Study of Workflow at KDCMPUL, Anand

PROJECT REPORT

ON

STUDY OF WORKFLOW AT KDCMPUL, ANAND

FORAMUL

DURATION(13 July to 22 July 2011)

Submitted By –SANKET S. PRABHU

Submitted To –Mr. JIGNESH BHOI

ACADEMIC YEAR 2011-12.

PREFACE

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I got opportunity for training in AMUL, I feel lucky to get a chance to work with such a

reputed company which can upgrade my knowledge related to practical aspects of business

world and which is very helpful for my bright future.

Whatever I have learnt during my training period, I have tried to present in systematic

manner. I have tried to explain the process flow of each of the departments viz Societies,

Purchase, Production, Stores, FPS, Commercial & I have explained the interactions between

them. I have tried to portray role on GCMMF in these departments. I have limited my study to

work flow and process that are followed at AMUL plant at Anand.

The information provided is derived with professional guidance from people from various

departments in the plant.

ACKNOWLEDGEMENT

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First of all my special thanks to Mr. JIGNESH BHOI for giving me an opportunity to get

practical knowledge of an Industry.

I am very thankful to ANAND MILK UNION LTD for giving permission of training

project in their organization.

Grateful to all the people of the company who helped me directly or indirectly during my

training period, who shared their practical knowledge and their valuable time, without their

support and guidance my training would not have been a success.

Regards,

SANKET S. [email protected]

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD.ANAND

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1. HISTORY OF AMUL 5

2. STAGES OF DEVELOPMENT 7

3. AMUL LOGO 9

4. PLANTS OF AMUL , ANAND 10

5. COMPANY PROFILE 11

6. MISSION OF AMUL 13

7. ORGANIZATION STRUCTURE 14

8. AMUL - ANAND GENERAL PRODUCTION PROCESS 16

9. AMUL PRODUCTION PLANNING PROCESS – AN OVERVIEW 19

10. PURCHASE DEPARTMENT 20

11. ACCOUNTS DEPARTMENT 23

12. PURCHASE BILL DEPARTMENT 23

13. SOCIETIES 24

14. RECEIPT DEPARTMENT 27

15. PRODUCTION DEPARTMENT 29

AMUL – 3 PROCESS AND RECEPTION LAB 30

AMUL – 2 PROCESS AND MILK POUCH 32

BUTTER SECTION 35

STERILIZED FLAVOURED MILK 37 GHEE SECTION 39

16. STORES (FPS – FINISHED PRODUCT STORES) 40 INVENTORY MANAGEMANT AT KDCMPUL – AN INTRODUCTION 43 NATURE OF INVENTORY 43 OBJECTIVES OF INVENTORY MANAGEMENT 44 BENEFITS OF INVENTORY MANAGEMENT 45 INVENTORY CYCLE 45 AMUL STORE DEPARTMENT 46 INVENTORY MANAGEMENT 47

17. COMMERCIAL DEPARTMENT 4918. SOME OTHER DEPARTMENTS IN AMUL 52

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19. CONCLUSION 54

20. BIBLIOGRAPHY 54

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HISTORY OF AMUL

In the year 1946 the first milk union was established. This union was stated with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955

The brand name Amul means ‘’AMULYA’’. This word derived from the Sanskrit word “AMULYA’’ which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs.6 billion in 2005). Today Amul is a symbol of many things like of the high quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN “).

In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union. Instead of supplying milk to private traders, Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also formed to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of Govt. the farmers of Kaira District went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of

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Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.

Thus their co-operative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhovandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakes liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of Newzealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr. Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

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STAGES OF DEVELOPMENT:-

AMUL is the co-operative union with a slow and steady growth. AMUL had started with

one society, now it has almost a union of 1073 societies. The development of AMUL was step by

step. The main stages of Development are as follows:

IN 1954:-

In this year UNICEF provide the financial help worth Rs.50 million to AMUL. This financial

help led to establishment fully automatic plant for providing milk and milk powder.

IN 1958:-

In this year AMUL expanded the plant & started producing Sweetened condensed milk.

IN 1960:-

The excess supply of milk in the winter season and huge amount of profit made

expansion possible for AMUL. AMUL established new units for producing cheese and baby food.

This created history in the Dairy Products, because it was the initialization where cheese and

baby foods were being produced from the Buffalo Milk.

IN 1981:-

The new Cattle feed Plant was established at KANJARI.

IN 1992:-

For getting the benefits of excess supply of milk, Amul established another plant named

AMUL – 3. This plant has capacity of producing 14 lakhs liters of milk daily.

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In 1994:-

The new Cheese Plant was established at KHATRAJ and Chocolate plant was established

at MOGAR. These two plants started with the help and the aid given by NDDB.

IN 2001:-

For providing the quality milk at any time, AMUL launch the flavored milk. These

Flavored milk products were available in many different flavors.

IN 2003:-

For the market expansion the Amul launched “SNOWBALL” pizza and Flavored Lassi.

This gave a new market share in the fast food area for the Amul and led to the development of

the Amul

IN 2004:-

The Amul keeps on achieving new highs in this competitive world. It has launched

CHOCOZOO (Chocolate), MUNCHTIME (Gathiya). Amul also started the new satellite Dairy at

PUNE and KOLKATA. This helped AMUL in expanding milk marketing in other states.

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AMUL LOGO

Anand Milk Union Limited - AMUL

VISION & LOGO

The main Motto of Amul is to help the farmer. Amul system works under the objective of highest possible price to the milk producers and lowest possible price to consumer. Farmers are paid money in cash payment for the milk. Milk gives them money for daily necessities. Amul is the one who started using their profit for the milk producers’ common good.

Symbol of AMUL is a ring of four hands, which are coordinated each other. The actual meaning of this symbol is Coordination of hand of different people by whom this Union is now at top.

First hand is for the Farmer (Producers), without whom the organization would not have existed.

Second hand is for the Representative of processor by whom the raw milk processed into different finished products.

Third hand is for Marketer without whom the product would not have been able to reach to the customer.

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Fourth hand is for Customers without whom the organization could not carry on, because they are the people who consume the product By co-ordination of this four people the Union run successfully.

PLANTS OF AMUL, ANAND

MOGAR PLANT

It is situated on Anand – Vadodara Highway No. 8. Its Production is Chocolates, Nutramul, Amul Lite and Amul Ganthia. This plant was established in 1973.

ANAND PLANT

The products produced are Milk, Buttermilk, Milk Powder, Butter, Ghee, Flavored Milk etc. It was established in 1973.

KANJARI PLANT

The product produced is cattle feed Old plant was established in 1964 & new Plant in 1980.

KHATRAJ PLANT

It is situated between Nadiad – Mahemdabad. The product manufactured is Cheese.

Chilling Center

Kapadvanj, Undel and Balasinor

Satellite Dairy

Balasinor, Undel

Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no.1 dairy in Asia and no.2 in the world, which is matter of pride for Gujarat and whole India.

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COMPANY PROFILE

Name of the Unit : The Kaira District Co-operative Milk producer’s

Union Ltd. Anand, Gujarat

Registration date : 14th December 1946 under co-operatives act.

Size of Unit : Having the capacity of process 14 lakh liters of milk

producing 10 different products

Registration : Kaira District Co-operative Milk Producers’ Ltd.

Office Anand- 388001

Bankers : Kaira District Central Co-operative Bank

UTI Bank

State Bank of India

Bank of Baroda

Bank of Maharashtra

State Bank of Saurashtra

Corporation Bank.

Auditors : Internal auditors and Government auditors

Initial promoters : Shri Tribhuvandas Patel

Shri Morarajibhai Desai

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BOARD OF DIRECTORS:

1. Shri Ramsingh P. Parmar Chairman

2. Shri Rajendrasinh D. Parmar Vice Chairman

3. Shri Shivabhai M. Parmar Member

4. Shri Maganbhai G. Zala Member

5. Shri Chandubhai M. Parmar Member

6. Shri Pravinbhai F. Solanki Member

7. Shri Dhirubhai A.Chavda Member

8. Shri Bhaijibhia A. Zala Member

9. Shri Mansinh K.Chauhan Member

10. Shri Bipinbhai M.Joshi Member

11. Smt. Madhuben D. Parmar Member

12. Smt. Sarayuben B. Patel Member

13. Shri Ranjitbhai K. Patel Member

Shri B. M. Vyas

(M.D. of GCMMF, Anand)

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Shri Rahulkumar Shrivastav

(M.D. of KDCMPUL, Anand)

MISSION OF AMUL

The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul. The system works only for farmers and for consumers, not for profit. The main aim of Amul is to provide quality products to the consumers at minimum cost. The goal of Amul is to provide maximum profit in terms of money to the farmers.

QUALITY POLICY

We the motivated and dedicated work force at Amul are committed to produce wholesome and safe foods of excellent quality to remain market leader through deployment and quality management system, state-of art, technology, innovation an eco-friendly operation to achieve delight of customers and betterment of milk producers

THE ORGANIZATION

Co-operative is generally operated not for the profit but for the betterment of consumer and products. Their main objective is to serve people of the society with good quality of product with as much as low price.

“AMUL “is the successful Co-operative sector. The brand names itself indicates how AMUL is separated over the country and world. Amul gets so many awards for its productivity and performance. Amul is Asia’s no.1 and 2nd in world, which is a matter of proud for India. In our country every one knows what Amul is. This makes the popularity and contribution of the dairy industry. AMUL is co-operative organization and they also doing social works. They provide employment to the village people. They also provide health centers and education facilities to the villagers.

Amul has a three level structure. The first level is called primary level. Here village societies are placed. The second level is district level where NDDB placed and the third level is state level where Federation placed Co-operation among this three level is necessary for achievement of goal.

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ORGANIZATION STRUCTURE

Board of Directors

Managing Director

Assistant General Manager

Manager

Deputy Manager

Assistant Manager

Senior Executive

Executive

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Shri Ramsinh Parmar

Shri Rahul Kumar

Senior Officer

Senior Assistant

Assistant

Workers

AMUL ANAND PLANT

WORKERS in AMUL DAIRY 969

Total No. Of Shifts:

There are three shifts.

1st Shift Time: 8:30 a.m. to 4:30 p.m.

2nd Shift Time: 4:30 p.m. to 12:30 a.m.

3rd Shift Time: 12:30 a.m. to 8:30 a.m.

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AMUL - ANAND GENERAL PRODUCTION PROCESS

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AUDIT PURCHASE PURCHASE BILL

GCMMFAMULHQ

AUDIT STORES /FPSQADISPATCH

AUDIT RAW MATERIAL STORESQA

AUDIT AMUL2(D)QA AMUL-3(A)

SOCIETIES AUDIT MILK

AUDIT PRODUCTIONQABUTTER GHEE FLAV MILK

AUDIT AMUL-2(E)QA AMUL-3(B)

AUDIT AMUL-2(F)QA AMUL-3(C)

AUDIT COMMERCIAL DEPARTMENT

GCMMF AMULDEPOTSDAIRIES

ACCOUNTS DEPARTMENT

1. Section 1: GCMMF HQ /AMUL

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PCM – Program committee meeting is held at the start of every month,

accordingly planning is done. Details are explained (AMUL PRODUCTION

PLANNING PROCESS – AN OVERVIEW page-19)

GCMMF(Gujarat Co Operative Milk Marketing Federation)/AMUL interacts with

each and every department during production process.

2. Section 5: PRODUCTION (BUTTER , GHEE ,FLAVORED MILK) /AMUL-2 /AMUL-3

Planned details for each product are sent to respective Production department.

Accordingly Production Planning is done for 3 months. Production process details

of each product is explained below. (PROUDCTION DEPARTMENT page-29 to 39)

Milk is Processed in AMUL-2, AMUL-3 (Details explained in PRODUCTION

DEPARTMENT -AMUL-2(E) page-32, AMUL-3(B) page-30)

3. Section2: PURCHASE DEPARTMENT

Production requires Milk and other raw materials. Milk is procured from

Societies (Section3) and raw materials are procured by Purchase Department

only. The detailed processes are explained below

(PURCHASE DEPARTMENT page-20 to 23)

4. Section3: SOCIETIES

Milk Procurement is function of societies detailed below.

(SOCIETIES page-24 to 26)

5. Section4:RAW MATERIAL STORE / AMUL-2 /AMUL-3

Procured raw materials are stored in RAW MATERIAL STORE.

(RECEIPT DEPARTMENT/ RAW MATERIALS STORE page-27 -28)

Procured Milk is stored in AMUL-2 / AMUL-3. (Details explained in PRODUCTION

DEPARTMENT - AMUL-2(D) page-32, AMUL-3(A) page-30)

6. Section6: STORES /FPS/DISPATCH DEPARTMENT /AMUL-2/AMUL-3

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Finished Products (Butter, Ghee , Powder, Flavored Milk) are stored in FPS

(Finished Product Stores) and dispatched from this department only. Details

explained in (FINISHED PRODUCT STORES DEPARTMENT page 40 to 42)

Processed Milk is stored and dispatched by AMUL-2, AMUL-3.(Details given in

PRODUCTION DEPARTMENT - AMUL-2(F) page-34, AMUL-3(C)page-31)

7. Section7: AMUL ANAND COMMERCIAL DEPARTMENT

All Goods need to be cleared from this department. Pricing is done in this

department. (COMMERCIAL DEPARTMENT page 49 to 51)

8. GCMMF DEPOTS /AMUL DAIRIES

Goods are transported to depots across the country for sale or other AMUL

Dairies for internal consumption.

9. ACCOUNTS DEPARTMENT.

Accounts department interacts with each department since all transaction

details are processed by Accounts department. (page 23)

10. AUDIT / QUALITY ASSURANCE

Audit and QA takes place at every stage.(page 52)

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AMUL PRODUCTION PLANNING PROCESS – AN OVERVIEW

GCMMF (Gujarat Co Operative Milk Marketing Federation) is the marketing body of all Unions

who manufacture and sell products under Brand name AMUL.

1. GCMMF according to the market survey and past sales, predicts the sales for the next

few months.

2. Accordingly the requirements at several depots (42 approx) spread across the country

is decided.

3. PCM – Program committee meeting is held at the start of every month (generally in the

first week).

4. GCMMF projects its expected sales in the meeting.

5. The inventory available at each of the plants is taken into account.

6. Taking into consideration Past and Future/Predicted sales, the amount of milk expected

to be procured, the total quantity of each product to be produced is roughly

determined.

7. Depending on demographics of AMUL Dairies, GCMMF Depots and several other factors

quantity of each product to be produced at each respective AMUL dairy is determined.

I.e. PD Planned Dispatch is determined for each AMUL Union.

8. Accordingly Production Planning is done for each AMUL dairy.

PURCHASE DEPARTMENT

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-Mr. S P DESAI

PURCHASE DEPARTMENT PROCESS FLOWCHART

PRODUCTION DEPARTMENT↓

PR (PURCHASE REQUISITION) GIVEN↓

PR contains Product Code, Quantity, and Delivery Date↓

PRODUCT SUB DIVIDED IN 3 TYPES

NORMAL PRODUCT RAL RATE APPROVAL LIST EMERGENCY PRODUCT↓ ↓ ↓

RFQ -REQUEST FOR QUOTATION GCMMF HAS LIST OF APPROVED PRODCTION DEPT VENDORS HAS EMERGENCY

↓ ↓ ↓ 3-10 PARTIES

↓QUOTATION FROM PARTIES PO IS REALEASED TO THAT VENDOR ICPO IS REALEASED

↓ ↓COMPARATIVE STATEMENT PREPARED INDENT COME

PURCHASE ORDER↓ DIRECTLY UNDER GM

AUDIT TAKES PLACE↓ ↓ ↓

CHEAPEST QUOTATION THAT MEETS REQUIREMENTS IS SELECTED

↓ ↓ ↓AM APPROVAL FOR PRICE < 5000MD APPROVAL FOR PRICE > 5000

↓ ↓ ↓↓

PO IS CREATED FOR RESP VENDOR↓

AS PER DELIVERY DATE VENDOR DELIVERS GOODS TO STORES↓

SAMPLES ARE SENT TO QA DEPT DISAPPROVAL SENT BACK↓

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APPROVAL↓

SENT TO PRODUCTION DEPARTMENT DISAPPROVAL SENT BACK↓

APPROVAL↓

GOODS RECEIPT NOTES PREPARED ALL GOOD RECEIVED ↓ PO CLOSED

SENT TO ACCOUNTS↓

CLUBBED WITH INVOICE & TEST APPROVAL REPORT↓

PAYMENT TO VENDOR

PURCHASE:

There is a centralized purchase system. Purchasing of all the raw materials except the

cattle feed is done through this department. Main type of materials are Engineering

materials, packaging stationary, veterinary medicine, chemicals, raw material for production

etc. After getting indent from the stores department the purchase order is placed to

different purchasing systems for obtaining different materials. For packaging material and

veterinary medicine, an RAL (Rate Approval Letter) is provided by GCMMF in which rates,

quantity, quality etc. are predefined by GCMMF

PROCESS

1. Production department/any user can create a PR (Purchase Request) if any raw

materials are required for production.

2. PR will be created in SAP ERP system.

3. PR will contain product name ,product code , quantity , and the excepted delivery date.

4. For our convenience we divide the products in three types

NORMAL PRODUCT

RAL RATE APPROVED LIST

EMERGENCY PRODUCT

5. NORMAL PRODUCT

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A. RFQ (Request for quotation) is sent to the vendors

B. Quotation is received from the respective vendors.

C. Comparative statement of all quotations is prepared by the purchase department.

D. Depending on the comparative statement, AM approves the cheapest quotation

that meets all specifications, up to rupees 5000.If amount exceeds 5000 MDs

approval is required.

E. On approval PO purchase order is released.

6. RAL -RATE APPROVED LIST

A. RAL basically consists of packaging materials and veterinary medicines.

B. Vendors for such items is fixed by GCMMF.

C. Purchase department directly generates PO for such items.

7. EMERGENCY PRODUCT

A. Production may require raw materials urgently at times.

B. Normal procedure cannot be followed under such circumstances.

C. ICPO-Indent cum purchase order is released under GM approval under these

conditions.

8. PO is released.

9. Transporter for the respective vendor has to supply the raw materials on the respective

date.

10. Goods are received at the stores.

11. Samples of the raw materials are sent for Quality Assurance to confirm whether goods

meet required specifications.

12. On disapproval by QA goods are sent back.

13. On approval goods are sent to production department.

14. On disapproval by production ( even cleared by QA) goods can be sent back.

15. On approval by production GR (Goods Receipt) note is prepared.

16. If all goods mentioned in PO are received, PO is closed.

17. GR Note, Invoice & Test Report for QA are clubbed together and sent to Accounts

department.

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18. Payment is made to the vendor.

SOME IMPORTANT FUNCTIONS OF PURCHASE DEPARTMENT

A. Service Contracts : Service Contracts are also a function of the Purchase department.

Dairy Maintenance Contract

PEST Contract

Boiler Cleaning Contracts

Consultancy Contracts

B. ARC – Annual Rate Contract are also issued by Purchase Dept to Vendors to get goods

from them annually at the same mentioned rate

C. AMC – Annual Maintenance Contract are also issued by Purchase Dept for maintenance

ACCOUNTS DEPARTMENT

The activities performed by this department are cash and bank related activities,

societies’ accounts, taxes related accounting, investment receipts and payments, milk cycle

related activities and data entry. All the accounting transactions performed by different

departments like Purchase Department, Commercial Department, and Societies. All financial

transactions with GCMMF are handled by accounts department only. Different types of

vouchers are processed here. All final accounting is done in this department.

PURCHASE BILL DEPARTMENT

Purchase Bill department is a sub-division of the accounts department. All

accounting related to Purchase and Billing is done here. Vouchers for purchase are

prepared in this department and then sent to the Accounts department for further

clarification and final dispatch.

SOCIETIES

- Mr. J R PATEL

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SOCIETIES

Societies’ division is a link between milk producers and AMUL. Milk producers first

contact the societies’ division for any queries. All day to day transactions with the milk

producers are done through this department.

Milk is procured from several co operative societies in Gujarat.

Following cooperatives that function under GCMMF.

Kaira Dist Coop Milk Producers’ Union Ltd, Amul Dairy, Anand Mehsana Dist Coop Milk Producers’ Union Ltd, Dudhsagar Dairy, Mehsana. Banaskantha Dist Coop Milk Producers’ Union Ltd, Palanpur. Baroda Dist Coop Milk Producers’ Union Ltd, Baroda. Bharuch Dist Coop Milk Producers’ Union Ltd, Bharuch. Valsad Dist Coop Milk Producers’ Union Ltd, Vasudhara Dairy, Valsad. Panchmahal Dist Coop Milk Producers’ Union Ltd, Godhra. Bhavnagar Dist Coop Milk Producers’ Union Ltd. Gandhinagar Dist Coop Milk Producers’ Union Ltd, Gandhinagar. Junagadh Dist Coop Milk Producers’ Union Ltd, Junagadh. Ahmedabad Dist Coop Milk Producers’ Union Ltd, Ahmedabad Kutch Dist Coop Milk Producers’ Union Ltd, Kutch Dairy, Madhapar. Rajkot Dist Coop Milk Producers’ Union Ltd, Rajkot. Sabarkantha Dist Coop Milk Producers’ Union Ltd, Sabar Dairy, Himatnagar. Surat Dist Coop Milk Producers’ Union Ltd, Sumul Dairy, Surat. Surendranagar Dist Coop Milk Producers’ Union Ltd, Surendranagar.

MILK PROCUREMENT PROCESS AT AMUL ANAND FLOWCHART

FARMERS↓

TANKER SOCIETIES

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↓SOCIETY1

↓MILK MEASUREMENT

↓ SLIP GENERATED ACCOUNTS

↓BMC BULK MILK CHILLING / CAN

↓SOCIETY2

↓BMC BULK MILK CHILLING / CAN

↓SOCIETY3/ SOCIETY4/ SOCIETY5………….

↓ROUTE FIXED

↓SOCIETIES AMUL3 /CAN AMUL2

↓MILK MEASUREMENT ACCOUNTS

↓INVOICE GENERATED

↓PAYMENT TO BMC WITHIN 10 DAYS

↓BMC /SOCIETY PAYMENT TO FARMERS

AT RECEIPT OF MILK / WITHIN 2 DAYS/5 DAYS/10 DAYSON BASIS OF SLIP GENERATED AT RECEIPT

PROCESS1. Milk is procured from Anand district & Khaira district.2. KDCMPUL has three chilling centers at Kapadvanj , Balasinor & Undel and satellite

dairies at Khatraj , Balasinor.

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3. 774 societies supply milk to AMUL Dairy , Anand.4. Farmers supply milk to the 774 societies in Anand & Khaira districts.5. Societies having BMC bulk milk cooling centre store milk at 4 deg.C and the others store

milk in cans.6. Milk measurement – Quantity of milk is calculated. The Fat and SNF details are

collected. The details are updated in SAP ERP system. Accounts department gets the details.

7. Slip : Slip is generated on this measurement basis and given to the farmers to claim their payments.

8. Tankers from AMUL Anand dairy, as per their pre determined schedule collect milk from the societies via a predetermined route.

9. Finally milk collected from BMCs is given to AMUL-3 & collected from societies through cans is passed to AMUL -2

10. Milk measurement – Quantity of milk is calculated. The Fat and SNF details are collected. The details are updated in SAP ERP system. Accounts department gets the details.

11. Payments is accordingly made to BMCs/ Societies within 10 days of receipt of milk12. BMCs/societies have some advance cash to make instantaneous payments to farmers.13. Payments are made to farmers immediately on receipt or within 2 / 5 / 10 days of

receipt of milk on basis of slip generated.

RECEIPT DEPARTMENT (RAW MATERIALS STORE)

-Mr. A K THAKUR

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Receipt department receives the raw materials/goods as planned by the Purchase department.

All the raw materials are stored in the Stores department. When requirement for any material arises, the store department gives the necessary indent to the Purchase department. This is done on a proactive basis so that no stock out situation arises. All the incoming materials are received by this department and the quality check is done in the laboratories. Goods receipt notes are prepared through this department. The Stores department is divided into three main parts, which are (a). General (b). Miscellaneous (c). Engineering.

RAW MATERIALS STORE PROCESS FLOWCHART

PO IS CREATED FOR RESP VENDOR BY PURCHASE DEPT↓

AS PER DELIVERY DATE VENDOR DELIVERS GOODS TO RAW MATERIAL STORES

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↓SAMPLES ARE SENT TO QA DEPT DISAPPROVAL SENT BACK

↓APPROVAL

↓SENT TO PRODUCTION DISAPPROVAL SENT BACK

DEPARTMENT ↓

USER APPROVAL↓

GOODS RECEIPT NOTES PREPARED ALL GOOD RECEIVED

↓PO CLOSED

1. Transporter for the respective vendor has to supply the raw materials on the respective

date as per the PO details.

2. Goods are received at the stores.

3. Samples of the raw materials are sent for Quality Assurance to confirm whether goods

meet the required specifications.

4. On disapproval by QA goods are sent back.

5. On approval goods are stored in Stores godown.

6. As required, the goods on a daily basis are transferred to the production department.

7. Inventory of the Raw materials godown – Stock Statement is regularly checked on a

daily basis.

8. Stock statement is an odd list of approximately 200 items.

9. On disapproval by production (even cleared by QA) goods can be sent back.

10. On final approval GR (Goods Receipt) note is prepared.

11. If all goods mentioned in PO are received PO is closed.

PRODUCTION DEPARTMENT

- Mr. D R SHARMA

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INTRODUCTION

The basic philosophy of production management is to launch a frontal attack on direct costs and

effective use the availability manpower weaving new techniques in to the whole to keep the production

unit efficient and developing production management is the process of planning, organizing, directing

and controlling.

AMUL was started with only 250 liters of milk per day. But now AMUL collects average 11 lakhs

of liters milk per day. At the initial stage, AMUL has not any problem regarding milk, but in the winter

season there was excess supply of milk. So, AMUL had to sell out that excess milk at the low price or

AMUL had to face loss. To removing these problems AMUL took a decision to set up a plant to process

the surplus milk, butter and milk powder.

With the financial help of UNICEF, union established a Rs. 50 million factory to manufacture milk

powder and butter in November 15, 1954. In 1958 the plant was expanded to manufacture sweet

condensed milk. In 1960 the other branch is started, which can produce 600 tons of cheese and 2500

tones of baby food every year. In 1964 the other plant was established to manufacture cattle feed on

October 31, 1964. Third dairy and cheese plant at Khalraj began in February 1994.

Today the AMUL has three plants Known as AMUL 1, 2 & 3 all three plant work 24 hours a day

continuously. The all manufacturing process is done automatically. The production is done in the special

machines. These machines and the technology are import-id from the TRFTA PEAK Company. There is

also facility of chilling of milk, so that the milk remains usable.

AMUL PRODUCTION SECTIONS

MILK RECEPTION

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AMUL – 3 PROCESS AND RECEPTION LAB

This is very first department of any dairy where tankers loaded with milk are

unloaded and simultaneously the milk is tested and processed further.

Raw milk at AMUL– 3, is received through road tankers and in cans from AMUL – 2.

There are three reception lines for unloading milk tankers.

A. AMUL – 3 MILK RECEIPT PROCESS

1. Tankers from AMUL, Anand dairy as per their pre determined schedule collect milk from the societies via a predetermined route.

2. Finally milk collected from BMCs is given to AMUL-3.3. There are 3 bays of unloading milk tankers4. Each reception lines are equipped with the following: Centrifugal pumps each of capacity of 30000 liters/ hours. Tank to remove air from the milk. Filters - filter the milk. Pre heat exchanger (chiller) – one PHE after each filter. Raw milk silo used for storage of raw milk.

B. AMUL-3 MILK PASTEURIZATION PROCESS

AMUL-3 process takes place as follows

Raw Milk Tankers (With chilled milk)↓

Chiller (Cooled down)↓

Raw Milk Buffer Tank (Stored in the tank)↓

Raw Milk Silo↓

Balance Pasteurizer Tank↓

Regeneration Section↓

Cream Separation

Skimmed Milk Cream Buffer Tank↓ ↓

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Pasteurizer( 80 +/- 3deg.c) Cream Pasteurizer( 80 +/- 3deg.c)↓ ↓

Milk Silo Cream Balance Tank↓ ↓

Issued to Powder Section Issued to Butter Section ↓

Standardization unit↓ ↓

Skimmed milk Whole milk↓ ↓

Pasteurization Pasteurization↓ ↓

Proportionate mixing in milk storage Tank↓

Pasteurized standardized milk↓ ↓ ↓ ↓ ↓

F60 powder L& T Amul-2 Road tanker Rail tanker

C. AMUL-3 MILK DISPATCH1. Milk Processed at AMUL – 3 is sent to 5 different sections as indicated below.

AMUL- 2 for Pouch PackagingEg. AMUL Gold etc.

Mumbai Dairy , Pune Dairy & Kolkata Dairy Inter Dairy Transfer :Valsad Dairy, Baroda Dairy, Rajkot Dairy Finally F60 powder plant, L& T plant, Butter Section, Ghee Section,

Flavored Milk Section2. Transfer to Mumbai Dairy , Pune Dairy & Kolkata Dairy & Inter Dairy Transfer to

Valsad Dairy, Baroda Dairy, Rajkot Dairy is controlled by Control Office.3. Transfer to Mumbai Dairy , Pune Dairy & Kolkata Dairy should be under

inspection of Commercial Department

AMUL – 2 PROCESS AND MILK POUCH

Pouch packing section deals with packing of milk into pouches. There are three

packing machines. Each machine consists of two identical heads for packing and each

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head draws heat sealable polyethylene sheet from a separate roll, which is fed with

milk to be packed from the overhead tank by gravity.

The material moved continuously downwards in a strip, the film is folded

longitudinally. First vertical sealing occurs, as continuous cylinder moves downwards

transverse heat seals are made by jaws, which have the effect of closing the bottom of

pouch, so that measure volume of milk is filled into the space above a seal.

D. AMUL – 2 MILK RECEIPT PROCESS1. At RMRD AMUL 2 milk is received in cans. 2. Both Cow milk and buffalo milk is received in cans marked with separate colors.3. Milk is received in two shifts viz

Morning & Evening.4. There are two reception lines.5. Cans are checked for sour or curdled milk.6. Milk is added to weighting tank .7. Empty cans are moved to the washer.8. Samples are collected for Fat & SNF calculations.

E. AMUL – 2 PROCESS

Tankers Bring Cans from variousSocieties via predetermined routes to AMUL-2

↓Cans containing Cow & Buffalo Milk

Separately UnloadedAdded On conveyor belt

↓Physical Inspection

(For sour or curdled milk)↓

Milk added to dump tank↓

Filtration↓

Chilling↓

Pasteurization(80 C approx)

↓

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Standardization↓

Pouch Packing Department

1. Milk is then sent to AMUL -3 for packing and stored in SILO tanks 2. Milk then can be used for variety of purposes.3. Milk at AMUL-2 is also used for producing butter milk which is also packed in Pouch

Packing Department

AMUL -2 MILK POUCH SALES PROCESS FLOWCHART

LOCAL PARTIES BOOK MILK ORDERS AT AMUL-2↓

DAILY REGISTER IS MAINTAINED FOR THE SAME↓

PARTIES MENTION THE QUANTITY REQUIRED AND TIME OF RECEIPT↓

COUPLE OF SHIFTS PER DAY (MORNING & EVENING)↓

PARTIES HOLD THEIR ACCOUNTS AT KDCMPUL↓

PAYMENT IS MADE IN RESP ACCOUNTS↓

TANKERS ARRIVES AT SCHEDULED TIME↓

AMUL-2 EMPLOYEE VERIFIES FOR PAYMENT IN SYSTEM↓

IF PAYMENT RECEIVED↓

VEHICLE IS CHECKED FOR HYGEINE↓

IF SATISFACTORY↓

MILK POUCHES ARE LOADED

F. AMUL-2 MILK DISPATCH -- MILK POUCHMilk is received from AMUL – 3 for packing. Milk Pouch packing department has 3 machines.1. Milk 500 ml & 1000 ml2. Butter milk 500 ml

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3. As per the process explained above milk is dispatched daily in local market as well as other dairies .

4. All transactions are under inspection of Commercial department and Accounts department.

BUTTER SECTION

In the plant, there is a machine called separator vessel, which counts the fat of

the milk and separates the excess fat from the milk. This excess fat is used to

manufacture butter. Butter is manufactured from the fresh cream of the milk. The raw

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milk is weighed and poured into cream of the milk separated. Pure fat of cream gets

separated from the milk then colored salt is added in them to make butter. The

processing of butter takes 7 minutes.

A. BUTTER MANUFACTURING PROCESS

AMUL -3 Pasteurized Milk – Milk Cream & AMUL-2 Milk Cream Pumped↓

Butter cream/Raw cream↓

Pasteurizer (Heated to 90 +/- 3 deg.c) ↓

Cooling (To 10 deg.c)↓

Ageing (Moved in pipes for 20 hours)↓

Cream Balance tank↓

Plate Heat exchanger for temperature adjustment↓

Churning

Butter Grains Butter Milk (40 000 Capacity)↓ ↓

Washed with Butter Milk Cooled in Chiller↓ ↓

Butter milk Silo (Stored)Unsalted Butter (white butter) Salting↓ ↓Used for ghee manufacturing Grinding

↓Brine& Color addition

↓Butter blender

↓Butter silo

↓Packing lines

↓↓ ↓ ↓

10 gm chip let 8 gm blister pack 100 gm(refill pack) 500 gm(refill pack)

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B. BUTTER DISPATCH PROCESS

1. Samples are sent to QA department.

2. Goods are transported to FPS godowns.

3. Goods are counted on basis of a Batch Number printed on them.

4. Goods on clearance from QA department can be released by FPS.

5. Goods are released in FIFO manner.

STERILIZED FLAVOURED MILK

Milk is the product which is used in the daily life. Now-a-days the new

generation wants the milk in various flavors. Due to that the plant starts the flavored

milk process

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Flavored milk section generates milk in several flavors in 200 ml glass bottles and cans. Shelf life of milk is increased from two days to (120 – 180) days.

A. FLAVORED MILK MANUFACTURING PROCESS

Pasteurized Milk (Reqd Specification) + SMP+ Sugar + TSP(Tri sodium phosphate)↓

Dissolve sugar completely↓

Heat the Milk mix↓

Homogenise the Milk mix ↓

Chill to less than 5deg.c↓

Take care to prevent the development of acidity↓

Storage tank ↓

Color and flavor Added↓

Filtration

Automatic washing filling & corking Glass bottle↓

Placing filled bottles in metal crates↓

Sterilise↓

Cooling by fans in cooling rooms↓

Holding for 5 days at ambient temperature to watch for quality defects such as curdling leakage and discoloration

↓Labeling & wrapping with hot glue machine

NOTE : The Process is slightly different for chocolate flavored milk and coffee.

B. FLAVORED MILK DISPATCH PROCESS

1. Samples are sent to QA department.

2. Goods are transported to FPS godowns.

3. Goods are counted on basis of a Batch Number printed on them.

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4. Goods on clearance from QA department can be released by FPS.

5. Goods are released in FIFO manner.

GHEE SECTION

Sour milk is used for the production of ghee. This milk is sent to the cream machine for

collecting cream. Cream is converted into butter and butter is heated to make ghee. Ghee is

then packed in tins or plastic bags.

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A. FLOW CHART FOR GHEE MANUFACTURING

Pasteurized white butter Curdled Milk↓ ↓

Churning ↓ ↓

Washing↓ ↓

Butter↓ ↓

↓Melting vat (temp-110 deg c)

↓Serum portion ghee residue Settling tank↓ ↓Serum tank Ghee Vessel↓ ↓Ghee Heated at 115 deg.C for 45 mins

↓Filteration

↓Clarification (60-65 deg.c)

↓Settling storage tank

↓Balance tank Sent to QC lab for testing

↓Packing Section ( 40-45 deg.C)

↓

Pouch Packing Tin packing(200ml , 500 ml, 1000 ml) (I lit ,5 lit, 15 kg)

B. GHEE DISPATCH PROCESS

Process is same as flavored milk or butter.

STORES (FPS – FINISHED PRODUCT STORES)

-Mr. A K THAKUR

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The main function of this department is to store the finished product and dispatch the same duely on the basis of the DIL.

FINISHED PRODUCT STORES PROCESS FLOWCHART

GCMMF↓DIL

DESPATCH INFORMATIONLETTER

↓FPS /TRANSPORTERS/COMMERCIAL DEPARTMENT

↓TRANSPORTER HAS TO PICK UP THE FINISHED PRODUCTS

↓FPS EMPLOYEE RECEIVES DIL FROM TRANSPORTER

↓AVAILABLITY OF GOODS IS CHECKED

IN STORES↓

QUALITY CLEARANCE IS VERIFIED↓

INVOICE IS CREATED↓

VEHICLE IS QUALITY TESTED DISAPPROVED SENT BACK(TEMPERATURE HYGIENE ETC)

↓APPROVED

↓LOADED WITH RESP GOODS

↓GATE PASS & INVOICE HANDED OVER

↓APPROVED BY COMMERCIAL DEPT

↓TRANSPORTED TO GCMMF GODOWNS /OTHER AMUL DAIRIES

PROCESS DESCRIPTION

1. As per production planning GCMMF decides the locations/depots where goods are to be

transported to.

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2. According DIL Dispatch Information Letter is prepared and handed over to Transporter,

Commercial department & Dispatch department.

3. On the mentioned date the transporter arrives at the stores with their copy of DIL

4. On verifying the DIL, FPS Employee verifies weather the stock has been produced and

available in the respective stores and weather the available stock has been cleared by QA

5. Simultaneously the transporters vehicle is verified for hygiene, temperature and other

specifications.

6. If the vehicle is approved, and if quality tested stock is available Invoice & Gate Pass are

created and the goods are released.

7. These goods are priced as per COMMERCIAL DEPARTEMENT.

OTHER IMPORTANT FUNCTIONS

The brief function of stores can be summarized as under:-

1. Materials Receipts. [JIT METHOD]

2. Materials Issue. [FIFO METHOD]

3. Physical verification of Stocks. [Quarterly/Annually]

4. Data entry of Receipts and Issues. [ERP Systems]

5. Preparation of various reports like Stock Statement, Ledger, and consumption Report etc.

6. Maintaining various registers like Inward Register, Rejection Register etc.

7. Coordination between Purchase and Commercial Department for smooth flow of material

8. Goods are also released for Inter Dairy Transfer, Defense Sales & Local Sales.

9. Inter Dairy transfer includes releases to

Kolkata ( SMP , WMP , Butter ASP)

Pune (Butter)

Mogar (SMP , White Butter)

Kanjri (FSP)

Process remains same. DIL is released by Commercial Department

NOTE

A. Tankers and lorries for Butter and Milk are insulated.

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B. Temperature may increase maximum by about 2-3DEG C during transportation

C. Goods are marked by Batch Number which includes day of year & shift of that day.

D. To speed up the loading operations goods are loaded with the help of CONVER directly

from the stores into the vehicle.

E. Goods are accurately counted before being loaded into the truck.

F. Material return:- Once material issued to user department and due to some valid reason,

cannot be used for a long time then the material is returned to stores department on an

authorized Material Return Note (MRN). Stores department takes back the material and

makes a data entry in the system and the stock get increased by the MRN quantity.

G. Inter store / Unit transfer:- Other than the material user department, if one Store / unit

is in need of any material, it send a requisite to another store / unit. And if the Store

department has the material, it issues the physical material and transfers it through the

system also.

H. Material issue other then the dairy:-. If material is issued on sale bases to another

dairy / party, it is issued by DC and subsequent debit note is raised by account section. In

case material is issued on loan basIs, it is issued by returnable gate pass and DC. And data

entry is made in loan register.

I. Material rejection:- Material rejection should be of two types: On Line Material

Rejection and Material Rejection by QA. In both the cases store department inform the

purchase section about the rejection of the goods to inform the party. Once the material

gets rejected, rejection label get hanged on that lot and that should not consider in the

stock.

STORES INVENTORY

-Mr. A K THAKUR

INVENTORY NATURE OF INVENTORY

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OBJECTIVES OF INVENTORY MANAGEMENT BENEFITS OF INVENTORY MANAGEMENT INVENTORY CYCLE AMUL STORE DEPARTMENT INVENTORY MANAGEMENT

INTRODUCTION:-

Inventory generally refers to the stockpile of the products a firm is offering

for sale and the components that make up the product. In this sense inventory

management would refer to the management of current assets and other materials

inside the organization. Inventory management is very necessary for the firm because if

the firm has lesser investment in inventory, this would lead to unavailability of materials

when required which would ultimately lead to interruption in production process.

Similarly if the firm has higher investment in inventory this would lead to unnecessary

locking up of funds in inventory, thus reducing the working capital. Hence, the inventory

should be properly managed in every organization.

NATURE OF INVENTORY:-

Raw Materials: These are goods, which have not yet been committed to production in a

manufacturing firm. They may consist of basic raw materials.

WIP: This includes those materials, which have been committed to production process

but have not yet been completed.

Finished Goods: These are completed products awaiting sale. They are the final output

of the production process in a manufacturing firm.

Supplies: These materials are of low value and they do not enter the production process

directly.

OBJECTIVES OF INVENTORY MANAGEMENT:-

The main aim of inventory management should be to avoid excessive and inadequate

levels of inventories and to maintain sufficient inventory for the smooth production and sales

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operations. Efforts should be made to place an order at the right time with the right source to

acquire the right quantity at the right price and quantity.

An effective inventory management should ensure all of the following

A continuous supply of raw materials to facilitate uninterrupted production

Maintain sufficient stock of raw materials in period short supply and anticipate price

changes

Maintain sufficient finished goods inventory for smooth sales operation and efficient

customer service

Minimize the carrying cost and time

Control investment in inventories and keep it at an optimum level

Enable the company to obtain quantity discounts through large scale buying of materials

Help in maintaining a continuous production for seasonal goods

Minimizes inventory on hand and ensures that excess stock is not kept

Help in minimizing wastage as well as losses

Reduce the risk of deterioration of goods kept in the inventory

Simplify the purchasing activity and make it more efficient

Minimize losses faced by the firm due to price decline

Make most of the storage capacity available

BENEFITS OF INVENTORY MANAGEMENT:-

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The following are some of the benefits, which we can be obtained through proper

management of inventories:

Efficient & Economical Production

Protection against too little or excessive stock

Protection of stock

Lesser wastage

Avoiding loss of sales & customer satisfaction

Optimum use of finance

Efficient stock taking

INVENTORY CYCLE:-

INFORMATION ABOUT AMUL STORE DEPARTMENT:-

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At KDCMPUL, Anand, store department has been functioning in order to cater day to day

material transaction need for the union and its effective management.

The store department can further be classified as:-

General : It includes Packaging and ingredients materials.

Engineering : It includes Mechanical spares, Electrical goods, Lubricants and fuel.

Miscellaneous : It includes Consumables, Capital Items, Dead stack items.

Scrap : It includes receipt and sale of scrap of different plants

INVENTORY MANAGEMENT:-

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Inventory generally refers to the stock of raw material, which have some economical value. In

this sense inventory management would refer to the management of current assets and other

materials inside the organization. Inventory management is very important for the firm because

if the firm has lesser investment in inventory, this would lead to unavailability of materials

when required. This would ultimately lead to interruption in production process. However, if

the firm has higher investment in inventory this would lead to unnecessary locking up of funds

in inventory, thus reducing the working capital. Hence the inventory should be managed

properly in every organization.

Inventory together with receivable and cash and bank balance constitute around 30% of

the total current assets.Effective control of all these factors can increase the profitability of the

organization.

At all the plants of AMUL and KAIRA DISTRICT CO-OPERATIVE SOCIETY inventory is

classified mainly in five heads.

Raw Milk Stock

Raw Materials: it is major input in the organization which is used in the production

activity. Its quantity will be determined by rate of consumption and the time

required getting the supplies.

Work in Progress: in this stage the stock are in between materials and finished goods

form. The quantum of work-in-progress depends upon the time taken in

manufacturing process.

Finished Goods: It means that goods are ready to consume . Its stock provide buffer

between production and market.

Scraps

Stock in Progress

Since the working is on a continuous basis, it is bound to have enough amount of

inventory in stock to ensure smoothness in production without any interruption. To ensure

timely availability of milk, AMUL brings milk every day from the 1073 villages surrounding the

Kaira district. To store the raw milk, AMUL has already provided chilling centers at the village

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co-operative unions. And to store the processed milk, AMUL has developed eight milk storing

towers, each having the capacity of storing 1.5 lakhs liters of milk. The processed milk is sold

out in the Kaira and Anand district and the remaining stock of milk is used to produce other

milk products. Thus inventory management is very sound at AMUL.

The prime objective of inventory management is

1) To minimize the possibility of disruption in the production schedule of a firm.

2) To keep down capital investment in inventory

Although it is essential to have necessary idea resources of the firm. Inventory

management therefore should strike a balance between too much inventories and to little

inventory. The efficient management and effective control of inventories help in achieving

better operation results and to eliminate duplication in ordering cost, and reduce investment in

working capital.

AMUL ANAND COMMERCIAL DEPARTMENT

-Mr. Anand Singh

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All activities related to sales and marketing are carried out by the commercial

department. Most of the AMUL products are sold through GCMMF. GCMMF works as a

media for selling AMUL products. Commercial department is a link between AMUL and

GCMMF. GCMMF is also the largest buyer of AMUL products. The second largest buyer

of AMUL products is the Indian Army. There is no intervention of federation while

dealing with the Army. Main products that are sold to the Indian Army are Ghee, White

Milk Powder, Butter, Cheese, and Nutramul. The byproducts are sold to Vadilal Ice-Cream.

AMUL also markets some products at small level by itself. AMUL sells milk and buttermilk

on its own. All transactions with the Indian Army are carried by Commercial Department.

COMMERCIAL DEPARTMENT PROCESS FLOWCHART

GCMMF / AMUL↓

PLANNED DISPATCH↓

PRODUCTION PLANNINGDONE ACCORDINGLY

↓COMMERCIAL DEPT DECIDES

PRODUCT PRICING/DISPATCH TIME / BEST ROUTE /MAX QUANTITY IN TRUCKS↓

TRANSPORTERS ON CONTRACT WITH GCMMF↓DIL

DESPATCH INFORMATIONLETTER

↓FPS /TRANSPORTERS/COMMERCIAL DEPARTMENT

↓TRANSPORTER HAS TO PICK UP THE FINISHED PRODUCTS

↓FPS EMPLOYEE RECEIVES DIL FROM TRANSPORTER

↓AVAILABLITY OF GOODS IS CHECKED IN STORES

↓QUALITY CLEARANCE IS VERIFIED

↓INVOICE IS CREATED

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↓VEHICLE IS QUALITY TESTED DISAPPROVED SENT BACK

(TEMPERATURE HYGIENE ETC)↓

APPROVED↓

LOADED WITH RESP GOODS↓

GATE PASS & INVOICE HANDED OVER↓

APPROVED BY COMMERCIAL DEPT↓

TRANSPORTED TO GCMMF GODOWNS↓

INVOICE SENT TO ACCOUNTS↓

PAYMENT RECEIVED FROM GCMMF BY ACCOUNTS DEPTPROCESS

1. PD is decided in PCM and Production Planning is done accordingly.

2. As per production planning GCMMF decides the locations/depots where goods are to be

transported to.

3. Accordingly Commercial department decides the logistics , the best route available , and

the goods to be sent in a particular truck and product price to be paid by vendor or federation

itself.

4. According DIL- Dispatch Information Letter is released to Transporter, Commercial

department & Dispatch department by federation.

5. On the mentioned data the transporter arrives at the stores with their copy of DIL

6. On verifying the DIL, FPS Employee verifies whether the stock has been produced and

available in the respective stores and whether the available stock has been cleared by QA

7. Simultaneously the transporters vehicle is verified for hygiene, temperature and other

specifications.

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8. If the vehicle is approved, and if quality tested stock is available Invoice & Gate Pass are

created and the goods are released.

9. These goods are approved by as Commercial department and transported to GCMMF

depots

10 . Invoice is handed over to the depots as well as handed to the Accounts.

11. Accordingly payment is received from Federation.

OTHER IMPORTANT FUNCTIONS

1. Goods are also released for Inter Dairy Transfer, Defense Sales & Local Sales.

2. Inter Dairy transfer includes releases to

Kolkata ( SMP , WMP , Butter ASP)

Pune (Butter)

Mogar (SMP , White Butter)

Kanjri (FSP)

3 . Mumbai Dairy , Pune Dairy , Kolkata Dairy are under KDCMPUL

4. Goods are internally transferred to these dairies and further sold to GCMMF.

5. All the transactions related to defense are handled by Commercial Department.

6. Some products are specially manufactured for defense use. PP for these goods is

done separately.

7. Transactions related to export of goods is handled separately.

8. Transactions with agencies like ISO are also handled by commercial department

9. Process remains same. DIL is released by Commercial Department

SOME OTHER DEPARTMENTS IN AMUL ,ANAND:

Administration:-

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The main work of administration department in any company is to appoint

right people at right time and then supervise them. In AMUL, there is a combined

administration and Human Resources Development department. The Administration

department also performs all activities related to human resources development.

Salary Account:-

This is a sub section of Accounts department. All accounting related to salaries

and wages, provident funds, pension insurance, gratuity etc. is done in this department.

Audit:-

There are two audit departments at AMUL . One is the internal audit department

and the other is the government audit department. As the name suggests government,

auditing is done by a certified government auditor. Internal audit work is given to an

outside accountancy firm. Pre-auditing and Post auditing of different vouchers are done

in this department.

MIS:-

It is a sub-section of the Accounts department. It is called MIS (Management

Information System). All the information systems that are required in different

departments are first developed in this department.

NOTE

Gate pass:-

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No material can be taken out of Factory premises without a properly authorized

Gate Pass. Stores /concerned department shall issue a Gate Pass either of following types:

a) Non Returnable Gate Pass: - This Gate Pass is to be issued when material is

permanently dispatched and not expected to be received back.

b) Returnable Gate Pass: -This Gate Pass is to be issued when the material is expected

to be received back after repairing, modifications etc.

Scrap handling:-

1) Each and every department is sending solid waste to the scrap yard, along with the note

describing the type and the quantity of the scrap, which is handled by the stores department.

2) These scrap is kept to the prefix area only. Here different cages are allocated to the different

type of scraps. Stores department is keeping records of all the receipts and sale of the scrap.

3) When the scrap is being received at the scrap yard, the scrap personnel check the quantity

and make receipt of the scrap. The stores department is responsible for the sale of scrap.

4) For the sale of scrap, annual contract is given by purchase section to different parties at a

fixed rate.

CONCLUSION

My heartfelt thanks to all employees of KDCMPUL for devoting their valuable time , for helping

me in understanding Production Process from Planning to Finished Product dispatch

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BIBLIOGRAPHY:-

Stores Handbook www.amul.com

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