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A REPORT ON

"PRODUCTION AND OPERATION MANAGEMENT OF AMUL"


PRODUCTIONS AND OPERATION MANAGEMENT
MBA SEMESTER-2
BLOCK -4
Module Leader
Prof. Richa Agarwal
Presented By:CHARU JAGWANI
HARSH PAREKH

www.aurouniversity.edu.in

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ACKNOWLEDGEMENT

I express my appreciation to Prof. Richa Agarwal for her master direction,


consolation and recommendation all through the planning of this work. She
has been a mainstay of help and motivated my all through this study,
without her this would not have been conceivable.
I am appreciative to the showing personnel of School of Management &
Entrepreneurship for their significant recommendations and direction in
regards to my work. I have additionally gotten gigantic measure of
assistance from our companion's knowledge and outside the establishment.
CHARU JAGWANI
HARSH PAREKH

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EXECUTIVE SUMMARY

AMUL is the cooperative sector. It is the institution of the farmer, for the farmer and
from the farmer. The AMUL gives pleasure to the farmers to change the own price,
which was not possible in the earlier years. This union was born on the 14th December
1946. The union provides facilities to its members like more return, satisfactory price,
insemination, first aid, group insurance, cattle food at concessional price etc. AMUL
dairy have five main departments like finance, personal, commercial, milk procurement
and production. The finance department does the clerical work and takes care of inflow
and outflow of the cash. The other work is annual audit. Personal department work on
recruitment, transfer dismissal, performance appraisal, demotion, etc. The commercial
department conducts all promotional activities. The marketing work is handling by
GCMMF. The production department produces the product with the help of latest
technologies. The production is done according to ISO requirement. The milk
procurement department gets the milk everyday two times from more than 100 routes
and more than 1000 societies. For the maintenance of the quality of the milk there are
167 chilling units.
This report contains how AMUL born, grow in all dimensions, and its operating process
from the collection of milk to the customers.

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INDEX

INTRODUCTION5
IMPORTANCE.7
AMUL THREE TIER MODEL...8
PRODUCTION FACILITIES AT AMUL.10
PRODUCTION PROCESS.12
EUIPMENTS FOR PRODUCTION PROCESS14
SUPPLY CHAIN FACILITIES..15
DISTRIBUTION CHANNEL..16
CONCLUSION.17
REFERENCE18

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INTRODUCTION OF AMUL
HISTORY OF AMUL The Kaira District Co-operative Milk Producers' Union Ltd. was
registered on 1 December 1946 as a response to the exploitation of marginal milk producers
by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of
Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver
milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were
arbitrarily determined. Moreover, the government at that time had given monopoly rights to
Polson to collect milk from Anand and supply it to Bombay city. Angered by the unfair and
manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under
the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a
cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did
the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946,
the milk farmers of the area went on a strike which led to the setting up of the cooperative to
collect and process milk. Milk collection was also decentralized, as most producers were
marginal farmers who could deliver at most 12 litres of milk per day. Cooperatives were
formed for each village too. The Cooperative was further developed and managed by
Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk
powder from buffalo milk for the first time anywhere in the world and a little later, along with
Kurien's help, making it on a commercial scale, led to the first modern dairy of the
Cooperative at Anand, which would successfully compete against established players in the
market. The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other
districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to
combine forces and expand the market while saving on advertising and avoid competing
against each other, the GCMMF, an apex marketing body of these district cooperatives was
set up in 1973. The Kaira Union which had the brand name of Amul with it since 1955
transferred it to GCMMF.

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AMUL FACT
FILE Type: Cooperative
Headquarter: Anand, Gujarat, India.
Key people: Chairmen, GCMMF- P G BHATOL
Industry: Dairy Products
Revenue: US$ 2.5 billion / RS. 11668 Crores (2011-2012)
Employees: 3.18 Million milk suppliers farmers Website: www.amul.com
CRISIL rating for Amul: AAA/Stable/P1+ to the various bank facilities.

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AMUL LOGO AND ITS IMPORTANCE

Symbol of AMUL is ring of four hands, which are coordinated each other. The actual
meaning of this symbol is coordination of the hand of different people by whom this union is
now at top. The first hand is of farmer, second hand of processor, third hand of marketer and
fourth hand of customer. It is the joint efforts and productive team work that has enabled its
success.

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AMUL THREE TIER MODEL

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The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Cooperative Society at the village level affiliated to a Milk Union at the District level which
in turn is further federated into a Milk Federation at the State level. The above three-tier
Structure was set-up in order to delegate the various functions; milk collection is done at the
Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk &
Milk Products Marketing at the State Milk Federation. This helps in eliminating not only
internal competition but also ensuring that economies of scale are achieved. As the above
structure was first evolved at Amul in Gujarat and thereafter replicated all over the country
under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern
of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for
Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk
Production.

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PRODUCTION FACILITIES AT AMUL (ANAND)


ABOUT PRODUCTS AMUL means "priceless" in Sanskrit. The brand name "Amul," from
the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all
meaning "priceless", are found in several Indian languages. Amul products have been in use
in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. Today Amul is a symbol of many
things. Of high quality products sold at reasonable prices. Of the genesis of a vast cooperative
network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers'
organisation. And of a proven model for dairy development.
A. Bread Spread
AMUL BUTTER: Utterly Butterly Decision

AMUL LITE: Low fat, low Cholesterol Bread Spread


Delicious Table Margine: The Delicious way to eat healthy

B. Powder Milk
Amul spray infant milk food: Still, mother milk is best for baby.
Amul instant full cream milk powder: A dairy in your home
Sagar skimmed milk powder: This is especially useful for diet preparations or
for use by people on low calorie and high protein diet.
Sagar tea coffee whitener
Amulya dairy whitener: The Richest, Purest Dairy Whitener
C. fresh milk
Amul Gold Milk:

Amul Tazza Double Milk:


Amul Lite slim and trim milk: Amul fresh cream:
Amul cool chocolate milk
Amul cool flavoured botteled milk:
Amul cool flavoured Tetra pack:
Amul Shakti toned milk:
Amul masti spiced buttermilk: Amul introduces the Best Thirst Quenching Drink

D. Cheese
Amul cheese spreads: Tasty Cheese Spreads in 3 great flavours

Amul Emmental Cheese: The Great Swiss Cheese from Amul has a sweet dry flavour
and hazelnut aroma.
Amul Pizza Mozzarella Cheese: Pizza cheese...makes great tasting pizzas

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Guuda Cheese:

E. For cooking
Amul/Sagar Pure Ghee: Made from fresh cream. Has typical rich aroma and granular texture.
An ethnic product made by diaries with decades of experience.

Cooking Butter:
Amul Malai Paneer: Ready to cook Paneer to make your favourite recipes
Utterly Delicious Pizza:
Mithai Mate: Sweetened Condensed Milk - Free flowing and smooth texture. White
to creamy color with a pleasant taste.
Masti Dahi

F. Desserts

Amul Ice Creams Premium Ice Cream made in various varieties and flavours with
dry fruits and nuts.
Amul Shrikhand: A delicious treat, anytime
Amul Mithai Gulag Jamuns: Pure Khoya Gulag Jamuns...best served
piping hot.
Gulab Jamuns Mix:
Amul Chocolates: The perfect gift for someone you love
Amul Lassie:
Amul Basundi:

G. Health Drink:

Nutramul: Malted Milk Food made from malt extract has the highest protein content
among all the brown beverage powders sold in India.
Amul Shakti Health Food Drink: Available in Kesar-Almond and Chocolate flavours.

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PRODUCTION PROCESS
Amul dairy have a very long production process and a very effective department in this
process. There are 3 departments in this dairy they are listed as under:
MILK PROCESS

Amul milk is pasteurized milk.


Chilled milk is received from chilling centre from villages. In Amul dairy they
collect milk from 13,000 villages about 26 lakes litters of milk per day.
After collecting milk Amul dairy laboratory check the fat & SNF of the milk. After
collecting, Checking & Conducting the laboratory test the pasteurized machines for
pasteurization of milk. Here the milk is heated for 15 second. After that it is cooled at
4 degree Celsius.
Now in this milk necessity fat & SNF are added packed in pouches of 250ml, 500ml,
and 1ml. The packed are kept in the basket & each basket contains 20 Pouches.
After the milk pouches are taken to the cold storage with the capacity of holding
4500 with the temperature of 8 to 10 degree Celsius.

BUTTER PROCESS
Amul butter is made from Butter common salt, permitted natural color. Annatto capacity of
50,000 K.G per day. In that section there is a machine called continuously bath. It churns the
milk & separates butter milk. Then the second process starts. There the butter is made. Also,
the butter milk is considered as by product & not a waste. In the second process the butter is
processed by water & later only butter is left in the plastic tube. The yellow
Color is very pleasant. Amul butter is very delicious again here too not policy is followed. In
this section the room temperature in 20 Celsius but after packing the butter is manufactured at
8 Celsius. It is transferred through trolley. It is packed in different sizes of packets 100g.m,
200 gm., and 500g.m. 100 G.M. packets made 100 packets per merit. 500 G.M. packets made
35 packets per mint. There are special packing machine for this it is called a BLOCK
CUTTER MACHINES. After a packet is packed if falls into a box billed it is moved into the
trolley work is done 3 shifts.

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MILK POWDER PROCESS


Milk is boiled in vacuum so that it becomes thick. Then milk is condensed. Then it is taken
to dryer. Sour milk is taken away capacity of the milk powder plant is 130 litters. Then the
remaining moistures are taken away at temperatures of. Then milk powder is made. There is
no need for boils this powder. It automatically gets dissolved within 12 Second of mixing in
water. This powder is packed by machines. No human hands touch it. It is stored in a cool
place & sold under the name of AMULYA. In all there are 3 Plants which made milk in to
powder. These were further packed in air vacant packing in desired weight of 1 kg, 500 g &
25 k.g bags. Per mint made a 30 pouch of 500 g. In 1 box contains 12 pouches. Milk powder
marketing as an Amul Spray.

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EQUIPMENTS FOR PRODUCTION PROCESS

Raw milk buffer Tank -15000 lit Nos.-2


Cream buffer Tank-15000 lit Nos.-2
Balance tank for Pasteurizer-350 liters Nos.-3
Cream pasteurizer (PHE)-10000 liters no. Of plates-222 Nos.-3
Milk Pasteurizer (PHE)-30000 LPH No. Of plates-412 Nos.-2
Cream separator (Automatic self Desludging)-30000LPH No. Of discs- 265 No.-2
Milk clarifier (Automatic self Desludging)-30000LPH No. Of discs-156 Nos.-3
Raw milk silos -1.5 LAKH LITS Nos.-4 Insulation2 cms thick thermocol
Pasteurized milk Silos-1.5 LAKH LITS Nos.-4 Insulation is 2 cms thick thermocol
Silo Agitator Each silo has 2 horizontal inclined angled aditators
Raw milk chiller -30000LPH Nos.-3
CIP tanks *Water tank-8000 liters
*Acid tank-10000lits
*Lye tank-10000 liters Nos. Each 1 tank and their corresponding pumps
CIP tanks for Tanker cleaning Water tank-8000lits Lye-8000 liters Nos.- Each 1
tank and their corresponding pumps

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SUPPLY CHAIN FACILITATES THE PRODUCTION PROCESS

MILK COLLECTION CHANNEL


The success of each and every dairy industry is the getting the milk from the farmers and
making that milk in use as soon as possible before that milk get spoiled because the milk
is the perishable product. For the smooth running the business of dairy industry must
concentrate on the milk collection cycle. Amul dairy is very conscious about the milk
collection cycle because the base of the success of the Amul in milk collection cycle.

MILK PROCESSING CYCLE

Homogenization: 60% buffalo milk+40%cow milk


Pasteurization : centrifuge process
Adding Vitamin D
Packing Milk: kept at 1-20 C
Storing: 1-40 C

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DISTRIBUTION CHANNEL
Amul has a fast and efficient supply channel. The Amul dairy vans provide the products
to the retailers daily morning. It has a huge supply network.

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CONCLUSION

As to be concluded with the company AMUL is a company with good production and
operation management. As the AMUL uses the best operation and production process to run
the cooperative firm, it is clearly been conclude from the visit that the production and
operation management is a key component for the success of each and every industry.

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REFERENCES

www.amul.com
www.gcmmf.org
www.indiandairy.com
www.nddb.com

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