ORGANISATION STUDY AT MILMA, KOLLAM DAIRY EXECUTIVE SUMMARY An efficient organisation is essential for the success of a business enterprise. The defining of duties and fixing responsibilities of all employees in the orga nisation is essential. An effective organisation system ensures proper supervisi on and control. Organisation is the mechanism which determines the relationship of various persons. With the help of a well defined management is able to perfor m the functions of direction, co-ordination and control. An ill-defined organisa tion plan will not enable the management to make an effective exhibition of its managerial talents to realise business goals. An organisational study was conduc ted in Milma, Kollam Dairy to know the real functioning of an organisation. In t his study primary and secondary data were the main sources of information. Here the primary data are collected through an interview method with the managers of the concerned department. Then interactions with the plant workers were done in order to collect data regarding the processing of the plant. Secondary data are collected from websites, newspaper, and magazines. The main objectives of the st udy are, The study is conducted to familiarise with the functioning of the organisation. To know the functions of all departments. To know the interrelation of all depar tments with each other and the Dairy Manager. The main findings are, There is good coordination between the Dairy Manager and the departmental heads. Fine interrelationship between all departments leads to proper working. The Kol lam Milma unit planning to implement thumb punching system for attendance taking. There are certain areas to improve such as to implement R& D department for producing new products. The main suggestions are, Modern equipments are needed especially an alert computerised system. 1

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY The HRD dept should try all efforts to implement the thumb pressing system inste ad of punching system without any chances for unrest in the firm. Implementation of R & D department is required to make new products or acquiring know how to produce new products from other Milma units. The study faces certain limitations they are, Majority of the office staff were busy during study conducted, hence less informa tion was gathered from them. All the plant workers and the officers were not met due to different time shifts. It was found that some plant workers did not reveal certain information due to f ear from the actions of the management. The organisation study at Milma was done wit h an objective to understanding how an organiastion functions, what are its majo r departments and functioning of these departments. The study at Milma provided the opportunity to learn the organiastional goals and objectives, various depart ment that conduct critical functions and the interrelation between them. Milma i s observed to be an organiastion that not only has an objective of working profi tably but also a socially responsible organiastion that cares of different secti ons of the society viz ; the milk producers, and the milk consumers The organias tion Milma has established different departments based on functions like procure ment, production, human resource, marketing etc. It ensures quality of product t hrough established systems which are monitored by quality control department. Fi nally the project enabled understanding of an organiastion and its objectives an d how they function to achieve organiastional objectives. INTRODUCTION 1.1 INTRODUCTION TO STUDY 2

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Present business system is very complex. The firm must run efficient to stay in the competitive world of business. Various jobs are to be performed by persons m ost to suitable. Manager who knows how to make effective use of their resources can make any organisational design or pattern work efficiently. A manager has to create the right conditions to enable the employees to efficiently utilize the resources of the organisation to achieve organisational goals. He has to make th e employees understand the necessity of cooperation for accomplishing tasks. Emp loyees should understand their roles and responsibilities and should work togeth er to achieve the organisational objectives. This applies to any organisation bu siness, government, or a football team. For a subordinate to understand his role , a manager must provide verifiable objectives and a clear picture of the major duties to be performed. The manager must also specify subordinates authority and responsibility. This gives the subordinate idea of what he must do to achieve th e goals and objectives of the organisation. In addition, a manager should provid e the subordinates with necessary information and tools for efficiently performi ng their roles. Organising refers to the process of bringing together physical, financial and human resources and establishing productive relations among them f or the achievement of specific goals. It is concerned with building up a stable framework or structure of various interrelated parts of an enterprise, each part having its own function and being centrally regulated. The aim of organising is to enable people to relate to each other and to work together for a common purp ose. The organised group of people in a collective sense are known as organisatio n. An organisational structure shows different classification of the departments and its employees hierarchy. This also fixes their authority and the type communi cation with the superiors, subordinates and their peers. An organisational struc ture also shows the type of span of control. It can be narrow or a wide one. An organisation has to follow certain management process such as planning, organisi ng, staffing, directing and controlling. Planning is the process of deciding in future the activities to be done .it includes plans, targets, and so on. Organis ing is confined with the activity of organising the requirements of a firm to im plement the plans which are formulated. Staffing is another important process of appointing required employees to particular positions to work as per the plans of the organisation. To do work as per the plans it needs directions, so directi ng is 3

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY another process. And last to see whether the actual performances of the activiti es are per the plans controlling process is done. So if any deviations are there it can be located and reasons are found out for that and been rectified as per the plans formulated. Such a situationis prevalent in Milma,Kollam Dairy. Thus a n Organisational Study was conducted which enables to know the real functioning of an organisation. 1.2 OBJECTIVES There are two objectives. There are primary a nd secondary objectives, Primary objective The study is conducted to get familiarise with the functioning of the organisati on. Secondary objective To know the functions of all departments. To know the interrelation of all departments with each other and the Dairy Manag er. To know the organisational culture. To know the various academic application s from the practical perspective. 1.1 SCOPE OF THE STUDY The study enables to kn ow, Functioning of Kollam Dairy Milk production Marketing of Milk products in Kerala The diary industry in India, special emphasis given to Kerala market. 1.1 RESEARCH METHODOLOGY Methods of Data Collection The most integral part of the study was the data coll ection process. The data consist of two types. It can be classified as primary d ata and secondary data. Primary Data 4

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Primary data are collected for the first time and are original in character. Her e the primary data are collected through an interview method with the managers o f the concerned department. Then interactions with the plant workers were done i n order to collect data regarding the processing of the plant. Secondary Data Se condary data are those which have already been collected by some other persons a nd which are passed through the statistical machines at least once. Data are col lected from websites, newspaper, and magazines. 1.5 LIMITATION OF THE STUDY 1. M ajority of the office staff were busy in the time of study conducted, less infor mation gathered from them. 2. All the plant workers and the officers were not me t due to different shifts. 3. It was found that some plant workers did not revea l certain information due to fear from the actions of the management. INDUSTRY PROFILE 2.1 INTERNATIONAL SCENARIO The international dairy federation, with its head qua rters Brussels, was established in 1903 and consists of 32 member countries thro ughout the world. 5

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY UNICEF has been the motivating force for establishing a dairy industry in many u nder developed countries. One of these is in India, where large modern processin g plants have been set up to process locally produced milk or to reconstitute mi lk from donated or purchased milk fat and powder. Domestic milk production has i ncreased in India and a part of the pasteurized milk is provided free to childre n in the larger cities through UNICEF. The first co-operative artificial breedin g association was organized in Denmark in 1936. There are now many such associat ions which helped the diary industries. After 1950s dairy industries faced a wid e range of development throughout the world. 2.2 NATIONAL SCENARIO Indian dairy sector has come a long way from price independence era of acute milk shortage an d dependent on foreign aid in the form of milk powder to meet the growing milk d emand. As a result of this a dairy co-operative society was registered in 1913 f or meeting this problem. Later Kaira District milk supply union was formed at An and. It was an important land mark in the history of the co-operative dairy sect or. Inspired by the achievements of this institution, the Government of India co nstituted a National Dairy Development Board in 1965. ANAND PATTERN ANAND is a s mall village of farmers in Kaira District of Gujarat. ANAND Milk Union Limited i s a Co-operative Society formed by the farmers of Anand Village for the purpose of distribution of milk. Now the world famous Anand Milk Union Limited is popula rly known as Amul. The Anand Milk Union Limited has a three tier structure. 1. Village level Primary Co-operative Society called APCOS. 2. District Milk Producers Union. 3. State Level Milk Marketing Federation. NATI ONAL DAIRY DEVELOPMENT BOARD National Dairy Development Board was developed by t he Government for the purpose of organising, planning and executing the dairy de velopment programmes in the country. This board, with the help of government, go t assistance valuing Rs. 120 crores under flood programmes. Under this scheme fi nancial assistance was provided to various state governments and other agencies for implementing development scheme. OPERATION FLOOD 6

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Operation Flood is an important move in the history of dairy development in Indi a. Operating Flood was conceived and formulated by National Dairy Development Bo ard during the fourth plan. It aimed at establishing a broad base for accelerati on and development of the dairy industry sponsored by the European economic comm unity through world food programme. Operation Flood was conducted to meet Indias rapidly increasing need for milk and milks product, and making dairy industry ca pable of viable and self-sustaining growth. The ideology followed by Operation F lood was the remunerative linking of the rural milk production centre with the u rban demand centre so as to build up a viable dairy industry. 2.3 STATE SCENARIO Dairy co-operatives were also developed in Kerala as a part of operation flood. Dairy co-operatives have a three tier structure in Kerala with primary milk sup ply society at the base and milk supply union at the district level and a state level federation. This co-operative society follows the Anand pattern of dairy d evelopment scheme. Apart from the state federation two regional unions were also formed in our state. 2.4 COMPETITORS Milma holds more than 45% market share, wh o is the front leader in the market. There are more than 30 competitors in Keral a against Milma. Some of other competitors are: Malanadu K.C.A A1 Milk Ambady Nirmalgram P.D.DP Surya Penta Pooja

Royal Figure 2.1

SALES OF KOLLAM MILMA PRODUCTS Table 2.1 7 Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY PRODUCT Milk Ghee Sambaram Curd CONSUMPTION 1, 20,000 litres/ day 30,000 litres/ monthly 1000 litres/monthly 2000 litres/day

2.5 REGULATORY FRAMEWORKS (1) ACTS OF THE GOVERNMENT: (a) Milk and Milk Products Order (i)Milk and Milk Products Order, 1992: The prod uction, distribution and supply of milk products are controlled by the Milk and Milk Products Order, 1992. The o rder sets sanitary requirements for dairies, machinery, and premises, and includ es quality control, certification, packing, marking and labeling standards for m ilk and milk products. Standards specified in the order also apply to imported p roducts. The Department of Animal Husbandry, Dairying and Fisheries at the Minis try of Agriculture is the regulatory authority. (ii)Essential Commodities Act, 1955: The main objective of the Act is to regulat e the manufacture, commerce, and distribution of essential commodities, including food. A number of Control Orders have been promulgated under the provisions of t his Act. (iii)Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977: The Act governs sale of packaged commodities and provides for mandatory registration of all packaged pr oducts in the country. (iv)Consumer Protection Act, 1986: The Act provides for constitution of District Forum/State/National Commission for settlement of disputes between the seller/se rvice provider and the consumer. 8

Source: Thiruvananthapuram Regional Co-operative Milk Producers t, 2009-10

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ORGANISATION STUDY AT MILMA, KOLLAM DAIRY (v)The Insecticide Act, 1968: The Act envisages safe use of insecticides so as t o ensure that the leftover chemical residues do not pose any health hazard. (vi)Export (Quality Control and Inspection) Act, 1963: The Act aims at facilitating export trade through quality control and inspection before the prod ucts are sold to international buyers. (vii)Environment Protection Act, 1986: This Act incorporates rules for the manufacture, use, import and storage of hazardous microorganisms / substances / cells used as foodstuff. (viii)Pollution Control (Ministry of Environment and Forests): A no-objection certificate from the respective State Pollution Control Board is essential for a ll dairy plants. (ix)Industrial Licences: No licence is required for setting up a dairy plant in India. Only a memorandum has to be submitted to the Secretariat for Industrial A pprovals (SIA) and an acknowledgement obtained. However, a certificate of regist ration is required under the Milk and Milk Products Order (MMPO), 1992. (a)Direc torate of Marketing and Inspection (DMI): The DMI enforces the Agricultural Prod ucts (Grading and Marketing) Act, 1937. Under this Act, Grade Standards are pres cribed for agricultural and allied commodities. These are known as "Agmark" Stan dards. Grading under the provisions of this Act is voluntary. Manufacturers who comply with standard laid down by DMI are allowed to use "Agmark" labels on thei r products. (b)Management Systems for Quality and Food Safety: ISO 9000 Quality Management Systems: The ISO 9000 system is looked at as a syste m with minimum quality requirements. It builds a baseline system for managing qu ality. The focus, therefore, is on designing a total quality management system, one that complies with external standards, but includes the specific requirement of industry and integrates elements of competitiveness. The millennium standard (ISO 9000:2000) has changed the focus from procedure to process. (c)ISO 14000 ( EMS): 9

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmen tal management systems (EMS). ISO 14001:2004 provides the requirements for an EM S and ISO 14004:2004 gives general EMS guidelines. (2) AUTHORITIES OF THE GOVERNMENT NATIONAL DAIRY DEVELOPMENT BOARD The National Dairy Development Board is an institution of national importance setup by an Act of Parliament of India. The main office is located in Anand, Gujarat with regio nal offices throughout the country. NDDB s subsidiaries include Mother Dairy, De lhi. It was founded by Dr. Varghese Kurien and Dr. Amrita Patel is the current C hairman of the National Dairy Development Board, Anand. The National Dairy Devel opment Board (NDDB) was created in 1965, fulfilling the desire of the then Prime Minister of India - the late Lal Bahadur Shastri - to extend the success of the Kaira Cooperative Milk Producers Union (Amul) to other parts of India. That su ccess combined the wisdom and energy of farmers with professional management to successfully capture liquid milk and milk product markets while supporting farme r investment with inputs and services. The major success of this mission was ach ieved through the World Bank financed Operation Flood, which lasted for 26 years from 1970 to 1996 and was responsible for making India the world s largest prod ucers of milk. This operation was started with the objective of increasing milk production, augmenting farmer income and providing fair prices for consumers. ND DB has now integrated 96,000 dairy co-operatives in what it calls the Anand Patt ern, linking the village society to the state federations in a three-tier struct ure.NDDB launched its Perspective Plan 2010 with four thrust areas: Quality Assu rance, Productivity Enhancement, Institution Building and National Information N etwork. (3) CENTRAL AND STATE DEPARTMENTS Government of India& Government ofKera la The Phenomenal success of the Dairy Co-operatives in Kerala could not have be en achieved, without the foundation of animal husbandry activities, led by the A nimal 10

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Husbandry Department, Dairy Development Department and Kerala Livestock Developm ent Board, of the Government of Kerala & India. COMPANY PROFILE 3.1 HISTORY Kerala Co-operative Milk Marketing Federation (KCMMF), popularly cal led Milma was established in April, 1980 with its Head Office at Thiruvananthapu ram for the successful implementation of the Operation Flood (a dairy programme launched in 1970 under the agenceis of National Dairy Development Board(NDDB). T he name Milma represents: 2,702 primary milk co-operative societies 7.78 lakhs farmer members Three Region al Co-operative Milk Producers Union Eleven Dairies capable of handling 9.90 la khs litres of milk per day. Thirteen Milk Chilling Centres Two Cattle Feed Plant s with cumulative capacity of 600MT per day One Milk Powder Plant of 10MT per da y capacity A well established Training Centre 5,200 retail outlets Over 32,000 p eople working either directly or indirectly for the functioning of milma 3.2 (a) Mission The mission of Milma is: Farmers prosperity through consumer satis faction. 1.2(b)Objectives To channelize marketable surplus milk from the rural ar eas to urban deficit areas to maximize the returns to the producer and provide q uality milk and milk products to the consumers. 11

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY To carryout activities for promoting Production, Procurement, Processing and Mar keting of milk and milk products for economic development of the farming communi ty. To build up a viable dairy industry in the State. To provide constant market and stable price to the dairy farmers for their produce. 3.3 Strategy The Motto of Co-operation,"of the people, by the people and for the people" is the foundation of the "three tier system" followed by the organisati on. At the village level Milma have the Village Milk Co-operative Societies whic h have the local milk producers as its members. These Village Co-operatives unit e at the Regional level and form Regional Co-operative Milk Producers Unions. T hese Unions are federated at the State level to form State Federation namely Ker ala Co-operative Milk Marketing Federation (KCMMF). 3.4 Associates Milma is in c onstant touch with other Organisations in this sector. It is only through this a ctive exchange that Milma grew from a small dairy co-operative to the position i t holds in Kerala today. Cheif associates are: National Dairy Development Board NDDB, under Dr. V Kurien s guidance set up KCMM F in 1980. Ever since then, there has been a very close co-operation between NDD B and the Federation. NDDB are the originators of the Operation Flood Programme and have been our funding agent for the Operation Flood Projects in Kerala. Amul The Dairy Co-operatives of Gujarat have been the inspiration for the develo pment of such a vast network of dairy co-operatives in Kerala. Among the co-oper atives in Gujarat, the Kaira District Co-operative Milk Producers Unions (Amul) is the the first in this sector. Our Co-operatives are called "Anand Pattern Co -operative Societies" following the illustrious lineage of "Amul". Government of Kerala The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved, without the foundation of animal husbandry activi ties, led by the Animal 12

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Husbandry Department, Dairy Development Department and Kerala Livestock Developm ent Board, of the Government of Kerala. FUNCTIONAL AREAS OF MILMA, KOLLAM DAIRY Kollam Milma Dairy has well established HRD, Financeand Account, Procurement and Inputs, Production, Quality Control, Marketing, and. Maintenance and Engineerin g departments. Human Resource Development Milma has 2098 skilled, efficient and qualified personnel and has an excellent l abour relationship Takes active role in framing personnel policies and service rules Finalise long term wage settlement, bonus etc. Placement and career development activities. Fi nancial management of KCMMF and its units Liaison with financial institutions fo r availing loan for creation of infrastructure. Liaison with Government for avai ling Government financial assistance Long term repayment and scheduling of loans Capital Management Schemes for primary co-operative societies Recommend remuner ation of APCOS employees Centralised purchase of Dairy consumables Purchase of R aw Materials for Cattle Feed Plants Purchase functions of KCMMF Head Office Bran d Management Bulk trading of surplus products Co-ordinated promotional activitie s Packaging & Product Development Procurement & Consumer Pricing Finance and Accounts Procurement and Inputs Marketing 13

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Quality Control Render technical & legal assistance to primary dairy co-operatives and Regional Milk Unions Liaison and maintain quality of milk and milk products as per the st andards Liaison with statutory authorities for bringing in suitable amendments i n statutes Attend to consumer complaints on quality problems Planning and execut ion of projects for creating infrastructure for Regional Milk Unions and KCMMF Projects Providing consultancy for execution of projects Liaison with statutory authoriti es like Factories and Boilers, Electrical Inspectorate, Dept.of Explosives etc f or obtaining approval and implementation of projects Liaison with Government for land allocation, water, power and other amenities Es tate management and assistance in maintenance of Plant & Machinery of KCMMF Unit s Computer Maintenance of Systems at KCMMF, Units and Regional Milk Unions Conduct s Training programs for development of computer skills 3.5 TOP MANAGEMENT Top Management of Kerala Co-operative Milk Marketing Federati on (KCMMF) The Board of Director of Thiruvananthapuram Regional Co-operative Mil k Producers Union Ltd (TRCMPU) is headed by the Board of Directors The Present Chairman of the Union is Shri.Kallada Ramesh The Managing Director of the Union is Shri. Baby Joseph The Board of Director of TRCMPU Ltd. comprise of 14 directo rs elected from among the Presidents of affiliated Primary Milk Producer Societi es, three Govt. nominees and the Managing Director as ex-officio member. Board i s the Policy making forum of the Union.The term of Board is five years. BOARD OF DIRECTORS Shri. Kallada Ramesh Shri. K Ayappan Nair Shri. MurthikkavuDivakaran Shri. Girish Kumar Chairman Director Director Director 14 Table 3.1

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Smt. Sreeja S Shri. Venugopalakurrupu Shri. K Rajashekaran Shri. S SadashivanPil lai Shri. Gopakumar Shri. Mathew Chammathil Shri. Sebastain Joseph Shri. George Joseph Shri. Baby Joseph Director Director Director Director Director Director Director-NDDB Director-KCM MF Director 3.6 KERALA CO-OPERATIVE MILK MARKETING FEDERATION (KCMMF)

Figure 3.1 KCMMF LTD TRCMPU ERCMPU MRCMPU Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 Milma is the trade mark of the Kerala Co-operative Milk Marketing Federation Ltd , which is the apex Co-op of three regional milk Unions viz. Thiruvananthapuram (TRCMPU), Ernakulam (ERCMPU) and Malabar (MRCMPU). Performance of KCMMF Mileston es Federation and all the three Regional Milk Unions joined hands with NDDB to be a part of the national stream to promote co-operative brand. In the wake of compe tition from private sector, KCMMF and the Regional Milk Unions readily accepted the well planned Marketing Strategy of NDDB and the mnemonic symbol of NDDB was introduced in the milk pouches in the State. Kerala is the first federation to a dopt the mnemonic symbol throughout the State. The year 2007 was a landmark year for milk production in the country, which reac hed a new high. At over 100 million tonnes, milk output has breached the magical three15

Source: Thiruvananthapuram Regional Co-operative Milk Producers t, 2009-10

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ORGANISATION STUDY AT MILMA, KOLLAM DAIRY digit level, making India the worlds second largest producer, after the European Union (154 million tonnes) and accounting for nearly 15 per cent of the world pr oduction of 675 million tonnes. The milk prices in India have been rising primar ily because economic growth and demographic pressure have pushed demand higher. Prices also edged up because of the countrys entry into the international market for skimmed milk powder. High milk powder prices led the government to even plac e an embargo on its export. Being milk deficit State, the year 2007-08 was a tur bulent year to Kerala and our dependency on other States have increased. With th e active coordination and involvement of Regional Milk Unions Milma could get th rough the problems faced by our organization in this front and we could meet the demand for milk from our esteemed consumers. 27 years ago, we responded to the challenges that threatened dairying in our Sta te by implementing the Operation Flood program with the active support and assis tance of the National Dairy Development Board. NDDB guided in taking up us the c hallenges with a program that contributed significantly to creating the self-rel iant, vibrant dairy industry that now greatly benefits millions of rural househo lds across the country. Though, milk price was increased twice during the financial year and we passed o n nearly 70% of the increased consumer rupee to the farmer s, still our members are struggling to continue in the profession due to spiralling cost of productio n. We would believe that what the milk producer seeks to achieve by engaging his time and energy in milk production is a remunerative price and a stable round t he year market. If these two needs are fulfilled, then the milk producer would c ontinue in dairying and perhaps, even expand even expand his business,of course within the boundaries of other constrains. Increasing the selling price of milk and passing on maximum benefit to the farme rs is not the only solution and in long run we have to look for other ways. The choice of cost plus approach for milk pricing would breed inefficiencies since i t would ignore the demand factor. Similarly this would be an open invitation for large-scale import of milk from the less priced neighboring states through othe r channels and ultimately work to the determent of the milk producers of our Sta te. So also, we have to appreciate that soaring prices in a shorter period could adversely affect domestic consumption as many of the households are in the lowincome category. 16

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Healthy growth in milk production can be achieved only through active interventi on in reducing the cost of production at farmer level and sustained investments in animal feeding, breeding and health care. A heavy surge in raw material prices for manufacturing of cattle feed has placed us in a crisis situation as cattle feed plants are running heavy losses. Though we tried to keep the cattle feed prices at reasonable levels, the increasing co st of raw material forced us to increase the selling price of cattle feed which in turn resulted in increased cost of production to our farmer members. The situ ation with regard to the availability of raw material needed for cattle feed man ufacturing was not at all rosy. The oil cakes are costly and in short supply. Ma ize is being diverted for the production of ethanol as bio-fuel due to its bette r conversion efficiency in the fuel. Molasses became a scarce material and availability and its price become serious concern to us. The prices of rice bran have gone up mainly due to ban on export of rice. Since the ingredient cost is going up regularly, the cost of the compou nded feed is also going up, beyond the reach of a small producer. As the cost of milk production increases, the margin of profit for the producer decreases. Thi s is quite discouraging trend, especially for the milk producers who are sometim e even forced to quit dairying as a profession. We feel that it is high time we looked forward for alternative nutritional technologies, which would help our me mbers to get the nutritional requirement for their animals. So also efforts to b e made by through Government intervention to cushion the dairy producers against inflation by extending subsidy to the farmers for purchase of cattle feed at re asonable prices. Milma acclaimed as the No:1 brand in the State for the 2nd consecutive year in t he survey conducted by Dhanam Magazine which shows the popularity and consumer b elongingness of this household brand. Aims for the year to come The dairy industry in the country is exposed to various challenges.The managemen t of lean-flush periods has always been a matter of major concern to Milma and i t still continues to be a key problem to be addressed on top priority. Milma has to rededicate ourselves to uphold our oft-repeated slogan "Farmers Prosperity through Consumer Satisfaction". To keep farmer and consumer contended and happy in chorus is a difficult task. Milma has to formulate strategies and plans to ac complish the aforesaid task. Though a quarter century has elapsed since the draw n of Operation 17

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Flood programme we are yet to achieve self-sufficiency in milk production. At th e same time we can be proud of our achievements in the area of infrastructure de velopment, milk consumption enhancement and economic and social development of r ural dairy farmers. A joint concerted effort of Milma and other Government agenc ies in Dairy Development and Animal Husbandry will go a long way in fulfilling o ur dreams. We have to strive to wipe off the accumulated losses and to improve t he performance both on the physical and financial fronts. Your trust, your confi dence and your encouragement will further energize and motivate us in this pursu it. Food crisis is a major threat now faced by the world and being the 2nd largest p opulated country we are forced to bear the brunt more than others. Our Governmen t is giving priority to ensure food security to the citizens. To ensure food sec urity we have to enhance domestic production of agricultural commodities includi ng dairy products. This can only be achieved through ensuring remunerative price s to their produce and encouraging them to produce more milk and other agricultu re products. We have to strengthen the hands of our farmers by enhancing their c apability to produce more and thereby ensure the prosperity of our nation . The Federation achieved a turnover of Rs. 14128 lakhs in the year 2007-08 as aga inst Rs.13280 lakhs during previous year. Table 3.2 Year Turnover of KCMMF (Units wise - Rs.in Lakhs*) Cattle Feed Plant Pattanakkadu Cattle Feed Plant Malampuzha 1212.65 1220.71 1903.05 3667.48 3798.49 2922.4 2691 .13 3124.79 Central Products Dairy, Alappuzha 1333.63 1463.66 1704.95 2307.53 2778.82 3053.2 3 2901.08 3020.13 Total 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2226.91 2069.16 3041.71 4419.66 4284.89 4580.42 4691.39 4968.62 4773.19 4753.53 6649.71 10394.67 10862.20 10556.05 10283.60 11113.54 18

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 4325.24 5135.58 5082.00 4933.08 5644.05 6465.80 3885.46 3602.57 3954.00 4738.22 5074.30 6747.92 3629.94 4000.85 4244.00 4456.55 5507.38 6150.56 11840.64 12739.00 13280.00 14128.00 16186.62 19364.28 Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 Table 3.3 Turnover & Profits of Milma (2009-10) TRCMPU ERCMPU 231.07 2.78 MRCMPU 357.45 1. 21 KCMMF 193.64 (-)0.75 TOTAL 1144.78 3.42 Turnover / Rs in crores Net profit/Loss 362.62 0.18 Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 Table 3.4 Milk Procurement and Sales of KCMMF Year 2000 2001 2002 2003 2004 2005 2006 Procurement (Litres) 2249.33 2487.11 2418.25 2179.73 2319.70 2630.14 2921. 14 Sales (Lakhs) 2308.69 2412.83 2558.59 2698.80 2841.21 3069.51 3340.05 19

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY 2007 2008 2009 2010 2722.90 2693.57 276.45 2729.00 3497.43 3475.22 3575.91 3911.96 Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 Organisation Profile -TRCMPU Ltd (MILMA) Organisation Thiruvananthapuram Regiona l Co-operative Milk Producers Union Ltd (TRCMPU) was registered in 1985, as a R egional Milk Union with 4 Southern Districts of Kerala viz, Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta as its area of operation. TRCMPU was formed by dividing the area of operation of Kerala Milk Marketing Federation, formed f or implementing of II project in 1980, in to two viz ERCMPU with 4 northern dist ricts under of II area, and TRCMPU. Thiruvananthapuram Regional Co-operative Milk Producers Union has completed 25 ye ars of its operation successfully. It has successfully faced odds like excessive procurement in the initial stages and consequent losses, stagnation of sales in early 1990s and of late shortage of milk and related problems and consequent los s. With such diverse experience in the past and the talent pool it has, it can f ace any adverse environmental problems successfully. In 1985, Union started oper ation from the old Thiruvananthapuram Dairy handed over by KLD & MM Board which was selling milk in Thiruvananthapuram and Kollam districts and having a capacit y of 40,000 LPD. The first Dairy plant under OF II project in TRCMPU area was co mmissioned at Kollam with a capacity of 60,000 LPD in 1986. Subsequently Chillin g Plants with capacity of 10,000 LPD each were set up at Mannar and Pathanamthit ta. New Dairy Plant at Alappuzha with a capacity of 60,000 LPD was commissioned in 1989, and new Dairy Plant with one lakh LPD capacity was commissioned at Thir uvananthapuram in 1992. The Dairy plant at Alappuzha was transferred to KCMMF in 1992 in order to facilitate operation of Powder Plant set up at Alappuzha for h andling surplus milk in the State. 20

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Subsequently capacity of Kollam Dairy was expanded to 1 Lakh LPD and that of Thi ruvananthapuram Dairy to 2 Lakh LPD. The capacities of the Chilling Plants were also expanded to 30,000 LPD each. A glance at the unions procurement and sales ov er the years as given below and reveal that Unions procurement and sale has been showing a two digit growth over the years. Table 3.5 Past Performance of TRCMPU Ltd YEAR 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 MILK PROCUREMENT(LPD) 231649 273551 252521 205067 206200 234280 254827 230476 21 3085 MILK SALES(LPD) 288334 298788 316425 321806 354361 377579 406890 402109 403073 Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 However the growth in procurement has always been lagging as compared to milk sa les. Union used to have surplus milk in the flush season up to 1996. However the fast growth in demand thereafter and rapid decline in milk production in the St ate after 2001, owing to demographic problems like rapid urbanization, diminishi ng land holding size, transformation to nuclear families and reduction in family size, due to reduction in population growth, attractive price for cash crops, s hortage of unskilled labour an offshoot of high literacy rate, etc. The demand f or milk has been growing rapidly since the beginning and even the opening up of markets in 1991 did not affect this growth much. Unlike the northern districts o f the State, not many competitors ever came to the market. Union in fact had max imum sales growth during the period 1995-2000. Union has been purchasing milk ri ght from the 21

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY beginning from the other two sister Unions and also from outside states mostly T amil Nadu till the year 2006. From 2006 onwards, Unions milk deficit shot up due to rise in demand and drop in milk procurement and the milk availability in Tam il Nadu also came down and hence Union was forced to move to Karnataka for meeti ng its deficit. This reduced availability of milk in the Southern States resulte d in the steep increase in milk price in Karnataka and Union started incurring l oss on milk purchased from outside. Side by side the price of skim milk powder a lso sky rocketed. The combined effect of these was the heavy loss to union in 20 07-08. Appendix III shows the financial performance of Union since beginning. Un ions sales turnover from products has always been below 10% since beginning, sin ce Union never had surplus milk after meeting demand for liquid milk. Vision To achieve the status of the best union in the country in turnover and profitabilit yby achieving 10-15% growth per annum by accelerating the growth in milk product ion and sale of milk and milk products and by diversification into related areas in food sector. Mission To become the leading organisation in the food and nutrition sector in t he region, through the attainment of its marketing objectives and to become nucl eus of an endeavour for an accelerated development of the rural economy of the r egion. Further it would aspire to function as professional,profitable and social ly responsible organisationensuring better returns to farmers,primary societies as well as its customers by providing good value fo r their money. Units of TRCMPU The Units of TRCMPU are as follows, 1. Thiruvananthapuram Dairy: Thiruvananthapuram Dairy is Located on the way to Kovalam 4 Km from the City. T he Dairy with a capacity to handle 1 lakh LPD was commissioned in 1992. The Dair y is selling milk in Thiruvananthapuram District except ChirayinkeezhThaluk. No. of Employees No. of societies pouring 287 340 22

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY No of agents selling milk Average procurement Average milk sale 2100 100,000 LPD 2,10,000 LPD The Entire Milk is collected through Bulk Milk coolers Thiruvananthapuram Dairy started to collect the entire milk through Bulk Milk Coolers since November 2009 .The capacity of the Dairy has been expanded to 2 Lakh litres per day by 2001 No w it is proposed to expand the capacity to 3 Lakh litres per day. In addition a separate block for manufacture of Products is proposed to be constructed. Thiruv ananthapuram is the first "ISO 2001" certified Dairy in the State and all steps have been initiated to get HACCP for Thiruvananthapuram Dairy. 2. Kollam Dairy: The Dairy was commissioned in 1986 with a capacity to handle 60,000 litres per d ay and subsequently expanded to handle 1 lakh litres per day. No of employees No of Societies No. of agencies Average milk collection Average milk sale 226 336 1080 50,000 LPD 120,000 LPD Quantity processed and supplied to Pathanamthitta unit-45000 lpd At present 18,0 00 litres milk is collected through Bulk Milk Coolers and the remaining quantity in Cans. Presently the milk marketed in Pathanamthitta district is supplied fro m Kollam Dairy, in pasteurized, standardized condition. 3. Pathanamthitta Dairy: A new dairy plant with 60,000 litre capacity is constructed at Thatta near Adoo r in Pathanamthitta district and is expected to be commissioned by the end of 20 09. Presently there is a 30,000 litres Chilling Plant in the district. Milk is a lso packed there at present. These facilities will be decommissioned when the ne w Dairy Plant is commissioned. Now the entire milk in the district is being coll ected through Bulk Milk Coolers. 4. Alappuzha District: In Alappuzha district, 6 0,000 Litres per day dairy constructed under O.F II has been expanded to 1 Lakh litres per day which is managed by KCMMF. Milk Procurement and 23

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY marketing activities are carried out by Union. There is also a Chilling Plant wi th 30,000 Litres capacity in the district. Table3.5 Details of Staff, Senior Off icers Head Office, TRCMPU DESIGNATION Managing Director: Senior Manager (Production): Senior Manager (Insp ection): Manager (Maintenance): Manager (Marketing): Manager (HRD): Manager (F&A ): Officer I/C(MIS/Systems): Assistant MD: NAME Sri.Baby Joseph Sri.R.Sudhir Dr.K.Marthandan Sri.K.S.Vijayakumar Sri.G.Raje sh Sri.K.R.Polachan Sri.G.Krishnalal Sri.Sarathchandrababu Sri.K.K.GopinathanNai r Table3.6 KOLLAM MANAGEMENT Dairy Manager Human Resource Manager Marketing Manage r Finance & Accounts Manager Procurement & Input Manager Production Manager Qual ity Manager Mr. Prasanna Kumar Mr. FiroshMurali Mr. Sri.K.Sathyanarayanan Mr. Sr i.A.K.Madhusoodanan Nair Mr. Joan Lewis Mr. Sri.I.G.Venugopal Mr. UnniKrishnan V .S Engineering Manager Mr. C K James Source: Kerala Co-operative Milk Marketing Fed eration (KCMMF) Report, 2009-10 Maintenance Manager Mr. Suresh Chandran K.R 24

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Source: Kerala Co-operative Milk Marketing Federation (KCMMF) Report, 2009-10 3.7 PRODUCTS PROFILE Pasteurized Milk Milma pasteurized vitamin A enriched milk comes in three varieties. Fat free milk Toned milk which contains 3.0% fat and 8.5% SNF Standardised milk which contains 4.5% fat and 9.0% SNF Conveniently packed in 500 ml and 1 litre sachets, the fat content range of Milm a s Milk has made it the popular health drink of young and old alike. Sterilized Flavoured Skimmed Milk Prepared from pasteurized skimmed milk, sweetened with c ane sugar and flavoured with cardamom. It is very tasty in chilled condition and has a keeping quality of 60 days. Ice-Cream Milma ice-cream, is available in a range of lip smacking flavours: vanila, choco late, mango, strawberry and fruit & nut. In addition, our Ernakulam Union also p roduces and distributes delicious "kulfi" and cream rolls. The only ice-cream in Kerala market which is manufactured in a dairy,and hence most fresh ice cream. Sambharam Sambharam (butter milk) a favourite beverage of Kerala.MilmaSambharam, the only product of its kind in the market, is very popular throughout the Stat e. It comes in convenient 200ml throw away sachets. Curd 25

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY It is a fermented product prepared from pasteurized skim milk using Curd Culture from National Dairy Research Institute (NDRI). It is delicious, tasty, free fro m cholesterol and available in 500ml and bulk. Lassi It is a sweetened and flavo ured product prepared from curd. It is available in 200ml pack and is a very goo d health drink for all age group. Ghee Ghee is a key ingredient in most Indian d elicacies. Milma produces good quality, pure ghee from butter or cream at all da iries. The ghee is available in convenient packs of 100gm to 15Kg. Butter Milma Butter prepared from the cream of milk contains 81% fat and less than 15.6% wate r. This is available in convenient 100gm,200gm and 500gm family packs. Available in salted and unsalted varieties. Tetrapack Flavoured Milk Milma offers a range of flavored health drinks in hygienic tetra packs. Cardamom milk has already ca ptured the market and are available at all Milma outlets. Refresh In addition to milk drinks, Milma also has a mango drink in the market. Refresh, Milma s mana go drink is a favorite in the fruit drink sector. Peda An indigenous milk produc t manufactured by evaporating water content from wholesome cow s milk and sweete ned with cane sugar. It is a nutritious and delicious sweet bite for children. I t is available in 25gm and 250gm cartons. Cream Roll Mixture of tasty ice-cream and tooty fruity encircled with oven fresh sponge cake. It is a delicious snack rich in Milma cream. 26

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Milma Ize Premium Soda MilmaIze Premium Soda recently introduced in the market a s part of product diversification. Milma Chocolates: (a) Milky Thundr: Wafers co ated with black and milk chocolate. The product is sold at Rs.5 (b) Milky Beats: Milk chocolate bar, available in the market at Rs 10. (c) Choco Beats: Black ch ocolate bar, available in the market at Rs 10. (d) Milma Krispy: Black chocolate wafer at the price of Rs.5 (e) MilmaChocochat: Small black chocolate bar at the price of Rs.2. (f) MilmaEclairs: clair toffee for Re.1 MilmaPayasam Mix Full ing ridents for making payasam is available as a kit during Onam season. Cattle Feed Balanced cattle feed is the major input provided to the dairy farmers of the Sta te from the Federation. There is a high level of acceptability for this product in the market. Milma is now producing 600MT cattle feed a day. It produces both mash and pellet form of cattle feed. In addition to augment the balanced feed an d to support vitamin level in animal, milma has come out with milma mineral mixt ure - "MilmaMin". The cattle feed is distributed to farmers at reasonable rate t hrough Apcos, Dealers and Government agencies. Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best quality cattle feed by Indian Asso ciation of Veterinary Pathologists during 1998. 27

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY ORGANISATION CHART An organization chart is a diagrammatical form which shows important aspects of an organization including the major functions and their respective relationships . In other words , it is a graphic portrayal of positions in the enterprise and of the formal lines of communication among them. It provides a birds eye-view of the relationships between different departments or divisions of an enterprise as well as the relationships between the executives and subordinates at various le vels. It enables each executive and employee to understand his position in the o rganization and to know to whom he is accountable. Thus, it is obvious that an o rganisation chart has the following characteristics: 1. It is a diagrammatical p resentation. 2. It shows principal lines of authority in the organisation. 3. It shows the interplay of various functions and relationships 4. It indicates the channels of communication. < An organization chart is merely a type of record showing the formal orgainsation al relationalship which management intends should prevail. It is, therefore, pri marily a technique of presentation. It presents diagrammatically the lines of au thority and responsibility among different individuals and positions. It may be either personnel or functional. Personnel organization chart depicts the relatio nship between positions held by different persons. Functional organization chart depicts the functions or activities of each unit and subunit in the organiastio n. Organisation chart helps in the following ways, 1. It shows the employees how their positions fit into the total organisation an d how they relate to others. It shows the lines of authority and responsibility among emplo yees. 2. It serves as a valuable guide to the new personnel in understanding the organisation and for their training. 28

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY DEPARTMENTS & FUNCTIONS 29

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY DEPARTMENTS AND FUNCTIONAL AREA ANALYSIS Chester I. Barnard defined formal organ ization as a system of consciously coordinated activities or forces of two or more persons. A formal organization is deliberately designed to achieve some particular objectives. It refers to the s tructure of well-defined jobs, each bearing a definite measure of authority, res ponsibility and accountability. The structure is consciously designed to enable the organizational members to work together for accomplishing common objectives. It tells the employee to do certain things in a specified manner, to obey order s from designated individuals and to cooperate with others. Coordination also pr oceeds according to a prescribed pattern in the formal organization structure. T he formal organization is built around four key pillars, namely: (iii) Structure (i) Division of labour (ii) Scalar and functional processes (iv) Span of control Division of labour and specialization is the basic principle of formal organizat ion. The scalar and functional processes imply the growth of the organization bo th vertically and horizontally. The structure of the organization refers to the overall arrangement in the organization which ensures proper balance between dif ferent parts of the organization and secures the execution of all operations and the achievement of organization objectives. The span of control refers to the n umber of subordinates directly reporting and accountable to one superior.The Org anisational Structure of any firm will include the Top Level Management, who tak es the main administrative decisions for the business concern; the Middle Level Management which is concerned with the day to day management of the concern; and the Lower Level Management which is concerned with the normal day to day activi ties of the concern. Milma follows such a structure for the department and funct ion areas. 5.1 HUMAN RESOURCE DEVELOPMENT DEPARTMENT ORGANISATIONALSTRUCTURE HUMAN RESORCE DEVELOPMENT Figure 5.1 30

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Assistant HR Mgr Assistant Personnel Officer Junior Superintendent Senior Assist ant Junior Assistant Stenographer Typist Office General FUNCTIONS Deals with all the matter of employees. rview Training Performance appraisal Grievance redressal ROLES & RESPONISIBILITIES (1)Assistant Manager: Total administration of discipline in the firm. Communicating between the manage ment and the employees. Solving the problems regarding employees. Takes precauti onary measures to avoid unrest in the firm. Assists the assistant HR manager. (1)Assistant Personnel Officer: (1)Junior Superintendent: Deals with salary matters such as ESI, PF etc Deals with welfare of the employee s Deals with matters regarding transfers, payments etc 31 (1)Senior Assistant: Recruitment Selection Tests & inte

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Service matters (1)Junior Assistant: Deals with the primary stages of grievance redressal Does secretary jobs towards the assistant manager. Does job related to typing the official matters of the f irm. Does filling works and collecting couriers. (1)Stenographer: (1)Typist: (1)Office General: STAFF POLICY There are 226 employees in Kollam Dairy Milma. It includes 32 employees and rest areworkers.The members in the organisation formed a welfare society named Milma Employees Welfare Organisation. A cooperative society is working in the organisat ion to provide loans to the workers at a nominal rate of interest. This society gives scholarship and cash award to the children of employees in the organisatio n who gets high marks in their studies. (a)WAGE PAYMENT AND INCENTIVE PLAN Milma is under time basis wage payment system. Under this method employee is pai d on the basis of time worked. Milma is giving the following non-financial incen tives to the workers. 1. 2. 3. 4. 5. Offers job security. The superior officers take interest on the subordinates. Pr ovide more promotion. Provide more training for unskilled and new workers. Facil itate labour welfare and social security measures. (a)FRINGE BENEFITS The following are the fringe benefits provided to its workers 32

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY i.Leaves Every employee can take 13 casual leaves in a year ii.Provident fund an d gratuity The provident fund scheme is followed by the organisation. They also provides gratuity scheme with the help of General Insurance Company. (a) OTHER BENEFITS Each employee of the organisation gets 500ml of milk every day. As per the Bonus Act of 1948, they are paying bonus to the employees. There is free uniform and footwear washing facility. (b)PROMOTION AND TRANSFER POLICY The policy applies to promotion within workers categories and workmen confirmed in the permanent service of the federation/unions working of its various units w ithin Kerala state and at the registered office. Promotions are on the basis of seniority rather than merit. < TRAINING AND DEVELOPMENT Milma sends their workers to many training institutions in various parts of Indi a. Important among these institutions is MANSING INSTITUTE OF TRAINING, GUJARAT. T hey adopt the following techniques like formal lecture, seminar and so on.Milma also gives apprenticeship training to workers and provides a stipend to them. Th e training covers areas in management training as well as operational areas. SELECTION PROCESS Temporary staff are recruited by the concerned units and permanent staff are rec ruited by the head office, in the following process: 1. Inviting application Fed eration releases the advertisement in leading news papers showing the vacancy an d quality required by the applicant. 33

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY 2. Screening the application The next step is the screening of the application t o reduce the number of applicants and also to find out more suitable candidates. 3. Interview Next step is the interview conducted by top officials of Milma. In terview is also conducted by a group of various managers. 4. Final selection If a candidate overcomes all the procedures given above, he would be selected. An a ppointment letter is given to him mentioning the terms of appointment, pay scale etc. The selected candidate undergoes a probationary period of one year. DISCIPLINARY PROCEEDINGS The HRD department is responsible for maintaining discipline in the organisation . At the Kollam diary, the rules and regulations for office staff and workers ar e different. Staff regulations are concerned with the office and standing orders are concerned with workers. If there is way in disciplinary action arises from a worker standing order will be issued. The procedure in as follows: Written exp lanation is asked from the concerned workers. Domestic enquiry will be conducted either by an efficient advocate or by a top manager in the dairy. WORKING HOURS The office time is from 10.00 am to 5.00 am. The workers work for 8 hours in th e dairy. There are 3 shifts: 7.00 a.m to 3.00 pm, 3.00 p.m to 1.00 pm and 11.00 p.m to 7.00 am TRADE UNION Trade unions are voluntary associations of workers or employers formed to promot e and protect their interests through collective action. The Trade Unions Act,19 26 defines a trade union as a combination, whether temporary or permanent, forme d 34

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY (i) Primarily for the purpose of regulating the relation between (a) between wor kers and employers (b) between workers and workers (c) between employers and emp loyers, or (i) For imposing restrictive conditions on the conduct of any trade o r business, and includes any federation of two or more trade unions. The main tr ade unions in Kollam Milma are, All India Trade Union Congress (AITUC), Central Industrial Trade Union (CITUC), and Indian Trade Union congress(INTUC) PUNCHING SYSTEM The attendance of the employees is done by punching system. There are discussion s going on for the implementation of finger laser punching system within two mon ths. This system can automatically can daily attendance and compute the salary o f employees. This process enables achieve accurate salary as well as incentive c alculation. 5.2. FINANCE AND ACCOUNTS DEPARTMENT ORGANISATIONAL STRURCTURE OF FINANCE & ACCO UNTS Figure 5.2 Assistant Mgr Assistant Account Officer Superintendent Computer technician 35

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Senior Assistant Junior Assistant Mgt Apprentice Occasional Apprentice FUNCTIONS Providing financial assistance as per the departmental requirements. eeping the monetary transactions in the book of accounts expect the marketing de partment. Proceeding requisitions of Milma Kollam units requirements towards the head offic e. Finance department also deals with the Systems department. Systems department operates with software which is made by KCMMF, Milma Integrat ed Information System. ROLES & RESPONSIBILITIES (1) Assistant Manager: Deals with the entire functions of the Finance and Systems departments. Final ve rification of all financial matters. Confirms sending the concerned statements t o the Dairy Manager. (1) Assistant Account Officer: Verification of entire accounts (1) Superintendent: Verifies the milk value Computing the TDS Preparing the inter units transfers (1) Senior Assistant: Transactions relating to the outside purchases Transactions relating to the transp ortations & distributions Transactions relating to the TA (1) Junior Assistant ( Cashier) Issuing cash payments, especially salaries and wages. Making advance payments. 36 K

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY (1) Mgt Apprentice: Issuing cheques Dealing with the bank matters. (1) Occasional Apprentice: Filling Collecting couriers. (1) Computer technician : Development of softwares to support various functions. S upport Management Information System Networking SOURCES OF FINANCE: LONG TERM: the source of long term finance is only term loan s. CPD gets its financial assistance from National Dairy Development Board (NDDB) through KCMMF. There is an agreement between the federation and NDDB. As per the agreement between them 70% of the loan amount should be repayable and the remaining 30% subsidy. SHORT TERM: the source of short term fund is procured from the Canara Bank at th e prevailing interest rates. It is mainly in terms of overdraft. MODES OF PAYMENT HRD dept prepares the payment for employees and sends to the Finance dept. Payme nts are made in two ways, through direct cash which is paid in the finance dept and other through in bank i.e., in the Canara Bank. Overtime payment is not paid in cash but paid in bank. The following are different modes of payments at cert ain situations. CASH PURCHASE: Makes payment within 10 days made to societys milk purchase. CREDI T PURCHASE: 15 days get as credit period for film (plastic cover pack) purchase. ADVANCE PAYMENT: Advance payment is needed for purchase of skimmed milk. DEPRECI ATION The depreciation pattern maintained as per the Income Tax Schedule. Every year t he firm prepares provision of depreciation. 37

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY The following are the depreciation rates for the concerned assets. Building Factory building Plant & Machinery Vehicles Furniture 5% 5% 30% 20% 15% AUDITING PROCESS The dairy has statutory auditing, which is done by the registra r of the cooperative society. For the purpose a representative is appointed in t he dairy as their concurrent auditor. PROFIT SHARING: The profit earned is given to the farmers as per the quantity and quality of milk they supplied to the con cerned society. Further the dividend is paid to the shareholders. STATEMENTS & L EDGERS (a) Journal (b) Ledgers (c) Sub ledgers (d) P& L a/c (e) Balance sheet( yearly maintained) (f) Trail balance (g) Bank reconciliation (h) Budget 5.3. PROCUREMENT AND INPUTS DEPARTMENT ORGANISATIONAL STRUCTURE OF PR OCUREMENT AND INPUTS Figure 5.3 Assistant Mgr Milk Procurement Officer Veterinary Officer Assistant Milk Procurement Officer Senior Supervisors Junior Supervisors FUNCTIO NS This department deals in procuring milk from the societies. Calling tenders o f vehicles 38

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Scheduling of routes Providing veterinary services. Providing cattle feed supply ROLES & RESPONSIBILITIES (1) Assistant Manager: Ensuring all the activities is performing according the plans. (1) Veterinary Officer: All medical issues of the cattle are treated. (1) Milk Procurement Officer: Entrusted with the activities of calling tenders and quotations of vehicles. Sch eduling of the routes. (1) Assistant Milk Procurement Officer: Assisting in the works of the Milk Procurement Officer (1) Senior Supervisors: Deals with the extension activities in the field such as , Finding the needs of the farmers. Conducting camps and seminars (1) Junior Supervisors: Assisting with the activities carried out by the Senior Supervisors. PROCURING: Procures milk from the societies through tendered trucks and reaches to the plant. Kollam Milma has 11 regular routes and 11 emergency routes. Milk collecti on route contract is awarded annually by collecting competitive offers. Union is going for quality improvement of raw milk by installing milk coolers in Societi es. At present 41 Nos of coolers are in operation. Government of India is financ ing 75% cost for installing coolers. Rs.10 crores has already been sanctioned fo r this. Union will meet all expenditure for operating the coolers in Societies. VETERINARY SERVICES: This service is extended to the farmers irrespective to the cost involved for its operation. INPUT WING: Input wing is responsible for health care, insurance, genetic up gra dation, nutrition, and production enhancement. PROCUREMENT PROCESS OF MILK FROM FARMERS 39

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Figure 5.4 40

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY 5.4. PRODUCTION DEPARTMENT ORGANISATIONAL STRUCTURE OF PRODUCTION Figure 5.5 FUNCTIONS Involved with the processing of milk. Production of curd, buttermilk and ghee. P rocures raw materials. Procures milk from outside state in the times of scarcity . Makes payments for the milk powder.

ROLES & RESPONSIBILITIES (1) Production Manager: Controls the entire production function of the plant. Hears the grievances of pl ant employees if any. Informs the Dairy Manager about the production status. (1) Assistant Production Manager: Assists the Production Manager in his work. (1) Technical Officer Scheduling of the plant activity. (1) Technical Supervisor: Implementation of plans. Ensures that the milk tankers arrive as per the schedul e. (1) Operators : Operates the plant machines (1) Workmen: Involves in the production process. 41

ORGANISATION STUDY AT MILMA, KOLLAM DAIRY Figure 5. 6 THE PRODUCTION PROCESS Raw Milk at diary Societies Milk producers (APCOS)Raw milk is accepted based on Organologistic evaluation

Testing for fat on SNF Acidity MRTP test for bacterial load SPC Test for acidity Coliform Chilling to