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EXECUTIVE SUMMARY
An efficient organisation is essential for the success of a business enterprise. The defining of
duties and fixing responsibilities of all employees in the organisation is essential. An
effective organisation system ensures proper supervision and control. Organisation is the
mechanism which determines the relationship of various persons. With the help of a well
defined management is able to perform the functions of direction, co-ordination and control.
An ill-defined organisation plan will not enable the management to make an effective
exhibition of its managerial talents to realise business goals. An organisational study was
conducted in Milma, Ermakulam Dairy to know the real functioning of an organisation.
In this study primary and secondary data were the main sources of information. Here the
primary data are collected through an interview method with the managers of the concerned
department. Then interactions with the plant workers were done in order to collect data
regarding the processing of the plant. Secondary data are collected from websites, newspaper,
and magazines.
To know the interrelation of all departments with each other and the Dairy Manager.
There is good coordination between the Dairy Manager and the departmental heads.
The Ernakulum Milma unit planning to implement thumb punching system for
attendance taking.
There are certain areas to improve such as to implement R& D department for
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
The HRD dept should try all efforts to implement the thumb pressing system instead
Majority of the office staff were busy during study conducted, hence less information
All the plant workers and the officers were not met due to different time shifts.
The organization study at Milma was done with an objective to understanding how an
organizational functions, what are its major departments and functioning of these
departments. The study at Milma provided the opportunity to learn the organizational goals
and objectives, various department that conduct critical functions and the interrelation
between them.
The organization Milma has established different departments based on functions like
procurement, production, human resource, marketing etc. It ensures quality of product
through established systems which are monitored by quality control department. Finally the
project enabled understanding of an organizational and its objectives and how they function
to achieve organizational objectives.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
INTRODUCTION
Present business system is very complex. The firm must run efficient to stay in the
competitive world of business. Various jobs are to be performed by persons most to suitable.
Manager who knows how to make effective use of their resources can make any
organisational design or pattern work efficiently. A manager has to create the right conditions
to enable the employees to efficiently utilize the resources of the organisation to achieve
organisational goals. He has to make the employees understand the necessity of cooperation
for accomplishing tasks. Employees should understand their roles and responsibilities and
should work together to achieve the organisational objectives. This applies to any
organisation – business, government, or a football team. For a subordinate to understand his
role, a manager must provide verifiable objectives and a clear picture of the major duties to
be performed. The manager must also specify subordinates ‘authority and responsibility. This
gives the subordinate idea of what he must do to achieve the goals and objectives of the
organisation. In addition, a manager should provide the subordinates with necessary
information and tools for efficiently performing their roles.
Organising refers to the process of bringing together physical, financial and human
resources and establishing productive relations among them for the achievement of specific
goals. It is concerned with building up a stable framework or structure of various interrelated
parts of an enterprise, each part having its own function and being centrally regulated. The
aim of organising is to enable people to relate to each other and to work together for a
common purpose. The organised group of people in a collective sense are known as
‘organisation’.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Planning is the process of deciding in future the activities to be done .it includes
plans, targets, and so on. Organising is confined with the activity of organising the
requirements of a firm to implement the plans which are formulated. Staffing is another
important process of appointing required employees to particular positions to work as per the
plans of the organisation. To do work as per the plans it needs directions, so directing is
another process. And last to see whether the actual performances of the activities are per the
plans controlling process is done. So if any deviations are there it can be located and reasons
are found out for that and been rectified as per the plans formulated. Such a situation is
prevalent in Milma, Ermakulam Dairy. Thus an Organisational Study was conducted which
enables to know the real functioning of an organisation.
1.2 OBJECTIVES
There are two objectives. There are primary and secondary objectives,
Primary objective
The study is conducted to get familiarise with the functioning of the organisation.
Secondary objective
To know the functions of all departments.
To know the interrelation of all departments with each other and the Dairy Manager.
Milk production
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Primary Data
Primary data are collected for the first time and are original in character. Here the
primary data are collected through an interview method with the managers of the
concerned department. Then interactions with the plant workers were done in order to
collect data regarding the processing of the plant.
Secondary Data
Secondary data are those which have already been collected by some other persons
and which are passed through the statistical machines at least once. Data are collected
from websites, newspaper, and magazines.
1. Majority of the office staff were busy in the time of study conducted, less information
2. All the plant workers and the officers were not met due to different shifts.
3. It was found that some plant workers did not reveal certain information due to fear
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
INDUSTRY PROFILE
The international dairy federation, with its head quarters Brussels, was established in
1903 and consists of 32 member countries throughout the world.
UNICEF has been the motivating force for establishing a dairy industry in many under
developed countries. One of these is in India, where large modern processing plants have
been set up to process locally produced milk or to reconstitute milk from donated or
purchased milk fat and powder. Domestic milk production has increased in India and a part of
the pasteurized milk is provided free to children in the larger cities through UNICEF.
The first co-operative artificial breeding association was organized in Denmark in 1936.
There are now many such associations which helped the diary industries. After 1950s dairy
industries faced a wide range of development throughout the world.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
National Dairy Development Board was developed by the Government for the purpose of
organising, planning and executing the dairy development programmes in the country. This
board, with the help of government, got assistance valuing Rs. 120 crores under flood
programmes. Under this scheme financial assistance was provided to various state
governments and other agencies for implementing development scheme.
OPERATION FLOOD
Operation Flood is an important move in the history of dairy development in India. Operating
Flood was conceived and formulated by National Dairy Development Board during the fourth
plan. It aimed at establishing a broad base for acceleration and development of the dairy
industry sponsored by the European economic community through world food programme.
Operation Flood was conducted to meet India’s rapidly increasing need for milk and milks
product, and making dairy industry capable of viable and self-sustaining growth. The
ideology followed by Operation Flood was the remunerative linking of the rural milk
production centre with the urban demand centre so as to build up a viable dairy industry.
2.4 COMPETITORS
Milma holds more than 45% market share, who is the front leader in the market. There are
more than 30 competitors in Kerala against Milma.
Some of other competitors are:
K.C.A Malanadu
A1 Milk Nirmalgram
Ambady Surya
P.D.DP Penta
Royal Pooja
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Figure 2.1
OTHERS
39%
MILMA
45%
A1 MILK K.C.A
7% 9%
Table 2.1
PRODUCT CONSUMPTION
Curd 2000litres/day
Source: Thiruvananthapuram Regional Co-operative Milk Producers' Union Ltd Report, 2009-10
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2.5REGULATORY FRAMEWORKS
(i) Milk and Milk Products Order, 1992:The production, distribution and supply of
milk products are controlled by the Milk and Milk Products Order, 1992. The
order sets sanitary requirements for dairies, machinery, and premises, and includes
quality control, certification, packing, marking and labeling standards for milk and
milk products.
Standards specified in the order also apply to imported products. The Department
of Animal Husbandry, Dairying and Fisheries at the Ministry of Agriculture is the
regulatory authority.
(ii) Essential Commodities Act, 1955: The main objective of the Act is to regulate
the manufacture, commerce, and distribution of essential commodities, including
food. A number of Control Orders have been promulgated under the provisions of
this Act.
(iii) Standards of Weights and Measures Act, 1976 and the Standards of Weights
and Measures (Packaged Commodities) Rules, 1977: The Act governs sale of
packaged commodities and provides for mandatory registration of all packaged
products in the country.
(iv) Consumer Protection Act, 1986: The Act provides for constitution of District
Forum/State/National Commission for settlement of disputes between the
seller/service provider and the consumer.
(v) The Insecticide Act, 1968: The Act envisages safe use of insecticides so as to
ensure that the leftover chemical residues do not pose any health hazard.
(vi) Export (Quality Control and Inspection) Act, 1963: The Act aims at facilitating
export trade through quality control and inspection before the products are sold to
international buyers.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
(vii) Environment Protection Act, 1986: This Act incorporates rules for the
manufacture, use, import and storage of hazardous microorganisms / substances /
cells used as foodstuff.
(ix) Industrial Licences: No licence is required for setting up a dairy plant in India.
Only a memorandum has to be submitted to the Secretariat for Industrial
Approvals (SIA) and an acknowledgement obtained. However, a certificate of
registration is required under the Milk and Milk Products Order (MMPO), 1992.
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The National Dairy Development Board (NDDB) was created in 1965, fulfilling the
desire of the then Prime Minister of India - the late LalBahadurShastri - to extend the
success of the Kaira Cooperative Milk Producers' Union (Amul) to other parts of India.
That success combined the wisdom and energy of farmers with professional management
to successfully capture liquid milk and milk product markets while supporting farmer
investment with inputs and services. The major success of this mission was achieved
through the World Bank financed Operation Flood, which lasted for 26 years from 1970
to 1996 and was responsible for making India the world's largest producers of milk. This
operation was started with the objective of increasing milk production, augmenting
farmer income and providing fair prices for consumers.
NDDB has now integrated 96,000 dairy co-operatives in what it calls the Anand Pattern,
linking the village society to the state federations in a three-tier structure.NDDB
launched its Perspective Plan 2010 with four thrust areas: Quality Assurance,
Productivity Enhancement, Institution Building and National Information Network.
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COMPANY PROFILE
3.1 HISTORY
3.2 (b)Objectives
To channelize marketable surplus milk from the rural areas to urban deficit areas to
maximize the returns to the producer and provide quality milk and milk products to
the consumers.
To carryout activities for promoting Production, Procurement, Processing and
Marketing of milk and milk products for economic development of the farming
community.
To build up a viable dairy industry in the State.
To provide constant market and stable price to the dairy farmers for their produce.
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3.3 Strategy
The Motto of Co-operation,"of the people, by the people and for the people" is the foundation
of the "three tier system" followed by the organisation. At the village level Milma have the
Village Milk Co-operative Societies which have the local milk producers as its members.
These Village Co-operatives unite at the Regional level and form Regional Co-operative Milk
Producers' Unions. These Unions are federated at the State level to form State Federation
namely Kerala Co-operative Milk Marketing Federation(KCMMF).
3.4 Associates
Milma is in constant touch with other Organizations in this sector. It is only through this
active exchange that Milma grew from a small dairy co-operative to the position it holds in
Kerala today.
Cheif associates are:-
Amul
The Dairy Co-operatives of Gujarat have been the inspiration for the development of
such a vast network of dairy co-operatives in Kerala. Among the co-operatives in
Gujarat, the Kaira District Co-operative Milk Producers' Unions (Amul) is the the first
in this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies"
following the illustrious lineage of "Amul".
Government of Kerala
The Phenomenal success of the Dairy Co-operatives in Kerala could not have been
achieved, without the foundation of animal husbandry activities, led by the Animal
Husbandry Department, Dairy Development Department and Kerala Livestock
Development Board, of the Government of Kerala.
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Projects
Planning and execution of projects for creating infrastructure for Regional Milk
Unions and KCMMF
Providing consultancy for execution of projects
Liaison with statutory authorities like Factories and Boilers, Electrical Inspectorate,
Dept.of Explosives etc for obtaining approval and implementation of projects
Liaisonwith Government for land allocation, water, power and other amenities
Estate management and assistance in maintenance of Plant & Machinery of KCMMF
Units
Computer
Maintenance of Systems at KCMMF, Units and Regional Milk Unions
Conducts Training programs for development of computer skills
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Milma is the trade mark of the Kerala Co-operative Milk Marketing Federation Ltd, which
is the apex Co-op of three regional milk Unions viz. Thiruvananthapuram (TRCMPU),
Ernakulam(ERCMPU) and Malabar (MRCMPU).
Performance of KCMMF
Milestones
Federation and all the three Regional Milk Unions joined hands with NDDB to be a
part of the national stream to promote co-operative brand. In the wake of competition
from private sector, KCMMF and the Regional Milk Unions readily accepted the well
planned Marketing Strategy of NDDB and the mnemonic symbol of NDDB was
introduced in the milk pouches in the State. Kerala is the first federation to adopt the
mnemonic symbol throughout the State.
The year 2007 was a landmark year for milk production in the country,which reached
a new high. At over 100 million tonnes, milk output has breached the magical three-
digit level, making India the world’s second largest producer, after the European
Union (154 million tonnes) and accounting for nearly 15 per cent of the world
production of 675 million tonnes. The milk prices in India have been rising primarily
because economic growth and demographic pressure have pushed demand higher.
Prices also edged up because of the country’s entry into the international market for
skimmed milk powder. High milk powder prices led the government to even place an
embargo on its export. Being milk deficit State, the year 2007-08 was a turbulent year
to Kerala and our dependency on other States have increased. With the active co-
ordination and involvement of Regional Milk Unions Milma could get through the
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problems faced by our organization in this front and we could meet the demand for
milk from our esteemed consumers.
27 years ago, we responded to the challenges that threatened dairying in our State by
implementing the Operation Flood program with the active supportand assistance of
the National Dairy Development Board. NDDB guided in taking up us the challenges
with a program that contributed significantly to creating the self-reliant, vibrant dairy
industry that now greatly benefits millions of rural households across the country.
Though, milk price was increased twice during the financial year and we passed on
nearly 70% of the increased consumer rupee to the farmer s, still our members are
struggling to continue in the profession due to spiralling cost of production. We would
believe that what the milk producer seeks to achieve by engaging his time and energy
in milk production is a remunerative price and a stable round the year market. If these
two needs are fulfilled, then the milk producer would continue in dairying and
perhaps, even expand even expand his business,of course within the boundaries of
other constrains.
Increasing the selling price of milk and passing on maximum benefit to the farmers is
not the only solution and in long run we have to look for other ways. The choice of
cost plus approach for milk pricing would breed inefficiencies since it would ignore
the demand factor. Similarly this would be an open invitation for large-scale import of
milk from the less priced neighboring states through other channels and ultimately
work to the determent of the milk producers of our State. So also, we have to
appreciate that soaring prices in a shorter period could adversely affect domestic
consumption as many of the households are in the low-income category.
Healthy growth in milk production can be achieved only through active intervention
in reducing the cost of production at farmer level and sustained investments in animal
feeding, breeding and health care.
A heavy surge in raw material prices for manufacturing of cattle feed has placed us in
a crisis situation as cattle feed plants are running heavy losses. Though we tried to
keep the cattle feed prices at reasonable levels, the increasing cost of raw material
forced us to increase the selling price of cattle feed which in turn resulted in increased
cost of production to our farmer members. The situation with regard to the availability
of raw material needed for cattle feed manufacturing was not at all rosy. The oil cakes
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
are costly and in short supply. Maize is being diverted for the production of ethanol as
bio-fuel due to its better conversion efficiency in the fuel.
Molasses became a scarce material and availability and its price become serious
concern to us. The prices of rice bran have gone up mainly due to ban on export of
rice. Since the ingredient cost is going up regularly, the cost of the compounded feed
is also going up, beyond the reach of a small producer. As the cost of milk production
increases, the margin of profit for the producer decreases. This is quite discouraging
trend, especially for the milk producers who are sometime even forced to quit
dairying as a profession. We feel that it is high time we looked forward for alternative
nutritional technologies, which would help our members to get the nutritional
requirement for their animals. So also efforts to be made by through Government
intervention to cushion the dairy producers against inflation by extending subsidy to
the farmers for purchase of cattle feed at reasonable prices.
Milma acclaimed as the No:1 brand in the State for the 2nd consecutive year in the
survey conducted by Dhanam Magazine which shows the popularity and consumer
belongingness of this household brand.
Aims for the year to come
The dairy industry in the country is exposed to various challenges.The management of
lean-flush periods has always been a matter of major concern to Milma and it still
continues to be a key problem to be addressed on top priority. Milma has to re-
dedicate ourselves to uphold our oft-repeated slogan "Farmers' Prosperity through
Consumer Satisfaction". To keep farmer and consumer contended and happy in
chorus is a difficult task. Milma has to formulate strategies and plans to accomplish
the aforesaid task.Though a quarter century has elapsed since the drawn of Operation
Flood programme we are yet to achieve self-sufficiency in milk production. At the
same time we can be proud of our achievements in the area of infrastructure
development, milk consumption enhancement and economic and social development
of rural dairy farmers.A joint concerted effort of Milma and other Government
agencies in Dairy Development and Animal Husbandry will go a long way in
fulfilling our dreams. We have to strive to wipe off the accumulated losses and to
improve the performance both on the physical and financial fronts. Your trust,your
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
confidence and your encouragement will further energize and motivate us in this
pursuit.
Food crisis is a major threat now faced by the world and being the 2nd largest
populated country we are forced to bear the brunt more than others. Our Government
is giving priority to ensure food security to the citizens.To ensure food security we
have to enhance domestic production of agricultural commodities including dairy
products. This can only be achieved through ensuring remunerative prices to their
produce and encouraging them to produce more milk and other agriculture products.
We have to strengthen the hands of our farmers by enhancing their capability to
produce more and thereby ensure the prosperity of our nation .
The Federation achieved a turnover of Rs. 14128 lakhs in the year 2007-08 as against
Rs.13280 lakhs during previous year.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Organization
Subsequently capacity of Ermakulam Dairy was expanded to 1 Lakh LPD and that of
Thiruvananthapuram Dairy to 2 Lakh LPD. The capacities of the Chilling Plants were also
expanded to 30,000 LPD each. A glance at the union’s procurement and sales over the years
as given below and reveal that Unions procurement and sale has been showing a two digit
growth over the years.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
However the growth in procurement has always been lagging as compared to milk sales.
Union used to have surplus milk in the flush season up to 1996. However the fast growth in
demand thereafter and rapid decline in milk production in the State after 2001, owing to
demographic problems like rapid urbanization, diminishing land holding size, transformation
to nuclear families and reduction in family size, due to reduction in population growth,
attractive price for cash crops, shortage of unskilled labour an offshoot of high literacy rate,
etc. The demand for milk has been growing rapidly since the beginning and even the opening
up of markets in 1991 did not affect this growth much. Unlike the northern districts of the
State, not many competitors ever came to the market. Union in fact had maximum sales
growth during the period 1995-2000. Union has been purchasing milk right from the
beginning from the other two sister Unions and also from outside states mostly Tamil Nadu
till the year 2006.
From 2006 onwards, Unions milk deficit shot up due to rise in demand and drop in
milk procurement and the milk availability in Tamil Nadu also came down and hence Union
was forced to move to Karnataka for meeting its deficit. This reduced availability of milk in
the Southern States resulted in the steep increase in milk price in Karnataka and Union started
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
incurring loss on milk purchased from outside. Side by side the price of skim milk powder
also sky rocketed. The combined effect of these was the heavy loss to union in 2007-08.
Appendix III shows the financial performance of Union since beginning. Unions sales
turnover from products has always been below 10% since beginning, since Union never had
surplus milk after meeting demand for liquid milk.
Vision
To achieve the status of the best union in the country in turnover and profitabilityby
achieving 10-15% growth per annum by accelerating the growth in milk production and sale
of milk and milk products and by diversification into related areas in food sector.
Mission
To become the leading organisation in the food and nutrition sector in the region,
through the attainment of its marketing objectives and to become nucleus of an endeavour for
an accelerated development of the rural economy of the region. Further it would aspire to
function as professional,profitable and socially responsible organisationensuring better returns
to farmers,primary societies as well as its customers by providing good value for their money.
Units of TRCMPU
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Thiruvananthapuram Dairy started to collect the entire milk through Bulk Milk Coolers since
November 2009.The capacity of the Dairy has been expanded to 2 Lakh litres per day by
2001 Now it is proposed to expand the capacity to 3 Lakh litres per day. In addition a
separate block for manufacture of Products is proposed to be constructed.
Thiruvananthapuram is the first "ISO 2001" certified Dairy in the State and all steps have
been initiated to get HACCP for Thiruvananthapuram Dairy.
2. ErmakulamDairy:
The Dairy was commissioned in 1986 with a capacity to handle 60,000 litres per day and
subsequently expanded to handle 1 lakh litres per day.
No of employees 226
No of Societies 336
No. of agencies 1080
Average milk collection 50,000 LPD
Average milk sale 120,000 LPD
Quantity processed and supplied to Pathanamthitta unit-45000 lpdAt present 18,000 litres
milk is collected through Bulk Milk Coolers and the remaining quantity in Cans. Presently
the milk marketed in Pathanamthitta district is supplied from Ermakulam Dairy, in
pasteurized, standardized condition.
3. Pathanamthitta Dairy:
A new dairy plant with 60,000 litre capacity is constructed at Thatta near Adoor in
Pathanamthitta district and is expected to be commissioned by the end of 2009. Presently
there is a 30,000 litres Chilling Plant in the district. Milk is also packed there at present.
These facilities will be decommissioned when the new Dairy Plant is commissioned. Now the
entire milk in the district is being collected through Bulk Milk Coolers.
4. Alappuzha District:
In Alappuzha district, 60,000 Litres per day dairy constructed under O.F II has been
expanded to 1 Lakh litres per day which is managed by KCMMF. Milk Procurement and
marketing activities are carried out by Union. There is also a Chilling Plant with 30,000
Litres capacity in the district.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
DESIGNATION NAME
Table3.6
ERMAKULAM MANAGEMENT
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Pasteurized Milk
Milma pasteurized vitamin A enriched milk comes in three varieties.
Conveniently packed in 500 ml and 1 litre sachets, the fat content range of Milma's Milk
has made it the popular health drink of young and old alike.
Ice-Cream
Milma ice-cream, is available in a range of lip smacking flavours: vanila, chocolate,
mango, strawberry and fruit & nut. In addition, our Ernakulam Union also produces and
distributes delicious "kulfi" and cream rolls.
The only ice-cream in Kerala market which is manufactured in a dairy,and hence most
fresh ice cream.
Sambharam
Curd
It is a fermented product prepared from pasteurized skim milk using Curd Culture from
National Dairy Research Institute (NDRI). It is delicious, tasty, free from cholesterol and
available in 500ml and bulk.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Lassi
It is a sweetened and flavoured product prepared from curd. It is available in 200ml pack
and is a very good health drink for all age group.
Ghee
Ghee is a key ingredient in most Indian delicacies. Milma produces good quality, pure
ghee from butter or cream at all dairies. The ghee is available in convenient packs of
100gm to 15Kg.
Butter
Milma Butter prepared from the cream of milk contains 81% fat and less than 15.6%
water.
This is available in convenient 100gm,200gm and 500gm family packs. Available in
salted and unsalted varieties.
TetrapackFlavoured Milk
Milma offers a range of flavored health drinks in hygienic tetra packs. Cardamom milk
has already captured the market and are available at all Milma outlets.
Refresh
In addition to milk drinks,Milma also has a mango drink in the market. Refresh,
Milma'smanago drink is a favorite in the fruit drink sector.
Peda
Cream Roll
Mixture of tasty ice-cream and tooty fruity encircled with oven fresh sponge cake. It is a
delicious snack rich in Milma cream.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Milma Chocolates:
(a) Milky Thundr: Wafers coated with black and milk chocolate. The product is sold
at Rs.5
(b) Milky Beats: Milk chocolate bar, available in the market atRs 10.
(c) Choco Beats: Black chocolate bar,available in the market atRs 10.
MilmaPayasam Mix
Full ingridents for making payasam is available as a kit during Onam season.
Cattle Feed
Balanced cattle feed is the major input provided to the dairy farmers of the State from the
Federation.
There is a high level of acceptability for this product in the market. Milma is now
producing 600MT cattle feed a day. It produces both mash and pellet form of cattle feed.
In addition to augment the balanced feed and to support vitamin level in animal, milma
has come out with milma mineral mixture - "MilmaMin". The cattle feed is distributed to
farmers at reasonable rate through Apcos, Dealers and Government agencies.
Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best quality
cattle feed by Indian Association of Veterinary Pathologists during 1998.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
ORGANISATION CHART
1. It is a diagrammatical presentation.
2. It shows principal lines of authority in the organisation.
3. It shows the interplay of various functions and relationships
4. It indicates the channels of communication.
<
Personnel organization chart depicts the relationship between positions held by different
persons. Functional organization chart depicts the functions or activities of each unit and sub-
unit in the oraganizational. Organisation chart helps in the following ways,
1. It shows the employees how their positions fit into the total organisation and how they
relate to others. It shows the lines of authority and responsibility among employees.
2. It serves as a valuable guide to the new personnel in understanding the organisation and
for their training.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Division of labour and specialization is the basic principle of formal organization. The scalar
and functional processes imply the growth of the organization both vertically and
horizontally. The structure of the organization refers to the overall arrangement in the
organization which ensures proper balance between different parts of the organization and
secures the execution of all operations and the achievement of organization objectives.
The span of control refers to the number of subordinates directly reporting and accountable to
one superior.TheOrganisational Structure of any firm will include the Top Level
Management, who takes the main administrative decisions for the business concern; the
Middle Level Management which is concerned with the day to day management of the
concern; and the Lower Level Management which is concerned with the normal day to day
activities of the concern. Milma follows such a structure for the department and function
areas.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Figure 5.1
Assistant HR Mgr
Junior Superintendent
Senior Assistant
Junior Assistant
Stenographer
Typist
Office General
FUNCTIONS
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
STAFF POLICY
There are 226 employees in Ermakulam Dairy Milma. It includes 32 employees and rest
areworkers.The members in the organisation formed a welfare society named “Milma
Employees Welfare Organisation”.
Milma is under time basis wage payment system. Under this method employee is paid on
the basis of time worked.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
i. Leaves
The provident fund scheme is followed by the organisation. They also provides
gratuity scheme with the help of General Insurance Company.
The policy applies to promotion within workers categories and workmen confirmed in
the permanent service of the federation/unions working of its various units within
Kerala state and at the registered office. Promotions are on the basis of seniority rather
than merit.
<
Milmasends their workers to many training institutions in various parts of India. Important
among these institutions is “MANSING INSTITUTE OF TRAINING, GUJARAT”. They
adopt the following techniques like formal lecture, seminar and so on.Milma also gives
apprenticeship training to workers and provides a stipend to them. The training covers areas
in management training as well as operational areas.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
SELECTION PROCESS
Temporary staff are recruited by the concerned units and permanent staff are recruited by the
head office, in the following process:
1. Inviting application
Federation releases the advertisement in leading news papers showing the vacancy and
quality required by the applicant.
3. Interview
Next step is the interview conducted by top officials of Milma. Interview is also
conducted by a group of various managers.
4. Final selection
If a candidate overcomes all the procedures given above, he would be selected. An
appointment letter is given to him mentioning the terms of appointment, pay scale etc.The
selected candidate undergoes a probationary period of one year.
DISCIPLINARY PROCEEDINGS
The HRD department is responsible for maintaining discipline in the organisation. At the
Ermakulam diary, the rules and regulations for office staff and workers are different. Staff
regulations are concerned with the office and standing orders are concerned with workers. If
there is way in disciplinary action arises from a worker standing order will be issued. The
procedure in as follows:
WORKING HOURS
The office time is from 10.00 am to 5.00 am.The workers work for 8 hours in the dairy.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
TRADE UNION
Trade unions are voluntary associations of workers or employers formed to promote and
protect their interests through collective action. The Trade Unions Act,1926 defines a trade
union as a combination, whether temporary or permanent, formed
(ii) For imposing restrictive conditions on the conduct of any trade or business, and
PUNCHING SYSTEM
The attendance of the employees is done by punching system. There are discussions going on
for the implementation of finger laser punching system within two months. This system can
automatically can daily attendance and compute the salary of employees. This process
enables achieve accurate salary as well as incentive calculation.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Figure 5.2
Assistant Mgr
Superintendent
Senior Assistant
Junior Assistant
Mgt Apprentice
Occasional Apprentice
FUNCTIONS
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
(3) Superintendent:
Verifies the milk value
Computing the TDS
Preparing the inter units transfers
(4) SeniorAssistant:
Transactions relating to the outside purchases
Transactions relating to the transportations & distributions
Transactions relating to the TA
(5) JuniorAssistant ( Cashier)
Issuing cash payments, especially salaries and wages.
Making advance payments.
(6) Mgt Apprentice:
Issuing cheques
Dealing with the bank matters.
(7) OccasionalApprentice:
Filling
Collecting couriers.
(8) Computertechnician :
Development of softwares to support various functions.
Support Management InformationSystem
Networking
SOURCES OF FINANCE:
LONG TERM: the source of long term finance is only term loans. CPD gets its financial
assistance from National Dairy Development Board (NDDB) through KCMMF. There is an
agreement between the federation and NDDB.
As per the agreement between them 70% of the loan amount should be repayable and the
remaining 30% subsidy.
SHORT TERM: the source of short term fund is procured from the Canara Bank at the
prevailing interest rates. It is mainly in terms of overdraft.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
MODES OF PAYMENT
HRD dept prepares the payment for employees and sends to the Finance dept. Payments are
made in two ways, through direct cash which is paid in the finance dept and other through in
bank i.e., in the Canara Bank. Overtime payment is not paid in cash but paid in bank. The
following are different modes of payments at certain situations.
CASH PURCHASE: Makes payment within 10 days made to society’s milk purchase.
CREDIT PURCHASE: 15 days get as credit period for film (plastic cover pack) purchase.
ADVANCE PAYMENT: Advance payment is needed for purchase of skimmed milk.
DEPRECIATION
The depreciation pattern maintained as per the Income Tax Schedule. Every year the firm
prepares provision of depreciation.
The following are the depreciation rates for the concerned assets.
Building 5%
Factory building 5%
Plant & Machinery 30%
Vehicles 20%
Furniture 15%
AUDITING PROCESS
The dairy has statutory auditing, which is done by the registrar of the cooperative society. For
the purpose a representative is appointed in the dairy as their concurrent auditor.
PROFIT SHARING: The profit earned is given to the farmers as per the quantity and quality
of milk they supplied to the concerned society. Further the dividend is paid to the shareholders.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Assistant Mgr
Senior Supervisors
Junior Supervisors
FUNCTIONS
This department deals in procuring milk from the societies.
Calling tenders of vehicles
Scheduling of routes
Providing veterinary services.
Providing cattle feed supply
(4) AssistantMilkProcurementOfficer:
Assisting in the works of the Milk Procurement Officer
(5) SeniorSupervisors:
Deals with the extension activities in the field such as ,
Finding the needs of the farmers.
Conducting camps and seminars
(6) JuniorSupervisors:
Assisting with the activities carried out by the Senior Supervisors.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
PROCURING: Procures milk from the societies through tendered trucks and reaches to the
plant. Ermakulam Milma has 11 regular routes and 11 emergency routes.Milk collection
route contract is awarded annually by collecting competitive offers.
Union is going for quality improvement of raw milk by installing milk coolers in Societies.
At present 41 Nos of coolers are in operation.
Government of India is financing 75% cost for installing coolers. Rs.10 crores has already
been sanctioned for this. Union will meet all expenditure for operating the coolers in
Societies.
VETERINARY SERVICES: This service is extended to the farmers irrespective to the cost
involved for its operation.
INPUT WING:Input wing is responsible for health care, insurance, genetic up gradation,
nutrition, and production enhancement.
Figure 5.4
FARMERS
SOCIETY
TANKERS
MILMA
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
FUNCTIONS
Involved with the processing of milk.Production of curd, buttermilk and ghee.
Procures raw materials.
Procures milk from outside state in the times of scarcity.
Makes payments for the milk powder.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Figure 5. 6
THE PRODUCTION PROCESS
Ghee
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
FUNCTIONS
Taking samples at every stages of milk processing and of other milk products.
Timely testing the quality of milk and other milk products.
Maintains to keep the standard.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
TYPES OF TESTS
1. At chilling centre
a. Organoleptic test
b. Temperature
c. Clot On Boiling (COB)
d. Acidity (as lactic acid)
e. Fat %
f. SNF % (Solid Non Fat%)
a. Organoleptic tests
b. Fat%
c. SNF% (Solid Non Fat %)
1. When milk is received at the plant its appearance and smell is first is checked.
2. Then sample is taken at RMRD (Raw Milk Reception Dock) and tested to know the
fat content in order fix price for the concerned society which supplied the milk.
3. Sample is taken at the processing stage of milk to know temperature of the milk.
4. Later sample milk is taken from the processed milk tank to know the fat and acidity.
5. Sample is taken from filled packets.
6. Similarly this is done in cold storage.
7. Sample is taken at despatching of milk packets.
8. Five packets are taken as samples in a month to know whether the quality is
maintained.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
PESERVATION OF MILK: Processed of milk does not need preservatives. After the milk is
chilled and pasteurized. Hence milk does not get spoiled. The milk stays good for two days
under refrigeration conditions.
Table 5.1
Table 5. 2
SPECIFICATION FOR GHEE-AGMARK REQUIREMENTS
MOISTURE % FREE FATTY ACID %
PRODUCT
0.3 5.2(max)
GHEE (special grade)
Table 5. 3
COMPOSITION OF MILK
Main constituent Range (%)
Water 85.5 – 89.5
Total solids 10.5 – 14.5
Fat 2.5 – 6.0
Proteins 2.9 – 5.0
Lactose 3.6 – 5.5
Minerals 0.6 – 0.9
Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
5.6. MARKETINGDEPARTMENT
ORGANISATIONAL STRUCTURE OF MARKETING
Figure 5.8
FUNCTIONS
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
PROMOTION
There is less promotional activities from the firm. Usage of posters, calendars bill boards etc
are certain tools used in the promotions activities. Advertisements are used only when the
offers are provided.
DISTRIBUTION
Milk is distributed directly only through retailers i.e. no wholesalers is included. While other
products are provided to wholesalers as well as retailers. Advance payment is to be made for
milk sales by the agents. Nearly 1800 agents are functioning in Ermakulam. 4% commission
is fixed on the milkat minimum retail price.
MARKETSHARE
Milma milk has a market share of approximately 45% and is leading in the market. But in the
case of other products they are just meeting the targets set by the head office. So there is
relatively small market share for the milk products of Milma.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
Assistant Mgr
Deputy Engineers
Technical Superintendent
Senior Assistant
Operators and
Technicians
FUNCTIONS
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
SWOT ANALYSIS
6.1 SWOT ANALYSIS
The technique is credited to Albert Humphrey, who led a convention at Stanford University
in the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject of much research.
Strengths: characteristics of the business or team that give it an advantage over others in
the industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
Threats: external elements in the environment that could cause trouble for the business.
Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.
The SWOT analysis is often used in academia to highlight and identify strengths,
weaknesses, opportunities and threats. It is particularly helpful in identifying areas for
development.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
More scope to procure milk from other Faces milk shortage within the state.
states, which is not much expensive plus Government’s decisions regarding
ensures good quality. procuring milk from Tamil Nadu may
Good scope for capturing huge market result in loss making due to high price.
share in the milk products category. New competitor, Thripthi may reduce
More opportunities to create demand in market share.
rural areas. Customers preferring other brands’
milk products.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
STRENGTHS
Milma is one of the first organizations to enter into the Kerala milk market through the
introduction of packed milk. The large acceptance of packed milk of Milmaamong customers
made the Milma successful. This gradually created Milma as trust worthy one. All these lead
to capture 45% of the market share. Ermakulam Milma Dairy is successful in delivering
quality milk products in time to its dealers and customers, so customer always rely on Milma
products. Strength of Milma is its employees. They are provided with various incentives and
benefit schemes.
WEAKNESS
Milma’s plant is not modernized one, so there is less computerized works. There is lack of
R&D works in the oraganizational, which is very essential for surviving in the business. Even
though the employees have various incentives and schemes, it does not have recreational
activities. Independent Milma units are able take their own decisions on major issues, since
top management involves in it.
OPPORTUNITIES
Since Milma has good name among the customers it can introduce new milk products. The
market share of Milma can be increased through creating more demand in rural areas. The
sale of chocolates can be increased by effective promotion activities in the urban areas.
THREATS
Facing milk shortage within the state is a serious issue. Customers prefer other brand’s milk
product is another issue. Very soon government supported milk oraganizational,Thripthi
would be a big competitor to capture the major market share.
SWOT analysis of this oraganizational shows its strengths as well as its weakness.
This may enable the company to improve its prevailing methods of production. The firm can
make significant results by implementing good business strategies, which may retain and
increase the market share of Milma.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
7.1 FINDINGS
1. The Ermakulam Milma unit cannot take independent decisions on major situations
since head office is the prime authority.
2. The plant lacks modern machines which are required to produce efficiently.
3. There is no computerised alert system to detect problems in the plant.
4. The firm planning to implement finger pressing system at the entry gate.
5. The incoming of the trays into the plant found to be slow, which may result in
delaying of packing the packed milk.
6. There is no scope for developing of new products.
7. It was found that the firm just meet the required demands rather than creating
demand. This was seen in the milk products especially sambharam.
8. There are no recreational activities for the workers.
9. The study revealed that Ermakulam Milma unit faces milk shortage within the state.
10. In a day around 100 packets of milk are being torn due to improper packing, storing in
old and bad conditioned trays.
7.2 SUGGESTIONS
The following suggestions may help the firm to gain good results,
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
7. More production and promotion of Sambharam may increase the market in the
Sabarimala season.
8. The firm may make policy to establish recreational activities for the workers.
9. The Ermakulam unit may try to procure milk from other states which incur less cost
and provide good quality.
10. Proper packing of milk packets is essentially needed as well as good trays are needed
for storing it.
7.3 CONCLUSION
The organisation study at Milma was done with an objective to understanding how an
oraganizational functions, what are its major departments and functioning of these
departments. The study at Milma provided the opportunity to learn the oraganizationalal
goals and objectives, various department that conduct critical functions and the interrelation
between them.
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ORGANISATION STUDY AT MILMA, ERMAKULAM DAIRY
BIBLIOGRAPHY
WEBSITES
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