TOTAL QUALITY MANAGEMENT

Submitted By:

Shahbaz Ansari

Rajan

9/22/2019
 TABLE OF CONTENT

S.No. Topic Page No.

1 Introduction of Company 2
2 Company Practices 2
3 Mission Statement 2
4 Objective 2
5 Product Range 3
6 Competitors 3
7 History 4
8 Sales Turnover 5
9 The Amul Model 6
10 Total Quality Management 7
11 CSR Initiatives 12
12 Referencing 14

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 ▪ COMPANY NAME
GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD.(GCMMF)

▪ INTRODUCTION OF COMPANY1
Gujrat Cooperative Milk Marketing Federation Ltd. (GCMMF) established in November,1973 is India’s
largest food product marketing organization with annual turnover (2018-2019) US$ 4.8 billion. Its daily
milk procurement is approx. 23 million lit per day from 18700 village milk cooperative societies, 18
member unions covering 33 districts and 3.6 million milk producing members.

Apex organization of the dairy cooperatives of Gujarat, popularly known as ‘Amul’, aims to provide
remunerative returns to the farmers and also serve the interest of its consumers by providing quality
products which are good value for money. It operates through 61 sales offices and has a dealer network
of 10000 dealers and 10 lakh retailers, which is one of the largest such networks in India.

▪ COMPANY PRACTICES
GCMMF are into milk industry market with a wide range of dairy products under the brand
name of Amul & Sagar.

The country’s largest food company, Amul, is the market leader in butter, whole milk, cheese,
ice cream, dairy whitener, condensed milk, saturated fats and chocolates.
Amul follows a unique business model, which aims at providing ‘value for money’ products to
its consumer, while protecting the interest of the milk producing farmers who are its suppliers
as well as its owners.
Despite being a farmer's co-operative, Amul has given multinationals a run for their money.

▪ GCMMF: MISSION STATEMENT

GCMMF, mission is to satisfy the taste and nutritional requirements of the customers of the
world.
Through Co-operative networking, Amul is committed to offer quality products that provide
value for money.

▪ COMPANY OBJECTIVE
➢ Customer Orientation
➢ Commitment to Producers
➢ Co-operation
➢ Employee satisfaction

1Amul.com. (2019). Organisation. [online] Available at: https://amul.com/m/organisation [Accessed 10

Sep. 2019].

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 ➢ Integrity
➢ Quality
➢ Innovation

▪ PRODUCT RANGE2
➢ Breadspreads
➢ Pure Ghee
➢ Milk Powders
➢ Condensed milk
➢ Sweets
➢ Fresh milk
➢ Curd
➢ Ice creams
➢ Chocolates and Confectionary
➢ Milk drinks
➢ Health drinks
➢ Cattle feed
➢ Cream
➢ Paneer
➢ Cheese

▪ MAJOR COMPETITORS
S.No. Product Competitors
1 Butter Nestle
Gowardhan
Mother Dairy
Britannia
2 Cheese Britannia
Mother Dairy
Gowardhan
Nestle
3 Milk Britannia
Nestle
Mother Dairy
2Amuldairy.com. (2019). Products. [online] Available at:
http://www.amuldairy.com/index.php/products [Accessed 10 Sep. 2019].

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 Gowardhan
4 Curd Nestle
Britannia
Gowardhan
Mother Dairy
5 Ice cream Vadilal
Kwality Walls
Mother Dairy
6 Chocolates Cadbury
Nestle
7 Ghee Mother Dairy
Britannia
Gowardhan
Nestle

▪ HISTORY3
In 1946, to stop the unfair and manipulative trade practices followed by the local middlemen, the
farmers initiated the cooperative movement under the influence of Sardar Vallabhbhai Patel. He advised
them to form their own cooperative, which would have procurement, processing, and marketing under
their control.

The first cooperative, the Kaira District Co-operative Milk Producers Union Ltd. Began with just two
village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul
grew under the leadership of Tribhuvandas Patel, the founder chairman Dr Verghese Kurien.

▪ GCMMF – AN OVERVIEW
Year of Establishment 1973
Members 18 District cooperative Milk Producers’ Unions
No. Of Producer Members 3.6 Million
No. Of Village Societies 18,554
Total Milk handling capacity per day 35 Million Litres per day
Milk collection (Daily Average 2018-2019) 23 Million Litres per day
Cattle feed manufacturing capacity 9200 MTs per day
Sales Turnover (2018-2019) Rs. 33150 crores (US $ 4.8 Billion)

3Amuldairy.com. (2019). History. [online] Available at: http://www.amuldairy.com/index.php/about-

us/history [Accessed 10 Sep. 2019].

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 ▪ LIST OF DISTRICT COPERATIVE
1. Kiara District Cooperative Milk Producers’ Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers’ Union Ltd., Mehsana
3. Sabarkantha District Cooperative Milk Producers’ Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers’ Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers’ Union Ltd., Surat
6. Baroda District Cooperative Milk Producers’ Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers’ Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers’ Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers’ Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers’ Union Ltd., Ahmedabad
11. Rajkot District Cooperative Milk Producers’ Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers’ Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers’ Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers’ Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers’ Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers’ Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers’ Union Ltd., Junagadh
18. Porbandar District Cooperative Milk Producers’ Union Ltd., Porbandar

▪ SALES TURNOVER
Sales Turnover Rs (million) US$ (in million)
2010-11 97742 2172
2011-12 116680 2500
2012-13 137350 2540
2013-14 181434 3024
2014-15 207330 3410
2015-16 229720 3500
2016-17 270850 4100
2017-18 292250 4500
2018-19 331500 4800
Fig 1.0: Sales turnover of Amul (Last 9 years)
Accessed From: https://amul.com/m/organisation

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 ▪ THE AMUL MODEL4
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at
the village level federated under a milk union at the district level and a federation of member unions at
the state level.

• Establishment of a direct linkage between milk producers and consumers by eliminating

middlemen.
• Milk producers (farmers) control procurement, processing and marketing.
• Professional management.

Fig 1.1: Process Flow of Amul

Accessed From: Amul.com/m/about-us

4Amul.com. (2019). The Amul Model. [online] Available at: https://amul.com/m/about-us [Accessed 10
Sep. 2019].

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 ▪ TOTAL QUALITY MANAGEMENT AT AMUL5,6
The major initiatives taken by the federation towards its path of change management. In 1994,
GCMMF decided to introduce the concept of TQM with its twin pillars of customer focus &
continuous improvement. This brought employee involvement, waste reduction, and process
improvement as tools for TQM. They made various initiatives like Kaizen, Housekeeping, Small
Group Activities Etc.
▪ PRODUCTION PLANNING
Production planning helps to plan the supply and demand of products.
Annual Production Planning

• Feedback from union members about projections of milk procurement and production
of dairy products.
• Projection of inter union and private milk sales.
• Deciding on the production targets with the help of marketing dossier.
• Deciding on the union production of various products based on fat &SNF availability.
• Finalizing the projections at each stage.
• Submitting the annual production plan to MD, AGM (Marketing)

Monthly Production Planning

• Projection of current monthly milk procurement.

• Projection of inter union and private milk sales.
• Projected sales and stocks for the depots.
• Indepth forecasting for the coming month.
• Estimation of unionwise, productwise production.
• Getting the report verified by the concerned authorities AGM (Marketing).
• Month end processing done by dispatch department.

▪ VILLAGE LEVEL

Procurement

5Gupta, S. (2011). Project Report on Total Quality Management. [online] Issuu. Available at:
https://issuu.com/sanjaykumarguptaa/docs/project-report-on-total-quality-management [Accessed 10
Sep. 2019].

6 Prasad, R. (2016). Advances in Economics and Business Management (AEBM) p-ISSN: 2394-1545; e-
ISSN: 2394-1553; Volume 3, Issue 8; October-December, 2016, pp. 797-799 © Krishi Sanskriti
Publications. Available at: http://www.krishisanskriti.org/Publication.html [Accessed 10 Sep. 2019].

7|Page
As Amul is in the Dairy sector, the only raw material which it has is milk. Since milk is a
perishable commodity and it has a very low shelf life, care has to been taken, control is one of
the dimensions of milk procurement. The information technology is best utilized at Amul. At the
village level they are using AMCUS (Automated Milk Collection Stations) which has helped in
maintaining the quality, making faster payments to the producers and in saving the collection
time. The Milk collection information at different villages are available to all dairies (or Unions)
to enable them make faster decisions in terms of production & distribution planning and
disease control. In collecting and supplying raw milk from milk producers to the dairy plants, 80
per cent of Amul's village cooperative societies have been conforming to the standard of ISO
9001:2000*.
Logistics

To reduce the transportation expenses Amul has introduced BMC (Bulk Milk Cooling System)
this is a refrigerated container having a capacity of 20 liters. The Union can collect the milk from
such societies having this unit only once a day. To encourage the societies to take this cooler
the Union is paying a commission of 0.12 paisa per liter. Outsourcing to contractors have
helped in cost effectiveness. Societies are at a distance, where the van cannot reach within the
stipulated time the union has established chilling centers for them.
Cattle Care
To improve the breed of the cattle, semen banks have been formed. Cattle feed is provided at a
very reasonable rate through its village societies known as Amul Daan. mineral mixture powder
also given to overcome the weakness inherited due to lactation and to improve the
reproductive efficiency. For genetic improvement Artificial Insemination was introduced.
Veterinary Facilities
For the availability of doctors at doorstep Mobile veterinary vans and Mobile Diagnostic
Laboratories were established. Union also organizes FIP (Fertility Improvement Program
Programme. In this they identify the infertile animals and tag them. Then continuously 4 camps
are organized for them in which they are provided with the cattle feed, nutrition and mineral
mixture powder.

▪ District Level
Anand Milk Union Ltd.'s (Amul’s) plants have become the first in the food industry to comply
with the ISO 22000:2005** standards of food safety management. The food safety management
systems in Amul’s dairy plants at Anand, Food Complex at Mogar and Kheda and satellite dairy
at Khatraj have been accredited as conforming to the international standards. The accreditation
is aligned with recognition of quality management systems at the three product units of Amul.
These units have sustained compliance with the standards of ISO 9001:2000, CODEX HACCP
(Hazard Analysis and Critical Control Points), and GMP (Good Manufacturing Practices) since
1999.
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The synergy between the standards assured synchronized control of all elements in the food
chain from raw milk, primary milk producers, milk procurement, reception and chilling of milk
to production processes, utilities including water, air, steam, engineering, manpower,
sanitation, communication, hygiene, packaging, storage, crisis management and overall
environment at Amul plants. The concerted control throughout the food chain ensures
considerably safe, healthy and superior quality dairy and food products.
To further increase the efficiency of the manufacturing process, the federation has established
a plant for manufacturing the packaging pouches. Pouches are the most popular, convenient
and accepted packaging for marketing of liquid milk. The Packaging Film Project (PFP) was
established to give a competitive edge to the Co-operative Dairy, by ensuring access to the best
quality food grade packaging pouch film, for high speed pouch filling machines, that operate at
speeds 75 per cent higher than at present.
▪ State Level (Federation):
Federation is responsible for marketing of the products so employees are an important
efficiency indicator. Various programmes have been initiated for their development:
Programming Committee Meeting (PCM): Programming committee is comprised of MD of all
member unions, MD and AGM of GCMMF. PCM is held within first 10 days of the month. In the
PCM, last two months procurement figures are discussed. Apart from procurement, inter dairy
milk sales, milk procurement prices, Liquid milk sales quantity & prices, cattle feed selling price
are decided.

Self-Management Leadership Programme: This program conducted by Brahmakumaris. The

self-management leadership programme is aimed at achieving the following results.
➢ To become a better leader through improved self-esteem.
➢ To develop a clear focus for the next stage on life.
➢ To take responsibility for your actions and outcomes.
➢ To learn how to improve the quality of communications and relationships as well as
overall quality of life.
ASC/BRM/Friday Meetings: The objective is to create a culture of flatter organization &
encourage shared vision/goal of the department. This helps in bringing transparency,
information sharing and employee participation in decision making.
Hoshin Kanri (January, 1997): One of the most significant activity performed every six months,
The word Hoshin Kanri comes from Japanese and means guiding light. The principle objective of
this to set goals for the brand at the start of the year keeping an end goal in mind called Hoshin.

The action plan highlights the planning steps and in which way it is desired to be achieved, the
measure of performance against which these achievements will be benchmarked, the time by
which it will be completed, the resource required.

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The goals set for the year are reviewed every six months under Hoshin Review.
AQC (October, 1997): AQC used as a tool for Business Consultancy to WDs to improve their
distribution efficiency. It is an excellent review forum for monitoring.

SGA (July, 1995): SGA stands for Small Group activity. In this the work force is divided into
different groups having a group leader, facilitator and 4-5 members. The projects are generally
undertaken for 4-5 month’s time. The major areas which are being looked upon are: Improve
ROI & Sales, Reduction in 2nd Leg Dispatch Time, Inventory Management, Improve Market
Reputation, Cost Control (Fax, Telephone), New Product Development.
Kaizen (May, 1995): Kaizen is basically small improvements carried out by individuals in his/her
day to day work.

The purpose of kaizen movement is to create a culture of continuous improvement in the

organization. Best Kaizen is rewarded.
Kaizens are being done on thrust areas, systems & processes, communication, coordination,
learning, housekeeping, etc.
Housekeeping (October, 1995): The housekeeping aspect is based upon 5’S principle:

Segregation (Seiri) - This action involves going through all the contents of a workspace to
determine which are needed and which can be removed. Everything that is not used to
complete a work process should leave the work area.
Arrangement (Seiton) - Organize all the items left in the workplace in a logical way so they
make tasks easier for workers to complete. This often involves placing items in ergonomic
locations where people will not need to bend or make extra movements to reach them.
Cleanliness (Seiso) - This means cleaning and maintaining the newly organized workspace. It
can involve routine tasks such as mopping, dusting, etc. or performing maintenance on
machinery, tools, and other equipment.
Maintenance of Standards (Seiketsu) - Create a set of standards for both organization and
processes. In essence, this is where we take the first three S's and make rules for how and
when these tasks will be performed. These standards can involve schedules, charts, lists,
etc.
Discipline (Shitsuke) - Sustain new practices and conduct audits to maintain discipline. This
means the previous four S's must be continued over time. This is achieved by developing a
sense of self-discipline in employees who will participate in 5S.
This concept was further extended to the Dealers and Wholesalers. The evaluation was based
upon the cleanliness maintained, Damaged Stock Management, Pest/Rodent Control,

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Ventilation, Temperature (Cold Storage, Deep Freeze Cold room, Product Temperature, Ante-
Room Temperature, Functional Thermometer). These practices have helped inculcating
awareness to keeping their work area clean and to maintain a proper inventory of the products,
further managing the wastage efficiently.

* ISO 9001:20007 specifies requirements for a quality management system where an organization

1. needs to demonstrate its ability to consistently provide the product that meets customer and
applicable regulatory requirements, and
2. aims to enhance customer satisfaction through the effective application of the system, including
processes for continual improvement of the system and the assurance of conformity to
customer and applicable regulatory requirements.

** ISO 22000:20058 specifies requirements to enable an organization

1. to plan, implement, operate, maintain and update a food safety management system aimed at
providing products that, according to their intended use, are safe for the consumer,
2. to demonstrate compliance with applicable statutory and regulatory food safety requirements,
3. to evaluate and assess customer requirements and demonstrate conformity with those mutually
agreed customer requirements that relate to food safety, in order to enhance customer
satisfaction,
4. to effectively communicate food safety issues to their suppliers, customers and relevant
interested parties in the food chain,
5. to ensure that the organization conforms to its stated food safety policy,
6. to demonstrate such conformity to relevant interested parties, and
7. to seek certification or registration of its food safety management system by an external
organization, or make a self-assessment or self-declaration of conformity to ISO 22000:2005.

7ISO. (2000-12). ISO 9001:2000. [online] Available at: https://www.iso.org/standard/21823.html

[Accessed 10 Sep. 2019].

8ISO. (2005-09). ISO 22000:2005. [online] Available at: https://www.iso.org/standard/35466.html

[Accessed 10 Sep. 2019].

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 ▪
CSR INITIATIVES9
Rural Sanitation Campaign
Amul Dairy has launched a novel scheme for total rural sanitation for itself whereby not a single
milk producer will attend to nature’s call in the open. The Dairy with the support of District
Rural Development Agency (DRDA) will provide interest free loans to set up ‘pucca’ toilet
blocks, which will also ensure hygiene.
Amul has prepared a model low-cost toilet block that costs Rs.11,500 per unit through subsidy
ranging between Rs.4500 and Rs.4600 for BPL/APL families, Amul will provide its members an
interest free loan worth Rs.4300 returnable in four years’ time.

Amul Scholarship
To encourage outstanding children of farmers in pursuing higher studies Amul introduced
scholarship schemes in 1992. Every year the outstanding children are identified from the
villages and scholarships are provided to fulfill their dream of achieving academic excellence.
This effort has motivated greatly children to excel in their studies and spread education in rural
areas.
Amul Scholar Felicitation Programme
Annually Amul felicitate outstanding children of employees who have secured highest marks in
10th, 12th standards and Gold Medalist in graduation. Amul Scholars’ Felicitation Programme
was initiated in 2004 and has facilitated many outstanding students of Amul family.
Amul Vidya Shree & Vidya Bhushan
It is India’s first of its kind award that recognizes and rewards brilliant minds of India. By
winning this award, not only the student gets recognized, but it also helps the schools to
enhance their image as an academy that imparts quality education. The inception of these
awards dates back to 2004-05.
Blood Donation
Amul in association with the Indian Red Cross Society aim to inspire, encourage and initiate
humanitarian services to contribute for “Humanity to Peace”.
Towards this objective Amul initiated blood donation campaign since 1987. Blood donation
camps are organized regularly in rural areas through Village Dairy Co-operative Societies.

9Amuldairy.com. (2019). CSR Initiatives. [online] Available at:

http://www.amuldairy.com/index.php/component/content/category/13-csr-initiatives

[Accessed 10 Sep. 2019].

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Similarly camps are organized in Amul Dairy Campus wherein employees and their family
members join in donating blood. In addition, Amul organizes the donation of blood on
emergency.

Dairy Demonstration Farm

As part of Amul’s continuous effort to improve the socio-economic conditions and livelihood of
dairy farmers, Amul has come out with various schemes to increase cattle holding per farmer
thereby their income.

A Dairy Demonstration Farm (DDF) has been set up at Mogar to demonstrate scientific methods
of dairy farming. The project envisages encouraging the farmers to use high yielding animals
and modern aids to increase milk production.
The Union provides technical support to milk producers on Scientific Animal Husbandry
practices and also facilitates loan disbursement from banks to the needy by guaranteeing the
loan repayment on behalf of farmers. The Dairy Demonstration Farm is generating an
overwhelming interest in milk producer members because of its success and viability.
So far, under various schemes, thousands of farmers are covered to increase the cattle holding
size from small to medium size.

Tree Plantation
In last five years, milk producers of GCMMF planted around 312 lakhs tree saplings. By doing so,
milk producers of Gujarat Dairy Cooperatives have shown their concern, awareness and
commitment for the betterment of environment.

In an era of global warming, Amul is contributing its share in making Gujarat lush green. In this
way, the milk producers of Gujarat are ushering in a silent revolution of greening Gujarat.
A SAPLING, OFTEN, RESULTS IN A TREE. A CRORE SAPLINGS, HOWEVER, RESULT IN GLOBAL
RECOGNITION. "Amul Green" movement wins the International Dairy Federation's award for
the best environment initiative in the "sustainability category" during the 4th Global Dairy
Conference held at Salzburg Congress Centre, Austria on 28th April, 2010.

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LIST OF REFERENCES:
▪ Amul.com. (2019). Organisation. [online] Available at: https://amul.com/m/organisation
[Accessed 10 Sep. 2019].
▪ Amul.com. (2019). The Amul Model. [online] Available at: https://amul.com/m/about-us
[Accessed 10 Sep. 2019].
▪ Amuldairy.com. (2019). CSR Initiatives. [online] Available at:
http://www.amuldairy.com/index.php/component/content/category/13-csr-initiatives
[Accessed 10 Sep. 2019].
▪ Amuldairy.com. (2019). History. [online] Available at:
http://www.amuldairy.com/index.php/about-us/history [Accessed 10 Sep. 2019].
▪ Amuldairy.com. (2019). Products. [online] Available at:
http://www.amuldairy.com/index.php/products [Accessed 10 Sep. 2019].
▪ Gupta, S. (2011). Project Report on Total Quality Management. [online] Issuu. Available at:
https://issuu.com/sanjaykumarguptaa/docs/project-report-on-total-quality-management
[Accessed 10 Sep. 2019].
▪ ISO. (2000-12). ISO 9001:2000. [online] Available at: https://www.iso.org/standard/21823.html
[Accessed 10 Sep. 2019].
▪ ISO. (2005-09). ISO 22000:2005. [online] Available at: https://www.iso.org/standard/35466.html
[Accessed 10 Sep. 2019].
▪ Prasad, R. (2016). Advances in Economics and Business Management (AEBM) p-ISSN: 2394-1545;
e-ISSN: 2394-1553; Volume 3, Issue 8; October-December, 2016, pp. 797-799 © Krishi Sanskriti
Publications. Available at: http://www.krishisanskriti.org/Publication.html [Accessed 10 Sep.
2019].

14 | P a g e