AN ORGANIZATIONAL STUDY OF

MILKY MIST LIMITED, ERODE

SUMMER TRAINING REPORT

Submitted by
DHARANI K.S
18MBR004

in partial fulfillment for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION
in
DEPARTMENT OF MANAGEMENT STUDIES

VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY

(Autonomous)
ERODE - 638012

AUGUST – 2019
VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY, (AUTONOMOUS)
ERODE - 638 012

1
 Department of Management Studies

SUMMER TRAINING REPORT

AUGUST 2019

This is to certify that the Summer Training entitled

An Organizational Study of Milky Mist, Erode
is the bonafide record of Summer Training Report done by

DHARANI K.S
18MBR004
of MBA during the year 2019 - 2020.

----------------------------- --------------------------------
Summer Training Guide Head of the Department

Mr.M.MADHUKRISHNAN, Dr.T.VETRIVEL,
Assistant Professor Professor & Head
Department of MBA Department of MBA

Submitted for the Summer Training Viva-Voce examination held on ____________.

----------------------------- -----------------------------
Internal Examiner External Examiner

2
 DECLARATION

I affirm that the Summer Training work titled “AN ORGANIZATIONAL STUDY OF
MILKY MIST, ERODE” being submitted in partial fulfillment for the award of Master of
Business Administration is the original work carried out by me. It has not formed the part of any
other Summer Training work submitted for award of any Degree or Diploma, either in this or any
other University.

DHARANI K.S
18MBR004

I certify that the declaration made above by the candidate is true.

Mr.M.MADHUKRISHNAN, B.Sc., MBA, M.Phil.,

Assistant Professor, Department of MBA

3
 ACKNOWLEDGEMENT

I feel a great pleasure to thank our Vellalar Education Trust, Secretary and Correspondent
Thiru.S.D.CHANDRASEKAR, B.A., for offering me an opportunity to do this Summer Training.
I would like to express my deep sense of gratitude to our esteemed Principal
Dr.M.JAYARAMAN, M.E, Ph.D, MISTE., Prof.L.PETER STANLEY BEBINGTON Dean
(Academics) and Prof. P.JAYACHANDAR Dean (Student Affairs) of Velalar College of Engineering
and Technology, Erode for providing me with the great opportunity to undergo this Summer Training
work.

At the outset I am grateful to Dr.T.VETRIVEL, B.Sc., MBA, M.Phil., MISTE., PGDCA., Ph.
D, Professor & Head, Department of Management Studies for his Constant encouragement and support to
complete the Summer Training Report.

At the outset I am grateful to my Guide Mr.M.MADHUKRISHNAN, B.Sc., M.B.A., M.Phil.,

Assistant Professor, Department of Management Studies for his proper guidance and support rendered for
successfully completing the Summer Training work.

I would like to extend my sincere thanks to all the Faculty Members of Department of
Management Studies, Velalar College of Engineering and Technology, Erode for their constant
encouragement and support for this Summer Training Report.

Also, I would like to convey my special thanks to Mr. Karthick Human Resource Manager,
Milky Mist for giving me the opportunity to learn and explore my skills throughout the Summer training.

I thank the Almighty God and my beloved Parents for the blessings and my Friends that have
been showered upon me to complete the Summer Training successfully.

DHARANI K.S

4
 TABLE OF CONTENTS

Chapter No. Particulars Page No.

1 Introduction
2 Industry Profile
3 Company Profile and Organization Chart
4 Purchase Department
5 Production Department
6 Human Resource Department
7 Logistics Department
8 Quality Assurance Department
9 Marketing Department
10 Materials Department
11 Finance Department
12 Systems Department
13 Research and Development Department
14 Sales Department
15 SWOT Analysis
16 Findings & Suggestions
17 Conclusion
18 Bibliography

5
 CHAPTER: 1

INTRODUCTI

ON

An Organization is a social entity that has a collective goal and is linked to an

external environment. Organization comes into existence when there are number of persons in
communication and relationship to each other to contribute towards a common endeavor.

Organization study is the systematic study and careful application of knowledge

about how people –as individuals and as a group- act within organizations. An organization
study encompasses the study of organization from multiple viewpoints, methods and levels of
analysis. Organization studies comprise different areas that deal with the different aspects of the
Organization.

At the beginning of the internship I formulated several learning goals, which I wanted to
understand the functioning and working conditions of an organization.

Milky Mist Dairy Food Private Limited, is based at Chithode near Erode, Tamil
Nadu. They are manufacturing and marketing Premium Quality Dairy products under the brand
“Milky Mist”, a brand synonymous for the Unique & Premium Quality Products and well
accepted among Consumers throughout South India.

OBJECTIVES OF THE STUDY:

 To gain practical knowledge about the company.

 To know about the production, finance, marketing and human resources
management in the Milky Mist.
 To identify the company strength, weakness
 To get a field work experience/collect data in an environment unknown for me;
to enhance my communication skills; to build a network.

6
SCOPE OF THE STUDY:

The study is mainly based on the details collected from each department. It provides a
better understanding of functional level of each department. Each activities of the company are
studied very carefully with the data available. It also helps to bridge the gap between the theory
and actual practice of management.

LIMITATION OF THE STUDY:

 There were many difficulties in obtaining data from executives and manager
 Most of the data required is kept in head office.
 Busy work schedule of the employees.
 The unwillingness to disclose all the information from certain departments.
 Management kept certain matters regarding the latest facts and strictly
confidential.
 It was difficult for the employees to spare their time for detailed descriptions.

7
 CHAPTER :2

INDUSTRY

PROFILE

India is the world’s second largest producer of food next to china. The total food
production in India is likely is to be double in the next 10 years and there are large investment
opportunities in food and food processing technologies.

CURRENT SCENARIO:

India with the total milk production of 109 million tones is the world's highest
milk-producing country for the past one decade now and accounted for about 15% of the world
milk production in 2009. The importance of dairy enterprise in the national economy can be
gauged from the fact that the value of output from milk group is highest among all the
agricultural commodities, accounting for nearly one fourth of the value of output from
agricultural sector. Dairying is one of the most important means of providing livelihood and
nutritional security to the rural masses. The livestock activities, among which dairy farming
predominates, employ about 8.5 million workers in the country. Milk and milk products
account for 9.2 and 12.4 percent of protein intake in rural and urban areas, respectively, which
is higher than the protein intake through non-vegetarian animal products.

WORLD SCENARIO:

The exports of dairy products increased from Rs.13.98 million in 1990-91 to

Rs.6766.82 million in 2005-06, while imports increased from Rs.40.52 million to 345.66
million during the same period. Hence, as the net trade balance of dairy products has changed
from negative to positive and the country is now a net exporter of dairy products.

Milk Production

The increased production of milk has improved the per capita milk availability to
250 grams per day. The demand of milk and milk products in India is projected to increase to
142.9 million tons in 2015 and further to 191.3 million tons in 2020. At the existing rate of
growth in milk production, in next ten years, supply will fall short of the demand. Together with
8
 the increase in domestic demand of milk, at the international level, particularly in developing
countries, the three drivers of demand - population growth, urbanization and income growth- are
very strongly in operation.

Livestock

During the year 2015-16 the country had 19.34 million crossbred (CB) cows,
28.37 million indigenous (Ind.) cows and 33.17 million buffaloes (Buff.) in milk. The milk
production of the corresponding categories was 19.34 million tones (CB), 20.41 million tones
(Ind.) and 52.07 million tones (Buff.). The average milk production of the respective categories
was 6.44 kg/d (CB), 1.97 kg/d (Ind.) and 4.3 kg/d (Buff.) thereby indicating that the focus should
continue towards better milk yielders viz. crossbred cows and buffaloes and the strategy for
increasing milk production should focus on increasing animal productivity rather than animal
population.

OPERATIONAL FLOOD

Operation flood is one of the important moves in the history of diary development
in India. It was conceived and formulated by National Diary Development Board during the
fourth plan. It was conducted to meet the India’s rapidly increasing need of milk and milk’s
product and making diary industry capable of viable and self-sustaining growth.

Milk producing animals have been domesticated for thousands of years. India is
the top most country in the Milk production. Protecting and feeding the animals were a big part
of the symbiotic relationship between the animals and herders. People in agricultural societies
owned dairy animals that they milked for domestic and local consumption.

The dairy sector plays an important role in the country’s socio-economic

development and constitutes an important segment of the rural economic.

Dairy industry provides livelihood to millions of homes in village, assuring

supply of quality of milk and milk products to both urban and rural areas. With view to keeping
pace with the country’s increasing demand of milk and milk products, the industry has been
growing rapidly.

9
 India is also one of largest consumers of milk and milk products. Due to rich
nutritional qualities, the consumption of dairy product has been growing exponentially in the
country, and considering such facts and figures, my study anticipates that the milk production in
India.

Industrial processing

Dairy plants process the raw milk they receive from farmers to extend its
marketable life. Two main types of processes are employed: heat treatment to ensure the safety
of milk for human consumption and to lengthen its shelf-life, and dehydrating dairy products
such as butter, hard cheese and milk powders so that they can be stored.

Cream and butter

Today, milk is separated by huge machines in bulk into cream and skim milk. The
cream is processed to produce various consumer products, depending on its thickness, its
suitability for culinary uses and consumer demand, which differs from place to place and country
to country.

Some cream is dried and powdered, some is condensed (by evaporation) mixed
with varying amounts of sugar and canned. Most cream from New Zealand and Australian
factories is made into butter. This is done by churning the cream until the fat globules coagulate
and form a monolithic mass. This butter mass is washed and, sometimes, salted to improve
keeping qualities. The residual buttermilk goes on to further processing. The butter is packaged
(25 to 50 kg boxes) and chilled for storage and sale. At a later stage these packages are broken
down into home-consumption sized packs.

Skimmed milk

The product left after the cream is removed is called skim, or skimmed, milk. To
make a consumable liquid a portion of cream is returned to the skim milk to make low fat milk

10
 (semi-skimmed) for human consumption. By varying the amount of cream returned, producers
can make a variety of low-fat milks to suit their local market. Other products, such as calcium,
vitamin D, and flavoring, are also added to appeal to consumers.

Casein

Casein is the predominant phosphoprotein found in fresh milk. It has a very wide
range of uses from being a filler for human foods, such as in ice cream, to the manufacture of
products such as fabric, adhesives, and plastics.

Cheese

Cheese is another product made from milk. Whole milk is reacted to form curds
that can be compressed, processed and stored to form cheese. In countries where milk is legally
allowed to be processed without pasteurization, a wide range of cheeses can be made using the
bacteria naturally in the milk. In most other countries, the range of cheeses is smaller, and the use
of artificial cheese curing is greater. Whey is also the byproduct of this process. Some people
with lactose intolerance are surprisingly able to eat certain types of cheese. This is because some
traditionally made hard cheeses, and soft ripened cheeses may create less reaction than the
equivalent amount of milk because of the processes involved. Fermentation and higher fat
content contribute to lesser amounts of lactose. Traditionally made Cheddar might contain 10%
of the lactose found in whole milk. In addition, the aging methods of traditional cheeses
(sometimes over two years) reduce their lactose content to practically nothing. Commercial
cheeses, however, are often manufactured by processes that do not have the same lactose-
reducing properties. Ageing of some cheeses is governed by regulations; in other cases, there is
no quantitative indication of degree of ageing and concomitant lactose reduction, and lactose
content is not usually indicated on labels.

Whey

In earlier times, whey or milk serum was considered to be a waste product and it
was, mostly, fed to pigs as a convenient means of disposal. Beginning about 1950, and mostly

11
 since about 1980, lactose and many other products, mainly food additives, are made from both
casein and cheese whey.

Yogurt
Yogurt (or yoghurt) making is a process like cheese making, only the process is
arrested before the curd becomes very hard.

Milk powders

Milk is also processed by various drying processes into powders. Whole milk,
skim milk, buttermilk, and whey products are dried into a powder form and used for human and
animal consumption. The main difference between production of powders for human or for
animal consumption is in the protection of the process and the product from contamination.
Some people drink milk reconstituted from powdered milk, because milk is about 88% water and
it is much cheaper to transport the dried product.

Other milk products

Kumis is produced commercially in Central Asia. Although it is traditionally

made from mare's milk, modern industrial variants may use cow's milk instead.

Milking

Preserved Express Dairies three-axle Milk Tank Wagon at the Dicot Railway
Centre, based on an SR chassis

12
  Milk churns on a railway platform

Originally, milking and processing took place on the dairy farm itself. Later,
cream was separated from the milk by machine on the farm and transported to a factory to be
made into butter. The skim milk was fed to pigs. This allowed for the high cost of transport
(taking the smallest volume high-value product), primitive trucks and the poor quality of roads.
Only farms close to factories could afford to take whole milk, which was essential for cheese
making in industrial quantities, to them.

Originally milk was distributed in 'pails, a lidded bucket with a handle. These
proved impractical for transport by road or rail, and so the milk churn was introduced, based on
the tall conical shape of the butter churn. Later large railway containers, such as the British
Railway Milk Tank Wagon were introduced, enabling the transport of larger quantities of milk,
and over longer distances.

The development of refrigeration and better road transport, in the late 1950s, has
meant that most farmers milk their cows and only temporarily store the milk in large refrigerated
bulk tanks, from where it is later transported by truck to central processing facilities.

In many European countries, particularly the United Kingdom, milk is then

delivered direct to customers' homes by a milk float.

Milking machines
Main article: Automatic milking

Milking machines
Main article: Automatic milking

Milking machines
Main article: Automatic milking

13
Milking machines
Main article: Automatic milking

The milking machine extracts milk from all teats.

Milking machines are used to harvest milk from cows when manual milking
becomes inefficient or labor-intensive. One early model was patented in 1907. The milking unit
is the portion of a milking machine for removing milk from an udder. It is made up of a claw,
four teat cups, (Shells and rubber liners) long milk tube, long pulsation tube, and a pulsator. The
claw is an assembly that connects the short pulse tubes and short milk tubes from the teats cups
to the long pulse tube and long milk tube. (Cluster assembly) Claws are commonly made of
stainless steel or plastic or both. teats cups are composed of a rigid outer shell (stainless steel or
plastic) that holds a soft inner liner or inflation. Transparent sections in the shell may allow
viewing of liner collapse and milk flow. The annular space between the shell and liner is called
the pulse chamber.

Milking machines work in a way that is different from hand milking or calf
suckling. Continuous vacuum is applied inside the soft liner to massage milk from the teat by
creating a pressure difference across the teat canal (or opening at the end of the teat). Vacuum
also helps keep the machine attached to the cow. The vacuum applied to the teat causes
congestion of teat tissues (accumulation of blood and other fluids). Atmospheric air is admitted
into the pulsation chamber about once per second (the pulsation rate) to allow the liner to
collapse around the end of teat and relieve congestion in the teat tissue. The ratio of the time that
the liner is open (milking phase) and closed (rest phase) is called the pulsation ratio.

14
 The four streams of milk from the teacup’s are usually combined in the claw and
transported to the milk line, or the collection bucket (usually sized to the output of one cow) in a
single milk hose. Milk is then transported (manually in buckets) or with a combination of airflow
and mechanical pump to a central storage vat or bulk tank. Milk is refrigerated on the farm in
most countries either by passing through a heat-exchanger or in the bulk tank, or both.

The photo to the right shows a bucket milking system with the stainless-steel
bucket visible on the far side of the cow. The two rigid stainless-steel teat cup shells applied to
the front two quarters of the udder are visible. The top of the flexible liner is visible at the top of
the shells as are the short milk tubes and short pulsation tubes extending from the bottom of the
shells to the claw. The bottom of the claw is transparent to allow observation of milk flow. When
milking is completed the vacuum to the milking unit is shut off and the teacups are removed.

Milking machines keep the milk enclosed and safe from external contamination.
The interior 'milk contact' surfaces of the machine are kept clean by a manual or automated
washing procedures implemented after milking is completed. Milk contact surfaces must comply
with regulations requiring food-grade materials (typically stainless steel and special plastics and
rubber compounds) and are easily cleaned.

Most milking machines are powered by electricity but, in case of electrical failure,
there can be an alternative means of motive power, often an internal combustion engine, for the
vacuum and milk pumps.

Milking shed layouts

Milking parlor at Pardes Hanna Agricultural High School, Israel

15
 Bail-style sheds

This type of milking facility was the first development, after open-paddock
milking, for many farmers. The building was a long, narrow, lean-to shed that was open along
one long side. The cows were held in a yard at the open side and when they were about to be
milked, they were positioned in one of the bails (stalls). Usually the cows were restrained in the
bail with a breech chain and a rope to restrain the outer back leg. The cow could not move about
excessively and the milker could expect not to be kicked or trampled while sitting on a (three-
legged) stool and milking into a bucket. When each cow was finished, she backed out into the
yard again. The UK bail, initially developed by Wiltshire dairy farmer Arthur Hosier, was a six
standing mobile shed with steps that the cow mounted, so the herdsman didn't have to bend so
low. The milking equipment was much as today, a vacuum from a pump, pulsators, and a claw-
piece with pipes leading to the four shells and liners that stimulate and suck the milk from the
teat. The milk went into churns, via a cooler.

As herd sizes increased a door was set into the front of each bail so that when the
milking was done for any cow the milker could, after undoing the leg-rope and with a remote
link, open the door and allow her to exit to the pasture. The door was closed, the next cow
walked into the bail and was secured. When milking machines were introduced bails were set in
pairs so that a cow was being milked in one paired bail while the other could be prepared for
milking. When one was finished the machine’s, cups are swapped to the other cow. This is the
same as for Swing over Milking Parlors as described below except that the cups are loaded on
the udder from the side. As herd numbers increased it was easier to double-up the cup-sets and
milk both cows simultaneously than to increase the number of bails. About 50 cows an hour can
be milked in a shed with 8 bails by one person. Using the same teat cups for successive cows has
the danger of transmitting infection, mastitis, from one cow to another. Some farmers have
devised their own ways to disinfect the clusters between cows.

Herringbone milking parlors

In herringbone milking sheds, or parlors, cows enter, in single file, and line up
almost perpendicular to the central aisle of the milking parlor on both sides of a central pit in
16
 which the milker works (you can visualize a fishbone with the ribs representing the cows and the
spine being the milker's working area; the cows face outward). After washing the udder and teats

the cups of the milking machine are applied to the cows, from the rear of their hind legs, on both
sides of the working area. Large herringbone sheds can milk up to 600 cows efficiently with two
people.

Swing over milking parlors

Swing over parlors are the same as herringbone parlors except they have only one
set of milking cups to be shared between the two rows of cows, as one side is being milked the
cows on the other side are moved out and replaced with unmilked ones. The advantage of this
system is that it is less costly to equip, however it operates at slightly better than half-speed and
one would not normally try to milk more than about 100 cows with one person.

80- stand rotary dairy that is fully computerized and records milk production

Rotary milking sheds

Rotary milking sheds (also known as Rotary milking parlor) consist of a turntable
with about 12 to 100 individual stalls for cows around the outer edge. A "good" rotary will be
operated with 24–32 (~48–50+) stalls by one (two) milkers. The turntable is turned by an
electric-motor drive at a rate that one turn is the time for a cow to be milked completely. As an
empty stall passes the entrance a cow steps on, facing the center, and rotates with the turntable.
The next cow moves into the next vacant stall and so on. The operator, or milker, cleans the teats,
attaches the cups and does any other feeding or whatever husbanding operations that are
17
 necessary. Cows are milked as the platform rotates. The milker, or an automatic device, removes
the milking machine cups and the cow backs out and leaves at an exit just before the entrance.
The rotary system is capable of milking very large herds—over a thousand cows.

Automatic milking sheds

Automatic milking or 'robotic milking' sheds can be seen in Australia, New

Zealand, the U.S., Canada, and many European countries. Current automatic milking sheds use
the voluntary milking (VM) method. These allow the cows to voluntarily present themselves for
milking at any time of the day or night, although repeat visits may be limited by the farmer
through computer software. A robot arm is used to clean teats and apply milking equipment,
while automated gates direct cow traffic, eliminating the need for the farmer to be present during
the process. The entire process is computer controlled.

Supplementary accessories in sheds

Farmers soon realized that a milking shed was a good place to feed cows
supplementary foods that overcame local dietary deficiencies or added to the cows' wellbeing
and production. Each bail might have a box into which such feed is delivered as the cow arrives
so that she is eating while being milked. A computer can read the ear tag of each animal to ration
the correct individual supplement. A close alternative is to use 'out-of-parlour-feeders', stalls that
respond to a transponder around the cow's neck that is programmed to provide each cow with a
supplementary feed, the quantity dependent on her production, stage in lactation, and the benefits
of the main ratio. The holding yard at the entrance of the shed is important as a means of keeping
cows moving into the shed. Most yards have a powered gate that ensures that the cows are kept
close to the shed.

Water is a vital commodity on a dairy farm: cows drink about 20 gallons (80
liters) a day, sheds need water to cool and clean them. Pumps and reservoirs are common at
milking facilities. Water can be warmed by heat transfer with milk.

18
Temporary milk storage

Milk coming from the cow is transported to a nearby storage vessel by the airflow
leaking around the cups on the cow or by a special "air inlet" (5-10 l/min free air) in the claw.
From there it is pumped by a mechanical pump and cooled by a heat exchanger. The milk is then
stored in a large vat, or bulk tank, which is usually refrigerated until collection for processing
pigs. This allowed for the high cost of transport (taking the smallest volume high-value product),
primitive trucks and the poor quality of roads. Only farms close to factories could afford to take
whole milk, which was essential for cheese making in industrial quantities, to them.

Originally milk was distributed in 'pails', a lidded bucket with a handle. These
proved impractical for transport by road or rail, and so the milk churn was introduced, based on
the tall conical shape of the butter churn. Later large railway containers, such as the British
Railway Milk Tank Wagon were introduced, enabling the transport of larger quantities of milk,
and over longer distances.

The development of refrigeration and better road transport, in the late 1950s, has
meant that most farmers milk their cows and only temporarily store the milk in large refrigerated
bulk tanks, from where it is later transported by truck to central processing facilities.

In many European countries, particularly the United Kingdom, milk is then

delivered direct to customers' homes by a milk float.

19
 CHAPTER-3

COMPANY

PROFILE

HISTORY OF MILKY MIST

The result: At 40, Sathish is the managing director of Milky Mist, a dairy company,
whose value-added milk products are increasingly seen in the shelves of stores in major cities
and towns of South India, vying with brands like Amul and Hatsun.

From 13 crore, the turnover steadily rose, to Rs.25 crore in 2008-09, Rs.35 crore in
2009-10, Rs.39 crore in 2010-11, Rs.48 crore in 2011-12, Rs.69 crore in 2012-13, and Rs.121
crore in 2013-14. This year they will be touching 220 crores.40 percent of their turnover comes
from sale of paneer, followed by curd, which brings in 30 percent. Most of the production is
semi-automated and put through a stringent quality control.

CUSTOMERS
Some of the prestigious clients include Reliance Fresh, More Retail, Metro Cash &
Carry, Big Bazaar, MTR, ITC Group of Hotels, Walmart, Easyday, Star Bazaar, Tesco, Grand
Chola, Auchan [Max] Hyper, Max, Hyper city, Taj group of Hotels, Le Meridien, Residency,
Lalit Ashoka, Leela Palace, TAJ Flight Kitchen (Madras) Ltd., Chennai, Sky Gourmets P Ltd.,
Chennai, CRPF Canteen, Chennai, Military Ocers Training, Chennai, Kannan Departmental
Stores, Jai Surya etc. Products are now being exported to Singapore.

FUNCTIONS

 Milk procurement
 Production and process
 Dispatch and logistics

PIONEERING IN PACKAGING
They have redefined the term packaging by introducing
―Thermoformed Vacuum Pack‖ for Paneer in India with the world best machine from
20
MULTIVAC Germany. Today 20 of their products packed in the same method using 4 such
machines. Their packaging and design attract industry accolades and the standards are followed
by many. Their packing designs are done in-house with daring bright colors which emphasis the
freshness and premium quality of our product. With this make sure that the superior product
quality and world class packaging are matched and provided to our customers.

Quality is the prime objective of their organization. They use highly advanced
machinery to processes their products, which also ensure about their durability for long duration.
Their offered products ranges are of optimum quality and finely finished. They have received
various appreciations for the unmatched quality of the products and services and timely delivery
of the consignments. They stringently quality check the products in various quality parameters,
which ensures their durability and reliability.
―Most shops had only Pepsi or Coke chillers. We can’t keep our products in their
chillers. So, we decided to supply our own chillers, said by Mr. T. S. Sathish Kumar (CEO of
Milky Mist). However, they understood that using their chillers exclusively to market paneer was
a waste of valuable resource. Since 2011, as they introduced the chillers in shops – there are
currently 2200 Milky Mist (300 liter and 600-liter capacity) chillers in stores across South India -
they began to make more products.

PRODUCT CATEGORIES INCLUDE

 PANEER
 FRESH CREAM
 CURD
 PAYASAM
 YOUGURT
 KHOVA
 SHIRKANDH
 CHEESE
 MOZZARELLA CHEESE
 BUTTER
 LASSI
 GHEE
 CHEDDAR CHEESE

21
ORGANIZATION CHART:

CEO

CFO

GM GM
HEAD HR HEAD
PROCURTM PRODU CT
FINANCE MANAGER SALES
ENT ION

ASST OFFICER ASST

MANAGER MANAGER MANAGER HR MANAGER

ASST ACCOUNTAN ASST

OFFICER MANAGER SUPERVISIO T OFFICER
R
ASST
SUPERVISIO ACCOUNT AN SALES
R SUPERVISIOR EXECUTIVES
T

ASST
SUPERVISIOR SALES
REPRENSENTATIVE

EMPLOYE
ES

22
 CHAPTER 4
FINANCE DEPARTMENT

The finance manager records every monetary transaction that takes place in the
company during the all processes from raw materials collection, purchasing, production,
marketing and sales expenses, etc., and computerized using the software.

The Administrative department is responsible for these processes to be

maintained and updated twice or thrice in a year. The activities expected from a finance
department cover a wide range from basic bookkeeping to providing information to assisting
managers in making strategic decisions.

The finance department is also responsible for management of the organization’s

cash flow and ensuring there are enough funds available to meet the day to day payments. This
area also encompasses the credit and collections policies for the company’s customers, to ensure
the organization is paid on time, and that there is a payment policy for the company’s suppliers.
In most organizations there will be some form of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs.

Financing may be obtained through bank or private lender debt or, in applicable firms, share
issues to private investors. If the organization is ready to target angel investors or venture
capitalists, the finance department will be key in preparing the documents required for these
presentations and may work with outside consultants on a company valuation.

23
Functions of finance department

 Budget preparation

 Cost allocation

 Account payment

 Payroll

 Fringe benefits

 Grant administration

 Billing

 General accounting record

 Fixed assets record

 Custody of funds

 Cash flow

 Investment

 Debt administration

 Risk management

No other taxes are obtained. Finally, the finance department should be called upon to
provide information to assist managers in making key strategic decisions, such as which markets
or projects to pursue or the payback periods for large capital purchases. The finance department
can often contribute an objective perspective based on special financial assessment techniques.
24
 CHAPTER 5

HUMAN RESOURCE DEPARTMENT

The department or support systems responsible for personnel sourcing and hiring, applicant
tracking, skills development and tracking, benefits administration and compliance with
associated government regulations.

A human resource department is a critical component of employee Well-being in any

business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and
keeping up to date with state and federal tax laws.

An efficiently run human resources department can provide our organization with structure and
the ability to meet business needs through managing our company's most valuable resources
which was its employees.

Total no. of employees: around 300 employees.

There are three shifts follow: 6 am-2 pm, 2 am-10 pm, 10 pm-6 am.
The HR department focusing towards the following functions:

 Recruitment
 Safety
 Employee Relations
 Compensation and Benefits
 Compliance
 Training and Development
 Determining Wages and salary

The HR department involved in designing the Job analysis and Job description for the
prospective vacancies.

Job analysis - A job analysis is the process used to collect information about the duties,
responsibilities, necessary skills, outcomes, and work environment of a job.
25
 Job descriptions - Job descriptions are written statements that describe the:
 Duties,
 Responsibilities,
 Most important contributions and outcomes needed from a position,
 Required qualifications of candidates, and
 Reporting relationship and co-workers of a job.

The HR managers are responsible for the Employee details, maintenance and other personal
skills of each employee in the company.

They are maintaining the employee personal details such as name, address, contact details,
age, gender, etc., their Qualifications, Respective Designations in the company, Work
Experience, Salary and Wages determination and other important details are recorded.

The Roles of HR manager

 Preparing salary report for the employees

 Attendance maintenance

 Another file maintenance

 Internal auditing

 PF, ESI report preparation

26
HR Functions

 Manpower Planning

 Recruitment and Selection

 Performance Appraisal

 Training and Development

 Addressing employees’ grievances

 Labor management relations

 Implementing organizational policies

Social compliance policy:

 No child labor policy

 No forced labor policy

 Health and safety working policy

 Working hours and remuneration policy.

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 CHAPTER 6
MARKETING
DEPARTMENT

Marketing is done in a medium scale market where they tend to supply the south
side of India. Marketing is a function of business and many persons of the organization
participate in marketing activities.

Engineering is responsible for details of design and manufacturing that provide the
products with quality and profit potential. Marketing is also concerned with profits for the
company. The viewpoints of marketing and engineering are to be coordinated with good
engineering economy analysis combined with demand analysis of marketers.

Balance and harmony in the company demand that manufacturing and marketing jointly
determine what is in the company's best interests whenever a dispute arises between the
departments. Solutions include joint seminars of issues of common interest and joint analytical
problem solving. Company profitability is greatly affected by marketing-manufacturing
coordination which is another name for customer service - profit analysis. Marketing can't take
credit for revenue and blame manufacturing for costs. Marketing itself may be responsible for the
costs and it may be useful for the lower price’s customers. This is the good marketing decision
making.

Distribution channels in marketing are one of the classic ―4 Ps‖ (product, promotion, price, and
place). They’re a key element in your entire marketing strategy. B2B and B2C companies can
sell through a single distribution channel or through multiple channels that may include:

 Wholesaler/Distributor

 Direct/Internet

 Direct/Catalog
28
  Direct/Sales Team

 Value-Added Reseller (VAR)

 Consultant

 Dealer

 Retail

 Sales Agent/Manufacturer’s Rep

Evaluation of How our End-Users Need to Buy

 How and where they prefer to buy

 Whether they need personalized education and training

 Whether they need additional products or services to be used along with yours

 Whether your product needs to be customized or installed

 Whether your product needs to be serviced

The marketing department is following the functions such as,

 Focus on the Customer
 Monitor the Competition
 Own the Brand
 Find & Direct Outside Vendors
 Create New Ideas
 Communicate Internally
 Manage a Budget
 Understand the ROI
29
 Set the Strategy, Plan the Attack, and Execute

30
 The company has a wide distribution network and service centers throughout South India.
There are basically 3 types of marketing channels.
 Direct selling

 Selling through Intermediaries

 Dual distribution

Direct Selling

Direct selling is the marketing and selling of products directly to consumers away from
a fixed retail location.

Marketing through Intermediaries

An intermediary is a third party that offers intermediation services between two trading
parties.

Dual Distribution

Dual distribution describes a wide variety of marketing arrangements by which the

manufacturer or wholesalers use more than one channel simultaneously to reach end-user. The
company is now focusing in the process of marketing and selling their products through online
selling in which they want to maintain good relations with customer as most of them buy
products through the online shopping

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 CHAPTER-7

QUALITY

DEPARTMENT

Milky mist works with an aim of giving high quality products to its customers.
The quality control department is headed by quality control officer and is followed by
bacteriologist, lab technicians, lab assistant. Milky mist products are tested at every stage of
production. This department is maintained mainly for checking the quality of products right from
the reception stage to the final stage of production and thus providing the customers with best
products. The milk should not be acidic in any case. The PH of milk should always be in the
range of 6.5 -6.7.

The quality is monitored at all stages in terms of flavor, temperature, acidity etc.
All the physical and chemical properties are also considered. Various quick test is conducted like
bacteriological test, phosphates test is conducted, ethylene test, blue reduction test, moisture test.
Usually test is conducted to find out whether the milk in neutral, or whether hydrogen peroxide
has been added by the farmers.

The test adopted for various products as follows:

 MILK – Acidity test, Fat test, Bacteriological test.

 LAASI- Total solids test, Acidity test, Bacteriological test.
 PANNER- Moisture test (the level should be below 70 degree Celsius), Bacteriological
test.
 CURD- Bacteriological test, Total solid test.

MILKY MIST is very much quality conscious and hence customers have a lot of
faith in its product.

32
Benefits of Quality Systems
 Customer satisfaction, and therefore, customer loyalty and repeat business and referral.

 Timely registration of materials by eliminating waste and the need for rework.

 Operational results such as revenue, profitability, market share and export opportunities.
 Alignment of processes with achievement of better results.
 Understanding and motivation of employees toward the Company quality policy.
 Confidence of interested parties in the effectiveness and efficiency of the Company.

The quality assurance department ensures the following features,

 Durability
 Seamless Finish
 Perfect Design
 High strength
 Taste.

33
 CHAPTER-8
PRODUCTION
DEPARTMENT

Production is a process of transforming inputs (raw materials) into output (finished

goods). The main activity of production department is the processing of milk and other by
products. The various other products manufactured are panner, ghee, pasayam, curd, ghova,
butter, yougurt.

PROCESS OF MILK
 RECEPTION
 CHILLNG
 PROCESSING
 PACKING
 STORING

FUNCTIONS OF PRODUCTION DEPARTMENT

PRODCTION
DEPT

RECEPTION CHILLING PROCESSING PACKING STORING

34
 RECEPTION

At first, raw milk collected from farmers with the help of tankers and then tankers it is
bought to the diary for processing. At first sample is taken to the laboratory and then it is tested
for acidity, fat, SNF (solid not fat). Then the milk is pumped into a large tank called SILO which
has a capacity of holding 50000 liters. There is a daily procurement of about 34000 liters in the
diary plant.

There are basically two process involved in production pant:

 Pasteurization
 Standardization.

In pasteurization process, there are again three different stages,

 Heating section
 Holding section
 Chilling section

GHEE ROOM:

CURD SECTION
35
36
 PANEER ROOM

Raw milk

Standardization (Fat: SNF 1 :1.65 using skim

milk) Heating (82c ,5min)

Cooling(70c)

Addition of coagulant (1% citric acid solution at 70 c)

Continuous stirring till clear whey separate out

Settling for 10 min

Drainage of whey

Classification of the collected whey in centrifugal separator

Filtered through double layered muslin cloth

ROLE OF MANAGERS

 Ensure the adequate quality is produced according to the demand market.

 Necessary safety measures are adopted before the plant is operational.
 Adopt measures for the release of new milk products.

SIGNIFICANT FACTORS FOR SUCCESS

 Regularly meets the demand of market.

 Maintaining staff hours and work shifts.

37
Technical Profile
 Texture - Uniformly fine smooth surface.
 Odor - Milky & Creamy Moisture % by mass
 NMT 17 % (Unsalted)
 Fat % on Dry matter
 NLT 82 % (Unsalted)

Technical Profile
 Texture: Uniformly fine smooth surface with natural bonding.
 Odor: Milky
 Moisture % by mass - NMT 60%
 Fat % on Dry matter - NLT 50%

38
Technical Profile
 Texture - Uniformly fine granular.
 Odor - Pleasant Moisture % NMT 0.3%
 Fat % NLT 99.7%
 FFA % - NMT 1.0%

Technical Profile
 Texture - Uniformly smooth & semisolid
 Odor - Milky and Acidic
 Fat %
 NLT 3.0% (Set & Pouch curd)
 NLT 1.5% (Diet curd)
 SNF NLT 10%

39
Technical Profile
 Texture - Uniformly fine granules
 Odor - Milky
 Moisture % by mass
 NMT 40% (Khova) & NMT 30% (Kalakandh)
 Fat % on Dry
 NLT 30% (Khova)

Technical Profile
 Texture - Uniformly thick and Creamy
 Odor - Milky
 Fat % NLT 40.0%

40
Technical Profile
 Texture - Firm, smooth & waxy
 Odor - Cheesy
 Moisture % by mass – NMT 39.0%
 Fat % on Dry matter – NLT 48.0%

Technical Profile
 Texture - Firm, smooth & waxy
 Odor - Cheesy
 Moisture % by mass – NMT 60.0%
 Fat % on Dry matter – NLT 35.0%
41
BUTTER MILK

FRUIT YOGHURT

42
 LASSI

PAYASAM

43
SHRIKHAND

44
 CHAPTER-9

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the strengths,

weakness, opportunity, threat involved in a project or in a business venture. It involves
specifying the objectives of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective.

 Strength: The characteristics of the business or project that give it an advantage

over others.
 Weakness: The characteristics of the business that place the business or project
could disadvantage relative to others.
 Opportunities: The elements in the environment that the business or project could
exploit its advantage.
 Threats: The elements in the environment that could cause the trouble for the
business or project.

STRENGTH:

 High quality product

 ISO certification
 It meets the demand properly
 Eco friendly
 Strike free campus
 Products available at a reasonable price
 There is good coordination between the manager and the departmental heads.

45
WEAKNESS:

 Increasing cost of procurement of raw milk and materials.

 Dairy products are perishable
 Inadequate sales promotion campaigns
 Absence of technology up gradient programs.
 Inadequate the sales outlet in rural areas.

OPPORTUNITIES:

 Scope of product diversification

 The company can expand its distribution area.
 More opportunities in rural areas.
 Large product range
 Good scope for capturing huge market share in the milk product category.
 Increasing the level of advertisement.

THREATS:

 New competitors may reduce market share

 Seasonal fluctuations in the availability of raw materials.
 Faces milk shortages within state.
 The increasing intervention of milk product of various competitors in
market is a major threat of the organization.

46
 CHAPTER-10

FINDINGS AND

SUGGESTION

FINDINGS:

 A clean and hygiene environment is maintained inside the plant

 A well-maintained security system is followed by the unit
 The number of strikes and complaints are usually less in the diary which proves that
there is good atmosphere for the workers to work on and most of their needs are
being allowed.
 Better coordination among different departments
 Free flow of communication exists in the organization
 Company is properly auditing the books and accounts in every financial year.

SUGGESTIONS:
 Implementation of a computerized alert system may help to detect problems
quickly.
 A proper system of computer feedback should be adopted
 The management must discuss the problems with the respective of workers.
 Should implement R&D department for producing new products and improve in
certain areas.

47
 CHAPTER-

11

CONCLUSI

ON

The organization study at Milky Mist was done with an objective to understand
how an organization functions, what are its major department and functioning of these
departments. The study of Milky mist provides the opportunity to learn the organizational goals
and objectives. Milky Mist is observed to be an organization that not only has an objective of
working profitably but also a socially responsible organization that care of different section of
the society viz; the milk producers and the milk consumers.

The organization, Milky Mist has established different departments based on functions
like procurement, production, human resources, marketing etc. It ensures quality of product
through established systems which are monitored by quality control department. Finally, the
project enabled understandings of an organization and its objectives and how they function to
achieve organizational objectives.

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i