IT APPLICATIONS IN DAIRY INDUSTRY

Vivek Sharma 10DM-181, Sumedha Nanda 10DM-159, Suraj Jain 10DM-163, Siddharth Loya 10IB-058Susan Pradhan 10DM-164, Vineet Sehgal 10DM-172, Chinmay Agrawal 10IT-031

AMUL DAIRY

• Amul is a US $ 500 million turnover institution– network of over 10,600 Village Co-operative

Societies and 5,00,000 plus members

• The product range includes milk, butter, cheese, chocolates, ice creams and pizzas

• First food company in Asia and one of the 100 companies in the world to receive the HACCP Certification

PROBLEMS TO BE ADDRESSED

• Logistics in collection of 6 million liters of milk per day from about 10,600 separate Village Cooperative Societies who have approximately 2.1 million milk producing members

• Logistics in coordination of– Storing the milk– Processing the milk– Distributing the milk

PROBLEMS TO BE ADDRESSED

• Supplier logistics– Weighing the milk– Determination of fat content– Calculation of the purchase price– Strong challenge from large organized dairies due

to globalization– Considerable time (One Week) to test the milk

and work out the purchase price through pass book system resulted in delayed payments to farmers

SOLUTION

• Company zeroed in on ERP as means to keep pace with dynamically changing business environment

• Tata Consultancy Services was hired to guide them in its implementation

• The implementation project was named as Enterprise- wise Integrated Application System (EIAS)

IMPLEMENTATION

• Automatic Milk Collection System units (AMCS) at village societies were installed in the first phase to automate milk producers logistics– AMCUS facilitated the capture of member information, milk fat contents,

volume collected and amount payable to each members

• On an average, around thousand farmers come to sell milk at their local co-operative milk collection centre

• The process is as simple as a farmer dropping his card into a box– the identification number is transmitted to a personal

computer attached to the machine and the process begins

IMPLEMENTATION

• All zonal offices, regional offices and member’s dairies connected through VSATs for seamless exchange of information

• The customized ERP- EIAS has been implemented across the organization integrating various operational departments

• In addition to EIAS, Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes

IMPLEMENTATION

• Indian Institute of Management – Ahmedabad supplemented Amul’s IT strategy by providing an application software – Dairy Information System Kiosk (DISK) to facilitate data analysis and decision support in improving milk collection – enhanced the PC at the AMCS into a DISK that

offers an extensive knowledge and service delivery mechanism through a Dairy Portal

Dairy Portal

IMPLEMENTATION

• DISK would contain an extensive database on the history of cattle owned by the farmers, medical history of the cattle, reproductive cycle and history of diseases

• Access to information related to milk production– best practices in breeding and rearing cattle

• As a large amount of detailed history on milk production is available in the database, the system can be used to forecast milk collection and monitor the produce from individual sellers

REAPING RETURNS

• Radical changes in business processes– eliminating middlemen and bringing producers closer

to customers

• Improved delivery mechanisms and transparency of business operations

• Huge reduction in processing time for payments to farmers from a week to couple of minutes– Processing of 10 Million payments daily, amounting to

transactions worth USD 3.78 million in cash

REAPING RETURNS • Controlling movement of 5000 trucks to 200

dairy processing plants twice a day in an optimum manner

• Practicing JIT supply chain management with six sigma accuracy

• Online order placements of Amul’s products on the web– Distributors can place their orders on the website

www.amulb2b.com especially meant for accepting orders from stockists and promoting Amul’s products via e-commerce.

REAPING RETURNS

• The decision making process has rapidly improved since real time data is available on the click of a button

• Easy monitoring of crucial management practices like demand versus supply with the help of ERP

Chitale Dairy

• Chitale Dairy caters to 70% of Pune’s dairy needs and has been an early adopter of IT in its sector– The dairy started its operations near Bhilwadi

district, in Sangli in the late 1940s• In the 1980s, Chitale Dairy felt the need for

automation of accounts– Due to considerable growth in its business

processes and business, it came to realise that IT had to be more in line with its business objectives

Challenge

• Existing hardware and systems could not keep pace with the rapid growth, and added as a hindrance to Chitale Dairy’s IT roadmap

Solution

• Chitale Dairy Virtualised 8 of their physical servers on 2 of Dell’s M1000E blade’s and used Dell’s EqualLogic series for their storage needs

Benefits• Get IT Faster– Chitale Dairy consolidated 8 blades to 2 blades; and

consumed Dell’s EqualLogic series to facilitate storage• Run IT Better– Increased performance and reliability enables better

management of resources, and also brings in unseen levels of energy efficiency.

• Plan for Tomorrow– Chitale implemented Dell’s EqualLogic and M1000E

blades at a disaster recovery site for constant availability

Chitale Dairy

• With the aid of virtualisation, the consolidation of servers took place and then was felt the need for storage virtualisation

• Consolidation of servers and storage virtualisation was key as it uses all the available resources and thus, the addition of resources becomes very easy

Chitale Dairy

• The whole economy is driven by ROI

• IT systems act as enablers for this, as they improve efficiency, cut down pilferages and work nonstop

CHITALE DAIRY RFID APPLICATION

• Began in 2007– a low-frequency (LF) 134.2 kHz RFID tag from Bartronics was punched into

an ear of each of 6,000 cows or buffaloes

• Orange tag is a simple numbering of the buffalo for keeping track of the number of buffaloes– the number is electronically associated with the electronic ID stored in the

computer

• Blue tag is the metallic cover that ensures that there is no damage to the smart card inside

• At the time of allocating the electronic ID, a link is created with the physical ID

CHITALE DAIRY RFID APPLICATIONThe card stores a host of information on the buffalo mainly on three counts• Feeding: Unique feeding system that ensures that buffalo can never eat

more than a certain programmed portion of daily ration at one time– total ration is fed over 24 hours in small amounts from half a kg to two kg

• Milking: Every milking time the transponders in the strap (blue tag) is identified– on the milking point controller (MPC), a warning lamp lights up at the appointed symbol

if the buffalo is not milked or if the milk is not directed to the tank– if the buffalo has not produced as much as expected, the warning lights will glow

• Breeding: Information on the genetic stock of the animal and all aspects related to animal rearing related to pregnancies, vaccinations, any diseases– 15 to 20% improvement in total milk yield– At the Chitale dairy farm, the yield is 2500 litres in 300 days as against the national

average of 800-1000 litres