K C MILK (1)

AN ORGANIZATIONAL STUDY IN KC MILK

By

S.DINESH KUMAR (10MBR031)S.VEERAKUMAR (10MBR107)

T.KARTHIK (10MBR049)

Of

KONGU ENGINEERING COLLEGEERODE – 638 052

A PROJECT REPORT Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirementsFor the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

JUNE-JULY 2011

KONGU ENGINEERING COLLEGE,ERODE

DEPARTMENT OF MANAGEMENT STUDIES

MBA – Summer projectJune – July 2010

BONAFIDE CERTIFICATE

Certified that this project report titled “AN 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:

COMPANYCERTIFICATE

S.DHINESH KUMARS.VEERA KUMART.KARTHIK I Year MBA,Department of Management Studies,Kongu Engineering College,Perundurai, Erode – 635 052.

DECLARATION

This is to declare that the project report entitled, “AN ORGANIZATIONAL

STUDY IN KC MILK” is a Bonafide record of the original work undertaken by me, under

the guidance of, Department of Management Studies, Kongu Engineering College, Erode and

this has not been submitted earlier to any other university for the award of any degree, diploma,

or similar title of recognition.

S.Dhinesh KumarS.Veera KumarT.Karthik

ACKNOWLEDGEMENT

I would like to thank our college principal, Dr. S.KUPPUSAMY M.E., Ph.D.,

and the Head of the department of management studies Dr. SOMASUNDARAM

BE., M.B.A., Ph.D. for his motivation and providing me moral support during the

course of this work.

I am very thankful, to Mr.C.SURESH KUMAR BE., Proprietor of KC Milk who

is provided the opportunity to do the project.

It gives me a great pleasure to express my profound and sincere thanks to my

faculty guide Dr.GHANAJOYHI M.com., MBA(HR).professor, department of

management studies, Kongu Engineering College for her timely guidance, which

this project would have attained a fine and final shape.

CONTENTS

CHAPTER

TITLE PAGE NO.

1.0

1.1

2.0

2.1

3.0

3.1

3.2

3.3

3.4

4.0

4.1

4.2

5.0

5.1

5.2

5.3

5.4

5.5

5.6

5.7

6.0

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

8

9

9

10

10

10

11

11

11

12

12

13

14

14

15

15

16

19

22

24

25

7.0

7.1

7.2

7.3

8.0

8.1

9.0

10.0

11.0

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

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.

Secondary Objectives of the study

The secondary objective is to identify weather motivational activities have any

significant influence on the work of employees of KC milk.

To study whether the factors such as wages, supervision, working, condition,

promotion, communication system, health, welfare, safety measures have any

significant influence on motivating them.

To find out the attitude of the workers on the working condition and welfare

facilities provided to them.

To suggest some measures to improve the motivation level in the

organization.

Company Profile

The Dairy is located at Seethamara Naal Road, Vedasandur, Dindugal

District, Tamil nadu. The company has been exploiting the potential of hygienic

and high quality milk to the society. The initial period, a diminutive quantity of

cow milk procured around the villages and sold the raw milk to various places of

the district.

The unit has certified for ISO 9001:2008(Quality Management System),

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. The Company also proposed to from a another Dairy at Batlagundu

and the estimated of milk about 2,00,000 liter per day. The brand “K C Milk” is

also a registered as a Trade Mark.

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, interacting with all Distributors and dealers continual

improvement of the ISO 22000 Food Safety Management System.

Objectives

Following the safety requirements as per ISO 22000 Food Safety

Management System and Milk & Milk Products order requirements.

Compliance with the National & International product and legal

requirements.

Communicating with and enhancing customer requirements

Effective implementation of good hygienic practices throughout the firms

Safety Management system process.

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.

Interacting with prime suppliers and relevant stock holders to achieve

product safety requirements.

Regularly reviewing the food safety policy, objectives and Food Safety

Management System.

Procurement Department

Milk Procurement

Cow Milk and Buffalo Milk has been procured from the farmers. At present,

the raw milk is collecting from 209 Villages through 44 milk collection routes. The

collected milk has transports to the company by own/hired trucks. Main areas of

milk procured from Kannivadi, Batlagundu, Palani, Vadamadurai, Eriodu,

Gujiliamparai, R.Vellodu, Edayakottai Odaipatty, Kallimandayam & neighboring

areas.

Procured milk is weighting through computerized data processing unit and

details are stored in the system. Payments are made by weekly basis though the

computerized billing system. To enrich the life style of farmers, the company also

providing loans from the nationalized banks and congregates regular camp for

conservation of cow/buffalo health with veterinary doctor.

General Laboratory

As per IS Standards the milk and curd tested by qualified persons. KC milk

procuring only the quality raw milk from the selected farmers. During the

reception each and every cans is checked for organoleptic tests, adulterations,

preservations acidity, MBRT, fat, LLR, and SNF etc. only the good milk will be

selected for production.

The processed or pasteurized efficiency milk and curd are tested for

pasteurization efficiency, MBRT, fat percentage, SNF percentage, homogenizer

efficiency etc. only after satisfied with milk quality by quality assurance

department the processed milk allowed to packing. By the above are giving quality

products to the consumers and getting full support from them.

Microbiology laboratory

As milk contains the 80% water it is an excellent medium for microbial

growth. Some microorganisms are beneficial and some are harm full to human

beings and animals. 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. So it is necessary to check the

microbes at raw and processed milk stage.

Even though we strictly following the IS standard hygienic practices, GMPs

and GHPs etc and pasteurization process kill all the pathogens, the firm testing the

raw milk, processed milk skimmed milk powder, water etc. for standard palate

count, Coliform, E.coli, staphylococcus aureus, Yeast and Mould, Thermoduric,

Thermophilic and psychorophilic bacteria.

Especially KC curd is hygienically produced by adding probiotic bacterial

cultures. These are having several beneficial effects like strengthening immune

system.

Stores Department

Stores department involve the responsibility of avoiding the idle of

machine without the Stock position of materials availability. The stores

keeper is the head of the department and one assistant is working under him.

Stores Process Chart

Indent from the department

Drafting quotation for the parties

Making comparison for the received quotation

Placing order through ERP

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, quantity date of the materials

required for the department.

2. Drafting of Quotation

Before drafting quotation, the requirement of material for the

department use indent form has description of items, quantity date of the

materials required for the department.

3. Placing Orders

According to the comparisons of quotation the firm can decide that to

whom to place order. Order should be clearly mentioned regarding the sales

tax, rate, discount, delivery date, payment, mode of dispatch and all

correspondences should be clearly mentioned in this purchase order.

4. 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. 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. 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. the pasteurization

temperature for homogenized, HTST pasteurized, regular-grade milk is usually

162-1670F(72-750C)for 15-20 sec.

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 policy

The firm committed the process and supply high quality & hygienic milk &

milk products to the society at specified time.

The firm built with relationship the firm’s customers through the most

excellent quality and our best services.

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.

Processing, 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, OT Testing Test]

Normal Abnormalities

COB & Alcohol Test

Positive Rejection

Negative

Weighing Bowl

[Weighing of milk identified with agent code, type of milk & no. of cans]

Sampling

[100 ml taken for each agent for LR, Temperature & FAT Test]

Weight Shown in DPU

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, CLR, FAT, 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], & Tonned Milk [TCM]

FCM

Fat: 6.0%, SNF: 9.0%

Addition of SMP & cream

SM

Fat: 6.0%, SNF: 9.0%

Addition of SMP

TCM

Fat: 6.0%, SNF: 9.0% cream separation Addition of SMP

Homogenization

Heating at 65 to 670C

Pasteurization

[at 80 t0 85 C for 15 seconds holding time]

Heat reduced to 400 C

Immediate Chilling to 40C

Storage in silos – 50 C

Phosphatase test, FAT, Temperature, CLR, SNF, Acidity, MBRT & Homogenization Efficiency test

Processing, 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, OT Testing Test]

Normal Abnormalities

COB & Alcohol Test

Positive Rejection

Negative

Weighing Bowl

[Weighing of milk identified with agent code, type of milk & no. of cans]

Sampling

[100 ml taken for each agent for LR, Temperature & FAT Test]

Weight Shown in DPU

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, CLR, FAT, Acidity & MBRT test]

Processing curd

Filtration Cream Separation

Double Tonned milk fat 1.5% and SNF 9%

Homogenization

Heating at 67 C & 200 kg pressure

Pasteurization

[At 90 t0 950 C for 15 seconds holding time]

Sampling

[250 ml milk taken for temperature, CLR, FAT, Acidity & MBRT & Homogenization Efficiency test]

Addition of Cultures

Mixing well for half an hour

Heat reduced to 40 to 420C

Pasteurized milk stored in silos (40 to 450C)

Process Description

Packaging

Pocket Sample

FAT, Temperature, CLR, SNF, Acidity, MBRT test, microbiological test, SPC, Coliform, E-coli, staphylococcus

Cold Storage [4 C]

Dispatch

(one sample per route for keeping quality test)

Customer Feedback

(Suggestion book at dealers’ and distributors)

Incubated at 42 C for 5 to 6 hrs and acidity test is conducted for each half an hour

Processing of raw milk mainly involves heat treatment operation usually

known as pasteurization and sterilization. These processes are discussed in detail

as follows. A weighed amount of raw milk is pumped to a clarifier by means of the

milk pump, where it is removed of microscopic impurities. Clarified milk is next

sent to the cooler where it is cooled to about 2-5oC, then pumped to the storage

tank.

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. Here the milk filtrate

450C and cream is separated at 670C, homogenization in 78-800C, in holding tube

15 sec for pasteurization and immediately chilling at 40C from the holding tube the

milk moves to flow diversion device

Product profile

The KC milk produces three verities of milk and the curd into a two type of

packages.

1. Standardized milk (SM)

2. Toned milk (TM)

3. Full cream milk (FM)

4. Pouch curd

5. Cup curd

PRODUCT DESCRIPTION AND APPLICATION

Cow milk is white liquid containing water, fats, protein, and sugar.

Chemical analysis of cow milk revealed that about 86-88% of it by weight is water.

Cow milk processing results a number of products such as processed milk, crud,

cheese and butter. All these products can be consumed by human beings as part of

diet on the daily feeding menu.

Cow milk contains 2.4-6.1% lactose. It is a complete food for infants up to 6

months of age; afterwards it acts as supplement to other foods. One point of milk

supplies about 320 cal. of which 50% is contributed by fat 20% lactose and 21%

by protein. Cow milk is also valuable source of phosphorus, calcium and vitamins.

It contains a useful amount of vitamins including vitamin A, thiamin (vitamin B),

pyridoxine (vitamin B), bistin, pentothenic acid and vitamin D etc.

Plant Capacity

Based on the market study, capital requirement and minimum economy of

scale, the milk processing plant will have a capacity of 1,50,000 liters of raw milk

per day and producing 1,10,000 liters at full operation capacity. 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.

The initial installed capacity of the plant was 20,000 liters milk per day,

which was then increased to 50,000 liters at two-shift basis. The capacity further

has been enhanced to 1, 00,000 liters per day in 2008. The capacity expansion was

necessitated by the excellent quality and services of all the products, particularly

the standardized milk and full cream milk. The expansion process also included

expansion of the covered area in the plant, from 25000Sq.Ft to 50000Sq.Ft.

Machinery and Equipment

The list of required machinery and equipment is indicated in Table

s.no Item

1. Weighing tank

2. Receiving tank

3. Milk clarifier

4. Milk pump

5. Plate cooler

6. Storage tank

7. Milk pump

8. Pasteurizer

9. Filling and packing machine

10. Boiler

11. Chiller

12. Churning equipment

13. Surge tank

Packaging

Its then Pasteurized, Standardized & Homogenized to the specification of

toned milk, standardized milk and full cream milk by the imported machineries.

The processed milk is then packed to the different volumes like 1000ml, 500ml,

250ml, and 200ml. To conserve the temperature of the milk, 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. The firm also has enthusiastic distributers, dealers, and a strong

marketing network. The company spreads out its product in the following areas, to

enrich the trading position the dairy affords the advertisement in wall painting,

boards, media advertisement like most popular local & global televisions, daily,

weekly, & monthly magazines, newspapers.

Demand Projection

The demand for industrially processed milk and milk products is highly

influenced by urban population growth, income, increased household attitude

towards processed foods to save time and labour as well as the availability of the

product itself. Considering the combined effect of these factors an annual average

growth rate is applied in projecting the demand for the products.

Distribution areas

Palani, nellai, nagercoil, trichy, madurai1, madurai2, pudhukotai, karur,

sivakasi, paramakkudi, Chennai, thanjur, ramnad, karaikudi, Coimbatore, Dindugal

etc.

The products are transported carefully maintaining the cold chain an under

the complete hygienic conditions. The company is also having 40 & above puffed

Transports on contract for retail sales. While making the product, the firm already

constructed the cooling facilities like puffed cold rooms, huge volume compressor

cold storage. The product is sold through network on communication basis.

Services

The quality policy of the firm is, “Process and Supply of Hygienic &

Superior quality of milk to the society at specified time”. The main activity of the

sales team is “Providing a respectable & excellent service to the consumers”.

Mainly, the Company offers a magnificent schemes to the distributors/dealers &

consumers to enhance the marketing strategy. Providing valuable gifts to the

regular consumers at festival & carnival episodes. Other than commercial

activities, the company also plays the pleasing role in the society. Providing a

adequate resources to the company employees like Provident Fund, employee state

insurance etc., and given employment opportunity to 350 direct employees and

more than 1000 employees indirectly.

Finance Department

Finance is regarded as “THE LIFE BLOOD OF BUSINESS

ENTERPRISE”. Finance function has become so important that it has given birth

to financial management as a separate subject. So, this subject is acquiring

universal applicability. Financial Management is that managerial activity which is

concerned with the planning and controlling and of the firm’s financial resources.

As a separate activity or discipline is of recent origin it was a branch of economics

till 1890. Still today it has no unique today of knowledge of its own, and it draws

heavily on economy for its theoretical concepts.

Scope of Finance Management:

Firms create manufacturing capacities for production for goods; some

provide services to customers. They sell their goods or services to earn profits.

They raise funds to acquire manufacturing and other facilities. Thus, 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). A business firm thus is an entity that engages in activities to

perform the functions of finance, production and marketing. The raising of

capital funds and using them for generating returns to the supplies of funds is

called the finance function of the firm.

Personnel Department

Recruitment policy

The management of HR in an organization is considered as the Personnel

Department. Personnel department helps in attracting, holding, maintains,

planning, utilizing, training and hiring an effective work place that will aid in the

accomplishment of the firm’s objectives.

In case of any grievance among their workers, their disputes are

solved internally by the personnel manager. There are 200 employees working in

KC Milk.

Maintenance Department

The maintenance department has functioning in firm which could maintain

the infrastructures, machines, sanitation and other maintenance activities.

Environmental Policy:

1. Creating awareness on Environment

2. Reducing Pollution

3. Continual improvement of the significant aspects.

4. Maintains greenery

5. Conform to the statutory regulations.

Conclusion

The prime objective is to identify whether motivational activities have any

significant influence on the work of employees of KC milk. To study whether the

factors such as wages, supervision, working, condition, promotion, communication

system, health, welfare, safety measures have any significant influence on

motivating them. To find out the attitude of the workers on the working condition

and welfare facilities provided to them.