MILK VITA

Contents 

IntroductionWhat is Operations Management

Overview of BMPCUL (Milk Vita)Financial Analysis of BMPCUL

Marketing Mix Analysis of BMPCULOverview of Milk Vita ProductsOverview of Pasteurized MilkOverview of Mirpur Branch

Marketing Strategies and CustomersOperations Management of BMPCUL

Problems in Achieving Efficiency in Operations ManagementRecommendation

Conclusion

MILK VITA Milk Vita is the trade name under which the dairy products manufactured by

BMPCUL are marketed.

• BMPCUL at a Glance :-• • • Name of the Organization : Bangladesh Milk Producers’ Co-operative Union Limited• Brand Name : Milk Vita• Inception of the Organization : Established in 1973 by the Government of

Bangladesh based upon FAO/UNDP recommendations, immediately after the liberation war.

• Location of the Organization : Head office, 139-140, Tejgaon I/A, “Dugdha Bhaban”, Dhaka-1208

• Total Land : 99.40 acre• Total No. of Plants : 36• Present Employees : 1117• Primary Society : 1836• Member Society : 79081• Direct Beneficiary : 7.55 lakh• Major Products : Pasteurized Milk, UHT Milk, Ice-cream,

Powder Milk, Curd, Ghee, Butter,Chocolate, Rashmalai.

• Website : http://www.milkvitabd.com//

What is Operations Management

• Operations management may be defined as the design, operation, and improvement of the systems that creates the firm’s primary products and services.

Overview of BMPCUL (Milk Vita)

Objective:• To ensure faire prices for the poor, marginal and landless milk producing farmer• To ensure regular supply of fresh milk and milk product

Milk Shed Areas :• Tangail, Manikganj, Tekerhat, Baghabarighat, Rangpur, and Sreenagar. Milk Supply Network :• collects milk through networks established by its primary co-operative societies• transported to the nearest plant for preliminary processing• the production of liquid milk, cream, ice-cream, flavoured milk, and sweet yogurOperational Areas :• Division 7• District 23• Up-Zilla 132• Union 490• Village 2125 Market Conditoin:

• Market Share: Market Takeover of BMPCUL is 50%.• Competitors: Aarong, Aftab, Akiz, Amo, Bikrampur, Pran and Rangpur Dairy • Supply and Demand of products in the market:Daily demand 300000 liters, sells 260000 liters daily

Overview of BMPCUL (Milk Vita)Cost & Income:• expenses of ৳16742 lakh and earns ৳17432.66 lakh in the financial year of 2009-2010• earns a profit of Tk 2.5 per litre. Total profit in this year is ৳690.66 lakhBeneficiaries of the Organization :• 160000 farmer-members under the fold of 1836 village Primary Milk Producers’ Co-operative Societies. • 700000 dependent farmer family members.• Above 1100 plants employees.• Micro credit facilities to 2000 milk producing farmers.• 6000 engaged in Transportation/distribution process• Enormous numbers of consumers.• More than 300 primary milk producing societies. Services Provided by BMPCUL : • Cattle Development and Management Training• Cattle Treatment• Co-op Management• Balanced Cattle Feed Supply Services• Micro-credit• Vaccination• Green Grass Cutting and seeds of grass • Artificial Insemination• Higher milk price at the farmer level• Guaranteed market of milk.

Overview of BMPCUL (Milk Vita)

Contribution to the Economy :• a very significant role in increasing income for

the poor, landless and marginal milk producing farmers

• aiding reduction of powder milk import thereby saving a huge amount of hard earned foreign currency every year

Governmental Role:• government of Bangladesh always supported

the efforts of the society

Financial Analysis of BMPCUL

Financial Year Total income Toatal expenditure Profit2007-2008 22994.02 21960.89 1033.13

July,2008 to Dacember, 2008 14691.33 13870.11 821.222009(January to june) 17432.66 16742 690.66

2009-2010 36947.21 35365.25 1581.96

Marketing Mix Analysis of BMPCUL

The set of controllable tactical marketing tools - products, price, place and promotion the firm blends to produce the response it wants in the target market.

Fig: Integrated market mix

Target Market

Price

Place

Product

Promotion

Overview of Milk Vita Products

Pasteurized MilkMilk Vita Liquid Milk, 100% Fresh and frozen

liquid milkPreserved in tetra pack

Milk Vita Cream

415 Gram Tin:Production Cost – Taka 44.10Price – Taka 48.

Fresh Milk

Milk Vita Sweet CurdPresent Price – Taka 1201 liter box :Production Cost – Taka 88

Flavored Milk1 liter packet :Production Cost – Taka 12 Price – Taka

Milk Vita Rosh MalaiPresent Price – Taka 2251 liter box :Production Cost – Taka 129

Full Cream Milk Powder1 KG packet :-Production Cost – Taka 675Present Price – Taka 695.00

Milk Vita Ice-Cream1 liter box :Production Cost – Taka 78.50Price – Taka 105

Milk Vita Chocolate 1 packet (20 Gram) :Production Cost – Taka 5Price – Taka 7.

Milk Vita Lollys65 ml packet :Production Cost – Taka 4.30Price – Taka 6

Overview of Pasteurized Milk

• meets the nutrition of protein in daily life• Vita pasteurized milk’s ingredients are – Fat 3.5% fat (BSTI approved),8%

Solid non fat  (SNF), Protein, Lactose , Vitamins, Minerals.• pasteurization center of Milk Vita : Baghabari, Tangail and Manikganj,

Natore and Srinagar chilling centers for pasteurization• Pasteurization processing is done through a pasteurizer machine• 3.5% fat (BSTI) and 8% solid non fat (SNF) are mixed in pasteurized milk• preserved below 4 degree Celsius or 40 degree Fahrenheit temperature• Supply of milk is daily 250,000 liters. Daily demand is 240000 liters• the financial year of 2009-2010, the total cost ৳ 35365.25 lakh, total

income is ৳ 36947.21 lakh• Marketing network is spread over Dhaka, Chittagong, Sylhet, Comilla, Feni,

Noakhali & B. Baria• Market price for a half liter packet is ৳ 28 and for one liter packet is ৳ 52.

Overview of Mirpur Branch

• situated in Mirpur-7 of Dhaka• has 1 chilling center and 3 pasteurization center• Chilled milk is brought from Baghabari and Tangail chilling center for further

processing• has its own distribution center just beside of it• Daily production of pasteurized milk is 300000 liter. It also produces UHT Milk, Ice-

cream, Rosh Malai and Curd

Target Customers : • Segmentation : Metropolitan cities are the focus targets. The cities include mainly Dhaka,

Chittagong, Rajshahi, Sylhet and Noakhali, Srimangal.• Targeting : Above 2 years old children and persons are consumers of Milk Vita products.

Overview of Mirpur Branch

OPERATIONS STRATEGY: • Competitive advantage : a. Costb. Timec. Technologyd. Qualitye. Workforce-Management Relationship LOCATION:• Address : Mirpur, Section – 7, Dhaka.• Total land in Mirpur : 8.46 acre.• Site choosing factors : Cost Transportation cost Supply of raw materials Marketing of Finished goods, Political issues By product facilities.

Overview of Mirpur Branch

• Site Choosing methods : Survey (Identifying for 2000 litre supply) Union MakingOPERATIONS TECHNOLOGY:• Automation Technology: Automation is the use of control systems and information

technologies to reduce the need for human work in the production of goods and services.• Process Technologies: Pasteurizing Technology UHT Technology Gerber Method CIV Process • Product Technologies: Lactometer Butyrometer • Computerized Systems for Testing: Milk Analyzer —Every factory of BMPCUL determines the percentage rate of fat and SNF with

the use of milk analyzer, which is run through computer systems

Overview of Mirpur BranchMachines used (Pasteurized Milk): • 3 Boilers• Generator • Compressor• Chiller• Air compressor• Water treatment plant• Pasteurizer• Filling machine• Homogenizer• Freezer• Choc-bar machine• Centrifuge Machine • Cup Machine• Crate washing machine• Mil tanker• Milk Vat• Cover Van (AC/non-AC)• CIV Plant• Laminar Air flow• Incubator• Autoclave• Petridish

Overview of Mirpur Branch

CAPACITY:Production capacity of the Factory: Pasteurized Milk : Production Capacity : 25000 liter per hour, Production : 320000 liter per day.

Daily sale : 240000 liter milk.

UHT Milk : Chocolate flavour - 2000 liter per day.

Ice-cream : 3000 kg per day.

Curd (Sweet & non-sweet) : 400 liter per day.

Rosh Malai : 300 liter per day.

INVENTORY CONTROL: Raw Milk : Inventory Model - Time-Based inventory model Operation periods - 360 days in a year Economic order quantity - 8/9 crore liter milk per year. Reordering - In 360 days, daily milk collection 2 times Safety Stock – No safety stock for pasteurized milk Finished Product (Pasteurized Milk) : 155000 liters of milk.

Overview of Mirpur Branch

JOB DESIGN:Job Decisions: • Who : Permanent and non-permanent labours.• What : Milk Products.• Where : In work centers and production centers.• When : 3 shifts (8 hours), starting from 8 am.• Why : To gain core competency over others.• How : Hourly and daily pay.

Number of Labours : • More than 100 permanent labours are there in this branch.Compensation Systems: • Permanent Labours --- Hourly pay • Non-permanent --- Daily Pay• Higher employees --- Monthly Pay.

Overview of Mirpur Branch

TRANSFORMATION PROCESSFrom Manufacturing View (Pasteurized Milk)

Input (Chilled Milk)

Processing (Pasteurization)

Output (Pasteurized milk)

Overview of Mirpur BranchMANUFACTURING PROCESSPasteurized Milk Processing

Chilling

Standardization

Cooling

Pasteurization

Standardization

Homogenizer

Monitoring

Filling

Packing

Cooling

Storing

Marketing Strategies and Customers

the Bangladesh Milk Producers’ Co-operative Union Ltd. Has been helping the rural Milk Producers’ in organizing their own village Primary Milk Producers’ Co-operative Society so that they can themselves become responsible for marketing their own milk, twice daily, and no longer have to depend upon middlemen or markets.

Operations Management of BMPCUL

Problems in Achieving Efficiency in Operations Management

• They have many competitors.• A lack of retailers who can work face to face

with the customers to generate product awareness.

• Future competition from already established market participation.

• A slump in the economy that could has a negative effect on peoples spending of discretionary income on these products.

Recommendation

Conclusion Milk Vita is the largest milk producing company in Bangladesh. It is helping about

7.55 lakh beneficiaries through its overall activities including operational, marketing, financial activities. Nowadays, many big and small dairy farms have been established with the help of Government, NGO’s and personal willing. So, in Bangladesh the milk production is increasing. Milk Vita still remains the most productive dairy farm in Bangladesh.