known as a "milking shed" or "milking parlour" (note the different spelling). Sometimes milking sheds are referred to by their type, such as "herring bone shed" or "pit parlour". In some countries, especially those with small numbers of animals being milked, as well as har vesting the milk from an animal, the dairy may also process the milk into butter , cheese and yogurt, for example. This is a traditional method of producing specialist milk products, especially in Europe. In the United States a dairy can also be a place that processes, distributes and sells dairy products, or a room, building or establishment where milk is stored a nd processed into milk products, such as butter or cheese. In New Zealand English the singular use of the word dairy almost exclusively refers to a corner shop, or superette. This usage is historical as such shops were a common place for the public to buy milk products. As an attributive, the word dairy refers to milk-based products, veil, derivatives and processes, and the animals and workers involved in their production: for example dairy cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a variety of dairy products. These establishments constitute the dairy industry, a component of the food industry.


7


Operation of the dairy farm When it became necessary to milk larger cows, the cows would be brought to a shed or barn that was set up with bails (stalls) where the cows could be confined while they were milked. One person could milk more cows this way, as many as 20 for a skilled worker. But having cows standing about in the yard and shed waiting to be milked is not good for the cow, as she needs as much time in the paddock grazing as is possible. It is usual to restrict the twice-daily milking to a maximum of an hour and a half each time. It makes no difference whether one milks 10 or 1000 cows, the milking time should not exceed a total of about three hours each day for any cow. As herd sizes increased there was more need to have efficient milking machines, sheds, milk-storage facilities (vats), bulk-milk transport and shed cleaning capabilities and the means of getting cows from paddock to shed and back. Farmers found that cows would abandon their grazing area and walk towards the milking area when the time came for milking. This is not surprising as, in the flush of the milking season, cows presumably get very uncomfortable with udders engorged with milk, and the place of relief for them is the milking shed. As herd numbers increased so did the problems of animal health. In New Zealand two approaches to this problem have been used. The first was improved veterinary medicines (and the government regulation of the medicines) that the farmer could use. The other was the creation of veterinary clubs where groups of farmers would employ a veterinarian (vet) full-time and share those services throughout the year. It was in the vet's interest to keep the animals healthy and reduce the number of calls from farmers, rather than to ensure that the farmer needed to call for service and pay regularly. Most dairy farmers milk their cows with absolute regularity at a minimum of twice a day, with some high-producing herds milking up to four times a day to lessen the weight of large volumes of milk in the udder of the cow. This daily milking routine goes on for about 300 to 320 days per year that the cow stays in milk. Some small herds are milked once a day for about the last 20 days of the production cycle but this is not usual for large herds. If a cow is left unmilked just once she is likely to reduce milk-production almost immediately and the rest of the s eason may see her dried off (giving no milk) and still consuming feed for no


8


production. However, once-a-day milking is now being practised more widely in New Zealand for profit and lifestyle reasons. This is effective because the fall in milk yield is at least partially offset by labour and cost savings from milking once per day. This compares to some intensive farm systems in the United States that milk three or more times per day due to higher milk yields per cow and lower marginal labor costs. Farmers who are contracted to supply liquid milk for human consumption (as opposed to milk for processing into butter , cheese, and so on — see milk ) often have to manage their herd so that the contracted number of cows are in milk the year round, or the required minimum milk output is maintained. This is done by mating cows outside their natural mating time so that the period when each cow in the herd is giving maximum production is in rotation throughout the year. Northern hemisphere farmers who keep cows in barns almost all the year usually manage their herds to give continuous production of milk so that they get paid all year round. In the southern hemisphere the cooperative dairying systems allow for two months on no productivity because their systems are designed to take advantage of maximum grass and milk production in the spring and because the milk processing plants pay bonuses in the dry (winter) season to carry the farmers through the midwinter break from milking. It also means that cows have a rest from milk production when they are most heavily pregnant. Some year-round milk farms are penalised financially for over-production at any time in the year by being unable to sell their overproduction at current prices.


9

KARNATAKA MILK FEDERATION II) KARNATAKA MILK FEDERATION

The first dairy in Karnataka was started in Kudige in Kodagu district in 1955. Further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To ensure supply of quality germ plasma, bull breeding farm and frozen semen bank are also available. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy cooperative amongst the dairy cooperatives in the country. To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases, three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set -up. The federation giving details of the latest technology in dairy industry etc is published "Ksheer Sagar" magazine monthly.


10

KARNATAKA MILK FEDERATION III) Company profile

Name of the company; Dharwad co-operative. Milk (A unit Of KMF) Producer’s societies union LTD Constitution

:

Limited

Phone

:

2467603, 2468268

Fax

:

(0836) 2468268

E-mail

:

www.kmfnandini.com

Registered office

:

Bangalore

Company registration No

:

1959

& date of establishment

:

3-3-1986

Board of directors

:

elected members-8

Area of operation

:

Dharwad, haveri, gadag, uttarkannad district

Location

:

lakamanahalli industrial Area, dharwad

Department

:

9

Brand name

:

Nandini

Products

:

Milk-Toned milk, Standard milk, shubham Milk,

Date of incorporation

Ex-office-5 By govermant-3

Milk-products-Butter, Ghee, Curd, Ladu.


11

KARNATAKA MILK FEDERATION INTRODUCTION TO DMU (DHARWAD MILK UNION)

Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was established under co-operative act on 3-3-1986 at Dharwad and Gadag, Haveri, Uttar Canara and Dharwad come under its operation. Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under the union. In 1989, the training center, which was controlled by KMF, came under Dharwad Milk Union. DMU was Rs.7 crore Projects of which Government has Rs.2Crore of share capital and authorized capital of DMU is Rs.5crore. DMU formed 551 milk producer's co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada districts. The production capacity of DMU is 2 lack littres of milk per day and also has the capacity to produce 12tones of milk powder, 10tones of butter, and 6tones of ghee per day. DMU is collecting 70 thousand liters of milk per day from its societies and sells 60 thousand liters of milk per day and the remaining milk is used for producing milk products. Establishment:

The Dharwad Milk Union is Co-operative society among the 13 establishments, under KMF: The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area; adjacent to the National Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.


12

KARNATAKA MILK FEDERATION NATURE AND BUSINESS CARRIED:

The Nature of Dharwad Milk Union is that procuring the Milk from societies. And that milk will be bringing through tankers for various chilling centers those, which are near and convenient to various societies. The Union processes the milk and market in urban area through by various agents. The Union providing service to milk producer's technical inputs like veterinary services, seeds, fodder etc. and also by giving training to farmer and also induction program. The Union strengthening of milk cooperative movement, organization of extension activities and the rural development services. The Union also owns and operates the dairy plant cattle feed plant; fodder and bull mother forms, semen collection station, and herd quarter center for animal husbandry activities. The Union also takes research, development and also other promotional activities for the overall benefit of the farmer. The Union providing various product to market like toned milk, standard milk, full creamed milk, double toned milk, homogeneous standard milk, along with cheese curd, ghee, peda also providing. This is the nature and business carried of the Shivmoga milk Union. INFRASTRUCTURE FACILITIES:

Infrastructure facilities in DMU, they have these won chilling center and they can distribute milk with the capacity of covering the 11 routes and the capacity is 1, 00,000 LPD. Other facilities like: 

Security facilities



Canteen facilities



Shift: Three shift per day.



Manual punching card and computer entries will be there


13

KARNATAKA MILK FEDERATION HISTORY.

A group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formed district Gadag and Haveri) and Uttara Karnataka. Further they found out there as a need for a Milk Dairy. They traveled the surrounding villages, educated the villagers about Milk and Milk Products and the benefits they would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge market the Federation decided to setup the Milk Union in 1984, known as the DHARW AD DISTRICT CO-OPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITED Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under the union. In 1989, the training center, which was controlled by KMF, came under Dharwad Milk Union. DMU was a Rs.7 crore project of which Government has Rs.2 crore of share capital and authorized capital of DMU is Rs.5 crore. DMU formed 55 I-milk producer's co-operative societies in Dharwad, Gadag, and Haveri and Uttar Kannada districts. The production capacity of DMU is 2 lakh liters of milk per day and also has the capacity to produce 12 tones of milk powder, 10 tones of butter, 6 tones of ghee per day. DMU is 'collecting 70 thousand liters of milk per day from its societies and sells 60 thousand liters of milk per day and the remaining milk is used for producing milk products.


14

KARNATAKA MILK FEDERATION VISION STATEMENT OF DMU( As stated by DMU) 

Total quality



Honesty



Discipline



Cleanliness



Transparency



Sincerity and dedication



Co-operation free of politics



Sovereignty



Respecting each other's, opinions, ideas & feelings.

MISSION STATEMENT OF DMU(In their Words):

Dharwad Milk Union is committed to provide maximum possible price for the milk supplied by its members and provide necessary inputs to enhance milk production while ensuring economic viability of the Union and is also committed to provide quality milk products to consumers and emerge as one of the top most milk union of the co-operative dairy industry in the country. Functions of DMU:

The main function of DMU is to procure milk from villagers and pay them the right price. 

To educate the villagers about milk and its quality.



To make 'Nandini' as a part of daily life.



To provide good quality of cattle feed, fodder, veterinary aid seeds, etc., to the villagers.



To see that the DCS's are carrying out their activities properly and in an efficient manner.



To see that the milk is brought from DCS's to the chilling centers in the prescribed time.



To look the accounts of the DCS's supervise the purchase process and market the milk and milk products.


15

KARNATAKA MILK FEDERATION Objectives of DMU : 

Providing hygienic and good quality of milk to the consumers.



To build the economic strength of the milk producers in villagers.



To eliminate middlemen's in the business so that the milk producers receive their appropriate share of bread.



To educate the villagers about the adulteration of milk and its harmful effect on the body.



To see that every citizen becomes healthy by consuming good quality of milk.



To make villagers self-viable and build self image. OBJECTIVES of DMU



To develop the quality consciousness among all the producers or employees of the union.



To implement the cost reduction in each stage of collection processing and distribution.



Make every one aware of the every conservation in dairy.



To maximize the customers complaints and achieve customer satisfaction.



To set goals or targets at all levels to achieve continuous improvement.



To train our workman from time to time for exposure to advanced technology for efficient operations.



To provide adequate infrastructure facility for improving the work environment.


16

KARNATAKA MILK FEDERATION DHARWAD MILK UNION

Status

A co-operative society registered under the Co-operative act 1959

Nature of Business

Procuring and Marketing of Milk Production and Sale of Milk Products

Share Capital

3 crores Approx.

Plant Capacity

2 Lakhs Liters / day Milk Powder 12 MT /Day Butter 6 MT / Day Ghee 6 MT / Day

Milk Chilling Centers and Capacity

Gagad

20000 LPD

Haveri

20000 LPD

Hirekerur 20000 LPD

Present Value of Activity

Ron

10000 LPD

Sirsi

20000 LPD

Collection of Milk Sale of Milk

Area of Operation

180000 HPD

80000 HPD

Dharwad, Haveri, Gadag, Uttar Karnataka, Goa Parts of Maharashtra

Board of Directors

Elected Member

8

Ex-Officers

5


17

KARNATAKA MILK FEDERATION By Govt.

3

Total Workers

272 Workers

Location

Lakamanahalli Industrial Area, Dharwad

Department

9

Brand Name

Nandini

Products

Milk Homoginized Toned Milk, Standard Milk, Shubham Milk Milk Products Butter, Ghee, Pedha, Curd, Lassi, Paneer, Milk Powder

Co-operative Societies at 960 Societies Village Level

s


18


ORGANIZATION CHART

Presidents

Director

Director

Directors

(Elected-8)

(Ex-officer-5)

Presidents

Managing director

P&I

Production

Finance

Admin

Security

Marketing

Dy

Dy

Dy

Dy

Sr.

Dy

Manager

Manager

Manager

Manager

Supervisor

Manager

Extension

Q.C

A/cs

Assistant

Officer

Officer

Assistant

Helper

Assistant

Helper

Helper

Workers


19

Jr.Supervis or

Assistant

Helper


NANDINI PRODUCT DETAILS AND RATE

Sl No.

Product Name

(NMP PRODUCTS)

Maximum price

1.

Badam Powder 200 gm Tin/Kg

267-86

2.

Mysore Pak 250 gm/Kg

267-86

3.

Jamoon Mix 200 gm / Kg

223-21

4.

Homoginized milk

33-60

5.

Shubham milk

33-68

6.

Toned milk

29-76

7.

Curd bulk

33-12

8.

Dharwad pedha

192-00

9.

Bulk khova

215-00

10.

Bulk paneer

183-93

11.

ghee

318-18

12.

Milk powder

240-91


20

retail

KARNATAKA MILK FEDERATION PRODUCT – P ROFILES


21



22



23

KARNATAKA MILK FEDERATION DEPARTMENTS. (DMU has Following Departments)



Procurement and Input Department



Production Department



Purchase Department



Finance and Accounts Department



Administration Department



Marketing Department



Quality Department



Security Department


24

KARNATAKA MILK FEDERATION PROCUREMENT DEPARTMENT : This Department collects milk, The raw materials from farmers and other such associates. Flow Chart of Procurement Department:

Manager

Procurement wing

Technical wing

Deputy Manager

Deputy Manager

Assistant Manager

Assistant Manager

Extension officer

Clerks

Helpers


25

KARNATAKA MILK FEDERATION PROCUREMENT AND INPUT DEPARTMENTS

Procurement and input department is concerned with procurement of milk and input i.e., technical facilities. Once a milk societies established the P&I department starts functioning and makes other provisions. Milk procurement process done all the 365 days and two times a day and DMU procuring milk routes will for the purpose of convenience of transportation. DMU making a minimum Rs.8 for cow milk and Rs. 10.50 for buffalo milk. Some times price may vary with quality. Procurement of milk varies from season to during flash season i.e., from September to late December the milk productivity will be high. During summer it will come down. Milk collected from the societies is taken to the nearest chilling centers. Here the Quality I.e., fat and SNE content is checked and confirmed with that of the checklist sent by the society. Then milk is loaded into tankers to be taken to the union. There are nearly 8 chilling centers under the Dharwad Milk Union and about 513 milk societies. Once milk is brought to the union it is rechecked for the Quality and freshness and then down loaded and directed to t he production department. If the milk is spoiled it is brought to the notice of the society immediately. But in case of far away the driver, then the contractor held responsible for the loss, if milk sent by tankers spoils societies, due to the delay. As per the law of the society recommended by the union states that the members should supply milk only to the union and other agency. The extension officer at various chilling centers takes care of this. They keep an eye over the functioning and avoid society milk to any other agency.


26


INPUTS

To upgrade the functioning and expand the productive capacity of each societ y the union provides many facilities. 1. Remunerative price for the milk produced. 2. Animal husbandry and veterinary health care programmed for the member animals. 3. Cross breeding programmers. 4. Supplying powder seeds for animal development. 5. Imparting training to all the members of co-operatives for smooth functioning of co-operatives. 6. Subsidized cattle feed to the members of the society. 7. DMU has 13 Doctors to provide door-to-door service.


27

KARNATAKA MILK FEDERATION PRODUCTION

DEPARTMENT: This department Handles the production

process.

Flow Chart of Production Department

Manager dairy

Deputy Manager Production.

Deputy Manager Production.

Technical Officer Powder Plant

Technical Officer Processing

Operators

Technical Officer Butter & Ghee

Operators

Dairy Workers

Dairy Workers

Helper

Helper


28


PRODUCTION DEPARTMENT

The production department is nerve of the entire organization. The objectives of the production department 

To follow up the production schedule as per the plan.



To maintain the close and co-ordinate relationship with other key departments



To upgrade the technical efficiency of production. Production department is well equipped and has various types of highly

sophisticated machines imported from Sweden and Denmark. Once the milk is received from P & I department, it is first weighed with the help of weighing bowl. Later, it is poured in dump tank. Sample testing is made through lactometer reading and other tests. The fat and SNF content of each sample of milk is accessed the cow and buffalo's milk are separately received and sent to the production section separately through two different stainless steel pipes. Later, the raw milk is passed through plate chiller of variable capacity where it is cooled up to 4-5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 liters capacity. PURPOSE OF CHILLING

This is done to avoid the growth of microorganisms, which are responsible for spoilage of milk and bitter taste. The milk, which is stored in silos, is pumped through pipeline to the balance tank, which helps to maintain the steady speed flow of milk in the Pasteurization machine. In, DMU, there are 2 milk Pasteurization machine and 1 Cream Pasteurization machine.

PURPOSE OF PASTEURIZATION

Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in Pasteurized milk silos and then sent to pre-packing section. Packing is done in 500ml and 1000ml and stored in cold storage at 7°.


29


PASTEURIZATION OF CREAM:

The milk in bulk is taken to the cream separator. Here, the ,cream is separated. The cream is passed through cream Pasteurization Unit. This cream is sent to Butter Section. The milk with no fat is skimmed milk. This skim milk 'is pumped back to Pasteurization Unit and heated to 72° using steam and chilled to 4° using chilled water and stored silos. This skimmed milk is sent to powder section. The pasteurize cream is mixed in portion to pasteurized milk. CURDS:

Raw milk is heated to 90° and allowed to cool to 30°. Later culture is added to it and packed; the curd is formed in the packet itself. It is stored and packed in 200gms and 500gms.

BUTTER:

The cream, which is stored in cream refining tank, is taken to the churning section where it is churned. Here butler fat and butter milk are separated. The vacuum pump removes excess of moisture and butter comes out of continuous butter making machine (capacity - 1500 kgs/hour). Butler is packed in 100, 200 and 500 gms and also in 10, 25 gms, these are stored in deep freezer room with temperature - 22° and if the order of salt butter they mix the salt water with cream and other process is same

GHEE:

There are 2 Ghee Boiler of capacity 1500 kgs/batch. A Butter of 2.5 tons is melted and is brought to Ghee Boiler. Here it is heated to 116-117 degree Celsius for 15 minutes so that the residue is allowed to settle down and Ghee is passed to setting tank through clarifiers. Later Ghee is allowed for cooling (at 30°-40°) and packed in Tin of Liter, 500 ml and 200 ml of pack and kept in the cold storage. PANEER:

If there is excess of milk, then, Paneer is been made. The milk is heated to 90 0


30

KARNATAKA MILK FEDERATION for 15-20 minutes. Glacial acetic acid is added to milk and then milk is strained through fine muslin cloth. The solid potion is retained and is put in water and then it is put in chilled water and left overnight. Later it is packed and stored in cold storage. MILK POWDER:

When there is excess of milk. Milk powder is made. The capacity of the powder plant is 12 tons. There are two sections – Evaporator and Spray Drier through which milk is converted to Milk Powder. In Evaporator, milk is boiled for 55° at high vacuum. Milk is concentrated to drier 40-45% of milk is solid, moisture is removed and the milk power obtained consists of 4% moisture. PEDHA:

Dharwad is famous for its delicious Pedha. DMU has separate Pedha section. About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the milk is semi-solid, later sugar and other ingredients are added and stirred co ntinuously on low flame. Later it cooled and it is shaped in small balls and packed. Input per day:

1. Milk processed is 70-75 thousand liters. 2. 5 to 6 lakh littres of water. 3. 10,000 units of electricity. 4. 5 to 6 tones of coal. 5. Generator in case of electricity failure out manpower.


31


PURCHASE DEPARTMENT: Its responsibility is to look after the purchasing Process.

Flow chart of purchase department

Purchase officer Purchase officer

Purchasing superintendent

Asst. purchase officer

Helpers


32

KARNATAKA MILK FEDERATION PURCHASE DEPARTMENT

As usual in any organization this department is engaged with purchasing of goods ordered by the stores department. Dharwad milk union to maintain smooth functioning of all the departments to meet the requirements at a right time. FUNCTIONS OF PURCHASE DEPARTMANT 

Receiving indent (requirements) from various departments.



Purchase material materials.



Calling tenders for vehicles and sending quotation.



Maintain comparative statements of all suppliers i.e., terms and conditions.



Sending the items purchased to quality control section for quality

checkup. 

Returning the defective goods to respective suppliers for replacement.

In making purchase decision the opinion of 1.

Finance officers

2.

Audit department

3.

Audit department will be considered.

4.

Then finally MD approval will be taken.

This department has liberty to purchase goods upto worth Rs. 50,000/- beyond this board is concerned for instance like machinery which cost lakh of rupees is a major policy decision hence are left the board of Directors.


33

KARNATAKA MILK FEDERATION FINANCE DEPARTMENT: It handles all the Finance matters.

Flow Chart of Finance Department

Deputy Manager

Asst. Manager

Asst. Accounts Officer

Asst. Accountants


34

KARNATAKA MILK FEDERATION FINANCE AND ACCOUNTS DEPARTMENT

Accounts department is one of the important departments for healthy and smooth running of business. Functions of finance department and Accounts department

1. Preparation of financial statements. 2. Preparation of procurement and transportation charges bill. 3. Payment of water bill, electricity bill and miscellaneous. 4. Payment of supplier’s bill. 5. Payment to farmers for procurement of milk. 6. Maintaining account of sale of milk and milk products. 7. Preparation of Budget. DMU Follows to types of auditing:

1. Pre-Audit System - done by Finance and Account Department every year. 2. Statutory System - Done by private charted accountants every year.


35


ADMINISTRATION

DEPARTMENT:

It

looks

after

the

general

administration of the company

The department has the following structure

Deputy Manager

Asst. Manager (Board) Asst. Manager (Personnel)

Admn Superintendent

Admn. Assistant

Admn Superintendent

Time

Canteen

The Administration Department controls the overall functioning of

Security

the organization.

The organization consists of the following three levels Managerial cadre includes Managing Director, Deputy Manager and Asst. Manager Supervisory level included technical officers and supervisors Workers levels includes labors helpers The Department also handles Canteen, Security and Time Keeping


36


CANTEEN:

There is a Canteen in the premise itself. The employees are provided lunch, Tea etc., at reasonable rates. The Canteen is handled by the Canteen In charge. TIME KEEPER:

This Department records the working hours of the employees. The time machine shows the entry time and exit time of each employee. The workers divided into different shifts control the working of the Department. Each employee is given a Punch Card, whenever an employee enters the premise he has to punch the card in the time machine and before living the premise he has to do the same. Based on this attendance, Canteen bills are charged, wages are fixed and deduction are made. SECURITY DEPARTMENT:

Dharwad Milk Union occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three shifts. All the vehicles are checked before entering the premise. The departments is also maintains separate registers like Store-in Register, Attendance register etc. STYLES

The Styles of the organization is said to follow the bureaucratic type that is the management cadre follow the bureaucratic type of administration. The fact is that for a manufacturing firm like the KMF, Dharwad this type of administration is necessar y. The Indicators of the Style are: 

Follows Orders, rules and procedure



Is always Reliable, Dependable



Watches Details\Prefers to write out Communications



Is Rational, Logical, Self-Controlled, Fair and Firm.


37

KARNATAKA MILK FEDERATION STAFF

The staff deals with the various personnel Policies followed by the Organization. Below are given the personnel policies followed by the Organization. PERSONNEL POLICIES:

There are around 383 employees working in Dharwad Milk Union. There are various policies followed by the Union. The Human Resource Department is the in Dharwad Milk Union Works as a sub Department of Administration Department. RECRUITMENT & SELECTION:

Due to registration, termination, retirement and transfers, in the concerned department head will give the manpower requirement along with the job description according the HR department arranges for recruitment. The manpower sourcing is done through advertisement, manpower consultant, employment exchanges and personnel reference and available data bank. PROMOTION AND TRANSFER

Promotion is solely on the basis of sensitivity and experience. Transfers are always accompanied by promotions. INDUCTION:

After an employee is employed in DMU, he\she has to be made familiar to the union and also known the objective, value, functions and the operations. This helps the employee to interact with senior staff members from various departments. TRAINING:

The Union emphasizes on training the employees. Most of the training given to the employees here are On-the-Job training and few Off-the-Job Training. 

Procurement and Technical Input Training (NDDB)



PG Diploma in Rural Management


38

KARNATAKA MILK FEDERATION 

Basic Computer Applications.



Data Base Administrator



Finance Training for non-Finance Officer



Co-Operative management Training Programs



Clean Milk Production Training



Maintenance of Record and Auditing Most of the Off-the-Job Training includes training programs in Anand, Erode

etc. SALARIES AND EMPLOYEE BENEFITS Gross Salary:

A regular staff member in the Union will have a gross salary consisting of Basic salary, Dearness Allowance, CCA, House Rent Allowance, and Conveyance Allowance. There are special benefits given to few employees, like: Shift Allowance:

There are separate allowances given to employees working in different shift like: 

First shift Allowance



Second shift Allowance



Third shift Allowance

Heat Allowance:

Separate allowance is given to those workers working near boilers and other equipments. Cold Allowance:

Separate allowance is given to workers working in Defreeze or cold storage. Further there is Uniform code for every employee. The Union provides 2 pair of uniforms to the employees every year


39

KARNATAKA MILK FEDERATION House Interest:

The employee working in the union can take a loan from other external sources and the Union will pay half the interest o n the capital per month. Other benefits:

Canteen subsidy, Festival Advance, medical Allowance, surrender Leave. Skills

The skills here refers too the various skills the workers have here the workers are further divided into three categories. This first category contains the people who are in the top-management level the second categor y consists of the supervisor's office assistants etc. The third category consists of the supervisor's office assistants etc. The third category consists of the workers at the operational. The first category consist of the people who are in the decision making process in lO.1F these people are highly qualified few Deputy Managers are to industries like IRMA, Anand dairy for Training. The second category is related to office work and fieldwork. These people are also trained in computer Applications, secretarial skills, accounting skills etc. The third level people consist of the workers who are actually into the operation these people are also trained into fields like checking the quality of milk processing packing etc. Shared Values

These shared values include the mission and vision of the organization. It also includes objective values. Environment Policies etc. KMF, Dharwad has the mission to provide a lucrative market for farmers to sell their milk and to provide best milk to urban customers. Its Vision is to produce more milk and milk Products in the forthcoming years. KMF, Dharwad also follows environment Policies. The plant doesn't pollute the environment. The organization has its own Effluent Treatment Plant in its own Premises.


40

KARNATAKA MILK FEDERATION MARKETING DEPARTMENT: It looks after the Marketing of the Products.

Flow Chart of Marketing Department

Marketing Manager

Deputy marketing manager

Technical Officer

Marketing Superintendent

Development Officer

Vanshroff

Development Officer

Marketing Assistant Vanshroff

Marketing Assistant


41

KARNATAKA MILK FEDERATION MARKETING DEPARTMENT.

The marketing department of DMU is considerably extensive which covers an Area viz., North Goa, Uttar Kannada district, Haveri, Gadag, Hubli and Dharwad. Marketing of milk and products is done under bra nd name “Nandini”. Except loose milk other products are marketed by KMF, the marketing agency. Due to perishable nature of products the greatest responsibility is over marketing department to all the products before losing its quality. Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to co-operative organization and other benefits received from the state government. But after July 21 st 1991 the scenario totally changed, new private diaries started grounding like mushrooms with entrance of private diaries the DMU facing a tough competition resulting into major loss of market share gradually over the years. Today DMU has only 23 % of total market share. DMU operates in 17 cities/ towns having a total population of 1.05 million. The closest competitors with regard to market share quality of milk, price and goodwill are, 

Local vendor



Arogya



Sphurti



Datta



Sri Krishna



Gopal



Local brand milk like Navalur dairy milk.


42

KARNATAKA MILK FEDERATION PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU

1. To prepare the marketing plan at the beginning of every year, taking into consideration

the

demand,

sales,

production

capacity

and

customer

performance. 2. To promote milk and milk products t hrough medices. 3. To study competitors products and their strategies. CHANNEL OF DITRIBUTION OF DMU

Channel of distribution adopted by the organization plays a very significant role in improving the market efficiency to promote the product and to meet demand. The DMU has required agents and own sales counter in 4 districts. (i.e., Dharwad, Haveri, Uttar Kannada and Gadag).


43

KARNATAKA MILK FEDERATION Dairy Cycle

MAIN DAIRY

AGENTS

OWN SALES PERSONS

CONSUMERS

CONSUMER


44

KARNATAKA MILK FEDERATION MEDIA OF MARKETING :

1. News Papers 2. Magazines 3. Radio 4. Wall paint 5. Hoardings 6. Pamphlets. SALES PROMOTION:

Sales promotions plans are done to increase volume of sales within a short time by providing discount, incentives, eat. This is a promotional tool designed to generate a demand for a produce. DMU have practiced promotional tools for agent’s promotion by providing provision and facilities to increase sales. PRODUCTS OF DMU: 1. Milk

a. Nandini Toned Milk b. Nandini Standard Milk c. Nandini Shubam Milk 2. Milk Products

a. Curd b. Lassie (Sweet and Masala) c. Paneer d. Peda e. Khova f. Ghee g. Butter h. Mysore pack 3. Milk Powder


45

KARNATAKA MILK FEDERATION SALES ACCOUNTING

This section of sales department is concerned is concerned with the accounting work of the sales. They keep a daily record of the collection, default by the agents, other records related to sales. When demanded quantity is delivered in the morning, a bank Chelan is sent to the agents. The agents should remit the amount by evening to any of the nearest bank to the ledger in case of his default the amount is entered into the ledger against him. The daily turnover of milk and milk products are around 5 lacks. Out of the remaining 2 bank chellans one is sent to the bank, and the other to the finance department. The consolidate records for each product is sent to the financial department. Weekly DMU has certain restriction with regard to pursue an independent pricing policy, marketing strategies to suit the local environment and conditions.


46

KARNATAKA MILK FEDERATION QUALITY DEPARTMENT : It responsibility is to keep a check on the quality of the Product.

Flow Chart of Quality Control Department

Deputy Manager (QC)

Assistant Manager

Chemist Grade 2 & 3

Dairy Workers

Helpers


47

KARNATAKA MILK FEDERATION QUALITY CONTROL DEPARTMENT:

A qualified Q.C officer is in charge of this section which works in all the three shifts. The main of this department is to see and check the quality of milk and milk products produced in the plant. The activities of this section in brief are as listed below: 1. Tanker milk- fat, snf, temperature, acidity, cob, and adulterants.

2. Can milk- organoleptic, fat & snf of society samples and cob Of doubtful cases

3. Raw milk silo - stock check at beginning and end of shift. temperature, fat, snf, clr, and acidity

4. pasteurized milk silo- fat , snf, mbrt, phosphates, temperature and keeping quality 5. Butter-fat, curd, moisture, salt, yeast & mould, coli form count. 6. ghee- moisture and free fatty acid 7. peda- moisture and total solids 8. Powder- SNF, Moisture, Burnt Particles etc 9. material testing- chemicals and packing materials 10. Water- hardness, ph, alkalinity, total dissolved solids of raw, soft and boiler blow down water. There are various tests conducted by the officer in charge as well as the assistants to meet this requirement. If any product does not pass through the quality standard then the product is rejected. Even before dispatching Products undergo testing and it is only after the approval of the quality department that the goods are dispatched.


48

KARNATAKA MILK FEDERATION Test conducted at DMU:

When the milk arrives at DMU, at the reception center a panel of wellqualified persons in a laboratory tests the quality and quantity of milk. There are number of tests carried, some of them are as follows: 1.

Clot on boiling (COB) test

2.

Alcohol test

3.

Taste

4.

Flavor

5.

Acidity

6.

Corrected lactometer reading (CLR)

7.

Gerber method for fat test.

8.

Milk-tested method

9.

Moisture test

10.

Solid not fat (SNF) test.


49

KARNATAKA MILK FEDERATION SWOT ANALYSIS

Strengths

1. Nandini enjoys good brand image. 2. Large procurement base. 3. Huge infrastructure for processing. 4. Competitive prices. 5. Product dairies range of product. 6. Wide distribution network leads to regular and timely supply. 7. Milk processed is local milk, which reduces the tr ansportation cost. 8. It enjoys highest market shares in the packed milk segment.

Weaknesses

1. Perishable commodity 2. Lack of professional manpower. 3. Bureaucratic method of functions. 4. Lacking quality consistency. 5. Less buffalo milk. 6. Inadequate sales promotional activity. Due to bad smell that persists causes low sales.

Opportunities

1. Huge market demand 2. There is scope for developing in new area. 3. Availability of buffalo milk-improves market milk quality. 4. Predominant of loose milk segment-divide appropriate strategies.


50

KARNATAKA MILK FEDERATION Threats

1. Increase of competitor's milk vendors, unorganized sector. 2. Flexibility in commission structure. 3. No entry barriers for private players. 4. Low level of consumer awareness. 5. Persuade benefits of competing brand. 6. Findings



Nandini products have a good brand image.



Pricing strategies of Nandini is appreciated by its customers



Proper training programs are going on from few days past.



Trade unions are inactive



Nandini is started with customers contact programs in order to get first hand feed back from its customers and also to its product

SUGGESTIONS.

1. More advertisements can be given to the products especially for newly introduced products in print media, which can attract more consumers. 2. DMU should hike the commission of its agents or provide clarification for providing same commission even after hike in price. 3. They should provide clear clarification to the consumers that the hike in price is fair by using tele media. 4. Increase the quality of package so that it also clears agents’ complaint and also reduces damages / loss. 5. More security is required within the organization.


51

Organisational Study of KMF

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