Sumul project(dhaval bhakta)


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Sumul project(dhaval bhakta)

  1. 1. A PROJECT REPORT ON SUMMER TRAINING AT“SURAT DISTRICT CO-OPERATIVE MILK UNION LTD” (SURAT) Submitted To Shrimad Rajchandra Institute of Management and Computer Application Prepared By: DHAVAL BHAKTA F.Y M.B.A 1
  2. 2. INDEX: NO: content: PAGE: 1 Declaration 3 2 Certificate 4 3 Acknowledgement 5 4 Company profile 6 5 History 7 6 Turn over of the company 10 7 Organization structure 12 8 Human Resource management 13 9 Training and Development System 1410 Production department 1511 Marketing department 1612 Finance department 2013 MIS Department 21 2
  3. 3. Acknowledgement: I offer my sincere gratitude to SUMUL for providing the opportunity to workwith them. These experiences will rarely a strong foundation from my future carrier. I would like to offer my special thanks to respected Mr. Manish Bhatt,marketing executive and all the staff members of SUMUL for having giving me guidanceon the necessary the theoretical aspect and methodology for handling my work, withoutvaluable guidance this project report can not be made possible.Place: SURATDate: Yours faithfully ___________________ (DHAVAL BHAKTA) 3
  4. 4. Company profile: The Sumul district co-operative milk producer’s union ltd (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 populous Surat city and surrounding towns of it. Sumul is holding strong brand equity in surat district and command more than 70% of the liquid milk in surat city, to make the distribute system fast and the delivered milk in time they have as many as 6 milk transportation routes and 1531 agents (1386 regular and 145 full time) The area of operation of sumul is the entire district of sumul. The present milk procurement of 160,929,736 liters of milk annually makes it the third largest union in the state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is around 4.5 lack liters per day. This has necessary active development of “by product” market. Products so far introduced are paneer, ghee, flavored milk, sweet, shrikhand, lassi, butter milk etc.. Sumul consist of 13 board of directors one each of 13 talukas of Surat district and they from themselves elect the chairman. The total numbers of employees are about 1100 besides the contract workers. Hence, the Surat district co-operative milk producer’s union ltd, SUMUL is trade name and literally meaning sound process, came in to existence on August 22, 1951… The formal commissioning of the pasteurization plant on March 17, 1968 was a turning point fro sumul.History: 4
  5. 5. In the year 1939 Sardar Vallabhbhai Patel went and meet the farmers of Anandand told them that for the trade of milk the dairy was necessary. At that time a personnamed Tribhuvandas Patel came forward to take the leadership. During that time therewas only one dairy “POLSUN DAIRY” which belongs to British’s and they use to givevery less price for milk to the India Milkmen. In order to support the Indian farmers“AMUL DAIRY” was established in the year 1946 DDR. Kurien was appointed at thisdairy. Dr. Kurien along with Tribhuvandas Patel took the leadership. Indian becomes independent in the year 1947. in the meantime AMUL Dairy got orderfrom the WHO to produce milk Powder from buffalo milk. Dr. Kurien & Mr. Dalayafound the technique of producing milk from buffalo milk. After booking at this LalBahadur Shatri took the visit of Ajampur village and promised them to provide with moremoney fro the systematic development of the dairy industry. For the proper developmentof the dairy industry NDDB was established at Anand. NDDB started operation – 1programmer for all dairies in 1971-72 in the year 1977 operation Flood-2 started.Transportation machinery & pressmen of milk at low cost and give importance. In theyear 1990-operation flood-3 started. Here the farmers were, made aware about their right& responsibilities high productivity of milk at low cost & so the co-operatic ofdevelopment programs started. In the year 1998-99 two million tone of milk was produced in Indian & Indianbecomes the world’s first milk producing country. Which is more then 68 million ofAmerican. So it was called “white revolution” SUMUL has three chilling center at Bajipura, Navi Pardi and Uchchal forensuring safe delivery of raw milk to SUMUL where the milk is processed and pack intovarious type of liquid milk and by product to improved the nutritional feed given to thecattle at village level, the co-operative has establishment a cattle feed factory at chalthan.Sumul also has oil refined oil at the village of DCS level. 5
  6. 6. Sumul’s Mission & Vision Statement: “WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITHCOMMITMENT TO CONSUMER DELIGHT AND RESPECT F0R ALL. WEBELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGHTEAMWORK, TRUST & EXCELLENCE WITHOUT COMPROMISING OURHONEDTY AND INTEGRITY” It is quite obvious from the mission statement of the Sumul; the organization iscommitted to customer satisfaction and believes in providing the highest quality ofproduct to them. Infect, for ensuring highest quality product, it has already put intopractice TPM and TQM tools in the organization besides many Quality Circle (QC) andSmall Group Activity (SGA) operating in the organization to achieve the vision andmission.SUMUL VISION 2007: Vision is a dream created in our working hours of the organization. It can bedescribed as a living picture of future. It is inspired by the values that we cherish Year 2006 Year 2007TURNOVER RS.551 Corers RS. 522 CorersMILK PROCUREMENT 7,51,000 Liters 8,50,000 LitersMILK SALE 5,51,000 Liters 5,51,000 LitersQUALITY International std. ISO 9000 International std. ISO 9000 HAACCP HAACCPPRODUCTION COST Minimum Production cost Minimum Production costDISTRIBUTION Consumers oriented, Quick Consumers oriented, QuickSYSTEM and effective and effective 6
  7. 7. Work Area of SUMUL: Main Dairy Plant Cilling Centre km distance from surat Taluka/ Tahsil Name Cattle Feed Factory 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 eachvillage co-operative, where milk is speedily, efficiently and economically transportedtwice daily to its dairy plant and chilling centers for processing and marketing. Since the milk procurement system has been extended far and wide in the entiredistrict. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi, Chaved andDediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. Thechilled is then transferred to the mail plant at Surat railway station road. 7
  8. 8. Unit of SUMUL & Their Capacity:No. Chilling Center Establishment Capacity in LPD Distance from Surat (km ) 1 Sumul dairy 1951 500000 0 2 Bajipura 1975 300000 50 3 Uchchhal 1982 100000 105 4 Navi Pardi 1996 200000 25 5 Sumuldan 1970 300 mt/day 20 These 5 chilling center have provided equal opportunities of milk marketing tothe distantly inhabited tribal milk producers, which aids the economy of their milkproduction enterprise or else they would have been obliged to dispose of their milk to themiddlemen at very low price. These chilling centers were established with a view toimprove the quality of milk and ease pressure at its headquarters. A large plot of area wasbought while establishing Navi Pardi Chilling Center keeping in mind to shift the dairyplant from city, if the need arises in future.Turn Over of the Company: 600 500 400 300 200 100 0 94-95 95-96 96-97 97-98 98-99 99- 2000- 2001- 2002- 2003- 2004- 2000 01 02 03 04 05 From the study of the above diagram, we can see that Sumul has made a continuous progress in their profit making figures. The present profit of the firm is 48 crores more than the profit of the previous year. Growth Path of Sumul Products: 8
  9. 9. Products Year Milk distribution in bottle 3-5-1968 Establishing member of GCMMF 9-7-1973 Milk distribution in polybag 7-12-1978 Butter milk distribution in polybag 1-6-1987 Whole milk (SUMUL YA) in bulk 1987-88 Whole milk (SUMUL YA) in 500 ml 1991 Homogenized toned milk in 500 ml 1994 Homogenized toned milk in 200 ml 1995 Flavor milk 1993 Paneer 1994 Sweets 1994 Shrikhand 1995 Masala Chaas 15-8-1999 Flavored milk in 200 ml pouch 15-8-1999 Pasteurized milk in 5 liter pack 1998 Masala chass, methi chass 2000 Pizza & Ice-cream 2001 Rasgulla, Gulab Jamun,Sugar & Cow milk 2002 Tea 2003 Glabletop Packing for Milk (Plane & Flavoured) 2004 Buttermilk in ESL Packing 2005 Cold Coco 2005SUMUL Product:milk:Pure ghee:Paneer:Flavored milk:Butter milSales Volume (2007) : Name Sales (liters) Whole Milk 1,50,000 Sumulya 1,00,000 Delite 1,30,000 Standardize Milk 2,50,000 Cow milk 20,000 9
  10. 10. Organization Structure: Chairmen Board of Directors General Manager Assistant Manager Senior Executive Officer Junior Executive Officer Senior Assistant Junior Assistant Workman Workman Workman 10
  11. 11. Human Resource management: The main activities of this department are selection, training, recruitment, andwelfare actives. To diffuse the effect of Global Competition, Sumul has adopted the latestconcepts of management practices and provided appropriate training with the help ofleading institute from time to time for up-gradation & development of its HumanResource. Some of the efforts of Sumul to achieve this are : Employee Personality Development (Attitude, skill & Knowledge) 1995 Self Development (Self management Leadership, Meditation) 1995 Total Quality Management, QC, SGA, Kaizen, SQC 1996 Total Productive Maintenance 1999 Meditation Hall 2000Recruitment: Sumul as such dose not has a well-defined recruitment policy. Recruitment isbasically done by HRD department in consultation with the concerned department forwhich new employee is required. it is not a regular event as recruitment is done onlywhen there is any vacancy or some requirement comes up in the organization. All thenew employees must meet the minimum experience and qualification criteria as set bypersonnel department. 11
  12. 12. Training and Development System : “ To bridge the gap between job requirements and present competence of an employee ”Need for Training: 1. Job Requirements. 2. Technological Changes. 3. Organizational Viability. 4. Internal Mobility 5. Organizational Viability. 6. Internal Mobility Training is given in 3 Categories as : 1. Management Training. 2. Office Training 3. Senior Executive Training The management training is given for 6 months. Officers and senior Executives attend the management development programmed organized by the institute. Training is not uncommon in Sumul. It has an elaborate training program to make employees acquire new skills and knowledge. Both internal and external training is carried out as and when required. Following are the data of internal and external training programmed conducted by Sumul in the last five years. 12
  13. 13. Production Department : 1. Sales / marketing department is sending daily demand to the production department as per demand market department. 2. FROM Gujarat co-operation milk marketing federation every week sending demands of Amul products. 3. According to satisfy both production department prepare their production plane schedule. Production plan schedule generates raw material requirements packaging material & it contain utilize requirements Activities of Production Departments: 1. Production of planning 2. Material requirement planning 3. Store finished goods and raw material 4. Quality control 5. Packaging 6. Painting of pack product 7. Transport to Market place 8. Washing and cleaning of equipments, regular maintenance of machine and other equipments. 13
  14. 14. Hierarchy of Marketing Department: Senior Executive Officer Senior Executive Junior Executive Senior Assistant Junior Assistant WorkmenHuman needs, human necessities have no end. The aim of business activity is to acquirewealth, then to convey it into desired forms and to make the final product available for 14
  15. 15. exchange for the satisfaction of human needs. These all activities fall under industrycommerce and trade. These three branches have one common function i.e. exchangefunction. This important and powerful function is known marketing. ‘Marketing is a Social management Process by which individuals & groups obtain what they need & want through creating, offering & exchanging products of value with others.’Sumul’s Milk Marketing System: Sumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths and though regular and assured twice a day supply of milk to 1662concessionaires (Agent) and 198 institutional buyers, through 85 contractors’ routevehicles. There is guaranteed cash inflow of the sales proceeds on day-to-day basis andsafe return of crates etc. to the Dairy. The standardized / pasteurizes milk is dispatched tothe city twice a day to the network of concessionaires (Selling it on behalf of Sumul on acommission basis). The institutional buyers are supplied milk in sealed cans. Contractor’strucks carry milk from the Dairy Plant to the places of these concessionaires who catersto the domestic demand of milk in their respective earmarked areas. Both economic and operational advantages of keeping the sales-counters atthe residential places of the Agents are distinct as:  No creation or maintenance of these sales-counters is involved.  All the security of milk, material and money.  Operational convenience to deliver milk and off tack of crates etc. from these permanent places at any time, including odd hours.  Utilization of Agent’s family, labour and residential place and hence very economic operation for them and the Dairy.  Familiarity of the Agents with locality and vice-versa and hence smooth dealing under mutual confidence. The institutional buyers include hotels, restaurants, canteens, hotels, charitableinstitutions, milk vendor’s etc. who enter into contracts for purchase of milk for the entireyear and receive milk as per the contract, twice-a-day, in sealed cans, through thecontractor’s milk routs and make the full payment to the Dairy Representative just at thetime of delivery of milk to them. 15
  16. 16. The contractor are responsible for any shortage, breakage OR pilferage of milkand material occurring during transportation. While the Agents hold the responsibility ofany such incidence occurring at their level. There is regular, assured and smooth in-flowof cash from milk sales from the Agents to the Dairy’s Cash Collection Centers on day-to-day basis without involving a bank for collection of sales-proceeds and maintainingindividual accounts. The Agents sale milk delivered to these Agents during the day andthey develop the sale-proceeds daily at the nearest Cash Collection Centers of the Dairy.The Dairy runs these Centers for all 365 days in a year for regular day-to-day receipt ofcash amount. For any default on the part of the Agent, such as non-payment or short-payment of cash, the Dairy takes corrective action almost instantaneously. Sumul also encourage a small Savings Scheme for the Agents by deducting aparticular amount from the commission every month and transferring the same into theirdeposit amount, thereby allowing the deposit to build-up every month, which getsadditional security to the Dairy as well as to Agents. Any amount in excess of threetimes, the realization from the daily sales can be withdrawn by the Agent any time duringthe year. Currently the commission of 40 paise per liter is paid to the Agent.Channel of Distribution : Dairy Agent Customer 1. Direct 2. Indirect 1. Direct Distribution Channel : Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar. 2. Indirect Distribution Channels : Sumul is distribution various products that are milk & other than milk there are 3 major distributors in Surat city & 19 distributors in rural areas. All dairy co-operative society acts as a distributor for all Sumul products. In Surat city Sumul is creates 3400 outlets; Sumul has their own 44 milk parlors which are in direct contact with the customer. 16
  17. 17. Information technology growing very fast and Sumul always ahead in technology. Customer should be got advantage of these technologies for this reason Sumul Started online shopping facility to Direct Customer as well as Distributor and parlor also net facilities like. Direct Customer Distributor and parlor www.b2bsumul.comMarket Share: In dairy industry Sumul Dairy is wide term. We are the market leaders in almosteach dairy product in Surat District. Products Share Ghee 70% Paneer 50% Shrikhand 15%System of Approaching the Customers : Sumul is doing the following activities to Approach to its customers. Advertisement By giving the advertising and to a local TV channel by hosting famousanchor advertising through during festival Seasons. Paneer Show In this show different items made from paneer are sold at a discount rate. Healthy Baby Contest In order to popularize milk and milk products, Sumul organize every yearSumul Healthy Baby Competition. Healthy Baby Contest is unique contest of its kind insurat. It is conducted each year since 1992 successfully. Education Programs The firm also gives information to the cool children about cow milk byvisiting different type of schools in Surat city. House Visits The companies also visit different houses and collect information aboutdifferent products of the company and also take suggestion from the customer. 17
  18. 18. Finance department: Finance management is that managerial activity which is concerned with the planning andcontrolling of the firm financial resources. Still today it has no unique body of knowledge of its ownand draws heavily or economic for its theoretical concept. “Finance management means the use of such managerial function as planning and controlto undertake finance function.” - Earnest Walker Sumul is the co-operative so it has not special financial department. Sumul require a lot offunds for meaning its working capital needs and other obligations. It manages its working capitalneeds through internal funding only. There is regular, assured and smooth in flow of cash from milksales from the agents to dairy’s Cash Collection Centers on day-to-day basis. The dairy runs therecenters for all 365 days without fail. Intact there is a separate cash recovery department in theorganization to look exclusively this aspect. Because of its excellent cash collection system. Sumulgenerally does not face any difficulty in dispensing amount to the producers every month andmeeting other obligations. However, for the expansion work and setting up new projects, it takes loans from NDDB 18
  19. 19. MIS DEPARTMENT: Project Initiation:The SUMUL computerisation project commenced with a General Requirement Study for15 days in December 1998. The purpose of this study was to understand Sumul’s presentlevel of computerisation, potential areas for further computerisation, volume oftransactions and hardware / software requirements. The General Requirement Studyreporti was submitted in January 1999 and the project formally began on 1 February1999.During the initial stages, NCDFI and Sumul jointly worked out the framework for projectexecution including the nomination of the team members and coordinators from both theorganisations. Shri Satyen Naik, Assistant Manager (IS – Information Systems) ii wasidentified as Sumul’s Project Coordinator and Shri Nilesh Darji was nominated as theNCDFI’s project manager. The NCDFI’s team deployed at Sumul comprised of threesoftware and technology experts. They were duly supported by two computerapplications experts and one management expert from the NCDFI’s head office. Sumul’sIS department is led by one IS expert and supported by two to three employeespossessing operating skills and knowledge in IS. Application and Database Migration: 19
  20. 20. The NCDFI has successfully carried out the process of application and databasemigration to the latest Oracle Developer 6i front end and Oracle database 8.1.7. Thedatabase objects, forms, reports and other related front end objects were migrated to thelatest version.Testing:Applications developed by NCDFI were tested following three major criteria:Data Input – To test edits and controls for entering data such as validations, crossreferences and check digits.Data Processing – To test that programs work properly, ensure that data tables areaccurately updated and internal calculations are correct.Data Output – To test that reports are in the proper format and provide the rightinformation.Live data was used in all the tests.During the testing process, all data entry screen fields were tested for edits and for thedata they accept. Similarly, system tables and the database itself were tested. Volumeperformance was tested both for peak and normal workloads. Tests were also carried outto assess response time, system back up, recovery features and generally to ensure thatthe system performed to specifications.In addition, tests were carried out in other areas such as data conversion, hardware,operating systems and security. 20
  21. 21. Implementation:Initially, all the new modules were implemented in parallel with the existing system.This enabled a smooth transition from the old system to the new system. This methodalso demonstrated the advantages of the new system over the old system. On the otherhand, a major draw back was that during parallel run, each job had to be done twicedemanding extra time and effort of the users. 21
  22. 22. Backup procedures:Backup procedures were evolved along with application deployment. Over time theprocedures were revised and suitably streamlined. The effectiveness of backup wastested through mock runs. The schedule adequate to secure Sumul’s database wasfinalised as per the details given at Annex C, page 23. This backup schedule wasconsidered the best fit solution given the constraints of expenditure on resources forbackup on the one hand as well the critical nature of the data to be retrieved on the other.Volume of computerized deployment:Sumul’s computerised system is pivoted around 10 major applications comprising on anaggregate 351 data entry forms, 87 query forms and 592 reports. It is estimated thatmore than 5000 records are created each day in the computerized system.Benefits of computerization:It is difficult to compare the gains in computerisation when the new system offers on lineintegrated transaction processing solutions as compared to the old systems that weregenerally stand alone and batch processed. Therefore, viewed in the context that the newsystem offers information to all those who need it (and are authorised to access it) at anygiven point in time, the benefits multiply very rapidly. Some of the important benefitsare explained below.Data is captured at source. Hence, there is no duplication in data entry.Data is drawn from a central and secure database. Hence, there is no scope for dataredundancy. 22
  23. 23. Everybody has the ‘same latest information’ – since data is made available from acentralised multi user database which is updated the moment any transaction takes place.Security and access features in an integrated system can be administered with greaterease and reliability.Data archiving and data mining becomes easy.The on line database systems offered by NCDFI incorporate an audit trail so that unlikesome of the other accounting software offered by reputed firms, no employee can changefinancial or any other data or attempt to make back dated entries without a proper log.And finally, while the list of benefits can fill a few more pages, suffice to state that noemployee who has due authorisation and access can ever say, “I don’t know or, I don’tknow where to look for that piece of information!”In monetary terms, the investment made by Sumul in hardware and softwareduring the 3 year project period was about Rs. 60 lakhs. A profile of how Sumul’shardware changed between the start and finish of the project is given at Annex D,In addition, Sumul reimbursed to NCDFI less than Rs. 20 lakhs (all inclusive i.e.inclusive of TA/DA and any other incidentals). In other words, the annual outflowby Sumul for the computerisation project was under Rs. 30 lakhs per year. Thisannual investment for computerisation works out to 0.08 percent of Sumul’sturnover of Rs. 353 crores for 2001-02. Considering that Sumul would have anywayhad to invest in hardware and software, the cost to Sumul for seeking NCDFI’sassistance works out to less than 0.02 percent of its turnover for 2001-02. 23
  24. 24. Areas for computerisation in the next phase:Considering that it would be necessary to first have a basic database system in place, thescope of the project did not include development of the following computerised systems:Production planning and control.GIS (Geographical Information System) for animal census and health care, veterinaryservices and rural demography.GIS for marketing of milk and milk products.Asset management.Establishing dedicated links between chilling centres and the central server.Web deployment of applications developed in client server technology.Project overrun:General Study Report for Computerisation at Sumul, January 1999 NCDFI, Anand. Shri Satyen Naik was Senior Executive (Systems) in Sumul during the commencementof the project. As a recognition of his hard work and contribution to the progress of theproject he was promoted as Assistant Manager (IS) in early 2002.NCDFI has successfully completed the following assignments in the area of InformationTechnology:  General systems study of Sabarkantha District Cooperative Milk Producers Union Limited, Himatnagar, January 1995. 24
  25. 25.  Systems study of Shri Sardar Vallabhbhai Patel Regional Oilseeds Growers Cooperative Union Limited, Idar, January 1995.  General systems study of Baroda Union and Sugam Dairy, August 1995.  Management Information System based on Client Server technology for the National Dairy Development Board, March 1996 - July 1997.  Management and Transaction Processing Systems based on Client Server technology for Dhara vegetable oil operations, National Dairy Development Board - November 1995 to March 1998.  Turnkey project for computerising the activities of the National Tree Growers Cooperative Federation Limited followed by maintenance support, December 1995 - March 2000.  Turnkey project for computerising the activities of the Surat District Cooperative Milk Producers Union Limited, Surat - since December 1998.  Turnkey project for computerising the activities of Institute of Rural Management, Anand - January 1999 to June 2002.  Turnkey project for computerising the operations of Mother Dairy, Gandhinagar (A unit of GCMMF Limited, Anand) - July 2001 to June 2003.NCDFI has also designed and developed some very innovative on line software for itsown use. Most of these applications are deployed on the web using Oracle 9i ApplicationServer;  Document Management System  Financial Accounting System  Integrated Time Attendance System, Personal Information & Payroll Accounting System  Computer Aided Testing and Evaluation  Extensive on-line documentation  Centralised Address Directory  NCDFI has recently started converting existing applications to the Java based technologies so as to achieve better user interface, speed and accessibility. 25
  26. 26. Conclusion: For the requirement of completition of 1 st year of B.B.A. (I.T.M) Wehad undergo one months summer training at “SURAT DISTRICT CO-OPERATIVE MILK UNION LTD. (SUMUL), Surat.” With the objective togain Practical knowledge and experience in the company and to study theactivities of different functional area. It was good experience at “SUMUL” studying about the differentdepartment. On the other hand going for a market survey was an invaluableaddition to my Knowledge. To conclude in a single student, I personally feelthat four weeks [1 month] Training at “SUMUL” has added many features tomy knowledge wing which will definitely help me to achieving a successduring my future and career flight. 26
  27. 27. i ii Thank you