A Project rePort on summer trAining At“ surAt district co-oPerAtive milk Producer’s union ltd. ”
In t r o d u c t io n• Sumul or Surat Milk Union Limited, which is now renamed as The Surat District Co-operative Milk Producers Union Ltd, is one among the 12 district unions which acts as manufacturing units of dairy products for (G.C.M.M.F.) Gujarat Co-operative Milk Marketing Federation Limited.• SUMUL Dairy is a co-operative endeavor committed to help marginal farmers and down trodden tribal to lead to a healthy life and better standard of living through scientific animal husbandry practices. Today’s Sumul enjoys the pride to serve milk and milk products to popular in Surat city and surrounding towns of it.• Hence, the Surat district co-operative milk producer’s union ltd, SUMUL is trade name and literally meaning sound price, came in to existence on August 22, 1951…
H is t o r y• In the year 1939 Sardar Vallabhbhai Patel went and meets the farmers of Anand and told them that for the trade of milk the dairy was necessary. During that time there was only one dairy “POLSUN DAIRY” which belongs to British’s and they use to give very less price for milk to the Indian Milkmen. At that time a person named Tribhuvandas Patel came forward to take the leadership. In order to support the Indian farmers “AMUL DAIRY” was established in the year 1946.• DR. Kurien was appointed at this dairy.• Then after, For the proper development of the dairy industry N.D.D.B. (The National Dairy Development Board) was established at Anand.• Here the farmers were, made aware about their right & responsibilities high productivity of milk at low cost & so the co-operative of development programs started.• In the year 1998-99 two million tone of milk was produced in Indian & Indian becomes the world’s first milk producing country. Which is more then 68 million of American. So it was called “white revolution”
S u m u l’ s m is s io n & v is io n s t a t e m e n t “SUMUL IS SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. SUMUL BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE, WITHOUT COMPROMISING HIS HONESTY AND INTEGRITY" Year 2009-10 2011-20Turnover RS. 607 Crores RS. 4000 CroresMilk Procurement 6,59,682 kg/day 14,10,000 kg/dayMilk Sale 595,595 Liters/Per day 13,00,000 Liters/Per dayQuality ISO 9001 & HACCP ISO 22000 & ISO 14001Production cost Minimum Production Cost MPC through 100% automationDistribution System Consumers oriented, Consumers oriented, Cost Quick and effective Effective Distribution, Cost Effective Vertical & Horizontal Distribution
N U M B E R O F D E P A R T M E N T S IN S U M U L D A IR YThere are 10 departments at Sumul, they are as follows. • 1. HR department • 2. Finance department • 3. Sales & Marketing department • 4. Veternity Department • 5. Production & Engineering Department • 6. Accounts Department & Audit Section • 7. Assembling Department • 8. Quality Department • 9. Store & Purchase Department • 10. Information Technology Department
in t r o d u c t io nSumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths andthough regular and assured twice a day supply of milk to 1662 concessionaires (Agent)and 198 institutional buyers, through 85 contractors’ route vehicles. There isguaranteed cash inflow of the sales proceeds on day-to-day basis and safe return ofcrates etc. to the Dairy. H i e r a c h y s t r u c t u r e o f m a r k e t in g d e p a r t m e n t
m a r k e t in g e n v ir o n m e n t Internal environment External environment Micro Macro Internal environment:They are generally audited by applying the ‘Five Ms’ which are…. Men, Money, Machinery, Materials and Markets. External environment:Micro-environment:This environment influences the organization Macro-environment:directly. The wider environment is also ever changing.It includes :1. suppliers who deal directly or indirectly It includes competition, Government Policy, Politics,2. consumers and customers Economical Policy and Cultural activity.3. other local stakeholders
L is t o f C o m p e t it o r s• Following some of the dairy all from the district i.e. from North Gujarat & Maharashtra: 1. Unity dairy, Uttarsanda 11. Sardar Dairy, Mehsana 2. Jeevan Shakti, Dhuliya 12. Vimal Dairy, Mehsana 3. Vishalsagar, Dhuliya 13. Royal Dairy, Gandhinagar 4. Gopi Milk Products, Puna 14. Suffal (Paneer) 5. Gautam Milk Products,Kopargoan 15. Satyam Dairy, Gandhinagar 6. Gayatri Milk Dairy 16. Sumathur dairy 7. New Suraj Dairy, vijapur 17. Mahakall Dairy, Sid 8. Sarita Milk Products, Kadi 9. Britannia (Ghee) 10. Neslte (Milk powder, Ghee)
P r o d u c t - m ix O F s u m u l d a ir yProducts Mix: “The set of all products and items that a particular seller offers for sales to buyer.” Liquid Milk Self Developed Milk Products Products Whole Milk Butter Milk Paneer Pasteurized Ghee Flavors Standard Milk Milk White Butter Sweets Homogenized Toned Milk Skimmed Milk Shrikhand Powder Skimmed Milk Sumul Sugar Cow Milk Sumul Tea
P A C K A G IN G & L A B E L IN G P a c k a g in g L a b e lin g :• Packaging is one of the most • To achieve marketing objective of important factors that the to satisfy the desire of the management must have to consumer sumul has chosen the consider in mind. labeling components very• Here, different machines are correctly. available for different types of • They also use different -different packing. The firm is now going for slogan on the product. a new type of packing called • SUMUL use this type of symbol … “Gable top packing”.• The main advantage of such type of packing is in this packing milk remains fresh for about 10 days.
P r ic in g p o lic yPricing Policy:General information regarding to setting of price is it has fixed structure followed by GCMMF atSumul farmers are paid on the basis of kilo fat in their milk. They are paid Rs.318 per KG of fat.Taking this as base the price of the product is being set. Price list are as follows: Commodity Quality Price(Rs.) Ghee 15 kg 2300 5 liter 720 Cost Structure of Product: 2 liter 275 1 liter 150 1 liter pouch 145 Production cost 500 ml pouch 74 + Transport expenditure 200 ml pouch 31 + Profit Margin White Butter 15 kg 1695 + Commission 500 gm 60 Jome 200 ml bottle 8 ------------------------------ 200 ml pouch 5 Cost Paneer 1 kg 105 200 gr 22 EIaichy Peda 500 gr 59 250 gr 30 Kesar Peda 500 gr 79 250 gr 40 Malai Puri Peda 250 gr 36 Premium Tea 500 gr 62 250 gr 33 100 gr 14 Silbver Tea 500 gr 71 250 gr 39 100 gr 16 EIaichy Shrikhand 500 gr 40 Kesar Shrikhand 500 gr 45 100 gr 10
O r g a n is a t io n ’ s b u y in g proc e s sBuying Process:• Sumul collects the milk from the villages.• The collected milk is tested against the set standard. That insures quality of milk being received from the root level.• The milk is tested in lab. No compromises with the quality of milk being received and pay the price of milk on the basis of fat.• The qualified milk is received at raw milk receiving Dock at dairy.• The received milk is transported to the dairy for the further processing
P r o d u c t lif e c y c leThe Product Life Cycle concept helps marketers interpret product and market dynamics. Introduction Growth Maturity Decline Sumul is at the growth stage of the product life cycle and our companyalso create the new idea and launching new product time to time andincreasing sales every time.
C h a n n e l o f d is t r ib u t io n DISTRIBUTION CHANNEL OF LIQUID MILK So, its called one level (1 level) Distribution Channel DISTRIBUTION CHANNEL OF DAIRY PRODUCTS So, its called two level (2 level) Distribution Channel
M A R K E T IN G / S A L E S D e p a r t m e n t A T A GLANC E Population of Surat City: 45, 00,000 Market Size: 8, 25,000 Liters/ day. (Population*250ml per capital) Annually Milk sale (2010-11) is 24,93,28,941 Liters . Average sale (2010-11) is 6, 83,093 Liters milk per day. Growth: 14.82% Market share: 77% Competitors in packed milk:18-20 having sale 25000-30000 liters in total per day.
P r o m o t io n a l A C T IV IT IE S Advertisement:Here advertising is done through hoardings, banners, wall painting, newspapers, andstickers etc. Sumul dairy spend nearly 20 to 25 lakh on the advertisement. The contract of advertisement is with the Venus ads. Healthy Baby Contest since 1992… Paneer Show: Education Programs: House Visits:
in t r o d u c t io n• Sumul believes that the most significant resource is its Human Resource and Sumul’s Success in the long run depends very much on the quality of its human resources. HR Objectives:• To develop and sustain core values.• To develop business leaders for tomorrow.• To provide job contentment through empowerment, accountability and responsibility.• To build and upgrade competencies through virtual learning, opportunities for growth and providing challenge in the job.• To faster a climate of creativity, innovation and enthusiasm.• To enhance the quality of life of employees and their family.
A c t iv it ie s o f p e r s o n a l d e p a r t m e n t The main activities of this department are… Recruitment, selection, Training, Self Development & Employee PersonalityDevelopment and welfare activities. R & D Huma n re s ourc e p la n n in g When there is any vacancy or some requirement comes up in the organization. Human resource planning is being done.
S e le c t io n proc e s s• Procedure for selection is differing from organization to organization and from job to job. • For Executives: • For Non-Executives: • Written Test • Written Test – Aptitude test • Final interview – Subject test • Final selection • Group Discussion • Interview • Final selection
P E R F O R M A N C E A P P R A IS A L S YS T E M • “Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters of pertaining to his present job and his potential for a better job” • In sumul, gives specific project to the employee to train him. After completion of this project, it is checked by the authorized person of the department. if the employee do not perform well then they are terminated from the organization. T r a in in g & D E V E L O P M E N T• Sumul Dairy, training is given with the objective of increase in productivity of employees, increase quality of work, enhance and update knowledge and skills of employees.• Sumul provides training as on the job training and give training to new employee. Training is given to the workers which are basically at period of one month. Training is given in 3 Categories as: » Management Training. » Office Training » Senior Executive Training• So, the sumul also organized various development programs for Officers and Executives.
W a g e & s a la r y s t r u c t u r e “Wages represent hourly rates of pay & Salary means monthly rates of pay”•Sumul also provides this type of allowances :•Dearness Allowance (DA)•Additional Dearness Allowance (ADA)•House rent Allowance (HRA)•Leave Travel Allowance (LTA)•Washing Allowances (WA)•City & Travel Allowance (CTA)•Visiting Allowance (VA)•Bicycle Allowance (BA)•Scooter Allowance (SA)•Driving Allowance (DA)•Other Components: Bonus (8.33% of BASIC +DA+ADA) Funeral Fund Rs.3000 to the ward and family of the dad.Every month Rs1/- of all higher executives salary is maintained for this fund.
E m p lo y e e w e lf a r e “Labour welfare means anything done for the comfort and improvement. Intellectual or social of the employees over and above the wage paid which is not a necessity of the industry” Intra mural welfare activity ofSumul: Extra mural welfare activity of Sumul: Convenience and comfort during Transportation the work Washing facilities Roads, lighting, garden Store & Drying facility Communication facility Canteen facility Security Rest room Training and development programs First aid facility Vehicle parking space Accommodation Vehicle loan Uniforms, Shoes and Raincoats House rent recovery
P e r s o n n e l in f o r m a t io n s y s t e mThe HR department keeps the information of each and every employee from top tobottom level workers. This information is updated from time to time.
O r g a n iz a t io n s t r u c t u r e o f p r o d u c t io n d e p a rtme nt
A c t iv it ie s o f p r o d u c t io n d e p a r t m e n t s • Production planning • Material requirement planning • Store finished goods and raw material • Quality control • Packaging • Painting of pack product • Transport to Marketplace • Washing and cleaning of equipments, regular maintenance of machine and other equipments. M A P O F A C T IV IT Y A R E A :- Cilling Centre Main Dairy Plant km distance from surat Taluka/ Tahsil Name Cattle Feed Factory
P r o d u c t io n proc e s sProduction process at SUMUL dairy is derived into two main stages.They are as follows- 1. Process flow from Village to Chilling Centre Level 2. Dairy plant to Market Level PROCESS FLOW FROM VILLAGE TO CHILLING CENTRE Milking by Producer Producer approaching DCS Grading & Testing at DCS Transportation to Chilling Centre Collection at DCS Receiv ing at Chilling Centre Testing at Chilling Centre Transportation to Dairy Plant
2. DAIRY PLANT TO MARKET LEVEL Milk Receiving Testing of Milk Processing Packing Processing Processing Storage Delivery Market
U n it o f s u m u l & t h e ir c a p a c it y Unit Place Capacity Employees Distance From SuratSUMUL DAIRY Surat 5 Lakh LTPD 591 0 km Bajipura Bajipura 3 Lakh LTPD 113 50 km Chilling (B.C.C.) Centre Navi Pardi Navi Pardi 2 Lakh LTPD 66 25 kmChilling Centre (N.P.C.C.) Uchchhal Uchchhal 1 Lakh LTPD 49 105 kmChilling Centre (U.C.C).Nizer Chilling Nizer 63,000 LTPD 16 175 km Centre Chasvad Chasvad 30,000 LTPD 100 kmChilling Centre (C.C.C.) Dediapada Dediapada 30,000 LTPD 135 kmChilling Centre (D.C.C.) Sumuldan Chalthan 200 MT PD 96 18 km Factory (S.D.F.)
M ic r o m o t io n s t u d y• During the visit to the production plant we have done micro motion study of a worker whose work was to take the milk pouched from the machine and the keep them on carate, which uses to come serially on the belt conveyors. The position of the person was such that it to very less time.• The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were thrown though the pouch-filling machine.• The entire process was completed in 18 sec. Q u a lit y p o lic y“ SUMUL DAIRY ARE DEVOTED, DEDICATED AND MOTIVATED WORKFORCETRAINEDTO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFEMILK AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMERSATISFACTION. SUMUL WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OFPROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS ANDSTATE OF THE ART TECHNOLOGY AND REMAIN ECOFRIENDLY QUALITY ANDFOOD SAFETY MANAGEMENT SYSTEM.”
TOTAL QUALITY MANAGEMENT (TQM)• TQM (Total Quality Management) was implemented at SUMUL on 6th May, 1996 with the help of EICHER CONSULTANCY, Mumbai. TOTAL PRODUCT MANAGEMENT (TPM)• TPM (Total Product Management) was implemented at SUMUL on 19th, October, 1999 with the help of TQM center at Surat under consultancy of Dr. B. C. Naidu.• Sumul has adopted International Standards for Quality Management. QAS Australia has certified our quality management systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. ENVIRONMENT POLICY:• Comply with all applicable environmental legislation, regulations and other requirements .• Control Plant operations to conserve natural resources such as water, electricity and fuel and prevent pollution• Continues improvement of environmental performance Creating awareness towards environmental issues among suppliers and stake holders
S u p p o r t s e r v ic e s » Maintenance » Packing Maintenance:At SUMUL, there is a strong maintenance procedure on raw materials & finalproducts, because such milk products should be maintain in such way theymaintains their quality for the long period of time. Packing:• Packaging is one of the most important factors that management must have to consider in mind.• Here, different machines are available for different types of packing. The firm is now going for a new type of packing called “Gable top packing”.• The main advantage of such type of packing is in this packing milk remains fresh for about 10 days.
M a t e r ia l h a n d lin g e q u ip m e n t s Material Handling Equipments Used No. of Material Handling Equipments Used: Equipment Quality• Pipeline: Milk Tankers : Sumul 13• Trolleys: On contract 11 • Crates Trolleys Tempos (on contract) 70 • Cans Trolleys Belt Conover 8 • Plastic Tube Crates 40,000 Cans :• Belt Conveyors: 40 Liter. 250• 20 Liter. 25 Trucks (Tempos): Crates Trolleys 50 Cans Trolleys 10 Plastic Tube 5 Glass Betties (200 ml) 35,000
P la n t lo c a t io n• SUMUL dairy is located near railway station road in Surat. It covers 15,000 – acre land. Sumul provides milk collection facilities at the producer’s door in each village co-operative, where milk is speedily, efficiently and economically transported twice daily to its dairy plant and chilling centers for processing and marketing.
H ie r a r c h y o f f in a n c e d e p a rtme nt“Finance management is that managerial activity which is concerned with the planningand controlling of the firm financial resources.” • Sumul is the co-operative so it has not special financial department. • Sumul require a lot of funds for meaning its working capital needs and other obligations. • It manages its working capital needs through internal funding only. There is regular, assured and smooth in flow of cash from milk sales from the agents to dairy’s Cash Collection Centers on day-to-day basis.
T u r n -o v e r in f o r m a t io n• From the study of the above diagram, we can see that Sumul has made a continuous progress in their profit making figures.• The present turn over of the firm is 790 crores which is 90 crores more than the profit of the previous year.
B u d g e t in g & p la n n in g• Capital budgeting decision pertaining to fixed and long term assets which by definition refer to assets which are in operation and yield a return over a period of time , usually exceeding one year .• Capital budgeting is the most important and complicated problem of managerial decision. Because it is concerned with designing and carrying out through a systematic investment programmes.• It involves the planning of such expenditures, which provides yields over a number of years. The firm’s investment decision would generally include expansion, acquisition, modernization and replacement of the long-term assets.• In short, the capital budgeting decisions means… a decision as to whether or not money should be invested in long term projects.
T a k in g lo a n s ( S O U R C E S O F FUNDS )• Every firm needs money or funds for the activities of it’s organization and they all takes it from either share capital or loans like debentures, bonds etc… Reserve fund & other funds: 16,85,26,228 Debenture Redeemable: 4,54,500 909 debentures Rs.500/- each Loans: 42,32,87,520 N.D.D.B. (operation flood) 27,08,078 Cattle loan etc. 2,05,79,442 Short term Loan 40,00,00,000 Interpretation:-At the and of the year Sumul has…. • Reserve fund & other source of funds Rs. 16,85,26,228 • Redeemable Debenture Rs. 4,54,500 • Total Loans Rs. 42,32,87,520
Is s u in g s h a r e s Authorized Share Capital: 10,00,00,000 (10, 00,000 ordinary shares of Rs.100/ each.) Share Capital (Issued fully paid up.) 4,23,67,200 (4, 23,672 ordinary shares of Rs.100/- each.)•Interpretation:-• Sumul has 10, 00,000 ordinary shares of Rs.100/ each. So, Authorized Share Capital Rs. 10,00,00,000•Sumul Issued Share Capital is 4,23,672 ordinary shares of Rs.100/- each.Which are fully paid up. So, Share Capital Rs. 4,23,67,200
C os t s ys te m• Cost is one of the main factors affecting finance department.• There are lots of control techniques through which companies can controltheir cost. Cost Structure of Product: Production cost + Transport expenditure + Profit Margin + Commission ------------------------------ Cost P a ym e n t proc e s s •Collection of sales bills & sales data •Data verification with sales information •Feed concern data in computer •Feed duration data in computer •To pass duration entry to the computer.
B a la n c e s h e e t d a t a • Comparative analysis means after some period company analyzing its financial report current year figure with the past years figure . • With the help of comparative analyzing company aware about it financial position. • Some balance sheet data are as follows: Liabilities Assets• Authorized Share Capital 10,00,00,000 • Assets 42,72,01,141 • Investments 4,97,46,578• Share Capital (Issued fully paid up.) 4,23,67,200 • Stock 48,05,07,794• Debenture Redeemable 4,54,500• Reserve fund & other funds 16,85,26,228 • Advances & other assets 32,96,97,582• Loans 42,32,87,520 • Cash & bank 95,92,51,961• Current liabilities 1,59,04,09,166• Profit & Loss A/C. 2,13,60,442 Net Profit 2,13,60,442 Total Income / Expenditure 8,40,61,16,108
W o r k in g c a p it a l• Generally, the term Working capital refers to that part of capital which is not tied up in fixed assets but is used to meet the day-to-day requirements of business. Working Capital = Net Current Assets – Net Current Liabilities Current Assets: In 2011 Stock is 54,47,01,276, Investment is 4,97,44,132 , Cash & Bank A/C is 75,49,00,390 , The total Assets is 1,34,93,45,798. Current Liabilities: In 2011 Reserve fund & other funds is 15,03,81,724, Current liabilities & loans is 1,34,53,70,370. The total Liabilities is 1,49,57,52,094. So The Net Working Capital is 14,64,06,296