Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organizations success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India. It is also the worlds biggest vegetarian cheese brand.
HISTORY OF THE COMPANY: The story of AMUL inspired „Operation Flood and heralded the White Revolution in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Amul has become a symbol of the aspirations of millions of farmers; creating a pattern of liberation and self-reliance for every farmer to follow.
• The „AMUL revolution‟ started as awareness among the farmers grew and matured into a protest movement. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw away prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves.
• In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers Union Limited (popularly known as Amul) which was formally registered on December 14, 1946.• Currently AMUL has 2.28 million producer members with milk collection average of 5.08 million liters/day.• Today AMUL is a symbol of many things. (High-quality products sold at reasonable prices, genesis of a vast co- operative network and a proven model for dairy development). The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948.
• GCMMF: Gujarat Cooperative Milk Marketing Federation.• GCMMF is Indias largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.• CRISIL, Indias leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
• GCMMF is a unique organization. Its a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.
Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money Diverse Product Mix Amul Butter, Milk Powder, Ghee,Success!! Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya Strong Distribution Network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.
Members: 13 district cooperative milk producers UnionNo. of Producer Members: 2.79 millionNo. of Village Societies: 13,328Total Milk handling capacity: 11.22 million liters per dayMilk collection (Total - 2008- 3.05 billion liters09):Milk collection (Daily 8.4 million litersAverage 2008-09):Milk Drying Capacity: 626 Mts. per dayCattle feed manufacturing 3500 Mts. per dayCapacity:
• Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is Indias largest food product marketing organization with annual turnover (2010- 11) US$ 2.2 billion. Its daily milk procurement is approx 12 million lit (peak period) per day from 15,712 village milk cooperative societies, 17 member unions covering 24 districts, and 3 million milk producer members.
PLANNING: AMUL has been able to:• Produce an appropriate blend of the policy maker‟s farmer‟s board of management and the professionals: each group appreciating its roles and limitations.• Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment.• Provide a support system to the milk producers without disturbing their agro-economic systems.
• Milk is very perishable product so it has to be consumed within 24 hours.• In order to avoid wastage AMUL converts the milk into SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents.• This is possible only if the distribution channel right from the producer to the consumer is well organized.• Last year, they are divided the retail market into 14 specific segments to achieve further distribution efficiency.• This year AMUL is focusing on inducting distributers having expertise in servicing such specific market segments.
• Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers.• Even though, growing with time and on scale, it has remained with the smallest producer members.• In that sense, AMUL is an example par excellence, of an intervention for rural change.
ORGANISING:• AMUL is leaded by the director under him five branches viz. Factory, Marketing, Accounts, Purchase, Human Resources Department.• Factory department has a separate general manager under him three are six branches viz. Production, Stores, Distribution, Cold Storage, Quality, and Deep- freezing. This department takes care of the factory work.
• Marketing department has regional senior marketing manager and under him there is regional manager.• This department takes care of the marketing aspects of AMUL.• Account department takes care regarding accounts i.e, day-to-day work. Under the accountant there is one clerk.• Purchase department takes care regarding the purchase of raw materials and many other things.
STAFFING:• Staffing is a process which includes recruitment, selection, training, placement, appraisal, promotion, and career planning.• In larger organizations, a separate department called Personnel Department looks after these functions and this is headed by a qualified professional manager called Personnel Manager.
The Organization Structure of Amul isdivided into two parts:1. External Organization Structure.2. Internal Organization Structure.
The Following is the External Organization Structure ofAmul:
External Organization Structure:• External organization structure is the organizational structure that effects the organization from the outside.• GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10,000 villages of Gujarat are the bases of this structure.
External Organization Structure:• They all make milk village milk producers union, district level milk producers union and then a state level marketing federation is established.• The structure is Line Relationship, which provides easy way to operation.• It also provides better communication between two stages.
The Following is the Internal Organization Structure of Amul: Chairman Managing Director General Manager Asst. General Manager Finance Personnel Production Marketing S&P Department Department Department Department Department
Internal Organization Structure:A systematic & well-defined organizational structureplays a vital role & provides accurate information to theTop- Level Management.An organization Structure defines a clear-cut line ofauthorities & responsibilities among the employeesof GCMMF. The Organization structure of AMUL iswell-arranged structure. At a glance a person cancompletely come to know about the organizationstructure.
Internal Organization Structure:• AMUL is leaded by the director under him five branch Viz., Factory, Marketing, Accounts, Purchase, Hu man Resources Departments.• Factory department has a separate general manager under him there are six branches viz., production, stores, distribution, cold storage, quality, and deep freezing. This department takes care of the factory work.
Internal Organization Structure:• Marketing Department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of AMUL.• Accounts department takes care regarding accounts i.e. day-to-day work. Under the accountant there is one clerk.• Purchase department takes care regarding the purchase of raw material and many other things.
• Plant layout is the overall arrangement of the machine tools, handling equipments, storeroom and other various accessories required for facilitating production in a factory. These arrangements are pre-planned with the results that the building has been constructed to fit a layout of a given process.• AMUL plant is indigenously worked out with facilitation of various production processes and production of multi products under one plant. The total plot is nearly about 2.27 kms. Separate buildings are provided with required arrangements of machine tools handling and computers connection through the control room to fit for varying product-manufacturing departments.
• The plant is engaged in producing milk, ice creams, milk powder and ghee. Entire department is uniquely provided with facilities for the processing each product. There are 4 production departments and packaging departments pertaining to each product respectively.• Thus, plant layout encompasses all production and service facilities and provides for the most effective utilization of the men, materials and machines constituting the process. It is the master blue print of coordinating all operations.
There are Four Plants ofAmul located in India :• First Plant, is at Anand, which engaged in the manufacturing of milk, butter, ghee, milk power, flavored milk, and butter milk.
Second Plant, is atMOGAR, whichengaged inmanufacturingchocolate, nutrAMUL, AMULGanthia andAMUL lite.
• Third Plant, is at KANJARI, Which produces cattle feed.• Fourth Plant, is at KHATRAJ, which engaged in producing cheese.
INTRODUCTION:• “Production management is refers to the process of correction of past mistakes catching up with the new techniques, taking up steps with developing techniques and taking measures for the production of goods at competitive cost.”• The basic philosophy of production management is to launch a frontal attack on direct costs and effective use the availability manpower weaving new techniques in to the whole to keep the production unit efficient and developing production management is the process of planning, organizing, directing and controlling.
• The Amul is started with only 250 liters of milk per day. But now Amul collect average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem regarding milk, but in the winter season there was excess supply of milk. So, Amul has to sell out that excess milk at the low price or Amul has to face loss. To removing these problems Amul take decision to set up a plant to process the surplus milk butter and milk powder.
• The Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24hours a day continuously. The all manufacturing process is done automatically. The production is done in the special machines. These machines and the technology are import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so that the milk remains usable.
Three plant of AMUL perform different functions:AMUL–1 Presently it is use as a go down for storing raw materials.AMUL–2 In this unit, the production process of Ghee and packings are running.AMUL–3 This unit is producing AMUL butter, spray power, and flavored milk.
Milk Collection Cycle: The success of each and every dairy industry is the getting the milk from the farmers and making that milk in use as soon as possible before that milk get spoiled because the milk is the perishable product. For the smooth running the business of dairy industry the industry must concentrate on the milk collection cycle. Amul dairy is very conscious about the milk collection cycle because the base of the success of the Amul is milk collection cycle.
Production capacity of Amul: Butter 50 to 60 Tones. Powder plant 70 tones. Powder plant 60 tones. Flavour milk 40000 bottles.
Amul – 2 Raw Reception Dock: Reception dock is the very first department of any dairy where milk is unloaded and simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines for unloading milk cans in Amul – 2 . About 60 % of reception is of buffalo milk and remaining 40% is cow milk.
Butter section: The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul dairy along with the famous butter girl. The butter section is located in Amul - 3which manufactures Table Butter, white butter and renduced salt butter. The section is completely computer controlled and is equipped with most modern imported equipments .Butter section very important as it handles fat, which is the costliest constituent. The cream obtained from process section is fully utilized for butter making .Amul white and table Butter is exported to USA and various Middle Eastern countries.
OPERATION: The cream for manufacturing Butter is receiving from Amul-3 process section while standardization of milk. In Amul -3 the milk fat will be separated at above 60 Celsius, the centrifugal separators inline with Milk pasteurizer separate this as cream. The cream thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo. After ageing at 8 Celsius for 24 hrs, cream is pumped to cream chilling unit in the butter section. There the temperature of cream is adjusted to the required churning temperature of continuous Butter Making Machine.
Packing materials used: Delocalize market Double laminated is used for export. Tin – used for 400g Army pack Card board box- used for tertiary packing 3ply for 9.1 g weight package 5ply for normal & export
Powder plant: F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used for the manufacturing of cheese whey powder . F-35 CONDENSING PLANT DETAILS: Make : SSP ,Faridabad. Type : Falling film vertical tube type. No of Pre heater : 5. No of calendria : 7. No of vapor separators : 5.
OPERATION DETAIL:MILK :One of the most versatile food consumed by us. Allchildren start their with mother‟s milk and continue touse it in one other throughout their life. It is the secretionfrom the mammary glands of a lactating mammal. Thewhite fluid, know as milk, is made up of milk fat and othermilk solids. MANUFACTURING PROCESS FOR MILK : MILK PROCUREMENT:Total milk procurement by our Member Unions during theyear 2006-07 averaged 67.25lakh kilograms (6.7million kg)per day, representing a growth of 4.5 per cent over
64.38lakh kilograms (6.4 million kg) per dayachieved during 2005-06. The highestprocurement as usual was recorded duringJanuary 2007 at 84.09 lakh kilograms(8.4million kg) per day. This increase inmilk procurement is veryimpressive, keeping in mind the massive losssuffered by our farmers due to floods duringthe monsoon season, specially in Suratdistrict.
MILK PROCESSING:1. Homogenization: Milk must then be homogenized. Without homogenization, the milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its rich and creamy taste. In this process Milk is transferred to a piece of equipment called a homogenizer. In this machine the milk fat is forced, under high pressure through tiny holes.
2. Pasteurization:Pasteurization is the processthat purifies milk and helps itstay fresher, longer. Milk ispasteurized by heating itto 72°C for 16 seconds thenquickly cooling it to 4°C.Pasteurization is named afterLouis Pasteur, the famousscientist.
3. Adding Vitamins: Before homogenization, vitamin D is added to all milk. Vitamin D combined with the calcium that naturally exists in milk help gives us strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our eyesight.
4. Packaging Milk: Milk is now ready to be packaged. Milk is pumped through automatic filling machines direct into bags, cartons and jugs. The machines are carefully sanitized and packages are filled and sealed without human hands. During the entire time that milk is at the dairy, it is kept at 1° - 2°C. This prevents the development of extra bacteria and keeps the milk it‟s freshest.
5. Storing: Milk is delivered to grocery stores, convenience stores and restaurants in refrigerated trucks that keep milk cooled to 1° - 4°C. The stores take their milk and immediately place it in their refrigerated storage area. Because fresh milk is so important to our diets, dairies, and our health.
Quality Policy: The motivated and devoted work-force of AMUL- are committed to produce wholesome and safe foods of excellent quality to remain market leader through deployment of quality management systems, state-of-art- technology, innovation and eco-friendly operations to achieve delightment of customers and betterment of milk producers.
Quality of Life: Assured market for their milk and daily income round the year from milk has improved the quality of life of farmers. The role village dairy co-operative societies in the over all development of the villages have brought better social infrastructures in the villages such as roads, communication system, schools, health centers, water facilities, banks etc.
Concept:The marketing concept holds the key to achieving itsorganizational goals consists of the company being moreeffective than competitors in creating, delivering andcommunicating customer value to its chosen target markets.Marketing starts with the determination of consumer wants andends with the satisfaction of those wants. The concept says thatany business should be organization around the marketingfunction, aningticipating and stimulating and meetingcustomers need.The marketing concept rests on four pillars and they are:1. Target market.2. Customer needs.3. Integrated marketing.4. Profitability.
• AMUL has also its own marketing concept. AMUL targets all type of customers like babies, children, young customers and old age customers etc. Amul try best for satisfying needs by providing good quality products.
Marketing Mix:The marketing mix, which is set of four elements orfour “P” of marketing are as follow: 1.Product 2.Price 3.Place 4.PromotionSame as four “P” there is also four “C” of marketing. 1.Customer solution 2.Cost 3.Convenience 4.Communication
PRODUCT:• A product is anything that satisfies needs or wants and can be offered to the market for exchange. A product can be a goods, services without product there is no marketing .This includes product variety, product design, packaging, quality, brand name, size etc.• AMUL produces and sell i.e. Milk, It has to plan its product very carefully so that the consumer gets only good quality products. There are various products marketed by GCMMF.
Price : The prices of products of Amul are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of Amul products. The price of the products of Amul are also decided by the GCMMF .The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the price of Amul products . However, the price is inclusive of several elements like: Cost of milk. Labour cost. Processing cost. Packaging cost. Advertising cost. Transportation cost. Sales promotion cost. Taxes etc. The GCMMF considers all this cost. Aspects and set them up in pricing structure to decide the selling price of milk and milk products.
Promotion: IT includes a variety of techniques including advertisement, sale promotion, public relations and personal selling that are used to communicate with customers and potential customers. Television is the best media for advertising in the local areas .Hoardings designed on the creative basis attract the customers more.
Place:• Place refers to marketing activities that make products available to consumers at the right time in a convenient location. Place refers as distribution Channels .IT is the process of moving products from the producer the consumer.• Amul has developed federation and Amul parlours located in several parts of country. Amul have managed to create more than 2300. Amul have identified certain potential locations such as Railway, Airports, universities, and shopping malls. The GCMMF handles the workers relating to Managing of stocks and distributors to in the country.• Thus GCMMF looks offer the disbursement of products to the various Marketing channels.
Market segmentation:• Any commodity has not a single Market. But it has a composite Market which can be divided on the basis of age, gender, preferences etc. The process of dividing a market into distinct groups of buyers is called market segmentation. Market segmentation may be defined as a process of dividing a Market into different sub- markets on the basis of some definite criteria .• At Amul, since marketing activities are handle by the GCMMF, market segmentation is also decided by GCMMF. Generally, Milk products like Butter, cheese are also popular in the all age group. Hence they are segments at the national level. Milk products like chocolates and milk powder are segmented on the basis of age. The GCMMF conduct the market survey to know demand for the products of Amul in the Market and then accordingly determines the market segments, defines the target market.
Amul Kool Chocolate Milk Nutramul Energy Drink Kids Amul Kool Millk Shaake Women Amul Calci + Utterly Delicious Pizza Youth Amul Emmental Cheese Amul Cheese Spreadsv Amul LiteCalorie Conscious Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk NutramulHealth Conscious Amul Shakti Health Food Drink
PRODUCT LIFE CYCLE STAGES:A product passes through distinct stages during itslife in market, each posing different challenges,opportunities and problems .Profits riseand fall at different stages of the product lifecycle. There are four different stages of product lifecycle, namely:1. INTRODUCTION STAGE.2. GROWTH STAGE.3. MATURITY STAGE.4. DECLINE STAGE.
• Different products of AMUL are in different stages in the product life cycle.• Products like milk, butter, chocolate and cheese are in the maturity stage, while ice-creams, chocolates and shrikhand are still in the growth stage.• On the other hand, products like milk powders, infant food, frozen food items and mix are in introduction stage.• The company adopts aggressive selling techniques for those products which are in the introductory stage, while very less promotional programmes are carried out for those products which are in the growth or maturity stage.
MARKETING &GCMMF: GCMMF is India‟s largest exporter of dairy products. It has been awarded as a “Trading House” status. GCMMF has received the APEDA award from the government of India for Excellence in dairy products Exports for the last 11 years. GCMMF is India‟s largest food products Marketing Organization. It is a state level apex body of milk co-operatives in the Gujarat which aims to provide remunerative returns to farmers and also serve the interest of consumers by providing quality products which are good value for money.
Marketing Research:• “Marketing Research is the systematic design collection, analysis and reporting of data and findings relevant to a specific marketing situation of the company.”• Amul performs the marketing research mainly to launch a new products in the market. The purpose is of checking the validity of the new products in the market for the local new. Amul conducts the market survey by appointing business administration students for conducting the market survey. Extending policy of the new product launched, Amul has recently launched the energy drink named “STAMINA” specially targeted to the people who are playing sports daily.
Introduction : According to SCOOT CLOTHIER AND SPRIGGEL Human resource management as the branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual between employer and employees and effective moulding of human resources as contrasted with physical resources.
• Personal (Human resource) management plays a very important role for any organization. The firm having all types of resources like machines, materials, money, information etc. will not be success in business without effective manpower. Human capital is the greatest assets of business enterprise and manpower management is the most important and crucial job because the managing group is the heart of the company.• Human resource department plays most important role in establishing good relation and harmony among all.
MAJOR FUNCTION OF HUMAN RESOURCE DEPATMENT:1. RECRUITMENT AND SELECTION.2. TRAINING AND DEVLOPMEN.3. PERFORMANCE APPRAISAL.4. SALARY AND WAGE ADMINISTION.5. EMPLOYEE TURNOVER.6. COMPENSATION.7. INDUSTRIAL RELATION.8. FACTORE ACT.9. INDUSTRIAL DISPUTE ACT.10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS).
RECRUITMENT AND SELECTIONRECRUITMENT:There are two types of Recruitment sources followed by Amul: EXTERNAL SOURCES. INTERNAL SOURCES. INTERNAL SOURCES: Internal sources include personnel already on the payroll of the organization. Present Permanent Employees. Employee Referrals Former Employee EXTERNAL SOURCES: These sources lie outside the organization. In AMUL they consider following sources of recruitment. Campus Interview Unsolicited Application. Application Blank. Placement Agencies.
RECRUTMENT POLICY OF AMUL:Entry level qualification:Below officers cadres:1. S.S.C / H.S.C Attendant Operator – Dairy (AOD) – G Gr.Worker. Taken as apprentice under trade apprentice Act 1961 2/3 yrs Apprenticeship, then based on their appraisal report, selected as temporary worker. After total 5yrs of work, may be selected as G-Grade Worker.
2. Professional Qualification E/F Grade Worker (Boiler Attendant).3. BA / B.COM / M.COM / M.A (general) MSW / MRM /MRS M.E_Biz of Gujarat vidyapeeth and C Grade Worker similar Non – University Institutions.4. B.Sc / M.Sc / Diploma Engineers B Grade workers. Apprenticeship Lab assistant for 1yr 3 months for B.SC & M.SC; 1yr for Diploma Engg. Then 2/3 yrs as trainee technician, than based on appraisal Appointed as Technician B Grade.
5. BBA Management Trainee for 1yrs Jr. Assistant.(a) M.SC ( Agriculture ) /MRS /MRM /MSW /MLW/MBA/ B.Tech (DT ) / MCA / M.E –Biz. ( From recognized University ) 1 yr as a trainee then appointed as senior officer.b) Inter CA /Inter ICWA / BE 1 yr as training period, then appointed as Dy. Sup. Deputy Superintendent(c) CA/ICWA Superintendent NO training period, direct appointment. However, in case of fresh recruitment of candidates with exceptional qualification form reputed Institutions such as IIM/IIT/IRMA Central Institution, consideration for appointment to Higher Grade be given due weight age, not withstanding the above minimal requirements.
SELECTION: Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.
• After selection, the employees generally have probation period. In AMUL probat ion period is different for different type of employees.• Probation period for officers is 12 months, 6 months for clerical employees and 3month for workers.
TRAINING AND DEVLOPMENT:• Definition: is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.• Training is the process where the work related knowledge, skills and attitude are given to new employees. By which they aware the policies rules and increase technical and manual efficiency and create of responsibility. AMUL has accepted three methods for the training:1. On the job method .2. Off the job method.3. In house training.4. Out house training.
PERFORMANCE APPRAISAL:• Performance appraisal is the process of evaluatin g the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc.• The AMUL adopts the following appraisal system Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated by Check list Method of Performance Appraisal. These are a various method used to appraise the performance of an employee.
In Amul the following methods are used: Self appraisal: If individuals understand the objectives they are expected to achieve the standards by which they are to be evaluated they are to a great extent in the best position to appraise their own performance. In this method employee himself. Manager‟s Appraisal: The general practice is superiors appraise the performance of their subordinate. Other supervisors, who have close contact with employee „s work may also appraise with a view to provide additional information.
• A higher – level manager appraise the employees for their performance. In Amul various attributes consider for the appraisal of employee. Job knowledge. Work output. Quality of work. Interest in work. Initiatives. Past records. Seniority.
This appraisal is also the rating scale.Method appraiser also appraised employeeby following: Outstanding. Good. Satisfactory. Poor.
25%53 50%100%Not allowed • The overall assessment is done through above rating and also the comment of reviewing officer is included. Apart form this the performance in liked allowance is provided in relation with performance that is: 25% 50% 100% Not allowed. • This is provided by and under knowledge of under Managing Director Generally in Amul on base of performance appraisal employee of managerial level gets specials allowance. While for workers they get promotions.
WAGES AND SALARY:• common method is followed for the wage a nd salary administration according to “Muster roll “.• Timekeeper sends that muster roll to the account department for attendance of each and every employee. This will analyze and entered in the computer.• After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.
Vision: GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long life with customer focus and IT integrated. The network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving several co- operatives. GCMMF shall also create markets for its products in neighboring countries.
Mission: We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through co-operative networking, we are committed to offering quality product that provides best value for money.
Threat of new entrants Is high because There are no entry barriers Competitive RivalryBargaining Power Bargaining Power of Customers is is High due to of Suppliers is low High because of Other brands and because the suppliers Various Are rural milk competitors Local players producers Threat of substitutes is high because of availability of Other products
TOTAL QUALITY MANAGEMENT:• In 1994 AMUL had embarked on the Total Quality Management and in 1999 received the Rajiv Gandhi National Quality Award for the year 1999, India‟s premier recognition for quality. Continuing to learn their employees have consistently striven to maintain improved product and service quality at each stage of the value chain.• More than 25000 Kaizens small improvements in work areas-were made by employees in different areas like cost cutting, time saving and process improvement. To ensure minimum wastage and maximum productivity and quality, house keeping initiatives have been zealously pursued at the Federation offices, Warehouses and Distributor points.
• Learning from employing Total Quality Management principles have been cascaded to both the member dairies as well as distribution channel members. Workshops on Statistical Quality Control have been conducted across the member dairies to achieve total quality in the production process.• On of AMUL‟s most remarkable achievements has been creation of more than 225Quality Circles across the length and breadth of the country. The federation‟s wholesale dealers meet every month in these quality circles and discuss and resolve distribution problems and improve their distribution process.• Amul continues its commitment on improving the competency of its professional managers through its Competency Based Training Programmes which builds both generic and functional skills through in-house, customized training programmes.
• Another unique feature of the TQM programmes at AMUL is the HOSHIN KANRI. The word Hoshin is made up of two Chinese characters “HO” and “SHIN” which means a methodology for strategic direction setting. In Hoshin Kanri, at the strategic level the company identifies certain strategic thrust areas and the entire organization, i.e. all employees focus their attention and energy to achieve the goals derived from these strategic thrust areas. At the same time, however, more routine and fundamental aspects of the business are also covered in Hoshin Kanri in addition to the strategic goals.
GCMMF’S SUPPLY CHAIN SUPPLY CHAIN AT AMUL: PROCESSING : After the union received the milk, it was tested and if it was found to be of good quality, it was sent for processing. If the milk was found to have high acidity, it was used to make buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For pasteurization, milk was treated at high temperatures for a specified. This helped in destroying the pathogens and in maintaining the quality. After pasteurization, the milk was sent through a separation machine. Here the cream was separated and skimmed milk was obtained. According to the demand, the unions packed the milk after it was pasteurized and sent for distribution. The cream was marketed as Amul Fresh cream
Distribution: GCMMF coordinated with various unions to get a regular supply of milk and dairy products. The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place. The VCS constantly monitored the deliveries of the milk collected and ensured that the milk was picked up on time. The unions monitored the supplies of milk and the distribution of finished products.
WARE HOUSING: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMFs philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operation.
MILK PROCESSING BLOCK :
DEFINITION OF VALUE CHAIN:• As per the above diagram there are the first components is raw material:• In our company the raw material milk, power for ice creams manufacturing, different types of flavors for ice creams, packaging material, sugar etc. required by the company for manufacturing. In this step GCMMF play a very important role it procures milk from villages and for this it develops three types of system and that is societies at village level, district level and state level.
• Second component is suppliers are the farmers and other raw material for manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and BHARAT ESSENCE.• This component is manufacturing process which is describe above. In milk process there are mainly five steps are required and i.e. homogenization, pasteuriza tion, adding vitamins, packaging, storing. In this process there are also requirement of warehouse for storing the product which already made and also for the raw material.
• The next step is the distribution channel in which GCMMF plays very important role in that. It handle all the marketing for AMUL products. GCMMFs products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets.• The next step is the customers in this category there are restaurants includes. Also there tail shops and whole sellers are included.• The last step is the consumer in which the actual hose hold are included in this category.
High Amul Ice-creamBusiness Amul Chocolate growth Amul Cheese Rate Amul Butter Amul Chocolate drink Low High Low Relative Market Share
AMUL is well known for its innovative hoardings. Find below a few:
1. what the full form of GCMMF?a) Gujarat Coordination Milk Marketing Federation.b) Gujarat Cooperative Milk Market Federation.c) Gujarat Cooperative Milk Marketing Federation.d) None of the above.
1. In the marketing mix, which is set of four elements or four “P” of marketing are?a) Product, Price, Place, Promotion.b) Price, Promotion, Palace, Production.c) Price, Promotion, Position, Production.d) None of the above.