CHAPTER I

INTRODUCTION

1.1 INTRODUCTION OF THE STUDY

Organizational study, sometimes known as organizational science, encompass the

systematic study and careful application of knowledge about how the Tamilnadu Cooperative
Milk Producers Federation Limited act within organizations. I have done my organization
study in the Tamilnadu Cooperative Milk Producers Federation Limited. It is situated in
Villupuram. Ever since then, they have stayed true to their vision and have been supplying a
huge amount of industrial products of international quality standards. In this study period I
have observed what is happening in organization and in which area they are facing problems.
And I have given some suggestions to solve the problem.

This organization study helped us to learn and gain practical knowledge. Organizational
studies have become highly important because people from different backgrounds have to
interact with one another. In the current scenario people from diverse cultures, backgrounds
and even educational levels have come together to form a team.

In fact, it is not uncommon to see people with different cultural and ethnic
backgrounds interact with one another and can help to better understand human interaction in
such situations. An organization is born when people combine their efforts for some common
purpose. It is a universal truth that an individual is unable to fulfil his needs and desire alone
because he lacks strength, ability and resources. Organisation study will give practical
exposure about the organisation and its process it will help us in our future and also for our
career. It will help us to succeed in our career. Basically it involves the study of individual as
well as group interaction inside an organization. There are many factors that come into play
when people interact with each other not just as individuals but as a team as well. So we can
safely say that aim to understand these important factors and model on them.
1.2 INTRODUCTION
The Dairy Development Department was established in Tamilnadu in the year of 1958 to
overs and regulates milk production and distribution in the state. The dairy development
department took over control of the milk cooperatives. It was replaced by the Tamilnadu
cooperative milk producers federation limited in the year 1981.
On February 1,1981 the commercial activities of the cooperative were handed over to
Tamilnadu co-operative milk produces federation limited which sold milk and milk products
under the trade mark Aavin with many private to improve the performance of the
cooperatives. Tamilnadu is one the leading states in India in milk production with about
145.88 liters per day.
The Commissioner for Milk Production Dairy Development is the Head of the Dairy
Development Department. He is the functional register in respect of Dairy Co-operatives in
the State. He is also the Ex-office Managing director of the Tamilnadu Cooperative Milk
Producers Federation Limited. i.e. Aavin.
The Commissioner for Milk Production and Dairy Development exercise all the statutory
powers with regard to the registration of societies, supervision, inspection, inquiry,
liquidation of the milk cooperative including all District Cooperative Milk Producers.
Union and Federation under the relevant provision of the Tamilnadu Cooperative
Societies Act, 1983 and Tamilnadu Cooperative Societies Rules, 1988. While discharging the
statutory function, the Commissioner for Milk Production and Dairy Development is assisted
by the Deputy Milk Commissioner (Co-operation) in the rank of rank of joint Registrar of
Cooperative Societies and a deputy at the Headquarters besides 23 Deputy (Dairying) at the
District level by way of conferring the power of the functional register.
Aavin is the trademark of the Tamilnadu co-cooperative milk produces federation
limited, a Tamilnadu-based milk producers union. The aim of AAVIN is process it, chill it,
pack and sell it to consumers.
An organization is a social arrangement which pursues collective goals, controls its own
performance, and has a boundary separating it from its environment.
The world itself is derived from the better-known word ergo. Organizational contribute to
serve one common aim. Organization is a variant of clustered. An organization can be
structured in many different ways and styles, depending on their objectives and ambience.
The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibility for different
functions and processes to different entities such as the branch, department, workgroup and
individuals in an organization structure are normally hired under time limited work contracts
or work orders, or under permanent contracts or program orders. The organization study was
undertaken mainly to study the department functions of Aavin milk producers Union Ltd,
Villupuram.
An Aavin milk producers union Ltd was started at 1958. The company is located are
periyar Nagar, Villupuram. The numbers of employees working in the company are 167. The
products produced that particular dairy plat are milk, Ghee, Khoa, Milk powder, creams. The

2
total revenue per year that the company yields is $300 million. The parent of the milk
procurement is from the department of Aavin husbandry.
The headquarters of the dairy plant is madhavaram milk colony, Chennai. The milk
production in Tamilnadu per day is 145.88 liters per day. Dairy sector is important not only
as the producer of highly food products, but also for the sustenance of poor farmers and over
all prosperity of the farming community. This dairy is a district level-milk producers union at
the middle level

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 1.3 COMPANY PROFILE
The Villupuram-Cuddalore District Cooperative Milk Producers Union Limited was
registered on March 31st 1982, under the cooperative act entire districts of Villupuram and
Cuddalore highways.
The dairy activates of the union stages, was a processing capacity of 50,000 liters per day.
There are two chilling centers to this union at chinasalem and the other is at Sethiyathop of
Cuddalore district having chilling capacity of 1,00,000 respectively. In addition to which 18
bulk milk coolers were instead at primary. Cooperatives milk producers societies to facilitate
chiding of 72,000 liters of milk per day.
The union is producing around 1.50 lakh liters of milk from 749 primary milk producers
operatives societies and 45291 farmer members are pouring milk to the societies in
Villupuram and cuddlier District.

LAND DETAILS
Villupuram dairy - 29.83 acres.
Sethiyathop - 2.4 acres.
Chinasalem - 6.75 acres.
Kathenemil - 6.75 acres.

PURPOSE AND OBJECTIVE

As there revenue village surplus milk, it was necessary that all the milk has to be
utilized properly. So this was the reason why the cooperative societies were started in village
level. The remaining milk from the village sold to the union.

SECTORS
The unions containing four sectors. They are.

Personnel management department.

Procurement and input.
Marketing department.
Quality department.
Production.

MILK MARKETIG
At Present they are marketing liters of milk of daily both Villupuram and Cuddalore
districts. The surplus quantity of milk is being sent to metro dairies. Chennai to cater the
consumers demand at Chennai,

S.NO DETAILS VILLUPURAM CUDDALORE TOTAL

DISTRICT DISTRICT

1. NO: of milk distribution routes 5 9 14

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2. NO: of consumer cooperative societies 2 2 4

3. NO: of retail agent 45 61 106

4. NO: of whole sales agent 1 2 3

5. NO: of parlous 9 2 3

6. NO: of institutions / government 3 10s 13

department
7. Quantity of milk sales per day 5700 18500 24200

8. Metro sales 18500

Three type of milk are marketed viz.. toned milk, and standardized milk in 500 ml and 200ml
sachets. The milk pouches are packed at Villupuram dairy and supplied to various marketing
outlets.

MILK PRODUCT SALES

For better profitability the milk is converted into value added products like Khoa,
Ghee are manufactured and marketed through our union agent at the time summer season. In
addition to that products like flavored milk, Maven, Milk shake milk power, Butter and
Badam are produced from nearby union and market by this union and marketed by this union.
Our of existing 21 Aavin milk parlor of the union 7 Parlours functioning by the women self-
help group.

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1.4 INDUSTRY PROFILE
The dependency of rural poor on livestock for their livelihood is quite substantial and this
situation is likely to continue for the year to come. More than 90% of cattle, buffaloes, sheep
and goat are being reared in rural areas (GOL, 20060).
A mong the livestock, dairy cattle play a pivotal role in the livelihoods of the poor people
especially those who are poor not in land assets but in literacy, access to infrastructure
facilities, information and basically unskilled.
These rural poor ad no option but to take up dairy farming as a main occupations as it the
only enterprise which could provide regular income (milk money) serve as asset (moving
bank). Dairy farming forms the second or third largest economic activity in the country.
The important of feeds and fodders in dairy farming needs no emphasis. With increase in
the pressure on the land due to urbanization and industrialization and decrease in the area
under food crops coupled with increasing demand for milk and milk products the dependency
on external or purchased inputs is increasing demand for milk and milk products the
dependency on external of purchased inputs is increasing concomitantly putting pressure on
the dairy farmers especially the resource poor.
Effort are being made to reduce the yawning gap between the requirement and availability
of feeds and folders which include technological inventions to increase the yields, bringing
more area under fodder crops, conservation of feeds and fodders, improving the nutritive
value of the poor quality roughages, formulation of balanced rations, feelings of
unconventional feeds etc. But fodder scarcity is a challenging reality in most of the
developing countries including India, where dairying is largely the avocation of the poor,
especially women.

LANDLESS DAIRYFRAMING:
The focus of this paper is on landless dairy farmers because of the following reasons:
1. Their contribution to milk bowl is quite substantial.
2. Their increased dependency on dairy cattle for livelihood security.
3. Their share is about 60% of the dairy farmers.
With increasing of demand for milk and milk products both internal and external the
participation of private or cooperate sector entering into the system will be increasing thus
threatening the livelihood security of the poor dairy farmers and yet keep pace of increasing
the milk production.
Hendrickson (1998). Even the well acclaimed operational flood programmer is not devoid
of the criticism that it had marginalized the poor cattle owners especially the landless
laborers (verhagen, 1990).
The institution especially the government have a major role to play in formulating poor
policies which requires an understanding of the dairy farming systems, which are dynamic in
nature.
Farming systems, which are dynamics in nature. Otherwise the expected high demand for
livestock products is likely to result in a scenario with high concentration of animals in large
scale industrialization products system and marginalized small scale livestock producers
(Chaco teal, 2008).
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 In case of resource poor livestock owners the main purpose of rearing livestock is to
minimize the risk rather than maximization the profit (orzo, 2007). These differences in
perception and priorities of livestock owners need to be appreciations and recognized before
contemplating the development programmers (raps et al, 1995).
Livestock rearing often is the only economic activity accessible to the poor people in
developing countries as it does not require formal education or large amounts of capital and
often no land ownership (stein fed teal, 2006).

1.5 PRODUCT PROFILE

MILK:
The white liquid produced by cows, goats, and sheep and used by humans as a drink
or for making butter, cheese, etc:
Milk is a complete food for every human being. A clean lateral obtained from the
healthy milk, i.e., cow. 15 days before and 15 days after calving to format the quality milk
launches for 18th century. Milk is widely considered as one of the worlds most valuable
food. As a raw material, it is available in various forms, and it is processed into an ever
increasing variety of nutritional products.

MILK PROCUCTS:
Pasteurized milk
Flavored milk
Sterilized milk
Cultured milk
Sweetened condensed milk

METHOD OF RATE FIXING:

Single access method:
It is depends upon FAT (or) SNF
Double access method:
FAT + SNF
It is both of them necessary for the price fixing.

Package size available in:

200ml, 250ml, and 1 liter are available package size.

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1.6 OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT:
Assure a remunerative price for the milk produced by the member of the milk producers
co-operative societies through a stable, steady and well organized market support.
Distribution of quality milk and milk products to the consumers at reasonable price.
Keeping these objectives in mind, a number of activities are undertaken by the Dairy
development department, viz., and provision of free veterinary health cover to all animal
owned by the members of milk cooperatives, implementation of farmers with the modern
animal husbandry methods and practices.
Provision of necessary infrastructure facilities for marketing milk and milk products and
supply of quality milk to the consumer has been made by way of establishing new chilling
centers, pasteurization plants and adoption of modern processing system.

PACKAGE SIZE AVAILABLE

200ml PACKET
250ml PACKET
500ml PACKET

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1.7 AAVIN PRODUCTS:

9
10
 Organization structure

General Manager

Department

Human resource Finance Marketing Production

Engineering Quality control

Deputy Manager

Supervisor

Employees
2. CHAPTERS

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2.1 OBJECTIVE OF THE STUDY
Primary Objective:
The main objective of the study is to have a practical knowledge about the functional
organization.

Secondary Objective:
To understand the organization structure.
To study various functional areas of the organization.
To understand the duties and responsibilities of various department heads.
To identify the strengths, weakness, opportunities and threats of the organization.

2.2 LIMATATION OF THE STUDY

1. Times limit was given to each department.
2. The milk industry is not fully equipped with latest technology.
3. They did not give sufficient details about the finance department.
4. Employees are not ready to give real feedback about the company due to fear that
the feedback will be passed on top management.

LIST OF DEPARTMENT

PURCHASE DEPARTMENT
SUPPLY CHAIN DEPARTMENT
FINANCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT
PRODUCTION DEPARTMENT
MARKETING DEPARTMENT
QUALITY CONTROL DEPARTMENT
SALES DEPARTMENT
INVENTORY DEPARTMENT

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2.3 OVER ALL DEPARTMENT STUDY
PURCHASE DEPARTMENT
Most of the department rural people especially women make their livelihood by
rearing milk animal and by supplying milk to t the co-operatives. Keeping this in view in
view and to improve the rural economy and to enhance the personal income of the stake
holders in rural, area, Government of Tamilnadu co-operative milk producers Federation and
District co-operative milk producers Union to raise the procurement price of the cows milk
from Rs.12.00 to 14.08 per litter and that of the buffalos milk from Rs.14.00 to 18.00 with
effect from 10.03.2015 and the milk cost as per the revised procurement price is being is
being disbursed to the milk producers.

MILK PROCUREMENT
AVERAGE MILK PROCUREMENT (1,83,000)
MAXIMUM MILK PROCUREMENT (22,21,072)

Supply Chain Management:

Supply chain management is a cross-fictional approach including management the
movement of raw materials into the organization, certain aspects of the internal processing of
material into finished goods and the movement of finished goods out of the organization and
towards the end-consumers. The purpose of supply Chain management is to improve trust
and collaboration among supply chain partners. There are above 50 employees under this
department.
SUM ensures the coordination among the department through effective
communication for achieving ultimate goal. There are around 40 to 50 litters and vans to
procure and supply the milk. The transport details are maintained maintained in a separate
record by the administrative office.

FINANCE DEPARTMENT

Monthly income 25,00,000

Annual income 30,000,000
Customer
receiving cost monthly twice days

Average milk procurement in DCMPUs in laky liters per day:

Year 2010-200217.49
Year 2011-200315.79
Year 2012-200417.26
Year 2013-200520.56
Year 2014-200621.59
Year 2015-200722.10
Year 2016-200821.64
Year 2017-200922.00
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 The finance department of the business takes responsibility for organizing and
accounting affairs they including the preparation and presentation of appropriate accounts,
and the provision of financial information for management for managers. It is responsible for
preparing Journals, ledgers, statements like trial balance, balance sheet cash flow statement.
It is also in charge of the calculations of the income tax also the payment at the right
time. The finance department had got 40 employees in the corporate office and around 65
employees outside the firm to support their activities. The finance department of Aavin Milk
product Union Ltd, Villupuram is headed by Mr.Gurumoorthy. The department allocates
funds for procurement of raw milk animal husbandry; process the milk (production),
packaging and distribution (transport), compensation, environment maintenance.

Cost element:
1. Raw milk procurement - cost of raw milk; labor; materials etc. ;collection margin
2. Transportation - Transport cost; labor; materials and equipment; transport margin
3. Processing - Raw materials; machinery and equipment; labor; packaging;
energy; taxes; marketing and distribution.
4. Marketing and distribution- Transport; labor; materials; rent; retail margin.

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HUMAN RESOURCE DEPARTMENT
The department assure that the organization will have adequate number of qualified
persons, available at the proper times, performing jobs which meet the needs of the
enterpriser and which provide satisfaction to individuals involved. Its function is to develop
an organizational sub units musts be strong and contribute to organization, health, dynamism
and employees pride. There are totally 167 employees working in Aavin Milk producers
Union Ltd, Villupuram.

Recruitment & Selection:

The employees are recruited by help of employment Exchanges by means of both
private and public.
The company provides applicable wages, salary and Incentives are provided.
HR Manager ensures the behaviors of employees through a visit inside the factory
once in a month.

Duties of HR:
Position summary:
Human resource rotated duties at the professional level and may carry out
responsibilities in some are all of the following functional areas:
1. Recruitment.
2. Employee relations.
3. Training and development
4. Compensation.
5. Benefits.
6. Safety Program.
7. Affirmative action and
8. Employment Equity Programs.

Duties and Responsibilities:

1. Identifies legal requirement and government reporting regulations affecting human
resources functions and ensure policies, procedures and reporting are in compliant.

2. Participates in developing departments goal, objectives and system.

3. Prepares and maintains employee handbook, policies and procedure manual.

Knowledge and skills:

Considerable knowledge of principles and practices of personnel administration,
effective oral and written communication skills, excellent inter personal skills, ability to
organize and prioritize work.

Leave policies:
Attendance and leave policies of the company. One of the employees in the year 15
days with salary in EL. (Earned leave)

Sick leave.
For 1 year-25 days for staffs executives.

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Registers maintained in personnel department:

Register of leave with wages

Register of audit workers
Register of specially trained, Audit, Male Workers
Register of employees placed under suspension
Register of accidents
Register of must roll for the month
Register of overtime muster roll for exempted for the month(from-No 10)
Register of workmen (from-1)
Provident fund
ESI
Professional Tax

Training and Career Development

Training and career development provides valuable information required to identify
needs, design training programs and to evaluate training effectiveness. A clear idea of what is
required on a job helps in deciding what is to be learn and how.
The training and career development of the company is:

Food safety
Hygiene
Quality Awareness
General, induction, fire safety.

Trade unions:
Trade unions are held for the employees protection and safeguard of his career. Two
trade unions are in SVS.

No. Of workers:

Permanent workers 175

Executives -5
Contract labors -23

Workers Shift Timings:

Three shifts namely A, B, C conformably all hours work.
Permanent works:

A shift 6.00am to 2.00 pm

B shift 2.00pm to 10.00pm
C shift 10.00pm to 6.oo.am

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PRODUCTION DEPARTMENT
Product 1: Milk (Toned and Standardized)
Milk is a perishable commodity. For this reason, it is usually processed locally within
dairy cows are milked twice a day using mechanical vacuum milking machines. The raw milk
flows through stainless steel or glass pipes to a refrigerated bulk milk tank. A few hours of
being collected. In the United States, there are several hundred thousand dairy farms and
several thousand milk processing plants. Some plants produce only fluid milk, while others
also produce butter, cheese, and other milk products.

Collecting:
Dairy cows are milked twice a day using mechanical vacuum milking machines. The
raw milk flows through stainless steel or glass pipes to a refrigerated bulk milk tank where it
is cooled to about 40 F(4.4 C).
A refrigerated bulk tank makes collections from dairy farms in the area within a few
hours. Before pumping the milk from each Farms tank the driver collects a sample and
checks the flavor and temperature and records the volume. At the milk processing plant, the
milk in the truck is weighed and is pumped into refrigerated tanks in the plant through
flexible stainless steel or plastic hours.

Separating:
The cold raw milk asses through either a clarifier or a separator, which spins milk
through a series of conical disks inside an enclosure. A clarifier removes debris, some
bacteria, and any sediment that may be present in the raw milk. A separator performs the
same task, but also any separates the heavier milk fat from the lighter milk to produce both
cream and skim milk. Some processing plants use a standardize-clarifier, which regulates the
amount of milk fat content in the milk by removing only the excess fat. The excess milk fat is
drawn off and processed into cream or butter.

Fortifying:
Vitamins A and D may be added to the milk at this by a peristaltic pump, a clarifier
removes debris, some bacteria, and any sediment that may be present in the raw milk. The
milk is then fortified and pasteurized which automatically dispenses the correct amount of
vitamin concentrate into the flow of milk.
Pasteurizing:
The milk either whole milk, skim milk, or standardize milk is piped into a pasteurizer
to kill any bacteria. There are several methods used to pasteurize milk. The most common is
called the high temperature, short-time (HTST) Process in which the milk is heated as it
flows through the pasteurizer continuously. Whole milk, skim milk, and standardized milk
must be heated top 161 F (72 C) for 15 seconds. Others milk products have different time and
temperature requirements. The hot milk passes through a long pipe whose length and
diameter are sized so that it takes the liquid exactly 15 seconds to pass whose length and
diameter are size so that it takes the liquid exactly 15 second to pass from one end to the
other. A temperature has fallen below the required standard.

17
Homogenizing:
Most milk is homogenized to reduce the size of the remaining milk Ft Particles. This
prevents the milk from separating and floating to the surface as cream. It also ensures that the
milk fat will be evenly distributed through the milk. The hot from the pasteurizer is
pressurized to 2,500-3,000 psi (17,500-20,700 Kpa) by a multiple-cylinder piston pump and
is forced through very small passages in an adjustable valve. The shearing effect of being for
Through the tiny openings breaks down the far particles into proper size. The milk is then
quickly cooled 40 F (4.4 C) to avoid harming its taste.

Packaging:
The milk is pumped into coated paper cartons bottles and is sealed. In the United
States most milk destined for retail sale in grocery stores is one-gallon (3.8liter) plastic
bottles. The bottles or cartons stamped with a sell by date to ensure that the retailers do not
allow the milk to stay shelves longer than it can be safely stored.
The mill cartons or battles are placed in protective shipping containers and kept
refrigerated. They are shipped to distribution warehouses in refrigerated and then on to the
individual markets, where they are kept in refrigerate trailers and then on to the individual
markets, where they are in refrigerated display cases.

Cleaning:
To ensure sanitary conditions, the inner surfaces of the process equipment and piping
system are cleaned once a day. Almost all the equipment and piping used in the processing
plant and on the farm are made from stainless steel. Highly automated clean- in-place system
and then flushed clean. This is done at a between the normal influx of milk the farms.

Product 2: Butter:
The unique mixture of fast on butter allows it to stay solid at room temperature and
melt at approximately 90 degrees Fahrenheit. The natural color of butter ranges from white to
pale yellow depending on the animal that produced the milk. Commercial butter is usually
color yellow with annatto or carotene to fulfill consumers expectations of yellow butter.
The pasteurized milk is sent to the heater and boiler to obtain a steamed butter. Butter
should be kept refrigerated below 40 degrees Fahrenheit to protect against rancidity.
Reducing exposure to oxygen and light by storing butter tightly wrapped and in a dark place
(such as a refrigerator) will also delay rancidity. Keeping butter tightly wrapped is also
important to protect it from absorbing rou flavors.
At refrigerated temperatures, butter will stay fresh for to four months. Butter can also
be frozen and kept fresh for up to a year. At room temperature the length of freshness will
depend on the butters.

Product 3: Ghee:
Ghee-Ghee, or clarified butter, is produced by heating butter until the water
evaporates off and the proteins separate from the fat. The resulting product is almost 100
percent butter fat. Ghee, which has a unique flavor flavor, is a popular ingredient in Middle
Esteem cuisine. The cream has been separated from the pasteurizes milk using Cream

18
Separator. Then the cream is converted into Ghee using heated and Boilers. The ghee will
appear yellow in color at the final stage.

Product 4: Milk-Khoa:
Khoa is made by simmering full in an iron karahi for several hours, over a medium
fire. The gradual vaporization of its water content leaves coagulated solids in milk, which is
Khoa. The ideal temperature to avoid scorching is 175-180 F(about 80 C).[2] Another quick
way of making Khoa is to add full fat milk power to skimmed milk and mixing and heating
until it becomes thick. This may, however, not have the same characteristics as traditionally
made Khoa.

Product 5: Skimmed Milk Powder:

Powered milk is usually made by spray [6] nonfat skimmed milk, whole milk,
buttermilk or whey. Pasteurized milk is first concentrated in an evaporator to approximately
50% milk solids. The resulting concentrated milk is then sprayed into a heated chamber
where the water almost instantly evaporates, leaving fine particles of powdered milk solids.
Alternatively, the milk can be dried by drum drying. Milk is applied as a thin film to
the surface of a heated drum, and the dried milk solids are scraped off. However, powdered
milk made this way tends to have a cooked flavor, due to caramelization caused by greater
heat milk made this way tends to have a cooked flavor, due to cartelization caused by greater
heat exposure
Another process is freeze drying, which preserves many nutrients in milk, compared
to drum drying. [Citation needed]
The drying method and the heat treatment of the milk as it is processed alters the
properties of the milk power, such as its solubility in cold its flavor, and its bulk density.

ENGINEERING DEPARTMENT
An engineering department will carry out any repairs necessary on exiting tooling,
make new tools jigs fixtures that are required, and even possible handle production. The
department is staffed by several electrical engineers and also enhances for controlling tools
and erumpent. The engineers incorporate efficient industry proven machine control
techniques when aligning control system. There are both PLC and based control system.

MARKETING DEPARTMENT
The marketing department is headed by Mr.B.Raavanan. The importance of
marketing department can be marketing research, new product marketing, sales management,
physical distribution (marketing logistics), and marketing administration. As organization
become big more specialized functions within marketing can be organized as independent
sections.
Geographical Area Based Organization: Companies selling across the nation generally set
up branch sales offices and regional sales offices.

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Product Based Organization (Brand Management): In product based organization each
product or brand has a manager who looks after its marketing activities. The sales staff can be
common staff and they report to a sales manager.
The main functions of marketing department in Aavin Milk producers Union Ltd,
Villupuram are:

To integrate an organizations pricing core messages, and products into one cohesive
document known as the marketing strategy.
The department is now ready to take on the responsibility of executing the programs
and initiatives to drive sales and revenue for the organization.

Metro Liquid Milk Marketing:

Through this type by marketing the company providing toned milk and double toned
milk to the customers.

Metro Milk Product Marketing:

It is a type of marketing undergone by the company for providing ghee, milk khoa and
milk powder. The company markets the product through:
Agents.
Sale booths:
There are 5-10 sale booths around Villupuram
The sale booths are controlled by Zonal offices.
Milk Cards are provided for Regular customers.
Automatic.
The quality control department was headed by Mr. V. Pramoth Kumar. To Access the quality
of milk this department this carries out various quality tests.
Raw milk is tested before processing using:

Fat Analysis Cerebra Test:

This test identifies the fat content present in the milk.

Bacteriological Test:

This test is undergone to remove bacterias and other fungus from milk
This test also known as Reduction test.
SSM Separator is used to test the quality of the processed milk.

Lactose Test:
It is used to determine the lactic acid concentration in milk and milk product since its
value has to be kept under fixed law limits.

Chloride Test:
It is used to measure the quality of salt in different dairy products.

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Ammonia Test:
It is used to measures the ammonia concentration and it determine the good quality
milk. Ammo acid degradation of soft cheese.

Percentage of fat in milk:

Products Milk Fat Percentage SNF Percentage

High protein milk 3.0% 9.0%
High fat milk 5.0% 8.5%
Toned milk 3.0% 8.5%
Standardized milk 4.5% 8.5%
Double toned milk 2.0% 9.0%
According to the fat and FAT content the type of milk explained in the about table are
packed in the blue, green and red color pocket respectively.

SALES DEPARTMENT
The main functions of the dairy development department include organization of
societies, registration of societies, supervision and control of primary control of primary
milk cooperatives, district cooperative milk producers union and Tamilnadu cooperative milk
producers federation.
The dairy development department excises statutory function-like inquiry, inspection,
surcharge and super session, appointment of special officers, liquidation and winding up of
dormant societys etc. The commissioner for milk production and dairy development, deputy
milk commission (CO-OPERATION), and circle deputy registrars (dairying) are vested with
quasi-judicial powers in respect of settlement of disputes, appeal, revision and review under
various provisions of Tamilnadu cooperative societies Act, 1983 & the Tamilnadu
cooperative societies rules, 1988 made there under.
The commissioner for milk production and dairy development has been designated as
the state registering authority for the state of Tamilnadu, under the provision of milk and milk
products order92. All the dairy units including private dairies handling more than 10,000 lpd
of milk products containing milk solids in excess of 500 metric tons per annum have to obtain
The commissioner for milk production and dairy development / state registering
authority has been conferred with powers to register the dairy units having handling capacity
from 10,000 lpd to 2, 00, 000. The commissioner/ state registering authority, deputy milk
commissioner (co-operation)/district collectors and deputy registrars (dairying) have
authorized to carry out supervision periodic inspection of the dairies.

INVENTORY DEPARTMENT
The union is functioning with the main dairy at Villupuram and two chilling centers at
Chinnasalem-Villupuram district another at sethiapuramthope, Cuddalore, Villupuram dairy
has having the chilling capacity of 100000 liters per day
There are 17 district cooperative milk producers unions functioning in the state of
Tamilnadu covering 30 districts. There are 15 dairies in district co-operative milk producers
unions with an installed processing capacity of 19.42 llpd. There are 36 chilling centers
(FUNTIONAL) in district co-operative milk producers unions with installed chilling
capacities of 13.55 llpd.

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 1) Establishment of chilling centers
2) Formation of new milk routes to collect milk produced by the members of the
societies.
3) Collection of milk from societies, process and pack in made dairy plants by
maintaining quality standards.
4) Supply of quality milk to Chennai metro under hygienic conditions.
5) Fixation of procurement and selling price of milk
6) Supply of input to the members of the societies.
7) Increase of liquid milk sales by introducing innovative sales promotional activities.
8) Extending artificial insemination devices to the cattle owned by the members of milk
cooperative societies.
9) Providing milk cans, milk Attesters and LN2 containers.
2.4 DEPARTMENT: Finance department

DETAILS OF TRAINING UNDERGOING:

It is headed by General Manager and controlled by deputy manager of Accounting
and Finance they are assisted by an executive officer and junior executives.
FUNCTION
The accounting department functions are the transaction to purchase and sales are
recorded in the accounts book. The accounts are prepared under the finance department only.
Cash is received in the evening and the amount is banked in the next day morning. All the
payments are mostly paid by cherubs. Input cost of the product is calculated by account
department.

2.5 DEPARTMENT: Product department

DETAILS OF TRAINING UNDERGOING:

As observed from the production unit, production department is lead by general
manager and is controlled by manager dairy; he is assisted by engineer. Under junior
engineer the following personal are working. Electrician, mechanic, operator and boiler man.

PRODUCTION PROCESS
I got explanation from the employee that the raw milk is collected from the societies
and sample is taken by laboratory staff.
For testing the FAT and SNF content in milk. If FAT and SNF content. After adding
SMP (skimmed milk powder) to the milk it will undergo the pasteurization process. In
pasteurization process 5 plate is used. In first plate milk is heated by hot water steam at 73.5 c
to 80 c. A single plate contains number of small plates. In this milk in flowed in between one
plate simultaneously in another side hot water is flowed in another side.
In second, third and fourth plate process is undergoes ice water passed through.

PASTEURIZATION
Pasteurization is the process of heating or foods to kill microorganisms (such as
Rubella, campylobacter, E. Clio 057; H7, Wisteria, bovid, salmonella, and Yesinia) that can
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causes disease. It was developed by Louis Pasteur in 1864 and the practice became
commercializes around the late 1800s and early 1990s. In addition to improving consumer
safely, pasteurization can improve the quality and shelf life of foods.
2.6 DEPARTMENT: Production department

DETAILS OF THE PRODUCTION:

FLOW CHART OF THE PRODUCTION:

Reception

Chilling Below 4 degree

Silos

Standardization

Pasteurization

Homogenization

Storage tank

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DEPARTMENT: Production department

DETAILS OF TRAINING UNDERGOING:

METHODS FOR PASTEURIZATION:
High Temperature Short Time Treatment: Milk is pasteurized at 161 F for 15 sec.
Low Temperature Long Time Treatment: Milk is pasteurized at 145 F for 30 sec.
Flash pasteurized: This type of pasteurized, which involves high temperature for 3 to
15 second followed by cooling and packing, is used for drink boxes and other liquid
that can be stored for long period of time without refrigeration.
Steam pasteurization: pressurized steam is used to kill E. coli, salmonella and
Wisteria in beef carcasses.

MYTHS AND FACTS ABOUT PASTURIZATION:

Myth: pasteurization reduces the nutritional value of milk.
Facts: Sterilization f milk does break down some of the components of milk but the
actual effect on nutrition milk considered marginal.
Myths: pasteurization milk causes lactose intolerance.
Facts: Lactose is the natural sugar found in milk. Both raw pasteurization milk contain
lactose, and pasteurization does not change the levels of lactose. Raw milk advocates
argue that raw milk contain bifid pectin probity, it result from contamination from
animal face and is not considered beneficial.

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DEPARTMENT: Production department

DETAILS OF TRAINING UNDERGOING:

OBJECTIVES AND STRATEGIES OF PRODUCTION DEPARTMENT:
Improvement in milk production:
To increases milk procurement from 46 LLPD through organized sector and from 30
LLPD to 42 LLPD through Co-operative sector.

STRATEGIES:
Potential MPCS will be identified, strengthened and milk procurement will be
increased. The milk collection/bulk milk routes be reorganized and the milk collection area
will be increased.
The identity of the MPCS will be established and dormancy will be down. New
MPCS minimum @250 per annum will be organized. 60 NEW Bulk milk coolers will be
installed in uncovered areas. New Building will be constructed in the above BMC centers.
Society infrastructure to handle milk hygienically will be supplied to the MPCS. Pourer
members and milk production per member will be increased.

STRATEGIES
Small cattle fed mix unit will be establish at strategies places and the availability of
cattle feed at a reasonable price will be ensured. The societies will be allowed develop fodder
cultivation for their requirement. To purchases high breed animals from government cattle
farms, scheme will be formulated. Calf rearing scheme will be introduced.

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2.7 DEPARTMENT: Quality control department

DETAILS OF TRAINING UNDERGONG:

The quality department I headed by general manager and he is assisted by manager
DC and two lad technical.

Quality control

Manager diary

Technician

FUNCTION:
Quality manager explain that the raw milk will be sent to the lab for testing the
fat content and SNF using LACTOMETER. This lactometer test is show by using the sample
Lactometer reading is found out and account to the temperature of milk. The process of
testing stats by taking sample of 10 ml of milk from each member societies and that 10 ml
milk is dropped into dropped into pyrometer with that 10 ml od diluted H2SO4 (Sulphuric
acid) and 1 ml of any alcohol is added. Then we have to shake well and insert the meter in
CENTRIFUGE MANCHINE. The machine will revolve with pyrometer by this process the
fat is separated.
Using fat, lactometer temperature reading SNF is calculated by formula
SNF=CLR*0.36+ (f*2)
4
Where,
CLR Correct Lactometer Reading
According to the quantum of fat and SNF price will be determined money will be paid to
societies. Normally milk will be packed if fat content not less than 8.5% then they will add
skimmed milk powder according to the need. The union is supplying milk to the public with
3.0% & SNF for toned milk and 6.0% fat and 9.0% SNF for full cream milk.

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DEPARTMENT: Quality control department

DETAILS OF TRAINING UNDERGOING:

After pasteurization milk is send to the lab for testing the quality test 24 sample will
be taken to the lab.
IF FAT %> 8.0
The milk will be rated high. According to the quality money will be given by the
company to the society.
IF FAT %< 7.5
Then the milk considered s water. Society will not gain money. Quality milk the will
be proceed to the production unit. Then the empty by clean in the following process only.

Raw water

Lye water

NO2 acid

Lye water

Hot water

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DEPARTMENT: Quality control department

DETAILS OF TRAINING UNDERGOING:

METHYLINE BULE REDUCTION
After pasteurization milk will be sent to the lab for testing quality of milk, in test tube,
10 ml pasteurized milk and 1 ml ethylene blue reduction are taken then the solution will
changes blue color. The test tube is closed with cork in an up and down motion with the
solution 3 times. Finally test tube is kept in the serological water path and heated are 37.5C
temperature for this process sun light is avoided every half an hour, color of solution is noted.
If blue color is changed before 3 hours the quality of milk is considered as low therefore into
white color after 3 hours. Then the milk is taken as quality one.
The following reports are maintained in this department namely.
Monthly by products report
Fortnight report
Mil parlous report
Agent order advance report
Monthly purchase report

DEPARTMENT: Quality control department

DETILS OF TRAINING UNDERGOING:

STORE DEPARTMENT
It is headed by General Manager and controlled by an executive officer and store
keeper. The receipt of material received is maintained and the polyfilm skimmed milk
powder, sugar and spare parts are stored in this department for future use.
In the store department the equipment are purchased from the companies are from
sellers and a register is maintained for this purpose.

REPORT MAINTAINED
Item purchase statement
Current stock
Store register

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3.1 MANAGERIAL SKILL DEVELOPED

Input and procurement department: technique and condition for procuring milk.
Production department: production process and to preserve the milk.
Quality department: technique to check the milk in different methods in any stage
and how to maintain standard of the milk.
Administration department: To satisfy the employees, to check the behavior of the
employee and manage the human wealth.
Marketing department: carry in cash strategy and to distribute the product.

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3.2 FINDINGS
The following items are which I observed from the Aavin through organization study from
01.06.2017 to 15.06.2017
There are some problems in Aavin. They are as follows:
Over employment-reason(human resource department)
No employee fill in the organization
Due to political influence, Aavin facing over employment. Few years back they faced same
problem at that time, they utilize the employees by opening new production centre. They
cant dismiss the employers.
High expense(production department)-reason
They incurring high expense in production only for example if they dont do pasteurization
well means they do again so it increases time and money.
Lack of training in handling major problem in machine (maintenance department)
They handle only small problems in machinery and they dont know to handle the major
problem, if there is major problem means they need to get help from the company where they
bought the machinery. They bought machinery from Gujarat and Hyderabad.
Loss and cash deficiency (finance department)
At present, Aavin facing heavy loss due to over employment and high expense in
company.
Cardinal relationship(quality control department)
There is no cardinal relationship between quality control department and production
department employers. So that quality control department faces difficulty in getting milk
samplings.

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3.3 SUGGETIONS TO THE COMPANY
The following points are suggestion to the company to solve the problems:
Aavin cant dismiss the excess employees so, that Aavin can open new plant like
mineral water to utilize them properly
Six month before they stop supplying cow milk to reduce the loss, they demand the
government to increase the price of the milk.
So government issued the order to increase the price of cow milk-this will reduce their
loss.
The company should try to get profit in future so that they should increase the sale
and reduce the cost.
Management can give training to the maintenance department employees to handle
the machinery.
And also they can conduct any development program about the importance of quality
control department so, that quality control department will not face any problem in
getting sampling.

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3.4 CONCLUSION
Aavin a firm that has been able to prove its strength in the dairy industry. The company
has been to cover all types of customer in Tamilnadu. Aavin having excellent processing
product among the competitor. It is concluded that there will be a high demand for their
existing and new products in future. So the company should concentrate more on increasing
supply and to increase the Aavin Parlour so that demand and supply will match.

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BIBLIOGRAPY
BOOKS
Stephen p robins, organization behavior, PHI learning/person education, 11 the
edition,2008
Udaipareek, understanding organization behavior, 2nd edition, oxford higher
education, 2004

WEBSITES
http//www.indiadairy.com
http//www.aavinmilk.com

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