INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

OPERATION MANAGEMENT KHAJURAO DAIRY- HAMIDIA ROAD

SUBMITTED TOPROF.HERSH SHARMA

SUBMITTED BYJYOTI SADHWANI MEGHA RAGHUWANSHI ROHIT RAJPUT

NATURE OF PRODUCTION Products : 1. MILK

Class of Milk
% Fat

Minimum
% SNF

Cow Milk Standardized Milk Tonned Milk Skimmed Milk Full cremed Milk Buffalo Milk

3.5 4.5 3.0 Less than 0.1 6 6

8.5 8.5 8.5 8.7 9.0 9

Cream Whipped cream Table cream Ghee Paneer Dahi Flavored milk Lassi Butter milk Pedha

Turnover15 lakhs a month (approx) Yearly 180 lakhs.

Capacity installed:
1. Khajurao has the capacity for processing and packaging 15,000 liters of milk per day (LPD). Khajurao is currently engaged in processing and packaging of milk on Job- work basis for five different variants (Full cream, Standard, Toned, & Skim Milk). Khajurao is presently processing & packing approximately 10,000 liters of

poly packed milk for the outlets in Bhopal. The Plant is running in two shifts and the milk supplies from Khajurao are dispatched in the evening and morning to the Bhopal market thereby utilizing the plant to its full capacity.

2. Ghee manufacture : Khajurao manufactures Ghee from the surplus fat available from standardization of milk and its production is not taken as per demand. average production/sale of ghee is 7-8 metric tons per month which is through its own parlors and through local distributor appointed by organization. Capacity utilized is 6 metric tons.

the The sold the

3. Paneer , Dahi , Pedha , Lassi , Flavored milk , Butter milk There is as such no production on the basis of demand or capacity installed instead it depends on the amount of left over milk after the sale mostly. However at times of summers flavored milk and butter milk production capacity is from 100 bottles 0f 12 ml.

Enhancement of Capacity:
1. As such there is no extra machine or equipment they use in order to increase the capacity but at peak times like in summer employees are hired. 2. Storage capacity has to be increased by working on refrigeration system.

Trends:
Demand trend is highest in morning than evening. Demand is highest in summers than in evenings for other products like flavored milk.

UTILITIES:

POWER SOURCE : MPEB BACK UP: generator usage (only for refrigeration and lighting) other units are kept
on hold till the power is available. 1Kwh is backup power they have .

PER UNIT CONSUMPTION: In terms of electricity consumption per dairy cow

milked, the figures varied from 3.8 Kwh/cow/week to 6.7 Kwh/cow/week.

 POWER SUPPLY ISSUES:

Since cooling is the largest user of electricity (32%) followed by water heating (27%), vacuum pumps (19%) and lighting (18%). Other items such as wash pumps, milk pumps, feed augers and air compressors make up the balance (5%). Huge amount of electricity is used for refrigeration. Even if small numbers of packets are made in a day, the refrigeration system has to work. Cost of electricity on each packet cannot be determined.

PRODUCTION SYSTEM :
MILK: Milk is procured from places near to Hoshangabad and delivered to their diary at Hamidia Road and PASTERUSITAION: Heating each & every particle of milk to at-least 63 C for 30 minutes, or 72 C for 15 seconds in approved and properly operated equipment. After pasteurization the milk is gradually cooled to 5 C or below. HOMOGENIZATION: Forcing the milk through a homogenizer with the object of sub dividing the fats present in it Milk passed through homogenization is toned milk; skimmed milk is also made through process but temperature and blades changes.

GHEE:

PANEER :

DAHI :

LAYOUT TYPE AND ADVANTAGE: They follow a process layout because milk has to pass through various stages and through various processes. At each unit there are around 10 people excluding refrigeration unit with only 5 people. The process is all automated and manpower is required at different stages to check the milk is processed correctly or not. Advantage of such a layout is that process is done step by step and a product like milk cannot be carried to units therefore all units are connected by vacuum tubes and tap if milk from that unit has to be taken out.

Location criteria: More milk parlours at old Bhopal side because of more demand. As such location was chosen out of criteria or benefit.

PLANNING PRODUCTION PLAN: A minimum of 5000 packets is produced per day.

The plan depends upon the number of packets that are refrigerated and can be sold.

The executive manager first decides the demand of number of packets required by getting the information from sub manager at refrigeration.

The manager then sends the information to unit manager at each unit about the production. Therefore planning is done on daily basis.

SCHEDULING OF WORK: There are two shifts of employees one at morning at one at night shift. More number of employees at morning schedule than at night schedule.

Quality orientation: AGMARK approved. Testing is done through tasting every set of production. ISO 9001 approved.

Maintenance
The primary objective of the planned maintenance system is to prevent breakdown. There is a effective maintenance system so as to maintain output at desired level. The spacing of equipment is done in such a way that there is a space for replacement of

components as per the future operations. The building is designed in such a way that any equipment or item can be removed in future. There are different procedures which are followed so as to ensure that there is no failure during the operations, the procedures are mentioned below Regular inspection and servicing Components such as joint ring and rubber seals are replaced routinely according to predetermine schedule. There is a store control which understands and monitors the requirement of spare parts in advance so that there is no gap in the operations. However with such a system there is always a change of failure and breakdown. The most basic reasons for breakdown are Faulty components Incorrect Assembly Failure to observe correct operating procedure When breakdown occur the product line has to be stopped and there is a loss of output. There is immediate repair facility which looks after it and the issues are rectified within hours so that the days job doesnt get hampered.

Training
For promoting the employees they identify the abilities of the workers and then provide training acc to the job assigned to them. Majority of the workers are older and in case of new machine vendor provide training to the workers for easy handling. Identification of livestock experience of the workers and provide training accordingly. Training is provided to sales and marketing team for dealing properly with wholesaler and retailer. The Performance appraisal process is an especially good way of identifying areas for further training that will be of benefit to the individual, relevant to their position, and match the needs of the farm business in the coming months and in the future. Designed and conducted Assessment centre for Senior and middle level managers to identify the gaps at organizational level and make career and development plan and also feed the input for appraisal and promotions.

Development & Machinery Arrangements

There is a consistent development in the Technical aspect of the company as company understands the requirement for technical advances but most of the equipments and machinery are old and the frequency of change in equipments are less. Most of the companys technical processes are manually driven and are the reliability on automation is less. There are different areas where technology is used these are mentioned below

Liquid Milk Processing Plant which includes processing of raw milk, soft cheese, butter. Pasteurizer Machine which is used in manufacturing dairy products. Earlier company used to use semi automatic machine which they have upgraded to fully automatic type. This has helped to reduce the operation time. Storage tanks are installed which ensures that there is no contamination and there is a sufficient space for storage of milk. Vendors supplying equipments to the company are Max Care Marketing, New Delhi.

Capital

Arrangement of capital is done by Bank Loans the total amount of current loan was denied by the company. The loan is taken in order to purchase new equipments and other development work. At times capital is received by the owners if required. There are other investors who invest in the company indirectly. Funds received from various dairy development organizations. The profit earned by the company is utilized for the operational purpose which includes maintenance, salary, and purchasing raw material. The other details regarding the capital were ignored by the company.

Membership
Indian Dairy Association Confederation Of Indian Industries MP Corporative Milk Society There are following advantages attached with the membership these are --

Learning o Global trends that affect your business o Industry best practices on competitiveness o Improve internal efficiency and productivity o Get an insight into Government policies and their impact on businesses Networking o Networking opportunities with Indian and Global Corporate Majors. o Platform to enhance the business and develop newer markets.

Sharing o Sharing best practices with other members o Help enhance competitiveness of the Industry

Stores & Procurement

Vendors The vendors for milk are local farmers from Hoshangabad (M.P) and other regional areas situated near Bhopal. The Vendor for Poly Bags is Prakash Sons Mandideep. Areas Hoshangabad Mandideep

Inventory Management Daily fresh inventory of milk is required and the quantity to be purchased is decided based on historical data and season. The one day old milk inventory is used for manufacturing other products which do not require fresh milk. Poly Bags are purchased in advance on monthly basis. The other supplies include bottles and plastic cans which are also purchased in advance for the requirement of 1 month.

Union Issues
There is no union in the company and hence there are no union issues as such and if there is any conflict the issues are directly brought in notice to the comopany and a solution is found and executed.

Legal Issues

Licenses DAIRY FARM i.e. producing milk from cows/buffalo & selling it in any manner-raw milk or value added products is Taxable like any other income. However the dairy product comes under Income tax if the income exceeds above 150000 INR. There is a tax on selling the finished product which includes the VAT and other taxes.

Taxes There is no license for setting up a dairy plant in India. However for selling and distribution there are different licenses which are required from Municipal Corporation and the government. The details of the licenses was not available with the information provider.