Transcript of "An Organisational study at TUMUL, Tumkur, Karnataka"
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 11. INTRODUCTIONHuman behavior in organization is determined partly by the requirements of theformal organization and partly by the personal systems of the individuals forming theorganization. The behavior that emerges from this interaction defines the field of theorganizational behavior.In the production department when we entered in the beginning the manager toldhis assistant to explain the process. Then she had explained about how the milk isprocured and weighed in the machines. Pasteurizing and standardization of the milk wasshown. While explaining she was really calm and explaining each point and also wasanswering to our questions. After this we were called to production office where theproduction manager asked whether we understood the process or not. He was actuallycurious about speaking with us in English. Then again he also explained about theprocess and then gave much useful information. After listening to this I understood howwell they know each and every factor which affects the production and quality.In the quality department how the tests are conducted. Both the laboratories werehygienic and technological. When I saw the lab technicians were doing the Lactose andGerber tests for finding out the degree of the milk and contamination in it, came to knowthese tests were not only limited to schools or colleges to teach students. But were reallyused here for the safety of its consumers and how well it was utilized in milk industrieslike this.In finance department got the opportunity to see the functioning of the clerks,officers and manager. They all were coordinating with each other in the formal manner. Ifthey had doubt about how to pass about new entries especially new comers, then theywould ask for the help from their seniors. Much job pressure would be on them at thefinancial year ending. Because they would be very busy in the preparation of thefinancial statements.Learnt why journals and ledgers are so important because these are the base ofwhat kind of transaction it was. These are the sources and act as history where they cancheck for reference of any entry.HR manager within his busy schedule made some time for us to explain therecruitment policies of employees, training to them and job promotion on seniority basis.In the HRM subject we had studied that there were recruitment policies, job trainingtechniques and promotion policies. After meeting him we came to know that the MD andHR manager (himself) would select the suitable candidates for the Dairy after goingthrough the resumes and then personal interview for the candidates. Promotions aregenerally given on seniority basis. Because seniors would have much more thorough
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 2knowledge about how the functions affect other things and dairy it‟s relation with KMF.HR allowance and conveyance allowance are given to the employees because it‟s situated11 kms away from Tumkur city. So this helped me to understand why conveyanceallowance should be given to employees. It will reduce the burden on the employees andthey would come to work freely.There is also the availability of the canteen. Here all the employees including fewmanagers would go to take lunch. Here there is no discrimination and the quality of thefood is also good. Students like us can also visit the canteen and take food. There is nobifurcation among anyone. Same south Indian food is given to all at very low price ofRs.12. Here few informal talks go on. Employees find some time to talk with theircollegues here. Their family matters or some other news like politics and films. So this isthe time and place where they can hangout for some time and feel they are with the theirbest ones.For welfare and positive state of employees a temple is being constructed withinthe plant. After talking with the employees it‟s known that they are happy with it. In thefuture they can just visit the temple and pray there. It creates some kind of attachment ofthe employees with the organization.After watching all the departments and plant layout which is divided into„administration‟ (union office) and the „Dairy‟ I learned the things like how juniorsbehave with seniors, how the one function would affect another like if the procurement isless then that day the production will be less and the products which would reach to 17milk parlors under it would be quite few. Work pressure is faced by the employeesbecause many times we were asked to come later so that they can make some time toexplain us about their department,Finally I could say that it was a great experience taking over an internshipprogram in this organization which taught me about organizational culture. We can usethis gained knowledge in classroom. When some subjects are being explained in theclassroom then the experience of watching the functions here would help us to relate andunderstand the subject in a better way. Totally this was helpful to enhance our skills,knowledge and experience.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 32. INDUSTRY PROFILE2.1 An overview of dairy industry in IndiaWhite Revolution in IndiaThe first organized attempt at providing safe milk to customers was made by themilitary dairy farms, with the objective of supplying milk to the British troops in India.The next attempt at the organized dairying in the Bombay city by the British Govt. toimprove the city milk supply in fact Mr. R.A Pepparall, the secretary of the milkmarketing board of England, in a meeting with a press in 1944, stated that the milk beingsold all by the private traders in Bombay had a bacteriological count higher than thesewage of London! This necessitated the Government‟s intervention in the year 1945,which led to the establishment of the Bombay Milk scheme and a private firm owned byMr. Polson, located at Anand. 400 kms north of Bombay, to supply milk to the scheme.The opening up of the attractive market of Bombay to the milk producers of kairadistrict, provided the stimulus to increase their production shortly after India becameindependent, the Government of Bombay realized that the prevailing system of milkcontractors, trades and the private Palson Kairy were exploiting the farmers of kairadistrict. Cooperative milk union(popularly known as AMU) starting with a modestcollection of 250 liter of milk per day in 1948, and 2 village milk producer societies,AMUL has grown to a size when it today hans some 850000 liters and more of milk aday in the peak season. The Kair‟s cooperative has a membership of some 3600000farmers and pay farmers members nearly Rs. 100 crores for the milk supplies by them,the cooperative society own dairy which process for the milk and marketers dairyproducts in competition with private industry under the brand name “AMUL” the leadingnational brand name in dairy products.The role of the state dairy federation, the Indian dairy cooperation (IDCO and theNational Dairy Development Board(NDDB):Under operation flood-1, the responsibility for the planning and implementationof each states program for dairy development is that of the state level cooperative dairyfederation. All the district cooperative milk producers unions are to become members ofthese federations and receive their assistance under the program through thesefederations.The funds for the implementation of operation flood-1 project were generated bythe sale of 127517 tons of skim milk power and 39696 tons of butter oil provided by theworld food program. A total of Rs 116.4 crores was generated for the implementation ofthe program. The IDC was specially setup by there sale for the implementation of theproject.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 4Fund for the implementation of operation food are being party generated by theEuropean Economic Community (EEC). The project is also to receive World Bankassistance of $150 millions. Part of the project is to come from reflows of loans madeunder the operation flood-1 and the interest there on. The remaining funds for the projectare to be generated by sale of a further fifth of 10500 tons of milk powder and 35000 tonsof butter oil that EEC is likely to provide.The state dairy federations are the implementing agencies for each state dairydevelopment program under operation flood-1. The federation puts up a perspective planfor IDC under the program for dairy plants. Cattle feed plants, milk marketinginfrastructure on 70% loan 30% grant basis funds required for the organization of therural milk producer‟s cooperative are provided on a 100% grant basis, the IDC also laysgreat emphasis on the training of the personnel required for the implementation of theprogram rests with the state dairy federation, the NDDB provides services for planningthe project and setting up of dairy and cattle feed plants on turn-key/consultancy basis.The NDDB has been deputing searched teams for organizing milk producers‟cooperatives. It has to for the arranged visit of some 15750 farmers, from all over thecountry to Anand and training some 5000 professionals for the implementation of theprogram, the IDC has total strength of 250, and NDDB employees some 1250 persons ofwhom 700 are professionals while the IDC is a Government of India company, theNDDB is a registered society. NDDB apart from providing services for theimplementation of operation flood, also provides the applied research and developmentsupport to the projects.2.2 Dairy Industry in KarnatakaIn June 1974, an integrated project was launched in Karnataka to restructure andreconcile the dairy industry on the cooperative principal and lay foundation for the newdirection in dairy development, work on the every first world bank aided dairydevelopment project was initiated in 1975.Initially the project converted 8 southern districts of Karnataka and Karnatakadairy development corporation was set up to implement the project. The multilevelactivities were setup with dairy cooperative societies at gross root levels, milk union atthe middle level as an apex body, vested with responsibility of implementing Rs.51crores project ended and the dairy development was continues in second phase fromApril 1984, KMF come into existence(Karnataka Milk Federation)In may 1984 as a successor to KDDC, after the closure of operation flood-11dairy development activities continued under operation flood-11
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 52.3 Historical Background of the Organisation(TCMPSUL)In Karnataka on June 4th1975 four milk unions were started in Bangalore,Mysore, Tumkur and Hassan. In Tumkur it was named as „Tumkur Milk‟. ThenKarnataka dairy development cooperation (KDDC) renamed as „Karnataka MilkFederation” and dairy into “Tumkur cooperation milk producer‟s societies unionLimited” (TCMPSUL)Objectives:Karnataka milk federation is a cooperative apex body in the state of Karnataka forrepresenting dairy‟s farmer‟s organization and also implementing dairy farmer‟sorganization and also implementing dairy development activities to achieve.The following objects:1) Providing assured and remunerative market for the entire milk producers by the farmermembers.2) Providing hygienic milk to urban consumers3) To build village level institutions I cooperative sector to manage the dairy activities.4) To ensure provision of milk production inputs processing facilities for self-employmentat village level. Preventing migration to urban areas introducing cash economy andopportunity for steady incomeThe philosophy of dairy development is to eliminate middlemen and organizesinstitutions to be owned and managed by the milk producers by themselves, employingprofessional. Achieve economies of scale to ensure maximum return to the milkproducers, at the same time providing wholesome milk at lowest possible price to urbanconsumers ultimately the complex network of cooperative organization should build abridge million of consumers on the other side and achieve a socioeconomic revolution inthe hinterland of the state.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 63. COMPANY PROFILETUMKUR MILK UNION IS A CO-OPERATIVE INSTITUTION which is alsohaving motive of social service where it was registered on 30thMarch 1977 at TUMKURto initiate the dairy development activities in the district and to provide facilities toprocess milk and milk products and also their marketing at Malla Sandra , which is11kms away from Tumkur urban area. It is situated in the rural area, which is outside thejurisdiction local authority such as municipal and corporation.Objectives of the union1. Providing assurance and remunerative market for milk produced by the farmer members.2. Provide hygienic and quality milk to urban consumers.3. To build village level institution in co-operative sectors to manage the dairy developmentactivities4. To ensure provision of milk production inputs, processing facilities and dissemination ofknow how5. To provide competitive prices to all the milk produced by the farmers by members of theunion in order to improve the standard of living6. To provide appropriate medical facilities to all the cattle in order to maintain the healthcondition.PRINCIPLES:The formal principle of the TUMKUR MILK UNION is bound to get nationwidebest place in milk production in order to achieve the same the union follows the underlisted principals-1. To help its member association financially and socially and to improve their worktowards making a profit business.2. To adopt modern technology.3. To provide the best service to the customers and the milk producers through services anddedication of all employees
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 7MissionSocio-economic development of producers by making dairy industry profitable,using advanced technology and also through dedication of workmanship of employeesand good services to consumers in order to gain top position in the dairy industryValuesThe following are the values bound by TUMUL-1. Honesty2. sincerity3. discipline4. quality5. faith6. impartiality7. cost consciousness and transparencyQuality policyTUMKUR MILK UNION will procure pure milk from its member societies andscientifically process in its endeavor to supply fresh pure and safe milk and its derivativesof customer‟s satisfaction at competitive price.TUMKUR MILK UNION will strive to continually improve its performancethrough all stake holders‟ participation
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 83.1 Milestones:Sl.No.Year Milestones1 1975 Spearhead team commenced its work2 1976 First milk route organization3 1976 Union registration4 1977 Formation of Managing Committee5 1977 Sanction of 21 Acre Kothanahally Fodder farm6 1977 Sanction of 70 Acre land for Dairy construction.7 1979 Establishment of Diagnostic laboratory8 1981 Commissioning of Tumkur Dairy9 1984 Commissioning of Yediyur Chilling centre10 1986 Establishment of union administrative office11 1986 Commissioning of Sira Chilling centre12 1987 Handing over of dairy administration to Union13 1990 Commissioning of Kibbanahalli Chilling centre
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 914 1997 Commissioning of STEP-women societies15 1999 Commissioning of Madhugiri Chilling centre16 2004 Bulk milk coolers and Electronic weighing machines17 2005Dairy processing capacity increased from 60000 ltrsto 1 lakh ltrs18 2006 Certification of ISO and HACCP192007 Grade A certification from department of audit forthe year 2006-0720 2008Online RMRD computerization of milkprocurement truck sheet21 2009Implimentation of Rs 2 incentive by GOK to milkproducers22 2010 Installation of CCTV23 20101. Quality Incentive of 10 paise per Kg of milk toSociety staff.2. 10 paise incentive to society staff forimplementing GOK schemes.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 103.2 GENERAL INFORMATION:SLNOPARTICULARS1 Functioning area of operation Tumkur2 Total taluks 103Total villages29774No of villages under the administration ofmilk union18145Functional district co operative societies8996No. of chilling center47 Capacity of chilling centerTumkur main diaryYediyurKibbana halliSiraMadhugiri100000 lit20000 lit30000 lit20000 lit20000 lit8 Rotues for procurement of milk 849 Distribution ways 4410 Regd. Nindini milk seller 43111 Nindini milk parlors 17
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 114. PRODUCT PROFILE4.1MILKA) Toned MilkNandini Toned Milk is the Karnataka‟s most favorite Milk. Fresh and pure milkcontaining 3.1% fat and 8.5% SNF.Available in 500 ml & 1 liter packs.Maximum Retail Price Rs, 10.50 and Rs 21.00 respectivelyB) Homogenized Toned MilkNandini Homogenized Toned Milk is pure Milk containing 3.1% Fat & 8.5% SNF. Thisis Homogenized and pasteurized. It gives you more cups of tea or coffee and is easilydigestible.Available in 500 ml & 1 liter packs since Feb 2007.Maximum Retail Price Rs 11.00 and Rs 22.00 respectively.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 12C) Double Toned MilkNandini Double Toned Milk containing 1.6% Fat & 9.0% SNF.Available in 250 ml packs to the consumers since June 2003.Maximum Retail Price Rs 5.00D) Homogenized Cow MilkNandini Homogenized Cow Milk containing 3.6% Fat & 8.5% SNF.Available in 250 ml & 500ml packs from June 2007.Maximum Retail Price Rs 6.50 & Rs 12.00 Respectively
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 13E) Shubam MilkNandini Shubam Milk containing 4.5% Fat & 8.5% SNF released to the market fromMay 2011.Available in 500 ml & 1 liter packs.Maximum Retail Price Rs 13.00 & Rs 26.00 Respectively.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 14PROCEDURE IN A CHILLING CENTERTransportationCollecting andgrading milk DCSChilling center dockReceiving, grinding and weighingand testing (quality control)Diary for processingTransportationStorageTestingChilling
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 15MILK PASTEURISATION-FLOW CHARTRaw Chilled Milk Pasteurized Chilled Milk-SiloFloat Balance TankPump Pasteurizer Chilling SectionPasteurizer Re-generation Section-1Cream SeparatorPasteurizer Re-generation Section-2HomogenizerWaterMixing Battery/PHESteamScaldingWaterthroughPumpPasteurizer Heating SectionHolding CoilFDV
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 164.2 MILK PRODUCTSA) CurdNandini Curd made from pure milk. It‟s thick and delicious giving you all the goodnessof homemade curds.Available in 200grams and 500 grams packs.Maximum Retail Price Rs 13.00 & Rs 26.00 RespectivelyProduct Description of curd:1. Product Name : Curd2. How it is to be used : Direct consumption with food & making buttermilk & curd3. Packaging : Food grade preprinted Polythene filmpackaging (200g, 500g & bulk cans)4. Shelf life : 48 hours from the date of Package whenstored at 4 degree or less5. Where it will be sold : At nandini retail stores & other marketingoutlets6. Labeling instructions : Within 2 days from the Date of packing whenStored at 4 degree or less7. Is special distribution control needed : Preferably through Insulated vans.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 17Intended use1. What is normal use of the product? : Direct consumption along with foodand also to prepare products like lassi,butter milk etc.2. Who will consume the food? : Everybody.3. Is the food intended for high risk : Nopopulation?4. Is the food intended for retail or : Bothfood service?5. Is the food required to be transported : Ambientunder ambient, insulted orRefrigerated conditions6. Is the food held refrigerated/ frozen/ : Requires refrigeration.Hot before consumption.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 18Curd Production:1.Receipt of pasteurized toned milkIn curd vet2.Heating to 32 to 35 deg celcius3.Addition of starter culture4.Pumping to balance tank6.Packing5.Receipt and Feeding of film7.Pilling in crates9.Transferring to cold store8.Incubation10.Storage11.Dispatch
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 19B) Butter MilkNandini spiced Buttermilk is a refreshing health drink. It is made from qualitycurds and is blended with fresh green chillies, green coriander leaves and fresh ginger.Nandini spiced Buttermilk promotes health and easy digestion.It is available in 200 ml packs since June 2002 and is priced at most competitiverates, so that it is affordable to all sections of people.Maximum Retail Price Rs 6.00Product Description of butter milk1. Product Name : Masala Butter milk2. How it is to be used : For General drinking as whitener for coffee & tea and toprepare flavored milk to make dahi, yoghurt & butter milk.3. Packaging : Packed in multilayer pigmented LDPF preprinted film ofFood Grade in 250ml, 500ml & 1000m Packs and bulk inSS cans and tankers.4. Shelf Life : 24 hours from the date of packing at 4 degree or less.5. Where it will be sold : Retail outlets, Food service Establishments bulk sales6. Labeling Instructions : Best before within one day from date of packing whenstored under refrigerated condition at 4 degree or less7. Is special distribution : Needs to be distributed in cold chain networkcontrol needed8. Product Specification : As per PFA.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 20Intended Use1. What is normal use of the product? : For general drinking, as whitener for coffee,tea and flavored milk, to make dahi, yoghurtand buttermilk etc.2. Who will consume the food? : People of all ages3. Is the food intended for high risk : Nopopulation?4. Is the intended for retail or food : Bothservice?5. Is the food required to be transported : Yes, Preferably transported under insultedunder ambient, insulted or refrigerated condition.refrigerated condition.6. Is the food held refrigerated / frozen / : Hot or cold as preferred by the user.Hot before consumption
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 21Masala Butter milk Production:1.Collection of curd in cans5.Addition of salt6.Receipt of rawmasala item7.Clearing3.Collection ofpasteurizedchilled water incans4.Addition to mixingvessel2.Mixing tee vesselusing plungees8.Grinding of masalaitems10.Filtration9.Adding the masalaItem in mixing vessel11.Transferring tobalance tank12.Receipt and feedingof film13.Packing14.Pilling into crates15.Transferring to coldstore16.Storage17.Dispatch
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 22C) GheeA taste of purity, Nandini Ghee made from pure butter. It is fresh and pure with adelicious flavor. Hygienically manufactured and packed in a special pack to retain thegoodness of pure ghee.Available in 200 ml, 500 ml, 1000ml packs & 15 kg tins.Maximum Retail Price Rs 56.00, Rs 137.00, Rs 270.00, Rs 4425.00 RespectivelyProduct Description of ghee1. Product Name : Ghee2. How it is to be used : Directly or indirectly as a Cooking or flavoringmedium in food preparation.3. Packaging : Packed in multiplayer co Extruded film (foodgrade) In different pack size (200ml, 500ml &1000ml) and in bulk lacquered Tin containers.4. Shelf Life : Six months from date of packing at roomtemperature when stored in cool & dry place.5. Where it will be sold : At all provision stores, at Nandini retail points &wholesale dealers6. Labeling Instructions : Best before six months from the date of packingwhen stored in cool and Cool and dry place.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 23Intended Use1. What is normal use of the product? : As a cooking and flavoringmedium..2. Who will consume the food? : All type of people.3. Is the food intended for high risk population? : No4. Is the food intended for retail or food service? : Both5. Is the food required to be transported under : Ambient onlyambiant insulated or refrigerated conditions.6 .Is the food held refrigerated/ frozen/ : NoHot before consumption
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 24Ghee Production:1.Collection ofcream incream storagetank2.Pumping through creamchiller3.Collection of creamin butter4.Curing5.Collection of butter introlley6.Collection ofbuttermilk in cans8.Transferring into buttermelting vat7.Draining of sourbutter9.Collection of meltedbutter in ghee11.Holding 10-15minutes10.Cooking of butter fat(118-120) deg12.Cooking to 17-80 degree13.Collecting in ghee settlingtank14.Cooling & settling of ghee15.Collection of ghee inbalance tank16.Receipt of film/ tins/corton17.Packing at 40-45 deg c18.Online loading19.Storage20.Dispatch
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 25D) PedaNandini Peda made from pure Milk.Available in 100 gms & 250 gms packs.Maximum Retail Price Rs 32.00 & Rs 70.00 RespectivelyProduct Description of peda:1. Product Name : Peda2. How it is to be used : As a sweetmeat3. Packaging : Butter paper liner in cartonPacking (250g)4. Shelf life : 8 days from date of packing at ambianttemperature.5. Where it will be sold : At nandini parlors, nindini retailstores, wholesale dealer.6. Labelling instructions : best before within 8 days fromdate of packing, milk basedhighly perishable7. Is special distribution control : NoNeeded8. Product specification : Internal
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 26Intended use1. What is normal use of the product? : Direct consumption as Sweet2. Who will consume the food? : Everybody3 Is the food intended for high risk Population? : No4 The food intended for retail or food Service? : Both5 Is the food required to be transported under : Ambient.ambient, insulated or refrigerated Conditions.6 Is the food held refrigerated/ frozen/ : No.Hot before consumption
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 27Peda Production:1.Collectionof rawmilk in cans2.Dumping the milkIn to Khova pan4.Receipt of Sugar3.Evoperation5.Addition of sugar6.Transferring theproduction7.cooling8.Working & dyeing10.Packing11.Stamping9.Receipt of Packingmaterial12.Storage13.Dispatch
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 285. McKINSEY’s 7’s ModelThe 7-Ss areStructureShared ValuesSystemStyleStaffSkills, andStrategyMc Kinsey‟s 7-s framework was developed in the late 7‟s by Mc Kinsey companya reputed management consultancy firm in the United States.The framework rest on the proposition that effective organizational change is bestunderstood in terms of the complex relationship between strategy, structure, systems,style, skills, staff and shared values(or super ordinates goals)- the 7S‟s.Hard’sSoft’s
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 29Organization Structure of TUMUL:
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 30 StructureThe way the organization is structured and who reports to whom. The mostimportant resource of organization is its people, how they are organized is crucial to itsfunctioning and accomplishing successful implementation of its strategy.In simple structure is a pattern in which various parts or components are inter-related and inter-connected. So organization structure is a pattern of relationships amongvarious activities and positions, The structure defines the relationships among people inthe organization.Each division is responsible for its marketing of milk products and relatedactivities and up to an extent they are responsible for maintaining accounts of theirincome and expenditure. StrategyThe integrated vision and direction of the company, as well as the manner inwhich it derives, articulates, communicates and implements that vision and direction.Tumkur Milk Union Ltd. will endeavor to become learning and knowledge basedorganization. The company will establish itself as a preferred supplier of milk bydelighting the customers with its products and services.Cost Minimisation:The company is striving to become one of the most cost competitive plants in theindustry and generate wealth to serve its shareholders, the surrounding community andthe nation. By establishing 4 chilling centers it‟s cutting the cost of transportation.Consistent with the purpose of improving the quality of life in India through leadership insectors of national economic significance, Tumkur Milk Union Limited will strive to leadthe milk producer industry. This shall be achieved through high productivity; continuousimprovement and technological break-through. Tumkur milk Union Ltd would endeavorto return to society what it earns by creating a difference in the lives of people in itsimmediate surroundings.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 31Focus:The main focus of Tumul is to provide more money per liter to it‟s memberfarmers through higher productivity. It also takes care of their cattle breeds and for thatreason there are AI centers and veterinary hospitals.Differenciation:Tumkur Milk Union is committed to supply safe Milk & Milk Products to the satisfactionof customers by:Complying with statutory and regulatory requirementsConstant communication with all parties involved in the food chainAdopting GHP, GMP & HACCPAdopting scientific processing methodsProviding appropriate training to employeesThis commitment is supported by measurable objectives and brings about continualimprovement. SystemThe decision making system within the organization can range from managementinstitution, to structured computer system to complex aspects of systems and artificialintelligence. It includes Computer system Operational systems HR systemsThe process and flow that shows how the organization get things done from dayto day activities. Systems cover formal and informal procedure that governs every dayactivities covering everything from management point of contact with the customer.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 32 Shared valuesThese are called “super ordinate goals” when the model was first developed.These are the core values of the company that are evidenced in the corporate culture andgeneral work ethics.Shared values mean that the employees share the same guiding values. Values arethings that you would strive for even if they were demonstrably not profitable.Values:The following are the values bound by TUMUL-1. Honesty2. sincerity3. discipline4. quality5. faith6. impartiality7. cost consciousness and transparencyThe employees of Tumul are working according to the values of the company.They are punctual to the work. Coordinating with other departments and maintaininghygiene near the procurement, production, packaging and products departments. StyleStyle refers to the employees shared and common way of thinking and behavingunwritten norms of behavior and thought: Leadership Style Organizational CultureHere style implies the leadership approach of top management and the company‟semployee‟s way of thinking and behaving. The style is the tangible evidence of what
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 33management considers important, the way it collectively spends time and attendance anduses symbolic behavior.In tumul even though the leadership style is centralized the respective authoritiesand responsibilities have been given to the respective department managers and deputymanagers. This helps them to take on time decisions which may not require the nod ofMD at that moment only. SkillsA skill refers to the fact that employees have the skills needed to carry out thecompany‟s strategy. Training and Development ensuring people know how to do theirjobs and stay up to date with the latest techniques.Skills have been classified into Conceptual skills, Technical skills andinterpersonal skills by Mintzberg.TUMKUR Union Limited is committed to upgrade the skills and knowledge of itsworkforce for developing all employees into knowledge workers. In order to achieve thisThe company will strives to Provide both „on the job‟ training to its employees Prepare and implement a training plan based on identified training needs todevelop employees as better human beings.Technical skills:Technical skills which are required to do the job in Tumul are to have thoroughknowledge of computers and the softwares used in the respective departments. Thesoftwares which are used in Tumul are Delta Information Systems, Mysore. Website iscreated by Cyrus solution, Banalore. Respective departments need specific qualifiedcandidates like quality control department hires the candidates who have Bscbackground, MIS takes MCA and MBA holders, Production department has BE in IEMbackground candidates in the top positions.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 34Various training programmes such as CMP Training, MCM training, President training,AI Single & Cluster, AMCU, First Aid, Secretary, Tester training & P.D training arebeing arranged from time to time to enhance work efficiency. The officers of the unionare also being trained in different disciplines. So here according to department wisetechnical training is needed to the freshers so that they can be successful in their jobs.Interpersonal Skills:There is HR department in the administration section. Here they inspire the employees togo for more productivity by providing them few allowances like shift allowance, medicalreimbursement facilities and promotions based on their seniority and experience. If anyconflict arises between then the deputy HR manager would take the complaints of boththe parties and the problem will be tackled formally. There is no room for indecent acts.Conceptual Skills:Manging Director is at the top of the hierarchy. So the final decisions are made byhim like sanctioning new schemes to farmers and finalising the tenders. If the decisionsare related to particular departments then they can be taken by the respective departmentdeputy managers. But for major decisions they would call MD through telephone andtake his nod.Experience in respective department counts while managers take the decisions. Sohere the managers are continuously striving for knowledge. StaffStaff means that the company has hired able people, trained them well andassigned them to the right jobs. Here in TUMUL there are 360 permanent employees.Selection, training, reward and recognition, retention, motivation and assignment toappropriate work are all key issues. All these employees are striving hard to contributethe organizational development at Tumul and achieving at the individual level.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 356. FUNCTIONAL DEPARTMENTS6.1 FINANCETUMUL is one of the 4 dairies initially started by KDDC. This diary wasestablished with initial investment of RS 4,63,22,360 borrowed as loan from NDDB asIDA loan. The fund given by NBBD has generated from world bank and it has beengiven loan from government of Karnataka or guarantors.The funds given by NDDB as IDA loan was used for the construction of diary,installation of commission of plant, machineries, equipment in the diary.Functions of Finance Department:1. Preparation of budget for integrating business plan with MIS section.2. Maintaining related accounts for milk purchase.3. Preparing and arranging payment for MPCS.4. Arranging scrutiny of marketing records relating to sale of milk and milk product.5. Arranging for writing of payment for different materials purchases.6. Arranging remittances of taxes.7. Preparation of payrolls of time milk union.8. Arranging writing different books relating to salary recoveries.9. Preparation of monthly financial accounts receipts and payments accounts trading andbalance sheet.10. Submission of accounts to board.11. Arranging statutory audit of accounting.ACQUISITION OF FUNDS:Once when the requirement of funds is identified, those funds should be acquired.The funds of TUMUL include reserves and surplus and share capital, TUMUL issuesonly equity shares, as it is a co-operative society. It owes 756.04 lakhs shares capital fromits 899 socities.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 36ALLOCATION OF FUNDS:The function of providing of funds to the proper place at proper time is alsoimportant. The finance manager should do this task. Planning for funds is a carefulestimate made by the manager about the total funds required by the union, which includeboth fixed and working capital requirements. It is done by a keen observation over thediary, as TUMUL deals with milk and milk products; the working capital requirement inTUMUL is more before allocating the funds to the various activities the finance managerstudies the requirement of each department and then the funds are distributed.INVESTMEMT DECISIONS:Investment decision comprises the investment in capital and assets. Theinvestment decisions are made by the KMF. Investment in current assets is based on theinventory and credit proposals pursued by TUMUL and by studying the requirement ofworking capital.TRANSACTION PROCESSThe payment are made to primary co operative societies on quality parameter i.e.rate fixed for and SNF of milk is to MPCS, once in a week. The payment is madethorough district central co operative bank and branches which credits money to accountof each of MPCS.For milk sold in Tumkur throughout agents, cash collection are made in cash andremitted to diary, sales realization are collection through checks in Bangalore area andremitted to bank.All purchases are accounted in main diary and inventory control is an existence.They are controlled, registered in maintain one of accounts section pertain to paymentmade under different heads.MAINTENANCE OF BOOKS OF ACCOUNTS:The finance department does costing in TUMUL itself. Thought the financedepartment maintains cost accounts, the prices of the product of TUMUL are fixed byKMF. Each and every transaction that takes place in the diary has to be recorded properlyfor the purpose of having better control over the funds and for optimal utilization offunds. All the transactions are recorded in journals and then posted into ledgers.All transactions are recorded in cashbooks also and maintained in tally package,general ledgers. All sales transactions, pay bills are computerized.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 37AUDITING:There are two types of are done in TUMUL,1. Internal audit.2. Statutory audit.1. Internal audit: The union has system of per audit conducted by team of charteredaccountants. This makes day to day internal audit books of accounts in all financialactivities of diary.2. Statutory audit: the statutory audit of union is done by government department anddepartment of co operative society‟s audit. For this purpose an assistant director deputedby department of co operative audit under rule 441 to milk union.FINANCE DEPARTMENT STRUCTURE:Deputy managerAccounting officerSupervisorsClerical staff
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 38TRADING ACCOUNT FOR THE YEAR ENDING 31.3.2010(1-4-2009 TO 31.3.2010)SLNOPARTICULARS(PURCHEASE)AMOUNTIN RSSLNOPARTICULARS AMOUNTIN RS1234567Opening stockPurchase of milk &milk productCattle feed& othersProcurement &technical servicesPacking materialsProcessingmanufacture,maintenance expSelling &distribution expGross profit3,31,93,446.651,46,69,54,597.9032,65,33,235.555,38,92,316.263,55,92,504.5914,11,11,557.585,35,84,865.669,05,70,559.252,20,14,33,083.441234Sales of milk & milkproductsCattle feed & otherValue added tax(VAT)Closing stock1,82,22,92,004.5632,91,77,621.061,95,09,264.163,04,54,193.662,20,14,33,083.44
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 39PROFIT & LOSS ACCOUNTS FOR YEAR ENDING 31.3.2010 (1.4.2009 TO31.3.2010)SLNOPARTICULAS(LOSS)AMOUNTIN RSSLNOPARTICULAS(PROFIT)AMOUNTIN RSI23456789Veterinary & technicalServices.Staff expensesAdministrativeexpensesTaxesPerspective planexpensesInterestDepreciationProfit before incometaxProvision for incometaxNet profit1,74,91,909.454,57,55,010.1717,43,80,408.703,99,512.004,12,003.6214,52,971.0086,25,843.552,59,06,319.3021,91,981.001,87,14,338.3011,74,81,977.7912Gross profitOther income9,05,70,559.252,69,11,418.5411,74,81,977.79
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 40BALANCE SHEET AS ON 31.3.2010 (1.4.2009 TO 31.3.2010)SLNOLIABILITES AMOUNTIN RSSINOASSETS AMOUNTSIN RS12345678910111213AUTHORISEDSHARE CAPITALPaid up share capitalReserves and generalsOthers fundDepositsLoansGrants &subsidesOthers liabilitiesSundry creditorsAudit objectionProvision formisappropriationOutstanding liabilitiesProfit for the year2009-201010,00,00,00,0008,39,62,300.001,77,32,295.8510,60,74,928.391,08,66,196.702,40,26,840.754,32,04,548.304,86,57,515.8775,37,282.2660,445.601,14,498.801,29,12,178.801,87,14,338.3037,38,63,008.821234567891011Cash in handCash in bankInvestmentsDepositsLoans & advanceSundry debtorsOther assetsFixed &floating assetsAudit objectionRecovery from sri.Devaji rao(misappropriation)Closing stock7,50,392.4065,16,19,884.7953,86,600.002,08,56,002.005,33,07,769.553,34,52,875.7526,96,577.9516,16,21,668.3260,445.601,14,498.803,04,54,193.6637,38,63,008.82
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 416.2 MANAGEMENT INFORMATION SYSTEMFirst of all, let us look into three elements of MIS.MANAGEMENTWhat is Management?It is an administration in an institution or Government in a state or in a country oran Executive in an Industry.To achieve the desired results, we make supervisions step by step. There aredifferent ways to manage or carry out the work. The success ways to manage or to handlethe situation is nothing but management.The examples of Managements are: Personal Management Production Management Inventory ManagementThe management can be classified into three categories: Top Management Middle Management Operating ManagementINFORMATIONInformation is the valuable commodity required by the management in order to plan andcontrol its operations effectively.Information is considered as a significant resource in the process of decision makingeffectively.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 42SYSTEMThe third element of MIS is System.What do you mean by System?Everybody talks of System. If things go wrong we blame the System. Then what isSystem?The element of System is very well defined by Webster Dictionary. It says that it is set ofarrangements or things so correlated or connected to form a unit or organization.System is a set of elements working together to achieve common objectives.Eg. Audit, Traffic System.Many examples could be givenEg. Solar System, Blood Circulation System.The broader definition would indicate that the system is a method of doing thingslogically and in orderly fashion expecting results with minimum efforts.Objectives of MIS To get information / data in time. To get information / data in a proper Performa. To analyze the information. To furnish the information to management to take decisions on time.Types of Information:1. Structural Information2. Descriptive InformationThe Structural Information consists of data and statements.The Descriptive Information is remarks.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 43Information helps in-Acquiring the data- To process the data- To maintain recordsFLOW OF INFORMATIONThe Lowest Level of Management is Operating Management is confined to day to daywork. They are supposed to implement the decisions already taken.The Second Level is Middle Management. It will supervise the implementation andprovides major links and feedback the management.The Top Management would confine itself in formulating various policies and takingdecisions to keep its position in the field.Top ManagementMiddle ManagementOperatingManagement
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 44Role of MIS in Decision Making Speed Accuracy Reliability Security Timeliness UnderstandabilityBetter InformationBetter Decisions.Less Decision Making Efforts.Improved Customer Service.Improves Confidence.Role of MIS in Tumkur Dairy To collect the information- Daily / Weekly / Monthly. To furnish monthly reports to- KMF / NDDB / Others. To furnish monthly information to Board for Decision Making. Computer related works.Milk Billing / Sales Accounting / Pay Roll / GIS / IDIS. Annual Budgeting-Integrated Business Plan Project Works. Monthly Variance Analysis. Review of Perspective Targets. To guide students for Project Reports.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 456.3 HUMAN RESOURCE MANAGEMENTHuman resource management is a management function that helps a manager torecruit, select, train & develop members of organization. It mainly concerned with thepeople dimensions in organizationTUMUL has a very efficient HR-department also known as “AdministrativeDepartment” the activities are very limited. But this department carries out its functioneffectively & maintains good employee & employer relations.FUNCTIONS:1. Recruitment of candidates.2. Selection of best suited and right person.3. Training and development of employees.4. Framing of rules.5. Creating a good working environment.6. Motivating the employees to work hard7. Maximizing the performance of employees8. Maintenance of records.9. Maintenance of industrial relations.10. Employee service & benefits.11. Compensation.12. Personnel audit.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 46HR PRACTICES OF TUMUL:The following are hr practices of TUMUL1. House rent allowance:- the allowance is provided to all permanent employees atthe rate of 7.5% of salary2. Conveyance allowance:- company provide conveyance facility to its employeesfrom the place of residence to the place of work. TUMUL also provide these allowancebecause it is situated 11 KM away from Tumkur. Conveyance allowance of 125/monthfor person owing scooter/ motor cycle, RS65 for moped where as RS 35 for others will begiven.3. Shift allowance:-It is an allowance given to employees who work in shifts(exceptgeneral shift)Shift allowance should not be taken into account for the purpose ofcalculating P F ,bonus etc4. Provident &pension Fund:- This contribution is equal to that of employeecontribution 12% of salary & it is divided between provident & pension fund as 8.33%and 3.67% respectively the total accumulated is balanced in the individual PF accountand is paid to employee at the time of his retirement or on is leaving the service. In theevent of death of the employee accumulated balance is paid to legal hire.5. Gratuity:- The amount of gratuity payable in generally 15 day average salary peryear. For this purpose salary includes only basic and PA6. GSLIS:-“Group Saving Linked Insurance Scheme”a) Death relief fund:- The company is following fund according to the Govtdeclarations.7. Leave facilities:- All permanent employees will be given leave facilities asmentioned belowa) earned leave -30 days /year
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 47b) casual leave- 15 days/yearc) committed /half day – 10day/yeard) government holiday as per KCSR8. Medical reimbursement:- The work man not covered under ESI will be eligiblefor medical reimbursement of Rs 5000 for inpatient and Rs 2400 for out patient9. Handicap allowance:- Every disabled person gets 200/month10.Washing allowance:- Washing allowance is also provided by TUMULto eachemployee of Rs. 30. It will not be taken into account for the purpose of PF calculation PFbonus ESI and gratuity.11. Salary advance:- Workmen will be provided to avail this facility 7 times in ayear. The entire allowance amount will be deducted from the salary of the month inwhich advance is paid.The other HRM practices practiced in TUMUL are as under:1. Canteen facility2. Festival advance3. Emergency and medical loan facility4. Employment opportunity5. Long service award hospitalization6. Cold storage allowance7. Employee state insurance8. Heat allowance9. Trip allowance10. Overtime allowance
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 4812. PromotionPromotion for the employee is given on seniority basis. For promotion, individualemployee should have a minimum working experience of 8 years in a particulardepartment. ie 5 years.13. Trade union. There are two recognized trade unions. It‟s formed by workers for legal issue1. Dairy Employee Trade Union(DETU)2. TUMUL Employee Trade Unions
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 496.4 MARKETINGMarketing department is the analysis, planning, implementing and controlling ofprograms designed to bring about direct exchange of goods and money with target marketneeds and using effective promotional activities to improve sales and attain the desiredprofit.TUMUL (Tumkur Milk Union Limited) has a very able marketing department. Ithas a very efficient staff and well-trained Staff. They carry out the marketing activitiesvery well and try to reach the desired goals Within a specified time period.Departmental hierarchy:Marketing department comprises of departmental head and, further divided into twocategories and further into officers, then to superintends, salesman and dispatchers.The hierarchy is as follows -Development officer Routine officersMarketing officer Sales personnelRoute inspectors SupervisorsInspectorsSales menDispatchers
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 50Functions1. Collection indent form retailer session wise.2. Preparation of distribution sheet.3. Preparation of indent for production.4. Awarding of distribution contract.5. Distribution of Milk and Milk product.6. Appointment/cancellation of retailer ship.7. Redressel of customer complaints.8. Product Movement.9. Appointment of retailers.10. Development activities.Purchase of Milk From:Villages: 2400Societies: 3,20,000 litres of Milk will purchase per day.Five variants of Milk:1. Toned Milk2. Full cream Milk3. Homogenized cow Milk4. Homogenized cow toned Milk5. Standardized Milk
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 51Total curds sales TUMUL Per day: 13,500kgsTotal Milk sales TUMUL per day: 1,43,000ltrsChannels of Distribution:42 Distribution vehicles are there.40 are Insulated vehicles2 are Refrigerated vehicles13 Milk unions all over Karnataka:1. Bangalore Dairy 7. Shimoga2. Mother Dairy 8. Bellary3. Mandya 9. Belgaum4. Mysore 10. Dharvad5. Kolar 11. Mangalore6. Tumkur 12. Gulbarga13. Hassan
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 52Commission to the Retailers is as follows:Toned milk Rs.0.56 per litreGhee Rs.20.91 per litreCurds Rs. 1.50 per litrePeda Rs. 23.56 per litreMasala butter milk Rs. 0.50 per litreTUMULWHOLE SELLERSRETAILERSCONSUMERS SHOPS SHOPSCONSUMERS
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 53Major competitors:The major competitors of TUMUL are the loose milk vendors, but the other brands are:-ArogyaDodlaJersyAgrigoldTirumalaThe private brands are promoting these products through major advertising, more retailmargins, etc.Promotional Activities:1. Door to door campaigning: this is done through the sales force team byquestioning the consumer, reasoning them, mailing brochures etc. this is carried onperiodically.2. Organizing meetings: meetings on important public places and inviting importantpeople like doctor, professional, government officer‟s etc.3. Visit to mahila mandals: visiting to mahila mandals and creating awareness aboutthe product and its benefits, inviting them to the plant and shows them the production.4. Visit of school children to the dairy and promoting their products through them byissuing samples.5. Inviting the consumer forum and creating awareness to them.6. Participating in trade shows, exhibition and educate people.7. Through advertising in major media like T.V, newspapers, hoardings.8. It sells its product under the brand name “Nandini”.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 546.5 QUALITY CONTROLQuality Control department in the dairy industry Aims at confirming quality inputfrom societies and also bulk receipts from chilling centers. Here primarily the specificgravity (density) of milk- as CLR and percentage of fat are tested and relatively SNF isread from the chart made out using the formula CLR/4+0.25*Fat%+Constant fat 0.35.The basic requirement of milk is 3.5% fat and 8.5% SNF (Solid Not Fat)Process of checking the quality of milk:The milk coming from cooperative societies in various routes reaches in lorries ofvarious capacities likewise by tankers from chilling centers. First the milk which ispresent in the cans in checked normally by a skilled person so that they can make surethat there is nothing bad in the milk. After that the sample of each society /is taken in thesample bottles.Specific Gravity:The coded milk samples specific gravity is measured as CLR( CalibratedLactometer Reading) as per ISI the specific gravity of milk is to be volumetrically testedat 27 dg C. Hence samples temperature is adjusted and lactometer float in milk is taken asreading when it is put to the jar. The specific gravity of milk is over and above waterwhich is 1.0 hence the relative reading of Lactometer is taken as 1.0+28/28.5/29 anddenoted as 1.028/ 1.0285/ 1.0290. More thicker the milk the reading will be more or viceversa.Electro Milk Tester (EMT)After knowing the density the milk sample is fed to Electronic Milko Tester byfollowing the standard estimation method. After this the EMT machine will display thefat percentage of that milk sample. Based on fat display and obtained CLR, SNFpercentage is read from the chart which is a ready reckoner available with the testingplatform. These results of quality will form basis for effecting payment to the societysupplying milk.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 556.6 PRODUCTIONIn TUMUL milk union is mainly concerned with production of milk and other byproduct such as cured, better milk, ghee, peda and butter. The products of other byproduct are taken care by a separate department known as product department andproduction of milk and cream is taken by production department.ORGANIZATION CHART OF PRODUCTION DEPARTEMENTDEPUTYMANAGERHelperSupervisorsOfficersAssistantmanagerTechnicians
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 56OBJECTIVES OF PRODUCTION DEPARTMENTProduction is an organized activity in a manufacturing organization. Eachorganized activity must spell out its objectives so that its existence can be justified. Onthe basis of the edger of attainment of this objectives. More over such identification ofthe objective increases the consciousness of the personnel working in the respective workthe started objectives of the organization.The primary responsibility of manufacturing activity is to produce a product orproducts at:1) Pre-established cost2) According to the specified quality3) Within stipulated time scheduleFUNCTIONS1) Procurement of raw milk2) Maintain and produce the standard quality products3) Cost of productionTypes of products produced1) Milk2) Peda3) Ghee4) Butter milk.5) Curd.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 577. SWOT ANALYSISENVIRONMENTAL SCANInternal Analysis External AnalysisStrengths Weakness Opportunities ThreatsSWOT MatrixSWOT analysis is the tool for auditing an organization & its environment. It is thefirst stage of planning & helps markets to focus on key issues. Once key issues have beenidentified, they feed into marketing objectives. It can be used in conjunction with othertools of audit and analysis.“SWOT” stands for strengths, weakness, opportunities and threats. Strengths andWeakness are within the company where as opportunities and threats are external factors.Strengths: Strengths are its resources & capabilities that can be used as a basis fordeveloping competitive advantage. It means the power of the organization to utilize theavailable resources in maximum extent to achieve the goals of an organization. Thepower may be in the form of finance, HR, place, ownership etc.Weaknesses: Attributes of the person or company those are harmful to achieving theobjectives.Opportunities: External Conditions those are helpful to achieving the objectivesThreats: External Conditions which could do damage to the objectives.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 587.1 STRENGTHS:1) A high processing infrastructure.a) Dairy plant with a capacity of 3,73,000 kgs per day.b) Facilities to manufacture ghee, curd, peda, butter, butter milk2) Brand support of NINDINI by KMF, this brand image is well established in the market.3) TUMUL enjoys a strong customer based in their domestic market they have capturedalmost 55% of market share in the domestic market.4) Technological support from NDDB each and every development stages of theorganization.5) The organization is capable of meeting the large demand, which cannot be met by anyother sources.6) Large network of organized suppliers for the procurement of milk.7) It has an automated production process, which helps them to reduce the cost ofproduction per unit.8) The organization won market monopoly.9) There are no giant competitors.10) TUMUL has a strong customer base.7.2 WEAKNESSES:1) Lack of well experienced engineering personnel. All superior posts in all the departmentsare filled through promotions.2) Longer distribution routes and retailers points, it can cause delay in production,distribution3) Tight overhead cost.4) Centralized decision making is the burning problem in the organization since it takes verymuch of time, due to lack of co operation between different departments.7.3 OPPORTUNITIES:1) The market potential is large so that there is ample scope for improvement of sales.2) Opportunity to introduce product range.3) Large area of land is available for different activates.4) Increase the level of customer awareness.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 597.4 THREATS:1) Large numbers of competitors are entering into the market.2) Unethical practices of competitors.3) A group of unorganized local vendors can dominate the market.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 608. FINDINGS TUMKUR MILK UNION is a cooperative institution which has the motive of socialservice. It‟s engaged in the production of milk and milk products. TUMUL sells its all products to the Nandini milk parlors and general public forconsumption. The mode of procurement of milk is through the societies formed by the farmers. Usingtankers and vans milk is procured from 899 societies through 84 routes. TUMUL has Production, Quality Control, Human Resources, Marketing, Finance andManagement Information System departments. In the plant portion of the site is under construction to build the infrastructure which isrequired for more procurement and production. The financial statements of TUMUL are prepared in accordance with Companies Act of1956. Annual turnover 2009-2010 was 21982 lakhs as against 18356 lakhs in 2008-2009. Milk sale in 2009-2010 was 144630 liters per day compared to 135331 liters in 2008-2009. There is also work of construction going on of Canteen and Vighneshwara temple for thebetterment of the employees. Daily reports which are prepared by all the departments should be signed by theManaging Director as he is the head of this plant. In Tumkur milk union economic position of the respondents is good compared to anyother company through these employees having only qualification, their workingknowledge is very good. Recruitment news will be published in the local and other Kannada newspapers. Selection of the qualified employees will be done by the HR manager and MD of Tumul. New quality incentive of 10 paise per Kg of milk to Society staff has been brought in2010. Nandini Shubam Milk containing 4.5% Fat & 8.5% SNF released to the market fromMay 2011 Promotion for the employee is given on seniority basis. For promotion, individualemployee should have a minimum working experience of 8 years in a particulardepartment.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 619. SUGGESTIONSPromotional activities: The organization has to promote their products throughpromotional activities like more advertisement of the products in different ways.Competitors: TUMUL is facing with some other brands like Arogya, Swastik,Heritage etc, in order to avoid the competition, it may put more effort in creatingawareness among the customers and design or develop appropriate promotionalstrategies.Quality of milk and packaging: As quality plays an important role any amount ofmarketing effort is of waste if the product is not of satisfactory quality. Hence the unionhas to aim at reducing the time gap between the procurement and distribution.Public relation: The public relations can be increased by the organization this can bedone by visiting the customers along with the agents within their territory there bydeveloping healthy relations.Consumer awareness program: The customer awareness program can beconducted by the organization.Transportation: The tender allocation may be done to the responsible transportationagents/services. And the delivery staff has to be trained to behave like salesman, becausethey are the representatives of the union.Refrigeration facility: It has been studied that there is demand for milk throughoutthe day hence some of the agents (not all) have purchased a refrigerator at their own costand sell the milk at an extra cost and this is also loss to the customer. Hence the providerefrigerator facility to the agent at subsidized rates.Crates: The crates should be kept clean and they should be immediately replaced incase of damage, because the damaged crates are prior to results in damaged pouches ofmilk. Therefore effective supervision is necessary through the line from processing tilldelivery.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 6210. CONCLUSIONTo conclude, milk and milk products are the main daily necessities of human lifefor all age group. From the study it is revealed that NANDINI is the only branded milkoperating with no union jurisdiction. The union has not gained considerable market share.Since it is in co-operative sector the union works in the interest of producers andconsumers. Their main motive is the welfare of the farmer members.The organization has to give importance to agents who are going to play keenly inpushing the Nandini products. Hence the organization has to undertake the salespromotion activities for motivating the agents as well as consumer to push the productshard in the market.In today‟s competitive world though many unorganized sectors have emerged, stillTUMUL‟S NINDINI milk and milk products are unique.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 6311. LEARNING EXPERIENCE It is a great experience at TUMUL where we learnt many things about thefunctioning of the company in accordance with the present market trends. We being the students of MBA were exposed to working environment. We saw the coordination between the juniors and seniors. How juniors weregiving respect to the seniors. Even though at computer work new entrants aremore faster they used to take the guidance of their superiors. It shows thatexperience matters. Since TUMUL is an organization which produces edible food hygiene is rightlymaintained. So it helped me to learn why different organizations have differentpolicies of maintenance. We came to know how management maintains relationship with workers, howthey handle grievances. We came to know how to interact with the people of theorganization This helped in developing our knowledge & it gave a practical experience ofthe industrial scenario in the competitive environment outside the realms of theinstitute. Also understood that only through team work, every work could becompleted and mission can be accomplished. Journals and ledgers were treated important in this organization also becausethere are the basis for any transaction which have been occurred. So got toknow why we had these chapters in our fundamentals of accounting. TUMUL has given more important to the customer satisfaction. By this wehave learned the strategies to be adopted for customer satisfaction. We observed the working technologies, management process, hierarchicalrelationships among the employees and practices of organization like training,safety and welfare etc... We have studied the traits and qualities essential for executives and managemotivation, leadership, understanding the needs of subordinates. We studiedabout human resource skills, which indicate ability to deal with subordinate in ahuman approach to their problems, develop personnel support and team spirit.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 64 Amiable relations between the various departments make it possible forTUMUL to optimize its functioning. Self managing, thinking and ability toadjust to new environment have enhanced. We also came to know about theimportance of training and development which will help an employee for theircareer building and self development. Thus internship training has honed personal attitude like skills, talent, abilitiesand attitude etc…which would guide us in contribution to Nation by workingefficiently in organization which fosters top performance.
TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITEDCANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 6512. BIBLIOGRAPHYA. Booksa. V.S. Ramaswamy & S.N. Namakumari, Marketing Management,Macmillan PublishingIndia Ltd, Fourth Edition:2009b. Dr. K. Ashwathappa, Production Operation Management, Himalaya Publishing House,First Edition: 2008c. P. Subba Rao, Human Resource Management, Himalaya Publishing House, First Edition:2008B. WEBSITEwww.tumulcoop.comwww.kmfnandini.coopC. News paperBusiness Times, Business WorldD. ReportCompany Annual Report