Co-Operative Dairy System

7/31/2019 Co-Operative Dairy System

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Co-operative Dairy

System


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Presentation Overview

Overview of the Business

Purpose of the Business

Production Department

Marketing Department Finance Department

Purchase And Stores

Quality Control Department

Dispatch And Logistics

Business Workers

Business Actors


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Vision and Mission


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Quality Policy


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Purpose of the Business


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Hierarchy


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Functional Departments


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Production Department

Converts raw material into finishedgoods by processing them and creatingutility out of them.

Interrelated with the Personnel,Finance, Marketing Departments.

Portion of the milk is used for milkpacking, while other is used for milkproducts.


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RMRD

Milk is major raw material. Milk is received at the receiving dock in

two shifts (Morning and Evening).

It is segregated on the basis of cow andbuffalo milk.

Cow and buffalo milk cans are kept ondifferent moving belts during which theworkers check whether the milk is of goodquality or fair quality.

Separated on the basis of good quality and

fair quality.


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Sample testing

Weighing of milk

Good quality milk- satisfy the demand of milkand to produce products such as butter, ghee,cream, cheese, ice-cream, sweets

Fair quality milk - produce curd, butter milk,paneer, shreekhand

MilkoScan measures Fat, SNF, protein, lactose

contained in the milk sample Source of sample not know to lab workers

Milk-societies also perform sample testing


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Payment

Record maintenance

Records contain Fat and SNF percentagein the milk given by a particular milk-society

Payment after a predetermined intervalusually 10-15 days according to records


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Storage and Processing

Cooling down the milk up to 4c afterreceiving to stop pathogen multiplication

Pasteurization 84c for 18 seconds and 4c for 2.5 minutes

Standardization Extract or add fat according to the parameters

Testing in lab for approval Clarifying

Removes dirt and dust particles


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Homogenization Fat globules are broken into tiny particles

Storage in tanks of capacity around 15000liters

Low temperature

Thereafter different process are carried

out to obtain various products such asbutter, ghee, butter-milk, curd, etc.


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Packing

The products obtained after processingare then brought into the packagingdepartment.

Automated machines with highefficiency are used for the packing ofdifferent products.


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Distribution

After packing is done, these products aresupplied to different distributors of thatparticular dairy.

The distributors are supposed to orderthe amount of the products in advance.

On receiving, distributers have to pay thebill of the purchase. The distributersthen sell these products to the customers.


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Wastage Management The fat which cannot be used for consumption is

considered as waste and non-edible. Non-edible fat contains casein which is useful in the

manufacture of medicines.

So, the dairy dries up the non-edible fat which is nothing

but raw casein. Medicine manufacturing companies buy raw casein

converts it into useable casein to manufacture capsules.

Soap manufacturing companies buy non-edible fat in the

manufacture of soap. Water wasted along with the fat cannot be disposed

directly into the environment. So, treatment plants areused to purify the water which is then re-used if possible

or disposed.


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Marketing Department

Marketing occupies an important positionin the organization of a business unit.

Consists of those efforts which affecttransfer of ownership of goods and care forphysical distribution.

Products are made available to the ultimateconsumer.

It consists of all those activities which aremeant to ensure the flow of goods andservices right from the production or themanufacture to the consumers.


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Product Planning

Each product level must develop a marketingplan for achieving its goal.

Utmost important for success of the marketingprocess.

Done by the marketing department according tothe feedback received from the market.

Steps:-Market research and survey

-Product analysis-Costs-Decisions


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Market Planning

Market planning focuses on consumers having

different needs, geographical locations, buying

attitudes and buying practices. Any of these

conditions can be used to segment a market.

Out of all the above factors for milk distribution,

income is considered most important. High

earning group of people buy wholesome milk,while among middle class and the lower income

class people toned milk is more in demand.


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Pricing Policy


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Discount

Discount is yet another option to increase the

sale of the product if the sales go down.

Seasonal changes may trigger discounts on

products. For instance during summer peopletend to buy cold products such as ice-cream,

butter-milk, etc.

So, offering discounts on such products duringsummer would result in huge selling of the

products.


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Sales Promotion


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Advertising


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Finance Department


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Goals And Scope


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Financial Planning

The major decision pertaining to financial

planning such as long term requirement of capital

expenditure, permanent and short term needs,

etc. are taken by top level.

Factors affecting financial planning are:

Nature of Business

Degree of Risk

Attitude of Management

Government policies


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Working Capital Management


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Inventory Management


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Receivable Management

When goods are sold on credit, the prices of goods

become receivable. This is known as trade debtors or

receivables.

According to receivables, assets are accounts

representing the amount owned to a firm as a result ofsales of goods or services in the course of business.

Objectives of maintaining receivables

To achieve growth in Sales

To increase profits

To meet competition


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Cash Management A firm should have sufficient cash neither more nor less.

If the firm holds surplus cash, this excessive cash remains

idle and simply increases the cost without contributing

anything towards the profitability of the firm. On the

other hand if the organization is always running with

shortage of cash in trading, then manufacturing will

disport and ultimately profitability also.

Cash Management involves following four factors:

Ascertaining of the minimum cash balance andcontrolling the level of cash

Controlling cash inflow

Controlling cash outflow

Optimum involvement of surplus cash


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Purchase and Stores

A Co-operative Dairys main raw material is

milk. The purchase department has to pick up

just 10% of other raw material.


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Purchase Procedure

Respective department heads find out their need and get itapproved by the managing director.

They contact the stores department.

Send an indent to the purchase department.

The purchase department asks for quotation from the

suppliers.

After the quotations are received supplier will be selected.

The least cost giving supplier will be selected.

Further the finance department will make the payment tothe supplier after the delivery of goods.


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Types of Stores Cold Stores

The cold stores are used for storing milk, butter milk, flavoredmilk, curd, etc. and many other products.

General Store 1

In this general store, the veterinary products, medicines,

transportation instruments, buckets, flavors for milk and shrikhandare stored.

General Store 2

Here plastic of milk bags is stored, tins of ghee, milk powder,fodder for cattles, etc. are stored.

Non Moving Item StoresHere plastic of milk bags, which are outdated, expired chemicalsand other products or items, which are of no use or which are notreusable are stored here.


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Material Handling

There are two types of method formaterial handling in the store department:

Technical method

The technical method consists chain hoist,chain trolley, etc.

Manual method

The manual method consists of truck,trolley and three wheel trolleys.


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Receipt Procedure

Requirement from the concerned department. Indent raising Inquiry by purchase departmentComparative statement and approval Purchase orderMaterial Supplied Invoice in storesMaterial InspectionGoods receipt Inspection reportCopy sent to purchase department for rejection

or acceptation.


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Issue Procedure

Stock requisition note from theconcerned department

Signed by the officer of stores

Issue of the material to the concerneddepartment


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Quality Control Department

Deals with the maintenance of quality ofthe products, based on the qualitystandards defined in the quality policy.

Products can be sold only if they areapproved by the Quality ControlDepartment.

The workers include Quality controlmanager, Senior officer, Junior officer,Chemist and sampler.


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Dispatch and Logistics

As per all information given by GeneralManager of Marketing Department andAssistant Manger of dispatch

department, all activities are carried outunder their supervision i.e. order of milkand milk products are dispatched as per

the order of customers and retailer andall records of dispatch are kept indispatch register and computer.


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Modes of Dispatch and Logistics

In dispatch department the work is divided in 3

shifts:

1. Morning

2. Afternoon3. Evening

Sources of Mode of Transportation

Trucks, tempos, insulated vans, three wheelertempos are used to deliver milk and milk

products.


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Business Workers

Superintendent

Senior Officer

Junior Officer

ChemistSampler

Engineer

Doctor

Supervisor

Cleaning Staff


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Business Actors

Milk-Society Distributors Transporter

SupplierSoap

Manufacturer

Medicine

Manufacturer

Advertisement

MediaVisitors

Pollution

Control Board


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Use Cases


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Actor Milk Society Supply Milk


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Actor: Milk Society

Use Case: Supply Milk

Supply Milk


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Storage and Processing

Sample Testing


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Sample Testing


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Receive

Payment


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Provide

Transportation

service


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Order and


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Order and

Billing


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Resources

We visited Baroda Dairy for collection of information as an whenrequired. The Departments we decided to focus on were visitedfirst. Specific date and time was decided prior to the visit byconsulting the concerned authorities.

To reach there we used public transportation vehicles such as Bus,Rickshaw and as an alternative used our own vehicles.

For numeric data and pictorial data we consumed Internet as aresource. We consulted Dr. S. N. Joshi Former Gen. Manager ofPanchmahal Dairy Producers Union and also Mr. Shridhar Patelmarketing Manager of Amul Dairy .

There were times when our visit was not successful , as in the goalfor the visit was not achieved.

We also thank Dr V. A. Kalamkar for making us eligible forimparting knowledge and successful completion of the project.


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Project Members

Shivam S. BarveKruti J. Malaviya

Bhramar S. Bhatnagar

Ekta V. Issrani


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ThankY u

Documents

Co-Operative Dairy System