The main objective of conducting an organization study is to get familiar with the nature and working of an organization. It helps students to develop a practical as well as a theoretical knowledge. It provides an opportunity to study the activities of an organization by direct observation. MILMA KOLLAM DAIRY is situated in Kollam district on the banks of Ashtamudi lake, Thevally . It is a welldeveloped and progressing unit of MILMA. It was established in 1985 and it is functioning under the Trivandrum Region Co-operative Milk Producers Union Ltd (TRCMPU) .

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The administration of this unit is vested in Board of Directors and it is functioning under the co-operative principles. It was formed under operation flood program as a chilling plant and later it was developed into a processing plant . It has seven departments and has a dairy manager who is in charge of managing and assisting all the activities of the unit. In this dairy milk is collected from various co-operative societies and 40% milk from inside the district and 60% from outside the state through National Dairy Development Board(NDDB) based dairies.

The main products of this dairy are milk (MILMA SMART& MILMA RICH) and milk products such as Ghee (AGMARK), Sambaram and Curd. MILMA KOLLAM DAIRY is an ISO 9001: 2002 certified company and “quality” is the keyword of MILMA. Now MILMA products placed a key position in the market and in the consumers mind. Since this is a study to identify the functions of each departments and the functioning of the Kollam dairy as a whole will prove worth enough. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 1 MILMA KOLLAM DAIRY CHAPTER 2 ?INDUSTRY PROFILE ?COMPANY PROFILE ?PRODUCT PROFILE

PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 2 MILMA KOLLAM DAIRY 2. 1 INDUSTRY PROFILE Milk and Milk based industries play a very important role in the world. All the world? s largest dairy farms operating more than one country and some of them are truly international with activities in every part of the world. The availability and distribution of milk and milkproducts, in the modern world is blend of the countries old knowledge of traditional milk products with the application of modern science and technology. Diary is a place where handling of milk and milk products done.

Page 2 Milma Organization study Essay

In developed dairy countries, the year 1850 is seen as the dividing linebetween farm and factory scale production. The rural areas were identified for milk production whereas the urban centers were selected for the location of milk processing plants and product manufacturing factories. These plants and factories were rapidly expanded and modernized with improved machinery and equipment to secure the various advantages of large scale production. Before 1900, nearly all the milk was delivered as raw milk. Milk was first delivered in the bottles on January 11, 1878.

Once pasteurization was introduced, it developed rapidly. Mechanical refrigeration helped in the rapid development of the factory system of market milk distribution. A doubling in the price of wholesale milk over the past year is creating havoc among food manufactures, prompting warning about the food price inflation in U. K. Aid organizations have also raised concerns about the depletion of government stockpiles of milk power. In the western world today, cow milk is produced on an industrial scale. It is by far the most commonly consumed from of milk in the world.

Commercial dairy farming using automated milking equipments produce the vast majority of milk in the developed countries. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 3 MILMA KOLLAM DAIRY The following are the major players in this world: ? Nestle (Switzerland) ? Dean Foods (USA) ? Kraft (USA) ? Dairy Farmers of America (USA) ? Fonterra(New Zealand) ? Danone (France) ? Parmalat (Italy) ? Arla (Denmark) Nevertheless, in spite of these players, India is the largest producer of dairy products and milk followed by USA and China. 2. 1. 1 INDIAN DAIRY SECTOR

The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value added milk products in the world. It has come a long way during the post-independence era of acute milk shortage and depended on foreign aid in the form of milk powder to meet the growing milk demand. India? s milk production in1950-1951 was as low as million tones. Today the country has emerged as the second largest producer in the world. Currently there are over 275 dairy plants 83 milk product factories in co-operative, public and private sector.

The tremendous potential of the dairy industry was given a major fill up with former Finance Minister and the current Prime Minister Dr. Man Mohan Singh? s move to relicense the milk industry in 1992 . The relicensing of the industry PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 4 MILMA KOLLAM DAIRY enabled a massive flow of private investment organized handling of milk in these sectors would in turn beneficial to the farmers and once these market forces are allowed to operate consumer that would also benefit in terms of quality and price. 2. 1. 2 ANAND (CO-OPERATIVE DEVELOPMENT PROGRAME)

The primary co-operative societies are formed by the union in line with Anand pattern with a view to strengthen dairy co-operative society at village level both financially and institutionally. Co-operative development program was started from financial assistance from National Dairy Development Board (NDDB). During 1960? s (Anand/ Kaira district , Gujarat) 1000 of milk producers united together on cooperative lines, for an integrated approach to production , procurement, processing and marketing of milk. This resulted in the formation of AMUL in the (Anand Milk Union Ltd).

This is a success story in the dairy sector in India. Over the years, This evolved itself on to a model based on self-rule by farmers ensuring maximum return to them . This model came to be known as „ANAND PATTERN?. The Anand pattern is a three tier system consists of: ? Village level primary co-operative societies called “APCOS” (Anand Pattern Co-operative Society). ? District/ Regional level co-operative milk producer union. ? State level milk marketing federation. 2. 1. 3 NETWORK The motto of co-operation “of the people and for the people” is the foundation of the three-tier system followed by the organization.

At village level we have the village milk co-operative societies, which have the PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 5 MILMA KOLLAM DAIRY local milk producers or its members. These Village Co-operative Unions are federated at regional level to from Regional Co-operative Milk Producer? s Union and these unions are federated at state level to form State Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF). 2. 1. 4 ASSOCIATES MILMA is in constant touch with other organization in this sector. It is only through active exchange that MILMA grew from a dairy co-operative to the position it holds in Kerala.

2. 1. 5 NATIONAL DAIRY DEVELOPMENT BOARD (NDDB) Under Dr. Kurian? s guidance Kerala Co-operative Milk Marketing Federation (KCMMF) is set up in 1980. Ever since then, there has been a very close co-operation between NDDB and Federation. NDDB are the originators of operation flood programs and have been the funding agent for the Operation Flood projects in Kerala. The efficiency of „Anand Pattern? led to the launching of a dairy program called „Operation Flood in 1970 under the NDDB?. Credit for most of the work is done in the field of milk supplied by co-operatives that goes to the NDDB.

The board was set up by the government to replicate the Anand experiments in the rest of the country. The board with the help of government of India got a commodity assistance valuing Rs. 120 crores, under world food program, 1997. This fund was used to develop operation flood program. Under this scheme, financial assistance was provided to various state government and other agencies for implementing dairy development scheme. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 6 MILMA KOLLAM DAIRY There are mainly three phases: ? Operation flood phase -1 (1970-1981) ? Operation flood phase -2 (1981-1987) ?

Operation flood phase -3 (1988 onwards) 2. 1. 6 OPERATION FLOOD The success story on the dairy sector in India in the sixties was the former owned Amul Co-operative in Anand (Kaira District Gujarat) with its integrated approach to production, procurement and marketing on Co-operative lines. Over the years this evolved itself into a model, based on self-rule by farmers ensuring maximum return to them. This model came to be known as Anand Pattern. This dairy program called „Operation Flood? was launching in 1970 under the NDDB. NDDB functioned as the technical consultant and the Erstwhile Indian Dairy Co-Operation as the funding agency.

The ideology followed by the operation flood was the remunerative linking of rural milk producing centers so as to build up a viable dairy industry. 2. 1. 7 OPERATION FLOOD IN KERALA The „flood? in Kerala was included in the second phase of the operation flood (1980-1987) . The eight southern districts from Trivandrum to Thrissur were included in the area of the project , which had a total outlay of Rs. 99 crores . The growing popularity of the concept of Co-operatitisation sector has spurred the PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 7 MILMA KOLLAM DAIRY authorities into exploring new vistas.

The uncovered northern areas from Palakkad to Kasargode were thus brought under the Co-operative umbrella with the inspection of “North Kerala Dairy Projects”. 2. 1. 8 KERALA CO-OPERATIVE MILK MARKETING FEDERATION (KCMMF) KCMMF popularly called MILMA was established in April 1980 with its Head Office at Trivandrum for the successful implementation of the operation flood (a dairy program launched in 1970 under the aegis of National Dairy Development Board). The goal of KCMMF is “the socio-economic progress of the dairy farmers through procurement , processing ,and marketing of milk”.

The KCMMF operates on the truly democratic lines of “of the people, by the people and for the people”. It has three units: 1. Trivandrum Region Co-operative Milk Producers Union Ltd. (TRCMPU). 2. Ernakulum Region Co-operative Milk Producers Union Ltd. (ERCMPU). 3. Malabar Region Co-operative Milk Producers Union Ltd. (MRCMPU). The area of operation of TRCMPU comprises of four revenue districts namely Trivandrum, Kollam, Alappuzha & Pattanamthitta. Whereas ERCMPU consist of Thrissur, Kottayam &Idukki and MRCMPU consist of Kozhikode, Kannur and Malapuram. 2. 1.

9 MILMA FARMERS ORGANISATION MILMA is an organization of the farmers. They are the producers of the raw material milk and the ultimate owners of MILMA. The shareholders in the organization and the chairman and Board of Directors are elected from among the organization. The farmers are the members of the Anand Pattern Co-operative societies (APCOS). The PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 8 MILMA KOLLAM DAIRY president of APCOS from the General Body of the Regional Milk Unions, which federate to form the KCMMF (Kerala Co-operative Milk Marketing Federation).

MILMA provides the member of APCOS with various services at nominal or concessional prices. 2. 1. 10 GOVERNMENT OF KERALA The phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved without the foundation of animal husbandry activities led by the Animal Husbandry Department (AHD) and Dairy Development Departments of the Government of Kerala. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 9 MILMA KOLLAM DAIRY 2. 2 COMPANY PROFILE 2. 2. 1 PLANT LAYOUT Purchase & Store Department Administration Block Engineering & Maintenance Department Quality Control Department

Account & Finance Department Production Department Procurement & input Department Security Department Sales Section Security Guard Entrance PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 10 MILMA KOLLAM DAIRY MILMA KOLLAM DAIRY was established in 1985 as a milk chilling plant in Thevally, Kollam District and Later it was developed into milk processing plant . This is an ISO 9001: 2000 certified company. It is functioning under the Thiruvananthapuram Region Co- operative Milk Producers Union Ltd (TRCMPU) and the apex body is the Kerala Co-operative Milk Marketing Federation (KCMMF) .

Now the Kollam dairy has a processing capacity of more than 1 lakh liters of milk per day. It consists of eight departments and a dairy manager who is charge of managing all the activities of this unit. There are 25 officers and 140 permanent employees and 60 temporary employees are working day and night in the dairy in three shifts. The main product of this dairy is milk (MILMA smart and MILMA rich) and also they produced MILMA GHEE (AGMARK) ,MILMACURD and MILMA SAMBHARAM and various other products like butter, ice-cream , peda, etc. brought from other dairy for sale in Kollam . MILMA has a lengthy product line in the market .

In these, many of the items are market leaders in their segments and they hold a very big market share. Ghee produced from the Kollam Dairy has acquired ISO 9000 certification. „Quality? is the key word of MILMA. Now MILMA serves thousands of customers day in and day out. 2. 2. 2 OBJECTIVES 1. To channelize marketable surplus milk from the rural areas to urban areas to maximize the returns to the producers and provide quality milk and milk products to the consumers. 2. To carryout activities for promoting production, procurement, processing and marketing of milk and milk products for economic development of the farming. 3. To build up a viable dairy industry in the state. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 11 MILMA KOLLAM DAIRY 4. To provide constant market and stable price to the dairy farmers for their production. 2. 2. 3 QUALITY POLICY Kollam Dairy is committed to conform to requirements to enhance satisfaction of customers and producers by providing consistent quality products and services . They strive for environmental care and market leadership through effective implementation and continual improvement of quality management system.

PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 12 MILMA KOLLAM DAIRY 2. 3 PRODUCT PROFILE TRCMPU being a firm under dairy industry produce verity of milk and milk related products the products of MILMA can be classified principle product and subsidiary products. Principle product of MILMA is milk it is called as the principle product since it has an advantage over other products in terms of quantity of production, demand, sales and revenue. Other milk related products produced and marketed by MRCMU are curd, ghee, sambharam etc. The products are: 2. 3. 1 MILK

Kollam dairy mainly produces three types of milk on the basis of fat including in it. They are: 2. 3. 1. 1 MILMA SMART MILMA SMART contains 1. 5% fat and 9% SNF (Solid Not Fat). it is used for several domestic and nondomestic purposes. It is available at 500 ml packets. 2. 3. 1. 2 MILMARICH PLUS MILMA RICH plus contains 3. 8% fat and 9. 0% SNF . This is most suitable for those who requires comparatively more energy such as growing children , more hardworking people, pregnant womens, etc. This variety is much profitable for hotels, canteens, catering services , etc.

It is mostly suitable for making PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 13 MILMA KOLLAM DAIRY desserts, pancers and such other sweets . The maximum retail price of MILMA RICH PLUS is Rs. 13. It is available at 500 ml packets. 2. 3. 1. 3 MILMAHOMOGENIZED TONNED MILK MILMAHOMOGENIZED TONNED MILK Ideal for whitening tea / coffee and for the preparation of solid curd . Since the milk is homogenized. 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 the top since the milk is homogenized. It is available in500ml PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 14 MILMA KOLLAM DAIRY 2. 3. 2 MILMA GHEE (AGMARK Special grade) A product of high demand and quality. MILMA GHEE is produced from pure milk cream. MILMA GHEE also possesses AGMARK certification which no other similar productions have yet obtained. MILMA GHEE is available in 50gm, 100 gm, 200 gm, 500 gm, 1 kg, 15 kg as per the customers requirements. 2. 3. 3 MILMACURD MILMA CURD is produced from pasteurizing skimmed milk using curd culture.

It has 9% SNF contents. MILMA CURD is available in 500 gm packets. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 15 MILMA KOLLAM DAIRY 2. 3. 4 MILMA SAMBHARAM The best drink to quench our thirst produced from diluted curd and other ingredients such as chilly, salt and curry leaves and without adding chemicals or preservatives . It is available in 200 ml packets . The maximum retail price of Sambharam is Rs. 3. 50. Other products like Butter, Choco beats, Drinking water, Ice Candy, Mango, Milk cream, Palada mix, Paneer, Peda, Ice cream, etc. are brought from other dairies for sale in Kollam.

PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 16 MILMA KOLLAM DAIRY 2. 3. 5 MILMAPLUS (FLAVOURED MILK) Manufactured by addition of sugar and flavor to skimmed milk. The product is sterilized along with the glass contained by heating to a temperature in specialized oven after which containers are stored 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. It is available in 200ml containers and in a variety of flavours. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 17 MILMA KOLLAM DAIRY CHAPTER 3

Organizational Structure MC Kinsey’s 7s Framework Departmental Analysis PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 18 MILMA KOLLAM DAIRY 3. 1 ORGANISATIONAL STRUCTURE MILMA KOLLAM DAIRY consists of seven departments. Each department has its own functions and they are headed by well qualified managers. The departments in MILMA are as follows: ? Quality Control Department ? Procurement and Input Department ? Production Department ? Marketing Department ? Finance and Accounts Department ? Human Resource Department ? Maintenance and Engineering Department PADMASHREE INSTITUTE OF MANAGEMENT STUDIES

Page 19 MILMA KOLLAM DAIRY PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 20 MILMA KOLLAM DAIRY 3. 2 Mc KINSEY’S 7 S FRAMEWORK The main aim of a company is to attain certain target so the company needs certain strategy. The successful execution of a strategy requires seven elements. Each element is interrelated with other elements. If the absence of one „S? will affect the whole structure. The seven interrelated activities are; ? Structure ? Strategy ? System ? Style ? Staff ? Skills ? Shared values 3. 2. 1 STRUCTURE Structure means the way in which organization? s units relate to each other.

The operation starts from top level to lower level. The MILMA KOLLAM DAIRY is headed by Dairy Manager and various department is headed by department Manager also the lower level operative employees working under him. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 21 MILMA KOLLAM DAIRY 3. 2. 2 STRATEGY Strategy means the plans and directions, overtime, to reach identified goals. Quality assurance is the key word of MILMA KOLLAM DAIRY, and reasonable charge is based on the quality of product. 3. 2. 3 SYSTEM System refers to the procedure, process, and routines that characterize how the work should be done.

MILMA KOLLAM DAIRY is responsible for the collection of milk from societies which are collected from farmers and the supply of the milk to the dairy for processing. In MILMA KOLLAM DAIRY there are 208 registered societies. Out of these 179 are functional societies and 29 are traditional societies. 3. 2. 4 STYLE Style means cultural style of organization. Each employee is accountable to his superior and each leads his subordinates. 3. 2. 5 STAFF The Staff simply means that number and types of personnel within the organization or otherwise refers to the organizations human resource.

In MILMA KOLLAM DAIRY there are 200 Permanent employees and 50 temporary employees are working. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 22 MILMA KOLLAM DAIRY 3. 2. 6 SKILLS The Skills refers to the competencies and capabilities of staff in the organization. In MILMA KOLLAM DAIRY the required skills of employees are identified by conducting training programmes. 3. 2. 7 SHARED VALUES Shared value is the central beliefs and attitudes that all the employees of the organization are sharing. The main shared values of MILMA KOLLAM DAIRY are; ? Provide high quality milk to the consumers. ? To provide employment opportunities for the rural peoples. PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 23 MILMA KOLLAM DAIRY 3. 3 DEPARTMENTAL ANALYSIS 3. 3. 1 QUALITY CONTROL DEPARTMENT The quality control department of MILMA KOLLAM DAIRY is headed by a Manager (QC). He is assisted by Quality Control Officer, bacteriologist\chemist, lab technicians Grade-? and lab assistants. There are 5 employees in this department. This dairy aims at giving quality products to its customers. Manager Q C Quality Control Officer PADMASHREE INSTITUTE OF MANAGEMENT STUDIES Page 24

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