Beruflich Dokumente
Kultur Dokumente
Submitted By
V.NIVETHA (2014MBA31)
1
FATIMA COLLEGE (AUTONOMOUS)
DEPARTMENT OF MANAGEMENT STUDIES
Mary Land, Madurai - 625018.
BONAFIDE CERTIFICATE
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PREFACE
As a part of the MBA Curriculum and in order to gain practical Knowledge in the
field of management, we are required to make a report on the functioning of various
departments in an organization. The Basic Objective behind doing this project report is to get
practical knowledge of what we learn inside the classroom In this project report we have
included various practices and policies followed at MADURAI DISTRICT CO-OPERATIVE
MILK PRODUCERS UNION LTD, MADURAI which we were able collect through
observation and interviews .This Project report helped us to gain practical exposure and
enhance our knowledge towards the work environment.
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FATIMA COLLEGE (AUTONOMOUS)
DEPARTMENT OF MANAGEMENT STUDIES
Mary Land, Madurai - 625018.
DECLARATION
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ACKNOWLEGEMENT
I express our deepest gratitude and special thanks to the DEPUTY GENDERAL
MARKETING MANAGER MR. M. SUNDARA PANDIYAN MADURAI DISTRICT
CO-OPERATIVE MILK PRODUCERS UNION LTD, MADURAI- 20 who allowed us to
carry out our project at their esteemed organization.
I take this opportunity to express our deep sense of gratitude to Rev. Dr. FATIMA
MARY, Principal, Fatima College, Madurai for giving us an opportunity to pursue this study.
I profoundly thank all the faculty members of the department for their support. We owe a
special debt of gratitude to our family and our friends and well-wishers for the motivation, and
support extended to us at every stage of our project work.
I heart fully thank one and all who have contributed directly and indirectly in bringing
this work with the good structure in completion of this project.
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TABLE OF CONTENTS
1.1 INTRODUCTION 8
2 INDUSTRY PROFILE 9
3 DEPARTMENTS 29
3.2 PRODUCTION 35
3.3 MARKETING 45
3.4 FINANCE 52
3.5 MIS 59
3.7 PURCHASE 68
3.8 STORE 71
5 CONCULUSION 77
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AAVIN MADURAI DISTRICT CO-OPERATIVE MILK PRODUCERS
UNION LTD.
AAVIN PRODUCTS:
7
CHAPTRE- I
1.1 INTRODUCTION:
Summer internship study is an exercise for the students who are undergoing
MBA program. The objective of the study is to make the student familiar to the current
industrial scenario. It provides the student with the first hand idea on the general working of
the student has acquired in student curriculum. The exercise is an opportunity for the student to
understand the organizational structure, the major departments, flow of information and
various other functions in an organization
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CHAPTER- II
A.HISTORY:
The dairy development was established in Tamil Nadu in the year 1958 to oversee
and regulate milk production and commercial distribution in the state. The dairy
development department took over control of the milk co-operatives.it was replaced by
the Tamil Nadu co-operatives milk producers federation limited in the year 1981.on
February 1,1981 the commercial activities of the co-operative were handed over to Tamil
Nadu co-operative milk producers federation limited which sold milk and milk product
under the trade mark “Aavin”. With many private companies entering the field of dairy
the Tamil Nadu government is giving high priority to improve the performance of the co-
operatives. Tamil Nadu is one of the leading states in India in milk production with about
14.5 million litres per day.
Dairy co-operative account for the major share of processed liquid milk marketed
in the country. Milk is processed and marketed by 170 milk producers’ co-operatives
unions, which federate into 15 state co-operative milk marketing federation. The dairy
development Board programmes and activities seek to strength the functions of dairy co-
operative, As producer- owned and controlled organization. NDDB supports the
development of dairy co-operative by providing them financial assistance and technical
expertise, insuring a better future for Indian farmers. Over the year, brands like Amul
(GCMMF), Vijaya (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala),
Gokul (Kolhapur) co-operatives federation include
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a) Andhra Pradesh Dairy Development co-operative Federation Ltd,
(APDDCF)
b) Bihar state co-operative Milk Producers federation Ltd., (COMPFED)
c) Gujarat co-operative Milk Marketing Federation Ltd., (GCMMF)
d) Haryana Dairy Development co-operative Federation (HDDCF)
e) Himachal Pradesh State Milk Producers Federation Ltd., (HPSMPF)
f) Karnataka co- operative Milk Producers Federation Ltd., (KCMPF)
g) Kerala State co- operative Milk Producers Federation Ltd., (KSCMPF)
h) Madhya Pradesh co- operative Milk Producers Federation Ltd., (MPCMPF)
i) Orissa State co- operative Milk Producers Federation Ltd., (OSCMPF)
j) Punjab state co- operative Milk Producers Federation Ltd., (PSCMPF)
k) Rajasthan co- operative Milk Producers Federation Ltd., (RCMPF)
l) Tamil Nadu co- operative Milk Producers Federation Ltd., (TCMPF)
m) West Bengal co- operative Milk Producers Federation Ltd., (WBCMPF)
A. ACHIEVEMENTS OF DAIRY CO-OPERATIVES:
Commitment to help rural help themselves has guided the dairy boards work for more
than thirty years this commitment has been rewarded with achievements made by co- operative
dairies in milk production, employment generation , per capital availability of milk, foreign
exchange saving and increase farmer incomes.
B. REACH:
C. MARKETING:
Dairy co- operative now market in about 200 classes some 550.
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During the last decade, the dairy milk supply to each 1000 urban Indian
increased from17.5 to 43.5 litres.
D. MILK PRODUCTION:
MT in 1999-2000 per capital availability of milk presently is 2132 grams
per day, up from 107 grams per day in 1969-1970
India’s 4% annual growth of milk production surpasses the 2% growth in
population. The net increase in availability is around 2% per year.
E. INNOVATION:
F. MACRO IMPACT:
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2.2 COMPANY PROFILE:
The Madurai district co- operative milk producers’ union limited is popularly known
as Madurai Aavin. The Madurai Aavin is one of the largest dairies in the southern part of
Tamil Nadu.
The dairy is equipped with plant and machinery through UNICEF (United Nations
International Children Emergency Fund) with assistance from the people of New Zealand
through the freedom from hunger campaign committee for the benefit of mothers and children
of India.
I. LOCATION:
The Madurai Aavin has 39.42 acres of land and located in K>K Nagar and Anna Nagar
in Madurai – Sivagangai highway and nearly to the office of the Madurai district collector.
“AAVIN”
SATHAMANGALAM
MADURAI -625020.
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO (World Health
Organization) regulations expected to come into force in coming year all the developed
countries which are among big exported today would have to withdraw the support and
subsidy to their domestic milk products sector. Also India is the lowest cost producer of per
litter of milk in the world at 27 cents, compared with the U>S’63 cents and Japan’s $2.8
dollars. To take advantages of this lowest cost of milk production and increasing production in
the country multinational companies are planning to expand their activities here. Some of these
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milk producers have already obtained quality standard certificates from the authorities. This
will help them in marketing their products in foreign countries in processes from.
The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum around Rs.43, 500 corers by year 2005. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the conversion
of milk into milk products. By 2005, the value of Indian dairy product is expected to be
Rs.10, 00,000 million. Presently the marker is valued at around Rs.7, 00,000 million.
II. BACKGROUND:
India with 134 million cows and 125 million buffaloes has the largest population of
cattle in the world. The cattle population in the country as on October 200 stood at 313 million.
More than fifty percent of the buffaloes and twenty percent of the cattle in the world are found
in India and most of these are milk buffaloes.
Indian dairy sector contributes the largest share in agriculture gross domestic
products. Presently there are around 70,000 village dairy co –operatives across the country.
The co –operative societies are federated into 170 district milk producers unions, which is turn
has 22 state co – operative dairy federations. Milk production gives employment to more than
72 million dairy farmers. In terms of total production, India is the leading producer of milk in
the world followed by USA. The milk production in 1999 – 2000 is estimated at 78 million
MT as compared to 774.5 million MT in the previous year. This production is expected to
expected increase to 81 million MT by 2000 – 2001. Of this total production of 78 million
cow’s milk constitute 36 million MT while rest is from other cattle.
While world milk production declined by 2 percent in the last three years, according
to FAO estimates, Indian production has increased by 4 percent. The milk production in Indian
accounts for more than 13 percent of the total world output and 57 percent of total Asia’s
production. The top five milk producing nations in the world are India, USA, Russia, Germany
and France.
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Although milk production has grown at a fast pace during the last three decades
(courtesy: operation flood), milk yield per animal is very low. The main reasons for the low
yield are
Milk has been an integral part of Indian food for centuries. The per capital
availability of milk in India has grown from 172 grams per person per day in 1972 to 182
grams in 1992 and 203 grams in 1998 – 1999.this is expected to increase to 212 grams for
1999 – 2000.however a large part of the population cannot afford milk, at this per capital
consumption it is below the world average of 285 grams and even less than 220 grams
recommended by the Nutritional Advisory Committee of the Indian council of Medical
Research.
There are regional disparities in production and consumption also. The per capital
availability in the north is 278 gm, west 174 gm, south 148 gm and in the east 93 gm per
person per day. This disparity is due to concentration of milk production in some pockets
and high cost of transportation. Also the output of milk in cereal growing areas is much
higher than elsewhere which can be attributed to abundant availability of fodder, crop
residues, etc which have a high food value for milk animals.
In India about 46 percent of the total milk production is consumed in liquid form
and 47 percent is converted into traditional products like cottage butter, ghee, paneer,
khoya, curd, malai, etc. only 7 percent of the milk goes into the production of western
products like milk powder, processed butter and processed cheese. The remaining 54
percent is utilized for conversion to milk products. Among the milk products,
manufactured by the organised sector, some of the prominent once are ghee, butter, cheese,
ice cream, milk powder, malted milk food, condensed milk infants food etc of these ghee
alone account for 85 percentage.
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It is estimated that around 20 percent of the total milk produced in the country is
consumed at producer – household level and remaining is marketed through various co –
operatives, private dairy and vendors. Also of the total produced more than 50 percent is
procured by co –operatives and other private dairies.
While for co –operatives, from the total milk procurement, 60 percentage is taken
as liquid form and the rest is used for manufacturing processed value added dairy products
; for the private dairies only 45 percentage milk is marketed in fluid form and the
remaining is processed value added dairy products like ghee, makhan etc.
Still several consumers in urban area prefer to buy loose milk from vendors due to
strong perception that loose milk is fresh. Also the current level of processing and
packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world
market, which is dominated by cow milk. As high as 98 percentage of milk is produced in
rural India, which caters to 72 percentage of the total population, where as the urban sector
with 28 percentages population consumes 56 percentage of the total milk produced. Even
in urban India, as high as 83 percentage of the consumed milk comes from the unorganised
traditional sector.
India’s dairy market is multi – layered. It’s shaped like a pyramid with the base
made up o f a vast market for low – cost milk. The bulk of the demand for milk is among
the poor in urban areas whose individual requirement is small, maybe a glassful for use as
a whitener for their tea and coffee. Nevertheless, it adds up to a sizable volume – million of
litres per day.
Presently, barely 778 out of 3,700 cities and towns are served by its milk
distribution network, dispensing hygienically packed wholesome, quality pasteurized milk.
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According to one estimate, the packed milk segment would double in the next five years,
giving both strength and volume to the modern sector. The narrow tip at the top is a small
but affluent market for western type milk products.
The effective milk market is largely confined to urban areas, inhabited by over 25
percent of country’s population. As estimated 50 percent of the total milk produced is
consumed here .By the end of the twentieth century , the urban population is expected to
increase by more than 100 million to touch 364 million in 2000 a growth of about 40
percent. The expected rise in urban population would be a boon to Indian dairying.
Presently, the organised sector both co –operative and private and the traditional sector
cater to this market.
The consumer access has become easier with the information revolution. The
number of households with television has increased from 23 million in 1989 to 45 million
in 1995. About 34 percent of these household in urban India have access to satellite
television channel.
The changing marketing trends will see the shift from generic products to the
packaged quasi, regular and premium brands. The national brands will gradually edge out the
regional brands or reduce their presence. The brand image can do wonders to a product’s
marketing as is evident from the words of perfume princess coco channel: in the factory, we
pack perfume; in the market, we sell hope.
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V. PENETRATION OF THE MILK PRODUCTS:
Western table spreads such as butter, margarine and jams are not very popular in
India. All India penetration of butter or margarine is only 4%. This is also largely represented
by urban areas ,where penetrations is higher at 9%.in rural areas ,butter or margarine have
penetrated in 2.1 % of household only. The use of these products in the large metros is higher
with penetration at 15%
Penetration of cheese is almost nil in rural areas and negligible in urban areas per
capital consumption even among the cheese consuming household as poor as 2.4 kg as
compared to over 20 kg in USA. The lower penetration is due to peculiar food habits, relative
products and also non – availability in many parts of the country. Butter, margarine and other
cheese products are mainly manufactured by the organised sector.
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VI. MARKET SIZE AND GROWTH:
Market size for milk (sold in loose/packed form) is estimated to be 36mn MT valued
at rs470bn. The market is currently growing at round 4%pa in volume terms. The milk surplus
states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka, and Tamil Nadu. The manufacturing of milk products is concentrated in
these milk surplus states. The top 6 states visa Uttar Pradesh, Punjab, Madhya Pradesh, and
Tamil Nadu, Rajasthan, Gujarat together account for 58% of national production.
Milk production grew by a mere 1% pa between 1947. Since the early 70’s, under
operation flood, production growth increased significantly averaging over 5%pa.
About 75% of milk is consumed at the household level which is not part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived to be
fresh by most consumers. In reality however, poses a higher risk of adulteration and
contamination.
The production of milk products, i.e. milk products including infant milk food,
condensed milk & cheese stood at 3.07lakh MT in 1999, production of milk powder including
infant milk – food has risen to 2.25lakh MT in 1999, whereas that malted food is at 65000 MT.
Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same
year.
AWARDS OF AAVIN:
FUTURE PLANS:
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Increasing the Milk handling capacity from 1.5 LLPD to 3.0 LLPD.
Increasing the Milk sales to 2.0 LLPD.
Modernization of dairy at a cost of Rs.5 cores.
Introduction of Bulk Milk Cooler (BMC) concept at village level at the cost of
3 Cores.
India is the largest consumer of milk and milk products. Especially Aavin milk and it’s
by products are considered as a best quality when compared to the other private milk products.
The following thereby the products manufactured in Aavin with the brand name of
“AAVIN”
BUTTER:
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GHEE:
GHEE (TIN) 15 KG
GHEE (JAR) 5LTR
GHEE (TIN) 1 LTR
GHEE (JAR ) 1 LTR
GHEE (CARTAN) 1 LTR
GHEE (TIN) 500 ML
GHEE ( JAR) 500 ML
GHEE (CARTAN) 500 ML
GHEE (JAR) 200ML
GHEE (SACHET) 25 ML
GHEE (JAR) 5KG
GHEE (JAR) 1KG
GHEE (JAR) 500 GM
GHEE (JAR) 200GM
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MILK :
Toned milk consists of 4.5 % fat and 3.5 % SNF (Solid Not Fat)
fortified with vitamin A, the milk is pasteurized and it is beneficial to patients
and good for kids. The selling of toned milk per 500 ml sachet is Rs.12.00.
STANDARED MILK :
The standard milk consists of 4.5 %fat and 5.0 % SNF which is sold
at Rs.21.00 per sachet of 500 ml.
PREMIUM MILK :
The premium milk consists of 4.5 % fat and 9.0% SNF which is sold
at Rs.22 per sachet of 500 ml.
FULL CREAM MILK :
Full cream milk consists of 6.0 % fat and 9.0 %SNF which is sold at
Rs.23 per sachet of 1000 ml.
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FLAVOURED MILK:
AAVIN CURD :
22
MILK POWDER :
Aavin manufacture and market ISI quality milk powder in 500 grams
carton and 1 kg poly pack. It is manufactured in all our product dairies viz
Erode, Salem, Krishnagiri and Madurai and marketed throughout the state.
Carton – 500gms
Poly bag – 1 kg
Bulk bag – 25 kg
MILK KHOA :
Aavin milk Beda is king of all sweets. It is dearer to the people of
Chennai. It is available in small packing like 50 Gms and 100 Gms packets and
also in 500 Gms and 1 kg bowl.
BUTTER MILK :
23
MILK BEDA :
Milk Beda is one type of sweet which is prepared by heating milk until
all water in milk is evaporated and 20% of sugar is added and chilled then it
goes for packing.
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2.2.1 ORGANISATION STRUCTURE:
The state level federation is named as “Tamil Nadu Co-operative Milk Producer
federation”, which framed policies, draft procedures and even determine the price for all the
products in the State of Tamil Nadu.
Collection of milk from the societies and paying remuneration price to the
societies.
Processing the purchased milk at dairy and produced many by products.
Union to society functions.
Collection milk throughout the year without any restriction. Offering fair prices
for better quality.
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AWARDS:
Aavin has got the best exhibition award for the year 210
National productivity council of India gave productivity awarded for the year
2005 -2006 to MDCMPU Ltd in the year 2008
Madurai Aavin has got the state level best co-operative milk producers union Ltd,
award in the year 2007.
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2.2.2 ORGANIZATION STRUCTURE CHART:
Special officer/
chairman
General Manager
Asst. General Deputy General Deputy General Asst. General Asst. General Asst. General
mngr Mngr Manager Manager Manager Manager
1. Mngr(DC) Milk
2. Mngr(DB) Procurement &
3. Mngr(QC) input
Lab Asst,
Factory
1. Charge Manager
2. Machine Operator
3. Store Keeper Q.C – QUALITY CONTROL
DC – DAIRY CHEMIST
BB – DAIRY BACKGIOLOGIST
CC – CHILLING CENTER
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From the above chart the general manager is a centralized authority at the top level
under the general manager there are four deputy managers they are deputy manager of
finance, deputy manager of administration, deputy manager of process, deputy manager of
marketing. Under each deputy manager there are two assistant deputy managers for each
department, under each assistant deputy manager there are four managers for each
department. This is about the structure of Aavin organization.
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CHAPTER- III
3. DEPARTMENTS IN AAVIN:
2. Production department
3. Marketing department
4. Finance department
7. Purchase department
8. Store department
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3.1 HUMAN RESOURSES DEPARTMENT:
DEFINITION:
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FUNCTIONS OF THE HR DEPARTMENT OF AAVIN:
a) Loans
b) PF (provident fund)
c) Travel allowances
d) Medical allowances
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TRAVEL
ALLOWA
CES
PF
HR
LOAN
POLICIES
Medical
allowance
s
B) RECRUITMENT:
C) TRAINING:
In 1985, the union established a training centre with the main objective of
imparting training. They give training to the primary co-operative societies about the milk
procurement. The management committee members are also training on bow to manage
their societies. They give lot of training to the employees who are all in the procurement
division. But now-a-days there is no off the job training. Only on the job training in this
training also own without any induction program conducted.
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D) FACTORY WORKING TIMING:
The working hours of the company are arranged in three shifts a day.
Aavin follows many acts for the welfare of the employees. Aavin company
follows the measures of the welfare of the employees according to the factories act 1945.
The following are the welfare measures of the employees.
1. CANTEEN:
2. MEDICAL ALLOWANCES:
3. WORKER’S COMPENSATION:
The worker compensation is given to the workers for any accident as per workers
compensation act 1923.
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4. FREE SUPPLY OF MILK:
All the managers and employees of the union are given 500ml of milk per day on
free of cost.
5. OTHER PROCESS:
No Performance appraisal of the employees.
Wage increment is there for every year once to each and every employee based
on the employee behaviour. If there are any complaints or punishment on
employees they will cancel the increment.
If an employee gets the 10 increment of 10years the employee will promote to
selection grade
If an employee gets the 20 increment of 20years the employee will promote to
promotion grade or special grade.
Like this only promotion will get.
G) LEAVE ELIGIBILITY:
Annual leave with wage at the rate of 1/20 for actual working days of the
previous year.
Normally 15 days are credited.
Medical leave at the rate of 12 days per year subject to maximum of 60 days.
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3.2 PRODUCTION DEPARTMENT:
DEFINITIONS:
In the words of Mr, E.L. Breech: “Production Management is the process of effective
planning and regulating the operations of that section of an enterprise which is responsible for
the actual transformation of materials into finished products.”
The objective should be to produce goods at least cost and to the minimum satisfaction of
the buyer. To meet the objective the role of production in an enterprise is most important. The
production department includes input wing, milk processing process and maintenance
department, quality control department, stores wing and transport wing.
In the production department there are various sections are available they are listed below
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1. Reception section
2. Lab section
3. Chilling section
4. Butter section
5. Milk powder section
6. Milk Beda section
7. Ghee section
8. Deep freeze section
9. Flavoured section
10. Curd section
1. RECEPTION SECTION:
Under this reception section the milk is collected from various societies in and around
Madurai districts nearly 80-90 societies. The collected milk will be tested in the reception
section to find whether it is good or decayed.
If the milk is spoiled it will be returned back to the milk holder. If the milk is good then the fat
content will be tested the fat content in the milk should be four degree Celsius if it is less than
four degree Celsius again the milk will be returned.
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2. LAB SECTION:
The next section is lab section in the lab section a sample of milk will be sent the fat
and water in the milk will be tested in that lab section the fat content should be 4 - 4.2 degree
Celsius if it is less than or more than four to four point two degree Celsius the milk will be
returned to the customer.
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3. CHILLING SECTION:
The next section is chilling in the chilling section the tested milk will be chilled
and stored in a container then it will be heated at 40,60,70,80Degree Celsius and then
gradually. The Heated milk will be chilled at 80,70,60,40 degrees Celsius.
4. BUTTER SECTION:
Butter section in the butter section to produce butter the skimmed milk will be used, there will
be a plant called separator it separate the milk into skimmed and non skimmed milk then the
skimmed milk will be sent to produce butter and the non skimmed milk will be sent to produce a
milk powder. In a butter section there will be a plant called butter churn , it look like a big container
in that container the milk will be rotated nearly forty five minutes and then the butter will be
obtained.
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5. GHEE SECTION:
In the ghee section the butter will be heater in a big container nearly one hour
at 90 degree Celsius. Then it will be will be sent for the packing section and stored in a
Gordon for sale.
In this milk Beda section the milk Beda is prepared manually ten litters of milk,
one kilogram of sugar and one kilogram of cream are heated initially at 90 degree Celsius and
then heated at 70 degree Celsius nearly one hour. Then it will be chilled and sent for the
packing section for sale.
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7. FLAVOURED MILK SECTION:
The next section is flavoured section in this section the heated milk will be
filled in a bottle and the flavoured is mixed and then it will be placed in a respective plant
for 45 minutes and the milk will be Chilled and sent for sale. There are flavours like
Chocolate
Almond
Strawberry
Mango
Pine apple
Vanilla
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8. PACKING SECTION:
In the packing section there are separate plant will be available for each and
every variety of product , a plant will produce nearly 72 output per minute for one hour it
produce 1200 output.
9. CURD SECTION:
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3.2.1 PLANTS AND THEIR MECHANISMS:
HTST
SEPERATOR
BUTTER CHURN
STORAGEN TANK
PACKING ZONE
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3.2.2 PRODUCTION PROCESS CHART:
SOCITIES / CHILLING
CENTER
PROCESSING /
STANDARDIZATION CREAM SKIM MILK
STORING
BUTTER GHEE POWDER
PACKING
STORING
STORING
PACKING
MARKET
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3.2.3 PRODUCTION LAYOUT:
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3.3 MARKETING DEPARTMENT:
The application, tracking and review of a company are marketing resources and activities.
The scope of a business' marketing management depends on the size of the business and
the industry in which the business operates. Effective marketing management will use a
company's resources to increase its customer base, improve customer opinions of the
company's products and services, and increase the company's perceived value.
MARKETING:
Milk Co-Operative Producer’s Union Ltd market their product through dealers and
vendors and they do not give any advertisement for their marketing because of governmental
issues.
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OBJECTIVES OF AAVIN:
Analyze the sales report periodically and income with lots of plans to increase the
sales.
Allocate the depots in proper place.
Investigate and allocate the depots and parlours.
Arranging vehicles to cover local areas.
Responsibility regarding sales of milk and it’s by products.
Solve the customer grievances.
Convince the petty shops, grocery shops and departmental stores to form them as
retailers, wholesalers and free retail outlets.
Convince the institution to buy of milk at concession rate.
INDENT SECTION:
Getting information from all zonal offices through disk regarding the quality of
milk needed for distribution.
Sending the details regarding the quality of milk required by category wise to the
production establishment.
Issuing gate-pass to the incoming and outgoing loaded vehicles.
Maintaining an account that deals with indent quality and sales quality of milk
including the special order milk.
Supplying the milk according to their routes.
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ZONAL OFFICE:
There are five zonal offices in Madurai District and one zonal office in Theni District
for marketing activities. They are,
Bibikulam zone
Palanganatham
Central zone
Aarapayam
Thirumangalam zone
Theni zone
MARKETING MIX:
Product
Price
Place
Promotion
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PRODUCT:
Aavin produces milk and the milk products in the company itself. There are four
varieties of milk produced in Aavin.
VARIETIES OF MILK:
Standardized milk
Premium milk
Toned milk
Full cream milk
BY PRODUCTS:
The surplus milk is separate into full cream milk and skimmed milk.
The full cream milk is converted into butter and flavoured milk.
The skim milk is converted into powder.
PRICE:
The price of the products is fixed based on fats and proteins content of the milk,
weight and quality of the milk and also on the basis of the value added quality. Fixation
of price is done by the central Government and the price is fixed according to the
demand and product cost basis.
CARD SALES:
Advance money is paid for the products at 50paisa reduction form the price.
Milk cards are sold to consumers against the payment of cost of milk for a month in
advance. Rs.1.50 Per litre is given as discount for card holders.
1. Special orders are booked in advance for special occasions like marriages,
Festivals etc.
2. Door delivery in time is ensured irrespective of the quantity ordered.
3. We charge of Rs.0.50/Litre extra for special order.
PROMOTION:
SALES PROMOTION:
The sales promotion carried out in shop painting, banners and press
advertisement.
AVERTISEMENT:
Advertisement is done through banners and Retail shops. There is no media
advertisement because of governmental issues.
PLACE:
CHANNELS OF DISTRIBUTION:
Aavin has both direct and indirect channel of distribution. They distribute their
products through wholesalers, retailers and customers.
TARGET SEGMENTATION:
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COW MILK:
In this cow milk is content of fat is 3.5% and SNF content is 8.5% and it also
contains other proteins. This type of milk is more suitable for aged person. Now the cow
milk is supplied all over the area.
STANDARDIZED MILK:
In this cow milk is content of fat is 3.5% and SNF content is 8.5%. This type of is
more suitable for the children and even it is beneficial to the patients and the infants.
This is high fat content milk. Its fat content is 6% and SNF content is 9%.
In this milk content of the fat is 5% and SNF is 9% this type of milk good for health.
POSITIONING STRATEGY:
It is based on the,
Competitors
Price
Quality
COMPETITORS:
Aavin has better quality at responsible price set by the government compared to its
competitors like HUTSON and AROKYA.
PRICE:
Aavin product price is fixed based on fat, protein content of milk, weight and quality.
QUALITY:
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MARKET POTENTIAL:
The supply of 18000liters per day is subdivided into night supply and day supply.
GENERAL MANAGER
DEPUTY GENERAL
MANAGER
MARKETING MANAGER
5 ZONAL OFFICERS
\
CENTRAL ARAPALAYAM ANNA NAGAR PALANGANATHAM BB KULAM
CASHIER
SUPERVISOR
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3.4 FINANCE DEPARTMENT:
It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not
only about long term budgeting but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders.
DEFINITION:
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Finance department of Madurai district co –operative milk producers’ union deals
with the methods of raising of funds through direct revenue from sales, loans banks, and from
other agencies like NDDB an assessment of the financial statement helps us to understand the
overall progress of a concern – strength or weakness.
The Madurai direct co – operative milk producers union has raised its funds only
by the loan amount given by the commercial banks and government financial institutions.
INCOME ACCOUNTS:
It prepares the annual income and expenditure report and monthly profit and loss
account will be submitted to the administration section. It maintains account for the future
reference.
GENERAL MANAGER
ASSISTENT MANAGER
SUPERIENDENT
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Madurai district co –operative milk producers’ union purchase 2, 75,000litres of milk
per day from the society’s .The cost for one litre milk is Rs.28.10 days once the payment will
be given to the producers.
Madurai district co –operative milk producers’ union totally pays 20 cores per month.
Total sale is 1, 65,000 litre per day.
COMMISSION:
Approximately, Madurai district co –operative milk producers’ union pays 70, 00,000
per month to agents and the salary to its employees 1, 50, 00,000.
PROFIT:
Madurai district co –operative milk producers’ union yields 1, 75, 00,000 profit per
month. For audit profit is 15.08 cores.
FUNDS REQUIRMEENTS:
The funds requirements are in two type’s funds requirements for income and funds
requirements for expenditure.
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Administration overhead
Selling and Distribution
AUDITORS:
In this section the administration department appoints two auditors. One is company
auditors another one is statutory auditors.
a) COMPANY AUDITORS:
They look after the preparation of the balance sheet, rate also periodic day-to-day
activity.
b) STATUTORY AUDITORS:
The regional deputy of audit board and overall director audit control, they audit the
works prepare and check all accounts of the union and prepare a final audit memorandum and
submit it to the controlling officer. They submit this audit at the association meeting.
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1. MILK PAYMENT SECTION:
When milk comes from societies to the organisation, the organisation starts to
estimate how much milk does come from the societies. A formula is used to find out one litre
of milk,
After finding out the litre of milk RTGS is being prepared by milk payment section.
Meaning for RTGS is Real Time Gross Settlement. Milk payment section prepares cheque
and they send to the bank where the producers have an account. The bank transferred the
money to the society member’s account.
ADVANTAGES:
Marketing account section of Madurai Aavin’s account division deals with the
following works
3. SALARY SECTION:
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4. PAYMENT SECTION:
Payment section pays the amount to what they buy as small things such as
milk film, acid, alkaline. Nearly 40, 00,000 to 45, 00,000 will be paid by the payment
section for the milk films.
USER SECTIONS:
User sections certifies the products and prepare GRN.GRN means goods
received notes which has the following things.
Product name
Specification
Amount
Manufacturing company name
5. CASH SECTION:
FEDERATION
UNION
SOCIETY
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At least 25 members should be there in a society. To join as a member in a
society, people should pay Rs. 100 Cash section collects the,
6. PRE – AUDIT:
Entries are in numbers (code).pre – audit is prepared before sending the cheques
to the bank. If any mistakes made in the entries they would cleared in pre – audit.
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3.5 MANAGEMENT INFORMATION SYSTEM:
DEFINITION:
MIS
ASSISTANT MANAGER -1
JOB ASSISTANT -1
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PROCUREMENT PURPOSE:
It is used to prepare bills and maintain their salary statement. Mainly MIS is used
for fixing the milk rate based on the FAT and SNF. They are having some rate charts in their
system using the software name MACS software consultancy. It’s help to fix the rate. MIS
gives information to producers through message weakly twice or two days once. These are all
procurement purpose.
SALES PURPOSE:
In sales purpose there are two types of commission analyser depot commission
and parlour commission. Here they use software named MIS analyser to analyse assigning
the information for sending information to producers.
UNION TO SOCIETY
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MILK PROCUREMENT PRICE CHART 2 – COW MILK RATE PER LITRE
SOCIETY TO MEMBERS
UNION TO SOCIETY
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The processes which take places in MIS are the following:
Milk bills.
Pay bills.
Marketing credit bills.
Accounting statement.
Society milk receipts.
FUNCTIONS OF MIS:
The computer section should prepare the income and expenditure account in the
system
MIS can also collect the statistical data.
They salary bills, pay bills and other bills cannot be prepared by the department.
Monthly improvement report is prepared and sends to the meeting.
Action is being taken to sponsor the staff of the computer section to update the
knowledge in new software.
Proposal has been sent to the commissioner for milk production and dairy
department.
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3.6 PROCUREMENT AND INPUT DEPARTMENT:
The major activity of this wing is to procure milk from the farmer members of
the Districts and also to provide necessary technical input facility to them. The procurement
is carried out by forming village level Milk Producers’ Cooperative Societies.
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3.2.6.1 STRUCTURE OF PROCUREMENT DEPARMENT:
PRODUCTION MANAGER
CC -OFFICER
LAB TECHNICIAN
PRODUCTION HELPER
The first process of dairy production is procurement of raw materials. The raw milk is
the vital ingredient for dairy processing. The raw milk is needed for processing in Aavin milk
plant is collected from the formers of Madurai and Theni districts. This is purchased from the
collection centres which are in Thirumangalam, Usilampatti and Vadipatti in Madurai district
and Antipatti in Theni district.
The collected raw milk is chilled in the chilling centre before its despatched to
Aavin Milk Plant. The payment to the suppliers of raw milk will be given to the quantity
of the milk. This is done after making a test.
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PROCUREMENT DATA: AS ON OCTOBER, 2008
Collect milk from the milk producers in Madurai and Theni districts.
To supervise milk collection and society activities.
To control diverse and organisation of new society, identification of new village
for procurement and input of veterinary doctors who gives veterinary coverage to
all societies.
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TECHNICAL INPUT AND SERVICES OFFERED:
TRAINING CENTRE:
The Union is running a training centre to train the society level employees as well as
the farmers. The training programs conducted are
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8. CMP Training - 3 days (DCS employees)
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3.7 PURCHASE DEPARTMENT:
The company raw material is milk and the raw material is available in the local areas.
The company purchase raw material directly and through agents. They purchase the milk two
types one is through tanker milk another one is can milk. At the time of purchasing, the raw
milk is tested and measured.
To purchase materials necessary for milk and by product production and sale.
To identify the requirement of the union.
Selecting a proper source of supply.
PURCHASE PROCESS:
The purchase section prepares a file containing all the purchase details and sends
it to the general manager to get permission.
After receiving permission from the general manager, the section sends inquiry
to all suppliers and gets quotations from the suppliers.
The section prepares comparative statement and the supplier with a lowest price
is selected.
The selection sends a sanction orders to the general manager and get signature.
The section sends the purchase order to the selected supplier.
The supplier sends the material to the union’s store.
The store section handover the bill to the accounts section.
The accounts section issues to bill to the supplier.
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3.7.1 PURCHASE DEPATMENT STRUCTURE:
PURCHASE
DEPUTY MANAGER 1
SUPERTENDENT 1
ASSISTANT 3 TYPIST 1
OFFICE ASSISTANT 1
TANKER MILK:
The tanker milk means purchasing the milk in bulk from theni. These tanker milk
is purchasing through agents. The tanker ,ilk is purchased once in a day.
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CAN MILK:
The can milk means purchasing the milk from local areas like KK nagar, Vadipatti,
Usilampatti, etc; in this the milk is purchased through society. The can milk is purchased
twice a day.
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3.8 STORE DEPARTMENT:
In Aavin store department to store the products mainly here butter is store for
maximum one year in -5 degree temperature. Milk powder; milk Beda, butter, ghee,
flavoured milk all products have to use the store. In store they maintain the day-to-day
products from production to sales. There are three stores in Aavi n i.e.
The following materials are kept in main store. Butter packing materials (BPM)
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FUNCTIONS OF STORE DEPATMENTS:
GENERAL MANAGER
DEPUTY GENERAL
MANAGER
STOCK OFFICE
SYSTEM STORE
OFFICE
ASSISTANT
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3.9 QUALITY CONTROL DEPARTMENT:
The quality control laboratory in Madurai dairy is equipped to analyze and evaluate
the quality of raw milk. The quality is checked at every stage of milk production, processing,
storage and marketing. The quality control department improves the milk and milk products
quality and prevents milk from adulteration. Indian standards institution, agamas and trade
give the approval after checking.
A) GERBER TEST:
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The Gerber test is made for checking the quality of fat in milk, the fat value vary from
3.0 % to 4.3 % in normal cow milk.
After measuring the quality of fat in milk the solution contained in the
butyrometer is placed into the electronic milk tester which separates the fat and the SNF
(solid Not Fat) such as protein, lactose, vitamins and minerals and indicates the quality of
each SSSSNF from the sample taken.
From the above results the quality of milk from each society is registered into the
computer system for the future reference during the by – product production process.
QUALITY CONTEOL
DEPUTY MANAGER 1
ADC-5
LAB TECHNICIAN-6
HELPER-19
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CHAPTER – IV
OBSERVATIONS
During the training period, trainees observed various functions of all the
departments.
Proper attendance was maintained. Proper leave and exit procedure are in
existence.
Employees are paid salaries promptly on time.
Dairy department is the backbone of the company.
There is no coordination between workers in the organisation.
The workers were late to the work place.
The organisation does not have career development program and there is no
formal performance appraisal system.
The working environment was not clean.
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SUGGESTIONS
Madurai district co – operative milk producers’ union limited can make its
environment clean and tidy..
People who are working in the office can maintain discipline.
To avoid the conflict between the employees the organisation can be given
counselling.
The organisation can give awards to the employee who comes earlier to the office.
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CHAPTER – V
CONCLUSION
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