Akshaya Patra.docx

A TRAINING REPORT ON “ STUDY OF COST CONTROL IN AKSHAYA PATRA FOUNDATION” At “The Akshay Patra Foundation- Bhilai” Submitted in Partial Fulfillment for the Award of Degree of MASTER OF BUSINESS ADMINISTRATION Of Chhattisgarh Swami Vivekananda Technical University, Bhilai (C.G.) Session 2017-2019

Submitted by Ankita Shukla Uni. Roll No.: 500107617008 MBA III (B) Semester, 2018

DEPARTMENT OF MANAGEMENT BHILAI INSTITUTE OF TECHNOLOGY (An ISO 9001:2000 Certified Institute)

Bhilai House, G.E. Road, Durg – 491001(C.G.), India

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Declaration I student of MBA 2nd semester of management “Bhilai Institute Of Technology, Durg (C.G.)” hereby declare the training report on a study on analysis of cost control in “Akshaya Patra Foundation” at the “Akshaya patra, Bhilai” is the record of original work done by me and the matter enclosed has not been submitted for the award of any other degree or diploma in the university or anywhere-

Ankita Shukla Uni. Roll no. 500107617008 Date: Place: The Akshaya Patra Foundation

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ACKNOWLEDGEMENT I would like to express my special thanks to our head of department of master of business administration “Dr. Sanjay Guha” and I also like to thank my gratitude to my training in charge “Vikash Yadav” sir who give me the golden opportunity to do the wonderful training on the topic a study on analysis of cost control in “Akshaya patra Foundation” at the “Akshaya patra Foundation, Bhilai” how they control there cost and all we came to know about so many things we are really thankful to them if the knowledge polishes it and adds lustre and brilliant to it-

Ankita Shukla Uni. Roll no. 500107617008

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INDEX S NO. 1. 2.

PARTICULARS Introduction History of the Akshaya patra foundation

PAGENO. 5-6 7-8

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Akshaya patra Foundation, Bhilai

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4.

ISO Certified Kitchens

10-11

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Mission and Vision

12-13

6.

Awards & Recognition

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7.

Objective of the study

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8.

Cost Control

16-24

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Conclusion

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References

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REMARKS

FOUNDER OF AKSHAYA PATRA FOUNDATION

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INTRODUCTION OF AKSHAYA PATRA Akshaya patra is a Sanskrit word refers to the vessels which never exhaust a vessel that would give unlimited food for education. The Akshaya patra foundation (TAPF) is the world’s largest non profit organisation run mid day meal programmes serving whole some school lunch to over 2.8 million children in 13,839 school across 16 states in India, Andhra Pradesh, Assam, Chhattisgarh , Gujarat, Odessa, Karnataka, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh Tripura, Maharashtra etc. The Akshaya patra Foundation is not for profit organisation. It was established in Bangalore India which Strives to eliminate Classroom hunger by implementing the mid day meal scheme in government school and government aided school. The Akshaya patra foundation also aims at countering malnutrition and supporting the right to education of socio-economically disadvantaged children. Since 2000, Akshaya patra has been concerting all its efforts toward providing fresh and nutritious meals to children on every single school day. We are continuously leveraging technology to multiply our reach. The state of the art kitchens have become a subject of study and have attracted carious visitors from around the world. Our partnership with the government of India and various state Government, along with the persistent support from corporate, individual donors, and well wishers have helped us to grow from serving just 1500 children in 5 schools in 2000 to serving 1.7 million children in 14173 schools. The growth of the Akshaya patra foundation a quick overview On 28 November 2001, the supreme court of India passed a mandate, “cooked mid day meals is to be provided in all the government and government – aided primary school in all the states and Akshaya patra was also called upon to provide testimonies to the supreme court. By the time the ministry of human resource development – Department of school health and education extended its support to the initiative in 2003, Akshaya patra was already reaching out to 23000 children. Today Akshaya patra has 38 kitchens spread across 12 states in India, various state governments and generous supporters.

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History of the Akshaya patra foundation Looking out of a window, on day in mayapur a village near Calcutta, His divine grace A.C. Bhaktivedanta swami Prabhupada saw a group of children fighting with stray dogs over scraps of food. From the simple yet near breaking incident was born a determination that no child within a radius of ten miles from our centre should no hungry. His inspiring resolve sowed the seeds of the Akshaya patra foundation. With the vision no child in India shall be deprived of education because of hunger Akshaya patra started the mid day meal programme in June 2000 by serving mid day meals to 1500 children across five government schools in Bangalore, Karnataka. A humble beginning yet the initial days of implementation the programme was not a smooth sail. Soon come the helping hands of “Mohandas Pai” who took the initiatives of donating the first vehicle to transport food to the schools and Abhay jain who promised to bring in more donors to contribute for the further expansion of programme In partnership with the government of India and various state governments as well as philanthropic donors. The organisation is running the world’s largest mid day meal programme. Built on a public private partnership model, Akshaya patra combines and smart engineering to deliver nutritious and hygienic school lunch on every school day. Over a period of time a visible improvement in health of the children was witnessed along with increased enrolment, steady attendance and better concentration during class hours, the initial days of implementing the programme was not smooth sailing for the foundation the main concern was lack of vessels and vehicles to pack and transport the cooked food to the schools. ‘Mohandas pai’ and ‘Abhay jain’ two of the pioneer philanthropists of the foundation were instrumental bringing some relief. Mohandas Pai stepped in by donating the first vehicle to deliver food to the schools and Abhay Jain assured to get more donors to further the programme

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Once the mid day heal scheme was mandated centrally by the government of India in 2003 Akshaya patra partnered with the Government to serve cooked meals at the government schools. To able to work towards tackling classroom hunger in association with the government on the format of public private partnership was a welcome progression for Akshaya patra. This partnership works to words meeting the following objectives: 

Eliminating classroom hunger

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Increasing school enrolment

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Increasing school attendance

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Improving socialisation among castes

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Addressing malnutrition and

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Women empowerment

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Akshaya patra Foundation, Bhilai

The Akshaya patra foundation reaches out to over 1.7 million children in 14173 schools, across 12 states in India-

In the central Indian state of Chhattisgarh, our 150 certified centralised kitchen currently feeds 32000 children in 200 schools. This is the only kitchen in Chhattisgarh.

Akshaya patra places the highest emphasis on hygiene and cleanliness and operate through two kitchen models: Centralised and decentralised In the established in the Year 2009

The ISO certified kitchen in Bhilai started operating in January 2009. That time they feed 5000 children.

TAPF Bhilai ISO 22000: 2005 certified centralised kitchen.

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ISO Certified Kitchens

Our kitchen: A beacon of quality:

The Akshaya patra foundation operates based on a well crafted module that puts hygiene and quality on top of its priorities. We also believe that eating is not only for nutrition it is also for taste. We want children to relish what they eat and hence, we prepare a different dish every day to break the monotony Let’s see what goes into making every meal completely safe, nutritious and tasty at the same time-

Food Safety Management System: Akshaya patra’s Centralised kitchens are equipped to prepare meals for large scale feeding. A strict kitchen process is observed which includes certain mandatory routines to be followed by each member of the kitchen staff food safety management system are implemented in all the kitchens are it. Centralised or decentralised in order to handle, prepare and deliver food.

Food Safe Stainless Steel:

The cooking in centralised kitchen begins very early in the morning. All kitchens run by the organisation follow a scheduled menu. All cauldrons, trolleys, rice chutes dal/ sambar tanks, cutting boards, knives and other instruments in these units are sanitised before usage every single day all vessels used in the kitchens are made of food safe stainless steel of 304 grade which is capable of enduing high levels of temperature for long intervals.

Raw Materials:

The raw materials that procured are of the best quality and to ensure this supplier quality management system is implemented. This system further consists of a selection supplier qualification, supplier Rating and soon.

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Hygiene:

In order to make sure that none of the personal hygiene practises are missed out before the cooking begins, each staff member follows a routine hygiene chart. Daily shower use of clean uniforms, caps to cover the hair face masks to cover the mouth and nose area, gloves, gumboots, other protective gears and hand sensitisation and mandatory.

Recipes:

Standardisation of our recipes is an important factor while maintaining high levels of nutrition along with taste,/ in order to achieve these levels, a well – structured quality assurance programme is implemented at all stages of operations preproduction production and post production.

Quality control:

The quality control process in the organisation accepts raw materials only after thorough quality inspection so as to meet all the requirements of our raw material specifications which are generally adapted from food safety standards act 2006 (FSSA). Thirteen of the centralised kitchens are ISO Certified and the remaining kitchens are the process of the certification.

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Mission and vision Mission: No child in India shall be deprived of education because of hunger.

Vision: To feed 5 million children by 2020

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The NGO’s mission and vision is a direct derivative of its history. The vision of the Akshaya patra foundation clearly states the importance of food and education for a healthy and educated tomorrow. Though the NGO is primarily. Though the NGO is primarily focussed in implementing the mid day meal programme, it also places equal importance to education of children.

The mid day meal programme implemented by Akshaya patra endeavours to solve two of critical United Nations millennium development Goals (UN MAGs). MDG is to end poverty and hunger and MDG 2 is to achieve universal Education. The vision of the Akshaya patra Foundation “No child in India shall be deprived of education because of hunger”, addresses these two crucial challenges of hunger and education.

Akshaya patra wants to further extend the impact of this programme to many more children and steadily tread towards achieving the charity’s mission of feeding 5 million children by 2020 and thereby moves towards achieving the charity’s vision too. With the continued support from the stakeholders, the foundation is certain that it will be able to feed the millions of children in the country and pay a significant role in wiping out classroom hunger.

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AWARDS AND RECOGNITIONS

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The Nikkei Asia prize in the economic and business innovation category.

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C11 national lean six sigma award for successfully implementing six sigma techniques.

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Awarded the ‘Kalam Innovation In Governance Award’.

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AVA Digital platinum award for the film giving every dream a chance.

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Excellence in Health and Education category award at Global NGO 2017.

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Shru Madhu Pandit Dase honoured with the chanakya award as national achiever 2017 under social leadership category.

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PRCL collateral awards in multiple categories at Global communication conclave.

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Akshaya patra’s, surat Unit received C11 award for food safety 2016.

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Akshaya patra’s, vadodara Unit won C11 award for food safety 2016.

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Objective of the study 

To study the cost control in Akshaya patra.

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To study the cost control steps which is followed by the Akshaya patra?

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To study the cost control techniques followed by the Akshaya patra.

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To study Advantages of cost control.

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Cost Control Cost control is the practice of identifying and reducing expenses to decrease cost of production and it starts with the budgeting process. A finance officer compares actual results with the budgeted expectations and if actual costs are higher than planned management takes action. Cost control is an important factor for maintaining and growing profitability, Outsourcing is used frequently to control costs because many businesses find it cheaper to pay a third party to control to pay a third party to perform a task than to take on the work within the company corporate payroll, for example is often outsourced because payroll take laws change constantly and employee turnover requires frequent changes to payroll records. A payroll company can calculate the net pay and tax with holdings for each worker. This saves the employer time and expense. Cost control by management mean a search for better and more economical ways of completing each operation. Cost control is simply the prevention of waste within the existing environment. This environment is made up of agreed operating methods for which standards have been developed. “Cost control is defined as the regulation be executive action of the costs of operating and undertaking cost control aims at achieving the target of sales. Cost control involves setting standards. The firm is expected to adhere to the standards.” Deviations of actual performance from the standards are analysed and reported and corrective actions are taken. Cost control emphasis is on past and present cost control is applied to things which have standards. It seeks to attain lowest possible cost under existing conditions. Cost control is a preventive function. Cost control steps which is followed by Akshaya patra:1) Planning: - Initially a plan or set of targets is established in the form of budgets standards or estimates. 2) Communication: - the next step is to those whose responsibility is to implement the plan.

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3) Motivation: - after the plan is put into action evaluation of the performance starts. Cost is ascertained and information about achievements is collected and reputed. The fact that the costs are being reported for evaluating force. 4) Appraisal: - comparison has to be made with the predetermine targets and actual performance deficiencies are noted and discussion is started to overcome deficiencies. 5) Decision making: - finally the reported variances are received. Corrective action and remedial measures are taken or the set of targets is revised, depending upon the administration understands the problem. The management and control of the resources used in most commercial organisation leaves a great deal to be desired. Waste is growing at such an enormous rate that it has spawned a new industry for recycling and extracting useful materials. Materials are wasted in a number of ways such as effluents, breakage, and contamination, inefficient, Storage, poor workmanship low quality; pilfering and obsolescence. All these contribute to significantly increased material costs and all can be controlled by efficient working methods and effective control. Cost Control Instrument Use by Akshaya patra:1) Budget: - one of the most basic, common cost – control tools is budget. A budget is a layout of your revenue and how you allocate it to different categories of business expenditures. Companies often establish budgets annually. By discussing and returns on investment of non productive costs you incur over time. 2) Software integration: - Advanced software programs allow Akshaya patra to integrate accounting and budgeting process Akshaya patra use a dynamic budgeting system where they periodically review actual costs against projections. Doing so allows from periodic adjustments. Software tools help in analysing progress toward budget projections. A graph might demonstrate when a department or expense category ha s reached critical thresholds; for instance, if so, leaders can meet to review opportunities to reduce costs or cut out certain tasks. 3) Internal and external audit: - internal and external audits are additional cost control measures. An internal audit is a thorough review of budget utilization in reach department. An internal audit is conduct by Akshaya patra head office finance manager or control specialist. For an external audit conduct by ISO.

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Types of cost control:i.

Internal cost control :-

The process designed implemented and maintained by those changed with governance management and other personal to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, safeguarding of assets and compliances with applicable laws and regulations. The team “controls” refers to any aspects of one or more of the components of internal control. Internal cost control is designed, implemented and maintained to address identified Akshaya patra risk that threaten the achievement of any of the entity’s Objective of internal cost control:1. Transactions are executed in accordance with management’s general or specific authorization. 2. The recorded assets are compared with the existing assets at reasonable intervals and appropriate action is taken with regard to any differences. 3. All transaction is promptly recorded in the appropriate accounts and in the accounting policies and practices and relevant statutory requirements, if any, and to maintain accountability for assets. 4. Assets are safeguarded from authorised access, use or disposition. ii.

Eternal cost control

Various measures that effect a Akshaya patra operations, which are not enhanced by the government which effect the flow of money, a lease which restricts what a company can or cannot do with their office space and laws which prevent discrimination in the AkshayaPatara’s hiring procedure. An external food safety audit is done by ISO. External audits are a tool. They can provide evidence that your company produce food in a safe environment and that you are in control of your food safety hazards. Increasingly customers are demanding proof of food safety systems before they will buy food product. Successfully completing an external audit may be a condition of Akshaya patra customer contract.

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External audit also promote continual improvement of Akshaya patra food safety systems by identifying areas of weakness in your program. Cont control techniques use by Akshaya patra 1. Material control: - a system follow for checking that Akshaya patra has enough material in stock for its production knees. But neither is nor needs storing more than it because this would use capital unnecessarily a system for checking the quality of materials bough by supplier. 2. Budgetary control: - budgetary control is budget is an anticipated financial statement of revenue and expenses for a specified period. Budgeting refers to the formulation term. Thus budgetary control is a system which uses budgets as a means for planning and controlling entire aspects of organisational activities or parts thereof. 3. Labour control: - labour cost is a second major element of cost under the present political conditions with a restive labour in organised industry; it is very difficult to reduce labour cost. There for proper control and accounting for labour. Cost is one of the most important problems in Akshaya patra but control of labour cost presents certain practical difficulties unlike the control of material cost. The human element in labour makes difficult the control of labour cost whereas materials being in animate in mature could labour is the most perishable commodity and as such should be effectively utilise immediately. 4. Standard control: - standard costing is one of the prominently used systems of cost control. It aims at establishing standards of performance and target costs which are to be achieved under a given set up working conditions. It is a pre determined cost which determines what each product or service should cost under certain situation. Advantages of cost control:a. It helps the Akshaya patra to improve production. b. It helps to control unnecessary expenses. c. It is indispensable for achieving greater productivity. d. Cost control may also help a firm in reducing its costs and thus reduce its prices. e. If help to maintain the quality of food.

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Cost control in finance department An NGO to be considered credible entity has to follow established norms of financial transparency and accountability. In our aspiration to be a progressive or generation. We focus on transparency. To create a system which is accountable and robust. It is imperative. That each department and section of the organisation is transparent in its operation. TAPE complies with the international financial reporting standards (IFRS) and with the accounting standards issued by the institute of chartered accountants to India (ICAI). It is Akshaya patra endeavour to ensure that the donors are informed about the organisation’s mission, operations, other stakeholders and beneficiaries. This kind of transparency helps keep a healthy association with donors. Corporate are more interested in looking for not for profit organisations with which they can partner these non for profits are evaluated on comprehensive metrics. The importance gives to financial transparency. Akshaya patra have a strong audit committee is crucial to establish the accuracy of the financials. Internal audit though audit firm of good status contributes to the robustness of the system, alone with these audits we also provide and independent auditor’s report to further strengthen the reliability of TAPF financials. Financial integrity maintained in recording of transactions in the book of accounts build transparency and trust, segregation of government and donor funds by maintaining separate bank accounts while issuing utilisation certificates for grains provided by government is immensely helpful in keeping things on level. Akshaya patra maintain financial integrity and transparency even when we practise donor engagement and timely communication, the scrutiny when supported by donor audit done by donors or by professional firms. Only adds to our credibility issuing utilisation certificate to donor for funds spend by the NGO not only increases the trust but also ensures that the donor is aware of the exact way their contribution are spent. This strength and commitment has bought Akshaya patra a long way in channelizing TAPF energies to further TAPF mission. It also enhances TAPF reputation as a credible and trusts worthy organisation.

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Cost control process:Green receive note Entry creation (cashier) Admin (accountant) Invoicing Financial officer (on the basis HR, PO, actual bill signed voucher) Cheque created and signed by unit president and cheque released. 1) Follow a process and check the entire document before payment. 2) If any step of the process is skip than payment is not done.

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Cost control in production Cooking start early in the morning at 2 A.M. all kitchens run by the organisation follow a scheduled menu. All the centralized kitchens are equipped with cauldrons, trolleys, rice, dal/sambar tanks, cutting boards, knives and other similar equipment that are sanitized before usage. It is a process of manufacturing food or producing food for children who are actual hunger to feed whose hunger. In production process involve same menu for day by day prepare food, like dal , rise, sabji, pickles, pullave etc. In Akshaya patra daily prepare 10 cooker rise (100 kg per cooker), 2 cooker sabji (300 kg per cooker for 13000 children) these are include in menu to produce food in production process some step. Things to consider while preparing healthy food for children. 

Personal hygiene: - making sure our hands and surfaces are clean before during and after cooking food, hair should be tied, wear cook dress; clean all part of cooking area.

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Equipment hygiene: - all equipment should be cleaned immediately before and after using clean all the vessels which while using it. Containers, pipes, made from foxic material, nut and bolt, screw are tied, wash all vessels with bristle brush not water and detergent, then sanitizer and leave today.

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Raw material hygiene: - cleaning all raw material like rice, dal , vegetable etc, check out mashala and gravy which are used for preparing food .

Cost control process:Prepare attendance sheet Issue the material by the stores Receive material in production Start the production process. 1) Food prepare according to the attendance sheet. 2) Prepare limited food as per the requirement for the cost controlling.

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3) The production department is receiving the material they are store material with safty and hygiene bases. 4) In the production department have cool and dry store. 5) The material is properly utilized and they are not west the raw material. 6) If the raw material is escape than the production department is return to the store department.

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COST CONTROL IN DISTRIBUTION AND PACKING Akshaya patra Bhilai serves food to 200 schools catering to feed 32000 children. A route map is prepared and good is packed accordingly 11 routes each catering to 17 school averages, feedback is necessary to ensure that food in made in required quantity and is adequate feedback id necessary to ensure that food in made in required quantity and is adequate feed children. Contains to carry the food to the school are filled according to the number of estimated students expected to be at school today. A container carry a tiny receipt showing 100%, 75%, 50% and 25% which portraits the number of children having food and indicates the quantity till where the food is to be filled in the container. Also a batch number helps organisations to improve by knowing the person or machine responsible. The cooked food packed in specially made sterilized vessels which help keep the food warm for longer time. Cars are washed daily in the evening with products that are not harmful and does not contain any chemical that can have negative effects. Moreover, cars are again washed in the morning with water. The pack food in vessels or container and distribute to schools through vehicles when we start the distribution work, first we have to know whether the production work has been completed or nor, if this work is done then we start the distribution and packing work, it depends upon which are helpful for packing and distribution of food at the school and route. Before distribution packing of food consider some sheet which are mandatory for the head of department such as; 

Indent sheet:Indent is the document starting the requirement of material with the quantity required along with its specification. It is sent to the stores department which in turn procure the items. It is prepared by stores department under school instruction because teacher is give detail for indent sheet menu.

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Route list:-

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There is a total of 11 routes in the Akshaya patra. A list of all routes is created. In that list the root name, phone no. , direction etc. Are written and how much is amount of food to reach in that route. This information is in the root list. 

Packing sheet:In this sheet all information stored which related to the packing and how many vessels for packing food which vessels use for rise , dal , or sabji. So they can easily pack all food in the vessels food is packed in 5 types of vessels which are given below:

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Loading time:In this sheet loaded vessel loads all the related information that is loaded in the vehicle data about all things is kept.

At one route they dispatch 18 vessel rice 22 vessels sabji I vessel pickles.(in vessel many no of pickle packets are their where on packet 800 gm pickles for per child 8 gm pickles) in a cooker 100 kg rice made for 150 children. 

Dispatch vehicle checklist:This list prepared by distribution department for maintaining vehicle, cleaning vehicles, washing vehicle, checking out vehicles part etc. Because these are very import for food safety distribution distributors policy and so no. This consideration is very useful and healthy for food though this list the head of department can give instruction or detail of vehicle to supervisor. So they can easily dispatch their food at the location or school.

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Food delivery list:In this list all information is carried in this we put a sticker where we write cooker number and school. On the basis of the number they can measure which mistake is happen in the organisation, so it is happen in the organisation.

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Conclusion In the Akshaya patra many type of cost control process and techniques are there and they are give rewards to our employee who are do any cost control activity and safety related activity. The cost control is the major part of an organisation to reduce the expenses and also reduce the cost of the product. And the help of the cost control process and techniques we can maintain our expenses and also reduce the losses.

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References 

The Akshaya patra foundation annual report.

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Cost control – investopedia

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Akshaya patra- https://www.Akshaya patra.org

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Class room study

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