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ORGANISATION UNDERSTANDING

THE PANCHMAHAL DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD. GODHRA

By Gyaneshwar Ranjan and Amarkant Sinha

Organisational Traineeship Segment (OTS) PRM2004-06

INSTITUTE OF RURAL MANAGEMENT ANAND 2005

ACKNOWLEDGEMENT We are thankful to our host organisation “The Panchmahal District Co-operative Milk Producers’ Union Limited” for giving us the opportunity to carry out our Organization Traineeship Segment (OTS) of our PRM course. We are grateful to Dr. R. S. Patel, Managing Director,“The Panchmahal District Cooperative Milk Producers’ Union Limited” for providing us with the opportunity to understand the market and functioning of the dairy. We owe special words of thanks to our Reporting Officers Dr. A. K. Panchal and Mr. R. J. Mehta for helping us during the progress of the work and providing us valuable insights. We are also very thankful to the other staffs of various other departments who helped us during the study of the organization. And we extend our heartiest thanks to all the personnel of “The Panchmahal District Cooperative Milk Producers’ Union Limited” who cooperated with us during the study of the organization. Finally, we thank to our faculty guide, Prof. S.N. Biswas for offering helpful suggestions and comments. Prof S.N. Biswas has guided us in this project through his invaluable constructive suggestions without which we would not have been through this project. Amarkant Sinha

(25054)

Gyaneshwar Ranjan

(25070)

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EXECUTIVE SUMMARY Students’ Name

:

Gyaneshwar Ranjan and Amarkant Sinha

Organisation

:

The Panchmahal District Co-operative Milk Producers' Union Limited, Godhra

Reporting Officer

:

Dr. A. K. Panchal and Mr. R. J. Mehta

Faculty Guide

:

Prof. S. N. Biswas

Project Title

:

Organization Understanding

Scope of study: The scope of our study included understanding of the structure, functions and interface with the external environment of “The Panchmahal District Co-operative Milk Producers' Union Limited, Godhra”. The study also includes the chilling centers, the cattle feed plant and the dairy cooperative societies associated with the dairy. Objectives: 

To have understanding of what an organization is all about.



To know its activities, its strength and weaknesses.



To understand how an organization comes into existence, how it grows, adapts and absorbs changes and sustains itself.



To understand the interface between the organization and its external environment.



To understand the perspectives and ethos of individuals as it exists in the organization.



To understand the dynamics that comes into play at various levels in the organization.

Methodology: Appreciative enquiry, semi structured interviews with stakeholders, interviews, observation and informal discussions are the primary data sources, and the secondary data sources consist of various documents mainly annual reports, financial statements etc. available in the organization. The concepts of 7-S framework were applied to gain a holistic understanding of the organization. Genesis: The Panchmahal District Co-operative Milk Producers' Union LTD., Godhra popularly known as Panchmahal Dairy is a cooperative venture of the milk producers of Panchmahal and Dahod districts. It was established in the year 1973 and during the

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year of inception its milk procurement was 21,000 liters. The dairy was managed by GDDC till 1982. The Panchmahal cooperative dairy development programme was taken up under NDDB’S operation flood-II programme during September 1982. During OF-II programmes the input activities viz. veterinary services, extension programmes, Artificial insemination programmes were initiated. Mission: The union as such does not have any explicit mission but the same is reflected in its quality policy which states “we are committed to excellence, both in providing the best quality inputs and services to our esteemed milk producers and excellent quality of milk and milk products to patron consumers. “We shall continue to adopt this state of the art technology, HACCP principles and innovations for manufacturing products and providing congenial and healthy environment to encourage excellence in every area.” Strategies: Quality consciousness in the consumers created the demand of clean and healthy milk having minimum bacterial load. The dairy is planning to be a leader in the quality of milk and for that various measures such as installation of bulk milk coolers, automatic milk collection station, computerization of DCS, providing stainless steel cans, quick reception and testing of milk both at DCS and dairy dock are undertaken. Current Scenario: The Panchmahal District Co-Operative Milk Producers' Union Ltd., Godhra is located at Lunawada Road, 2.5 Km. away from Godhra City. It is mainly a liquid milk plant with installed capacity of 2 LLPD. But at present the dairy is handling more milk than its installed capacity. In lean season it handles 2.5LLPD and its handling capacity in flush season up to 3.25 LLPD. These figures also show its level of procurement in those seasons. It is producing Liquid Milk, Ghee, Table Butter, Dried Milk & Dried Milk Products, i.e. Skimmed Milk Powder, Mithaee Makers Powder, Gulab Jamun Mix & another important milk is Flavoured Milk as a very high demand. The Panchmahal Dairy is manufacturing its products under the brand names “AMUL” & “PANCHAMRUT". It was awarded with HACCP & ISO 9002 certificates for its high quality products & production polices by Quality Assurance Service QAS, Australia in the year 2003. The profit and loss account statement of milk shed reveals the increasing business and increased returns to its members continuously. The financial viability of milk union is becoming stronger and stronger day by day. Total turn over of the Panchmahal Dairy

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during the year 2004-2005 was ('000 Rs.) 1,75,90,39. Total profit made was ('000 Rs) 5998.

TABLE OF CONTENTS

1. INTRODUCTION 1.1 Name 1.2 Location and Topographical Conditions 1.3 Objective of the Panchmahal Dairy 2.0 ENVIRONMENT 3.0 TECHNOLOGY 4.0 CENTRALITY 5.0 LINE AND STAFF FUNCTIONS 6.0 THE PANCHMAHAL DAIRY FROM THE 7-S FRAMEWORK 6.1 Shared value 6.1.1 Core values 6.1.2 Vision 6.1.3 Mission 6.4.1 Management of information system 6.4.2 Management by objective at the Panchmahal dairy 6.5.1 Individual initiative 6.5.2 Risk tolerance 6.5.3 Direction 6.5.4 Integration 6.5.5 Management support 6.5.6 Control 6.5.7 Identity 6.5.8 Conflict tolerance 6.5.9 Communication pattern

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6.6.1 Productivity flexibility 6.7.1 Recruitment process 6.7.2 Induction 6.7.3 Training activities 6.7.4 Performance appraisal system 6.7.5 Promotion and transfer 6.7.6 Worker and management relations 6.7.7 Employee turn-over rate 7. DEPARMENTS 7.1 Personnel and administrative department 7.2 Procurement Department 7.3 Purchase Department 7.4 Production Department 7.5 Store Department 7.6 Marketing Department 7.6.1 Functioning of Marketing Department 7.6.2 Customer Handling Procedure 7.6.3 Future strategies of Marketing Department 7.7 Quality control department 7.8 Project and input department 7.8.1 Artificial Insemination and Veterinary services 7.8.2 Supply of Fodder Seeds 7.8.3 Women cooperative dairy societies 7.8.4 Women Extension Workers 7.8.5 Women Dairy Cooperative Leadership Programme 7.9

Accounts department

8.0 FINANCIAL ANALYSIS 9. PERFORMANCE INDICATORS 10.0 SWOT ANALYSIS OF THE ORGANISATION vii

11.0 LEARNING REFERENCE APPENDIX 1 APPENDIX 2 APPENDIX 3

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List of Tables Serial No.

Page No.

1.

Present Status of the Panchmahal Dairy

3

2.

Board of Directors

4

3.

Induction Schedule

20

4.

Type of milk sold

29

5.

Financial Ratios

36

6.

Share Capital

38

7.

Number of Societies Organized

38

8.

Total Sales

39

9.

Societies Come under A. I.

39

10.

Numbers of A. I. Performed

40

11.

Fodder Seed Sales

41

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Lists of Figures Serial No.

Page No.

1.

Emery and Trist Framework

5

2. 3.

Perrow’s Technology Classification The 7-S Framework

6 9

4.

Miles and Snow’s Model

12

5.

Competitive Strategies Framework by Michel Porter

13

6.

Procurement-cum-distribution Channel.

25

7.

Sale of Liquid Milk per Day

29

8.

Manufacturing of Milk Products

30

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1. INTRODUCTION 1.1 Name The name of the organisation is “The Panchmahal District Co-operative Milk Producers' Union Ltd” (PDCMPUL), Godhra.

1.2 Location and Topographical Conditions The Panchmahal dairy is located at Lonawada Road, 2.5 km away from Godhra town in Panchmahal district. The dairy procures milk from the producers who live in 1600 villages of Panchmahal and Dahod districts. These are the backward districts of Gujarat, where 90% people are tribal and in which 60% people live below poverty line. The average rainfall of the districts are 600 to 750 mm but it rains irregularly therefore the districts have to face draught frequently. Most of the land is rain-fed land and the farmers have to depend upon the monsoon. Apart from this, the most of its functioning areas (especially Dahod) are hilly and therefore, the transportation cost is higher in collecting milk from the scattered villages. Again, it can't be said that the Panchmahal dairy is situated at strategic location in term of getting any large market for its produces but with its own efforts and also with GCMMF, it is continuing scaling up the sales through exploring new areas such as Indore, Dahod, etc.

1.3 Objective of the Panchmahal Dairy •

To procure raw milk from the societies and execute effective marketing of the milk and milk products after processing the raw milk in order to uplift the social and economical status of the producers.

•

To ensure better & remunerative market for milk to milk producers round the year.

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•

To provide veterinary aids to the members at their door step through routine mobile veterinary routes and also to attend emergency call, besides providing facilities of artificial insemination.

•

To arrange an effective training for the members of the union & related societies to minimize the cost of milk produced at village level.

• •

To create direct or indirect employment to enhance milk production activities. To supply balanced cattle feed as per requirement of milk producers at reasonable rates.

•

To provide technical inputs to the milk producers for producing clean milk at village level.

•

To execute various social welfare programmes for the upliftment of the members as well as the societies as a whole.

1.4 History and Development The Panchmahal District Co-operative Milk Producers' union was organized at Godhra in May 1973. Initially, the dairy used to collect 21,000 liters of milk from the 40 villages of Panchmahal district. Milk used to be procured and delivered to the adjacent district union in Kheda and Baroda on account of lack of processing facilities at Godhra. Only bordering villages were availing these benefits of arrangements. So, in order to increase to a larger numbers of farmers of deep-seated villages, a milk processing plant with 30,000 LPD capacities was established at Godhra in 1977. The union was managed by GDDC till 1982. The dairy development programmes on the lines of the Anand pattern was undertaken under operation flood II programmes during the year 1982-83. The capacity of the milk processing plant was further expanded to one lakh LPD. Under Operation Flood III programme it was proposed to procure milk from 725 DCS. The procurement expected to be of 90,000 liters by the end of 1992. The proposed financial outlay under OF III programme for the union was Rs. 3.15 lakh, which involved investment on chilling centers, expansion of existing dairy plant, technical input service and support to villages’ dairy cooperatives.

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In the year 1999 - 2000 the organization received ISO 9002 and HACCP certificates by an industrial agency QAS. Where ISO 9002 stands for the Quality Management System of the milk and milk products such as milk powder, butter, butter milk, ghee and gulab jamun mix, and HACCP covers the safety and quality management system for the manufacturing of milk and milk products. The average milk collection per day during the year 2004-05 was 2,58,000 liters from 1,600 milk producers cooperative societies. Solid Not Fat (S.N.F.) and Fat are the two main bases on which the milk is priced with the maximum of Rs. 205 Fat/Kg for buffalo milk. Table No. 1- Present Status of the Panchmahal Dairy State District Address

Gujarat Panchmahal and Dahod The Panchmahal District Co-operative Milk Producers' Union Ltd” (PDCMPUL,

Type of Products

Lonawada Road, Godhra - 389001 Double Toned Milk, Single Toned Milk, Standardized Milk & Whole Milk, Skimmed Milk Powder, Ghee, Better, Flavored Milk

Product Brand Name Marketed By Milk Handling Capacity

and Gulab Jamun Mix Panchamrut and Amul GCMMF and Itself 2 Lakh Litres/Day

Capacity utilization Pasteurization Capacity Capacity of animal feed plant

100% 30000 Litres/Hour 100 tones / day

Capacity utilization Capacity of Powder Plant Capacity of Ghee Plant No. of Milk Routes for procurement

100% 16 Mt/Day 12 Mt/Day 75

No. of Village Level Society Staff Strength(permanent) No. of Agents

1600 492 235

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The capacity utilization animal plant is 100%. The capacity utilization fluctuates according to the demand. In February it worked at 200% capacity during peak. The dairy is handling more milk per day than its installed capacity of 2LLPD. The powder plant remains closed in the lean season of milk production.

1.5 Governing Structure The Panchmahal District Co-operative Milk Producers' Union Limited is governed by 20 members Board of Directors. Out of these fifteen are elected members and rest five are nominated or ex-officio members; one from NDDB, two from GCMMF, District Registrar (Co-operative Society) and Managing Director. The Chairman comes from the 15 elected members. Detail of the Board of Directors is given below. Table no. 2 - Board of Directors (2004-05) Shri Bhupendrasinh Prabhatsinh Solanki Shri Shanabahi Galabhai Patel Shri Kanubhai Somabhai Patel Shri Narvatsinh Khatusinh Chauhan Shri Ravjibhai Shankarbhai Patel Shri Ganeshbhai Mathurbhai Patel Shri Magansingh Ratansinh Baria Shri Rameshbhai Devjibhai Patel Shri Vasantkumar Kantilal Pandya Shri Bachubhai Somabhai Parmar Shri Indrajitsinh Pramodsinh Parmar Shri Ranvirsinh Raysinh Solanki Shri Jiviben Virabhai Patel Shri Ilaba Jayadrathsinh Parmar SMT. Sumanben Kalsing Bhabhor Shri J. G. Pandya Shri Jayen Mehta Shri Atulkumar Agrawal Dr. Mohan Namjoshi Dr. R. S. Patel

Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Director District Registrar Representatie of GCMMF Representatie of GCMMF Representative of NDDB Managing Director

2.0 ENVIRONMENT The environment of an organization identifies everything outside an organization’s boundaries. The “general environment” encompasses conditions that may have an

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impact on the organization, but their relevance is not overtly clear whereas the “specific environment” is that part of the environment that is directly relevant to the organization in achieving its goals. It includes producer members, customers, competitors, G.C.C.M.F. and government regulatory agencies. The environment that the Panchmahal Milk Union faces is of the placid-clustered type according to the classification by Emery and Trist.

PLACID-CLUSTERED

CHARACTERISTICS

PLACID-RANDOMIZED Relatively stable

Relatively stable

Low uncertainty

Threats slow but clustered

Changes slow and random

Relatively more attention to environment Centralized structures

Less attention to environment

organ

domin

environme

DISTURBED-REACTIVE

TURBULENT FIELD

More complex and changing

Most dynamic and uncertain

Many competitors with one or more

Change ever-present

organizations dominant

Elements in the environment create a

More flexibility needed to counteract

compounded change effect

environment and competitors

Highest order of flexibility and innovation

More decentralized structures

needed to counteract

Figure 1: Emery and Trist Framework

After introduction of MMPO in 2002, the environment in dairy sector has become very dynamic. Now any major player can enter into the milk shed of another established player and try to entice its produces. In the case of the Panchmahal Milk Union, major competition is faced from the “Sanchi Dairy” besides other small players such as local doodhiyas. Still, in the local market of operations, the Panchmahal dairy is the dominant player. To be more effective in such environment, the organization needs to be more flexible and more decentralized as compared to its existing form.

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3.0 TECHNOLOGY The technology refers to the information, equipment, techniques and processes required to transform inputs into outputs in the organization. According to Perrow technology can be defined “as the action that an individual perform upon an object, with or without the aid of tools or mechanical devices, in order to make some change in that object.” According to his classification, the Panchmahal Dairy employs a routine technology. It is easy to analyze the problems. There is mass production. The routine technology can be accomplished best through the standardized coordination and control.

Task Variability Few Exceptions

Many Exceptions

Ill defined & Unanalyzable

Non-routine

Routine

Engineering

Well defined & Analyzable

Problem Analyzability

Craft

Figure 2: Perrow’s Technology Classification The technology used by the dairy is of routine type in which there is very low scope of any change from the procedure followed. There is mass production and personnel in production department keep on performing same task. The technology at the union is characterized by low task variability. There are few exceptions and people do the same job in the same way most of the time. There is high formalization and centralization. The span of control is high and the coordination and control is done by planning and rigid rules in the organization.

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4.0 CENTRALITY We tried to analyze the different centralities of the Panchmahal dairy on the basis of the framework given by Prof. Katar Singh and Prof. Debiprasad Mishra.

4.1 Member Centrality In this region, most of the villagers are very poor and their livelihood depends on agriculture and animal husbandry. Selling milk is the main business of the villagers after farming. Even, rainfed agriculture becomes secondary livelihood option due to the infrequent rainfall and subsequent drought. A major portion of the family income depends on the income of pouring milk. The Panchmahal dairy returns 83 paise/rupee of milk to the producers. This is the reason of high practice of rearing cattle in the household and pouring milk in the society. The average household has 4 to 6 cattle. Therefore, member centrality is high with the dairy business in this area.

4.2 Patronage Centrality The products of the Panchmahal dairy sell at the brand names of Amul and Panchmrut. Amul is the market leader in the dairy sector and continuing progressing ahead. Panchmrut is also a well know brand in its domain and no other brand is its closed competitor. Under the cooperative principle, the Panchmahal dairy procures milk whatsoever producers want to sell. In this way, it procures the high percentage of milk quantity from 1600 villages out of total 1900 villages in its domain. Therefore, it can be said that it has captured the large factor market (here raw liquid milk) and has the capacity to dictate the local market. So, the patronage centrality is also high. But, there is a need of market development as well as new market for catering the growing milk procurements.

4.3 Domain Centrality In this region, this sector constitutes a major business, as there is no any other industry in this region except one automobile industry in the Halol Taluka of Panchmahal. The Panchmahal dairy gives the major contribution in the GDP of the xvii

region. People of 1600 villages out of 1900 villages are attached with the dairy and get direct benefit from it.

5.0 LINE AND STAFF FUNCTIONS Line function is directly involved in the main functions, that is, manufacturing products or delivering services. Its contribution is most comprehensive to the organization. In this organization the line functions are procurement, production and marketing of milk and milk products. The staff function is a specialist function and is not directly involved in the production process. Its main function is to provide support to the line function. This function extends across organization and helps make the line function most effective. Typical staff function includes administrative, training, personnel, accounts, purchase, store etc. Here in this organization, it is seen a clear cut demarcation between staff and line department, both in terms of culture and attitude of the employees. The employees in the line departments think that they are the ones who do all the important work, but it is the employees from the staff department who enjoy more power and are close to the management. Therefore, it is found that there exists a bit of grudge among the line staffs. When we talked to the staff people, we found that some of them were candid enough to admit that they are close to the power centre as they look after the finances and also the personnel policies. Moreover the line employees think that the staff people have a comfortable job as they have routine life and their work schedule is also fixed from 9 A.M to 5 P.M. on the other hand the line people have to work in shifts and the shifts changes every week.

6.0 THE PANCHMAHAL DAIRY FROM THE 7-S FRAMEWORK

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Figure 3: 7-S Framework Figure 3: 7-S Framework

6.1 Structure Organization structure defines how tasks are to be allocated, who reports to whom, and the formal coordinating mechanisms and interaction patterns that will be followed. Organization structure has three components: complexity, formalization and centralization. Complexity refers to the degree of differentiation that exists within the organization. Horizontal differentiation considers the degree of horizontal separation between the units. The horizontal differentiation was high as the organization is having various plants located at different places. The Panchmahal dairy had commissioned a 100 MT/day capacity Cattle Feed Plant at Khandia, in Shehra Taluka in November 2004. The organization has three chilling centres located at Lunawada (Chopda), Limdi and Shivrajpur. For providing artificial insemination a Frozen Semen Station was also established in the dairy premises. At present there is 1600 Dairy Cooperative Societies working under the organisation. Vertical differentiation refers to the depth of the organizational hierarchy. The vertical differentiation is high in production department but it is low in other departments. Formalization refers to the degree to which jobs within the organization are standardized. There are explicit job descriptions, lots of organizational rules and

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clearly defined procedures covering work processes in the organization. There is very less scope of doing anything beyond the laid down rules. Centralization refers to the degree to which decision making is concentrated at a single point in the organization. It is concerned with the dispersion of authority to make decisions within the organization. In the Panchmahal dairy, most of the financial powers rest with “Board of Directors”. The diagram of organization structure has been given in Appendix 1. The main functions of the organisation are: 1. Procure milk from Panchmahal and Dahod areas 2. Selling milk and milk products to the nearby markets 3. Providing cattle improvement facilities to the farmers through veterinary camps and member education 4. Providing cattle feed 5. Group insurance schemes under the cooperative setup for the farmers in LIC of India. 6. Provide different welfare activities to the members under the co-operative principle of social concern with the help of the Government of Gujarat and other funding agencies such as UNICEF, GEDA etc. The plant has been divided into following sections according to their functions: Dairy dock and processing, Engineering, Internal audit, Purchase, Care taking, Security (on contract), Marketing, Quality control, Transport pool, and Central store, Accounts, Establishment, Information, Projects and Inputs and Cattle feed plant. There is departmentalization by virtue of horizontal differentiation in the Panchmahal dairy. The above-mentioned sections have been segregated to the ten departments: Personnel & Administration (P&A), Marketing, Account, Procurement, System, Production, Purchase & Storage (P&S), Engineering, Projects & Inputs (P&I) and Quality & Control (Q&C). The different departments are segregated on the basis of their functions and specializations. The elite departments are the Procurement Department and the P&A (Personnel and Administration) Department. They derive this distinction on the basis of their criticality to the organisation or their closeness to the power centres. The Procurement department personnel are in close contact with the Board of Directors and hence have

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a network centrality. The P&A department is dominant by virtue of its powers in the various administrative matters.

6.2 Strategy Strategy refers to the determination of long-term goals and objectives of the organization, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. Strategy can be viewed as premeditated or as something that can become clear only over the time. Strategy considers both means and ends. The main strategy followed by the organization is market` differentiation strategy under which the organization is trying to offer higher quality products and also new products. By using techniques like advertising, market segmentation and prestige pricing the organization is becoming more and more market oriented. The other main strategy applied by the organization is that of cost control. This is mainly done by reducing the wastage and other expenditures those are unnecessary in nature. When we see the strategies followed by the organization from the view point of “Miles and Snow” (1960s) then the organization will come under the category of Analyzers. Under this strategy the goals become stability and flexibility in the changing environment. It has achieved stability over the years of its functioning as a significant player in the local market. Also, it needs flexibility to change itself quickly according to the changing environment in which it operates. Being an Analyzer type of organization, it refrains from taking risks, and tries to get maximum benefits out of the opportunities offered by the market. It waits for performance of new products launched by other players and if they succeed, the organization quickly offers that product in the market. The structure is moderately centralized and there is tight control over current activities. The Panchmahal dairy started manufacturing Amul’s masti dahi and amul’s kool flavoured milk after it became successful in the market. The dairy is smaller in comparison to other sister dairies so it can’t afford to take risks as prospectors. The dairy wants to minimize risk while maximising the profit. Figure 4: Miles and Snow’s Model

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ANALYZER

PROSPECTOR

Goals Stability

Environmen

Structural

t

Characteristics

Changing



and

Goals

Environment

Characteristics

Moderately CentralizedFlexibility

Dynamic

Control

Flexibility





Structural



Loose Structure



Low division of

Wait and follow

labour

approach



Decentralized

Minimize risk



Low formalizati

maximise opportunity DEFENDER

REACTOR

Goals

Stability and

Environmen

Structural

t

Characteristics

Stable



Tight Control

All



Extensive division

things at all

of labour

times

MARKET TARGET

Efficiency

Goals

Environment

Structural Characteristics



High formalization



Centralized

good As perceived

Lack of clarity on strategy

BEING PURSUED

Overall Low-Cost Leadership Strategy

Focused xxii Low-Cost Strategy

Hybrid of other three strategies



TYPE OF COMPETITIVE ADVANTAGE

Lower Cost



Broad Differentiation Strategy

Differentiation

Best-Cost Provider

Focused Differentiation Strategy

A Broad Cross-Section of Buyers

A Narrow Buyer Segment

Figure 5: The Five Generic Competitive Strategies Framework by Michel Porter

The Panchmahal dairy follows a Best-Cost Provider Strategy Strategic Target: At present the Panchmahal dairy is targeting customers of all the strata of income, which can be understood from the type of milk it is selling to consumers. The dairy is having milk with 1.5% fat for lower end consumers and it is having whole milk with 6% fat for higher end consumers. Basis of competitive advantage: The dairy is having competitive advantage over “doodhiyas” who are its main competitor. The dairy is able to supply milk to consumers through out the year where as it is not so with doodhiyas. Product Line: The dairy is having wide line of products to cater people from different strata. It is also manufacturing milk products besides milk of different types. Product Range: A wide array of products ranging from common milk products to products like flavored milk, gulab jamun mix, ghee, etc. Production Emphasis: Various cost cutting measures with newer advanced technology have been taken in past. The dairy tries to utilize all the by-products which is formed during the production process. Marketing Emphasis:

The dairy has the emphasis on providing better quality

products to consumers at less marketing cost. The quality of the products is maintained despite of high quality of the products. The Panchmahal dairy has not

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increased the price of the milk for four years and strived to maintain the same price in spite of increase in costs of various inputs. Sustenance of the strategy: Developing a sustainable competitive advantage by simultaneously cutting costs and improving product attributes. Another important part of the strategy reflects from its short-term planning, which contains the goals that the Panchmahal dairy aims to complete in next two to three years. Following are the various targets that it envisages to achieve in coming years. These targets are revised on an annual basis and if need arises, changes are incorporated in the plan. •

The Amul Kool flavoured milk processing plant's capacity will be doubled to meet the demand of flavoured milk.

•

The Amul brand milk has become popular and to meet the demand of this brand at Indore, Bhopal and Dhar, the milk union, with the financial assistance from GCMMF, packaging plant has been set-up at Devas in M.P.

•

Branded cattle feed varieties mainly the Panchamrut, Panchamrut Special and Panchmrut Super Special will be made in 25, 50 and 65 kilogram packs.

•

The Bye-pass Protein Feed Production will also commence in near future.

•

The area- specific Panchamrut Mineral Mixture containing required nutrients will be manufactured and provided in easy to handle packs of 1 and 5 kilogram.

•

Use of Bio-fertilizer will be encouraged and therefore Vermi Composting Demonstration Farms will be established.

•

Bulk Milk Chilling Units will be established in the remote areas of Dahod, at Kharedi and Dhanpur.

•

The District Co-operative Society (DCS) procuring 500 LPD or more milk will be provided with Bulk Chilling Unit, on demand.

•

Installation of a new Spray Drying Plant to manufacture ''Amulya'' powder milk which is undergoing at present.

•

Installation of used self-clarifier and cream separator of ''waste falia'' to manufacture excellent milk products.

•

Augmenting the capacity of the ETP plant from 4.5 lakh litres per day to 12 lakh litres per day.

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•

Undertaking research under the technical guidance of the GCMMF to manufacture '' Amul Basundi''.

•

Initiating the ''Heifer Project'' for the ideal rearing of the female calf.

6.3 System 6.3.1 Management of Information System An information system may be a system that creates information and manages the same for the stakeholders of the system to provide an ambience to take some informed decisions. The Panchmahal dairy has developed MIS system, data from the different departments like Marketing, Production, and Purchase etc is analyzed to generate reports which is of immense benefit to the management while taking critical decisions on the operational and tactical issues of the Union. The core processes are normally attached to the objective of the organization and do not change very often. The support processes are those that provide support to core processes to happen. These processes provide either indirect or direct support to the core processes and directly influence the actors and its properties. Management processes formulate strategies and even identify the process rules, logics, processes itself. MIS has become a one of the important systems in the Panchmahal dairy after the initiative of the GCMMF. The MIS department has only two employees one of whom is at the rank of deputy manager and the other is of clerical rank. 6.3.2 Management by Objective at the Panchmahal dairy In order to achieve performance targets based upon participation of each department, the Panchmahal dairy is following the policy of management by objectives (MBO). Under this system targets are set for each department by the consensus of all the employees. These objectives are then reviewed on a monthly basis and based upon that are revised again. For example, a typical MBO for accounts department would be about reduction of expenses in the department and then there would be a comparison with previous month whether there was an increase or decrease. This helps all the departments in reviewing their performances and since objectives are set by consensus there is unanimity in achieving them. 6.4 Style

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Some of the key characteristics along which the style of the Panchmahal dairy was captured as follows: 6.4.1 Individual Initiative Individual initiative in employees varies from department to department as different departments have different scope of responsibilities assigned to them. Also since the most of the systems and procedures are already established scope for individual initiative is also limited. 6.4.2 Risk Tolerance Risk tolerance is low in the Panchmahal dairy, as most of the decisions require the approval of the Board of Directors. All the decisions, which involve capital expenditure of more than Rs. 50,000, cannot be approved even by the GM and require the permission of board of directors. 6.4.3 Direction In this dairy, the management uses various tools to facilitate direction and uses Management by Objectives (MBO) on a monthly basis for setting targets to be achieved by various departments. Besides this, top hierarchy provides regulation to its sub-ordinates whenever required. 6.4.4 Integration There is reasonable degree of integration amongst various departments in the Panchmahal dairy. Various projects run in the dairy with the coordination of one and other departments where Personnel & Administration plays major role in integrating them with the help of Management Information System (MIS).

6.4.5 Management support Management support is one of the strengths at the Panchmahal dairy as managers are in constant touch with their subordinates providing timely directions and support to their subordinates. 6.4.6 Control

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Since, it is a cooperative organisation there are many rules and regulations, stipulated by the act and byelaws, which it needs to comply with. Approval from registrar is required for all the important matters concerned with employees. 6.4.7 Identity There exist multiple subcultures within the organisation largely on the basis of departments. An integrated organizational identity is not very strong and employees generally view themselves as the employees of a particular department rather than of the organisation as a whole. 6.4.8 Conflict tolerance In order to handle conflicts and grievances of employees in a constructive manner, monthly and bimonthly meetings of employees and management representatives take place where they are encouraged to express their views and differences. Management also tries to find solutions to such conflicts and grievances before they get aggravated. 6.4.9 Communication pattern There is an existence of scalar chain in the Panchmahal dairy, most of the communication

pattern

follows

the

hierarchical

chain

of

authority.

The

communication flow is mostly downward from the top management to the middle management and so on.

6.5 Skills 6.5.1 Productivity flexibility Based upon the demand conveyed by the marketing department after integrating the requisition put forward by the agents and GCMMF, the production department produces the daily demand. This daily demand is highly fluctuating and keeping in mind the fact that the installed capacity of the plant is only about 2 lakh LPD; the production department displays a commendable flexibility in handling such a fluctuating demand. It converts the surplus milk in the skimmed milk powder and other milk products as and when necessary after meeting the regular demand of liquid milk. 6.5.2 Quality assurance

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Quality assurance is one of the strengths of the Panchmahal dairy. It follows quality standards of the highest order in the production and delivery of various products. It has earned ISO 9000, QAS and HACCP certification in recognition of its commitment towards quality.

6.6 Staff 6.6.1 Recruitment process The recruitment for the technical and non-technical staffs is done by the Personnel & Administration (P&A) department. The recruitment committee consists the following members: -

Board of Directors

-

Managing Director

-

Departmental Head

-

Outside Expert from NDDB & GCMMF Ltd.

-

D. G. M. (P&A)

Source of Recruitment: -

Internal advertisement within the dairy.

-

Internal candidates by way of promotion of higher posts and

-

Employment Exchange,

-

Advertisement in reputed newspapers.

-

Campus interview for technical post.

The qualifications and eligibility for recruitment to the various posts excluding technical posts are the same as they were at the time of the establishment of the Union. Some officials expressed the need for their revision particularly in the light of the growing professionalism in the industry. The cumbersome procedure that requires the approval of the Registrar of Cooperative Societies and has to be routed through the Board of Directors is the biggest impediment in the revision of outdated eligibility criteria as perceived by some officials. Surprisingly some of the forms which were there in circulation thirty years ago are still in use in the dairy as we have found in the engineering department where still they opt for I.T.I. qualified persons when engineers are willing to work in the department.

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Procedure of Recruitment The recruitment in the Panchmahal dairy is based on the principle of internal selections i.e. only employees from within the Union are invited for the required posts in the first case. If an internal selection is not possible then the recruitment is done through selection of employees from its sister concerns i.e. the other milk Unions under GCMMF. Only if the above two methods fail to yield any result, an open interview is conducted after placing an advertisement in regional newspapers and magazines. After receiving applications, the personnel department scrutinizes them and prepares a list of candidates for written test / interview for all the posts. Now a day, the selection of technical persons is being done through the campus interview in the reputed colleges as we have found in the case of technical officers in production department who are being recruited from “Dairy Technology College” and also in case of veterinary officers who are recruited through campus interview from “Veterinary College” of “Anand Agriculture University”. 6.6.2 Induction Induction is required for the purpose of introducing person to people with whom he is going to work. To make person aware of the general policies, of the company certify all doubts and provide him job instruction. In Panchmahal Dairy, the induction process is working for officers & managerial level only. The induction period is of two days.

Schedule of Induction: Sr. No.

Day

Department

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Time Head

Sign of Head

1

First

P&A

9 to 1

2

First

Recess

1 to 2

3

First

Co-op. Dep.

2 to 5

4

Second

Prod. / Eng.

9 to 10

5

Second

Laboratory

10 to 11

6

Second

Marketing

11 to 12

7

Second

Account

12 to 1

8

Second

Recess

1 to 2

9

Second

Purchase

2 to 3

10

Second

Store / Soc./ Chem.

3 to 5

Table 3: Induction Schedule 6.6.3 Training activities Both in-house and outhouse trainings are conducted for imparting trainings of various kind to employees. The Personnel and Administration (P&A) department makes a yearly schedule for conducting various training programmes at the beginning of every year and thus the trainings are carried out according to this preplanned yearly schedule. 6.6.4 Performance appraisal system Performance appraisal means to motivate employees for better performance by providing good incentives, promotions services & more payment. By the records of whole year the organization will appreciate their employees. The personnel department conducts performance appraisal of all, the employees every year through the immediate supervisor. The personnel department sends performance appraisal forms to the departmental heads and requests them to return with full details within 30 days. After receiving the forms, the HOD (P & A) prepares a brief report of all the employees and places it before the Managing Director for review and comments. In the PDCMPUL, performance appraisal system is applied through the basis of following criteria:

xxx

1. Job Performance

2. Knowledge of Job

3. Accuracy of work

4. Use of working time

5. Conduct on the job

6. Ability to learn

7. Capacity and willingness to develop

8. Report with supervisor

9. Initiative

10. Innovativeness

11. Trustworthiness (Integrity)

12. Leadership Quality

If there is any lacuna find in technical knowledge, the concerned employee is sent for appropriate training programme.

6.6.5 Promotion and transfer The dairy has introduced two types of promotion policy (1) merit cum seniority promotion (ii) time scale promotion. As the time of promotion, the employees' confidential report, performance appraisal report, qualification, experience, departmental head's report, and work motivation factors are analyzed. The employees have to appear for an interview before the selection committee. So far as time bound promotion is concerned, if a particular employee completed his / her stipulated service tenure with above terms and conditions he is eligible to get time bound promotion. In case the existing posts are not available for time bound promotion, the dairy gives them time scale in the present post with some additional responsibility. The Dairy motivates its employees from time to time through several steps. i)

To give certain authority as per rules.

ii)

Praise the employees on their work performance.

iii)

Monetary rewards for good contribution and suggestions.

iv)

Providing fringe benefits.

v)

Providing health insurance schemes and other developmental activities.

6.6.6 Worker and management relations Worker management relations are healthy and harmonious at the Panchmahal dairy. There is no union of workers here. The joint meeting of the various departments helds generally monthly or bimonthly to sort out any differences or to settle any policy matter relating to one-another. The employees have responded enthusiastically and the work culture is excellent which can be exhibited through our following observations. xxxi

-

Employees have developed good confidence in the work and management.

-

They willingly carry out higher responsibilities.

-

They have reached target within the time.

-

Employees motivate each others.

-

Team building and organizational spirit are excellent.

-

Productivity and quality of work have increased.

-

There is a good industrial relations system.

6.6.7 Employee turn-over rate Employee turn over rate had been almost nil in the general cadre and the number of employees have remained nearly constant since few years. The reason for this low turnover rate can be assigned to it being a semi government organisation. The employees prefer the sense of job security here to the opportunities of growth on the basis of performance in private organisation. But, the turn over rate of the technical employees' especially dairy technologists is quite high due to the low salary package as well as slow and steady growth.

6.7 Shared value 6.7.1 Core values Core value of the Panchmahal dairy is welfare of the farmers. Farmers have to be provided secured and viable market for their milk. Farmers are given the top priority in all decision-makings. Besides this, the organization has to ensure supply of milk and milk products to the consumers in Panchmahal, Dahod and its nearby areas regularly and at competitive price. In one study conducted it was found that 83% of money earned by the dairy goes back to farmers. 6.7.2 Vision Vision of the organization is to improve the socio-economic status of the rural mass engaged in the profession of the dairy farming and cattle management through cooperative. The Panchmahal dairy makes persistent effort to attain the goals through participation in management by farmers particularly by small farmers and landless agricultural laborers with the technical help from the NDDB. The organization wants to achieve xxxii

goals by including all the aspects of dairying, animal production, health coverage, feed and fodder development and marketing of the milk products. 6.7.3 Mission The union as such does not have any explicit mission but the same is reflected in its quality policy, which states, “We are committed to excellence, both in providing the best quality inputs and service to our esteemed milk producers and excellent quality of milk and milk products patron consumers. “We shall continue to adopt this state of the art technology, HACCP principles and innovations for manufacturing products and providing congenial and healthy environment to encourage excellence in every area.” It shows the Panchmahal dairy's total commitment to maintain consistency in quality of products and services, application of innovative techniques and the state of the art in technology, developing motivated and dedicated workforce, application of quality and food safety management systems and ensuring continual improvement.

7. DEPARMENTS 7.1 Personnel and administrative department The various functions performed by this department are: 

To implement training program for various employees of different departments.



To provide required manpower with skills



Implementation of reward system



To create ideal work environment



Arrange for the payment of salaries



Implementation of appraisal system and human resource management practices system



Recruitment and training of the new employees.

7.2 Procurement Department

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The procurement department is one of the most important departments in any dairy since it is responsible for bringing the basic raw material i.e. milk from the producers to the milk union. The procurement department decides the area of the operation, villages from which it would procure milk in consultation with other departments and also decides the routes on which vehicle would ply to fetch the milk from the producers. It gives a contract to a transporter to run its vehicle on one route or a no. of routes. It decides the timing at which each vehicle would collect the milk from the dairy cooperative societies and would reach to the dairy union. The milk is collected at the dairy cooperative societies in cans. The milk vehicle reaches at the village at a fixed time and collects it. The cans bear the name of the dairy cooperative society. The vehicle collects all the cans from the route assigned to it and then it brings them to the dairy where they are emptied at the dairy dock. The procurement department also provides technical equipments to the society and provides services for their maintenance. A procurement supervisor constantly checks the accounts as well as functioning of the society. If sometimes any problem crops up in the society the procurement department tackles it. The chief functions performed by procurement department are: •

To ensure timely and regular supply of milk from the producers to the dairy union

•

To ensure that the dairy cooperative societies are functioning well and maintaining norms specified by the dairy union.

•

To provide technological help to the dairy societies

•

To make efforts to maximize the milk procurement especially in the lean season.

•

To ensure that the milk reaches safely to the union without deterioration in the milk quality and accordingly make arrangements for transport etc.

Currently the capacity of the Panchmahal Dairy is to process 2 lakh liters per day while it is only able to procure somewhere 1.5 lakh liters in lean season and up to 3.25 lakh liters in flush season. During 2004-05, the Milk Union registered an increase of 8% in milk collection with an average collection of 2.58 lakh liters of milk everyday and on an average paid Rs.191 per kilo fat for the milk purchased from the milk cooperative societies. Since, the work of the expanding the capacity of the milk processing plant from the existing 2 lakh liters per day to 4 lakh liters per day is on xxxiv

the verge of completion, the procurement department plans to implement the following strategies with the help of Project & Input department to increase the procurement in the current future. •

To give a better price to the producers.



To motivate farmers to bring milk to the societies.



To enhance and speed up veterinary services in the villages.



To review its artificial insemination program for which they have also hired a consultant from NDDB.



To form an alliance with leading banks such as Bank of Baroda to provide loan to the farmer for milch animal.



Better provision of other input services such as cattle feed, fodder seeds etc. to the farmers at subsidized rates. Figure 6: Procurement-cum-distribution channel.

DCS

Through Contract Vans Through Contract Vans

Panchmaha l

Through Insulated Milk Vans

Agent

Consumer s

The milk which is collected in the dairy cooperative societies are brought to the dairy through vans or mini trucks. The job of transportation of milk and milk products have been outsourced to local transporters. In this way the dairy is able to reduce the cost. The milk in the dairy is then pasteurized and standardized according to the demand in the market. Then it is packaged in different types of packs and then it is stored in the chilling room till the time it is transported for the consumption to the towns. There

xxxv

agents receive the milk according to their indents and then they sell these milk to consumers.

7.3 Purchase Department An indent is raised by the concerned department, which is sent to stores. From stores department it is sent to purchase department which sends it to general manager (G.M)/managing director (M.D) for approval. If approved then an enquiry is raised by the purchase department to the suppliers to submit quotations on or before due date. After receiving the quotation, a quotation opening committee that consists of clerks each from purchase and account department opens the quotation and sends it to the purchase department. The quotation has details of material specification, price, suppliers name and other details. A comparative statement is prepared by the purchase department which is analyzed by purchase manger and suitable recommendation is given by him. It is further sent to the concerned department which checks if there is any deviation from originally raised indent and gives his opinion on the comparative statement. It is then sent to purchase committee, which consists of managers from production, accounts, procurement, purchase and general manager. For any decision at least 3 managers should be present out of which presence of purchase and accounts head is must. The meeting of purchase committee is held every Tuesday where decisions as to how much material is to be purchased and from whom is taken, thereafter it is sent to M.D for approval. If approved it is sent for audit. Auditor audits it and sends it to purchase head, which places purchase order to the supplier to supply goods within a fixed period. Material is received at stores department, which sends information to the concerned department as well as quality control department in case of chemicals and films. After inspection a Goods Received Note (GRN) is prepared which consists of all the details about the material. This GRN is sent to the concerned department head for clearance, which comes to the purchase department head along with GRN and bill. Purchase head sends invoice and GRN to the accounts department.

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7.4 Production Department There are 150 persons working in this department headed by Deputy General Manager.The Production Department comprises of the main area of the dairy. It could be divided into following sub-sections: 1. Reception Dock 2. Processing section The processing plant can be further subdivided into following categories: •

Fluid Milk Processing

•

Butter Section

•

Ghee Section

•

Chhach Section

•

Powder Plant Section

•

Flavoured Milk Section

•

Gulab Jamun Mix Section

The detail of the each section has been given in the Appendix.

7.5 Engineering Department The Engineering Department is concerned with the maintenance of the equipments and taking care of any breakdown. The engineering department is also responsible for disposal of wastes and waste treatment facility. The various sections which are taken care by the Engineering Department are: 1. Refrigeration Section 2. Boiler Section 3. Air Compression Section 4. Electrical Section 5. Effluent Treatment Plant 6. Staff Quarter Maintenance (Electric and Water Supply) For water supply it has its own boring and it also takes water from the Godhra Municipal Corporation. For electrical supply it has to depend on the Gujarat State Electricity Board (GSEB).

xxxvii

7.5 Store Department At present, the Deputy General Manager of the Engineering department also heads store. The basic function of stores is to store and issue material as per the request made by any department and to manage the inventory. For issuing any material store requisition form is sent by the department and on that basis material is issued if it is available in the stores. The stores department is also responsible to send a daily report of inventory at the end of the day to the management. It also prepares monthly, quarterly and annual reports. For the purpose of easy, different cost centers are formed and each material is assigned to a cost center so as to trace it properly. For the purpose of inventory the stores are using valuation FIFO method.

7.6 Marketing Department The various functions performed by marketing department are: •

To arrange for the supply of the milk and milk products manufactured by the Panchmahal dairy in the market.

•

To supply demand of milk and milk products to the production department.

•

To make sure that retailers get timely and regular supply of milk and other products.

•

To handle customer complaints about any defects in the products.

•

To carry out various sales and promotion activities.

•

To implement incentive systems for retailers.

Table 4- Type of milk sold by the dairy and its composition Name of variant

Fat content

SNF content

Amul Gold (FCM)

Min 6%

Min 9.1%

Amul Shakti (Standardized)

Min 4.5%

Min 8.5%

Panchamrut (Toned)

Min 3%

Min 9%

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Double toned milk "Health" (DTM)

Min 1.5%

Min 9%

Figure 7: Sale of Liquid Milk Per Day (in liters)

36000 66000

Ahmedabad + Indore(Federation) Mother Dairy, Gandhinagar Local Sales

96000

In the year 2004-05, the Panchmahal dairy has sold 198000 liters of liquid milk besides 92 lakh bottles of sterilized flavoured Amul Kool (Kesar, Elaichi, Rose and Coffee). The rest of the milk is converted into milk products and skimmed milk powder (SMP).

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Figure 8: Manufacture of Milk Products (in MT)

76

628

Table Butter Milk Powder Ghee Gulabjamun Mix

2671 2161

During the year 2004-05 under review, on an average 66000 litres of liquid milk per day was supplied to the local customers. And 36000 liters Amul brand milk was daily supplied to Ahmedabad and Indore. Besides 92 lakh bottles of sterilized flavoured Amul Kool were manufactured in the year. In addition, the Milk Union daily sold 96000 liters of milk per day to the neighbouring Milk Unions and Mother Dairy, Gandhinagar. The Union also met the demand of local consumers supplying 9 lakh liters of butter milk under the brand name of Panchamrut Goras. A pride in place for the Union is the sale and export of Panchamrut Ghee. The Ghee worth Rs. 2 Crores was exported to the Gulf countries that mainly include Abu Dhabi, Dubai, Bahrain and Oman. During the year under annual report, 2671MT Ghee was produced and 2478 MT Ghee supplied to consumers. The Union also Produced 2161 MT Milk Powder, 628 MT Table Butter, 76 MT of Gulab Jamun Mix of which 1316 MT, 528 MT and 78 MT were sold respectively. The Panchmahal dairy is currently marketing its milk and milk products under the brand name Amul and Panchmarut. The marketing is done through the help of GCMMF and through its own department.

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7.6.1 Functioning of Marketing Department The marketing department chiefly operates through retailers/ agents who give the entire demand to the marketing department. While doing the assessment of the total demand, the demand of each individual retailer as well as private shops is taken into consideration. The agents get milk according to the indents raised by them. The transport vehicle which is hired by the dairy is used for transport of milk from the dairy to the agents of different towns. The agents wait for the vehicle at the predecided place for getting their indents. The agents get milk in crates of the dairy. The agents have to return the crates during the return journey of the vehicle. At present, the retailers get the commission of 40 paisa per liters for all type of milks. At present for a person to be a retailer/ agent he has to first apply to the union with giving the security money of Rs. 15000.

Customers

Customers can be divided intoInstitutiona two categories – institutional General and general retail customers. Institutional customers include hospitals, hotels, canteens, hostels and manufacturing units in and around city. The retail customers are served through established agent network in city. 7.6.2 Customer Handling Procedure There is no formal arrangement for taking customer feedback directly from the customers however the union handles customer’s complaints through retailers. For this purpose each lot is given a machine number and the date of packaging and one sample from each lot is maintained by the quality control department. On customer complaints two persons one from marketing and the other from quality department examines who is at fault. It could be because of the mistake in the distribution channel or even the customer may be at fault. However we observed that most of the retailers were not happy about the way union handles their complaints about leakage. They also showed their dissatisfaction on the commission that they get on selling milk as the commission for the agents had not been revised since 2000.

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7.6.3 Future strategies of Marketing Department • Increase the coverage and awareness of consumers through education and publicity by print and electronic media (hoarding, ad poles and electronic boards). •

Increase coverage through home delivery system.

•

Add new markets like Indore, Dewas, Jabalpur, etc.

•

Add new rural markets in Panchmahal and Dahod districts.

•

Increase outlets in all the existing towns.

7.7 Quality control department In the Panchmahal Milk Union, the Quality Control Department is concerned with the assurance of the quality of the products made at the plant and checking the quality of the raw materials received by them. It has got a laboratory, both at the dock level and the main laboratory at the plant level. The various tests conducted at this laboratory are: 

Organoleptic Tests.



Chemical Tests.



Bacteriological Tests.

Following are the main functions performed by the various sections of QA department: •

Grading of incoming raw milk.

•

Raw milk testing.

•

Testing of outgoing pasteurized milk.

•

Testing of processed milk stored in storage tank or silo.

•

Cream testing.

•

Butter Milk Testing.

•

Standardization of Fluid Milk.

•

Checking of the strengths of chemicals.

•

Checking the weight, film thickness, prints and length of the pouches for city supply milk.

xlii

•

Checking the parameters of effluents generated.

7.8 Project and input department This is one of the most active departments of the Panchmahal dairy. It has obtained a reputed place through implementation of the various welfare schemes with the help of Government of Gujarat, GWSSB, GEDA and UNICEF. The various programmes are being executed by the Senior Manager with the help of 68 other staffs. Some schemes are as following: •

Animal Breeding and Health Care

•

Animal Nutrition Scheme

•

Human Resource Development Programmes

•

Milch Animal Distribution Scheme

•

Mini Village Water Supply Scheme

•

Rural Sanitation Mart Scheme

•

Community TV Scheme

•

Cattle Insurance Scheme

•

Janashree Bima Yojana

•

Universal Health Insurance Scheme

•

Promoting Solar Energy Technologies.

7.8.1 Artificial Insemination and Veterinary services Under the Animal Breeding Program, total 749 milk co-operatives were covered and 122000 animals have been artificially inseminated. 68% of these animals gave birth to about 28000 female calves as reported. The main objectives of this service are: 

To provide quality A. I. Service for producing genetically superior animals to meet future production needs.



To Promote a Sustainable Professionally managed / A. I. and animal health / production service Network.

•

Decision on charges for different kinds of treatments / interventions.

xliii

•

Regular visit of Union Veterinarians / Pvt. Veterinarians to the DCSs.

•

Approach for Vaccinations & other Technical Advise.

•

Creation of Veterinary Service Zone (VSZ) with Union veterinarians & search for Pvt. Veterinarians.

•

Awareness of farmers with the concept of VSZs.

7.8.2 Supply of Fodder Seeds •

Procurement & supply of good quality fodder seeds.

•

Competitive cost & timely supply.

•

Induction of new varieties of fodder seeds.

•

Urea treatment of straw & feeding of crop residues.

•

Advise to Milk Producers regarding feeding of Calf, Heifer, pregnant animals, Cows / Buffaloes in milk & Dry.

At present the union has one cattle feed plant which is located at Khandia with a capacity of 100 MTD. The cattle feed plant in peak demand season worked at 200% of installed capacity. The union is manufacturing three types of cattle feed 1. Balanced cattle feed 2. High energy feed 3. Pregnancy ration.

7.8.3 Women Cooperative Dairy Societies There are 42 women cooperative dairy societies which give milk to the union. The formation of these women dairy cooperative was done by the union. A Woman can carry the messages of better husbandry, better veterinary care, better feeding & better breeding of animals to other Women. Special attention is given to educate women about various tasks involved in the milk production such as •

Care, management & feeding of animals.

•

Feeding during growth, pregnancy, lactation, dry period & under different conditions like flood & drought.

•

Disease & Pest problems.

xliv

•

First signs of heat in cattle & buffalo.

•

Detection of heat.

•

Right time of insemination.

•

Conception after calving.

7.8.4 Women Extension Workers For development of Women Dairy Cooperatives role of trained, efficient & intelligent women extension workers is vital. For that union started cooperative development program, which was designed to strengthen the role of Women members in the Control & Governance of the Dairy Cooperatives. Under this following steps were undertaken:



Men were educated about the role of Women in Dairying.



Women were motivated to join Dairy Cooperatives.



Assert their rights as members.



Attend meetings with extension workers.



Take payment from the DCS.



Encouraged to stand for membership of Managing Committee.

7.8.5 Women Dairy Cooperative Leadership Programme The various objectives of this program undertaken by the Panchmahal milk union are as follows: 

Raise percentage of active Women members in Dairy Cooperatives.



Presence of elected leaders at every level.



Numbers & status of Women employees.



Thrift & credit cooperatives of Women. (Leader & Leadership skills)



Working together not only increases the family income but also brings about significant change in the health of Women & girls, Literacy standards of adult Women, Education of girls, and Women’s status in the family / society.

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7.9Accounts Department The chief functions performed by the accounts department are •

To make arrangements for the payment of salaries of the employees.

•

To make arrangement for the timely payment to the suppliers.

•

To maintain the accounts book and all records.

•

To prepare annual balance sheet and profit and loss statements.

The accounts department deals with all the financial matters of the dairy union. It keeps track of day-to-day financial transactions of the dairy and prepares reports accordingly. It prepares daily, monthly and quarterly reports, which are used by the senior management. It gets all the data pertaining to sales, and expenses from various departments and accordingly prepares report.

8.0 FINANCIAL ANALYSIS Net profit margin ratio is quite low all the years because high fat price is paid to the producers for their milk. And all the benefit is transferred to them. In a study conducted by the managing director of the dairy it was found that 83% of the money earned is again goes back to farmers. The current ratio of the dairy is less than 1 at present which is not a healthy sign. The dairy should return some of the loans which it had incurred and get some long term debt if it has liquidity crunch. Acid test ratio for the bank is also very less. The debt-equity ratio has increased in the current financial year because of the huge loan taken from N.D.D.B for the future perspective plan. The top management should plan strategically for getting higher return on investment because the return is low as well as it has decreased in the current year.

Ratios*

Table 5: Financial Ratios 2002-03

2003-04

2004-05

Current ratio

1.106

0.95378

0.9571

Acid test ratio

0.740

0.689

0.614

Debt-equity ratio

0.4596

0.4771

1.3

-

9.29

8

Inventory (stock) turnover ratio

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Return on Investment (ROI)

0.0063

0.0066

0.00502

Gross profit margin

0.00484

0.00655

0.00644

Note: The Balance-sheet and Profit and Loss Account have been given in the Appendix 2. Assets Schedules and Accounting Procedure are also attached with it.

Current Ratio =

Current Assets -------------------------------Current Liabilities

Acid-test Ratio =

Quick Assets (Current Assets – Inventories) -----------------------------------------------------------Current Liabilities

Debt-equity Ratio =

Debt -----------------Equity

Cost of Good Sold Inventory Turn-over Ratio = --------------------------Average Inventory

Net Profit after Tax Return on Investment (ROI) = ---------------------------Total Assets

Gross Profit Margin =

Gross Profit -----------------------Net Sales

xlvii

9. PERFORMANCE INDICATORS 9.1 Share Capital SHARE CAPITAL(RUPEES IN) LAKHS 400 350 300 250 200 150

308

277

353

335

(RUPEES IN) LAKHS

372

100 50 0 2000-01

2001-02

2002-03

2003-04

2004-05

Table 6 The share capital has been constantly increasing over the years in the dairy. Actually the dairy deposits a part of profit each year in the share capital. There had been increase of over 5% every year in the share capital.

9.2 Societies Organized No. OF SOCIETIES ORGANISED 1600 1550 1500 1450

1566 1508

1400 1350 1300

1600

1421

2000-01

1458

2001-02

2002-03

xlviii

2003-04

2004-05

SOCIETIES

Table 7 At present there are around 1600 societies associated with the dairy out of which around 1375 societies are registered societies. Out of total registered societies 42 societies are women societies which have been working very well since inception. Out of 1375 societies, 1350 societies are regular societies and doing daily transactions with the dairy.

9.3 Sales Patterns The dairy sales is showing increasing trend over the years. There was an increase of over 5% in 2004-05 over the previous year. Besides liquid milk the dairy also manufacture various products which is sold through GCMMF in all the parts of country. TOTAL SALES (In Lakh Rs.) 18000 16000 14000 12000

15687

14893 12675 11348

11162

10000 Series1

8000 6000 4000 2000 0 2000-01

2001-02

2002-03

2003-04

2004-05

Table 8 9.4 Societies Covered under A.I SOCIET IES COVERED UNDER A.I. 800 700 600 500 400 300

616

620

672

720

749

200 100 0 2000-01

2001-02

2002-03

xlix

2003-04

2004-05

SOCIETIES

Table 9 749 societies were covered under A.I. in the year 2004-05. The artificial insemination is done to improvise the local hardy breeds and this also helps in the increasing the milk yield of the animals. The dairy provides facilities such as veterinary aids, deworming, cheaper and timely veterinary treatment at the door steps of the farmers.

9.5 Artificial Insemination Performed There was an increase of over 15% in A.I. performed by the Para- vets and vets of the dairy. The local unemployed youths were trained by the dairy to perform A.I. in the animals. These people get money from the dairy on every successful A.I. done. The step of employing youths for this purpose has yielded good result in improving local breeds.

A.I. PERFORMED(In '000) 140 120 100 80 60 40

106

105 75

122

84

20 0 2000-01

2001-02

2002-03

2003-04

Table 10

l

2004-05

A.I. PERFORMED

9.6 Fodder Seed Sales There had been increasing trend in the fodder seed sold by the dairy. These fodder seeds are cultivated in the fields by the farmers. The availability of this fodder has increased the milk yield from the animals and it has been increasing the income of the farmers. Main fodder seed sold by the dairy is Hybrid Napier Bajra, Deennath grass e.t.c

FODDER SEED SALES( MT)

160 140 120 100 80

142

60 40

77

60

71

68

20 0

2000-01

2001-02

2002-03

2003-04

Table 11

li

2004-05

FODDER SEED SALES( MT)

PROGRESS REPORT (Technical Input Activities) Sr.

2000-

2001-

2002-

2003-

No. Particulars

01

02

03

04

1 2 3 4 5

No. of societies covered under AI Number of AI performed Number of mobile emergency Vety. Units Societies covered under VFA programme Total number of animals treated through Emergency Calls Total number of animals treated through Vet. First Aid

616 74781 32 722 85515

620 84095 38 710 92705

672 105395 38 630 102415

720 106356 38 720 106448

6 Center 7 Animals Vaccination against F.M.D No. of animals covered under Group Cattle Insurance

34483 40001

28857 99156

33050 106000

52069 110000

8 Scheme No. of animals covered under Group Members Insurance

11775

13633

15314

12820

17913 6936 77

18275 5634 60

21133 7364 68

31000 8805 71

15356 1048 328

15868 804 67

12219 1143 55

12180 1318 58

9 Scheme 10 Quantity of cattle feed sold (MT) 11 Quantity of fodder feed sold (MT) Member trained under Village Self Development 12 Programme Members Chairmen - MCM Secretaries

PROGRESS AT A GLANCE Sr. No.

Particulars Primary Co-operative Societies Organised

2000-01 2001-02 2002-03 2003-04 2004-05 1421 1458 1508 1566 1600

lii

1 2 3 4 5 6 7 8

No. of Registered Societies No. of Member Societies No. of Farmer Members (' 000) Paid up Share Capital (Rs.' 000) Funds (Rs.' 000) Daily Avg. Milk Procurement (' 000kgs) Total Milk Purchase (' 000kgs)

1320 984 178 27746 201509 211 77187

1336 977 180 30767 215680 207 75476

1339 1063 189 33468 245691 236 86150

1347 1066 194 35319 286084 239 87235 106778

1411 1241 208 37186 329863 258 94188

893379

857803

970452

8

1228584

68 11 2298 2179 1952 1979 336 319

63 15 2440 2772 1527 1015 407 355

60 18 2708 2766 2024 1715 382 354 126754

63 38 2671 2813 1785 1907 322 327 148926

66 36 2671 2477 2161 1316 628 573

1134810 1116195 3935 4652 12% 12% 88822 57380 A A

3 5136 12% 33034 A

0 5757 12% 38090 A

1568745 5998 12% 122393 A

9 Milk Purchage value (' 000) 10 Daily Avg. Milk Sale (' 000Ltrs.) Local Sale Sale through GCMMF 11 Total Production of Ghee (MT) 12 Total Ghee Sale (MT) 13 Total Production of Milk Powder (MT) 14 Total Milk Powder Sold (MT) 15 Total Production of Table Butter (MT) 16 Total Table Butter Sale (MT) 17 18 19 20 21

Total Sales (' 000 Rs.) Profit (' 000 Rs.) Dividend Working Capital (' 000 Rs.) Audit Class

liii

10.0 SWOT ANALYSIS OF THE ORGANISATION

RESOURCE

STRENGTHS

AND RESOURCE

WEAKNESSES

AND

COMPETITIVE CAPABILITIES COMPETITIVE DEFICIENCIES Large procurement areas (Panchmahal & Excessive control by the Federation Dahod districts)

and the State Government

Untapped liquid milk market in vicinity Limited Capacity of the Plant (Indore, Dewas, Dahod, etc.)

Lack of trained professionals

Strong brand image (Amul) support

Procurement Constraints

Starting exporting milk products

Limited financial muscle

High Production Flexibility

Underdeveloped MIS

High Utilization of Fixed Assets

Unclear local market strategy

High range of Products

Per society low procurement base

Excellent Quality of Products

Poor advertisement for Panchamrut brand

Committed Workforce

value

Strong procurement base

Low retailers base and no wholeseller

Strong welfare services POTENTIAL OPPORTUNITIES Breed improvement potential

POTENTIAL EXTERNAL THREATS Intensification of competition in its

Growth of the Milkshed in terms of markets especially local markets productivity and producer base

Erosion of procurement base due to entry

Extension of product range

by other players in its Milkshed

Moving up the value chain to exploit Cheaper imports due to lifting of QRs brand image Strengthening export market Increasing processing capacity Extend social welfare programmes

liv

11.0 LEARNING The OU component helped us in understanding every aspects of the organization such as its purpose, strategies, structures, culture, resources, customers, strength, weakness, opportunities, threats and other factors that have direct influence on the working of the organization. It also provided us an opportunity to study how the external and internal environment affects the functioning of the organization. We have studied many courses related with

management, finance, operations,

understanding organizations and other different functional subjects during all the three terms but understanding organization component provided us an opportunity to learn the application of all these courses. We got the first hand experience to see how the different sections interact with each other and the importance of coordination among various sections for smooth functioning of an organization. One of the important learning from this component was to know how the culture of an organization helps the organization in achieving its goals and objectives. By studying the structure of the organization, we learnt how tasks are allocated, who reports to whom and the formal and informal coordinating mechanism and interaction pattern that is followed. In short we would like to conclude by saying that every day during this component provided us an opportunities to learn new and different things from which some can be written but most of them can be felt only by whom who has experienced.

lv

REFERENCE •

Robbins, Stephens P., “Organization Theory: Structure, Design and Application”, Third Edition, Prentice Hall of India, 2001.

•

“Annual Report: The Panchmahal District Co-operative Milk Producers' Union LTD.,Godhra”, 2003-04 and 2004-05.

•

“Reports from MIS department and Projects & Inputs departments ”, The Panchmahal Districts Co-operative Milk Producers' Union LTD., Godhra.

lvi

APPENDIX 1 ORGANISATION STRUCTURE BOARD OF DIRECTORS MANAGING DIRECTOR

General Manager

General Manager

Dy. MGR (A/C)

Sys. Off.

Acct. Officer

Asstt. Mgr

SR. Manager

Asstt. Officer (MKT)

Chilling centers (3)

Manager (P&I) Dy. Manager (Vety)

Asstt. Acct. Officer

Asstt. Vety. Supdt.

Asstt. A/C

SR. Clerk

SR. Very. Supdt Vety. Officer

Dy. GM (P&D) Officer

Dy. GM (Prod.) ASO

Asstt. Off. SS JR. Asstt Guard

AGM

Dy.GM (Engg.) D.M.

DY. MGR Engineer Suptd.

Operator

Asstt.GM Manager (Procurement) (QC)

officer

M.P.O.

Purchase Officer

Asstt. MGR

Asstt. M.P.O Supervisor

T.O.

JR Asstt. SR. Chemist Chemist Worker

lvii

Assistant

Clerk

APPENDIX 2 THREE YEARS BALANCE SHEET Liabilities SHARE CAPITAL Authorised 500000 Shares of Rs. 100 each Subscribed and fully paid

2002-03 50000000

2003-04 50000000

2004-05 50000000

33468300

35319500

37186400

96218916

111952140

115114083

RESERVES Reserve Fund DEPRICIATION Loans (Secured) NDDB Perspective plan loans

Current Liabilities & Provisions Deposits Due to Societies O/S Against Expenses/ Purchase Sundry Creditors Provision for income tax Bank of Baroda OD State bank of India OD Bank of Baroda CC PDC Bank Ltd OD Bill discounting – Bank A/c Profit- Loss Account Current year profit Total

149472044

174131828

212749188

67832312

56171280

158498939

17850313 110010560 45723220 25155412 6393285 53289810 33418955 12687034 150000000

5135967 806656128

lviii

485902377 665056076 19285601 18852805 144235318 199233480 53103473 68574682 25342294 52469283 10393285 14500000 17427830 55829597 6202680 15596229 4 0000000 14911896 195000000 200000000

5756670 869233795

5998472 1194603158

Assets

2002-03

FIXED ASSETS

303736067

2003-04 405785507

2004-05 558062618

Gross value as per schedule 2 column 5

269396691

342626436

543310219

Work under construction

34339376

63259071

14752399

INVESTMENTS( as per schedule-3) STOCK

16260000

20760000

20760000

150287157

107577170

203279040

Trading stock

131989648

87437892

169059475

Store material

18297509

20139278

34219565

ADVANCES & DEBTORS

162484986

123974038

175116560

Deposit

2922162

5335595

9386187

Due from societies

13066104

23943838

32269334

Advances

6351866

5322929

19459492

Trade debtors

73564206

19559670

31632688

Sundry Debtors

61657189

61754324

73304584

Income Tax deposits

4923459

8057682

9064275

CASH & BANK BALANCES

173887918

Cash-on- Hand With bank current, fixed deposit& saving account & post saving account Total

237384940

2277846

1981019

4029104

171610072

209156061

233355836

806656128

lix

211137080

869233795

1194603158

PROFIT AND LOSS ACCOUNTS OF THREE YEARS EXPENDITURE To opening stock To Purchases To excise expenses To research and extension expenses To Processing expenses To packing Expenses To electricity & fuel Expenses To salary and wages expenses To staff PF, Gratuity & other benefits To repairs & Maintenance Exp. To marketing Exp. To postage, telephone etc. To insurance premium To rent, rates and taxes To audit fees expenses To miscellaneous expenses To interest and bank commission To depreciation To income tax provision

2002-03 2003-04 2004-05 117549939 131989648 87437892 1047396712 1153914406 1325198558 2260910 1293725 1316079 5053112 5130633 6792484 21014481 22473451 31305843 52971571 80326434 85265466 37617815 43098267 49525056 46267800 51022486 51808734 12155783 14320504 14454077 9982966 11832720 12705026 13061862 12691549 12814818 1924604 2205871 2275789 711756 916439 1354091 231344 201494 212389 3007545 3344992 3080814 1127225 1507634 1589087 29936278 25048269 21031710 12089402 24818911 40766539 1000000 4000000 4106715 599847 5135967 5756670 2 1420497072 1595894103 1759039639 2002-03 2003-04 2004-05 1267543076 1489259832 1568744845 20964348 19196379 21235319 131989648 87437892 169059475

To net profit Total INCOME By Sales By sundry income By closing stock Total J.J. Shah Gen. Manager

1420497072 Dr. R.S. Patel Managing Director

Bhupendrasinh P.Solanki Chairman

As per report attached P. N. Desai Special Auditor (Milk), Godhra

lx

1595894103

1759039639

SCHEDULE 1: RESERVE FUND AND OTHER FUNDS – (BALANCE SHEET) 31-03-2005 Name of the fund Reserve Fund Co-op Propaganda Fund Dairy Research Fund Dividend Equalization Fund Capital subsidy fund DPAP Capital Subsidy Fund NDDBOF Capital Subsidy Fund (Land) Capital Subsidy Fund Tribal Charity Fund Bonus to Society Fund TASP GrantBulk Cooler DRDA GrantLimdi Tribal sub plan - Limdi Investment Revaluation Fund(Bonus Shares) Solar Subsidy Tribal Sub Plan Grant- Women Training Centre- Limdi DRDA Grant – Cattle Feed Project

As on 31-3-04

Addition

Deduction

As on 31-3-05

9525582 58765

1439170 9309

-

10964752 68074

38259

5585

-

43844

32853

3723

-

36576

8234298

-

-

8234298

30674498

-

-

30674498

531000

-

-

531000

47214

-

-

47214

6177 434894

18617 148939

-

24794 583833

6191000

1625000

750000

7066000

15700000

-

-

15700000

3896750

517600

-

4414350

3950000

-

-

3950000

240000 1670850

144000 -

-

384000 1670850

30720000

-

-

30720000

lxi

Name of the assets

Gross value 31-03-2004

Addition during the year

Gross value 3103-2005

1666964 52339246 142758310

Deducti on during the year 2362790

Land Buildings Plant and

7330107 99229751 183602308

machinery Can crates Vehicles Dead stock Cattle feed

Depreciat ion during the year 8467225 27614287

Deducti on during the year 1970210

Total depre ciation 31-03-2005 49194348 123073165

Net block 31-032005

8997071 151568997 323997828

Total depreciati on 31-03-2004 40727123 97429088

20647140 5084290 26732840 -

2275839 800770 1910120 1534004

238680 -

22684299 5885060 28642960 1534004

16962 969 3114334 15898314 -

1163975 502594 2711654 306804

178969 -

17947975 3616928 18609968 306804

4736324 2268132 10032992 1227200

342626436

203285253

2601470

543310219

174131828

40766539

2149179

212749188

330561031

8997071 102374649 200924663

plant and p exchanges Total

ASSETS SCHEDULE -2 (BALANCE SHEET) 31-03-2005

INVESTMENT- SCHEDULE: 3 (BALANCE SHEET) 31-03-2005 Serial number

Particulars

Amount Rs.

1

The Panchmahal district co-operative bank ltd, Godhra 10000 shares each Rs 10/

1,00,000

2

GCMMF, Anand 16160 shares each Rs 1000/-

16160000

3

KRIBHCO New Delhi 10 shares each Rs 100000/ -

1000000

4

IFFCO New Delhi 25 Shares Each RS 100000/

2500000

5

Shree Mahi Panchmahal Sahakari Sugar Ind Ltd., GODHRA 100 shares each Rs 10000/

1000000

TOTAL

20760000

1. SIGNIFICANT ACCOUNTING POLICIES lxii

A. Basis of accounting: The accounts are prepared on accrual basis in accordance with generally accepted accounting principles. B. Fixed Assets: Fixed assets are started at cost. Accumulated depreciation is shown as fund. C. Depreciation: Depreciation on fixed assets is provided for on written down value method. D. Capital Work in Progress: The cost incurred for projects under commissioning and other fixed assets, the construction/ installation / acquisition of which is not completed, are included under the capital work in progress and the same are classified to the respective assets on its completion except in the cases where the project accounts are settled. E. Investments: Investments are stated at fair market value or cost price whichever is lower. F. Contingent Liability: Contingent liabilities are not provided for and are disclosed by way of notes. G. Valuation of Inventories: Stock of Stores & Store and Trading material, Stock of Raw material, Material in progress and finished goods are valued at cost or market value whichever is lower. H. Retirement Benefit: Regular contribution to Provident Fund, Super Annuation & Gratuity is made. The liability towards gratuity and super annuation for its employees are funded with Life Insurance Corporation of India. I. Deferred Tax Liability: Deferred tax asset/liability is not calculated but charged off to P&L A/C as and when due.

2. CONTINGENT LIABILITIES

lxiii

A. Disputed liabilities for exercise Rs. 7.08 lakhs plus interest. B. Disputed income tax liabilities Rs. 54.30 lakhs plus interest.

Jaswant J. Shah General Manager

Dr. R. S. Patel Managing Director

Bhupendrasinh P. Solanki Chairman

P. N. Desai Special Auditor (Milk), Godhra

Directors

lxiv

APPENDIX 3 FLOW DAIGRAM FOR MILK RECEPTION

MILK FROM CHILLING CENTERS TO RMRD Producers Milk Collection Booth

Booths near the dairy

Mini truck, tractor in chilling center Weighing, Grading Sampling Chilling Transfer to the tankers RMRD Raw Milk Tanks

lxv

FLOW DIAGRAM OF MILK PASTEURIZER Chilled whole milk from raw milk storage tank ↓ Balance tank ↓ ← Pump Musslion filter ↓ Regeneration - I ( 40° - 45° C ) ↓ Duppler filter ↓ Cream Seperator → Cream → Cream Pasteurizer ↓ Regeneration - II ( 60° - 65° C ) ↓ Regeneration - I ( 78° - 82° C ) ↓ Holding tubes ( 15 Sec ) ↓ Regeneration - II ↓ Regeneration - I ↓ Chilled Water Section ↓ Storage Tank

lxvi

FLOW DIAGRAM FOR TABLE BUTTER Pasteurized Cream ( 38 - 45 % Fat ) ↓ Chilling & Ageing at 10º C ( overnight ) ↓ Churning ( 15 rpm ) 3 - 4 times ↓ Sampling ↓ Churning ( 28 rpm ) ↓ Breaking Stage ↓ Churning ( 15 rpm ) → Removal of butter milk ↓ Colour Addition ( Annatto colour @ 0.9% ) ↓ Addition of Water (10º C ) ↓ ↓ Forward & Reverse churning ( 5 / 2 min at 15 rpm ) ↓ Removal of washed water ↓ Free Working ↓ Salting ( addition at @ 2.5% ) ↓ Churning ( 9 rpm ) ↓ Sampling ( 1st moisture ) ↓ Water Addition ( for desired percentage ) ↓ Churning ( 9 rpm ) ↓ Churning ( 4 rpm ) ↓ Final Sampling ( for final moisture ) ↓ Unloading in trolleys ↓ Packaging in machine & Storage

lxvii

FLOW DIAGRAM FOR GHEE Cream for tank ( 12º C / 4 h ) ↓ C B M Machine ↓ Butter → Butter Milk ↓ Spiro Heater ( 60º C ) ↓ Melted Butter Tank ( MBT ) ↓ Duplex Filter ↓ Serum Separator → Serum ↓ Butter ( 92% fat ) ↓ Butter Melting Vat ( BMV ) ↓ ← Pump Ghee Kettle ( 113 - 119º C & 3.5 kg / cm ( max) ) ↓ Filter ( 4 Nylon filter - 60 mesh & 1 Nylon filter - 120 mesh ) ↓ Clarifiers ( 105 - 110º C ) ↓ Ghee Storage Tank ( GST ) ↓ Filters ( 160 mesh Nylon ) ↓ Packaging & Storage

lxviii

FLOW DIAGRAM FOR CHHASH MAKING Pasteurized ( Skim Milk ) ↓ Heating ( 30 - 37° C ) ↓ Inoculation Mother Culture at 0.8% acidity, @ 1% ↓ Standardization ( water addition for SNF % maintained ) ↓ Processing ( 60 - 65° C / 15 sec ) ↓ Chilling up to 10° C ↓ Storage Tank ↓ Packaging 500 ml pouch ↓ Storage ( below 5° C )

lxix

FLOW DIAGRAM FOR SKIMMED MILK POWDER Skim Milk ↓ Balance Tank ↓ Filter ↓ Feed Pump ↓ Berometric Leg condenser ( 20° C ) ↓ Pre Heater - 1 ( 30° C ) ↓ Pre Heater - 2 ( 40° C ) ↓ Pre Heater - 3 ( 50° C ) ↓ Pre Heater - 4 ( 60° C ) ↓ Low Temperature Pasteurization ( LTP ) ( 78° C ) ↓ Holding Tube ( 16 sec ) ↓ Calendria - 1 ↓ Vapour Seperator - 1 ( 60 - 63° C / 650 mm Hg ) ↓ Calendria - 2 ↓ Vapour Seperator - 2 ( 55 - 58° C / 700 mm Hg ) ↓ Calendria - 4 ↓ Vapour Seperator - 4 ( 50 - 55° C / 720 mm Hg ) ↓ Finisher ↓

lxx

← Vapour Seperator - F ( 45 - 50° C / 760 mm Hg ) ↓ Condensed Milk Balance Tank

( For WMP ) Homogenization

FLOW DIAGRAM FOR FLAVOURED MILK Receiving Milk ↓ Filtration ↓ Cooling ( 5º C ) & Storage ↓ Pre-Heating (60º C ) ↓ Homogenization ( 78 - 82º C / 15 sec ) ↓ 3 or 4 can in milk ← Cooling & Storage ( 5º C ) in Vertical Tank ↓ ↓ Mixing accurate quantity → Balance Tank of Sugar, Colour & Flavour ↓ Vacuum Filling ( manually ) ↓ Sterilization ( 120º C / 30 min ) ↓ Slow Cooling At Room Temperature ↓ Bulk Packing by machine with polythene ↓ Carton Packing ( manually ) ↓ Storage

lxxi

FLOW DIAGRAM FOR TREATMENT OF DAIRY WASTE WATER Waster water from plant ↓ Collection in primary tank (PH 10) ↓ Sump house ↓ Sludge ← Some Settled ← Lifted to phase tank & mixed with CaCO3 PH Drying Tank Particles adjusted to 7.5 ↓ Primary Settling Tank ( mixed with Alum ) ↓ Mixing & Agitation ↓ → Sludge Removal Aeration tank Sludge Deposition ↓ Clarifier ------------------------------------------------↓ ↓ Floating matter is send to Disposal of treated Sludge during tank water / effluent

lxxii

lxxiii