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CHAPTER 5

COMPUTER APPLICATIONS IN AAVIN

5.1 AAVIN COMPUTERIZATION INITIATIVE

Aavin had a tie up with the Rajasthan Electronics & Instruments Ltd.

(REIL) for its computerization initiative. REIL has a prominent place amongst the

electronics industry of Rajasthan. The company is a joint venture between the

Government of India and the Government of Rajasthan, through their respective

institutions. The area of business extends to manufacturing and marketing of

electronic products/ services in the following areas: a) Agro-Dairy Sector b) Solar

Photovoltaic Sector c) Industrial Electronics Sector and d) Information

Technology. The REIL has successfully integrated the products into a more

versatile system, developed in-house through its own development efforts, called

the Milk Collection Station. The Tamil Nadu Milk Marketing Federation first made

an order to purchase the REIL product in the year 2008-09 and subsequently

purchased 7 Milkoscan Minor during the year 2010-11. REIL has entered into an

agreement with FOSS, Denmark for high end process automation solutions,

which are based on Infra Red, near Infra Red, Flowcytometry and Laser Optics

technologies. The Company shall leverage it country-wide sales-and-support

network to supply and support these solutions, and sustain its leadership in

Indian Dairy business. The offered solution caters to the following

requirements. a) Dairy Herd management b) Dairy Farm management c) Milk

Analysis management d) Management of Hygiene quality of Milk and Milk

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products. The REIL Products and Milk Collection Station are mentioned in the

following table 5.1 and 5.2.

TABLE 5.1 REIL PRODUCTS FOR DAIRY OPERATIONS

Central Milk Testing

Dairy

Milko scan FT+

Milko Scan FT 6000

Milko scan FT1

Milko Scan Minor

Direct Contact Analyser

Fossomatic FC

Combi Foss 5000 kit

Milko scan FT2

XDS Process Analytics

XDS Lab Rapid Content Analyser

Combi Foss 6000 kit

Bacto Scan FC

Food scan Versatile Dairy Analyser

Process Analytics Dairy

BactoScan FC 50 Semi Automatic

Process Scan FT

Routine Dairy Analyser

InfraXact Dairy Ssystems

Source: REIL

TABLE 5.2 REIL’S MILK COLLECTION STATION

S. No Product Applications

1. Electronic Milk Tester For measurement of % Fat content in Milk at Village Milk Cooperative Societies.

2. Milko Scan Total Milk quality parameter analysis for Dairies

3. Automatic Milk Collection Station

For fair & prompt payment to farmers at Village Milk Cooperative Societies

4. DP-EMT Low Cost version of Milk Collection Station for small village Milk Cooperatives Societies

5. PC-MCS Personal Computer based version of Milk Collection Station with accounting facility

6. Smart Card based PC Milk Collection Station

For fair & prompt payment to farmers at Village Milk Cooperative Societies

7. Raw Milk Reception Dock Network Automation

Process Automation of Raw Milk Reception Docks at Dairies

8. Raw Milk Reception Dock Sample Automation

Milk sample collection and movement automation at Raw Milk Reception Dock

Source: REIL

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In the following paragraphs a brief account on the Electronic Milk Tester,

Milko Scan, Automatic Milk Collection Station, DP-EMT, PC-MCS, Smart Card

based PC Milk Collection Station, Raw Milk Reception Dock Network

Automation, Raw Milk Reception Dock Sample Automation of the REIL is given.

5.1.1 Electronic Milk Tester

Electronic Milk Tester has been adopted as an essential instrument for

measurement of milk fat. Percentage of fat content is displayed quickly and

accurately on a digital readout. Several thousand small/large Dairies and Village

Milk Collection Centers are being benefited with its use. Electronic Milk Tester

works on the principle of photometric measurement of light scattered by the fat

globules present in the milk sample. The measuring procedure follows the

conventional system of dilution, mixing, homogenization and photometric

measurement.

5.1.2 Milko Scan

Milko-Scan 133-B is the latest microprocessor controlled instrument for the

determination of Fat, Protein, Lactose, SNF & Total Solids in Milk and Dairy

products like Sweet cream, Ice cream mix, Yoghurt, cottage cheese, Whey, Hard

Cheese, Sweetened condensed milk & Skim milk. A patented 'B' Filter is

specially designed to measure the Fat content in raw milk regardless of cattle

breed, change in feed composition & seasonal variations, all year round. Another

advantage of the 'B' filter is its high accuracy in measuring the constituents if

storage milk products like Ice cream mix, Fat filled milk powders and infant

formula.

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Milko-scan works on the principle of Infrared Spectrophotometer. The infrared

energy produced by a wide range source is filtered through IR filters of specific

wavelengths and focused through the samples under test. This energy passes

through the samples and strikes a detector which converts it into a

corresponding electrical signal. This signal after amplification and certain

corrections is processed by an microprocessor to be displayed on the LCD panel.

5.1.3 Milk Collection Station

The Milk Collection Station is a specially designed, integrated unit, which

combines the several functions of a milk collection centre. It measures the

weight, fat content and gives the price of the milk brought in by each producer.

The equipment is particularly useful for the milk cooperatives / milk collection

centres as it can also maintain a summary of milk supplied. This state of the art

equipment operates both on battery and mains and is able to process and record

120-150 milk collection entries per hour. An Electronic Milk Weighing Unit, the

Electronic Milk Tester and Data Processor Unit is main components of the

system. The membership codes of individual members are entered automatically

by member identity card / manually by an electronic key-board.

5.1.4 Data Processor Electronic Milk Tester (DPEMT)

Data Processor Electronic Milk Tester (DPEMT) comprises of two main units, an

Electronic Milk Tester and a Personal Computer. It measures the fat content of

the milk. The membership codes of individual members are entered manually by

a keyboard. The weight can be entered either manually or captured

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automatically. If a Milk Weighing System is connected to the unit it gives the

printout of the price of the milk brought in by each producer.

5.1.5 PC based Milk Collection Station

PC based Milk Collection Station is a specially designed integrated unit, which is

a combination of several units viz; the AZ Electronic Milk Tester, Milk Weighing

System and Personal Computer with 80 column printer. It measures the weight,

fat content and gives the printout of payment slip to the supplier of milk in each

shift. The system also facilitates storing ten days/monthly/yearly data and printing

of cumulative summary of shift as and when needed. This state of art equipment

is able to perform120-150 operation in an hour. The sequence of operation

requires pouring of milk in a weighing container, collection of milk sample at the

time of pouring, entering the member's code through keyboard, measuring of fat

content, and calculation of payment and printout of slips.

5.1.6 Smart PC Based Milk Collection Station

The Smart PC Based Milk Collection Station is specially designed integrated

system, which is a combination of several units viz; AZ Electronic Milk Tester,

Milk Weighing System, Personal Computer with smart card reader / writer and

80-column Printer. It is integrated with software support for milk collection and

Society Accounts Management. The system is suitable for instant weighing of the

Milk, measurement of Fat content and calculating the amount payable to the

member based on Fat & Weight. The smart card serves the purpose of member

identification and acts as an Electronic Pass Book for the member wherein

his/her milk transaction data is stored. The system can also be used later for

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maintaining the complete records of the collection centre together with details of

all transactions of the village co-operative society. This system can perform 120-

150 operations in an hour. The sequence of operation require, insertion of smart

card, pouring of milk in a weighing container, collection of milk sample at the time

of pouring, measuring of fat content, calculation of payment and printing of

payment slip. The Exhibits represents the pictorial representation of the device in

the following page.

5.1.7 Raw Milk Reception Dock

Raw Milk Reception Dock (RMRD) is the primary point of liquid milk entry in

dairy. It is specifically meant for the reception of milk brought in cans, from

villages located over a wide area. It is different from the bulk milk collection

system, which are also in operation in these dairies. The collection process starts

from the villages, groups of which are assigned to distinct Milk Truck Routes.

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EXHIBIT 1 RMRD

EXHIBIT 2 REIL DEVICE

The milk cans from individual villages of many such routes are unloaded at the

RMRD, after which the milk is weighed (EWU) and tested (EMT or Milko-Scan)

separately to issue a milk receipt statement (Hardcopy) according to the

measured parameters during the daily shift. The picture of the Raw Milk

Reception Dock is given below. Table 5.3 is given the details about the REIL

products implementation by Aavin..

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Table 5.3 REIL PRODUCTS AND AAVIN IMPLEMENTATION

Si. No Product Applications Implemented in AAVIN

1. Electronic Milk Tester Used for testing in most of the societies

2. Milko Scan Used for testing in societies who are providing rates based on testing

3. Automatic Milk Collection Station

Installed but not properly utilized.

4. DP-EMT Not Installed in none of the societies

5. PC-MCS Installed but not fully functional

6. Smart Card based PC Milk Collection Station

Not Implemented

7. Raw Milk Reception Dock Network Automation

Exclusively for testing in Dairies, most of the features are not used.

8. Raw Milk Reception Dock Sample Automation

Functions are partially used. Mainly for testing the milk, most of the features are not used.

5.2 REQUIREMENT AND UTILITY OF COMPUTER APPLICATIONS IN AAVIN In this section the researcher describes the requirement and utility of

computer applications at all levels of the Aavin Dairy Cooperatives and also

compare the Aavin computer application initiatives with Amul Computer

application initiatives.

5.2.1 Requirement and Utility of Computer Application at the Milk Producers Cooperative Society Level: Regarding the Village Milk Co-operative Societies, at village level, a total number

of 9,231 Milk Producers’ Co-operative Societies are functioning in Tamil Nadu,

which includes 1,491 Milk Producers’ Women Co-operative Societies. About 62

Milk consumer Co-operative Societies are also functioning in the State to cater to

the need of the milk consumers. There are 4.19 lakh milk producers now pouring

milk to the societies. The Members of Dairy Co-operative Societies are paid

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dividend for their share capital, bonus and patronage rebate when the society

earns profit and additional price for the quantity of milk poured.

Milk Producers Cooperative Society is the collecting hub of milk from the

producers. The Collection of milk is done from the members of the society and it

checked with the quantity and the quality factors of the milk. The Federation has

started implementing the Automatic Milk Collections Centers, but the MPCS have

not started using them effectively in the region of Aavin, Tiruchy.

The procurement of milk is done from the members of the milk producer’s

cooperative society twice a day in the morning and in the evening. Member is a

registered person of a cooperative society. He/she pays a nominal fee to the

society and agrees to the rules and regulations of the cooperative society. The

Milk Producers cooperative society procures milk only from the members. Being

a member, he gets the benefit of getting the incentives and bonus once in a year.

Procurement of the milk will be done twice a day. Where ever the computer

application has been implemented, a module is available to collect the

information about the members and his socio-economic details.

The factors which decide the quality of the milk are LR, Temperature, FAT and

SNF reading. The process involved in the collection of milk are : when the

members of the society visit a MPCS to sell their milk, the quantity of the milk will

be intimated to the members immediately, where a small sample of the members

milk will be collected for finding out the quality. After the collection is over, the

members sample will be evaluated for the quality factor in the absence of the

member. The AAVIN has defined a rate chart for the milk collected and it will vary

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from time to time based on the economic situation and demand of the members

over a period of time. Annexure 15 shown the rate chart for the cow milk, the rate

offered to the members based on the quality of the milk he sold to the society.

Annexure 16 shown the rate chart for the buffalo milk. After the LR, Temperature,

Fat and SNF defined for the particular sample of the milk collected from the

member. The rate for the sample is multiplied with the quantity of the milk

supplied. In the Milk Producers Cooperative society where there is no computer,

this process is done in a manual calculation which is a time consuming process.

In the societies where there is availability of computers, the details of LR,

Temperature and FAT were fed in to the corresponding member number. Once

the factor has been entered, based on the LR, Temperature and the FAT, the

Quality factor SNF is calculated by computer application.

After the calculation of the quality the data are recorded in a book to calculate the

amount to disperse once in 15 days. The details of the individual like member

number, quantity of milk given, LR, Temperature, Fat, SNF, rate per litre and

amount for the quantity are recorded twice a day. A classification of milk based

on the milch animal, cow/buffalo, is also recorded separately. This record is

called “Kolmuthal Pathivedu” In the computerized milk producers’ cooperative

society, the procurement details are recorded once the information of the

individual details are entered in to the system. After the collection of milk and

recording it to the corresponding books, the quality of the total procurement will

be evaluated and overall quality of the milk procured will be registered.

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The milk procured will be dispatched to the Milk Producers Cooperative Union by

the transportation facility provided by the Milk Producers Cooperative Union. The

payment for the milk sold from the milk producer’s cooperative society to the milk

producers cooperative union will 0.50 paise more for a litre. The Milk Producers

cooperative union holds 0.10 paise for the administrative expense and will give

back 0.40 paise per litre milk sold from milk producer’s cooperative union.

Another model is the milk collected from the milk producer’s cooperative society

will not be delivered to the Milk Producers Cooperative Union Directly; the milk

will be delivered to the nearest bulk cooling units. From the bulk cooling units, the

milk will be delivered to the Milk Producers Cooperative Union.

Here the challenge which is prevailing now a day is the union will give the

payments based on the overall quality of the milk from the bulk milk collection

centers. Since the recordings of information of milk from the Milk Producers

Cooperative Society to the Bulk Cooling Stations are done manually, they were

not able to exactly find the Milk Producers Cooperative Society which is

supplying less quality milk. Thus all the Milk Producers Cooperative Society is

getting affected because of this bulk purchase.

The Quality of the milk and the quantity of milk sent from the Milk Producers

Cooperative society to the Milk Producers Cooperative Union is intimated to the

society by the vehicle which transports the milk between them. The information is

recorded in a separate register which is called Union Register. The union register

holds the information like the date, the quantity of cow milk supplied, the LR,

Temperature, Fat and SNF for the cow milk, the rate for the cow milk and the

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amount for the cow milk, the quantity of buffalo milk supplied, the LR,

Temperature, Fat and SNF for the buffalo milk, the rate for the buffalo milk and

the amount for the buffalo milk. Some of the Milk Producers Cooperative Society

are recording these details in computers.

Other records which are managed by the societies are the loan details for the

milch animals. The Societies facilitate the members by means of supporting them

by recording the details of the loan repayment. Some of the milch animals were

been purchased by the Government Schemes where there will be subsidies for

the repayment. None of societies are utilizing the computers applications for this

record maintenance.

Based on the Government policies according to the community the member

belongs, there will be a subsidy in the purchase of milch animal. The recording of

the details of members will help the society to identify the correct beneficiary. The

Insurance for the milch animals is recommended by the Milk Producers

Cooperative Union for the milch animals of Milk Producers Cooperative

Societies. A record is maintained by the Milk Producers Cooperative Society for

the member’s animals.

The AAVIN is supporting the members by the supply of feed and fodder to the

members of milk producers cooperative societies. A separate register is

maintained by the Milk Producers Cooperative Society. From the funds of the

Milk Producers’ Cooperative Society, the payments of the staffs are managed.

Based on the volume of the society the number of staffs ranges from 2 to 20. The

salary and the other benefits for the employees are maintained in a separate

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book. Once in 15 days the payment are made to the members of the society, and

a record will be maintained for the payment information with the deduction of any

loan availed by the members. The infrastructure facilities available in Milk

Producers Co-operative Societies are given in Table 5.4.

TABLE 5.4 INFRASTRUCTURE IN MILK PRODUCERS COOPERATIVE SOCIETY

Details Availability and present scenario

Computers Available and are installed with Linux OS

Printers Dot Matrix Printers are available

Software Licensing Societies are not aware of Licensing

Weighing Units Available and not integrated with computers

Testing Units Available and not integrated with computers

Software Development No Standardised software application is available.

Networking Not Available

Internet Connectivity Not used because of delay in approval from union

Backup Power Backup is available in some of the societies and data backup is not in existence.

With the absence of internet connectivity, Compact Disc backup can be

taken and can be shared to the respective union. When the society are not in a

position to afford the computers, two are more societies are integrated to share

the usage of computers. Most of the societies are not aware of the software

licensing practices, if they are budget is not sufficient for the software licensing;

they have to plan for the open source software development. Once the union and

milk producers’ cooperative societies plan to migrate their operation from the

licensed software to the open source software, they have to plan for training. Milk

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Producers Cooperative Union and Milk Producers Cooperative Society have to

invest funds for the training. The status of the computer utility in the Producers

Cooperative Societies are given in the following Table 5.5

TABLE 5.5 STATUS OF COMPUTERIZATION IN MPCS

Area MPCS Chilling Centers

Milk Procurement System

Partially Computerised

Not Computerised

Accounts Not Computerised Not Computerised

Stores Not Computerised Not Computerised

Purchase Not Computerised Not Computerised

HR Not Computerised Not Computerised

The Computerization initiatives of Aavin are compared with that of Amul in the Table 5.6. TABLE 5.6 COMPARITION BETWEEN MPCS OF AMUL AND AAVIN

Area AAVIN AMUL

Milk Procurement System

Partially Computerised Fully Computerised that includes integration with quality testing, weighing and milk accounting systems.

Accounts Not Computerised Fully computerised using customized software. But some manual systems are being followed for purposes of audit

Stores Not Computerised Fully computerised, but not integrated with accounts. Interface between stores and accounts is through manual systems.

Purchase Not Computerised Integrated with the stores information system and most of the process are computerised.

HR Not Computerised Payroll which is a part of accounts is computerised, other activities do not use computers

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5.2.2 Requirement and Utility of Computer Application at the Union Level:

The Milk Producers Cooperative Union collects the milk from the milk producer’s

cooperative societies. 17 District Co-operative Milk Producers Union are

functioning in Tamil Nadu. Primary Milk Co-operatives functioning in the area of

operation are affiliated to the concerned District Unions. The District Collectors of

the Districts where the Union is located are the Special Officers of the Unions in

the place of elected boards. The Main activities of the unions are to procure milk

from Primary Societies, promote clean milk production, quality based milk cost

payment, supply of input services, animal health coverage, supply of feed and

fodder, implementation of Stare and Central Government schemes at District

level, conversion of surplus milk into skim milk powder and milk products,

marketing of liquid and milk products locally and through Metro Dairies.

At present AAVIN, Trichy is collecting milk from Pudukkottai also. The

chilling centre at Pudukkottai was established on 20.04.1986 under Operation

Flood and operated till 16.10.1993. The chilling centre was closed as it could not

be operated with full capacity. So, the Union collects milk from the Milk Societies

and send to Tiruchirappalli Union, and gets processed and packed for marketing.

The AAVIN, Trichy – Milk Producers Cooperative Union receives milk from the

Milk Producers Cooperative Society by means of different routes framed by the

union. The milk is procured from the bulk coolers in tank vehicles and from the

other MPCS by means of milk cans. After receiving the data, a sample of milk is

collected from the tank vehicle or the milkcan and is registered in the book. Here

the testing is done manually and the details are entered in to the computer. After

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the recording the details of the milk collected from the various societies, the milk

units were sent for processing and manufacturing of milk and milk products. Milk

not confirming to the standards laid down is rejected straightaway. The Steps in

the process of milk is described in Chart 5.1.

CHART 5.1 PROCESS OF MILK

Reception

Reception

Chilling Process

ocess

Reception

Storage tank

Reception

Pasteurization Stage

Reception

Cream Separator

Reception

Homogenizer

Reception

Storage Tank

Reception

Cream Storage Tank

Reception

Storage Section

Reception

Butter Packing Section

Reception

Ghee Melting Tank

Reception

Refrigerator and

Water Tank

Reception Packaging Section

Reception

Storage Section

Reception

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This reduces the tendency of fat to separate at and float the surface as a cream

layer. This process also makes the milk more easily digestible. The milk is

pasteurized to 80 degree Celsius to destroy pathogenic bacteria. Finally, the milk

is chilled to 4 degree Celsius and stored. The milk is now ready for travel to

thousands of waiting consumers. Just prior to dispatch, the milk is glycol chilled

to about 2 degree Celsius and either automatically packed in polyethylene

pouches or loaded in AAVIN fleet of Insulated road milk tankers to be delivered

at the various distribution points. Here, the AAVIN, Trichy is recording the

information at various stages in manual records. Regarding the marketing,

pasteurized milk in sachets is the main product of this union being marketed in

and around Trichy District and also sent to Metro Grid to feed Chennai people.

As per the status of 2010- 2011 an average of 83,000 litres of milk is sold

through 275 Commission Agents in Trichy and Karur District. The milk in bulk

quantity is supplied to more than 50 Government and 20 Private institutions.

Here, the AAVIN, Trichy is using the computer applications partially for recording

the information. The total automation is not available at this stage.

Ghee is manufactured from this Union certified by the ‘Agmark’ and sold in 200

gm., ½ kg and 1 kg pet bottles. The demand of Ghee in local market and up

countries is increasing day by day. The manufactured information and marketed

details are recorded in a manual book. AAVIN, Trichy is also manufacturing Milk

Khova. An average of 25 kgs of Milk Khova per day is manufactured and sold in

Trichy Town and programs are on the anvil to launch it as a milk sweet through

retail outlets. Here the manufactured details and the marketing details are

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recorded in a manual system. The marketable surplus milk is being diverted to

other product dairies for conversion and the converted products such as butter

and milk powder are marketed through Federation all over the country. The

marketable surplus details are maintained in manual system. The Deputy

Registrar of the AAVIN, Trichy is responsible for coordinating the policy and

management of milch animal’s advisory with the members of the cooperative

society. Veterinary Services are provided by the AAVIN, Trichy to the members

of the Milk Producers Cooperative Society. Table 5.7 shows the comparison.

TABLE 5.7 THE COMPARISON OF MPCS UNION TRICHY AND AMUL

AREA AAVIN AMUL

Milk Procurement System

Partially Computerised and not integrated with any testing measures.

Fully Computerised that includes integration with quality testing, weighing and milk accounting systems.

Accounts Partially Computerised and not integrated with any module

Fully computerised using customized software. But some manual systems are being followed for purposes of audit

Stores Partially Computerised and not integrated with any module

Fully computerised, but not integrated with accounts. Interface between stores and accounts is through manual systems.

Purchase Not Computerised Integrated with the stores information system and most of the process are computerised.

HR Payroll is handled by the computer application

Payroll which is a part of accounts is computerised, other activities do not use computers

Veterinary Visit Booking

Computers are not used for this service

Computers are used extensively in capturing data, allocating doctors for the visit and for generating billing

Cattle Feed Plant

Data is not integrated with the union.

Fully Computerised – computing facilities used in production planning, purchase and other activities. Input supply module is also computerised in the chilling centres.

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5.2.3 Requirement and Utility of Computer Application at the Tamilnadu

Cooperative Milk Producers’ Federation (TCMPF) Level:

The institutional frame has a three-tier structure with the Primary Milk Producers’

Cooperative Societies at the grass root (Village) level, Milk Producers’ Co-

operative Union at the middle (District) level and Federation of District Co-

operative Milk Producers’ Union at the apex (State) level.

The brand name of Dairy Cooperative is ‘aavin’. The Federation has 4 Dairy

Units in Chennai which collect milk from District Unions, process and pack in

sachets and send for sale to consumers in and around Chennai City. Sale of

liquid milk in Chennai and Districts has increased steadily.

The Tamilnadu Cooperative Milk Producers’ Federation (TCMPF) is a

successor body to the Tamilnadu Dairy Development Corporation, which was a

company, registered under the Companies Act. The TCMPF has implemented

Operation Flood I, II & III in Tamilnadu and at present there is a three-tier system,

namely, Village Dairy Co-operatives at the village level, District Co-operative Milk

Producers Unions, there a 43 Chilling Centres, 12 Dairies, 4 Feeder Balancing

Dairies, with spray drying powder plants having a conversion capacity of 70

M.Ts. a day. There are three Cattle Feed Plants supplying about 11,491 M.Ts. of

cattle feed per year. In addition, there are three modern Dairies at Chennai Metro

including a Product Dairy, manufacturing a wide variety of milk products including

Yoghurt, Ice-cream, as well as milk and ghee sweets. The Federation also has a

Nucleus Jersy and Stud Farm at Ooty and a Buffalo Frozen Semen Station at

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Erode. The Federation is also implementing Progeny Testing Scheme for

buffaloes and white cattle.62

A considerable quantity of milk procured from the Milk Producers

Cooperative Unions is send to the Milk Producers Federation every day for

Marketing and for production of dairy products.

Aavin produces 4 varieties of milk. They are 1. Toned milk (3% Fat), 2. Doubled

toned milk (1.5%) 3. Standardized Milk (4.5%), 4. Full Cream Milk (6%)

Milk products of 'Aavin' and Dairy Cooperatives are popular among the

consumers in Tamil Nadu. Madhavaram, Ambattur and Sholinganallur Dairies

activities is Milk Processing and Ambattur Product Dairy is manufacturing milk

products. Table 5.8 below shows the Milk processing capacity of the Aavin

Federation.

TABLE 5.8 SHOWING THE CAPACITY OF MILK PROCESSING IN THE FEDERATION

Name of the Dairy Activity Capacity (in Litre Per Day)

Madhavaram Milk Processing 2,00,000

Ambattur Milk Processing 4,00,000

Sholinganallur Milk Processing 4,00,000

Product Dairy, Ambattur Milk Products 10,000

Metro Supply Unions are Vellore, Kanchipuram, Villupuram, Trichy, Thanjavur,

Dharmapuri, Salem, Erode and Coimbatore. The functions of TCMPF are

Production Management, Inventory Management, Production Planning, Quality

Control, Personnel Management, Engineering, Marketing and Customer Care

and Support Cell.

62

STEP Project Proposal: page 5

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5.3 PRODUCTION MANAGEMENT

Production is executed by the Federation in Central Dairy, Sholinganallur

Dairy and Ambattur Dairy. Production of Milk and Milk Products is one of the

important activities of the Production unit. Here the process starts from the

receiving of milk from various Milk Producers Cooperative Unions and the Milk

Producers Cooperative Society which are part of the Federation. Here the

process involves from the collection of milk and ensuring the quality received

from the various union and societies.

After receiving the milk, the milk is made as part of various processes for

classifying the milk and making it suitable for dairy products. Here the

information received from the unions and societies are recorded in manual

registers. The Automation is done in the process of classifying the milk, whereas

the data is not stored in any form of computer application.

In the production management lot of labour are used for performing the

operation and monitoring the process of production. The details about the

employees are managed by the HR Department. Around 70 % of the employees

who are part of the Federation are manual labour.

Regarding the Administrative Head, Individual Deputy General Manager

(Production) will manage and supervise the total plant. He is in charge of the

entire dairy activities. He is responsible for the prepacking process and loading

the milk.

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In this department, only the information of procurement is managed by a

computer application and no integration with other departments like planning,

maintenance, HR and accounts.

5.3.1 Production and Maintenance

The Production process of the Federation involves various machineries.

5.3.2 Madhavaram (Central) Dairy

Central Dairy was erected to handle 1.0 Lakh Litres per day in bottles and later

converted to production of sachets with effect from 1997. Present handling

capacity is 3.0 Lakh Litres per day, despatches 2.7 Lakh Litres per day in

sachets, 0.2 Lakh Litres per day to Bulk Vending Units and 0.10 Lakh Litres

Pasteurized Chilled water to Products Dairy.

Dairy is equipped with latest Processing Plant, Homogenizer, CIP System

and Packing Machines. Dairy is having Solar panels to heat and the feed water

to the Boilers. The Dairy is equipped with latest Effluent Treatment Plant to

handle 3.0 Lakhs Litres per day. The Effluent Treatment Plat functions as per the

norms of the Tamilnadu Pollution Control Board and Treated Effluent Water is

utilized for Agriculture and Garden purpose within the Dairy and also to the

Fodder Farm of the Dairy Development Department.

5.3.3 Ambattur Dairy

Ambattur Dairy was constructed by the National Dairy Development Board

on Turn-key basis with a capacity of 2.0 Lakh Litres per day for Bulk Vending

despatches. The Sachet production was added during 1980. Ambattur Dairy

handles 3.4 Lakh Litres per day in sachets, 0.3 Lakh Litres for Bulk Vending

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despatches and 0.1 Lakh Litres per day processed chilled water to Products

Dairy.

The sterilized flavoured milk in bottles production at the rate of 2000 bottles is

carried out in four different flavours, Pista, Badam, Elachi and Pineapple in 200

ML. bottles. The marketing demands are met as per the needs. The distribution

of Milk is spread from George Town, North Chennai to Chrompet in the South

and up to Thiruvallur on the West. The Dairy is equipped with adequate

processing facilities. The latest Pasteurizer, Homogenizer and Packing machines

were added as per the needs. The Dairy is equipped with an Effluent Treatment

Plant with a capacity of 4.0 Lakh Litres per day. Effluent Treatment Plant

functions as per the norms of the Tamilnadu Pollution Control Board and the

treated trade Effluent is utilized for Agriculture purpose within the Dairy premises.

5.3.4 Sholinganallur Dairy

Sholinganallur Dairy was established during May 1995 with a handling capacity

of 4.0 Lakh Litres per day, 3.0 Lakh Litres for Bulk Vending despatches and 1.0

Lakh Litres per day in sachets. The present handling is 3.4 Lakh Litres per day in

sachets and 0.3 Lakh Litres per day for Bulk Vending dispatches. This is the first

automatic Dairy having Reception, Quality check and Processing with

Programmed Logistics Control System. The dairy is equipped with Processing,

Quality assurance, CIP, Packing and Cold Storage facilities. Dairy is equipped

with latest Effluent Treatment Plant to handle 5.0 Lakh Litres per day. Effluent

Treatment Plant is operated as per the Tamilnadu Pollution Control Board norms

and the treated trade effluent water is used for agriculture purpose within the

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Dairy premises. Deputy General Manager (Production and Maintenance) at

Central Dairy, Sholinganallur and Ambattur Dairy is managing the maintenance

activities of the Dairies. He is the administrative head of the employees working

in the dairy. The computers are used in the department for the document typing

only.

5.3.5 Production Planning

Regarding the Planning department, the information from the unions plays

an important role in deciding the forecast of requirements and the needs of

processed milk and milk products. The recording of information periodically will

help this department to decide or to draft a plan immediately. But this department

is dependent on the unions for gathering information and for planning. Planning

department has proposed the Government in the increase of milk production

through milk producers co-operative societies, increase in milk and milk product

sale and improve the milk marketing. All the details in this department are

managed manually; the computers are used for preparing reports as an

enhanced version of typewriter.

5.4 TRANSPORTATION OF MILK

Transportation is one of major activity of the Dairy Cooperatives. As milk is

a perishable product, it is important to procure the milk and have to make the

arrangement for reaching it to the appropriate destination within a stipulated

period. Regarding the management of Transportation it involves identifying the

availability of tankers for the collection of raw milk and sending the processed

milk to the milk vending machines. Other responsibilities involved are the

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maintenance and repair of vehicles periodically. On time to time basis, it may be

required to purchase new vehicles for the Federation based on the demand for

planning a new route.

Deputy General Manager (Transport) is responsible for the management

and the supervision of the transport unit of Madhavaram, Ambattur and

Sholinganallur Dairy. The Responsibility of the department involves managing

the repairs and maintenance of heavy and light vehicles, purchasing of

consumable items and spares for the transport vehicle, purchase of light and

heavy vehicles and monitoring the registration, insurance and road tax details

etc., He is the administrative head for the staff working under his control. All the

records are managed in this department manually. There is a wider scope for

computer applications in this department for administrative tasks.

5.5 INVENTORY MANAGEMENT (ENGINEERING)

The Federation involves Engineering Activities in Milk Processing and the

Milk Product Production Units. For the smooth running of the production,

periodically federation is involved in the purchase of capital equipments’, packing

materials, consumable spares in respect of Metro Dairies and Product Dairy.

Engineering department provides technical support to production and marketing

units. The department is responsible for the ISO, MMPO and HACCP related

activities. Tender related matters are managed by this department for the

procurement of items.

Deputy General Manager (Engg) / Material and Purchase is responsible

for administrating the activities of Engineering department and identifying the

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materials required on time to time basis and purchase of materials. The inventory

of the items is managed by recording the data in registers. The Computer

Applications is not available for the inventory management.

5.6 ACCOUNTS / FINANCE

The Accounts department manages the accounting functionality of the

Federation. It is accountable to the financial handling of the Federation only. It is

not related with functionalities of the unions. The Accounts department of the

Federation is computerized but it is not integrated with purchase or the marketing

department. The data are fed in to the computers manually.

Federation has developed an application named as FAP. The application takes

care of all the internal operation of 9 units. The Madhavaram Unit will operate the

accounting functionality individually and at the end of the year they will

consolidate with the Ambattur and Sholinganallur unit of account. The Application

has the facility of preparing the day book, General Ledger and total accounting

information. The Application uses the grouping method. The Application supports

the feature of Inter Unit transfer facility. The federation manages the accounts in

two forms. One is by means of operational accounts and another is non-

operational accounts. The information shared to the researcher is Head office will

make the expenditure and credit it to the marketing department. Milk Bill will be

debited by the head office and credited for the respective book of accounts. Apart

from the FAP Package, pay bill application is used for preparing the payroll.

Through this application all the financial statement with respect to the

federation are taken. Some of the reports are Day Book, Balance Sheet, Trading,

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Profit and Loss, Head Grouping of A/C. Accounts department is also involved in

the activity of employee house building advance. The accounts department

handles the employee house building advance of all the 9 units. Tally Software is

used to maintain the employee house advance accounts.

Provident Fund facility is available to the employees of the Federation. A

Separate Application was developed by the federation for the calculation of the

payment details. An employee can check his status by accessing the website

http://www.aavinnet.com/epf/ and providing the details like Year, EPF Account

Number and Date of Birth of the Employee. Deputy General Manager (Finance)

is the overall control of finance and accounts in respect of all units under the

control of Joint Managing Director and Joint Managing Director’s Office. He is

responsible for budgeting, capital and revenue, preparation and getting approval

of board. He will monitor the audit of accounts periodically and settlement of

objections.

5.7 MARKETING

Marketing is performed in 16 zonal offices. The processes that are performed by

marketing department are Card Sales, Route Schedule and Distribution. Dairy

Management involves managing the received milk, number of sachet, quantity of

milk procured, quantity of free milk procured,. The consolidation of received milk,

number of sachet, quantity of milk procured and quantity of milk procured are

performed by the federation.

5.7.1 Milk Card Sales System

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In the marketing department, one of the major challenging tasks is Milk Card

Sales in the milk parlor. Computerization plays a major role in managing the milk

card issued. A detailed study was performed to manage the renewal process of

the milk cards. With the detailed discussion of NIC, Federation is working on the

development on an online application. By means of this application it is possible

for the consumer to renew the milk cards with the help of the internet.

5.7.2 Computer Reports of the Marketing Department

The Major reports which are generated by marketing department using the

computers are Sales Receipts, Bank Statement, Demand and Collection

Statement, FIR Reports and Quality Control Reports. General Manager

(Marketing) is the overall administrative head of marketing unit I.e. Milk Division

and Product Divisions. He is responsible for monitoring sale of milk cards and

distribution of milk. He is responsible for monitoring sale of products in metro and

upcountry. He is responsible for sales account reconciliation and dues collection.

He will be monitoring the sales promotion. The other responsibilities that

includes are handling customer complaints and market supervision.

5.8 QUALITY CONTROL

Based on the petition by the consumers action will be taken. The information are

recorded in a manual register.

5.8.1 Customer Complaint Cell

The consumer can file by means of telephone or by means of an email.

The complaints are registered and taken necessary action within the earliest

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time. Deputy General Manager (Quality Control) is in charge of the activities in

regard to qualify control of milk and milk products. He will be monitoring the milk

arrivals from the District Unions to Metro Dairies. He will field milk and product

analysis. He will address customer complaints on milk and products quality.

Surprise visit to all the unions. To check the milk adulteration, engage quality

control staff. Here all the records are registered manually. No computer

applications are used for gathering and storing the data.

5.9 ADMINISTRATION

Joint Managing Director is the overall administrative head of the entire

JMD Unit consisting of four Metro Dairies, Marketing and transport unit. His

responsibilities includes controlling and co-ordination activities among

production, marketing – milk and milk products, quality control and transportation.

The other responsibilities are identifying marketing area for each Dairy. By

means of gathering the data he gives guidance if required by the units. As most

of the departments are not computerized, he is dependent on his subordinates

for collecting information and decision making. The status of Computer

application initiatives in the Aavin federation are given in the table 5.9.

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TABLE 5.9 PRESENT SCENARIOS IN AAVIN, TRICHY

Details Availability

Server Not Available

Printer Available

Software Licensing Not Available

Desktop Machine (1 unit) Old Machines are available and not up graded for some years

Testing Units Available and not integrated with any computer applications

Software Development Trial was executed for standarisation and are not successfully implemented

Networking No Networking is and not practiced

Backup Facility Power Backup is available and data backup is not available.

The comparison of the Tamil Nadu Cooperative Milk Producers Federation with

the Gujarat Cooperative Milk Producers Federation regarding the

computerization and the result is made in the table 5.10.

TABLE 5.10 SHOWING THE COMPARISON OF THE TAMIL NADU AND GUJARAT FEDERATIONS

TCMPF GCMPF

Production Planning and Management

Not Computerised

Integrated with the stores information system and most of the process are computerised.

Administration Payroll is handled by the computer application

Payroll which is a part of accounts is computerised, other activities do not use computers

Veterinary Visit Booking

Computers are not used for this service

Computers are used extensively in capturing data, allocating doctors for the visit and for generating billing

Cattle Feed Plant Data is not integrated with the union.

Fully Computerised – computing facilities used in production planning, purchase and other activities. Input supply module is also computerised in the chilling centres.

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TABLE 5.11 MILK PRODUCTIONS IN GUJARAT AND TAMIL NADU

Year

Gujarat

(in ‘000

tonnes)

Tamil Nadu

(in ‘000

tonnes)

97-98 4913 4061

98-99 5059 4273

99-00 5269 4586

00-01 5312 4910

01-02 5862 4988

02-03 6089 4622

03-04 6421 4752

04-05 6745 4784

05-06 6960 5474

06-07 7533 6277

07-08 7911 6540

08-09 8386 6651

09-10 8844 6787

10-11 9321 6831

Source: BAHS, Department of Animal Husbandry, Dairying & Fisheries, Ministry

of Agriculture, GoI.

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CHART 5.2 MILK PRODUCTION IN GUJARAT AND TAMIL NADU

Chart 5.2 clearly compares the milk production between Gujarat and Tamil

Nadu. In the year 1994, Amul has took the computer initiative and thereafter in

State of Gujarat almost all the Unions are started to implement the computer

applications. From the chart it is clear that there is a tremendous variation in the

milk production between Gujarat and Tamil Nadu. Even though the correlation

co-efficient gives the positive correlation between the milk production of Gujarat

and Tamil Nadu, but from the periods between 2006-2011, Tamil Nadu Milk

production was marginally increased when compared to the Gujarat Milk

production during the same period. There is phenomenal growth in the case of

Gujarat Milk production during the same period and among the other reasons this

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11

Gujarat 49135059526953125862608964216745696075337911838688449321

Tamil Nadu 40614273458649104988462247524784547462776540665167876831

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000A

xis

Tit

le

Milk Production in ('000 tonnes)

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may be mainly due to the computerization of all the operation of the Dairy sector

in that State.

TABLE 5.12 PER CAPITA AVAILABILITY OF MILK

IN GUJARAT AND TAMIL NADU (gms/day)

Year Gujarat Tamil Nadu

91-92 236 164

92-93 245 167

93-94 249 168

94-95 277 175

95-96 229 180

96-97 289 183

97-98 290 185

98-99 290 199

99-00 297 210

00-01 280 211

01-02 317 219

02-03 321 198

03-04 330 198

04-05 344 204

05-06 349 231

06-07 372 263

07-08 385 272

08-09 402 274

09-10 418 278

10-11 435 278

Source: BAHS, Department of Animal Husbandry, Dairying & Fisheries, Ministry

of Agriculture, GoI.

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Chart 5.3

PER CAPITA AVAILABILITY OF MILK IN GUJARAT AND TAMIL NADU (gms

/ day)

When compare to the per capita availability between Gujarat and Tamil Nadu

there is lots of variation from the year 1991-2011. The Gap has increased

significantly from the period between 2001-02 and 2010-2011. The concentration

of the business by Tamil Nadu dairy cooperatives is not on par with the

development of Gujarat dairy cooperatives. One among the reasons for slow

growth of per capita availability of milk is lesser utilization of computerization and

administration of Artificial Insemination and other measures. But the correlation

co-efficient between the per capita availability of milk Gujarat and Tamil Nadu is

positively correlated i.e. 0.905.

0

50

100

150

200

250

300

350

400

450

500

Gujarat Tamilnadu