Amul

Anand Milk United LimitedPRESENTORS• Anurag B.• Aseem D.• Avril R.• Bhavesh B.• Chayya S.

HISTORY

• There was exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat) and Polson Dairy .

• Other problems faced by dairy farmers in Gujrat

• The brand Amul was formally registered on December 14th, 1946

INTRODUCTION

The largest food brand in India and world's Largest Pouched Milk Brand ‘Amul’ is a brand name managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

This name has its origin in the Sanskrit word "Amoolya," (meaning Priceless) and was actually suggested by an employee of Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

Its 21st in world for largest milk production.

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India and is the apex organization of the Dairy Cooperatives of Gujarat.

With a turnover of INR 67.11 billion GCMMF has created an economic network that links .

Anand Milk Union Limited popularly known as Amul Dairy is a US $ 500 million turnover institution. It is a institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members. Formed in the year 1946 Amul is the leading food brand in India.

CHAIRMANDr. Verghese Kurien

R.S SODHICEO AND MD

Plant Layout

Facility LayoutLayout refers to the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system.

Layout decisions are important for three basic reasons:

1. require substantial investments of money and effort;

2. involve long-term commitments, which makes mistakes difficult to overcome; and

3. have a significant impact on the cost and efficiency of operations

Factors affecting Plant Layout

1. Plant location and building

2. Nature of Product

3. Type of Industry

4. Plant Environment

5. Spatial Requirements

6. Repairs and Maintenance

7. Balance

8. Management Policy

9. Human Needs

10.Types of machinery and

equipment

The basic objective of layout design is to facilitate a smooth flow of work, material, and information through the system. Supporting objectives generally involve the following:

To facilitate attainment of product or service quality.To use workers and space efficiently.To avoid bottlenecks.To minimize material handling costs.To eliminate unnecessary movements of workers or materials.To minimize production time or customer service time.To design for safety.

Plant Layout : Types

The production process normally determines the type of plant layout to be applied to the facility:• Fixed position plant layout

Product stays and resources move to it. • Product oriented plant layout

Machinery and Materials are placed following the product path.

• Process oriented plant layout (Functional Layout).

Machinery is placed according to what they do and materials go to them.

• Combined LayoutCombine aspects of both process and product layouts

Product oriented plant layout

This type of plant layout is useful when the production process is organized in a continuous or repetitive way.

Continuous flow : The correct operations flow is reached through the layout design and the equipment and machinery specifications.

Repetitive flow (assembly line): The correct operations flow will be based in a line balancing exercise, in order to avoid problems generated by bottle necks.

The plant layout will be based in allocating a machine as close as possible

to the next one in line, in the correct sequence to manufacture the product.

Product Layouts

• Product layouts are used to achieve a smooth and rapid flow of large volumes of goods or customers through a system.

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Benefits A high rate of output Low unit cost due to high volume Labor specialization Low material-handling cost per unit A high utilization of labor and equipment The establishment of routing and

scheduling in the initial design of the system

Fairly routine accounting, purchasing, and inventory control

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Essentials of Ideal Layout1. Principle of minimum movement2. Principle of flow3. Principle of space4. Principle of safety5. Principle of flexibility6. Principle of interdependence7. Principle of overall integration8. Principle of minimum investment

Participation in world exports (2012*) Countries % New Zealand

55

EU - 27 21 Argentina 13 Australia 7.3 Philippines 1.1 Total of main exporters

97.4

Participation in world imports (2012*) Countries % China 44 Algeria 24 Indonesia 6.7 Brazil 6 Russia 5.3 Total of main importers

86

Milk represents 17.5 % of global beverage consumption

Sales Turnover Rs (million) US $ (in million)2001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 13252008-09 67113 15042009-10 80053 17002010-11 97742 21722011-12 116680 25002012-13 137350 2540

SALES TURNOVER

SAFETY STOCK

•With Temperature – 10 Days.•Room Temperature – 12 hrs.

Raw milk

Condensed->Ghee, butter, cream

Packaged Milk->Ice cream and

beverages

Dried Milk->Skimmed milk

powder

Pasteurization

Amul’s Supply chain is one of the most complicated in the world

Success depends on

• High collection rate of milk

• Required increasing membership with more village societies

• Better Cattle management- Better milk yield

• Ensure cost to farmers and high quality to customer at low prices

Third Party Service Providers

• Unions' core activity -milk processing and the production of dairy products.

• Marketing efforts , brand development - By GCMMF

• Logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services –By Third Parties

Co-ordination

• Large number of organisations and entities in the supply chain

• GCMMF and the unions play a major role in achieving control

• Interlocking control - The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies

• The federation handles the distribution of end products and coordination with retailers and the dealers.

• The unions coordinate the supply side activities.

The Turnaround

•Farmer’s realization that they had to market milk themselves to earn better is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul)

•An assured market proved a great incentive to the milk producers of the district. By the end of 1948, more than 400 farmers joined in more village societies, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day.

• Rs 180 crore project Virar Dairy

• The dairy has already set up four village level co-operative societies with membership of 500 farmers and expanding.

• The commissioning of Virar Dairy with installed capacity of 10 lakh litre of milk processing per day.

• Newly set up dairy plant on 11 acre of land will cater to the consumers of Mumbai city and its suburbs with fresh milk and milk products.

AMUL DAIRY IN MAHARASHTRA

AMUL’S SUPPLY CHAIN

AMUL THREE-TIER MODEL

MILK UNION AT DISTRICT LEVEL

MILK FEDERATION AT STATE LEVEL

DAIRY COOPERATIVE SOCIETY AT VILLAGE LEVEL

THE THREE-TIER “AMUL MODEL”

AMUL’S OVERVIEW

PRODUCTION PLANT PROCESSES

Raw milk reception area: • This area receives raw milk from dairy farms.

• Raw milk is transported in tankers with capacity of 25,000 liters.

• There are six reception lines, where each line pumps milk to 40,000 liters per hour, toward one of the four reception silos, with capacity of 150,000 liters each.

• In the pumping process, the milk passes through deareators, filters and coolers. The capacity of these equipment is 40,000 liters per hour.

Fluid milk processing area

• The processing area has two silos with a capacity of 100,000 liters each one, ten silos with a capacity of 150,000 liters each one and one silo with a capacity of 30,000 liters. The last one is only used to process cream.

• Before the milk is pumped to process silos, it passes for a clarification process. There are four clarifiers, two of them have a capacity of 25,000 liters per hour, and the other two have a capacity of 30,000 liters per hour.

FLOW OF RAW MATERIAL

District Cooperative Milk Producer's Union (Dugdh Sangh) (RAW MATERIAL) The main functions are: • Procurement of milk from the village milking societies of the

district.

• Arranging transportation of raw milk from the VDCS to the Milk Union.

• Providing input services to the producers like veterinary care, artificial insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales,to members.

FLOW OF INVENTORY

LOGISTICS - WAREHOUSE MANAGEMENT

• Can’t be stored for longer duration

• In following carter milk are stored in warehouse.

MATERIAL MANAGEMENT

POKA YOKE

5’S MODEL OF AMUL DAIRY

Japanese Term

English Equivalent Meaning in Japanese Context

Seiri Tidiness Throw away all rubbish and unrelated materials in the workplace

Seiton Orderliness Set everything in proper place for quick retrieval and storage

Seiso Cleanliness Clean the workplace; everyone should be a janitor

Seiketsu Standardization

Standardize the way of maintaining cleanliness

Shitsuke Discipline Practice 'Five S' daily - make it a way of life; this also means 'commitment'

Thank You

Questions????