NAME: SRIJAN.T ROLLNO.:09011BC052 SUBJECT:MANAGEMENT SCIENCE
INTRODUCTION • Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. • It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). • AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. • Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.
History • HISTORY OF THE COMPANY: The story of AMUL inspired ‘Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperativesowned by half a million farmer members. Amul has become a symbol of the aspirations of millions of farmers; creating a pattern of liberation and self-reliance for every farmer to follow.
History • The ‘AMUL revolution’ started as awareness among the farmers grew and matured into a protest movement. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw away prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves.
History • In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December 14, 1946. • Currently AMUL has 2.28 million producer members with milk collection average of 5.08 million liters/day. • Today AMUL is a symbol of many things. (High-quality products sold at reasonable prices, genesis of a vast co-operative network and a proven model for dairy development). The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948.
GCMMF – OverView • GCMMF: Gujarat Cooperative Milk Marketing Federation. • GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. • CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
GCMMF – OverView • GCMMF is a unique organization. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.
Reasons for Success Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money Success!! Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya Strong Distribution Network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.
Administration • Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organization with annual turnover (2010-11) US$ 2.2 billion. Its daily milk procurement is approx 12 million lit (peak period) per day from 15,712 village milk cooperative societies, 17 member unions covering 24 districts, and 3 million milk producer members.
Management functions • PLANNING: AMUL has been able to: • Produce an appropriate blend of the policy maker’s farmer’s board of management and the professionals: each group appreciating its roles and limitations. • Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. • Provide a support system to the milk producers without disturbing their agro-economic systems.
Management functions • Milk is very perishable product so it has to be consumed within 24 hours. • In order to avoid wastage AMUL converts the milk into SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. • This is possible only if the distribution channel right from the producer to the consumer is well organized. • Last year, they are divided the retail market into 14 specific segments to achieve further distribution efficiency. • This year AMUL is focusing on inducting distributers having expertise in servicing such specific market segments.
Management functions • Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers. • Even though, growing with time and on scale, it has remained with the smallest producer members. • In that sense, AMUL is an example par excellence, of an intervention for rural change.
Management functions • ORGANISING: • AMUL is leaded by the director under him five branches viz. Factory, Marketing, Accounts, Purchase, Human Resources Department. • Factory department has a separate general manager under him three are six branches viz. Production, Stores, Distribution, Cold Storage, Quality, and Deep-freezing. This department takes care of the factory work.
Management functions • Marketing department has regional senior marketing manager and under him there is regional manager. • This department takes care of the marketing aspects of AMUL. • Account department takes care regarding accounts i.e, day-to-day work. Under the accountant there is one clerk. • Purchase department takes care regarding the purchase of raw materials and many other things.
Management functions • STAFFING: • Staffing is a process which includes recruitment, selection, training, placement, appraisal, promotion, and career planning. • In larger organizations, a separate department called Personnel Department looks after these functions and this is headed by a qualified professional manager called Personnel Manager.
Organization structure The Organization Structure of Amul is divided into two parts: • External Organization Structure. • Internal Organization Structure.
Organization structure The Following is the External Organization Structure of Amul: State Level Marketing Federation District Milk Product Union Ltd. Village Milk Product Union Ltd. Villagers
Organization structure • External Organization Structure: • External organization structure is the organizational structure that effects the organization from the outside. • GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10,000 villages of Gujarat are the bases of this structure.
Organization structure • External Organization Structure: • They all make milk village milk producers union, district level milk producers union and then a state level marketing federation is established. • The structure is Line Relationship, which provides easy way to operation. • It also provides better communication between two stages.
Organization structure The Following is the Internal Organization Structure of Amul: Chairman Managing Director General Manager Asst. General Manager Finance Department Personnel Department Production Department Marketing Department S & P Department
Organization structure • Internal Organization Structure: A systematic & well-defined organizational structure plays a vital role & provides accurate information to the Top- Level Management. An organization Structure defines a clear-cut line of authorities & responsibilities among the employees of GCMMF. The Organization structure of AMUL is well-arranged structure. At a glance a person can completely come to know about the organization structure.
Organization structure • Internal Organization Structure: • AMUL is leaded by the director under him five branch Viz., Factory, Marketing, Accounts, Purchase, Human Resources Departments. • Factory department has a separate general manager under him there are six branches viz., production, stores, distribution, cold storage, quality, and deep freezing. This department takes care of the factory work.
Organization structure • Internal Organization Structure: • Marketing Department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of AMUL. • Accounts department takes care regarding accounts i.e. day-to-day work. Under the accountant there is one clerk. • Purchase department takes care regarding the purchase of raw material and many other things.
Plant layout • Plant layout is the overall arrangement of the machine tools, handling equipments, storeroom and other various accessories required for facilitating production in a factory. These arrangements are pre-planned with the results that the building has been constructed to fit a layout of a given process. • AMUL plant is indigenously worked out with facilitation of various production processes and production of multi products under one plant. The total plot is nearly about 2.27 kms. Separate buildings are provided with required arrangements of machine tools handling and computers connection through the control room to fit for varying product-manufacturing departments.
Plant layout • The plant is engaged in producing milk, ice creams, milk powder and ghee. Entire department is uniquely provided with facilities for the processing each product. There are 4 production departments and packaging departments pertaining to each product respectively. • Thus, plant layout encompasses all production and service facilities and provides for the most effective utilization of the men, materials and machines constituting the process. It is the master blue print of coordinating all operations.
Plant layout There are Four Plants of Amul located in India : • First Plant,is at Anand, which engaged in the manufacturing of milk, butter, ghee, milk power, flavored milk, and butter milk.
Plant layout Second Plant,is at MOGAR, which engaged in manufacturing chocolate, nutrAMUL, AMUL Ganthia and AMUL lite.
Plant layout • Third Plant,is at KANJARI, Which produces cattle feed. • Fourth Plant,is at KHATRAJ, which engaged in producing cheese.
Production & operational Management • INTRODUCTION: • “Production management is refers to the process of correction of past mistakes catching up with the new techniques, taking up steps with developing techniques and taking measures for the production of goods at competitive cost.” • The basic philosophy of production management is to launch a frontal attack on direct costs and effective use the availability manpower weaving new techniques in to the whole to keep the production unit efficient and developing production management is the process of planning, organizing, directing and controlling.
Production & operational Management • The Amul is started with only 250 liters of milk per day. But now Amul collect average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem regarding milk, but in the winter season there was excess supply of milk. So, Amul has to sell out that excess milk at the low price or Amul has to face loss. To removing these problems Amul take decision to set up a plant to process the surplus milk butter and milk powder.
Production & operational Management • The Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24hours a day continuously. The all manufacturing process is done automatically. The production is done in the special machines. These machines and the technology are import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so that the milk remains usable.
Production & operational Management • Three plant of AMUL perform different functions: AMUL–1 Presently it is use as a go down for storing raw materials. AMUL–2 In this unit, the production process of Ghee and packing's are running. AMUL–3 This unit is producing AMUL butter, spray power, and flavored milk.
Production & operational Management • Milk Collection Cycle: The success of each and every dairy industry is the getting the milk from the farmers and making that milk in use as soon as possible before that milk get spoiled because the milk is the perishable product. For the smooth running the business of dairy industry the industry must concentrate on the milk collection cycle. Amul dairy is very conscious about the milk collection cycle because the base of the success of the Amul is milk collection cycle.
Production & operational Management • Production capacity of Amul: • Butter 50 to 60 Tones. • Powder plant 70 tones. • Powder plant 60 tones. • Flavour milk 40000 bottles.
Production & operational Management • Amul – 2 Raw Reception Dock: Reception dock is the very first department of any dairy where milk is unloaded and simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines for unloading milk cans in Amul – 2 . About 60 % of reception is of buffalo milk and remaining 40% is cow milk.
Production & operational Management • Butter section: The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul dairy along with the famous butter girl. The butter section is located in Amul -3which manufactures Table Butter, white butter and renduced salt butter. The section is completely computer controlled and is equipped with most modern imported equipments .Butter section very important as it handles fat, which is the costliest constituent. The cream obtained from process section is fully utilized for butter making .Amul white and table Butter is exported to USA and various Middle Eastern countries.
Production & operational Management • OPERATION: The cream for manufacturing Butter is receiving from Amul-3 process section while standardization of milk. In Amul -3 the milk fat will be separated at above 60 Celsius, the centrifugal separators inline with Milk pasteurizer separate this as cream. The cream thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo. After ageing at 8 Celsius for 24 hrs, cream is pumped to cream chilling unit in the butter section. There the temperature of cream is adjusted to the required churning temperature of continuous Butter Making Machine.
Production & operational Management • Packing materials used: • Delocalize market Double laminated is used for export. • Tin – used for 400g Army pack • Card board box- used for tertiary packing 3ply for 9.1 g weight package 5ply for normal & export
Production & operational Management • Powder plant: F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used for the manufacturing of cheese whey powder . • F-35 CONDENSING PLANT DETAILS: • Make : SSP ,Faridabad. • Type : Falling film vertical tube type. • No of Pre heater : 5. • No of calendria : 7. • No of vapor separators : 5.
Production & operational Management • OPERATION DETAIL: • MILK : One of the most versatile food consumed by us. All children start their with mother’s milk and continue to use it in one other throughout their life. It is the secretion from the mammary glands of a lactating mammal. The white fluid, know as milk, is made up of milk fat and other milk solids. • MANUFACTURING PROCESS FOR MILK : • MILK PROCUREMENT: Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25lakh kilograms (6.7million kg) per day, representing a growth of 4.5 per cent over
Production & operational Management 64.38lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4million kg) per day. This increase in milk procurement is very impressive, keeping in mind the massive loss suffered by our farmers due to floods during the monsoon season, specially in Surat district.
Production & operational Management • MILK PROCESSING: • Homogenization:Milk must then be homogenized. Without homogenization, the milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its rich and creamy taste. In this process Milk is transferred to a piece of equipment called a homogenizer. In this machine the milk fat is forced, under high pressure through tiny holes.
Production & operational Management • Pasteurization: Pasteurization is the process that purifies milk and helps it stay fresher, longer. Milk is pasteurized by heating it to 72°C for 16 seconds then quickly cooling it to 4°C. Pasteurization is named after Louis Pasteur, the famous scientist.
Production & operational Management • Adding Vitamins:Before homogenization, vitamin D is added to all milk. Vitamin D combined with the calcium that naturally exists in milk help gives us strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our eyesight.
Production & operational Management • Packaging Milk:Milk is now ready to be packaged. Milk is pumped through automatic filling machines direct into bags, cartons and jugs. The machines are carefully sanitized and packages are filled and sealed without human hands. During the entire time that milk is at the dairy, it is kept at 1° - 2°C. This prevents the development of extra bacteria and keeps the milk it’s freshest.
Production & operational Management • Storing:Milk is delivered to grocery stores, convenience stores and restaurants in refrigerated trucks that keep milk cooled to 1° - 4°C. The stores take their milk and immediately place it in their refrigerated storage area. Because fresh milk is so important to our diets, dairies, and our health.
Quality movement • Quality Policy: The motivated and devoted work-force of AMUL- are committed to produce wholesome and safe foods of excellent quality to remain market leader through deployment of quality management systems, state-of-art-technology, innovation and eco-friendly operations to achieve delightment of customers and betterment of milk producers.
Quality movement. • Quality of Life: Assured market for their milk and daily income round the year from milk has improved the quality of life of farmers. The role village dairy co-operative societies in the over all development of the villages have brought better social infrastructures in the villages such as roads, communication system, schools, health centers, water facilities, banks etc.
Marketing • Concept: The marketing concept holds the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering and communicating customer value to its chosen target markets. Marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept says that any business should be organization around the marketing function, aningticipating and stimulating and meeting customers need. The marketing concept rests on four pillars and they are: 1. Target market. 2. Customer needs. 3. Integrated marketing. 4. Profitability.