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The study explains AMUL operations in their facility at Anand with the unique AMUL – ANAND Pattern in detail. ...

The study explains AMUL operations in their facility at Anand with the unique AMUL – ANAND Pattern in detail.

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  • 1. PROJECT REPORT ONSTUDY OF WORKFLOW AT KDCMPUL, ANAND FOR AMUL DURATION (13 July to 22 July 2011) Submitted By – SANKET S. PRABHU Submitted To – Mr. JIGNESH BHOI ACADEMIC YEAR 2011-12. 0
  • 2. PREFACE I got opportunity for training in AMUL, I feel lucky to get a chance to work with such areputed company which can upgrade my knowledge related to practical aspects of businessworld and which is very helpful for my bright future. Whatever I have learnt during my training period, I have tried to present in systematicmanner. I have tried to explain the process flow of each of the departments viz Societies,Purchase, Production, Stores, FPS, Commercial & I have explained the interactions betweenthem. I have tried to portray role on GCMMF in these departments. I have limited my study towork flow and process that are followed at AMUL plant at Anand. The information provided is derived with professional guidance from people from variousdepartments in the plant. 1
  • 3. ACKNOWLEDGEMENT First of all my special thanks to Mr. JIGNESH BHOI for giving me an opportunity to getpractical knowledge of an Industry. I am very thankful to ANAND MILK UNION LTD for giving permission of trainingproject in their organization. Grateful to all the people of the company who helped me directly or indirectly during mytraining period, who shared their practical knowledge and their valuable time, without theirsupport and guidance my training would not have been a success.Regards,SANKET S. PRABHU09773577938prabhu.sanket.s@gmail.com 2
  • 4. KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD.ANAND1. HISTORY OF AMUL 52. STAGES OF DEVELOPMENT 73. AMUL LOGO 94. PLANTS OF AMUL , ANAND 105. COMPANY PROFILE 116. MISSION OF AMUL 137. ORGANIZATION STRUCTURE 148. AMUL - ANAND GENERAL PRODUCTION PROCESS 169. AMUL PRODUCTION PLANNING PROCESS – AN OVERVIEW 1910. PURCHASE DEPARTMENT 2011. ACCOUNTS DEPARTMENT 2312. PURCHASE BILL DEPARTMENT 2313. SOCIETIES 2414. RECEIPT DEPARTMENT 2715. PRODUCTION DEPARTMENT 29 AMUL – 3 PROCESS AND RECEPTION LAB 30 AMUL – 2 PROCESS AND MILK POUCH 32 BUTTER SECTION 35 STERILIZED FLAVOURED MILK 37 GHEE SECTION 3916. STORES (FPS – FINISHED PRODUCT STORES) 40 INVENTORY MANAGEMANT AT KDCMPUL – AN INTRODUCTION 43 NATURE OF INVENTORY 43 OBJECTIVES OF INVENTORY MANAGEMENT 44 BENEFITS OF INVENTORY MANAGEMENT 45 INVENTORY CYCLE 45 AMUL STORE DEPARTMENT 46 INVENTORY MANAGEMENT 47 3
  • 5. 17. COMMERCIAL DEPARTMENT 4918. SOME OTHER DEPARTMENTS IN AMUL 5219. CONCLUSION 5420. BIBLIOGRAPHY 54 4
  • 6. HISTORY OF AMULIn the year 1946 the first milk union was established. This union was stated with 250 liters ofmilk per day. In the year 1955 AMUL was established. In the year 1946 the union was known asKAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brandname AMUL in 1955The brand name Amul means ‘’AMULYA’’. This word derived from the Sanskrit word“AMULYA’’ which means “PRICELESS”. A quality control expert in Anand had suggested thebrand name “AMUL”. Amul products have been in use in millions of homes since 1946. AmulButter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading foodbrand in India. (The total sale is Rs.6 billion in 2005). Today Amul is a symbol of many things likeof the high quality products sold at reasonable prices, of the genesis of a vast co-operativenetwork, of the triumph of indigenous technology, of the marketing savvy of a farmers’organization. And have a proven model for dairy development (Generally known as “ANANDPATTERN “).In the early 40’s, the main sources of earning for the farmers of Kaira district were farming andselling of milk. That time there was high demand for milk in Bombay. The main supplier of themilk was Polson dairy limited, which was a privately owned company and held monopoly overthe supply of milk at Bombay from the Kaira district. This system leads to exploitation of poorand illiterates’ farmers by the private traders. The traders used to decide the prices of milk andthe farmers were forced to accept it without uttering a single word.However, when the exploitation became intolerable, the farmers were frustrated. Theycollectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedommovement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union. Instead of supplying milk to private traders, Sardar Patel sent the farmers toShri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting atSamarkha village near Anand, on 4th January 1946. He advised the farmers to form a society forcollection of the milk.These village societies would collect the milk themselves and would decide the prices at whichthey can sell the milk. The district union was also formed to collect the milk from such villageco-operative societies and to sell them. It was also resolved that the Government should beasked to buy milk from the union.However, the govt. did not seem to help farmers by any means. It gave the negative responseby turning down the demand for the milk. To respond to this action of Govt. the farmers ofKaira District went on a milk strike. For 15 whole days not a single drop of milk was sold to thetraders. As a result the Bombay milk scheme was severely affected. The milk commissioner ofBombay then visited Anand to assess the situation. Having seemed the condition, he decided tofulfill the farmers demand. 5
  • 7. Thus their co-operative unions were forced at the village and district level to collect and sellmilk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurienshowed main interest in establishing union who was supported by Shri Tribhovandas Patel wholead the farmers in forming the Co-operative unions at the village level. The Kaira district milkproducers union was thus established in ANAND and was registered formally on 14th December1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonlyresolved to sell the milk under the brand name AMUL.At the initial stage only 250 liters of milk was collected every day. But with the growingawareness of the benefits of the cooperativeness, the collection of milk increased. Today Amulcollect 11 lakes liters of milk every day. Since milk was a perishable commodity it becomesdifficult to preserve milk flora longer period. Besides when the milk was to be collected fromthe far places, there was a fear of spoiling of milk. To overcome this problem the union thoughtout to develop the chilling unit at various junctions, which would collect the milk and could chillit, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centersin various villages. Milk is collected from almost 1073 societies.With the financial help from UNICEF, assistance from the govt. of Newzealand under theColombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter wasplanned. Dr. Rajendra Prasad, the president of India laid the foundation on November 15,1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairyon November 20, 1955. 6
  • 8. STAGES OF DEVELOPMENT:- AMUL is the co-operative union with a slow and steady growth. AMUL had started withone society, now it has almost a union of 1073 societies. The development of AMUL was step bystep. The main stages of Development are as follows:IN 1954:- In this year UNICEF provide the financial help worth Rs.50 million to AMUL. This financialhelp led to establishment fully automatic plant for providing milk and milk powder.IN 1958:- In this year AMUL expanded the plant & started producing Sweetened condensed milk.IN 1960:- The excess supply of milk in the winter season and huge amount of profit madeexpansion possible for AMUL. AMUL established new units for producing cheese and baby food.This created history in the Dairy Products, because it was the initialization where cheese andbaby foods were being produced from the Buffalo Milk.IN 1981:- The new Cattle feed Plant was established at KANJARI.IN 1992:- For getting the benefits of excess supply of milk, Amul established another plant namedAMUL – 3. This plant has capacity of producing 14 lakhs liters of milk daily.In 1994:- The new Cheese Plant was established at KHATRAJ and Chocolate plant was establishedat MOGAR. These two plants started with the help and the aid given by NDDB. 7
  • 9. IN 2001:- For providing the quality milk at any time, AMUL launch the flavored milk. TheseFlavored milk products were available in many different flavors.IN 2003:- For the market expansion the Amul launched “SNOWBALL” pizza and Flavored Lassi.This gave a new market share in the fast food area for the Amul and led to the development ofthe AmulIN 2004:- The Amul keeps on achieving new highs in this competitive world. It has launchedCHOCOZOO (Chocolate), MUNCHTIME (Gathiya). Amul also started the new satellite Dairy atPUNE and KOLKATA. This helped AMUL in expanding milk marketing in other states. 8
  • 10. AMUL LOGO Anand Milk Union Limited - AMUL VISION & LOGOThe main Motto of Amul is to help the farmer. Amul system works under the objective ofhighest possible price to the milk producers and lowest possible price to consumer. Farmers arepaid money in cash payment for the milk. Milk gives them money for daily necessities. Amul isthe one who started using their profit for the milk producers’ common good.Symbol of AMUL is a ring of four hands, which are coordinated each other. The actual meaningof this symbol is Coordination of hand of different people by whom this Union is now at top.First hand is for the Farmer (Producers), without whom the organization would not haveexisted.Second hand is for the Representative of processor by whom the raw milk processed intodifferent finished products.Third hand is for Marketer without whom the product would not have been able to reach tothe customer.Fourth hand is for Customers without whom the organization could not carry on, because theyare the people who consume the product By co-ordination of this four people the Union runsuccessfully. 9
  • 11. PLANTS OF AMUL, ANANDMOGAR PLANTIt is situated on Anand – Vadodara Highway No. 8. Its Production is Chocolates, Nutramul, AmulLite and Amul Ganthia. This plant was established in 1973.ANAND PLANTThe products produced are Milk, Buttermilk, Milk Powder, Butter, Ghee, Flavored Milk etc. Itwas established in 1973.KANJARI PLANTThe product produced is cattle feed Old plant was established in 1964 & new Plant in 1980.KHATRAJ PLANTIt is situated between Nadiad – Mahemdabad. The product manufactured is Cheese.Chilling CenterKapadvanj, Undel and BalasinorSatellite DairyBalasinor, UndelToday, twelve dairies are producing different products under the brand name Amul. TodayAmul dairy is no.1 dairy in Asia and no.2 in the world, which is matter of pride for Gujarat andwhole India. 10
  • 12. COMPANY PROFILEName of the Unit : The Kaira District Co-operative Milk producer’s Union Ltd. Anand, GujaratRegistration date : 14th December 1946 under co-operatives act.Size of Unit : Having the capacity of process 14 lakh liters of milk producing 10 different productsRegistration : Kaira District Co-operative Milk Producers’ Ltd.Office Anand- 388001Bankers : Kaira District Central Co-operative Bank UTI Bank State Bank of India Bank of Baroda Bank of Maharashtra State Bank of Saurashtra Corporation Bank.Auditors : Internal auditors and Government auditorsInitial promoters : Shri Tribhuvandas Patel Shri Morarajibhai Desai 11
  • 13. BOARD OF DIRECTORS:1. Shri Ramsingh P. Parmar Chairman2. Shri Rajendrasinh D. Parmar Vice Chairman3. Shri Shivabhai M. Parmar Member4. Shri Maganbhai G. Zala Member5. Shri Chandubhai M. Parmar Member6. Shri Pravinbhai F. Solanki Member7. Shri Dhirubhai A.Chavda Member8. Shri Bhaijibhia A. Zala Member9. Shri Mansinh K.Chauhan Member10. Shri Bipinbhai M.Joshi Member11. Smt. Madhuben D. Parmar Member12. Smt. Sarayuben B. Patel Member13. Shri Ranjitbhai K. Patel Member Shri B. M. Vyas(M.D. of GCMMF, Anand) Shri Rahulkumar Shrivastav (M.D. of KDCMPUL, Anand) 12
  • 14. MISSION OF AMUL The main mission of Amul is to help farmers. Farmers were the foundation stone ofAmul. The system works only for farmers and for consumers, not for profit. The main aim ofAmul is to provide quality products to the consumers at minimum cost. The goal of Amul is toprovide maximum profit in terms of money to the farmers. QUALITY POLICY We the motivated and dedicated work force at Amul are committed to producewholesome and safe foods of excellent quality to remain market leader through deploymentand quality management system, state-of art, technology, innovation an eco-friendly operationto achieve delight of customers and betterment of milk producers THE ORGANIZATION Co-operative is generally operated not for the profit but for the betterment ofconsumer and products. Their main objective is to serve people of the society with good qualityof product with as much as low price.“AMUL “is the successful Co-operative sector. The brand names itself indicates how AMUL isseparated over the country and world. Amul gets so many awards for its productivity andperformance. Amul is Asia’s no.1 and 2nd in world, which is a matter of proud for India. In ourcountry every one knows what Amul is. This makes the popularity and contribution of the dairyindustry. AMUL is co-operative organization and they also doing social works. They provideemployment to the village people. They also provide health centers and education facilities tothe villagers.Amul has a three level structure. The first level is called primary level. Here village societies areplaced. The second level is district level where NDDB placed and the third level is state levelwhere Federation placed Co-operation among this three level is necessary for achievement ofgoal. 13
  • 15. ORGANIZATION STRUCTURE Board of Directors Shri Ramsinh Parmar Managing Director Shri Rahul KumarAssistant General Manager Manager Deputy Manager Assistant Manager Senior Executive Executive Senior Officer Senior Assistant Assistant 14
  • 16. Workers AMUL ANAND PLANTWORKERS in AMUL DAIRY 969Total No. Of Shifts:There are three shifts.1st Shift Time: 8:30 a.m. to 4:30 p.m.2nd Shift Time: 4:30 p.m. to 12:30 a.m.3rd Shift Time: 12:30 a.m. to 8:30 a.m. 15
  • 17. AMUL - ANAND GENERAL PRODUCTION PROCESS GCMMF AMULACCOUNTS HQDEPARTMENT AUDIT PURCHASE SOCIETIES AUDIT MILK PURCHASE BILL AUDIT RAW MATERIAL STORES AUDIT AMUL2(D) QA QA AMUL-3(A) AUDIT PRODUCTION AUDIT AMUL-2(E) QA BUTTER GHEE FLAV MILK QA AMUL-3(B) AUDIT STORES /FPS AUDIT AMUL-2(F) QA DISPATCH QA AMUL-3(C) AUDIT COMMERCIAL DEPARTMENT GCMMF AMUL DEPOTS DAIRIES 16
  • 18. 1. Section 1: GCMMF HQ /AMUL PCM – Program committee meeting is held at the start of every month, accordingly planning is done. Details are explained (AMUL PRODUCTION PLANNING PROCESS – AN OVERVIEW page-19) GCMMF(Gujarat Co Operative Milk Marketing Federation)/AMUL interacts with each and every department during production process.2. Section 5: PRODUCTION (BUTTER , GHEE ,FLAVORED MILK) /AMUL-2 /AMUL-3 Planned details for each product are sent to respective Production department. Accordingly Production Planning is done for 3 months. Production process details of each product is explained below. (PROUDCTION DEPARTMENT page-29 to 39) Milk is Processed in AMUL-2, AMUL-3 (Details explained in PRODUCTION DEPARTMENT -AMUL-2(E) page-32, AMUL-3(B) page-30)3. Section2: PURCHASE DEPARTMENT Production requires Milk and other raw materials. Milk is procured from Societies (Section3) and raw materials are procured by Purchase Department only. The detailed processes are explained below (PURCHASE DEPARTMENT page-20 to 23)4. Section3: SOCIETIES Milk Procurement is function of societies detailed below. (SOCIETIES page-24 to 26)5. Section4:RAW MATERIAL STORE / AMUL-2 /AMUL-3 Procured raw materials are stored in RAW MATERIAL STORE. (RECEIPT DEPARTMENT/ RAW MATERIALS STORE page-27 -28) Procured Milk is stored in AMUL-2 / AMUL-3. (Details explained in PRODUCTION DEPARTMENT - AMUL-2(D) page-32, AMUL-3(A) page-30) 17
  • 19. 6. Section6: STORES /FPS/DISPATCH DEPARTMENT /AMUL-2/AMUL-3 Finished Products (Butter, Ghee , Powder, Flavored Milk) are stored in FPS (Finished Product Stores) and dispatched from this department only. Details explained in (FINISHED PRODUCT STORES DEPARTMENT page 40 to 42) Processed Milk is stored and dispatched by AMUL-2, AMUL-3.(Details given in PRODUCTION DEPARTMENT - AMUL-2(F) page-34, AMUL-3(C)page-31)7. Section7: AMUL ANAND COMMERCIAL DEPARTMENT All Goods need to be cleared from this department. Pricing is done in this department. (COMMERCIAL DEPARTMENT page 49 to 51)8. GCMMF DEPOTS /AMUL DAIRIES Goods are transported to depots across the country for sale or other AMUL Dairies for internal consumption.9. ACCOUNTS DEPARTMENT. Accounts department interacts with each department since all transaction details are processed by Accounts department. (page 23)10. AUDIT / QUALITY ASSURANCE Audit and QA takes place at every stage.(page 52) 18
  • 20. AMUL PRODUCTION PLANNING PROCESS – AN OVERVIEWGCMMF (Gujarat Co Operative Milk Marketing Federation) is the marketing body of all Unionswho manufacture and sell products under Brand name AMUL. 1. GCMMF according to the market survey and past sales, predicts the sales for the next few months. 2. Accordingly the requirements at several depots (42 approx) spread across the country is decided. 3. PCM – Program committee meeting is held at the start of every month (generally in the first week). 4. GCMMF projects its expected sales in the meeting. 5. The inventory available at each of the plants is taken into account. 6. Taking into consideration Past and Future/Predicted sales, the amount of milk expected to be procured, the total quantity of each product to be produced is roughly determined. 7. Depending on demographics of AMUL Dairies, GCMMF Depots and several other factors quantity of each product to be produced at each respective AMUL dairy is determined. I.e. PD Planned Dispatch is determined for each AMUL Union. 8. Accordingly Production Planning is done for each AMUL dairy. 19
  • 21. PURCHASE DEPARTMENT -Mr. S P DESAIPURCHASE DEPARTMENT PROCESS FLOWCHART PRODUCTION DEPARTMENT ↓ PR (PURCHASE REQUISITION) GIVEN ↓ PR contains Product Code, Quantity, and Delivery Date ↓ PRODUCT SUB DIVIDED IN 3 TYPESNORMAL PRODUCT RAL RATE APPROVAL LIST EMERGENCY PRODUCT ↓ ↓ ↓RFQ -REQUEST FOR QUOTATION GCMMF HAS LIST OF APPROVED PRODCTION DEPT VENDORS HAS EMERGENCY ↓ ↓ ↓ 3-10 PARTIES ↓QUOTATION FROM PARTIES PO IS REALEASED TO THAT VENDOR ICPO IS REALEASED ↓ ↓COMPARATIVE STATEMENT PREPARED INDENT COME PURCHASE ORDER ↓ DIRECTLY UNDER GMAUDIT TAKES PLACE ↓ ↓ ↓CHEAPEST QUOTATIONTHAT MEETS REQUIREMENTSIS SELECTED ↓ ↓ ↓AM APPROVAL FOR PRICE < 5000MD APPROVAL FOR PRICE > 5000 ↓ ↓ ↓ ↓ PO IS CREATED FOR RESP VENDOR ↓ AS PER DELIVERY DATE VENDOR DELIVERS GOODS TO STORES ↓ 20
  • 22. SAMPLES ARE SENT TO QA DEPT  DISAPPROVAL  SENT BACK ↓ APPROVAL ↓ SENT TO PRODUCTION DEPARTMENT DISAPPROVAL SENT BACK ↓ APPROVAL ↓ GOODS RECEIPT NOTES PREPARED  ALL GOOD RECEIVED ↓ PO CLOSED SENT TO ACCOUNTS ↓ CLUBBED WITH INVOICE & TEST APPROVAL REPORT ↓ PAYMENT TO VENDORPURCHASE: There is a centralized purchase system. Purchasing of all the raw materials except thecattle feed is done through this department. Main type of materials are Engineeringmaterials, packaging stationary, veterinary medicine, chemicals, raw material for productionetc. After getting indent from the stores department the purchase order is placed todifferent purchasing systems for obtaining different materials. For packaging material andveterinary medicine, an RAL (Rate Approval Letter) is provided by GCMMF in which rates,quantity, quality etc. are predefined by GCMMFPROCESS 1. Production department/any user can create a PR (Purchase Request) if any raw materials are required for production. 2. PR will be created in SAP ERP system. 3. PR will contain product name ,product code , quantity , and the excepted delivery date. 4. For our convenience we divide the products in three types NORMAL PRODUCT RAL RATE APPROVED LIST EMERGENCY PRODUCT 21
  • 23. 5. NORMAL PRODUCT A. RFQ (Request for quotation) is sent to the vendors B. Quotation is received from the respective vendors. C. Comparative statement of all quotations is prepared by the purchase department. D. Depending on the comparative statement, AM approves the cheapest quotation that meets all specifications, up to rupees 5000.If amount exceeds 5000 MDs approval is required. E. On approval PO purchase order is released.6. RAL -RATE APPROVED LIST A. RAL basically consists of packaging materials and veterinary medicines. B. Vendors for such items is fixed by GCMMF. C. Purchase department directly generates PO for such items.7. EMERGENCY PRODUCT A. Production may require raw materials urgently at times. B. Normal procedure cannot be followed under such circumstances. C. ICPO-Indent cum purchase order is released under GM approval under these conditions.8. PO is released.9. Transporter for the respective vendor has to supply the raw materials on the respective date.10. Goods are received at the stores.11. Samples of the raw materials are sent for Quality Assurance to confirm whether goods meet required specifications.12. On disapproval by QA goods are sent back.13. On approval goods are sent to production department.14. On disapproval by production ( even cleared by QA) goods can be sent back.15. On approval by production GR (Goods Receipt) note is prepared.16. If all goods mentioned in PO are received, PO is closed. 22
  • 24. 17. GR Note, Invoice & Test Report for QA are clubbed together and sent to Accounts department. 18. Payment is made to the vendor.SOME IMPORTANT FUNCTIONS OF PURCHASE DEPARTMENT A. Service Contracts : Service Contracts are also a function of the Purchase department. Dairy Maintenance Contract PEST Contract Boiler Cleaning Contracts Consultancy Contracts B. ARC – Annual Rate Contract are also issued by Purchase Dept to Vendors to get goods from them annually at the same mentioned rate C. AMC – Annual Maintenance Contract are also issued by Purchase Dept for maintenance ACCOUNTS DEPARTMENT The activities performed by this department are cash and bank related activities,societies’ accounts, taxes related accounting, investment receipts and payments, milk cyclerelated activities and data entry. All the accounting transactions performed by differentdepartments like Purchase Department, Commercial Department, and Societies. All financialtransactions with GCMMF are handled by accounts department only. Different types ofvouchers are processed here. All final accounting is done in this department. PURCHASE BILL DEPARTMENT Purchase Bill department is a sub-division of the accounts department. Allaccounting related to Purchase and Billing is done here. Vouchers for purchase areprepared in this department and then sent to the Accounts department for furtherclarification and final dispatch. 23
  • 25. SOCIETIES - Mr. J R PATELSOCIETIES Societies’ division is a link between milk producers and AMUL. Milk producers firstcontact the societies’ division for any queries. All day to day transactions with the milkproducers are done through this department.Milk is procured from several co operative societies in Gujarat.Following cooperatives that function under GCMMF. Kaira Dist Coop Milk Producers’ Union Ltd, Amul Dairy, Anand Mehsana Dist Coop Milk Producers’ Union Ltd, Dudhsagar Dairy, Mehsana. Banaskantha Dist Coop Milk Producers’ Union Ltd, Palanpur. Baroda Dist Coop Milk Producers’ Union Ltd, Baroda. Bharuch Dist Coop Milk Producers’ Union Ltd, Bharuch. Valsad Dist Coop Milk Producers’ Union Ltd, Vasudhara Dairy, Valsad. Panchmahal Dist Coop Milk Producers’ Union Ltd, Godhra. Bhavnagar Dist Coop Milk Producers’ Union Ltd. Gandhinagar Dist Coop Milk Producers’ Union Ltd, Gandhinagar. Junagadh Dist Coop Milk Producers’ Union Ltd, Junagadh. Ahmedabad Dist Coop Milk Producers’ Union Ltd, Ahmedabad Kutch Dist Coop Milk Producers’ Union Ltd, Kutch Dairy, Madhapar. Rajkot Dist Coop Milk Producers’ Union Ltd, Rajkot. Sabarkantha Dist Coop Milk Producers’ Union Ltd, Sabar Dairy, Himatnagar. Surat Dist Coop Milk Producers’ Union Ltd, Sumul Dairy, Surat. Surendranagar Dist Coop Milk Producers’ Union Ltd, Surendranagar. 24
  • 26. MILK PROCUREMENT PROCESS AT AMUL ANAND FLOWCHART FARMERS ↓ TANKER  SOCIETIES ↓ SOCIETY1 ↓ MILK MEASUREMENT ↓ SLIP GENERATED  ACCOUNTS ↓ BMC BULK MILK CHILLING / CAN ↓ SOCIETY2 ↓ BMC BULK MILK CHILLING / CAN ↓ SOCIETY3/ SOCIETY4/ SOCIETY5…………. ↓ ROUTE FIXED ↓ SOCIETIES AMUL3 /CAN  AMUL2 ↓ MILK MEASUREMENT  ACCOUNTS ↓ INVOICE GENERATED ↓ PAYMENT TO BMC WITHIN 10 DAYS ↓ BMC /SOCIETY PAYMENT TO FARMERS AT RECEIPT OF MILK / WITHIN 2 DAYS/5 DAYS/10 DAYS ON BASIS OF SLIP GENERATED AT RECEIPT 25
  • 27. PROCESS 1. Milk is procured from Anand district & Khaira district. 2. KDCMPUL has three chilling centers at Kapadvanj , Balasinor & Undel and satellite dairies at Khatraj , Balasinor. 3. 774 societies supply milk to AMUL Dairy , Anand. 4. Farmers supply milk to the 774 societies in Anand & Khaira districts. 5. Societies having BMC bulk milk cooling centre store milk at 4 deg.C and the others store milk in cans. 6. Milk measurement – Quantity of milk is calculated. The Fat and SNF details are collected. The details are updated in SAP ERP system. Accounts department gets the details. 7. Slip : Slip is generated on this measurement basis and given to the farmers to claim their payments. 8. Tankers from AMUL Anand dairy, as per their pre determined schedule collect milk from the societies via a predetermined route. 9. Finally milk collected from BMCs is given to AMUL-3 & collected from societies through cans is passed to AMUL -2 10. Milk measurement – Quantity of milk is calculated. The Fat and SNF details are collected. The details are updated in SAP ERP system. Accounts department gets the details. 11. Payments is accordingly made to BMCs/ Societies within 10 days of receipt of milk 12. BMCs/societies have some advance cash to make instantaneous payments to farmers. 13. Payments are made to farmers immediately on receipt or within 2 / 5 / 10 days of receipt of milk on basis of slip generated. 26
  • 28. RECEIPT DEPARTMENT (RAW MATERIALS STORE) -Mr. A K THAKURReceipt department receives the raw materials/goods as planned by the Purchasedepartment.All the raw materials are stored in the Stores department. When requirement forany material arises, the store department gives the necessary indent to thePurchase department. This is done on a proactive basis so that no stock outsituation arises. All the incoming materials are received by this department andthe quality check is done in the laboratories. Goods receipt notes are preparedthrough this department. The Stores department is divided into three main parts,which are (a). General (b). Miscellaneous (c). Engineering. 27
  • 29. RAW MATERIALS STORE PROCESS FLOWCHART PO IS CREATED FOR RESP VENDOR BY PURCHASE DEPT ↓ AS PER DELIVERY DATE VENDOR DELIVERS GOODS TO RAW MATERIAL STORES ↓ SAMPLES ARE SENT TO QA DEPT  DISAPPROVAL  SENT BACK ↓ APPROVAL ↓ SENT TO PRODUCTION  DISAPPROVAL  SENT BACK DEPARTMENT ↓ USER APPROVAL ↓ GOODS RECEIPT NOTES PREPARED  ALL GOOD RECEIVED ↓ PO CLOSED 1. Transporter for the respective vendor has to supply the raw materials on the respective date as per the PO details. 2. Goods are received at the stores. 3. Samples of the raw materials are sent for Quality Assurance to confirm whether goods meet the required specifications. 4. On disapproval by QA goods are sent back. 5. On approval goods are stored in Stores godown. 6. As required, the goods on a daily basis are transferred to the production department. 7. Inventory of the Raw materials godown – Stock Statement is regularly checked on a daily basis. 8. Stock statement is an odd list of approximately 200 items. 9. On disapproval by production (even cleared by QA) goods can be sent back. 10. On final approval GR (Goods Receipt) note is prepared. 11. If all goods mentioned in PO are received PO is closed. 28
  • 30. PRODUCTION DEPARTMENT - Mr. D R SHARMA INTRODUCTION The basic philosophy of production management is to launch a frontal attack on direct costs andeffective use the availability manpower weaving new techniques in to the whole to keep the productionunit efficient and developing production management is the process of planning, organizing, directingand controlling. AMUL was started with only 250 liters of milk per day. But now AMUL collects average 11 lakhsof liters milk per day. At the initial stage, AMUL has not any problem regarding milk, but in the winterseason there was excess supply of milk. So, AMUL had to sell out that excess milk at the low price orAMUL had to face loss. To removing these problems AMUL took a decision to set up a plant to processthe surplus milk, butter and milk powder. With the financial help of UNICEF, union established a Rs. 50 million factory to manufacture milkpowder and butter in November 15, 1954. In 1958 the plant was expanded to manufacture sweetcondensed milk. In 1960 the other branch is started, which can produce 600 tons of cheese and 2500tones of baby food every year. In 1964 the other plant was established to manufacture cattle feed onOctober 31, 1964. Third dairy and cheese plant at Khalraj began in February 1994. Today the AMUL has three plants Known as AMUL 1, 2 & 3 all three plant work 24 hours a daycontinuously. The all manufacturing process is done automatically. The production is done in the specialmachines. These machines and the technology are import-id from the TRFTA PEAK Company. There isalso facility of chilling of milk, so that the milk remains usable. 29
  • 31. AMUL PRODUCTION SECTIONS MILK RECEPTION AMUL – 3 PROCESS AND RECEPTION LAB This is very first department of any dairy where tankers loaded with milk areunloaded and simultaneously the milk is tested and processed further. Raw milk at AMUL– 3, is received through road tankers and in cans from AMUL – 2.There are three reception lines for unloading milk tankers. A. AMUL – 3 MILK RECEIPT PROCESS 1. Tankers from AMUL, Anand dairy as per their pre determined schedule collect milk from the societies via a predetermined route. 2. Finally milk collected from BMCs is given to AMUL-3. 3. There are 3 bays of unloading milk tankers 4. Each reception lines are equipped with the following: Centrifugal pumps each of capacity of 30000 liters/ hours. Tank to remove air from the milk. Filters - filter the milk. Pre heat exchanger (chiller) – one PHE after each filter. Raw milk silo used for storage of raw milk. B. AMUL-3 MILK PASTEURIZATION PROCESS AMUL-3 process takes place as follows Raw Milk Tankers (With chilled milk) ↓ Chiller (Cooled down) ↓ Raw Milk Buffer Tank (Stored in the tank) ↓ Raw Milk Silo ↓ Balance Pasteurizer Tank ↓ Regeneration Section ↓ 30
  • 32. Cream Separation Skimmed Milk Cream Buffer Tank ↓ ↓ Pasteurizer( 80 +/- 3deg.c) Cream Pasteurizer( 80 +/- 3deg.c) ↓ ↓ Milk Silo Cream Balance Tank ↓ ↓ Issued to Powder Section Issued to Butter Section ↓ Standardization unit ↓ ↓Skimmed milk Whole milk ↓ ↓Pasteurization Pasteurization ↓ ↓Proportionate mixing in milk storage Tank ↓ Pasteurized standardized milk ↓ ↓ ↓ ↓ ↓F60 powder L& T Amul-2 Road tanker Rail tanker C. AMUL-3 MILK DISPATCH 1. Milk Processed at AMUL – 3 is sent to 5 different sections as indicated below. AMUL- 2 for Pouch Packaging Eg. AMUL Gold etc. Mumbai Dairy , Pune Dairy & Kolkata Dairy Inter Dairy Transfer :Valsad Dairy, Baroda Dairy, Rajkot Dairy Finally F60 powder plant, L& T plant, Butter Section, Ghee Section, Flavored Milk Section 2. Transfer to Mumbai Dairy , Pune Dairy & Kolkata Dairy & Inter Dairy Transfer to Valsad Dairy, Baroda Dairy, Rajkot Dairy is controlled by Control Office. 3. Transfer to Mumbai Dairy , Pune Dairy & Kolkata Dairy should be under inspection of Commercial Department 31
  • 33. AMUL – 2 PROCESS AND MILK POUCH Pouch packing section deals with packing of milk into pouches. There are threepacking machines. Each machine consists of two identical heads for packing and eachhead draws heat sealable polyethylene sheet from a separate roll, which is fed withmilk to be packed from the overhead tank by gravity. The material moved continuously downwards in a strip, the film is foldedlongitudinally. First vertical sealing occurs, as continuous cylinder moves downwardstransverse heat seals are made by jaws, which have the effect of closing the bottom ofpouch, so that measure volume of milk is filled into the space above a seal. D. AMUL – 2 MILK RECEIPT PROCESS 1. At RMRD AMUL 2 milk is received in cans. 2. Both Cow milk and buffalo milk is received in cans marked with separate colors. 3. Milk is received in two shifts viz Morning & Evening. 4. There are two reception lines. 5. Cans are checked for sour or curdled milk. 6. Milk is added to weighting tank . 7. Empty cans are moved to the washer. 8. Samples are collected for Fat & SNF calculations. E. AMUL – 2 PROCESS Tankers Bring Cans from various Societies via predetermined routes to AMUL-2 ↓ Cans containing Cow & Buffalo Milk Separately Unloaded Added On conveyor belt ↓ Physical Inspection (For sour or curdled milk) ↓ Milk added to dump tank ↓ Filtration 32
  • 34. ↓ Chilling ↓ Pasteurization (80 C approx) ↓ Standardization ↓ Pouch Packing Department1. Milk is then sent to AMUL -3 for packing and stored in SILO tanks2. Milk then can be used for variety of purposes.3. Milk at AMUL-2 is also used for producing butter milk which is also packed in Pouch Packing DepartmentAMUL -2 MILK POUCH SALES PROCESS FLOWCHART LOCAL PARTIES BOOK MILK ORDERS AT AMUL-2 ↓ DAILY REGISTER IS MAINTAINED FOR THE SAME ↓ PARTIES MENTION THE QUANTITY REQUIRED AND TIME OF RECEIPT ↓ COUPLE OF SHIFTS PER DAY (MORNING & EVENING) ↓ PARTIES HOLD THEIR ACCOUNTS AT KDCMPUL ↓ PAYMENT IS MADE IN RESP ACCOUNTS ↓ TANKERS ARRIVES AT SCHEDULED TIME ↓ AMUL-2 EMPLOYEE VERIFIES FOR PAYMENT IN SYSTEM ↓ IF PAYMENT RECEIVED ↓ VEHICLE IS CHECKED FOR HYGEINE ↓ IF SATISFACTORY ↓ MILK POUCHES ARE LOADED 33
  • 35. F. AMUL-2 MILK DISPATCH -- MILK POUCHMilk is received from AMUL – 3 for packing. Milk Pouch packing department has 3machines.1. Milk 500 ml & 1000 ml2. Butter milk 500 ml3. As per the process explained above milk is dispatched daily in local market as well as other dairies .4. All transactions are under inspection of Commercial department and Accounts department. 34
  • 36. BUTTER SECTION In the plant, there is a machine called separator vessel, which counts the fat ofthe milk and separates the excess fat from the milk. This excess fat is used tomanufacture butter. Butter is manufactured from the fresh cream of the milk. The rawmilk is weighed and poured into cream of the milk separated. Pure fat of cream getsseparated from the milk then colored salt is added in them to make butter. Theprocessing of butter takes 7 minutes. A. BUTTER MANUFACTURING PROCESS AMUL -3 Pasteurized Milk – Milk Cream & AMUL-2 Milk Cream Pumped ↓ Butter cream/Raw cream ↓ Pasteurizer (Heated to 90 +/- 3 deg.c) ↓ Cooling (To 10 deg.c) ↓ Ageing (Moved in pipes for 20 hours) ↓ Cream Balance tank ↓ Plate Heat exchanger for temperature adjustment ↓ Churning Butter Grains Butter Milk (40 000 Capacity) ↓ ↓ Washed with Butter Milk Cooled in Chiller ↓ ↓ Butter milk Silo (Stored)Unsalted Butter (white butter) Salting↓ ↓Used for ghee manufacturing Grinding ↓ Brine& Color addition ↓ Butter blender ↓ 35
  • 37. Butter silo ↓ Packing lines ↓ ↓ ↓ ↓ 10 gm chip let 8 gm blister pack 100 gm(refill pack) 500 gm(refill pack)B. BUTTER DISPATCH PROCESS 1. Samples are sent to QA department. 2. Goods are transported to FPS godowns. 3. Goods are counted on basis of a Batch Number printed on them. 4. Goods on clearance from QA department can be released by FPS. 5. Goods are released in FIFO manner. 36
  • 38. STERILIZED FLAVOURED MILK Milk is the product which is used in the daily life. Now-a-days the new generation wants the milk in various flavors. Due to that the plant starts the flavored milk process Flavored milk section generates milk in several flavors in 200 ml glass bottles and cans. Shelf life of milk is increased from two days to (120 – 180) days.A. FLAVORED MILK MANUFACTURING PROCESS Pasteurized Milk (Reqd Specification) + SMP+ Sugar + TSP(Tri sodium phosphate) ↓ Dissolve sugar completely ↓ Heat the Milk mix ↓ Homogenise the Milk mix ↓ Chill to less than 5deg.c ↓ Take care to prevent the development of acidity ↓ Storage tank ↓ Color and flavor Added ↓ Filtration Automatic washing filling & corking Glass bottle ↓ Placing filled bottles in metal crates ↓ Sterilise ↓ Cooling by fans in cooling rooms ↓ Holding for 5 days at ambient temperature to watch for quality defects such as curdling leakage and discoloration ↓ Labeling & wrapping with hot glue machine 37
  • 39. NOTE : The Process is slightly different for chocolate flavored milk and coffee.B. FLAVORED MILK DISPATCH PROCESS 1. Samples are sent to QA department. 2. Goods are transported to FPS godowns. 3. Goods are counted on basis of a Batch Number printed on them. 4. Goods on clearance from QA department can be released by FPS. 5. Goods are released in FIFO manner. 38
  • 40. GHEE SECTION Sour milk is used for the production of ghee. This milk is sent to the cream machine forcollecting cream. Cream is converted into butter and butter is heated to make ghee. Ghee isthen packed in tins or plastic bags. A. FLOW CHART FOR GHEE MANUFACTURING Pasteurized white butter Curdled Milk ↓ ↓ Churning ↓ ↓ Washing ↓ ↓ Butter ↓ ↓ ↓ Melting vat (temp-110 deg c) ↓Serum portion ghee residue  Settling tank↓ ↓Serum tank Ghee Vessel↓ ↓Ghee Heated at 115 deg.C for 45 mins ↓ Filteration ↓ Clarification (60-65 deg.c) ↓ Settling storage tank ↓ Balance tank  Sent to QC lab for testing ↓ Packing Section ( 40-45 deg.C) ↓ Pouch Packing Tin packing (200ml , 500 ml, 1000 ml) (I lit ,5 lit, 15 kg) B. GHEE DISPATCH PROCESS Process is same as flavored milk or butter. 39
  • 41. STORES (FPS – FINISHED PRODUCT STORES) -Mr. A K THAKURThe main function of this department is to store the finished product and dispatch the sameduely on the basis of the DIL.FINISHED PRODUCT STORES PROCESS FLOWCHART GCMMF ↓ DIL DESPATCH INFORMATION LETTER ↓ FPS /TRANSPORTERS/COMMERCIAL DEPARTMENT ↓ TRANSPORTER HAS TO PICK UP THE FINISHED PRODUCTS ↓ FPS EMPLOYEE RECEIVES DIL FROM TRANSPORTER ↓ AVAILABLITY OF GOODS IS CHECKED IN STORES ↓ QUALITY CLEARANCE IS VERIFIED ↓ INVOICE IS CREATED ↓ VEHICLE IS QUALITY TESTED DISAPPROVED  SENT BACK (TEMPERATURE HYGIENE ETC) ↓ APPROVED ↓ LOADED WITH RESP GOODS ↓ GATE PASS & INVOICE HANDED OVER ↓ APPROVED BY COMMERCIAL DEPT ↓ TRANSPORTED TO GCMMF GODOWNS /OTHER AMUL DAIRIES 40
  • 42. PROCESS DESCRIPTION 1. As per production planning GCMMF decides the locations/depots where goods are to be transported to. 2. According DIL Dispatch Information Letter is prepared and handed over to Transporter, Commercial department & Dispatch department. 3. On the mentioned date the transporter arrives at the stores with their copy of DIL 4. On verifying the DIL, FPS Employee verifies weather the stock has been produced and available in the respective stores and weather the available stock has been cleared by QA 5. Simultaneously the transporters vehicle is verified for hygiene, temperature and other specifications. 6. If the vehicle is approved, and if quality tested stock is available Invoice & Gate Pass are created and the goods are released. 7. These goods are priced as per COMMERCIAL DEPARTEMENT.OTHER IMPORTANT FUNCTIONSThe brief function of stores can be summarized as under:- 1. Materials Receipts. [JIT METHOD] 2. Materials Issue. [FIFO METHOD] 3. Physical verification of Stocks. [Quarterly/Annually] 4. Data entry of Receipts and Issues. [ERP Systems] 5. Preparation of various reports like Stock Statement, Ledger, and consumption Report etc. 6. Maintaining various registers like Inward Register, Rejection Register etc. 7. Coordination between Purchase and Commercial Department for smooth flow of material 8. Goods are also released for Inter Dairy Transfer, Defense Sales & Local Sales. 9. Inter Dairy transfer includes releases to Kolkata ( SMP , WMP , Butter ASP) Pune (Butter) Mogar (SMP , White Butter) 41
  • 43. Kanjri (FSP) Process remains same. DIL is released by Commercial DepartmentNOTE A. Tankers and lorries for Butter and Milk are insulated. B. Temperature may increase maximum by about 2-3DEG C during transportation C. Goods are marked by Batch Number which includes day of year & shift of that day. D. To speed up the loading operations goods are loaded with the help of CONVER directly from the stores into the vehicle. E. Goods are accurately counted before being loaded into the truck. F. Material return:- Once material issued to user department and due to some valid reason, cannot be used for a long time then the material is returned to stores department on an authorized Material Return Note (MRN). Stores department takes back the material and makes a data entry in the system and the stock get increased by the MRN quantity. G. Inter store / Unit transfer:- Other than the material user department, if one Store / unit is in need of any material, it send a requisite to another store / unit. And if the Store department has the material, it issues the physical material and transfers it through the system also. H. Material issue other then the dairy:-. If material is issued on sale bases to another dairy / party, it is issued by DC and subsequent debit note is raised by account section. In case material is issued on loan basIs, it is issued by returnable gate pass and DC. And data entry is made in loan register. I. Material rejection:- Material rejection should be of two types: On Line Material Rejection and Material Rejection by QA. In both the cases store department inform the purchase section about the rejection of the goods to inform the party. Once the material gets rejected, rejection label get hanged on that lot and that should not consider in the stock. 42
  • 44. STORES INVENTORY -Mr. A K THAKUR INVENTORY NATURE OF INVENTORY OBJECTIVES OF INVENTORY MANAGEMENT BENEFITS OF INVENTORY MANAGEMENT INVENTORY CYCLE AMUL STORE DEPARTMENT INVENTORY MANAGEMENTINTRODUCTION:- Inventory generally refers to the stockpile of the products a firm is offeringfor sale and the components that make up the product. In this sense inventorymanagement would refer to the management of current assets and other materialsinside the organization. Inventory management is very necessary for the firm because ifthe firm has lesser investment in inventory, this would lead to unavailability of materialswhen required which would ultimately lead to interruption in production process.Similarly if the firm has higher investment in inventory this would lead to unnecessarylocking up of funds in inventory, thus reducing the working capital. Hence, the inventoryshould be properly managed in every organization.NATURE OF INVENTORY:-  Raw Materials: These are goods, which have not yet been committed to production in a manufacturing firm. They may consist of basic raw materials.  WIP: This includes those materials, which have been committed to production process but have not yet been completed.  Finished Goods: These are completed products awaiting sale. They are the final output of the production process in a manufacturing firm.  Supplies: These materials are of low value and they do not enter the production process directly. 43
  • 45. OBJECTIVES OF INVENTORY MANAGEMENT:- The main aim of inventory management should be to avoid excessive and inadequatelevels of inventories and to maintain sufficient inventory for the smooth production and salesoperations. Efforts should be made to place an order at the right time with the right source toacquire the right quantity at the right price and quantity.An effective inventory management should ensure all of the following  A continuous supply of raw materials to facilitate uninterrupted production  Maintain sufficient stock of raw materials in period short supply and anticipate price changes  Maintain sufficient finished goods inventory for smooth sales operation and efficient customer service  Minimize the carrying cost and time  Control investment in inventories and keep it at an optimum level  Enable the company to obtain quantity discounts through large scale buying of materials  Help in maintaining a continuous production for seasonal goods  Minimizes inventory on hand and ensures that excess stock is not kept  Help in minimizing wastage as well as losses  Reduce the risk of deterioration of goods kept in the inventory  Simplify the purchasing activity and make it more efficient  Minimize losses faced by the firm due to price decline  Make most of the storage capacity available 44
  • 46. BENEFITS OF INVENTORY MANAGEMENT:- The following are some of the benefits, which we can be obtained through proper management of inventories:  Efficient & Economical Production  Protection against too little or excessive stock  Protection of stock  Lesser wastage  Avoiding loss of sales & customer satisfaction  Optimum use of finance  Efficient stock takingINVENTORY CYCLE:- 45
  • 47. INFORMATION ABOUT AMUL STORE DEPARTMENT:-At KDCMPUL, Anand, store department has been functioning in order to cater day to daymaterial transaction need for the union and its effective management.The store department can further be classified as:-General : It includes Packaging and ingredients materials.Engineering : It includes Mechanical spares, Electrical goods, Lubricants and fuel.Miscellaneous : It includes Consumables, Capital Items, Dead stack items.Scrap : It includes receipt and sale of scrap of different plants 46
  • 48. INVENTORY MANAGEMENT:-Inventory generally refers to the stock of raw material, which have some economical value. Inthis sense inventory management would refer to the management of current assets and othermaterials inside the organization. Inventory management is very important for the firm becauseif the firm has lesser investment in inventory, this would lead to unavailability of materialswhen required. This would ultimately lead to interruption in production process. However, ifthe firm has higher investment in inventory this would lead to unnecessary locking up of fundsin inventory, thus reducing the working capital. Hence the inventory should be managedproperly in every organization. Inventory together with receivable and cash and bank balance constitute around 30% ofthe total current assets.Effective control of all these factors can increase the profitability of theorganization. At all the plants of AMUL and KAIRA DISTRICT CO-OPERATIVE SOCIETY inventory isclassified mainly in five heads.  Raw Milk Stock  Raw Materials: it is major input in the organization which is used in the production activity. Its quantity will be determined by rate of consumption and the time required getting the supplies.  Work in Progress: in this stage the stock are in between materials and finished goods form. The quantum of work-in-progress depends upon the time taken in manufacturing process.  Finished Goods: It means that goods are ready to consume . Its stock provide buffer between production and market.  Scraps  Stock in Progress 47
  • 49. Since the working is on a continuous basis, it is bound to have enough amount ofinventory in stock to ensure smoothness in production without any interruption. To ensuretimely availability of milk, AMUL brings milk every day from the 1073 villages surrounding theKaira district. To store the raw milk, AMUL has already provided chilling centers at the villageco-operative unions. And to store the processed milk, AMUL has developed eight milk storingtowers, each having the capacity of storing 1.5 lakhs liters of milk. The processed milk is soldout in the Kaira and Anand district and the remaining stock of milk is used to produce othermilk products. Thus inventory management is very sound at AMUL. The prime objective of inventory management is1) To minimize the possibility of disruption in the production schedule of a firm.2) To keep down capital investment in inventory Although it is essential to have necessary idea resources of the firm. Inventorymanagement therefore should strike a balance between too much inventories and to littleinventory. The efficient management and effective control of inventories help in achievingbetter operation results and to eliminate duplication in ordering cost, and reduce investment inworking capital. 48
  • 50. AMUL ANAND COMMERCIAL DEPARTMENT -Mr. Anand Singh All activities related to sales and marketing are carried out by the commercialdepartment. Most of the AMUL products are sold through GCMMF. GCMMF works as amedia for selling AMUL products. Commercial department is a link between AMUL andGCMMF. GCMMF is also the largest buyer of AMUL products. The second largest buyerof AMUL products is the Indian Army. There is no intervention of federation whiledealing with the Army. Main products that are sold to the Indian Army are Ghee, WhiteMilk Powder, Butter, Cheese, and Nutramul. The byproducts are sold to Vadilal Ice-Cream.AMUL also markets some products at small level by itself. AMUL sells milk and buttermilkon its own. All transactions with the Indian Army are carried by Commercial Department.COMMERCIAL DEPARTMENT PROCESS FLOWCHART GCMMF / AMUL ↓ PLANNED DISPATCH ↓ PRODUCTION PLANNING DONE ACCORDINGLY ↓ COMMERCIAL DEPT DECIDES PRODUCT PRICING/DISPATCH TIME / BEST ROUTE /MAX QUANTITY IN TRUCKS ↓ TRANSPORTERS ON CONTRACT WITH GCMMF ↓ DIL DESPATCH INFORMATION LETTER ↓ FPS /TRANSPORTERS/COMMERCIAL DEPARTMENT ↓ TRANSPORTER HAS TO PICK UP THE FINISHED PRODUCTS ↓ FPS EMPLOYEE RECEIVES DIL FROM TRANSPORTER ↓ AVAILABLITY OF GOODS IS CHECKED IN STORES 49
  • 51. ↓ QUALITY CLEARANCE IS VERIFIED ↓ INVOICE IS CREATED ↓ VEHICLE IS QUALITY TESTED DISAPPROVED SENT BACK (TEMPERATURE HYGIENE ETC) ↓ APPROVED ↓ LOADED WITH RESP GOODS ↓ GATE PASS & INVOICE HANDED OVER ↓ APPROVED BY COMMERCIAL DEPT ↓ TRANSPORTED TO GCMMF GODOWNS ↓ INVOICE SENT TO ACCOUNTS ↓ PAYMENT RECEIVED FROM GCMMF BY ACCOUNTS DEPTPROCESS1. PD is decided in PCM and Production Planning is done accordingly.2. As per production planning GCMMF decides the locations/depots where goods are to betransported to.3. Accordingly Commercial department decides the logistics , the best route available , andthe goods to be sent in a particular truck and product price to be paid by vendor or federationitself.4. According DIL- Dispatch Information Letter is released to Transporter, Commercialdepartment & Dispatch department by federation.5. On the mentioned data the transporter arrives at the stores with their copy of DIL6. On verifying the DIL, FPS Employee verifies whether the stock has been produced andavailable in the respective stores and whether the available stock has been cleared by QA 50
  • 52. 7. Simultaneously the transporters vehicle is verified for hygiene, temperature and otherspecifications.8. If the vehicle is approved, and if quality tested stock is available Invoice & Gate Pass arecreated and the goods are released.9. These goods are approved by as Commercial department and transported to GCMMFdepots10 . Invoice is handed over to the depots as well as handed to the Accounts.11. Accordingly payment is received from Federation.OTHER IMPORTANT FUNCTIONS 1. Goods are also released for Inter Dairy Transfer, Defense Sales & Local Sales. 2. Inter Dairy transfer includes releases to Kolkata ( SMP , WMP , Butter ASP) Pune (Butter) Mogar (SMP , White Butter) Kanjri (FSP) 3 . Mumbai Dairy , Pune Dairy , Kolkata Dairy are under KDCMPUL 4. Goods are internally transferred to these dairies and further sold to GCMMF. 5. All the transactions related to defense are handled by Commercial Department. 6. Some products are specially manufactured for defense use. PP for these goods is done separately. 7. Transactions related to export of goods is handled separately. 8. Transactions with agencies like ISO are also handled by commercial department 9. Process remains same. DIL is released by Commercial Department 51
  • 53. SOME OTHER DEPARTMENTS IN AMUL ,ANAND:Administration:- The main work of administration department in any company is to appointright people at right time and then supervise them. In AMUL, there is a combinedadministration and Human Resources Development department. The Administrationdepartment also performs all activities related to human resources development.Salary Account:- This is a sub section of Accounts department. All accounting related to salariesand wages, provident funds, pension insurance, gratuity etc. is done in this department.Audit:- There are two audit departments at AMUL . One is the internal audit departmentand the other is the government audit department. As the name suggests government,auditing is done by a certified government auditor. Internal audit work is given to anoutside accountancy firm. Pre-auditing and Post auditing of different vouchers are donein this department.MIS:- It is a sub-section of the Accounts department. It is called MIS (ManagementInformation System). All the information systems that are required in differentdepartments are first developed in this department. 52
  • 54. NOTEGate pass:- No material can be taken out of Factory premises without a properly authorizedGate Pass. Stores /concerned department shall issue a Gate Pass either of following types: a) Non Returnable Gate Pass: - This Gate Pass is to be issued when material ispermanently dispatched and not expected to be received back. b) Returnable Gate Pass: -This Gate Pass is to be issued when the material is expectedto be received back after repairing, modifications etc.Scrap handling:-1) Each and every department is sending solid waste to the scrap yard, along with the notedescribing the type and the quantity of the scrap, which is handled by the stores department.2) These scrap is kept to the prefix area only. Here different cages are allocated to the differenttype of scraps. Stores department is keeping records of all the receipts and sale of the scrap.3) When the scrap is being received at the scrap yard, the scrap personnel check the quantityand make receipt of the scrap. The stores department is responsible for the sale of scrap.4) For the sale of scrap, annual contract is given by purchase section to different parties at afixed rate. 53
  • 55. CONCLUSIONMy heartfelt thanks to all employees of KDCMPUL for devoting their valuable time , for helpingme in understanding Production Process from Planning to Finished Product dispatch BIBLIOGRAPHY:- Stores Handbook www.amul.com 54