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1.1 1.2 1.3 1.4


scope of the study objective of the study limitations of the study research methodology

2.1 2.2 2.3 2.4


Co-operative movement in India Co-operative movement in Kerala Industrial co-operative societies Dairy co-operative in India

CHAPTER-3 COMPANY 3.1 certification received

3.3 3.4 3.5 3.6 3.7 Commercial units


Organizational chart-MRCMPU MRCMPU Kannur dairy Growth and development

3.8 3.9

Quality policy Mission Objectives


4.1 4.2 4.3 4.4 4.5 4.6 4.7

Procurement and input department Production department chapter Marketing department Personnel department Finance department Maintains departments Stores department Quality control departments.









I would like to thank god almighty for enabling me to complete this project work successfully. I would like to thank miss to conduct this organizational study. for having provided me with the opportunity

I express my sincere gratitude to our beloved principal for her continued and un falling support in all my academic period. I also express my immense gratitude to miss M Priya faculty and project guide JOHN COLLEGE, Bangalore who provided total able guidance in planning this study. My sincere thanks to all members and staffs of MBA departments for their guidance support. I wish to thank especially Mr. Account officer and Mr. Marketing officer and also other members of Milma kannur dairy who have helped throughout my project work. T



I hereby declare that this project report titled AN ORGANIZATIONAL STUDY ON MILMA KANNUR DAIRY has been prepared by me under the supervision of Miss M PRIYA faculty, T John College, affiliated to Bangalore University in partial fulfillment of the requirement of the award of the Masters Degree in Business Administration during the Academic year 2008-2010 I hereby declare that this Project Report has not been submitted to any other University for the award of any other degree, fellowship, associate ship or any other similar title.






Milk occupies a number position in Indias diet. According to nutrition advisory committee of Indian council of medical research a balanced diet for an adult Indian should include ten ounces of milk per day. Most of milk produced in India is from rural areas, farmers had a difficulty to take it in to the city. The small farmers faces a number problems such as in adequate transport facility ,non availability of veteniery services, and absence of proper system of processing and marketing of milk. The production of the milk is done rural areas by small marginal farmers who find it difficult to market but the profitable market is in urban areas. The system of processing, preserving and marketing the milk in villages seem to be a problem so in order to solve this problem co-operative milk supply societies and milk unions have been established. Government of India launched a dairy program called flood program called with National Dairy Development Board (NDDB).the main aim of the program was to organize milk producers co-operatives in several probable places of India taking the kaira district (ANAND) co-operative milk producers union is (AMUL)of Anand , Gujarat as the model with the above object in the view. The diary societies in the Gujarat are properly known as white revolution..NDDB has now Indias 1,17,575 village dairy co-operatives federated in to 170 milk union and 15 federations procured an average 25millions liters of milk every day.12.4million framers are presently members of village dairy co-operatives. All the above mentioned information leads to the conclusions that in the absence of proper machinery to collect and supply milk, milk producers existence in dangerous situation. This lightened the path of establishment of MILMA.


Milma is one of the most brands in milk industry of Kerala having a rigid organizational structure carrying out various managerial functions. And also milma is in prominent position in the milk market of country by adopting various marketing techniques and professional management system in this co-operative union. So the study is mainly concentrated to know how these marketing techniques and management system are applied in practice And what are the assistance providing the various department in this union to achieve their organizational goals. The study also aims to giving suggestions which can help them to improve market share.


To study the organizational structure of Milma kannur dairy To get fairly acquainted with professional work culture To understand the industrial practice To find out various managerial process handled by milma To study the various functions of each department. To identify the strength and weakness of workers an organization. To study how the theoretical knowledge is made use in real situation


The time is critical limitation factor in this study Most of data required is kept in head office The unwillingness to disclose all the information from certain departments The study includes all limitation since there is no structured questionnaire form of research.

Lack of proper experience on the part of researcher in conducting such studies in the past.


Duration of the study The duration of the study was 6 weeks from 26-06-2009 Data collection method The collection of data refers to a purposive gathering of information relevant to the subject matters of the study from the units under investigation. The method of collection of data depends mainly upon the nature, purpose and scope of enquiry. Primary data Primary data are those which are collected for the first time and it happens to be original in nature. The primary data were collected mainly through,

Personal interview with managers Interaction with workers

Secondary data The secondary data were obtained through, Company journals Company websites Magazines Company annual reports



Co-operation means working together jointly. It implies living, thinking, and working together. All organization of the society ranging from family to nation are built upon the strong foundation of the co-operation.the workers co-operation in their activities should be guided by the principles each for all and all for each and show honesty in their dealings. It is a joint action joint possession and management. At present the word co-operation go beyond in its general concept working together. In its technical sense it denotes a special method of doing business and it also stands for deliberate organization of human being for the attainments of their common economic goals. 2.1 Co-op movement in India: The co- operative movement in India in the last decade of 19th century with two objectives in view, i.e., to protect farmers from the hands of private money lenders and to improve their economic condition. It introduced as a government sponsored movement started after India became freedom. Within two decades of independence the membership of primary societies had increased four times while share capital and working capital had increased 23 and 31 times respectively. Madras province was the birth place of this movement. In 1904 on the basis of Edward law committee the first co operative society act was passed. There were only formed credit societies according to this act. With the reforms of act 1919 co operative movement entered another phase of expansion. By this act a co- operation become provincial subject and the provinces and princely state made therere own acts. 2.2 Co-operative movements in Kerala: The Kerala state was formed in the year 1956. At that time two different laws are existed. Travancore Cochin co-operative societies act and madras co operative societies act. The Kerala government passed the first co operative act in 1969 which came in to force on 15th may. The co-operative societies in Kerala are divided in two are Agricultural societies and Non agricultural societies.

2.3 Industrial co-op societies: Industrial co-operative societies are formed by small producers and artisans and craft men to undertake small scale cottage industries on co-operative basis. There are also known as producers co-operatives. They are formed with the objectives of eliminating the capitalists class from the system of industrial production. A number of industrial have been formed in India in the handloom industry, coir industries, and certain village industries. The industrial co-operative in under developed countries have been organized with mainly two objectives-social and economical. from the social point of view he industrial co-operative safe guard the interest of the poor section of the community against exploitation of the capitalists lead to the capitalists., lead to the dispersal of wealth and create opportunities for the equalization in the distribution of wealth. From the economic point of view they generate new incomes, increase employment opportunities, argument productive capacity, enhance competitive ability of the poorer section of the society and accelerate the rate of the capital information in the country. The village and small scale industry are providing an independent as well as subsidiary occupation to a sizable proportion of rural and urban population. The lack of interest on the part of the government was the most important factor contributing to the decline of these industries. 2.4 Dairy co-operative societies In India: Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge in the practical purpose. During the pre independence period the dairy co-operative movement was limited to a few pockets of Calcutta, madras Gujarat and Bangalore. The most notable of this venture was the kaira district co-operative milk producers union limited of anand Gujarat. The total membership of these societies is more than 70000.but after the independence the national government took initiative in setting new dairy co-operatives in many parts of the country. In 1965 National Dairy Development Board (NDDB) was set with the increasing demand of milk especially in urban areas as well as developing rural economy through the enhancement of milk production of the country.

In 1970the national dairy development board took up, operation flood programmers in order to organize milk producers co-operatives in several probable places of India taking the Anand co-operative milk producers union limited.(AMUL)of Anand, Gujarat as a model with the above object in view. The major success of this mission was achieved through the World Bank financed operation flood, which lasted for 26years from 1970 to 1996 and was responsible for making India as worlds largest producers of milk through the combination of energy and wisdom of farmers and combination of effective professional management. NDDB has now integrated 96000 dairy co-operative called as the ANAND PATTERN, linking the village society to the state federation in three tier structure. The dairy sector India has shown remarkable development in the past decade and India has become one of the largest producers of milk and value added products in the world. The dairy sector has developed through co-operative in many parts of the country. During 1997-98 the state hade sixty milk processing plants with an aggregate processing capacity of 5.8 million liters per day. In addition to this processing plants123 government plans and 33 milk chilling plants operate in the state. Maharashtra now regularly exports milk in to the neighboring states. It has also initiated a free school feeding scheme benefiting more than three million children from over 19000 schools all over the states. The Kerala state government has implemented a project called as ksheeradhara with the object of making of state as independent milk supply state. The ksheeradhara would provide for an artificial insemination regime using frozen premium bull sperm samples.



The Kerala co-op milk marketing federation (KCMMF) popularly known as MILMA was set up in the year 1980 with head office at Trivandrum, as an implementing agency for operation flood (a dairy program which was launched in 1970under the sponsor ship of national dairy development board (NDDB).KCMMF is an organization of farmers and they are the producers of raw milk, and share holders. The KCMMF is the apex body of all the Anand pattern co-operative societies (APCOS) in the state. APCOS are organized in the three tire structure, the basic unit of the organization the primary dairy co-operatives. Those who are the actual dairy farmers are the only entitled to become members of the society. The president of APCOs is elected form the general body meeting. The elections to the post of APCO are held on once in fifth year. The main activities of these societies to collect milk from all its members ensure that the milk sent to the chilling centers and dairies in the time, channel subsidized cattle field for the farmers etc. Each primary co-operative society is an autonomous self governing organization with its own board of directors elected among the farmers. The primary co-operative societies unified in regional levels called regional cooperative Milk Producers Union. At present there are three regional units. Ernakulum regional co-operative milk producers union (ERCMPU) covers the district of Kottayam, Idukki, Ernakulum, and Trichur. Trivandrum regional co-operative milk producers union (TRCMPU) covers the district of Trivandrum, kollam, Alapuzha, Pathanamthitta. Malabar co-operative milk producers union (MRCMPU) covers the districts Wayanad, Kasargode, kannur, Palakkad, Malappuram and Kozhikode. Regional co-operative milk producers union provide various input like regular vet nary care and the P&I staffs instinct farmers on improve practice of cattle management and fodder production. The union collects the milk from primary societies process it in the dairy run by them and marketing their product both inside and outside of the state. The motto of organization of the people by the people and for the people is the foundation of three tier system. At the village level it is APCOS.The village level APCOS are organized

at regional level as regional co-operative milk producers union. These unions are federated at state level to form state federation that is Kerala co-operative milk marketing federation. 3.1 CERTIFICATION RECIEVED All the dairy milk chilling plants and procurement and input unit under the union are certified for ISO 9001-2000 and AGMARK.

3.2 TRINING CENTERS Milma started an orientation program in a rented building in 1984 at Edappally in Ernakulum district. At the initial period NDDB came forward to help Milma in providing financial assistance and grant for meeting training centre expenses. At 21-1-1992 Milma established and started functioning a fully fledged training centre with hostel facility in the land adjacent Trichur dairy under North Kerala Dairy Project phase -1 and Swiss Development Co-operation. It provided training course for presidents, secretaries, milk testers, milk collectors of Anannd Pattern Co-operative Societies, Milma agents and Milma staffs. 3.3 COMMERCIAL UNITS Alapuzha dairy is directly managed by KCMMF as a CENTRAL PRODUCT DAIRY. An aseptic packing section and milk powder factory are also established in the dairy compounds which are only of its in Kerala. Facilities in milk powder factor are made for the production of skim milk powder, whole milk powder, baby foods .Milma has a Central Product Dairy (CPD) was commissioned on 1987 with a capacity of 60000 LPD.






Trivandru m



Pathanamth itata Idukki Trichur


Ernakulu m







3.5 MALABAR REGIONAL CO-OPERATIVE MLK PRODUCERS UNION This is one of the regional co-operative milk producers unions processing and marketing fluid milk and other milk products in Kerala state. The area of operation is in six northern districts Palakad, Malapuram, Kozhikode, Wayanad, Kannur, and Kasargode with its head office at Peringulam near Kunnamangalam, at the distance of 15 km from Kozhikode city. MRCMPU was registered on 29-06-1989 and started functioning on 15-01-1990.from 15-01-1990 the administrative committee constituted by the government was governing the organization and from 16-04-1993 MRCMPU has been governing by an elected board of directors .Before the federation of MRCMPU, Kannur and Palakad dairies were managed by KCMMF.

3.6 KANNUR DAIRY The kannur dairy under MRCMPU is situated in Pallikunnu, Kannur was inaugurated on august 30th, and 1979.the MRCMPU took over the kannur from KCMMF on 1-061990.the dairy manufactures milk, ghee, and sambaram. Now has the capacity of processing100000 LTR milk per day. Turnover of the dairy increased to 9.34%and 10%incerase in the sales up at the end of March 2007-2008. 3.7 GROWTH AND DEVOLEPMENT Milma has concentrated on infrastructure development with financial assistance from NDDB. As on the date there are ten milk processing plants with a combined capacity of 9.90 lakh per day. There are14 milk chilling plants scattered over to state. The milk power plant is set up in Alapuzha having production capacity of 10 MT per day. There has been

increase of 5000 LTRS milk sales by introduction of homogenized milk also production capacity has reached 100000LTR per day. 3.8 QUALITY POLICY MRCMPU is committed to provide consistently safe, hygienic and healthy milk and milk products to achieve and enhance customer satisfaction. Milma has got the market leadership by achieving quality and economy in all their activities adopting quality management system.

3.9 MISSION The mission statement of MRCMPU is as follows: To bring about socio economic development of farmers on a suitable basis and providing quality milk and milk products to the customer at a reasonable price. The above statement shows the aspirations of MRCMPU and its determination to achieve the mission. When we look in to the various activities of MRCMPU it is good alignment with mission statement. 3.10 THE OBJECTIVES

To channelize marketable surplus milks from the rural areas to urban deficit areas to maximize return to the producer and provide quality milk and milk products to the consumers.

To carry out activities for promotion of production, procurement, processing, and marketing of milk products for economic development of the community. To buildup available dairy industry in the state. To provide constant market and state price to the dairy farmers for theier products

The name MILMA represents 2100 primary milk co-operative societies 7.5 lakh farmer members Three regional co-operative milk producers union. 11 dairies capable of handling 9.90lakh litters of milk per day Fourteen milk chilling centers Two cattle feed plants with cumulative capacity of 500MT per day One milk powder plant of 10mt per day A well established training center 5200 retail outlets Over 32000 people working either directly or indirectly for MILMA Serves a million of consumer day in day out.



Milma has different departments, which control different functional activities of the organization. Each department has one departmental head that has the ultimate control over the departments. The various departments are: 5 Procurement and input department 6 Production department 7 Marketing department 8 Personnel department 9 Finance department 10 Maintains departments 11 Stores department 12 Quality control departments.



Officer in charge

Senior Superintendent

Junior Superintendent

The procurement department comes under the direct control of the head office at Kozhikode. The department is mainly concerned with organizing and supervising APCOS through the field level activities as the functions related to the production enhancement, procurement of the milk and input supply to the societies and farmers. The P&I departments arranges milk procurement from APCOS through milk routs to its dairies and milk chilling plants o annual contract basis. There are which

milk collection routs and

distribution routs of

routs collection and distribution routs are linked to reduce costs main function Cattle feed distribution Artificial insemination Comparative development camps Giving insurance for both farmers and cattle.

other than this as follows,

The main objective of the procurement and input department is to promote and strengthen the dairy co-operative network to ensure sustainable socio economic development of dairy farmers by providing effective support system for profitable production and procurement and to take up other activities so as to achieve objective of the union. There are seven P&I units in the union. The p7i units are monitored from the head office .there are 14 officers and 29 supervisors in the P&I departments .Under each P &I department there are 3-6 P&I supervisors and an officer in charge who is the head of the unit. At present there are officers and supervisors in the department.

The ISO quality objective of procurement departments are

Starting and stabilizing of newly formed APCOS Increase and sustain milk quality Support farmers to reduce production cost Make APCOS vibrant development co-operative organization Monitor procurement cost by efficient organization of milk rout Function as an effective communication channel between union and APCOS

4.1.1Following are the extensional activities of the department

Institution building effort Institution building effort (IB) model societies with strong institution base will be created in training, knowledge and skill improvement of the staff and management of the dairy co-operative societies.

Women cattle care program:A women cattle care program is usually implemented as a 3 year package. As per the strategy developed by the union, a women promoters selected and placed in a society is engaged for three years. Training women groups in villages by a trained woman promoter. About 100 women promoters are working now. As on31-3-08 there are 18 women promoters working and these 18 promoters would be trained and retrained till the competition of three year term. Quality assurance program All the 856 societies supplying milk to the union, including traditional societies , including traditional societies would be cover under the quality assurance program(QAP).As the result of intensive quality assurance program implemented at the field level and continuous monitoring the compositional quality of raw milk had improved from the level from 4.15%fat and 8.38%snf to 4.16%fatand 8.41%snf.the improvement in quality of raw milk as shown had helped the union to sell quality milk, apart from financial gain. Union programs Co-operative development program This program aims to sensitize the farmers and create ownership and belongingness feelings among the members of the co-operative societies. Women managing committee, members and staffs would be trained under this program. Feed and fodder program In order to support the dairy farmers to economize milk production, the union has been providing balanced cattle feed to the dairy farmers on no profit and no loss basis through the diary co-operative societies. Artificial insemination programs: In order to get good and healthiest cattle to make more production MILMA has been providing artificial insemination centers on in needed place and arranging training for farmers.

Ksheera Karshaka Suraksha Scheme Milma has started the insurance program known as Ksheera Karshaka Suraksha Padathi (KKSP) for the farmer members, non members, dependents and society staffs under tie-up with new India Assurance Company. The insured is covered for accidental death and permanent total disability. Reward to the best farmers and APCOS The best farmers and societies at the district level and the union level would be selected and rewarded a sum of RS 2000is awarded at the district level and RS 5000 at the union level. Scholarships A scholar ship for the higher education is providing from Milma to the wards of the farmers. 4.1.2 DSC BASED ACTIVITIES Testing chemicals Acid and alchahole for milk testing would be supplied to the societies as a grant in under IDDP (Intensive dairy development program). The EDTA powder, emulsifier and antifoaming agent required for milk testing with electronic milk testers would also be supplied for free cost. Milk cans Milk cans had been supplied to the societies under IDDP and under CMP (centrally sponsored scheme) during 2007-08. Group gratuity insurance A group gratuity scheme for the employees of APCO societies was started during December 04 in association with LIC of India. Malabar regional employees fund MRCMPU has made a provision of 2 lakhs during the year 2008-2009towards the initial contribution of the fund.

Milk procurement plan The milk procurement would be increased by 10% till 2010and will be enhanced to 444000 LTR by the year is expected that the union would collect milk from 125

new societies by the year is e4xpecte that new societies would contribute 2000LTRper day and exciting societies about 424000LTR per day by 2009-10.

4.1.4 Procurement and sales 1991-2009 YEAR MILK PROCUREME 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 NT 56873 83383 106742 128532 138766 141966 172831 180615 217342 225997 228066 229987 241584 273373 308986 325035 320201 350831 MILK SALES(LTR S) 72014 82524 102920 119805 144593 159835 167430 177812 181099 197165 201714 215095 231600 242532 253828 277631 302267 319579 GHEE SALES(LTRS) 21556 22638 29407 34836 36778 40250 40040 43195 58026 53462 66388 74907 84184 83917 93514 118241 129833 121251 CURD SALES(LTRS ) _ _ _ 692 3992 6561 7976 10153 11263 13048 14593 17419 19589 21901 23807 27191 29192 32508 SAMB ARAM (PACKETS) _ _ _ 442 5254 10371 11664 15641 10710 12380 11243 22452 12112 11803 14565 17199 19174 20750

4.1.5 Procurement and sales of milk (91-09)

Procurement and sales from april 2008-march 2009


Organizational structure of production department


Assistant manager

Technical superintend

Senior grade officer

Operator grade

Operator senior grade

Plant at tender

Production and manufacturing is a very basic function in every organization. The production means conversion of raw material in to finished goods. Here raw material is raw milk itself is converted in to pasteurized toned milk, double toned milk, standardized milk. Milma kannur dairy currently produces milk curd ghee and sambaram. The main functions of production departments are as follows,

To undertake production in hygienic condition To maintain right temperature combination for production. To produce according to the order given by the marketing departments. Production quality product with law cost

Milk production is not uniform in a year. It may vary according to the weather. In summer milk production is very law while consumption is more. During rainy season the production is more than consumption because of the availability of green fodder and water. So this surplus milk is taken to the milk powder plant located in Alapuzha district and converted in to powder and storage. When milk availability is law in summer this milk powder and fat is used for producing fresh balanced milk. This is perfectly scientific, safe universally accepted and legal for meeting the required milk around the year.

The production department must make sure that the production is done hygienic condition. Maintain the right temperature; maintain the right combination of fat and SNF. The production department has to make sure that the goods produced on the basis of order given by marketing department with minimum cost of manufacture. 4.2.1 Milk. Milk is essentially contains their main constituents that are fat, Solid Not Fat (SNF), and water. The non fat solid includes protein, lactose, minerals and vitamins. Even though milk is a complete food it also a very fertile media of bacteria to grow in at milking itself. If it is un checked the bacteria including to cause diseases in human being multiply fast and spoil the milk.

Mainly three types of milk produce by milma kannur dairy. Those are toned mik, homogenized milk, and standardized milk. The standardized milk having 4.5% fat and 8.5 comes in green colored sachets of 500 ml.The toned milk having 3.75 fat and 8.55 SNF.its produced by removing the cream for decreasing fat percentage in to the required level. This milk comes in blue packets. Homogenized milk is another product made by splitting of fat globules in to smaller sized globules. This process called as homogenization. To obtain this the milk is made to pass through narrow slit under high pressure. It is the milk having law percentage of fat. The production process Receiving the raw milk The raw milk from the various societies are brought in by the contact vehicles in cans .the cans are then un loaded from vehicle then it is loaded in to belt conveyer. Clarification The received milk quality has to be tested by the lab technician to know whether milk is spoiled. For this purpose the lab technician smells, tastes, make color tests. This test is called organoleptic test.doubtfull tests are send for clot on boiling test and cob is positive, it is rejected. Weighing After clarification milk is poured in to weighing bowl. Then sample are taken in to test the fat and SNF. The details of milk of various societies weight are transferred from weighing machine computer. At the period of deficit the tankers coming from another district would send to weighing machine located in front yard of the company. Chilling The milk is chilled up to 40c in the chiller. The chilled milk is stored in separate silo tanks of 30000ltrs capacity in the same temperature which will prevent milk from spoilage. Standardization The milk is standardized as per the requirements. Then the operators can confirm type of milk to be p produced and can calculate cream for separation. Here the cream is separated

using the cream separator to adjust the fat percentage and milk powder is added if required to adjust SNF. Pasteurization This is one of the process that milma undertakes in its dairy plants. This is the scientific method of destroying decease causing bacteria in the milk without destroying nutrient in the milk. The milk is heated up to 720c for about 15 second. Chilling and storage After pasteurization the milk is again chilled at 40c stored in separate tanks for toned milk, standardized milk, and homogenized milk Packing The milk is then pumped to the filling machine to filling in the packets(law density polyethylene).the machine is fully automatic then only required milk filled in each packets and then the packet is sealed and collected in to trays as 20 number in each tray. After packing milk is again tested in lab to ensure that PFA specification are satisfied. Cold storage The packets collected in the plastic trays are placed to the cold storage and then stored in 50c that help to keep milk long laster without losing its quality.

Production process of milk flow chart


Receiving raw material


Weighing and sampling Chilling



Pumping to the filling tank Packing

Cold storage at 5 c


4.2.2 Curd To produce curd fresh milk is heated to 420-450c and it is standardized from is done to get good body and texture of finished product. Then it is pasteurized at 850-900c for 20-25 minutes and cooled to 450c then. The firm curd is formed after adding 5-1 5 active culture in it. The major constituent of curd is water, fat 8889%,protien,lactose,lactic acid, calcium, and phosphorous. This method is adopted successfully in kannur dairy. After normalizing the production sachets are filled in just after incubation by using fill pack machine. The curd will be usable after three hours of packing.

Production of curd flow chart

Start Receiving of skimmed milk Standardization Heating to 87-90 o c Holding for one hour Cooling to 40-44 0c Incubation Packing Incubation (6-10 hrs) Testing for acidity Shifting to cold storage End

4.2.3 Sambaram Normally sambaram is the byproduct of butter. But in milma the method making sambaram is quiet different from homely method. To prepare sambaram, curd with minimum acidity of 1.65 is to be used. After addition of pasteurized water in the ratio of 60:40 processed extracts are added. For that 2.5%of curd volume ginger, washed chilies and curry leaves are added. All these are mixed and filtered and then heated at 750c for 2 minutes. Added salt require 2%of curd volume. The processed extracts are pumped to the curd tank and mixed well with the curd. They are circulated through the chiller till 5 0c temperatures is attained. After that sambaram can be packed and placed in cold store and distributed according to the customer order. The processed sambaram with greater acidity distributer at first.

4.2.4 Production process of sambaram-flow chart


Receiving skimmed milk curd (10.5% SNF) Adding processed abstract of vegetables Cooling the milk mix to 5 0 c


Cold storage


4.2.4 Ghee The pure clarified fat is known as ghee. Ghee is the mixture of fatty acids and glycerol. The ghee is prepared using cream i.e. fat content of milk .there is around 70%cream content in the milk. The cream is stored in tanks and pumped in ghee vats of capacity 700 kg and 1000kg after the cream separation process. The vats containing two layers of stainless steels. There are steam coil on inner side of outer stainless steel and thermo coal layer on outer side of inner stainless steel .thermo coal prevent escape of heat from the vat to atmosphere. Cream in the vat is heated at 120 degree as well as agitated simultaneously. And then it is clarified by further removal of residues impurities. Before clarification it is allowed to settle its temperature drop to 600-700c. Te clarified ghee is stored then in tanks. The residues s assembled at the bottom of the vate are removed and poured in to open tanks. The residue is actually the burnt SNF in the cream. The residue treatment is done by running chilling water over the residue and allows settling. Any fat content is left in the bottom is collected, re melted, and again poured in the water. Then the ghee is poured in the bottle and labeled. The bottles being used should be sterilized .after labeling the bottles are seeded. Seeding require maintenance of temperature at 380c .the bottles are carefully placed in to cartoon and placed into ghee stores until they to be distributed.

4.2.5 Production process of ghee- flow chart


Receiving the cream

Testing of cream(FAT%)

Heating (120 0c)

Pumping ghee to setting tank

Clarification of ghee to cans

Labeling of cans

Seeding of cans

Shifting of cans to ghee store


Plant lay out


Marketing department

Marketing is a comprehensive term which includes set of activities that direct to flow of goods and services from producers to consumers. Marketing department is an important department in the organization. It is one of most dynamic field within management arena. This department is mainly concerned with activities regarding the milk and milk products. The milk marketing system has been influenced by characteristics of production process and products. The main functions of the department are,

Market development and supply management Study new markets Identifying marketing problem and measures to solve the problem Finding new customers Canvas for bulk orders Increasing sale and networking The marketing officer is the head of the department. The assistant marketing officers and field officers comes under marketing officers. Assistant marketing officer concerned with activities regarding supply management. That means the distribution of milk and milk products giving details to the production departments about how much to produced to next day. He is also responsible about the marketing accounting and market development activities.

4.3.1 Product mix

It is a complete set of all product line that a particular seller offers to the public for sale. Product mix has key important in marketing product mix helps to find out whether the product is profitable or not. In case of milma main product is mik.mik is of divided in to three types based on quality. The Malabar regional co-operative society introduced lots of products to the public .that are 1. Pasteurized milk Milma pasteurized vitamin A rich milk comes in three varieties. A) Toned milk This milk is the most commonly used by the domestic consumer. Its available 500ml packets costing of rs 10.the milk contain three present fat and comes in blue colored packing. b) Standardized milk This milk contains 4.55fat and9.55 SNF. it costs RS 11.50per 500ml milk. It uses green color packing.

c) Homogenized milk This is the special type of milk specialized for tea. Hotels are the main consumer of this milk. It is fat free milk. It costs RS 11per 500ml.and it comes in dark blue color packet. 2 curd Its the fermented product prepared from pasteurized milk using curd culture from the national dairy institute. It is delicious, free from cholesterol and available in 500ml and in bulk. It comes in green colored packing. It costs 12.50per 500ml. 3 sambaram Sambaram is the favorite beverage of Kerala the only product of its kind in the market. It comes in convenient sachets of200ml.

4 lassi It is sweetened and flavored product which is prepared from the curd which is a healthy drink for alleged group. Its available in 200ml packets. 5) Ghee Ghee is the key ingredient of the most delicacies. Milma produces pure good quality ghee fro butter or cream at all dairies. It is available in 100 gms to 15 comes in glass plastic bottles tin and packets. Price is RS 128per 500mg. 6) Butter It is prepared from cream of milk contain81% of fat and less than 15.6%of water. This is available in 100gms200gms,500gmsand family packs are available in salted and un salted varieties. 7) Peda An indigenous milk product manufactured by evaporating water content from whole some cow milk and sweetened with cane sugar it is a nutritious and sweet bit which is available in 25gm packets and 250gm carton. 8) Sterilized flavored skimmed milk It prepared from pasteurized skimmed milk which is sweetened can sugar and flavored with cardamom. It is very tasty in chilled condition and has keeping quality of sixty days. It comes in 200ml bottle for RS 12. 9) Refresh In addition to the milk drink milma has also mango drink which is a favorite drink in the fruit drink sector. It comes in tetra pack of 200ml. 10) Milma sip up

It is made from pasteurized skimmed milk sweetened and flavored. It is available in 25 ml polyethylene tube flavor like vanilla, pineapple, strawberry, mango and also rose in chilled condition.

11) Cream roll It is mixture of tasty ice cream and tasty fruity encircled over fresh sponge cake. This is delicious snack rich in milma ice cream. 12) Milma ice cream It is available in range of lip smacking flavor vanilla, chocolate, mango strawberry, and fruit and nut .the only ice cream manufactured in the dairy hence most fresh ice cream. 13) Milma dairy whitener Milma has a plant in Alapuzha for producing the milk powder from milk. 14 milma instant palada mix Milma is also manufacturing instant palda mix. 15) Cattle feed Milma is producing 600MT cattle feed a day. Milma produces both mash and pellet from cattle feed and mixed called milmamin. It is distributed to farmers at reasonable rate through dealers, APCOS, agencies. it has most accessibility in between farmers. The kannur dairy MRCMPU currently producing fat free milk, toned milk, standardized milk, ghee, curd and sambaram.other product like flavored milk ,sip up, refresh ice cream, produced at Kozhikode dairy.mik powder produced at Alapuzha ,cattle feed produced at Pattanakad and Malmbuzha Segmentation and target market of milma milk The segmentation of milk is mainly based on price and fat percentage and profitability. in the case of milma its standardized milk and curd are more profitable. But in the market both rural and urban areas milma toned milk is sold more, than homogenized and rich.

Normally toned milk is targeted for law class people and milma rich is targeted for domestic and luxury hotels.

4.3.2 Product line and product mix

Milma product line






Beverage s


Cattle feed

Standardi zed milk


Fat products





Milma smart

Sambara m



Cardamo m milk

Cream roll


Lassi Toned milk

Strawberr y

Sip up Mineral water

Fruit nut


4.3.3 Packaging The milk is packed in law density packs(plastic packs) is provided in cans to jails, hospital, defense etc. the cover has details like brand name ,brand mark, details regarding the type of milk, quantity ,price of milk, technical specification, temperature to be stored, date of packing, expiry date ,place of processing, and address of the company. These milk packets are put in plastic trays ie secondary packing for the distribution .one tray contains 20 packets of milk. 4.3.4 Distribution Distribution of milk and milk products is one of the major activities of the marketing management. There are many agent, whole sailors; retailers for the distribution of the products to the consumer. There is booth run directly by the milma. In kannur dairy, distribution mainly takes place by agents and credit institution. The agent gets commission from milma as paisa 47, 45, and 41 for milma rich, homogenized, and toned milk respectively. They also get 65 paisa for curd of 500ml, RS 15.8 for 500g ghee and66 paisa for one piece of milk peda.the credit institutions are mainly hospitals, defence, schools, and factories etc. milma gives milk to credit institution for one month credit period where the agent gets only by pre paid. a)area of operation Mostly the sales are made in the urban areas. That is around 80% sales are made at town areas of kannur district. Towards the north the main areas include Payyannur and Thalipparamba, towards south Aazhiyoor and Mahe towards east Irrity and coastal areas of kannur. b) Physical distribution The physical distribution is done by contact vehicles. There are running 39 vehicles including 20 puff body vehicles and 3 of coming soon. The puff body is provided by milma so as to deliver milk without losing its chillness. C) The channels of distribution

The milk or milk products reaches retailer or wholesalers then reaches to customer who is the end user. The milk is distributed from dairy to consumer through the booth or retailers. The booth owners may employ distribution boys for home delivery. Milma also gives milk directly to credit institutions for one month credit period where retailers gets only by prepaid. The credit institutions are mainly hospitals, defense, schools, factories etc. the other products are distributed from dairy to wholesalers to retailers to customers. In kannur there are 4 wholesalers. Distribution chart of milk
Dairy Retailers Consumers

Distribution chart of milk products


Wholesaler s



D) Distribution activities The vehicles for the distribution on different rout are given a time sheet where each vehicles are allotted time for each rout. The milk required for a days evening is distributed mainly during morning 9am to 11 am. For that here are 15 routs operated for next days requirement the distribution started from 2.30 pm on wards. The milk is produced according to next days intent orders received form agents. The cash is collected through distribution vehicles, direct payments and banks. In older days cash boxes kept in the vehicles where dealers had to deposit next days intent along with cash. But now the dealer has to give cash along with intent to the driver and should receive a receipt from the driver.

Indent form The dealers are provided a intent form in which he has to fill the details like dealers name, agency code, place, how much quantity of the specified product is required and cash details, signature of the agent etc for the next day. Intent form details are entered in to the computers and on the basis of that route abstract sheet and dispatch sheet are prepared. Dispatch sheet Dispatch sheet contains detail about agencies to get milk. It specifies the details of vehicle that this dealer should be given this much product. It contains details like product dispatched and product returned, place, name of the agent. Rout abstract sheet This is prepared on the basis of indent form. It specifies details how much things to be loaded to vehicles from the dock. It consists the rout name, product quantity, number of trays, total number of sets and trays etc.

Gate pass The details of gate pass and dispatch sheet should be same.the security matchs it with the dispatch sheet. Invoice It is the bill given to the dealers through the drivers of the carrier to the remittance by drivers of the carrier.

4.3.5 Sales position MRCMPU has achieved the sales of 116646184 liters milk, 1543581 kg ghee, 118653338ltrs of curd and 7573864 packets of sambaram during this financial year. Kannur dairy has made more than 20524 liters sale of milk from previous year.

4.3.6 Price list of kannur dairy products KCMMF fixes price for all the products of milma. The fixed price has to be followed y all dairy. SL.NO 1 2 3 4 5 6 ITEMS TONED MILK MILMA RICH HOMOGENISED CURD SAMBARAM GHEE PACKING UNIT 500ml 500ml 500ml 500g 200ml 500g 10 11.50 11 12.50 3.50 128 15.80 .41 .47 .45 .65 PRICE/Rs COMMISSION/RS

4.3.7 Promotional activities Milma also does promotional activities to boost their sales. They give emphasis on dealer promotional activities. They are not frequently giving advertisement through Medias. But they provide advertisement during the festival season through broadcast Medias and print Medias. They often try to emphasis quality of their products comparing others. Promotional activities for dealers

The dealers are given flex board, stand boards of the products as point of purchase advertisement.

They are given painted board with dealers name written on it Helps booth owners for painting their Boothby giving 75%of the cost. The dealers are given subsidy of RS 2000 for refrigerator, Rs 5000 for freezer, Rs 1000 for cycle, and RS 5000 for two wheelers.

Compensation for spoilage, leakage of products to dealers. Yearly prizes of Rs 3000 by the union and RS 2000 by the dairy to the agents are given those who attain maximum results.

Agent clubs are formed for dealing the problem and promoting the sales Milma will provide 50%of cost those who wish to start booth of milk and milk products in national high way side. special discount for ghee whole sailors.

Other promotional activities

Advertisement in television at time of onam, vishu in order to boost the sales. Milma opens special stalls at exhibition, festival stalls. Decoration of booth during festival. Banners at special function Painting of traffic circles hoardings Dairy visit program is conducted for most frequently purchasing consumer that is dealer has to collect that consumer .they are given offer to visit dairy and see the working of the dairy.

Hotel incentives: Rs 300 is given as apprize to new hotel users those who lift at least 30 liter per day continuously for 120 days.

Caps, rain coats are given for the distribution boys.


Organizational structure of personnel management


Assistant personnel officer

Junior superintend

Senior assistant typist

Junior assistant typist

Office attainder

Personnel department is the department in every firm which is concerned with each employee. Personnel department is responsible for the execution of policies regarding the recruitment, discharge, classification of employees and wages which had been laid down by the board of directors. The total number of people working in the company is 330 including temporary and permanent workers. Out of this 10 officers and 85 are permanent while 3 officers and 8 workers are temporary. This personnel and administration department includes one officers and two clerks and one typist. And anadditional clerks and apprentice. . 4.4.1 Duties of the department

Keeping the personnel files of the employees Keeping the service books which contain all the details regarding the job performance ,transfer, punishment etc

Preparation of the salary bill Employees provident fund recovery and remittance in time Employees state insurance recovery in time Prepare half yearly statements and connect registers on the above The preparation of journal ,vouchers /payments connected with this department Preparation of stipend bill for apprentice Preparation of salary bill of the employees on daily wages appointed on contract Leave posting and leave u[dating Attendance registers updating. There is an electronic thump punching system is assembled in the unit

Recruitment and probation

Long term settlement of workmen Travelling allowance bill passing Motor conveyance advance processing Courier register maintenance Security arrangement Training Trade union Preparation of o t bills

4.4.2 Training and development Milma has centralized training facility at Trissure providing training to society staff, farmers, and the employees of milma. It also provides organized training in all aspects of cattle management and society management. There are three types of training in this institution. 1) Induction training It is the training program used for newly appointed employees where new employees is introduced to job situation and company environment 2) On the job training Under this workers are given training during time of working within the organization. 3) Refresher training This training is for the previously appointed workers for improving their abilities and skills. And also for making them full of intimated with the company. 4.4.3 Employment The recruitment in milma is done by head office situated in Kozhikode. When a vacancy arises personnel committee conducted interview for every posts in the organization. They

advertise it in two leading news papers and a period of two weeks is providing for admitting applications. Candidates are screened after written test and qualified ones are interviewed on the base of rank lists appointment is made.

4.4.4Promotion Promotion is considered to be upward movement of person from his current position. To afford opportunity and assist development and growth of employees in the organizational scale promotion will provide for upward movement to higher responsibility, status and emoluments. When there is any vacant position in the federation /union it will be filled by recruitment partly through promotion within the organization Promotion is given to the employees that are for clerical posts and other posts promotion is given in 5 years and for officers post promotion is given in 3 years.if there are no vacancies senior grade is given after 8 years with salary as same as the post. Promotion procedure A vacancy offering promotion opportunity will be notified within the organization and data of those respondents will be screened and those who satisfy minimum requirement for the post will be interviewed and tested by personnel committee. All promotion shall be subjected to approval of managing director. If the applicants found un suitable he will rejected. Upon the promotion the employee on for probation for minimum period of one year and his performance will be assessed. If it found un suitable will be reverted to earlier position. Employee is appraised for one year and his performance will be recorded. Seniority and merit will be the base for promotion. Promotion policy
a) Promotion to the higher posts is made when vacancy arises due to death, retirement,

b) Merit efficiency and performance of the employees assessed by management as the

basis for promotion.

c) Seniority in any grade or holding any additional charges for temporary periods will not

itself entitle an employee for promotion.

d) An employee should have completed minimum period of the service in feeders category

as prescribed in the annexure before being eligible for promotion.

4.4.5 Transfer Milma follows two types of transfer policy Inter unit transfer: The workers are transferred to one plant from one plant within the jurisdiction. Regional transfer: Officers are transferred one dairy to another within the region. 4.4.6 Retirement The retirement period of the employee is 58 years. The various benefits like gratuity are sanctioned on retirement. 4.4.7 Compensation wage and salary The remuneration of the employee is based on the long term agreement and it is prepare d once in five years by the management and trade unions. Time wage system is followed in the case of permanent employees and piece wage system is in the case of employees engaged packing of ghee and sambaram. Salary=basic pay +DA+HRA (10%) +Washing allowance (45/month) +Night allowance. Dearness allowance

Dearness allowance shall be paid to the employees who are placed on time scales of pay, at same rate as applicable to employee of government. House rent allowance It shall be paid to the employees of the union at 10% of basic pay irrespective of the stations where duty is performed. He wont be eligible for house rent allowance if accommodation is provided by the union. Travelling allowance Travelling allowance is also granted to an employee to cover the expenses increased by him in performing journeys in the interest of union.

Medical allowance Those employees excluded from ESI are eligible for RS 100/month.

Employees provident fund EPF is compulsory for all employees which is 12% of the basic pay and dearness allowance. First there was no pension, but 8.33% of EPF was provided as a pension and balance moved as a provident fund.

Employees State insurance ESI are for those whose salary is up to RS 7500/-.ESI is 1.75%of the total salary and is paid backs 4.75% by the company.

co-operative credit societies Credit is given up to 80000 within the guarantee of 2 employee and which should be paid at an interest of 11.5%

4.4.8 Allowance rates House rent allowance Foot ware 10% of the basic pay RS120/month

Uniform stitching Male female Uniform washing

RS300 RS 75 RS 45/month.

4.4.9Rates of stipend payable to apprentice

Graduate apprentice Sandwich course(Degree) Technician apprentice Sandwich course (diploma) Trade apprentice

RS 2600/ month RS 1850/month RS1850/month RS 1510/month RS 1440/month

4.4.10 Employee service

milma provides canteen facilities for employees at subsidized rates parking facilities for vehicles the employees other than office staffs are given uniform (2pairs)over coats to officers in plant

Mobile phone is given to office staffs in marketing department and managers and assistant managers by the dairy.

Auditorium to conduct meeting and functions office library.

4.4.11 Employees benefits Milma is setting a part an amount of 500000 (approax) for employee benefits.

The workers are paid overtime wages for extra works The employees are given night allowance RS 6 is paid per shift. House building advance

The dairy provides vehicle loans for staffs based on here pay scale.for bike it is 25000, for cycle it is 1500, and also RS 100000 for car. All the loans have to repay within five years at 9% interest.

There are also voluntary retirements. The retirement benefits provided as based on the salary .they are also given gratuity.

The dairy also provide death benefits. i.e. an amount is provide to family from employee welfare scheme and also a job is given to member of family considering their qualification.

The dairy provides as a help of RS 5000 for the marriage of employees children and RS 1000 for house warming.

The company gives RS 3000 to employees welfare scheme and RS 70 is taken from employees salary. And the employees are also given festival bonus. The performance incentives are provided to employees right from managers to sweepers up to RS 4500.

4.4.12 Personnel records All the necessity information about the employees is maintained in the personnel record and these are used at the time of promotion, demotion, transfer etc on the basis of these records the performance f the employee is evaluated. 4.4.13 Industrial relation Milma has formulated certain rules and regulations to maintain discipline in the organization. Any complaints arising the from the employees are normally taken care by the personnel manager. 4.4.14 Trade unions At present in kannur dairy has two authorized trade unions. They are INTUC and CITU. But the company provides harmonies situation to the workers in all level they expected.

4.4.15 Man power profile The MRCMPU ltd within a short span of 28 years established it own identity in the cooperative industry in the country. now it has dynamic executive and a committed work force. Name of department Engineering accounting Production Marketing Quality control P&I Personnel Store general sslc pdc graduation Post gradution

Experience profile

Classification of workers Permanent workers Permanent staffs Probationers Contracts Temporary Casual Apprentice


Organizational structure of finance department


Account officer

Junior superintend

Senior assistant (steno)

Junior assistant (steno)

Finance is the life blood of every business. This department records classifies and presents information for manufacturing and other activities of the firm. Department is mainly consist with management of financial activities. The financial departments deals with planning the total required for both long term and short term purposes. The responsibilities of maintaining accounts and exercising financial control is vested with financial manager .all department payments and receipts are finally reported to the finance manger. This department is maintaining communication with all departments in the organization.

Source of finance There are two types financial sources in the company Internal sources

Income generated from sales is the main source income of milma There are accumulated profits. It is the source of income other than income from sales. Current loses are adjusted by the reserves. Capital reserves are also included in this.

External sources

Milma raised capital fund by issuing shares only for farmers of the APCOS. All farmers should subscribe certain number of shares of the union.

The main activities concerned with the departments are Management of finance Here the department is entrusted with the function of working capital management. As part of the financial policy all the long term capital and infrastructure investment plans and activities are performed at head office level. So the dairy has only the responsibilities of preparation of annual capital budget of the dairy and submission to head office for consideration and approval. Under the working capital management the finance department prepares requirement plans on ten days base and submitted for arranging fund transfer for meeting the daily requirements of the dairy. Cash collection from sales The union has adopted policy of sales on cash basis with advance collection method with the exception of credit with few governmental agencies. The union follows a centralized cash management system for free movement of fund from dairy to dairy and to meat requirement of all dairies in time. Head office manages the requirement of all dairies out of these proceeds based on fund request from dairies.

Payment to creditors and other agencies They give payment to societies who give milk and all other purchases regarding about production on ten days basis. Similarly the payment of transport contractors is made on 15 days basis. The employee related payments are made only monthly basis and all statutory dues in time. There are occasion of advance payment and payment through bank.

Maintenance of record As usual the main duty of finance and account department id to maintain accounts and records. Here in kannur dairy the accounts are computerized with oracle based financial package. The transactions of dairy and chilling plants are recorded through cash book, bank book, purchase book, sales book and general journals. In addition to cash book the chilling plant activities are through imprested system of petty cash and purchase. The account department also maintains various records that are essential for statutory audit, income tax audit, sales tax files, service tax files etc.

.preparation of financial report The finance and account departments prepare monthly profit and loss account and are submitted to the dairy manager and head office. The report elaborates the financial performance of the dairy during the current and up to the current month, previous month and budget for the current and previous month. This facilitates the viewers to compare or evaluate the performance.

Analysis of the financial statement The finance department of the dairy prepares monthly financial analysis statement contains details for the major deviation of expenses from the budget as well as the reasoned there for ascertained for the financial control. It is submitted to dairy manager as well as managing directors for evaluation. The same is discuses in the review meeting of the officers at dairy

Fulfillment of statuary obligation The dairy has to be fulfilled various statutory obligations. The finance department perform about sales tax, income tax, work contract tax, service tax, fringe benefit tax/entry tax etc. the department is responsible for collection of all taxes and giving the returns before due date, maintain the records for verification etc.

Audit related duties Finance departments of the dairy is responsible for submitting the the financial statement, Details, reports, clarification etc to the statutory auditors for audit.

Preparation of budget The dairy prepares both revenue and capital budget annually. This department compiles the various quantitative budgets prepared by difference departments .both capital and revenue budgets are forwarded to the head office for the approval of the board. After approve the revenue budget is entered in the financial package.

Financial highlights



Assistant manager (maintenance)

Technical superintend

Special grade technician

Senior grade technician

Technician grade 1/Driver grade 1

Technician grade 2/Driver grade 2

The Maine purpose this department is to establish system for the maintenance to ensure un interpreted functioning facilities. With the modernization of the dairy processing industry employing sophisticated equipment and increasing competition it has become imperative to achieve higher efficiency and economy. To achieve and maintain higher efficiency and productivity in higher rate it requires a systematic procedure and the control of production and machinery. The maintenance department has to give assistance to the production department by providing all the general utilities like water, electricity steam, etc. there is 250kv substation owned by the dairy for supply of electricity and generators to back up if there is no power supply. The maintenance department has to keep up machineries to assure that they are in proper working condition to avoid break down. Assistant manager is the head of the department .under assistant manager there are technical superintend technician, apprentices, drivers .The maintenance department has to keep up utilities like electricity water, steam etc and product transportation.

4.5.1 The main functions of maintenance department

Giving assistance to production Up keeping of machinery Assurance of general utilities Technical and civil maintenance Maintenance of tankers owned by dairy.

The maintenance department is responsible for the bulk milk movement in the tankers in the dairy. The dairy owns a water treatment plant treats the effluent water with the capacity of 2000ltres. The solid waste is used as fertilizer .the water treated is again used for the irrigation of plant in the dairy. 4.5.2 Machines used Some of the machines used in the to achieve high efficiency in the dairy processing industry are Pasteurize Boiler

Refrigeration Cream separator Homogenizer Packing machines

4.5.3 Types of maintenance There are two types of maintenance that milma normally adopt, they are preventive maintenance and Break down maintenance Preventive maintenance procedure
a) Duty engineer shall maintain list of machinery and equipment that are to be covered

under preventive maintenance.

b) All the plant and machinery of the dairy and chilling plant shall be dually identified

with a unique code for each and individual machine

c) Wherever machine supplies provide operational manuals there shall be used as

detail for carrying out preventive maintenance.

d) Check list shall be prepared for identifying machinery and equipment detailing

various check and maintenance work

e) In case no check list is made available for machinery, duty engineer shall ensure the

maintained personnel are acknowledgeable to carryout routine maintenance. Break down maintenance procedure
a) Wherever break down occur, details are entered in break down register. b) Concern maintenance personnel shall the details of work done in register. c) Ones in 6 months duty engineer or unit head shall review nature of break down,

frequently recurrence, probable cause, potential problem that may occur in order to bring them under preventive maintenance to reduce the interpretation in production. d) Duty engineer shall ensure sufficient place or available ensuring smooth functioning of plant.


Organizational structure of stores department


Assistant store officer

Stores attainder

Stores apprentice

Stores play a vital role in the functioning of the organization. All departments are in the direct contact with the stores for their smooth functioning. The most important functioning of the stores is that to provide regular service to production and other department for their continuous smooth operation. Maintenance of stores and its handling should be given importance because investment made in stores is huge and articles worth lakhs are kept in stores. A systematic and proper control of store keeping functioning are essential for ensuring discipline ,availability of articles at required time adequate storage in store keeping records. 4.6.1 Major functions of stores department are,

Receiving of material and recording of receipts. Arranging inspection and proper storage and preservation of receipts. Issue of storage items to user departments Preparation of various report

Receipt and inspection of material The raw material are received from two sources, that are

Receipt from external sources

Receipts of material from the outside suppliers.raw material are received against the orders placed or by local purchase from local vendors. Receipt from internal sources Raw materials are received from the consumer departments where the item may be of no use.

Major aspects involved in the receipt of material As and when materials are received all the items are physically examined for accuracy and inspected for assuring quality. When materials are received in the store it is checked and agreed with that mentioned in Chelan /deliver note/packing lists /invoice. Delivery not is signed after delivery the delivery note is signed and the original note is retained in the dairy and the duplicate copy is forwarded to seller as an acknowledgment. If any shortage or damage is reported it is mentioned in the in the delivery note. After fulfilling the mentioned it should be taken to store without further delay. Procedure

As materials are received details are entered in to goods inward register. It consists of details like date, details of supplier, quantity, details about sales taxes excise duty etc.Then a material inspection note is prepared triplicate. Original copy is retained with the account officer, duplicate is in purchase section and triplicate in the stores When acceptance certificate is given by inspection officer store keeper shall prepare goods in ward note. Consists of details like purchase order no date details like purchase order no, mode of conveyance, type of packaging, quantity, inspecting etc .if the material is rejected is sent back to supplier with a rejection note. Its original copy is distributed to supplier, duplicate to store, and triplicate to purchase section. a discrepancy report will be intimated to supplier when any discrepancy is noted. If materials are insured claims shall be forwarded to insurance companies. 4.6.2 Storage of material Proper safety and the safety of materials are very essential. Location of the storage of each material is to be determined. Small items are stored in bins card and are placed in racks .racks are marked. 4.6.3 Issue of material The promptness of the materials issued reflects the efficiency of the store keeping. Proper authorization should be there otherwise entire store systems will be collapsed. An issue of material s from the store should be o the basis of intends is requested by the department head or the authorized officials to issue materials from the store. 4.6.4 Pricing For pricing first in first out methods (FIFO) is used. In case voluminous items with low value like spares weighted average price is used. 4.6.5 Disposal of scrap material Arrangement shall be made to keep scrap/unusable material in store separately. The items having good resale value should be stored separately. 4.6.6 Purchase of material Purchase made by the store when the stock position reaches the fixed reorder level of each items. The store keeper shall check stock position of items regularly and whenever the stock reaches the reorder level he shall initiate the action for purchase of these items. The store keeper shall prepare purchase requisition note and forward it to the sanctioning authority with the recommendation of concerned section head. Some time the purchase rate sand suppliers will be finalized by KCMMF or MRCMPU and intimated the units .in each case the purchase order shall be prepared incorporating the terms and conditions intimated by the KCMMF or MRCMPU.In certain case purchase rates and

supplier may not fixed by KCMMF or MRCMPU the quotation shall be invited from potential suppliers and shall be opened at the date and time mentioned in quotation note. A quotation register shall be maintained by the purchase officer o store officer and all the quotation shall be opened and their tabulation statement shall be recorded in it and signed by the officers. Quotation might be invited for single purchase for fixed period like one month or one year etc. Purchase of non routine items Here the section head shall initiates the purchase when material is required. After getting the sanction from the sanctioning authority for purchase requisition note prepared by department head purchase should be undertaken by the purchasing officer or stores officer. Purchase of capital items The dairy manager can purchase capital items where specific provision is made in the approved capital budget of unit and cost of item which is less than 10000/-when the cost exceeds 10000 /-purchases shall be made after getting prior approval from head office. 4.6.7 Records maintained by the store departments 1) bin cards It contains detail like description of item size, specification, name of the major suppliers. 2) Stores ledger It contains details regarding receipts, issue and the balance of the value, name of the supplier, name of consumer section. 3) Day book It contains details of daily receipts and issue of materials in quantity and value. print outs taken monthly and kept in store. 4) Stock movement statement It contains monthly opening balance receipts and issue. Closing balance print out is taken monthly. 5) stores ledger It contains item wise details of quantity and value that is the transactions report taken whenever needed. 6) Cost report Account code wise statement monthly print out.


Organizational structure of quality control department


Assistant manager (quality control)

Technical superintend-lab

Lab technician-1

Lab technician-2

Lab assistant

The quality control department assures the quality of milk and milk products at the dairy. The quality control labs, testing and inspection come under the quality control department. 4.7.1 Quality policy Farmers prosperity through customer satisfaction MRCMPU ltd is committed to provide consistently safe hygienic and healthy milk and milk product to achieve and enhance consumer satisfaction. We milma shall strive to excel in the market leadership by achieving quality and economy in all our activities adopting quality managemet system. We milma shall strive scientific approach to ensure the continual improvement in personal, in our activities that increase value and status of this organization and its associations. 4.7.2 Functions of quality control departments The main functions of quality control department are the inspection of milk of each society. Inspection is mainly conducted in order to make sure that the production is carried out as per their standards. Receiving inspection Receiving inspection is the inspection of milk while receiving the raw milk from the society. The test conducted during the reception of milk is called organoleptic test. Organoleptic testis conducted to find out whether mil is good or bad. That is the appearance, color, flavor, taste are all to be noted in this test. If there is doubt full cases the samples of milk will send to clot on boiling test. If the clot on boiling test is positive the milk is rejected. In process inspection Here the analysis is conducted during the processing of milk deference tests are conducted to achieve the quality of milk.

Quality standards of milk products Toned milk Homogenized milk Milma rich FAT% 3 3 4.5 SNF% 8.5 8.5 9

Final inspection After completion of production process one packet milk is taken from the storage in order to ensure the standards as prescribed. If there is still any problem it is again reprocessed to achieve the fixed standards. Various tests conducted from the dairy Organoleptic test
It is primary test conducted to find out acceptability of milk SNF test It is used to detect the SNF in the milk. The reading of the milk by corrected lactometer is taken first at 290c. Coli form plate count This test is conducted to find out bacteria in the milk. It is conducted twice I a month. Gerber test It is used to identify the contents of fat in the milk. Milma has an electronic machine to detect fat in the milk. it is called as fat detecting machine. Temperature test This test is conducted to know the temperature of milk. Acidity test This test is used to measure the lactic acid in the milk. Acidity should be between0.13-0.16. Methylene blue reduction test This is used to identify the bacterium that exists in the milk. This also conducted twice in a month.

Objectives of inspection

Reduce poor performance Maintain standards Reduce economic loss

Remove defective milk

Provide research for evaluation.


SWOT analysis is the key concept in the world of co-operative planning, strategy formulation and other practical spheres of management. SWOT analysis is tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for Strength Weakness, Opportunities and Threats. strenght and weekness are internal factors and opportunities and threats are external factors. Strength of milma

Milmas products enjoy the reputation of high quality and healthy as most of its products are made with milk collected from farmers in rural areas.

Milma plant having all necessary equipments and machineries to meet the present demand of quality milk and milk products.

At present kannur milma dairy has 1045 functioning retail dealers 32 credit institutions.

There is good communication system and co-operation among all department of milma and it has good organization structure to help thing are going smoothly.

The employees selected in milma are efficient enough to take responsibilities and challenges and able to do their maximum to achieve organizational goal.

The place where the factory settled is appropriate enough to take care about all marketing activity.


A fair growth in production and increasing scenario of houses as well as families gives milma a good opportunity to make good market strength in kerala.

The gradual change of society in to disposable culture make big need for packet milks in their daily life

The increasing number of super markets and margin free markets gives new opportunity to enter urban markets.


Because of having less margin most of the sellers in rural areas ignores milma products instead of other companys products except milk.

Milma giving more care to farmers prosperity, it leads much more difficulties to meet employees and other parts of organizations objectives.

Milma requires more advertisement in the competitive environment.


Deficiency of fodder in summer creates lesser production of milk. It makes difficulties in achieving customer demand and makes more expenses.

Milma never gets much more attention from the government side.but it suffers un usual interfere from government side.

Because of increasing cost milma is facing threat of price rise.

Suggestions An overall analysis of milma shows that it has well managed structure, even though the following suggestions are put forward to increase the functional efficiency.

Milma should give target achievable training to officers and workers instead of routine, expensive training especially in marketing wing. Milma should concentrate more informative and catchy advertisement of all products highlighting the product quality. Milma should find more market areas for the utilization of their entire production capacity.

The organizational study gave a greater learning experience to me. the experience of doing one month long study gave me opportunity to explore in to the areas of practicable knowledge of management and nature of a company. This organizational study also showed the important roles played by every single functions of the management. It also lead me into some thoughts about my behavior, attitude, body language, and in efficiencies and I became more conscious about time management.

Milma is the present milk marketing leader in Kerala. but in this changing condition the marketing of milma products has become more challenging as it now faces several competition from private milk producers and local producers. This entire problem can be met through professional management approach and target oriented training and proper planning. So the company should give the attention in ensuring the quality of products and introduce more promotional activities to overcome the competition.