INTRODUCTION

Organizational studies is "the examination of how individuals construct organizational

structures, processes, and practices and how these, in turn, shape social relations and
create institutions that ultimately influence people" organizational studies comprise
different areas that deal with the different aspects of the organizations, many of the
approaches are functionalist but critical research also provide alternative frame for
understanding in the field. Organisational study is the systematic study and careful
application of knowledge about how people as individual and as group act within the
organisation.

In the present scenario human beings are striving hard to sustain in this world through
proper needs like food, clothes, shelter, education etc. There are certain needs in this
world. That are rights every human beings. Every day we need certain things to eat
and drinks, for all survivals. In the above all as we now food is the supreme one. It is
nothing but food is the one and only factor which plays vital role responsible for the
existence of human life.

Milk is considered itself as “food “because milk contains many of the vital proteins
and vitamins. Which are necessary for the existence of the human life. We all know
that cow gives as milk. So from the ancient period itself milk as become an essential
food for human life. So they buy milk instantly from societies and shop. Some people
have their own civilisation and some have cattle farm for self-consumption of milk as
well as for how ever as civilisation advances and growth in they, economy, semi-
urban areas are changed in to urban areas as a result cattle farm slowly disappears
from city and are settled in villages because of highly expenses in the cattle farm
maintenance people solely emerges from that job to another even through the crises
occurs I the field of milk production no reduces the consumption of milk in their day
to day life.

The consumption milk by the families is increasing day by day people have no time to
look after the how for feeding them for milk do they use to buy milk. Thus arises the
emergence of new brand in the field of milk industry. Here arises the importance of
recognised societies and companies.
In this organisational study I conducted which enables to know the real functioning of
the organisation.

OBJECTIVES OF THE STUDY

 To acquire knowledge about the organisational structure and departments of

Milma Ltd.
 To understand the various key functional areas of the organisation.
 To understand how the key business process are carried out the organisation
 To analyse the strengths, weakness, opportunities and threats of the
organisation
 To experience organisational process at various levels.
 To make suggestions and recommendations to overcome the drawbacks.
 To analyse the measures and techniques taken for the growth.

SCOPE OF THE STUDY

 In the present scenario the business become competitive and technology has
changed the nature of business and organisation a lot. This study analysis in
detail about the functioning of the department on the basis of strength
weakness
 To understand the human resource management in the economy
 To understand the quality of product and consumer behaviour of the company

PERIOD OF THE STUDY

The study was conducted for a period of one month from 02.05.19 to 31.05.19, at
Eranakulam Regional Cooperative Milk Producers Union (ERCMPU) Thripunithura.

SOURCES OF DATA

a) Primary data
Primary data were collected through observations, personnel interview,
discussion with manager and employees of the various department of the
organizations
 b) Secondary data
Secondary data were collected through literature review which includes
company interval record publication annual report website(officials and
others)

LIMITATIONS OF THE STUDY

 The given time for the completion of this work was one month. If more time
was given, more information could be collected.
 Due to busy schedules of the officers and the employees proper detailed
discussion with them was not possible.
 The company was reluctant to provide some of its official documents and
reports which are confidential.
 INDUSTRY PROFILE

In India the white revolution has achieved its first goal of boosting production
and flooding the country side with milk it led to the sustained growth in the
availability of milk and milk product. In terms of total production India is the leading
producer of milk in the world is followed by USA the milk production in India
accounts for more than 13% of the total world output and 57% of Asia’s total
production during the pre-independence. Public and private agencies dominated the
dairy industry, although government policy. Did early efforts to organize during along
co-operative lines were made immediately after the enactment of the co-operative
society’s act 1912. The present day Anand pattern dairy co-operative at Anand in 1d
946 under the direction and guidance of sardar vallabai patel. They dairy farmers of
the knead. District of Gujarat organized themselves to form a dairy co-operative in
order to directly under take sale and processing of milk collected from member dairy
farmers district Milam food ltd are some of the dairy co-operative which now
functioning in India which here been formed in partnership with the respective dairy
federation of Kerala, Uthranjal, Utharpradesh, Andrapradesh.

In the year 1986 the department of defence established dairy farmers forms
supply of milk of British Troops stationed at Allahabad at advised by the board of
Agriculture. However only in the 20th century India witnessed a flurry of activities in
the field of cattle rearing a dairy.

In the year SHRI PESTIONI EOULJI POLSON established POLSON

MODEL DAIRY at Anand with the latest available technology and also manufactured
Polson Butter.

The dairy Industry was greatly affected during the second World War due to
shortage of milk and the demand for milk and milk product the from the army’s as
well as civilian’s population. After independence there was another support of
expansion in the field of piney co-operative.

Agriculture still continues to be major sector in India economy. Agriculture is lifeline

base for about 70% of the people of India is based on mixed farming i.e. crop
production through irrigation and rearing live stick. The demand for milk and
products continues to rise in our country year after due to growing incomes of
families.

To meet the growing demand of milk and products, there is the need to
revamp the country’s milk policy and promote manufacture of high quality dairy
products. There is very good scope for new entrepreneurs. The dairy industry
involves processing raw milk into products such as consumer milk, butter, cheese,
yogurt, condensed milk, dried milk and ice cream using processed such as chilling,
pasteurization and homogenization.

1.1 WORLD SENARIO

Animal milk has been part of the human diet in many counties across the world since
prehistoric times. Most of the milk for human consumption comes from 5 major
Mammals’ spies: cow, buffaloes, sheep, goats and camels. Buffaloes milk production
is concentrated in Asia especially India. Tradition dietary habit, climate and other
Natural conditions are important factors determining production and consumption of
milk and dairy products for a country or region. European countries, Arab nations and
South Asia, for example has a long history of animal milk production and
consumption whereas in East Asia and African countries, milk has been relevant in
the diet of the people. Owing to favourable conditions for dairy farming, New
Zealand, Australia. North and South America have become major milk producing
regions. However milk production or dairy farming, is only one link in the value
chain. On a Global basis, only a small percentage of global milk production is
consumed in raw form. In fact in most developed countries, the amount of raw milk
used for human
Consumption is only 5 to 10 percentage. More than 90 percentage of the raw milk is
processed into derivative products in these countries. Thus, dairy processing has
emerged as a major industry in itself.

Milk production is expected to shift from high cost to low cost countries, and output
growth will increasingly be located in regions with rising demand for milk and milk
products: continuing a trend evidences in the 1990s. As a result the proportion of
world milk production originating in the developing countries is projected to
increase. While some developing countries are projected to become more active in
export market, the developing countries as a whole would remain substantial net
importers of dairy products.

GLOBAL MILK PRODUCTION

Total world milk production is estimated to grow from 692 million tons in estimated
to grow from 692 million tons in 2010 to 827 million tons in 2020, as 19% increase.
692million global distribution of milk in 2010, according to the Global Dairy look
Report 2012, released in February 2013 by the global farmers.’

The Global Diary outlook report forecast that by 2020 the world annual production of
milk will grow to 827 million tons. Production by geographic region, however, is not
expected to shift significantly.

HIGHLIGHTE OF WORLD MILK PRODUCTION BY 2020

The European Union, EU28 (The 28th member state was actual in July, 2013. India
and the US are the large milk producers, in 2020.

However between, 2010 and 2020:—

 EU—28 share is projected slightly

 Share of India & china are projected to increase
 Share other region or countries are expected to remain equal

Due to worldwide growth in during consumption nearly all countries /regions are
projected to increase absolute projection volumes.

EXPORT OF MILK PRODUCTS

 New Zealand EU -28, Australia and US were the large exporters in 2010
 New Zealand, US. Exports are forecast to increase considerably by 2020.
 Russia and China, and Mexico Where the largest in 2010
 Argentina is expected to become a larger exporter of milk products.
MEGA DIARY FARMERS

U.S dairy farmers produced a record 200 million gallon of’ milk in 2012, due to their
ability to successful manage larger herds and increase per-cow milk production more
than half (57°/o) of milk produced in the U.S come from during farmers managing at
least 500 cows. Milk Production at during farming operation is increasing due to:

 Advantage in equipment
 Access to higher quality feed.

Changes in herd size and management Increased automation of new technology has
resulted in greater efficiency and economy of’ scale at large Diary farms. These
advances are making it harder for smaller, less technology sophisticated farmers to
stay competitive. Since 1992 the numbers of licensed farmers has decreased 61
%.Increased herd size around the globe has given way to the so called mega farmers.

Where herds of a few thousand cows are typical and herds can number in the terms of
thousands. Indian operates one of the largest US mega during Farmers
Managing30000 cows and Saudi Arabia operate the world largest Mega-during farm
with 38000cows.

TRADE

At the global level import demand for dairy products could reach 51 million tones in
2010. An increase of 12 million tones over the base period, a similar proportional
increase to that seen in the 1990s. This would imply that the proportion of total milk
traded would remain small - 8% of world production.

Approximately 85% of increase in import demand is projected to come from the

developing countries, confirming a trend evident during the 1 990s. While exports of
dairy products from the developing countries are also expected to increase, the
projections of consumption and production suggested that this group of countries as a
whole will face a growing trade deficit in dairy products .While highest growth in
import demand is projected for south East Asia; imports are anticipated to increase in
all developing country regions. However very few developing countries will be net
exporters of dairy products in 2010; these would include Argentina, Chile, Uruguay,
and India.

The developed countries are projected to continue to account for the bulk of exports
of dairy products in 2010- three quarters of trade only a slightly smaller portion than
at the start of the 1990s, when developed countries accounted for 8% of world export
show ever a shift in the relative importance of different regions is foreseen. The
proportion of world exports supplied by New Zealand and Australia are projected to
increase substantially, while those originating in Europe will decrease and the
situation in North America will change little. The imports of developed countries are
projected change little.

The imports of developed countries are projected to change little over the projected
period. For the countries in transition, limited growth in milk output and some
increase in domestic demand are expected to inhibit export growth and improvements
in domestic processing capacity should act to curtail import demand.

International prices for dairy products measured by an index grouping the single
commodities traded are not expected to increase in real terms over the next decade.
However, it is anticipated that, even at this price level, there would the enough
income growth in importing to stimulate production for export in low cost milk
producing countries.

1.2 INDIAN SCENARIO

India has one of the largest livestock populations in the world. 50%of the buffaloes
and 20% of the cattle in the world are found in India, most of which are milk cows
and buffaloes. Dairy development in India has been acknowledged the world over as
one of modem India’s most successful developmental program. Today, India is the
largest milk producing country in the world. Milk and milk products is rated as one of
the most promising sectors which deserves appreciation in a big way. When the world
milk production registered a negative growth of 2%, India performed much better
with 4% growth. The total milk production is over 72 million tones and the demand
for milk is estimated at around 80 million tons. By 2005, the value of Indian dairy
produce is expected to be Rs.1, 000,000 million. In the last six years foreign
investment in this sector stood at Rs.3600 million which is about one fourth of the
total investment made in this sector. Manufacture of casein and lactose, largely being
imported presently, has good scope. Exports of milk products have been decimalized.
The milk surplus states in India are Uttar Pradesh, Punja, Hariyana, Raathan, Gujarat,
Maharashtra Andhra Pradesh. Kamataka and Tamil Nadu. The manufacturing of milk
products is concentrated inthese milk surplus States. Today, India is the largest milk
producing country in the world. The production of milk products i.e. milk products
including infant milk food, malted food condensed milk & cheese stood at 3.07 lakh
tones in 19992000.Production of milk-powder including infant milk-food had risen
2.25 lakh tons in1999—2000, whereas that of malted food k al 65000 tons. Cheese
and condensed milk production stands at 5000 and 11000 ton respectively. Some
plants are coming-up to producing lactose, casein and improved Chees varieties

About the Indian Scenario

“The soul of India lives in its villages”, declared M.K. Gandhi at the beginning of 20 th
century. According to the 2011 census of India, 68.84% of Indians (around
833.1 million people) live in 640,867 different villages. This clearly indicates how
important villagers to country as India. Most of our village population has small land
holdings. Therefore agriculture has not been a paying proposition to small marginal
farmers. Dairy industry thus plays a crucial role in our economy. It was in late forties
when an integrated approach for dairy development based on farmers owned milk
cooperative was first adopted at Anand in Gujarat. Later it came to be known as
Anand pattern. This system basically includes milk production. Procurement,
processing and marketing through farmers’ cooperatives. Anand pattern has brought
social and economic changes in the lives of milk producers. The Government of India
adopted this approach as national model for dairy development in the mid-sixties and
founded the premier institutions NDD (National Dairy Development Board) and
Indian Dairy Corporation for replicating Anand pattern throughout the country. The
whole project under which replication was envisaged was named “Operation Flood”.
The success of Anand Pattern depends on establishing a strong cooperative
infrastructure at the grass root level. This could be further strengthened by making it
economically viable.

A Tribute to Dr. Varghese Kurien, The Milk Man of India

Dr. Varghese Kurien, the man who transformed lives of million people. He is the
person who taught poor famers how to dream high. His presence is immortal for
generations. Dr. Varghese Kurien (26 November 1921 - 9 September 2012) was a
renowned Indian social entrepreneur and is best known as the “Father of the White
Revolution”, for his “billion-litre idea” (Operation Flood) - the world’s largest
agricultural development programme.

This transformed India from a milk-deficient nation to the world’s largest milk
producer surpassing the United States of America in 1998, with about 17% of global
output in 2010- 11,which in 30 years doubled the milk available to every person.
Dairy farming became India’s largest self-sustaining industry. He made the country
self-sufficient in edible oils too later on, taking the powerful and entrenched oil
supplying lobby head-on.

He founded around 30 Institutions of excellence (like AMUL, GCMMF, IRMA,

(NDDB) which are owned, managed by farmers and run by professionals. As the
founding chairman of the Gujarat Co-operative Milk Marketing Federation
(GCMMF), Kurien was responsible for the creation and success of the Arnul brand of
dairy products. A key achievement at Amul was the invention of milk powder
processed from buffalo milk (abundant in India), as opposed to that made from cow-
milk, then the major milk producing nations. This led Prime Minister Lai Bahadur
Shastri to appoint him the founder-chairman of NDDB in 1965, to replicate Amul’s
“Anand model” nationwide. He is regarded as one of the greatest proponents of the
cooperative movement in the world, his work having titled millions out of poverty in
India and outside.
Operation Flood

The transition of the Indian milk industry from a situation of net import to that of
surplus has been led by the efforts of National Diary Development Board’s Operation
Flood Program under the ages of the former chairman of the board. Dr. Kurien,
launched in 1970. Operation Flood has led to the modernization of lndia sectorand
created a strong network for procurement processing and distribution of milk by the
co-operative sector. Per capita availability of milk has increased from 132 gm perday
in 1950 to over 220 gm per day in 1998. The main thrust of Operation Flood was to
organize dairy cooperatives in the milk shed areas of the village and to link them to
the four Metro cities, which are the main markets for milk. The efforts undertaken by
NDDB have not only led to enhanced production improvement in methods of
processing and development of a strong marketing network, but have also led to the
emergence of dairying as an important source of employment and income generation
the rural areas.

It has also led to an improvement in yields, longer lactation periods, shorter calving
intervals, etc. through the use of modern breeding techniques. Establishment of milk
collection centres and chilling centres has enhanced life of raw milk and enabled
minimization of wastage due to spoilage of milk. Operation Flood has been one of the
world’s largest dairy development programmers and looking at the success achieved
in India by adopting the co-operative route, a few other countries have also replicated
the model of India’s Whit Revolution.

Operation Flood’s objectives included:

1. Increase milk production (“a flood of milk”)

2. Augment rural incomes
3. Fair prices for consumers.

Anand pattern diary cooperatives

The foundation of Anand pattern of milk cooperation was laid with organization of
the Kaira District Cooperative ltd at Anand in Gujarat. In this pattern all functions of
dairying such as milk production, procurement, processing and marketing are all
controlled by the milk producers themselves. The structure of Anand Pattern milk
cooperatives consist of primary milk producers’ cooperative societies at the village
level, regional cooperative milk producers’ union at the regional level, and
cooperative milk marketing federation at state level. The village societies are the grass
root level units. A panel of elected members from the base level working as the apex
body of this model.

Amnul’s Success: A Model for Other Districts to Follow

Amul’s success led to the creation of similar structures of milk producers in ot her
districts of Gujarat. They drew on Amul’s experience in project planning and
execution. Even before the Dairy Board of India was born, farmers and their leaders
carried out empirical tests of the hypotheses that explained Amul’s success. In these
districts, milk producers and their leaders experienced significant commonalties and
found easy and effortless ways to adapt Amuls game plan to their respective areas.

This led to the creation of the NDDB with the clear mandate of replicating the Anand
Pattern’ in other parts of the country. Initially the pattern was followed for the dairy
sector hut at a later stage. Oilseeds, fruit and vegetables, salt, and tree sectors also
benefited from its success.
 COMPANY PROFILE

KERALA CO-OPERATIVE MILK MARKETING FEDERATION

Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called Milam

was established on April, 1980 with its head office at Thiruvanthapuram for the
successful implementation of the Operation Flood. MILMA Ernakulam Dairy came in
to the existence on 1st November 1989. It was registered under Indian Society
Registration Act.

HISTORY

Ernakulam regional Cooperative Milk Producers Union Ltd (Ernnkulam Milk Union),
Milma, was registered on 12.9.1985 with Ernakulam, Trichur, Kottayam and Idukki
Districts in central Kerala as its area of operation. The union along with its sisters
unions (TRCMPU&MRCMPU) is affiliated to the Kerala Cooperative Milk
Marketing Federation Ltd. KCMMF was set up in 1980 as the implementing agency
for Operation Flood II i the state of Kerala. The goal of KCMMF is “the socio-
economic progress of the dairy farmer through procuring, processing and marketing
of milk”. The mission of Milma is “farmer’s prosperity through consumer
satisfaction”. The ERCMPU operates on the truly democratic line of ‘of the farmer,
by the farmer, for the farmer”. The union has an elected board and all employees
including the Managing Director are its own employee’s. The Union procures milk
from farmers through affiliated Anand Pattern Dairy Co-operatives (APCOS) as well
as from the traditional societies, which are not affiliated. The Union could ensure
consistent and remunerative price to milk producers even when prices of most of
other agricultural produces were volatile. The prosperity of 2.79 lakh odd milk
producers of the state depends upon the Ernakulam Milk Union's ability to provide an
assured and regular market and remunerative price round the year for the milk
produced by’ them. Ernakulam Milk union has four diary plants viz..Ernakulum dairy
at Thripunithara. ‘Trichur Diary at Ramavarmapuram, Kottayarn Dairy at Vadanthoor
and Kattappana Dairy at Nirmala city. In addition it has products Dairy at Edapally,
manufacturing ghee, sterilized flavoured Milk. Peda, Ice cream, Yogurt etc. while
milk from nearby societies arc procured and processed diaries. milk from hinterlands
procured through 79 bulk Milk cooling units (BMCUs) set up in the dairy coop
societies (DCS) and chilling centres located at Muvattupuzha’ and Chalakkudy . In
consideration of a common identity for the quality of milk marketed by the Co-
operative sector Milma joined hands with NDDB in adopting a common mnemonic
logo “device of drop” and to strengthen the marketing activity of the organization. All
dairies and head office of the union have ISO 9001:2008 certification. The name
Milma has been derived by Kerala Livestock Development Board (KLD) and milk
Marketing Hoard (MMB) KLD&MMB existed from 1976 to 1981.

The name Milma represents:

 2,702 primary milk co- operative societies

 9.24 lakh farmer members

 Three Regional Co- operative Milk Producer's Union

 Eleven Diaries capable of handling 9.90 lakh liters of milk per day

 Thirteen Milk Chilling Centers

 Two cattle Feed Plants with cumulative capacity or 66MT per day

 One Milk Powder Plant of 10MT per day capacity

 A well-established Training Centre.

 8000 retail outlets

 Over 32000 people working either directly or indirectly for the functioning of
Milma
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
products

CORPORATE QUALITY POLICY

Ernakulam Regional co- operative milk Producers union committed to:

 To improve socio— economic situation of the milk producer through Anand

pattern of milk products co- operative societies and encourage production of
quality milk in its area of production on order to consistently supply safe,
hygienic and healthy quality milk and milk products to consumer and enhance
the consumers satisfaction.

 Continually improve the quality management systems adopted in this

Endeavour by arranging training for union employees and producers members
and meeting all the statutory and regulatory requirement of the products.
Milam is the constant touch with other organization in this sector.
The chief associates of Milma are:

1. NATIONAL DAIRY DEVELOPMENT BOARD

NDDB under Dr. Varghees Kurian’s set up KCMMF in 1980 ever since then, there
has been a very close co-cooperation between NDDB and the Federation. NDDB are
the originators of the operation flood program and have been funding agent for the
Operation Flood Projects in Kerala.

2. AMUL

The Dairy co-operative of Gujarat have been the inspiration for the development of
such a vast network of diary co-operatives in Kerala. Among the co-operatives in
Gujarat the Kara Districts co-operative milk producers union (AMUL) is the first
sector.

3. GOVERNMENT OF KERALA

The phenomenal success of the diary co-operatives in Kerala could not have been
achieved without the foundation of
 Animal husbandry activities (Animal Husbandry department)
 Diary Development department
 Kerala Livestock Development Board (Government of Kerala Understanding).

MOTTO

“The Goodness Kerala wakes Up To”

MISSION

‘Farmer’s prosperity through consumer satisfaction”

VISION

To constantly strive to provide valued consumers with the highest quality milk, milk
products and other product with the best standards of service by our passionate and
focused work forces using state of the art technology ensuring dairy farmer’s delight
by better realization of milk price and offering needed service at his/her doorstep.
LOGO OF MILMA

The logo of the right crescent and the name Milma in small letter under that. The four
crescents represent four important department of Milma. The left crescent represents
procurement and technical input department. The right crescent represents marketing
department. The top most crescent represent processing department which hold the
working of other two departments. Lowermost crescent represent administrative
department, which support all three departments. The name of Milma derived from
two word milk and marketing.

COMPETITORS OF MILMA

PRODUCT COMPANIES

• Milk Malanadu. Royal. A-one. K sheer a. Balagi. Star etc

• Ghee RKG. Nambeeshan. Namboodiri. Malanadu. Britannia etc

• Curd Malanadu. Milky mist

• Ice cream Uncle john. Lazza. Amul. Merryboyetc

•Milk powder Every day. Amul. Nestle. Nido

• Sip up Merriboy. Bombay pepsi. Mr.coolsip up etc

• Water Classic. Aquatic. Himalaya. Bisleri water

• Chocolate Cadbury. Nestle. Amuletc

•Mango drink Frooti. Jive

• Paneer Milky mist

 STREATEGY

The motto of cooperation “of the people, by the people and for the people “is the
foundation of the “three tier systems” followed by the organization. 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 units at the Regional level and
form Regional co-operative Milk producers Unions. This union are federated at the
State level to form Sate Federation namely, Kerala Co-operative Milk Marketing
Federation (KCMMF).

Figures at glance

1. Date of starting operation: 15.01.1990

2. No. of dairy plants: 6
3. Central products dairy: 1
4. No. of milk chilling plants: 4
5. No. of milk chilling centers: 2
6. No. of procurement and input centers: 10
7. No. of marketing depots: 10
8. No. of Human Resource Development Centers: 1
9. Turnover (2017-2018): Rs: 1031.18cores (Rs: 10311.8 million)
10. paid up share capital (2017-2018):49.76cores (Rs: 497.6 million)
11. Average daily procurement of raw milk (2017.2018): 593605 liters
12. Average daily sale of processed liquid milk (2017-20l8): 488241 liters
13. Average daily sale of skimmed milk curd (2017-2018):61187 kilogram
14. no. of farmers supplying milk to the union (2018 – 2017): 88937
PRODUCTS

1. MILK

I. Pasteurised Double Toned Milk

Contains1.5% fat and 9.0% non-fat solids. Ideal for elderly people since fat content in
low. Can also be used for whitening tea and for the preparation of milk based drinks
like fruit shakes. Fat will not settle at the top since the milk is homogenized.
Available in 500ml sachets.

II. Pasteurised Toned Milk

Contains 3.0% fat and 8.5% non-fat solids. Ideal for consumption by children in the
form of milk or in the form of brown beverages like Bourn vita. Fat will settle at the
top if Milk is kept still for some time. Available in 500 ml sachets.

III. Pasteurised Homogenised Milk

Contains 3.0% fat and 8.5% non-fat solids. Ideal for whitening tea/coffee and for the
preparation of solid curd. Since the milk is homogenised, whitening capacity is more
and less amount of milk will be sufficient for whitening tea/coffee. The milk will not
stick to vessels on heating and hence washing of used vessels is easier. Fat will not
settle at top since the milk is homogenised. Available in 500 ml sachets.

IV. Pasteur 1sed Toned Milk – Special

Pasteurized Toned Milk in which Fat is 3.5% and SNF is 8.5%. The milks also
Homogenised to have smaller and uniform fat globules leading to no cream-line
formation, more full-bodied flavour & better mouth feel.
 V. Pasteurised Standardised Milk
Pasteurized Toned Milk in which Fat is 3.5% and SNF is 8.5%. The milk is also
homogenised to have smaller and uniform fat globules leading to no cream-line
formation, more full-bodied flavour & better mouth feel.
2. FERMENTED PRODUCTS

I. Skimmed Milk Curd

Contains 10% non fat solids. Ideal for making curries. Prepared under hygienic
condition by fully machined processes. Cannot be used as starter curd for converting
milk into curd. Available in 500 ml sachet.

II. Milma Ghee

Contain 99.7% milk fat. Manufactured by melting fresh cream under hygienic
conditions. Milma Ghee has the ideal golden yellow colour due to presence of natural
carotene in cow milk. No artificial colour or flavours are added in to Milma ghee.
Nature aroma and flavours of ghee is retained since the ghee is produced directly from
fresh cream instead of going in for melting stored butter.

III. Milma Sambaram (Butler Milk)

Contains 4.5% total solid and natural flavour extracts ideal as thirst quencher during
hot season. Prepared under hygiene conditions using fully mechanized process.
Available in 200m1sachets.

IV. Paneer

Paneer also called Chenna is a milk product made by coagulating boiled hot whole
milk with citric or lactic acid and subsequent drainage of whey. It is a fresh source of
milk protein and has good flavour and smooth texture. It is used in the preparation of
various dishes.
 V. Set Curd
This is a coagulated product obtained from the pasteurized toned milk by lactic acid
fermentation through the action of lactic cultures. The product 3.2% and SNF 9.0%

3. SWEETS & CHOCOLATES

I. Milma Peda

A natural milk toffee manufactured by the heating and removal of major portion of
the water content of fresh milk and by the addition of sugar. No colour or
preservatives are added. Natural colour in the milk gives the product its characterizing
colour. Ideal for children and as an after food sweet. Available in packs of 18 gms.
180 gms and 900 gms.

II. Krispy Chocolate

Milma Kripsy is a choco-mass chocolate coated with wafer biscuit.

III. Gulab Jam

It is a desiccated milk product manufactured by mixing Milk Khoa, Maida and

skimmed milk powder, converting the mix into balls and then by frying the halls in
ghee. The fried balls when soaked in sugar syrup turn out into delicious Gulab Jam
which isthen packed in sterilized tins.

IV. Milma Instant Palada Mix

Palada Payasam is a traditional delicacy of Kerala. The preparation of which is

laborious, time consuming and requires professional skill. It is made by concentrating
high fat milk, rice granules and sugar. Milma has standardized its own large scale
production process for the instant palada mix which is made available in dry powder
form. Milma Palada Payasam is easily prepared from this mix by simply mixing
Palada mix with hot milk and beating the same for 10 minutes. Available in packs. No
artificial colours or flavours are used in the product.

4. ICE CREAMS AND DESSERTS

I. Kulfi

This is an ice cream in which cardamom and saffron flavours are used and filled in
moulded containers.

II. Cone Ice Cream

This is an ice cream which is filled in the dry cone-shaped pastry. Made of a wafer
which enables ice-cream to be held in the hand and eaten without a bowl or spoon.

III. Choco Bar

This is a stick ice cream having chocolate as an outer layer and vanilla flavours ice
cream inside.

IV. Ice Cream

Made from pure milk cream (unlike many private brands who vend frozen desserts
made from cheap vegetable fats in the juice of ice cream). This is a real ice cream
made available in various flavours and packs. Produced by hygienically n ISO 9001-
2008 and HACCP certified production facility. Milma Ice Cream is available in a
range of lip smacking flavours, vanilla, Strawberry, mango and fruit & nut.

V. Milma Sip Up

Contains the mixture of flavours, colour powders, sugar and this mixture isadded to
the milk. Flavours used are chocolate, orange, pineapple and pista etc.
VI. Cassata

Mixture of tasty ice cream and toothy fruity encircled with on fresh sponge cake. It is
a delicious snack rich in Milma cream.

5. DRINKS

I. Milma Plus (Rose Milk)

Manufactured by addition of sugar and flavour to homogenised double toned milk.

The product is sterilised along with the glass container by heating to a high
temperature in specialised ovens after which containers are stores in chilled condition
in outlets. Ideal for elderly people as well as children since it contains very little fat
and is far more nutritious than cola drinks. Available in 200 ml containers and in
Strawberry and cardamom flavours.

II. Milk Powder

Milma Dairy Whitener is a partially skimmed milk powder with added sugar. It is
Ideal for preparation of various delicacies. It can also be used as a whitener for tea
and coffee. I he dairy whitener is packed under Nitrogen and has excellent solubility
and a fine granular texture.

6. CATTLE FEED

I. Milma Gomathi Plus

Best quality cattle feed which is produced under quality supervision of nutritionist
from premium quality ingredients after many quality control and lab tests. Packed in
50 Kg. HDPE bags in pellet form.
II. Milma Gomathi Super

Specially formulated feed for milk producing animals and for body maintenance.
Blend of protein, carbohydrates, fat, vitamins and minerals in this pellet formed
compound cattle feed helps the milky animals to increase their milk production
packed in 50 Kg. HDPE bags in pellet form.
.
III. Milmamin

Balanced geographically formulated mineral mixture for cattle packed in 1 Kg.

packets. Milrna in helps improving the growth in young calves. Feeding of Milma
minimum proves fat and milk in dairy cows. This mineral supplement helps reducing
inter calving period.
FUNCTIONAL DEPARTMENTS

KERALA SATAE CO-OPERATIVE MILK MARKETING

FEDERATION (KCMMF)

THIRUVANAMTH ERANAKULAM MALABAR

APURAM REGIONAL CO- REGIONAL CO-
REGIONAL CO- OPERATIVE OPERATIVE
OPERATIVE MILK MILK
MILK PRODUCERS PRODUCERS
PRODUCERS UNION UNION
UNION (TRCMPU) (ERCMPU) (MRCMPU)

THIRUVANAHAPURAM ERANAKULAM
PALAKKAD

KOLLAM KOTTAYAM
KOZHIKODE
PATHANAMTHITTA THRISSURE
KANNUR
ALPUZHA
IDUKKI WAYANAD

SOCITIES (APCOS)

FARMER
 BOD

MD

DM

Procureme Producti Finance Quality Maintena Personal Marketin Personal

nt and on Dept. Dept. control nce & Dept. g Dept. Asst. to
Input Manager Manager Manager dept. Manager Manager DM
Dept. Assit.
Manger Manager

Asst. Asst. Accounts Asst. Deputy Personal Asst. Attender

Manage Manager Officer Manager Engineer Officer Manager
r

Milk Tech. Junior Quality Tech. Asst. Asst.

procureme officer Superinten control Superinten Personal Marketing
nt officer d Officer d Officer Officer

Asst. Milk Tech. Senior Dairy Technician Junior Marketing

procureme Asst. Chemist. Superinten Organiser
Superint
nt officer
end d

Junior Lab Marketing

Plant Asst. Technicia Senior Asst.
Senior
Operator n Asst.
Supervis
ior

Attender Lab Asst. Junior

Plant Junior Asst. Asst.
Junior Attender Stenographe
Asst. r

Lab
Attender Office
Attender
FUNCTIONAL DEPARTMENTS

Functional Departments or area means that the “Grouping activities or process on the
basis of their needs in- accomplishing one or more tasks” it is a alternative term for
business unit. Ernakulam Regional ‘Co- operative Milk Union is constituted by seven
main functional departments. Each department is headed by departmental managers
and assistant managers. The major four departments at ERCMPU are as following:

 Procurement and Input Department

 Production Department
 Human resource Department
 Marketing Department
 Finance Department
 Quality control Department
 Maintains Department

 PRODUCTION DEPARTEMENT

Supply of milk in our state is much below demand. The state has to procure milk from
other places. Milk is essential commodity and the frequent increases in price will
affect the common man. Further, more investments coming in the population is also
expected to rise. Steps should be taken to encourage dairy farming. Hybrid varieties
or cattle should be given to farmers. This will help in the overall development of the
state as well. Production department deals with processing of milk.
1.1 DEPARTMENT STRCTURE

PRODUCTION DEPARTMENT
MANAGER

ASSISTANT MANAGER

TECHNICAL OFFICER

TECHNICAL SUPERIDENDENT

PLANT OPERATOR

PALNT ATTENDER
1.2 Functions of Production Department

Important functions of the department are:

 Reception of Milk

The raw milk collected from farmers is kept in BMCUs. From every BMC, milk is
transferred to regional dairies like ERCMPU twice a day by using specially prepared
insulated tanker vehicles. Insulated tanker vehicles were first introduced by Milma in
the country. At first, the milk is received at the tanker reception bay and then it is
transferred to a platform container known as RMRD(Raw Milk Reception Dock).
After the quality check, the milk is kept is a reception tankers just before chilling.
Milma collects milk from inside and outside the state to meet the demand. Andhra
Pradesh and Kanataka are the two states on which Kerala depends more. The milk
from Andhra Pradesh is in condensed form and then diluted to make it into the form
we require.

 Processing of milk

1. Chilling of milk

Milk procured from the BMCs is first moved to the containers where it is stored.
The raw milk is then chilled at the plant using plate chillers and moved to be silo.

2. Pasteurization

Milk is an excellent medium tor microbial growth, and when stored at ambient
temperature bacteria and other pathogens soon proliferate. Pasteurization is the
process or improving the quality of milk by eliminating the harmful
microorganisms which maybe present in the milk collected from the societies.
Pasteurization is actually a temperature treatment. The milk from silo is heated up
to a temperature of 71.7°C. The mycobacterium tuberculosis is the most heat
resistant microorganism which may be present in the milk and its heat resistance
is Up to 71.5C. Basically there are two types of pasteurization:

 High Temperature Short lime Pasteurization (HTST)

  Low Temperature long lime Pasteurization(LTLT)

3. Standardization

Standardization of milk is a process done to standardize the fat and SNF

percentages in the procured milk. ERCMPU produces two varieties or milk with
specific fat and SNE percentages. They are shown below:

Variety Fact % SNF %

PRIDE 3.5 8.5

SMART PLUS 1.5 9

HTM (Homogenized Tonned Milk) 3 8.5

Table – 1

Standardization of milk can be achieved by cream separation or addition of SNF

powder or by a combination or both. The average fat content of milk collected from
APCOS is 3.9%. Each type of milk is prepared by removing the excess amount of fat
over the standard amount. The standard SNE content of the procured milk is 8.3%.
The standard SNE percentage for each type of milk is met by the addition of the
appropriate amount of SNF powder.

4. Homogenization

Homogenization is the process of reducing the size of fat globules by breaking them
down into smaller ones using equipment called homogenizer. Homogenization is done
only to Pride milk. They will reduce the size of fat globules up to 0.2mm. Advantages
of homogenization are:

• Increases solubility

• Uniform distribution of fat globules

• Increases whiteness in milk

 • Lab test

As far as Milma is concerned, being a food processing industry; they have given
supreme priority to the final products. For that, immediately after homogenization the
quality of milk is assured by a quality control officer through lab test.

5. Packaging

Alter lab test, the milk was carefully packed in good quality hygienic plastic sachets
which had met enough food quality standards. The plastic sachets are subject to
ultraviolet rays for sterilization. Presently, at Milma there are sevenpackaging units
which are running throughout the day. After safe packaging the milk packets are
shifted to a cool zone for refrigerated storage for a clean and safe dispatch. The
packaging machine packs 35 packets per minute.

6. Dispatch

Distributors collect milk and other milk products from dispatch section and distribute
it to the retailers. Ernakulam dairy has n separate dock for the dispatch of processed
milk. The dispatch dock is adjacent to the cold storage room and has provision for
loading vehicles for dispatch.

 Cleaning in place

In the processing plant, so as to ensure the quality of final products very neat and tidy
atmosphere is maintained. To achieve this, after every shift of operation they always
clean the entire milk channels by using caustic soda, hot water and other sanitizers.
They are washing the entire machinery in every 5 hours. As the machineries are bulky
in size and are not transferable, they are cleaned at the actual place where they exist.
This process is known as “Cleaningin Place”.
  Storage Capacity

• Capacity of a silo: 30000 liters

• Capacity or chillers: 10000liters hour

• Capacity or Pasteurizers

a) Pasteurizer 1: 10000 liters/hour

b) Pasteurizer 2: 20000 liters/hour

Capacity of boiler: 3 tons of steam per hour

 Production system

Milma is following a process type production system. In a process type production

system there is a continuous production of 24 hours. This type of production system is
carried out where there is a huge demand for product. As milk has a huge demand in
Kerala, they have to produce it continuously for 24 hours. As the working hours in the
organization are 24 hours. There are three shifts:

Shift 1 : 8amto4pm

Shift 2 : 4pm to 12am

Shift 3 : 12am to 8am

Production planning

Planning is necessary for the smooth running of the organization. Milma has a well—
defined planning system and they will plan the schedule to meet the customer
demand. First, they will plan the standard quantity to be produced and then they will
try to meet that standard. If they can't achieve the target, they will find out the
reasons. The format of their planning schedule is given below.
 Product Quantity to be SILO/Tank Quantity to be Remarks
produced produced

Table- 2
Work in plant

Societies: 4 Milk Producers

(APCOS) Raw milk is accepted
based on:
Raw milk at Dairy • Organ logisticevaluation n
• Testing for fist On SNF
• Acidity
Test for • MRTP test for bacterial load
Acidity • SPC

‘For control growth of

Coliform Chilling to < 10° C bacteria raw milk is
chilled. Plant either diary
Coliform
tested for fat SNF acidity.
MBRT, Temperature

Processing Heating milk to aminimum

Curd, temperature or 72°C holding for
sambharam 15°C and cooling to less than
5°C.This will destroy all
pathogenic living beings.

Standardisation
and testing ‘Fat 3.05% SNF 8.5%.
Skim milk

Packing and Filled only after ensuring quality

cold storage standards

Ghee
Distribution
At dispatch dock sachet tested for
MBRT, SFN and coliform

Dispatching
to agents
Market sample tested for MBRT,
SNF and coliform
2. HUMAN RESOURCE DEPARTMENT

The most important resources for an organization are its human resource. So it is very
much important to manage and utilize the human that is the employees of the
organization most effectively. The Ernakulam dairy has an efficient personnel and
administration department. This department is headed by personnel officer and is
responsible for handling the personnel and administration in dairy.
2.1 DEPARTMENTAL STRUCTURE

Personal department manager

Personnel officer

Assistant Personnel officer

Junior Superintendent

Senior Assistant

Junior Assistant Stenographer

Office Attender
2.2 Roles and Responsibilities

 Assistant Manager

 Assists in matters relating to selection, training, and promotion of employees

 Ensures discipline in the firm

 communication between the management and the employees

 Solving the problems regarding employees

 Takes precautionary measures to avoid unrest in the firm

 Assistant Personnel officer

 Assists the assistant HR manager

 Junior Superintendent

 Deals with salary matters such as ESI, PF etc.

 Deals with welfare of the employees

 Senior Assistant

 Deals with transfers, payments etc.

 Junior Assistant

 Deals with primary stages of grievance redressal

 Stenographer

 Perform secretary jobs towards assistant manager

 Typist

 Perform job related to typing the official matters of the firm

  Attender

 Collect couriers and dispatch tapals

2. 3 Staff Policy

There are 250 employees in Emakulam unit. It includes 32office staff and rest is
workers. The employees have formed a welfare society named ‘Milma Employees
Welfare Organization’. It provides loans to its members at a nominal rate of interest.
It also provides scholarship and cash award to the children of its members who secure
proficiency in their studies.

2.4 Wage Payment and Incentive plan:

i. Time based wage system:

Milma follows time based wage payment system i.e. employees are paid on the
basis of time worked. Some of the non-financial incentives include job security,
promotion, training, social security measures etc.

ii. Fringe benefits

• some of the fringe benefits are as follows:

• Leaves: - Every employee can take 12 casual leaves a year

• Provident fund and gratuity.

iii. Promotion and Transfer policy

The policy applies to promotion within worker categories and workmen

confirmed in the permanent service of the federation working of its various units
within Kerala state and at the registered office. Promotions are on the basis of
seniority rather than merit.
iv. Training and Development

Milma sends their employees to many training institution across India. Training
includes techniques like lecture, workshops, seminars etc. Milma also gives
apprenticeship training to workers and provides stipend.

2.5 Selection Process

Temporary staff is recruited by the cornered units and permanent staff is recruited h
the head office. Selection processes are as follows:

 Invited application

Publish an advertisement regarding job vacancy and qualification required

 Screening the application

This process is carried out to reduce the number of applicants and also to find
out suitable candidate

 Interview
This is the third step in the selection process. It is conducted by the top officials
of ERCMPU.

 Final selection

The selection process complies only after the selected candidate is given the
appointment letter. The letter mentions the terms of appointment, pay scale etc.
The selected candidate undergoes a probationary period of one year.

2.6 Trade Union

Trade unions are voluntary associations of workers or employers formed to

Promote and protect their interest through collective action. The main trade unions in
ERCMPU are All India Trade Union Congress (AITUC), Centre of Indian Trade
Union (CITU) and Indian National Trade Union Congress (INTUC).
2.7 Promotion

Employees are promoted based on their seniority. The worker category promotion is
on the basis of standing orders and officer category on the basis of Staff Regulation
Rules. Promotion for the employees will be given after 5years. If the employees are
not promoted they will be rewarded high grade after 8 years.

2.8 Performance Appraisal

Employees in any organization must be motivated to yield better result. The most
important way to motivate is through performance appraisal. It is done in every six
months. Usually department heads conduct the performance appraisal.

2.9 Employee welfare Measures

 Canteen

Canteen functions on contract basis. Usually it's a one year contract. Milk, gas and
curd are given free from the industry. Food subsidy is also offered to the employees.

 Restroom

Workers are provided with neat and tidy rest room.

 Transportation

Transportation facilities are arranged for senior employees working in ERCMPU.

 3. MARKKTING DEPARTMENT

“Your Health is our concern” is motto of Milma, these five words say the story of
long year’s leadership, big market capitalization and customer satisfaction which
Milma delivered since long years back. “Ernakulam Regional Cooperative Milk
Producers Union” has a very good and wide spread marketing network. Ernukulam,
Thrissur, Kottayam and lduuki are the four districts under ERCMPU’s area of
operations. The operation area of marketing department of ERCMPU is generally
seven zones. There are supervisors for each zone.
3.1 Departmental Structure

Marketing Department Manager

Assistant Marketing Manager

Assistant Marketing Officer

Marketing Organiser

Marketing Assistant

Junior Assistant
3.2 Functions

 Sale of milk and other milk products

 Distribution of the products

 Finding potential markets

 Collecting payments from the agents

3.3 Roles and Responsibilities

1. Marketing Manager

 Coordinate all marketing activities

2. Assistant Marketing officer

 Market all Milma products including those which arenot produced in

Ernakulam units

3. Marketing organizers

 Dealing customer complaints

 Agency promotion

 Finding potential markets

4. Marketing Assistants

 Cash collection by agents

 Milk dispatch activities

 5. Junior Assistant

 Issue invoices

 Maintain marketing accounts.

6. Salesmen

 Intermediation between the customer and Milma

 Sell Milma products

 Maintain inventories in the stores

3.4 Pricing Policy

The prices of Milma products are fixed by the Govt. Cost plus profit pricing strategy
is used.

3.5 Promotion

There are hardly any promotional activities. Advertisements are only used when any
offers are provided.

3.6 Distribution

Milk is distributed only through retailers. Other Milma products are distributed
through both wholesalers and retailers. Advance payment is to be made by the agents
for the distribution of milk.

3.7 Market share

Milma milk has a market share of approximately 63% and is leading in the market.
But other Milma products have relatively small market share as they just meet the
target set by the head office.
4. FINANCE DEPARTMENT

The finance department of Milma deals with all matters relating to finance such as
procurement of fund, determine the source of fund and utilization of these fund. All
the rules and policies regarding the finance department are as per the KCMMF
guidelines. The company follows the straight line method for depreciation. Each units
of’ Milma records the transaction and prepare its accounts relating to that particular
unit only.

In this organization. i.e. ERCMPU assistant finance manager plays a vital role and
have more responsibilities. The role of assistant accounts officer is to prepare the
accounts of all the financial transaction done for the organization. The duty of
assistant accounts verification of all proposals related to accounts etc. junior
superintend also have an important role in the organization. His work includes
verification of cash book, bills and vouchers, monthly preparation of reports on
statutory documents remitted to the government processing and financing agreements
relating to transports. Other staffs in finance department are senior assistant and junior
assistant.
4.1 Departmental structure

Finance Department Manager

Accounts Officer

Junior Superintendent

Senior Assistant

Junior Assistant

Attender
4.2 Functions of Finance Department

 Providing financial assistance as per the departmental requirements

 Keeping the monetary transactions in the book of accounts

 Proceeding requisitions of Milma, Tripunithura unit's requirements towards

the head office.

 Finance department also deals with the systems department

 Systems department operates with software, Milk Integrated Information

System which is made by KCMMF

4.3 Roles and Responsibilities

i. Manager

 Deals with the entire functions of’ the finance and systems
departments.

 Final verification of all financial matters.

 Confirm sending the concerned statements to the unit heads

ii. Accounts Officer

 Verification of entire accounts.

iii. Superintendent

 Verifies the milk value

 Computing the statutory to payments

 Preparing the inter units transfer

 iv. Senior Assistant

 Transactions relating to the outside purchases

 Transactions relating to the transportations & distributions

 Transactions relating to the TA

 Issuing cheques

v. Union Assistant (cashier)

 Issuing cash payments. especially salaries and wages

 Making advance payments.

vi. Management Apprentice

 Dealing with bank matters

vii. Occasional Apprentice

 Managing the files

 Collecting couriers

viii. Computer Technician

 Development of software to support various functions

 Support management information system

 Networking
4.4 Sources of Finance

 Long term

The source of long term finance is only through loans. Milma gets financial aid from
NDDB through KCMMF. An agreement regarding the financial assistance exists
between the federation and NDDB. As per the agreement 70% of the loan amount
should be repaid and the remaining 30% is subsidized.

 Short term

The source or short term fund is procured from to be Canara bank at the prevailing
interest rates. It is mainly in terms of overdrafts

4.5 Modes of Payment

HRD department prepares the payment for employees and sends to the finance
department. Payments are made in two ways, through direct cash from the department
or through the Canara bank. Overtime payment is not paid in cash but paid in bank.
The different modes of payment are:

 Cash Purchase

Make payment within 10 days or purchasing the milk from the societies

 Credit Purchase

15 days get as credit period for film (plastic cover) purchase

 Advance Payment

Advance payment is needed for purchase or skimmed milk

4.6 Depreciation

The depreciation pattern is maintained as per the Income Tax schedule. Every year the
firm prepares provision of depreciation. The following are the depreciation rates for
concerned assets:

• Building - 5%

• Factory building - 5%

• Plant &Machinery - 30%

• Vehicles - 20%

• Furniture - 15%

4.7 Auditing Process

The dairy has statutory auditing, which is done by to be registrar of the cooperative
society. For the purpose, a representative is appointed in the dairy as their concurrent
auditor.

1. Concurrent audit : Done by auditors from cooperative department

2. Pre- Audit : Performed by an external chartered accountant

3. Sale Tax Audit : performed by concerned Authorities

4. Income tax audit : Performed by Vamm and Varma Associates

4.8 Profit Sharing

The profit earned is given to the farmers as per the quantity and quality of milk they
supply to the concerned society, further; the dividend is paid to the shareholders.
4.9 Income Tax

The organization is bound to pay income tax as per Kerala Cooperative Societies Act.
Every year a certain amount is paid as tax from its profits. Tax planning is done to
avoid paying huge tax. Tax planning is done by ERCMPU with the approval from the
board.

4.10 Computerization of the Department

In Kerala, Milma is the first of its kind to computerize its departments. Milma has its
own custom made software for the accounting activities such as recording of financial
transaction. Preparation of bills and vouchers, manufacturing account, trading and
profit and loss account and balance sheet are prepared at the end of each month and
consolidated financial statements are prepared at the end of every financial year.

4.11 Statements and Ledgers

a) Journal

b) Ledgers

c) Sub ledgers

d) Trial Balance

e) Profit and Loss account

1) Balance sheet (yearly)

g) Bank reconciliation

h) Budget
5. QUALITY CONTROL DEPARTMENT

The term of quality can be defined as the sum total of all the attributes of a product
which make it differ from other similar products. Simply quality means deviation
equal to zero. It is the degree of effectiveness of products in satisfying expectations in
the potential customer about the product.
Quality of outgoing milk is maintaining in accordance with PFA standards.
Outgoing milk is checked for its fat and SNF percentage and also for its
bacteriological content quality department provides technical assistance not only to
the plant but also to the primary cooperative societies associated with the plant at
most care is given to ensure the quality of produced and outgoing milk and milk
products. Strict quality control measures are adopted to ensure only very good quality
products are provided to customers. Number of quality test is conducted at ERCMPU
at every moment of operation like milk reception, processing, packaging and dispatch.
1.1 Structure of quality department

Manager

Quality Control Officer

Dairy Chemist

Micro Biologist

Lab Assistant

Attender
Production of milk constituents

ERMCPU at every moment of operation like milk reception, processing, packaging

and dispatch.

SPECIES WATER FAT LACTOSE PROTEN ASH

COW 87 4 4.8 3.5 0.7
BUFFALO 83 7 5 4 0.2
GOAT 87 4.3 4.3 3.5 0.9
HUMAN 87.7 3.6 6.8 1.8 1

Table

1.2 Quality of Milk

In case of milk it acquires some natural properties which give a clear identity on it.
Some of the qualities of milk are categorized below.

 Nutriental Quality

 Physical Quality

 Microbial Quality

 Nutriental Quality

88%water-H20
12% solids (solids = FAT +SNF)
FAT carbohydrates- sugar (lactose)

Lacta Albumin

LactaGlobalumin
Proteins
Ceasium
SNF

Vitamins Vitamin A to k, but Vitamin in very low quantity

Minerals Metal very low content of iron

Non metals

Physical Qualities

1. White liquid

2. Special gravity 1.025-1.031

3. Boiling point 1OO.16

4. Freezing point O.55

Qualities

According to B/S standards

• 2 Lakh /ml-Excellent quality

• 10 Lakh/m 1-good quality

• 10-50 Lakh /m 1-fair quality

• Above 50 Lakh /m1-poor quality

1.3 Quality Control Measures at ERCMPU

For the assurance of food and safety ERCMPU conducts a series of sophisticated
and very accurate quality measures on every point of their operation which starts
from procurement of milk goes though processing and finalize in dispatch.
Various quality measures taken at ERCMPU are as shown below:

 Suppliers audit whenever it demands.

 Food safety audit once in three months

 HACCAP audit once in three years

 Food safety meeting regularly on every month heading by quality

compulsory daily.

 Cleaning in place (CIP) after all shifts of operation.

 After processing one shift milk the entire channel of milk flows will clean
by pumping sodium hydroxide in high pressure through all the channel of
stainless steel.

1.4 Quality Control checks at ERCMPU

For the assurance of food safety ERCMPU conducts a series of sophisticated and
accurate quality measures on every point of their operation which starts from
procurement of milk goes through processing and finalize in dispatch. Each
quality checks are related to various conditions of milk and other substances. It
was ordered as while procurement, reception, pasteurization, packaging, dispatch
etc. Various quality measures taken at ERCMPU are shown below:
1. Orognolitic Test (At RMTf [Raw Milk Reception Dock])

 Colour
 Flavor
 Appearance
 Taste
2. Platform Test

 Sediment test
 COB Test (clot on Boiling)
 Alcohol Alsarin test
 UHT test (Ultra High Temperature)

5. Planting Test

 Microbiology Test-MBR time must be more than half an hour

 Standard platelet (SPC)

6. Test on Milk Tanker

 Temperature
 Colt on boiling
 Fat percentage
 SNF percentage
 Acidity
 Alcohol alsarin Test

7. Test on Pasteurized Milk

 Temperature
 Clot on boiling
 Alcohol alsarin test
 Acidity MBR must be minimum 5 hour

8. Test on Butter

 Fat percentage
 Moisture percentage
 Salt percentage
9. Test on Ghee

 Moisture percentage
 Free fatty acid (FFA) content

10. Test on Curd

 Temperature

 Heating Temperature
 Incubation Temperature
 Processing Temperature

 Acidity
 PH
 Standard platelet count
 Coli form count
 Standard platelet count
 Coli form count
 Yeast and Mould count
 Ph
 Standard Plated count (SPC)
 Total solids
 FATs
 SNF
 Yeast and Mould count

11. Equipment Sanitation

 Line testing
 SWAB Test
 AR count
 water analysis
 Microbiological Analysis
 Chemical analysis
 Cleaning in place (CIP)
 12. Raw Material Analysis

 LDPE Test (Low Density Poly Ethylene)

 Butter cartons
 Ghee bottle
 Nitric acid
 Caustic Alkaline
 Detergents and Sanitizer
 Compounds

11. Screening Of Antibiotic Residence Of Milk (ABR)

This test is to ensure the quality of final product milk before send for packing.
6. PROCUREMENT AND INPUT DEPARTMENT

1.1 Structure of Procurement and Input Department

Assistant Manager

Milk Procurement Officer

Senior Supervisor

Junior Supervisor
MILMA as organization which function with an aim of providing with function with
an aim of providing with quality product, also takes due care in ensuring the quality of
raw material milk, which is highly perishable in nature. Timely steps are to taken to
ensure the efficiency and effectiveness of production. The two main functions of this
department are milk procurement and providing technical input service.

Procurement

The main function of procurement unit is to collect milk from local societies. The
supervisors provide necessary suggestion to the farmers and to the local societies.
Ernakulum dairy had 48 bulk milk cooler unit (BMCU).The milk is from BMCU is
processed in Ernakulum dairy.

Providing Input Service

MILMA also provide technical input service to the farmers These input service
include, balanced cattle feed, vetinary inputs, vetinary camps, vetinary emergency
service, embroyo transfer project and artificial insemination foot and mouth disease
control, co-operative development activities etc.. Input service include all that
enhance the efficiency and Profitability of milk production
7. MATERIALS - STORE DEPARTMENT

1.1 Storage of Material

1. Location for the storage of material shall be fixed taking into consideration the
free and easy access, easy identification, safety, storage space, required to.
2. The racks should be numbered serially (numerically) and the shelves of the
racks shall be marked with alphabetical form bottom to top.
3. Small items such as papers shall be kept in bins with due identification and the
bins shall be placed in the racks
4. Each of items in the stores should have identification label or mark so that the
item can be traced easily.
5. The material kept in the store shall be preserved properly against all types of
damage, pilferage, theft, deterioration.

1.2 Location

The store department of Ernakulum dairy situated nearly the plant and follow FIFO
method.

1.3 Purpose

The purpose of this department is to establish a system for store activities.

1.4 Application 1.1

1. Material inward activity

2. Material issue and control the following activities done at store of Ernakulum
dairy.

3. MIS reports relating to inventory at store.

1.5 Responsibility 1.2

Store in charge is responsible for the implementation or this procedure with delegated
responsibilities to other staff as required.
1.6 Procedure

 Processing of Purchase Order

Store in charge shall monitor the inventory level of various items of regular
consumption and shall communicate to purchase department who will process in
accordance with the procedure QSP 2002.

 Material Inward
 Store in charge shall inward material, which is procured fulfilling one of the
following criteria.
a. Material procured against purchase order
b. Material procured against cash purchase bellow 2500/-duly approved
by relevant authorities.
 All incoming material shall be entered in goods inward /inspection note
(from# STR/F01)
 On completion of goods inward/inspection note (From #STR/F01) store in
charge shall hand it over to concerned inspection agencies given in the next
page
 On the receipt of goods inward /Inspection note, Store officer shall distribute
the original copy to account section through department. Along with the bill
/invoice a duplicate copy shall be retained in store.

Table

RESPONSIBLE FOR
Sl.No DESCRIPTION OF MATERIAL
INSPECTION
1. All engineering goods Deputy engineer , store in charge
2. Consumable for production Concerned section head (TO)
3. Sample ,film ,chemical, acids Head quality control/QCO
4. Laboratory items Head quality control /QCO
5. Printing & stationary Concerned section head /store in
change
6. Society items(P&I) Head procurement & input
  Store in charge shall be updating the stock position in computer as per goods
inward/inspection note. If the material is rejected it shall be send back to
supplier with rejection note (From #STR /F02).duplicate copy will be retained
in store.

 Issue of Material
 Any issue of material from the store shall be based on indent (store requisition
form #STR/F03)
 Indent is a request by the department head or authorized official to issue
material form store officer to issue material from the store. The following
persons are authorized to issue the indent to the store.
 All section head for store items relating to their section.
 DE's and T.D's
 T.S (Dairy)
 A.M.O/M.O/ the person in charge of the supply management.
 The original indent shall be kept in the store and the duplicate shall be
retained with indenting department.
 On completion of issue material (against indent) store in charge shall update
the issue details in computer and take print of days transaction report
(#STR/FD4) on daily basis and the same shall be filed in stores
 To extent possible, store in charge shall ensure shelf life items are monitored
periodically.

The extent possible, store in charge .shall ensure material are issued on FIFO basis.
 CHATER 4

SWOT ANALYSIS

SWOT analysis is a study undertaken by an organization to identify its internal

strengths and weaknesses, as well as its external opportunities and threats. What
makes SWOT particularly powerful is that, with a little thought, it can help you
uncover opportunities that you are well-placed to exploit. And by understanding
the weaknesses of your business, you can manage and eliminate threats that would
otherwise catch you unawares. More than this, by looking at yourself and your
competitors using the SWOT framework, you can start to craft a strategy that
helps you distinguish yourself from your competitors, so that you can compete
successfully in your market.

 Strength is characteristics of the business or a team that give it an

advantage over others in the industry.
 Weaknesses are characteristics that play the firm at a dis advantage
relating to others.
 Opportunities are external chances to make greater sales or profits in the
environment.
 Threats are external element in the environment that cause trouble for the
business

Marketing strategy is a plan of action designed to promote and sell a product. The
SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. This study intends to explore the
SWOT analysis on MILMA, the major players in milk industry of Kerala.

The result of SWOT analysis which I done in the Eranakulam diary is:

STRENGTH

 Milma products enjoys the reputation of high quality and healthy as

most of his products are made with milk collected from farmers in
 rural areas, that create an assurance of pure and safe milk to
consumers.
 There is coordination and good relationship between the managers and
the departmental heads that’s creating an organisational structure and
to help this things are going smoothly.
 Maintain quality standards like ISO, that ensure the timely quality
testing of milk and other related products.
 There are active customer complaint cells
 Milma has got highly trained and good staff.
 District wise it is the largest agricultural area of Kerala; therefore here
the milk production is also very high quality.
 Maintain an exclusive procurement and distribution network.
 There are a great number of employee benefits schemes. (Grand and
scheme fund from government)
 As far as quality is concerned brand loyalty of consumers to Milma is
high.
 Purchasing power of consumer is increasing with growing economy of
middle class people.
 Increasing demand for milk production since milk consumption is a
regular part of our diet.
 Sales in diversity in different places.
 Large number of commercial and hi –tech farms are coming up
 More financial stability of common people

WEAKNESS

 As the products are perishable it cannot be stored for long.

 Just creating the demands of the market rather creating more demand.
 Increasing the number of competitors.
 Low advertisement and promotional activities for products other than
milk.
 No recreational activities for the workers.
  There is no Research and Development department which is
considered as an important one in any organization.
 Increasing cost of procurement of raw milk and material.
 Inadequate sales promotion campaigns.
 Inadequate sales outlets in rural areas. Unable to meet the demand in
rural areas.
 Absence of technology up gradation programs.
 Management of flesh and lean is not possible during the milk
production is high &low.
 Diseases to cattle.
 High cost of production.
 Supply to interior places is not possible.

OPPERTUNITIES

 Export potentials they have god brad name they can export many of
their product out of the boundaries.
 Changes in culture of the society make a big need for packet milk in
their daily life.
 Scope of product diversification.
 The organization can increase its goodwill and profit if it gives more
emphasis on exports.
 More opportunities to create demand in rural areas.
 Government support, i.e. subsidies tax concession
 Good scope for capturing huge market share in the milk products
category.
 Scope to process more milk from other states, thus increasing
productivity.
 Increasing level of advertisements and related activities can lead to
increase in sales at a higher rate.
 There are lot of wastelands, which can be used properly for fodder
cultivation
  Increased export potential for indigenous milk products.

THREATS

 Strong supply chain management by the competitors.

 Milma gets more attention from the government side but it suffers unusual
interfere from government side.
 The increasing intervention of milk powders of various companies in market is
a major threat for the organization.
 Faces milks shortage within state.
 The pricing mechanism is not flexible, which may lead to change in
preference of customers.
 New competitors may reduce market share.
 Increasing tension between workers and management.

SWOT analysis of this organization shows its strengths as well as the weakness. This
enables the company to improve its prevailing methods of production. The firms can
make significant results by implementing good business strategies, which may retain
and increase the market share of Milma.
FINDINGS SUGGESSIONS AND CONCLUSION

FINDINGS

The study of the above SWOT analysis shows that strengths and opportunities far
outweigh weakness and threats. Strengths and opportunities are fundamental and
weakness and threats are transitory.

 Milma is the most trusted product and the market leader of the diary
industries.
 It is interesting to know that customers buy a particular brand without
giving importance to its verities and normally continue to buy the same
brand of milk us long us the brand is available in the place of their
purchase, so the customers are loyal.
 It could from the analysis that most of the consumers prefer brand image
and companies’ advertisement factors in the milk promotion and the least
preferred factor is the free gift with the gifts.
 Industrial relation with unions is fairly good and there is greater
cooperation between management and employees.
 Sales promotion activities are very low compared to those of competitors.
 It is interesting to observe that “freshness”, “thickness”, and “nutritive
value” is the very important attribute of milk that influences the brand
preference of the consumers.
 Complaints regarding the Milma products are very low.
 Milma uses good quality control machineries for the testing of milk.
 Company providing a good safety measures for ensuring employees safety.
SUGGESSIONS

 Implementation of modern equipment is needed for the sufficient production

and improving efficiency.
 The firm should give more emphasis on advertisement and other promotional
techniques which will in turn leads to increase in sales.
 Implementation of a computerised alert system may help to detect problems
quickly.
 The marketing strategies of the organization may be redesigned so as to
popularize ghee and other milk products.
 Computerized performance appraisal system may be introduced in the
organization.
 Should implement R& D department for producing new products and improve
in certain areas.
 More Milma Shoppes must be started in urban areas with the help of
government Nodal Agencies such as Kudumbasree.
 Work study must be conducted for improving and altering the work
environment.4
CONCLUSION

Globalization and Liberalization are the mantras of the new economy today,
which is now on the fast track. Industrial production is rapidly moving forward.
The dairy industry is no exception. With the World Trade Organization (WTO)
effective from 01 April 2001 and the imports and exports getting liberalized in the
global economy, the dairy industry, which includes dairy products, faces both an
opportunity for growth as well as a threat for its growth. There is no doubt that
there is tremendous scope for the growth of the dairy industry in the new
millennium.

The organisation study in Milma was done with an objective to understand how an
organisation functions, what are the major departments and functioning of these
departments. The study at Milma provided the opportunity to learn the
organisational goal and objectives, various departments based on functions like;
procurement, production, marketing, human resource etc...That conduct critical
functions and the interrelation between them. Milma observed to be an
organisation that not only has an objectives of working properly but also a socially
responsible organisation that cares for different sections of the society viz: the
milk producers and the milk consumer.

The Milma products diary is an organisation that has changed the face of the
economy because it has the directly affect in the income of milk producing
farmers. It is a socially responsible company which is having an Effluent plant. It
also gives prime importance to its customers by delivering high quality products.
Milma is coming up with new technologies. The organisation has resulted for the
production of various milk products and has occupied various markets in Kerala.
BIBLIOGRAPHY

Books:

 Company records
 Files and other reports of the company
 Organisation structures, Theory and design, Analysis and prescription by
Baligh and Helmy H

Websites:

 www.milma.com
 www.amul.com
 www.kcmmf.in
 www.indian dairy.com
 www.ercmpu.in/joomla/
 Wikipedia