AN ORGANIZATIONAL STUDY IN KC MILK ByS.DINESH KUMAR (10MBR031) S.VEERAKUMAR (10MBR107) T.KARTHIK (10MBR049) Of KONGU ENGINEERING COLLEGE ERODE ± 638 052 A PROJECT REPORT Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION JUNE-JULY 2011 KONGU ENGINEERING COLLEGE, ERODE DEPARTMENT OF MANAGEMENT STUDIES MBA ± Summer project June ± July 2010 BONAFIDE CERTIFICATE Certified that this project report titled ³AN ORGANIZATIONAL STUDY IN KC MILK´ is the Bonafide work of S.Dhinesh Kumar, S.Veera Kumar, and T.Karthik who are all carried out the project under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Faculty Guide Dean -MBA Date: Seal: COMPANY CERTIFICATE . Department of Management Studies. or similar title of recognition. Erode ± 635 052. S. Erode and this has not been submitted earlier to any other university for the award of any degree.Karthik .Dhinesh Kumar S. Department of Management Studies. under the guidance of. Perundurai.KARTHIK I Year MBA.S. Kongu Engineering College.Veera Kumar T. DECLARATION This is to declare that the project report entitled.DHINESH KUMAR S.VEERA KUMAR T. Kongu Engineering College. diploma. ³AN ORGANIZATIONAL STUDY IN KC MILK´ is a Bonafide record of the original work undertaken by me. It gives me a great pleasure to express my profound and sincere thanks to my faculty guide Dr. and the Head of the department of management studies Dr.D. for his motivation and providing me moral support during the course of this work. Proprietor of KC Milk who is provided the opportunity to do the project. S. Ph.com. MBA(HR).C.. SOMASUNDARAM BE.B.GHANAJOYHI M. department of management studies.SURESH KUMAR BE.. which this project would have attained a fine and final shape.ACKNOWLEDGEMENT I would like to thank our college principal...KUPPUSAMY M. to Mr.A.E. . Kongu Engineering College for her timely guidance.D.. M. Dr. Ph.professor.. I am very thankful. 6 5.4 5. 8 9 9 10 10 10 11 11 11 12 12 13 14 14 15 15 16 19 22 24 25 .1 2.3 5.2 5.2 3.0 3.1 5.4 4.1 3.3 3.0 2.2 5.7 6.0 4.0 1.1 3.CONTENTS CHAPTER 1.1 4.0 Introduction Company Profile Food Safety Policy Objectives Procurement Department Milk Procurement Milk Testing General laboratory Microbiology Laboratory Stores Department Stores Process Chart Stores Activity Production Department Milk Processing Quality Policy Quality Objective Processing Of Milk Processing Of Crud Product Description Machinery and Equipment Packaging Department TITLE PAGE NO.5 5.0 5. 0 7.0 8.0 Marketing Department Demand Projection Distribution Areas Services Finance Department Scope Of Finance Personnel Department Maintenance Department Conclusion 25 25 26 26 27 28 28 28 29 .7.2 7.0 10.3 8.0 11.1 7.1 9. safety measures have any significant influence on motivating them. condition. y To suggest some measures to improve the motivation level in the organization. promotion. working. y To study whether the factors such as wages. health.Introduction The main aim of this project is to study completely about the management and the company¶s present status handled by them to achieve their goals and meet their competitors. Prime objective of the study The main objective of the study is to study the whole organizations function in detail to pursuits the theoretical part as we learned earlier. supervision. Secondary Objectives of the study y The secondary objective is to identify weather motivational activities have any significant influence on the work of employees of KC milk. communication system. y To find out the attitude of the workers on the working condition and welfare facilities provided to them. welfare. . The unit has certified for ISO 9001:2008(Quality Management System). The brand ³K C Milk´ is also a registered as a Trade Mark.000 liter per day. ISO 22000:2005 (Food Safety Management System) & ISO 14001:2004 (Environment Management System) certifications and also obtained MMPO (Milk Milk Products Order) certification from the Government to establish the quality of the products. . Food safety policy of the firm KC MILK is committed to process and supply the safe and quality milk & milk products to the total satisfaction of the customers through implementation of global standards. a diminutive quantity of cow milk procured around the villages and sold the raw milk to various places of the district. The Company also proposed to from a another Dairy at Batlagundu and the estimated of milk about 2. Tamil nadu. Vedasandur. interacting with all Distributors and dealers continual improvement of the ISO 22000 Food Safety Management System.Company Profile The Dairy is located at Seethamara Naal Road. Dindugal District. The company has been exploiting the potential of hygienic and high quality milk to the society. The initial period.00. R. Compliance with the National & International product and legal requirements. Regularly reviewing the food safety policy. Evaluation of skills of the employees and train to modern updates effectively Preparing and adopting the technological innovations for total food safety hazards elimination in every process involved and be prepared for the entire emergency situation. objectives and Food Safety Management System.Vellodu. Procurement Department Milk Procurement Cow Milk and Buffalo Milk has been procured from the farmers. Interacting with prime suppliers and relevant stock holders to achieve product safety requirements. Eriodu.Objectives Following the safety requirements as per ISO 22000 Food Safety Management System and Milk & Milk Products order requirements. . Kallimandayam & neighboring areas. Palani. Communicating with and enhancing customer requirements Effective implementation of good hygienic practices throughout the firms Safety Management system process. Edayakottai Odaipatty. Gujiliamparai. At present. Vadamadurai. The collected milk has transports to the company by own/hired trucks. the raw milk is collecting from 209 Villages through 44 milk collection routes. Batlagundu. Main areas of milk procured from Kannivadi. MBRT. The processed or pasteurized efficiency milk and curd are tested for pasteurization efficiency. Payments are made by weekly basis though the computerized billing system. the company also providing loans from the nationalized banks and congregates regular camp for conservation of cow/buffalo health with veterinary doctor. fat percentage. By the above are giving quality products to the consumers and getting full support from them. During the reception each and every cans is checked for organoleptic tests. fat. homogenizer efficiency etc. Microbiology laboratory As milk contains the 80% water it is an excellent medium for microbial growth. To enrich the life style of farmers. SNF percentage. So it is necessary to check the microbes at raw and processed milk stage. General Laboratory As per IS Standards the milk and curd tested by qualified persons. preservations acidity. only after satisfied with milk quality by quality assurance department the processed milk allowed to packing. . adulterations. and SNF etc. May some harmful microbes affect the cow and buffalos hence it may transmitted of the milk sometimes unhygienic practices at field and plant level leads to microbial contamination of milk. only the good milk will be selected for production. Some microorganisms are beneficial and some are harm full to human beings and animals. MBRT. KC milk procuring only the quality raw milk from the selected farmers. LLR.Procured milk is weighting through computerized data processing unit and details are stored in the system. water etc. These are having several beneficial effects like strengthening immune system. GMPs and GHPs etc and pasteurization process kill all the pathogens. the firm testing the raw milk. The stores keeper is the head of the department and one assistant is working under him.Even though we strictly following the IS standard hygienic practices. Thermophilic and psychorophilic bacteria. Thermoduric.coli. staphylococcus aureus. Yeast and Mould. for standard palate count. E. Stores Department Stores department involve the responsibility of avoiding the idle of machine without the Stock position of materials availability. processed milk skimmed milk powder. Stores Process Chart Indent from the department Drafting quotation for the parties Making comparison for the received quotation Placing order through ERP . Coliform. Especially KC curd is hygienically produced by adding probiotic bacterial cultures. quantity date of the materials required for the department.Making payment to the party Delivery of materials Inspection by factory manager of materials Making receipt of the materials Accounting credit ledger Monthly payment settlement by checking ledger to computer account Payment dispatch with cheque enclosure to the party Stores activities 1. Indent for this materials Indent form contain the requirement of materials for the department use indent form has description of items. . Temperature and pasteurization time are very important factors which must specified precisely in relation to the quality of milk and its shelf-life requirements. etc. payment. Pasteurization is one of the most important processes in the treatment of milk. It carried out correctly the process will supply milk with longer shelf life. rate. Placing Orders According to the comparisons of quotation the firm can decide that to whom to place order. 3. delivery date. HTST pasteurized. mode of dispatch and all correspondences should be clearly mentioned in this purchase order. Drafting of Quotation Before drafting quotation. Performa invoice Some parties will give credit period up to 30 to 49 days. Some parties will dispatch the materials after getting the full payment. It is the duty of the company to make the amount in advance for the delivery of materials. Production Department Milk Processing The raw milk obtained from the villagers are received at dairy and immediately chilled to less than 50C and stored puff installed silos.2. regular-grade milk is usually 162-1670F(72-750C)for 15-20 sec. quantity date of the materials required for the department. Order should be clearly mentioned regarding the sales tax. 4. . discount. the pasteurization temperature for homogenized. the requirement of material for the department use indent form has description of items. Quality policy The firm committed the process and supply high quality & hygienic milk & milk products to the society at specified time.A common requirement is that the heat treatment must guarantee the destruction of unwanted microorganisms and of all pathogenic bacteria without the product being damaged. Quality objective on time delivered every time meet the exceed customer requirements Continually improve effectiveness of the firm quality management system. Training the employee on appropriate updated technical requirements of product and process. . The firm built with relationship the firm¶s customers through the most excellent quality and our best services. type of milk & no. Temperature & FAT Test] . Packaging and Storage of Pasteurized Milk Flow Diagram Procurement Cow and buffalo milk from various villages surrounding in Dindugal district Milk Transport to Plant by Cans Reception [Through mixing. of cans] Weight Shown in DPU Positive Rejection Sampling [100 ml taken for each agent for LR. OT Testing Test] Normal Abnormalities COB & Alcohol Test Negative Weighing Bowl [Weighing of milk identified with agent code.Processing. & Tonned Milk [TCM] FCM Fat: 6.Dump tank [Dumping of raw milk] (Microbiological test) Chilling [Raw Milk chilled to 50C] Raw Chilled Milk Storage Sampling [250 ml milk taken for temperature. SNF: 9.0% Addition of SMP TCM Fat: 6. CLR.0%. FAT.0% cream separation Addition of SMP Homogenization Heating at 65 to 670C Pasteurization [at 80 t0 85 C for 15 seconds holding time] .0%. SNF: 9.0%. SNF: 9. Acidity & MBRT test] Processing of Raw Chilled Milk Pre-heating at 45 0 C Filtration Cream Separation Production of Full Cream Milk [FCM]. Standardized Milk [SCM].0% Addition of SMP & cream SM Fat: 6. microbiological test. Temperature. staphylococcus Cold Storage [40 C] Dispatch (one sample per route for keeping quality test) Customer Feedback (Suggestion book at dealers and distributors) . Acidity. Coliform. CLR. E-coli. FAT. MBRT test.Heat reduced to 400 C Immediate Chilling to 40C Storage in silos 50 C Phosphatase test. Acidity. Temperature. MBRT & Homogenization Efficiency test Packaging Pocket Sample FAT. SPC. SNF. SNF. CLR. Processing. of cans] Weight Shown in DPU Positive Rejection Sampling [100 ml taken for each agent for LR. Packaging and Storage of Curd Flow Diagram Procurement Cow and buffalo milk from various villages surrounding in Dindugal district Milk Transport to Plant by Cans Reception [Through mixing. type of milk & no. Temperature & FAT Test] . OT Testing Test] Normal Abnormalities COB & Alcohol Test Negative Weighing Bowl [Weighing of milk identified with agent code. 5% and SNF 9% Homogenization Heating at 67 C & 200 kg pressure Pasteurization [At 90 t0 950 C for 15 seconds holding time] Heat reduced to 40 to 420C Pasteurized milk stored in silos (40 to 450C) .Dump tank [Dumping of raw milk] (Microbiological test) Chilling [Raw Milk chilled to 5 C] Raw Chilled Milk Storage Sampling [250 ml milk taken for temperature. FAT. Acidity & MBRT test] Processing curd Filtration Cream Separation Double Tonned milk fat 1. CLR. Acidity. E-coli. staphylococcus Dispatch (one sample per route for keeping quality test) Customer Feedback (Suggestion book at dealers and distributors) . Acidity & MBRT & Homogenization Efficiency test] Addition of Cultures Mixing well for half an hour Packaging Incubated at 42 C for 5 to 6 hrs and acidity test is conducted for each half an hour Cold Storage [4 C] Pocket Sample FAT. microbiological test. Temperature.Sampling [250 ml milk taken for temperature. SPC. SNF. CLR. Coliform. CLR. FAT. MBRT test. It is spiral pipe lines it must be slope upward 1/4ft in direction of flow to eliminate air so nothing flows faster at air pocket restrictions. A weighed amount of raw milk is pumped to a clarifier by means of the milk pump. in holding tube 15 sec for pasteurization and immediately chilling at 40C from the holding tube the milk moves to flow diversion device o Product profile The KC milk produces three verities of milk and the curd into a two type of packages. Toned milk (TM) 3. Here the milk filtrate 450C and cream is separated at 670C. Clarified milk is next sent to the cooler where it is cooled to about 2-5 C. where it is removed of microscopic impurities. then pumped to the storage tank. Cup curd . 1. These processes are discussed in detail as follows. homogenization in 78-800C. Pouch curd 5. Full cream milk (FM) 4. Standardized milk (SM) 2.Process Description Processing of raw milk mainly involves heat treatment operation usually known as pasteurization and sterilization. It is a complete food for infants up to 6 months of age. Chemical analysis of cow milk revealed that about 86-88% of it by weight is water. Cow milk is also valuable source of phosphorus. of which 50% is contributed by fat 20% lactose and 21% by protein. All these products can be consumed by human beings as part of diet on the daily feeding menu. calcium and vitamins. thiamin (vitamin B). protein. pyridoxine (vitamin B). bistin. It contains a useful amount of vitamins including vitamin A. fats. Plant Capacity Based on the market study. capital requirement and minimum economy of scale. Cow milk contains 2.000 liters of raw milk per day and producing 1.PRODUCT DESCRIPTION AND APPLICATION Cow milk is white liquid containing water.000 liters at full operation capacity. and sugar. pentothenic acid and vitamin D etc. The envisaged plant is expected to operate in triple shifts of 8 hours each a day for a total of 300 working days a year. cheese and butter. crud.1% lactose. afterwards it acts as supplement to other foods.10.4-6. One point of milk supplies about 320 cal. . the milk processing plant will have a capacity of 1.50. Cow milk processing results a number of products such as processed milk. 000 liters at two-shift basis. 6. 10. Item Weighing tank Receiving tank Milk clarifier Milk pump Plate cooler Storage tank Milk pump Pasteurizer Filling and packing machine Boiler Chiller Churning equipment Surge tank . Machinery and Equipment The list of required machinery and equipment is indicated in Table s. 5. 00. 4. particularly the standardized milk and full cream milk.Ft to 50000Sq. The expansion process also included expansion of the covered area in the plant. which was then increased to 50. 7. 3.Ft. 13.000 liters milk per day. 2. 12. The capacity expansion was necessitated by the excellent quality and services of all the products.no 1.The initial installed capacity of the plant was 20. from 25000Sq. 9. 8. 11.000 liters per day in 2008. The capacity further has been enhanced to 1. The company spreads out its product in the following areas. 500ml. the packed pouches are stored in puffed refrigeration storage the process and packing are done under the hygienic conditions as pr the standards of Food & Safety Management & Indian Standards Marketing The company has more than six branch offices in various districts in the state competent and qualified promoters having years of experience in the same line business. daily. Demand Projection The demand for industrially processed milk and milk products is highly influenced by urban population growth. to enrich the trading position the dairy affords the advertisement in wall painting. income. media advertisement like most popular local & global televisions. newspapers. & monthly magazines. . weekly. and 200ml. Standardized & Homogenized to the specification of toned milk. boards. To conserve the temperature of the milk. standardized milk and full cream milk by the imported machineries. The firm also has enthusiastic distributers.Packaging Its then Pasteurized. Considering the combined effect of these factors an annual average growth rate is applied in projecting the demand for the products. and a strong marketing network. dealers. 250ml. increased household attitude towards processed foods to save time and labour as well as the availability of the product itself. The processed milk is then packed to the different volumes like 1000ml. Chennai. Coimbatore. The product is sold through network on communication basis. Providing a adequate resources to the company employees like Provident Fund. the company also plays the pleasing role in the society. Mainly. sivakasi. thanjur.. The company is also having 40 & above puffed Transports on contract for retail sales. nagercoil. pudhukotai. Other than commercial activities. karaikudi. paramakkudi. the Company offers a magnificent schemes to the distributors/dealers & consumers to enhance the marketing strategy. .Distribution areas Palani. ramnad. ³Process and Supply of Hygienic & Superior quality of milk to the society at specified time´. Services The quality policy of the firm is. The main activity of the sales team is ³Providing a respectable & excellent service to the consumers´. huge volume compressor cold storage. The products are transported carefully maintaining the cold chain an under the complete hygienic conditions. madurai2. trichy. madurai1. nellai. employee state insurance etc. the firm already constructed the cooling facilities like puffed cold rooms. and given employment opportunity to 350 direct employees and more than 1000 employees indirectly. karur. Dindugal etc. Providing valuable gifts to the regular consumers at festival & carnival episodes. While making the product. They raise funds to acquire manufacturing and other facilities. the three most important activities of a business firm are: Production Marketing Finance HR Maintenance A firm secures whatever capital it needs and employees it (finance activity) in activities that generate returns on invested capital (production and marketing activities). They sell their goods or services to earn profits. A business firm thus is an entity that engages in activities to perform the functions of finance. So. and it draws heavily on economy for its theoretical concepts. Still today it has no unique today of knowledge of its own. Financial Management is that managerial activity which is concerned with the planning and controlling and of the firm¶s financial resources. The raising of capital funds and using them for generating returns to the supplies of funds is called the finance function of the firm. As a separate activity or discipline is of recent origin it was a branch of economics till 1890. Scope of Finance Management: Firms create manufacturing capacities for production for goods. this subject is acquiring universal applicability. Finance function has become so important that it has given birth to financial management as a separate subject. Thus. . production and marketing.Finance Department Finance is regarded as ³THE LIFE BLOOD OF BUSINESS ENTERPRISE´. some provide services to customers. machines. Personnel department helps in attracting. holding. sanitation and other maintenance activities. Conform to the statutory regulations. Reducing Pollution 3. maintains. training and hiring an effective work place that will aid in the accomplishment of the firm¶s objectives. Maintenance Department The maintenance department has functioning in firm which could maintain the infrastructures. Continual improvement of the significant aspects.Personnel Department Recruitment policy The management of HR in an organization is considered as the Personnel Department. There are 200 employees working in KC Milk. planning. Creating awareness on Environment 2. their disputes are solved internally by the personnel manager. utilizing. 4. . In case of any grievance among their workers. Environmental Policy: 1. Maintains greenery 5. safety measures have any significant influence on motivating them.Conclusion The prime objective is to identify whether motivational activities have any significant influence on the work of employees of KC milk. working. . supervision. To study whether the factors such as wages. promotion. health. condition. welfare. To find out the attitude of the workers on the working condition and welfare facilities provided to them. communication system.