Project Management

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1. EXECUTIVE SUMMARY

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Arience Strategy is a management consulting Company with vision of achieving excellence with

convergence of various global standards and methodologies. As a part of its CSR activity

Arience Strategy has taken an initiate to help the rural cooperative societies by creating a project

management center of excellence. I was a part of this process and worked as project associate in

the process. Our team got support and insights into the different process of project management

by our Project manager. The project started with detail study of cooperative society and

cooperative movement in India from secondary data resources and then primary data resources

from RICM.. What are the challenges faced by them and how they define scope, manage time,

risk, quality of the project.We have used questionare and Discussion as method of collecting

information from the staff member of cooperative bank. As a project management associate our

team role was to analyze nine knowledge areas of project management in cooperative project and

apply standard and tools of project management in cooperative processes. We have used

different tools like Zachman Enterprse architecture, BPMN, WBS, Cause and Effect Diagram to

describe the processes and structure of the organization and to highlight different issues in it.

My study was study of scope management undertaken by cooperative. After that visit to the

Rythra seva sahakara sangha niyamith, singanayakanahalli,a cooperative bank near Yelahanaka

Bangalore. We have discussed and have a look at the operational and project activities carried

out in the cooperative bank. The bank give credit to farmers as agricultural loans and also

provide loan to start dairy farming and run small business. The bank is also distributing

agricultural input to farmer at subsized rate . The bank has achieved good recovery result of loan

and is self sufficient finacially to sponsor other activities and take take project by itself. The bank

has a loan recovery reate of 93% last year. This cooperative Bank is asuccessful one with all

facilities and resources. Rural farmer are not aware of project management standard and

processes and some society are not having professional support to help them to plan their

project in some some cooperative. The repayment of loan and project management process can

be enhanced with the support and application of project management standard. The successful

model of the cooperative bank at Singhanayakanahalli can be followed by other cooperative

society to make their society more efficient and productivity.

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2. INTRODUCTION

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As already known in industry, Management is an specialized subject, dealing with

methodologies of managing the strategies, program, projects, and operations through an

integrated Life Cycle starting from conceptualization, initiation, planning, execution,

monitoring & controlling to final closing.

Arience Strategies is a management consulting company with vision of achieving excellence

with convergence of various global standards and methodologies. With a team of professionals

with much experience and knowledge, Arience is providing consulting services, education &

training services, project management support and staffing services to diverse industry sectors.

At Arience the philosophy is to utilize globally accepted methodologies, tools & techniques for

providing value added services.

Cooperative societies are autonomous voluntary organization run by the members of the society

for their benefit. Cooperatives carried out many developmental activities, perform some routine

operation and take some projects. Some cooperatives projects are successful and some failed or

take more time to complete. It is because of the improper planning and utilization of resources.

Many of the cooperatives farmer in rural areas and the members are generally illiterate. Because

of this they are not aware of the management standards and concepts to follow while carrying out

any project. They dont have sufficient financial support to hire expert or professional from

outside.

Arience strategy has taken the initiative to help these poor farmer and the rural cooperatives by

helping them in undertaking project activities Arience wants to create a knowledge center to help

the rural cooperative societies to carry out projects by following Project Management standard,

tools and technique to enhance project success.

Visit to one of the cooperative Bank in karnataka was made to study how they take up projects

and what are the operation carried out in the bank. The cooperative society system in India is

having capability & capacity to resolve the issues generated by the process of globalization and

economic liberalization. The constant failure of the public and private sector has to make an

effect in the village areas is a matter of concern and therefore there is high expectation from the

cooperative sector. Application of global standard of project mangement in cooperative project

can increase the efficiency and effectiveness of the cooperative society.

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2.1 INDUSTRY OVERVIEW

MANGEMENT CONSULTING INDUSTRY:

The role of a management consultant is similar to that of a medical professional such that of

diagnosing the organizational illness and then providing appropriate remedies.

Strategic management consultancy firms, function more like Change agents, thereby assisting

the client company in various objectives like increasing profits, recovering from bankruptcy,

expansion plans, increasing efficiency and other decision-making processes.11 They primarily

look into: Strategy Finance HR IT Operations Marketing

After the fall of economy in 2009 the global management consultancy market still managed to

achieve a stumping recovery overall. The global market had total revenue of US$301.1billion in

2011 which represents a CAGR of about 3.6% between 2007 and 2011. European market was

able to increase with a Compounded Annual Growth Rate of 3.5% and the Asia-Pacific market

reduced by -0.1% in that period, to get into values of US$115.2 billion and US$33.3 billion

respectively. The performance of the management consultancy market is expected to rise to an

estimated CAGR of 6% from 2011-2016 and this brings revenue of US$402.3 billion by 2016.

Comparatively it is forecasted that European market will increase with CAGR of 5.9% while

Asia-Pacific will fall with CAGR of -0.1% to reach the value of US$154 billion and US$34

billion in 2016.

America accounts for 50.2% of global management consultancy market value and European

continent has the 38.2% share in the global arena.

In India demand for management consulting services is estimated to be $15,679.7 million. The

distribution of the potential industry earnings in India distributed across regions as follows:

Maharashtra has the largest market with $2,131.7 million or 13.60 percent, Uttar Pradesh has

$1,818.1 million or 11.60 percent and Gujarat with $1,290.7 million or 8.23. As a result we

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could say that if firms target these 3 regions, 33.43 percent of the latent demand can be met for

management consulting services in India

Some of major management consulting firms in India:

Tata Strategic Management Group:

Madras Consultancy Group

The Business Analysts Group

Arshiya International Ltd:

Noesis Strategic Consulting Services:

Ramms

Resonate Consulting Group

GEOGRAPHY REVENUE

Americas 151

Europe 115

Asia-Pacific 34

Middle East & Africa 1.59

TOTAL 301.61

Table 2.1.1

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Market share of major global player in Industry.

COMPANIES

GROSS REVENUE MARKET

SHARE (%)

PricewaterhouseCoopers LLP

$31,500,000,000

19.3%

Deloitte Consulting LLP $31,300,000,000

19.2%

Ernst & Young LLP

$24,400,000,000

15.0%

McKinsey & Company

$7,000,000,000 4.3%

BDO Consulting

$6,050,000,000

3.7%

Aon Hewitt $5,200,000,000 3.2%

IMS Consulting Group

$5,000,000,000

3.1%

Bain & Company $4,000,000,000 2.5%

The Boston Consulting Group, Inc.

$3,700,000,000

2.3%

Table 2.1.2

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COOPERATIVE SOCIETY:

A Cooperative is an autonomous association of persons who voluntarily cooperate for their

mutual, social, economic, and cultural benefit.

Cooperatives are owned and managed by the members of the society and they utilize its services.

HISTORY:

The cooperative movement in India can be considered into two phases.

1) Cooperative movement in pre-independence era.

2) Cooperative movement in postindependence era.

Cooperative Movement in pre-independence era:

Indian history comprise of many evidence of establishment cooperatives from beginning

of time.

The earliest known cooperative movement started in 1904. This cooperative movement

was officially established by the English Govt. in India.

Earlier in the year 1892, Derrick Nicholson, tried to build organization to improve

agricultural activities in India. He is considered to be the first to advice building

cooperative society to improve farmer life.

The British Government in India approved the Second Famine Commission in the year

1901. It suggested many development ideas and creation of new organization. Some of

the noticeable among them was the recommendation for establishment of cooperative

societies.

The British Govt. had approved most of the recommendations. As a result of the same in

1904 Cooperative Societies Act was passed. The goal of the cooperative society act was

to help the village and semi urban farmers by giving them short term as well as long term

loans.

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Two models were followed to construct the credit society, rural area model and other one

is urban area model. The rural credit societies were organized on Reinfusion Model while

and for urban cooperative it was Schulze Delitzsch Bank Model. As a result of the

Cooperative Societies Act numbers of Cooperative Societies were established in rural

area, but they could not function properly. The main defects were.

1. No rule were made to establish Non credit Cooperative Societies in rural area

2. No agency was established for financing and supervising the problems and issues of

these societies.

3. The distribution of the Credit Cooperative Societies into two categories rural and

urban acts as a problem because no specific activities could be done due to the

overlapping classification.

A global economic depression occurred in the year 1928 because of its consequences the

prices of agricultural product fell drastically to a great extent and generated

unemployment. It became very difficult for the farmer to repay the loan. The effect of

this was immense on cooperative society.

Reserve Bank of India was established in the year 1933. The reserve bank carried out

some steps to reshape the cooperative movement. Reserve Bank helped a lot to

reenergizing the cooperative movement alive which was slowly declining.

The Congress Govt. came into politics in many of the states in the year 1937. The

congress leaders carried out much more activities in organizing and expanding this

movement. But due to World War II the progress was halted. Again the cooperative

movement came in the hands of English Government. Later the Second World War

provided a boost to cooperative movement. Because of the war sudden prices of

agricultural commodities increase dramatically. It brings more profit to the rural farmer

and boosted their livelihood. There was an increase in the growth of non credit societies.

Cooperative society got more working capital to work on. The pace of cooperative

movement in India grows rapidly and the all India Cooperative planning Committee was

established to gain momentum.

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Cooperative movement in Post independence Era:

After 1947 for the later 3 year no noticeable development was made to the cooperative

movement.

The decline is due to the issue of partition and unavailability of strong and fruitful

programs for national re-organization. But later the leaders of Independent India started

focusing on the importance of cooperative movement for a more successful democracy.

To strengthen cooperative movement of India many provisions were created through the

Five Year Plans.

The cooperative movement in India achieved 50 years during the first plan. The Golden

Jubilee of this movement was celebrated in the whole country with much enjoyment. This

creates awareness among the people to realize the importance of this movement. More

attention was given by the farmer to use the credit given by the bank in productive

activities.

The First Plan also suggest for training of farmers and establishment of new Cooperative

Marketing Societies.

The Second Plan recommended proposals for expanding co operative movement into

various fields. It was specially giving importance on the establishment of warehousing

cooperatives at the State level.

The Third Plan helped to include more new areas under Co operative societies. The

cooperative society for cotton, milk supply, spinning and sugarcanes was recommended.

Some strong steps were taken to train the farmers and student. The cooperative training

Centre at Pune and other regional centers were made to train the farmers effectively.

The Fourth Plan was focused on reorganization of co operative system. Some new

program like growing high yielding crops was begun.

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The Fifth Plan recommended new provisions for development of Central Banks and no

viable primary agricultural societies and reconstructing marketing and consumer

cooperatives. It also made plans for building Farmers Service Societies.

The Sixth Plan recommended programs new for cooperative societies with goal of

converting the primary rural societies to multipurpose societies.

The Seventh Plan laid down more focus on the growth and expansion of co operative

societies to make sure more farmer participation to accomplish its primary goal i.e. the

movement to provide social justice has to be grow rapidly with more focused on

employment and poverty eradication.

CHALLENGES FACED BY COOPERATIVE SOCIETY

Speed of growth of cooperative is very slow

The total growth of Cooperative in India during the last century is not up to the mark as

expected.

From the earliest time the government of India and also State Government have taken a

principle of monitoring and controlling the Cooperative Movement. Cooperative societies

were treated as the section of the government administrative establishment. So, People

participation in the cooperative movement did not grow as expected because of govt.

interruption.

Though cooperative movement increased in the participation of people in cooperatives,

the essence of cooperation was not established.

Exploitation and Mismanagement:

The exact democratic vision of cooperative is being corrupted during the years

and member with greater holdings became powerful and it results in changing the

bureaucratic structure of the cooperative societies.

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The richest farmers make to the top although majority farmers were with small

or medium-sized holdings in the democratic elections for the board member and the top

posts of chairman.

Lack of Awareness:

People are still unaware of information regarding the goals of the Cooperative

Movement, Provisions and restriction of cooperative societies.

No awareness programs were carried out by the government in this direction. Farmers

view these cooperatives as means for getting facilities and subsidy from the government.

Inappropriate contribution of Promotional Institution:

The promotional institutions like the National Cooperative Union of India and the state

Cooperative Federations should carried out more concrete steps for member education programs

and creating awareness program.

Limited Coverage:

Cooperative movement face two major problem

The first problem is that the structure of these cooperative societies has been

comparatively small. Many cooperative societies are restricted to less members and their

operations expanded few villages. Their resources become confined and it became very

difficult for them to extend their working to more area

The second problem is that the many of the cooperative societies confined to

single purpose societies only. As they were focusing on only single purpose, these

cooperatives cannot help the farmer properly to make an optimal use of their resources in

other activities also. As a result it was not possible for the society to make noticeable

growth and progress.

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Functional Weakness:

The Cooperative Movement in India has faced the problem of proper trained manager and

technicians for the smooth operation of cooperative. It is because

No proper institution for the training of personnel;

Due to improper working and management of cooperative institution qualified

and experienced personnel never get attracted to work in the cooperative societies.

The functioning of cooperative societies is very weak as described below

Sometimes cooperative banks were not careful about giving loans to farmers whose

repaying capacity is very less.

There is no strong provisions for repayment of loans,

Improper account keeping.

Coordination between different subdivision of the cooperative organization,

Highly relying on external sources of capital,

No timely auditing and supervision

Misunderstanding of Power utilization:

Cooperative institutions are democratic farmer societies, but sometimes the power is

misuse at Board of management.

The major activities carried out by the Chairman of the Board are conducting meeting &

help in creating business proposals and decision making.

The chief executive takes important decisions. Most of the times it has been seen that the

Chairman misconceived roles as leader of the society and the executer of the decisions

implemented.

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Types of Cooperative Societies:

Although all types of cooperative societies work on the same principle, they differ with regard to

the nature of activities they perform. Followings are different types of cooperative societies that

exist in our country.

Fig 2.1.1

Consumer Cooperative Society

Producer Cooperative Society

Cooperative Marketing Society

Cooperative Credit Society

Cooperative Farming Society

Housing Cooperative Society

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Strength of Cooperative Society:

A Cooperative form of business organization has the following advantages:

Fig 2.1.2

Weakness of Cooperative Society:

Fig 2.1.3

Easy Formation

Limited Liability

Open Members

State Assistance

Elimination of Middlemens

Profit

Democratic Control

Manipulation of power

Problems in Management

Limited Capital

Dependence on Government

Lack of Motivation

Lack of Co-operation

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Current scenario of cooperative society in India

(Interaction With Dr.S.A Siddhanti, Ex-Director, RICM)

Cooperative movement started in England in 1846 with the formation of Rochdale cooperative

society. Capitalist were dominating and labor were exploited during that time which leads to the

formation of cooperatives. The Rochdale cooperative society was established as consumer

cooperative society.

In India the cooperative movement actually started in 1904 with the formation of cooperative

Act. Most of the Indians were involving in Independence movement, so British govt. created the

cooperative to divert the mindset of Indians. In 1930 the cooperative Act was made state centric.

The state has the power to create the rules and policy for setting up and running cooperative.

Every state has different cooperative act after that. In 2000, Multi state cooperative was made to

control the cooperative which operate in more than one state like Amul.

Denmark is known as mother of Dairy Cooperative. Most of the cooperative in Developed

country are highly active they are 100% democratic in managing their activity. Honey Bee is the

largest consumer cooperative.

Some feature of cooperative:

No capitalism no socialism

Commonwealth for all

Voluntary association

Never driven by castes and politics

Works to get return on investment

Put together, work together, and share the profit together

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Principle of cooperative

1. Voluntary Association:

Members in the society interested in working with the cooperative are encouraged to join

as member. There is no rule that you have to be a member if you are living on that society.

2. Open Membership:

Anybody can join a cooperative anytime with their own interest.

3. Democratic Control:

Elections are held to select the Chairman, Board of directors and every member has same power

to select them. These selected members take decision only in the interest of society. Every

society has a cooperative law, every decision taken is within the law and individual biased

decision cannot be made. Democracy is at grass root level.

4. Members Economic Participation:

Every member contributes economically to the society and share the profit.

5. Autonomy in freedom:

Cooperative societies are not in control of any govt. or other forces and they work only for the

betterment of members. Clarity of work and integrity make them autonomous.

6. Education, Training and Publicity:

Training is provides to the board of directors to manage the cooperative and take right decision.

Education is provided to the members to improve their knowledge and skills. Publicity is needed

to market their product and brand.

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7. Concern for community:

The cooperative works for the benefit of members as well as the society in which it is

established. Some profit should be kept to do social activities. Cooperative concern for the

society creates the environment for holistic growth of the cooperative.

Some of the rating (out of 10) and statistics

In voluntary association and open membership Indian cooperative in general can be given

a rating of 6 but in most of the developed countries it is 10.

For democracy in cooperative India can be rated 5 but china is rated 10.

33% are active cooperative in India, 33% are in the middle and other 34% are totally

dormant.

Amul is 100% Autonomous but KMF is 99% as 1% is wrong in top management. KMF

has political influence in top management.

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2.2 COMPANY OVERVIEW

ARIENCE STRATEGIES:

VISION:

Achieving excellence with convergence of various global standards and methodologies.

Arience Strategies is a management consulting company. Arience, with a team of highly

experienced professionals, is providing consulting services, education & training services,

project management support and staffing services to diverse industry sectors. Arience philosophy

is to utilize globally accepted methodologies, tools & techniques for providing value added

services.

Arience has played an important role in making difference in clients projects & operations by

active participation. They help organizations to align their strategic objectives with day-to-day

operations by streamlining management processes, optimizing teams productivity and effective

application of tools & techniques.

Services offered by Arience are:

Arience Project Management Services

A management maturity enhancement services for organizations to:

Build an integrated management approach

Manage complex, multi-cultural global projects

Enhance productivity and profitability

Management mentoring and coaching

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Functional Consulting

Project Management Methodology consulting

Setting up PMO (PM Office) / PMCoE (PM Centre of Excellence)

PM Process Maturity Assessment & Improvement

Business Analysis, Requirement Analysis and BPM

ISO and CMM (I) process consulting

Technology Consulting

Project Management software deployment

Customization & configuration

PM process implementation on software

Competency Enhancement Services

Project Management / Program Management / Risk Management

PMP / CAPM Certification Exam Prep Workshop

Enterprise Analysis / Business Process Management BPM

Business Analysis / Requirement Management

Project Planning & Monitoring with Microsoft Project / Primavera

ISO and CMM (I) Process Improvement

Professionals mentoring and coaching

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RYTHRA SEVA SAHAKARA SANGHA NIYAMITH (RSSSN) ,

SINGANAYAKANAHALLI, BANGALORE NORTH TALUK

Vision: To empower village and uplift socio economic status of poor people living in

villages.

Farmer cooperative societies are organized in India on the recommendation made by the

National Commission on Agriculture with a main objective of providing integrated credit

and service to farmers. Syndicate bank being pioneer in agricultural lending took keen

interest in sponsoring Farmer Service Cooperative Societies in the state of Karnataka.

Rythra Seva Sahakara Sangha Niyamith (RSSSN), Singanayakanahalli is one of such

cooperative sponsored by the bank during 1976. The financing bank provided required

managerial expertise by deputing one of their officers to work as managing director of the

society. Government of Karnataka provided the service of agriculture department by

Deputing one Technician officer and two Agriculture assistant to work in the society.

The society started its operation in December 1976; accordingly a comprehensive survey

is done in 48 villages to identify the members and registered them as member of the

society. The small farmers, agricultural labors, village artisans are enrolled as member of

society.

Agricultural loans, supply of inputs, field demonstration, and training programs were

carried out when the society open its branch in Yelahanka in 1976. The society has also

drawn support of university of agricultural science, IIHR Hesgaraghatta to create a

revolution in agriculture. The advanced technology was made available by digging Bore

wells and open wells for irrigation which helped conversion of dry land into cultivatable

land.

The society also helped land less labors to become economically self reliant by providing

them loans for sheep rearing, piggery, poultry, dairy loan etc.

Agricultural loan to members, technical assistance, sale of agricultural inputs, training

camps are the main objective of the society. Through constructive activities and focused

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execution by the management gradually the society turned into a Model cooperative

society.

In 1982 the society started to provide members consumer durable goods at concession

rates and in 1998 the society was converted in to a bank.

Today it become a fully developed society and has 6 full pledged branches, own building

NCDC assisted Go downs and is carrying out banking activities. By implementing

different deposit schemes with own investment became self sufficient. The society has

not taken any loan from the financing bank for the last ten year.

The repayment of loan is very healthy for last 3 decades, the society have become

economically strong able to give better education to their children and able to give better

education to their children and have constructed own houses and living better life. Now a

days society have been distributing loan for different activities like agricultural

production loan, horticulture, sericulture, animal husbandry loans, jewel loans, tractor

and power tiller loans, self employment loans, Solar loans etc. Society has got a mini

lorry which help farmers to avail cheap transport facility for their agriculture produce.

The society has financed poor farmer, agricultural labors especially SC/ST members by

providing them subsidy loans under government scheme like SJSY subsidy, Udyogini

and Asare scheme for woman members.

Recent Development as per the Government of Karnataka Department of cooperation 380

women self help groups are organized from the society and loans are distributed as Rs. 3

to 5 lakhs per group. Society has financed Government schemes like Udyogini and Asare,

nearly 400 SGH group women member financed with government subsidies for self

employment. Society has provided 15 high-tech model vegetables and fruit selling cart

and Department of horticulture provided Rs. 10000 subsidy for each SC members.

Society has arranged women training program, tailoring, Sericulture Cocoons decorative

art and also mushroom culture. Society has engaged itself in social objective like rain

water harvesting, reenergizing of failed bore wells. Society has constructed head office

recently on latest design and equipments.

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Area of operation 48 villages

Branches

Singhanayakanahalli, Yelahanka, Rajanukunte, Chikkabettahalli,

Kogilu, Marasandra

Board of Director 8 Elected Member

Financing Bank Officer

Chief Executive Officer

Membership 6017

Share Capital From Member : Rs. 208.11 lakhs

From Government : Rs. 4.22 lakhs

Deposits Total 7077.29 Lakhs

Loan Outstanding 5088.92 Lakhs

Loans Recovery 2009-10 : 81%

2010-11 : 83%

2011-12 : 92%

Table 2.2.1

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3. PROJECT PROFILE

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3.1 OBJECTIVES OF THE STUDY:

1. To study the Project Scope Management process in project undertaken by

cooperative.

2. To find out application of concepts and standards of project management.

3. To distinguish projects and operational activities carried out in a society.

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3.2 METHODOLOGY

The data gathered during the project are both primary and secondary data. The primary source of

data is the individuals whom the team met during their visit to different departments and villages.

Secondary data are taken from company web site and also from other published books and

articles on web. The project management Book of knowledge is being referred as a source for

project knowledge. Study of research article, survey and questionare are the primary method

used to gather data about the project.

For project Management Concepts and Knowledge we always have meeting with Industry Guide

Mr.Pramod Kumar, His insights and depth Knowledge werevaluable inputs for the completion of

project.

Secondary sources of data like different website, research article were used as well as primary

sources like interaction with Dr. S.A.Siddhanti provide us many useful insights into the topic.

Top study the details about the history and current scenario of cooperative in India research work

was carried out through internet. Different research article and authentic website like

Indiastat.com used for accessing information about cooperative societies in India. We visited

Regional Institute of Cooperative Management (RICM) to meet Dr. S.A. Siddhanti, Ex-Director

of RICM. The interaction with Dr. S.A. Siddhanti provides us with deep knowledge about the

real life functioning of Cooperative in India. His experience and knowledge sharing with us was

very useful in completing our project.

The sources of data to study the detail functioning of cooperative society are primary data

collected by interaction with the member of the society. To study the details how a cooperative

society works we visited a cooperative bank near Yelahanka, Bangalore. RYTHRA SEVA

SAHAKARA SANGHA NIYAMITH, SINGANAYAKANAHALLI, BANGALORE NORTH

TALUK is a farmer cooperative society organized on the recommendation made by the National

Commission on Agriculture with a main objective of providing integrated credit and service to

farmers. We have visited the bank two times and interaction with the bank staffs and Chairman

provides us knowledge about the society. We put question in details regarding the functioning

and project activities of the society.

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Project Management Standards:

Definition:

Project management is the discipline of planning, organizing, motivating, and controlling

resources to achieve specific goals. A Project is temporary and has a definite start and end

usually carried out to meet unique goals and objectives, with the intention to bring about

profitable change or value addition.

The major challenge of PM is to accomplish all of the mentioned project objectives. The primary

constraints in project management are scope, time, quality and budget. The secondary constraint

is to reduce the allocation of inputs and integrate them to meet project goals.

5 processes of Project management

Fig 3.2.1

Initiation Planning

Control Execution

Closing

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Initiating

The initiating processes analyze the nature and scope of the project

Planning and design

The major purpose is to design cost, time and resources optimally to calculate the work needed

and to manage risk during execution.

Executing

Executing is the process of completing the work defined in the project plan to accomplish the

project's requirements. Execution process includes coordinating people and resources, as well as

combining and doing the activities according to the project management plan. The deliverables

are produced as results from the processes done as mentioned in the project management plan

and different frameworks are applied to ongoing.

Monitoring and controlling

Monitoring and controlling includes processes done to observe project execution to identify

potential problems within time and necessary action can be performed, to regulate the execution

of the project.

In multi-stage projects, the monitoring and control process also deliver feedback between project

phases, to apply preventive actions to continue the project in accordance to the project

management plan.

Closing

Closing includes the formal approval of the project and the ending.

This phase consists of

Project close: Completing all activities from all of the process groups to formally close the

project .

Contract closure: Finalizing and settle each contract and close each contract of the project.

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To distinguish between projects taken by cooperative and the operation in cooperative first we

have studied the difference between project management and operation management as follows.

The Nine Knowledge Areas of Project Management

Fiig.3.2.2

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communication Management

Project Risk Management

Project Procurement Management

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Difference Between Project Management and Operation Management

Project management Operation management

Project management is the discipline of

planning, organizing, motivating, and

controlling resources to accomplish specific

goal

Operation is an organizational day to day

function executing the routine activities that

result in the production of the same product

over a period of time.

A project is temporary. Permanent or business as usual.

Projects have well defined start and end. Operations are repeated over time.

A project has to confine with a fixed budget. Operation is carried out get maximum profit

Decisions take its position according to the

capacity and capability of the project.

In operations one has to remain constant with

his decisions for a long period of time.

A project manager needs to be skillful in

controlling the workers as he has to finish the

task with the given team in a given time within

a limited budget that has to be maintained and

not wasted.

In operations management, a deeper knowledge

of the work process is essential criteria to

obtained better productivity and efficiency.

Table 3.2.1

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Project scope management

Fig 3.2.3

The Project scope management processes include the following:

1. Collect requirement- It is the method of finding and documenting stakeholders

requirement to achieve the project goals

2. Define scope- It is the method of creating an elaborate depiction of the project

3. Create WBS- It is the method of dividing project deliverables and project activities into

tiny and more manageable work

4. Verify scope- It is the process of formal approval of the finished project deliverables

5. Control scope- It is the method of observing and checking progress of the project and

product scope and monitoring changes in the baseline of the scope.

Collect requirement

Define scope

Create WBS Verify scope Control scope

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Zachman Framework for Enterprise architecure

Zachman Framework is an Organizational Architecture framework for organizational

architecture.It is a formal and structured way of seeing and defining an organization. It is a 2-D

classification matrix on the basis of intersection of six communication questions (What, Where,

When, Why, Who and How) with six levels of reification. It transform the abstract ideas on the

planning and scope level of project into concerete instantiations of those ideas at the Operations

level.

It is depicted as a bounded 6 x 6 matrix with cognitive primitives as columns and abstraction

levels of information as rows. Each cell classifies enterprise information, and helps people to

describe and understand the total enterprise information.

The six cognitive primitives used in this framework are What, How, When, Who, Where, and

Why. They are fundamental question primitives for communication, and integration of each

question enables the comprehensive and composite description of the enterprise information.

The six rows in the matrix show the transformation of abstract information into an instantiation.

The top row / Planners View (Scope) describes the context of information,

The second row / Owners View (Enterprise or Business Model is for domain experts to

describe their business concepts.

The third row / Designers View (Information Systems Model) - describes system logics

specialized from the second row.

The forth row / Builders View (Technology Model) describes technology applied to

the system logics.

The fifth row / Programmer View (Detailed Specifications) describes solutions which

are actually implemented for the technology.

The bottom row / Actual System View or The Functioning Enterprise describes

operation of physical instances of the enterprise

33

Why How What Who Where When

Contextual Goal List Process List Material List Organization

al Unit &

Role List

Geographical

Locations

List

Event List

Conceptual Goal

Relationship

Model

Process

Model

Entity

relationship

model

Organization

al Unit &

Role

Relationship

Model

Locations

Model

Event Model

Logical Rules

Diagram

Process

Diagram

Data Model

Diagram

Role

Relationship

Diagram

Locations

Diagram

Event

Diagram

Physical Rules

Specification

Process

Function

Specification

Data Entity

Specification

Role

Specification

Location

Specification

Event

Specification

Detailed Rules detail Process detail Data Detail Role detail Location

detail

Event detail

Table 3.2.2

BUSINESS PROCESS MODEL AND NOTATION

Business Process Model and Notation (BPMN) is a graphical representation for specifying

business processes in a business process model. The primary goal of BPMN is to provide a

standard notation readily understandable by all business stakeholders.

Four basic element categories in BPMN are

Flow objects

Connecting objects

Swim lanes

Artifacts

34

Questionnaire:

Questionnaire was used as a powerful tool to gather information from the cooperative CEO and

Staff about the Details functioning and activities of the Society.

Brainstorming

Our team used brainstorming as tools to generate ideas and solution to cooperative problem and

create the cause and effect diagram.

Group Brainstorming:

Experience and creativity of a person comes into effect to generate new ideas or solution to solve

the problem of the group. As it is interactive if one member confused after initiating another

member can add value to it. Ideas with greater strength and depth can be created. Everybody

contributes to the process so it is not a one sided discussion and the outcome is accepted by

everyone...

Preparation of the Group

Presenting the issue to be adressed

Controlling the discussion

Cause and Effect Diagram:

Cause and effect diagram also known as Ishikawa or fishbone diagram is a very important and

powerful tool to represent the cause of an effect. The cause for any problem or effect is

categorized into six sources as People, Methods, Material, Machine, Measurement, Environment.

The structure of the cause and effect diagram is like a fish bone , so it is named as fish bone

diagram.

35

4. OBSERVATIONS & ANALYSIS

36

Zachman Structure for (Contextual) RSSSN, Singhanayakanahalli

WHY

To empower village and improve the socio economic status of the people

To ensure assured loan to farmers at right time during the year.

To build & develop village level institutions as cooperative model units to manage the

farming activities.

To facilitate rural development by providing opportunities for self employment at village

level.

Ensuring fair prices to member by the elimination of middleman.

To provide Government subsidized product to farmer.

Table 4.1

HOW

Agricultural loans

supply of Agricultural inputs

Saving Accounts

Projects like community Hall

Supply of Agricultural needs and facilities

training programs

field demonstration and Inspection

Table 4.2

37

WHAT

Agricultural Loan

Business Loan

Loan for buying dairy cattle

Pesticides

Fertilizers

Medicines

Fodder

Transportation Vehicle

Machine and Equipments for farming

Table 4.3

WHO

Supply and Procurement Unit

Bank Staff

Board Member

Members of the Society

Horticulture Department

Syndicate Bank as Sponsor Bank

Government

Table 4.4

38

WHERE

Main Office

Rythra Seva Sahakara Sangha Niyamith (RSSSN) , Singanayakanahalli, Bangalore North Taluk

Branches:

Yelahanka

Rajanukunte

Chikkabettahalli

Kogilu

Marasandra

Table 4.5

WHEN

Loan is granted throughout the year for Small Businesses

Loan is granted Before agricultural season to the farmer

Pesticides and fertilizers are also supplied at the time of farming

The proposed community hall will be available at low price any time for the members

Field Activities are carried out during the agricultural season to ensure the productivity

Table 4.6

39

Important people in the Organization

Fig 4.1

President

CEO

Board of Management

Branch Manager

Field Assistant

Sales Assistant

Computer Operator

40

Project Activities in Cooperative:

Project Activities in cooperative can be setting up of new cooperative or Expansion Activities

carried ou in the cooperative. The RSSSN, Singhanayakanahalli has taken the a project to build a

Community Hall for the Welfare of the Cooperative member and the Bank.

Scope of Community Hall Project by RSSSN, Singhanayakanahalli

The Cooperative Bank has taken a project to build a community hall for the member

1. Requirement Documentation

Requirement for the Cooperative bank to Build the Community Hall

The bank has taken the project of building a community Hall for the welfare of members

of society. The bank is investing Rs. 4 crore for the community hall. They are going to

give the community hall for rent at a rate of Rs. 50,000 per day.

The cooperative bank cannot build commercial building. Every investment made is in the

interest of the member of the society.

They have a five-acre land in the name of the society. Therefore, the Board of the bank

decided to utilize the land by building the community Hall. The villagers and member of

the society are paying a huge amount of money for community hall in the city, which is

not feasible for most of the member. This community hall will satisfy the member as well

as create profit for the bank.

Purpose to build the community hall for Members

Marriage Ceremony

Social work

Meeting

Development activities

Awareness program

Birthday Party

41

Get together

Farewell party

Cultural function

Annual function

Festival

2. Scope Statement:

Project Scope Description

The Community hall is being constructed for the main purpose of helping the society.

The community hall cannot be rented for personal benefit.

The community hall will be only used for the purpose of marriage, party, festival,

meeting which are beneficial for the members of the society

Product Acceptance Criteria

Since the project is being contracted to Builder quality of the material used in building

the community hall is a big issue and if it not upto the acceptance criteria it will be rebuilt

The project should be as per the contract

The members of the cooperative society are the first priority for using the Community

Hall

Project Deliverables

The Community hall with a seating capacity of 200 people

Project Exclusion

The project taken by the Builder Exclude interior decoration

Constraint:

The project should be completes within a budget of 4 Crore

Around 5 Acre of land was given to build the community hall

The Project should be completed as soon as possible within 3 years

The contract between the builder and the Society

42

3. Work Breakdown Structure

Fig 4.2

The construction of the community hall is undertaken by a Builder. The concern engineer and the

board member have decided the investment amount of the project after analyzing its economic

viability. The society staff is having a close monitoring of the construction work for quality.

Community Hall

Planning

Requirement Analysis

Cost Estimation

Time Estimation

Quality determination

Place and factors

Financing

Provide money to Builder with investment planning

Construction

Construction of Building

Interior Decoration

Monitoring

To check Quality of material,

timing

Utilization of Resources

43

Project Scope Management for Cooperative Society

1. Collect requirement

Fig 4.3

S.L No Description for cooperative

1.1. INPUT

1.1.1 Project Charter include:

Business need and Purpose, Objective , Schedule and Budget of the

Project and it will be prepared by the cooperative Staff or the Chairman

and sometimes the Goverment Institution and higher Cooperative Body

provide the direction for creating the project Chrter. The requirement by

the stakeholder should be obnly for the benefit of the member of the

society.

1.1.2 Stakeholder Register include:

Include requirement of all the people which are directly or Indirectly

involved in project like the Member, Chairman, Staff Member,

Government Institution, Federation, Marketing Society, Other

Agricultural Department, Finanacing Banks, Builders, and Society etc.

1.2. TOOLS AND

Input

Tools and

technique

Output

Project Charter

Stakeholder

Register

Formal Informal

meeting

Environment and

Survey

Brain storming

Requirement

Documentation

44

TECHNIQUE

1.2.1 Formal and Informal Question with Member of the Society and Staff to

know every details what they expect from the project and what are the

views and suggestion from them

1.2.2 Brainstorming with the Board of Mangaement will generate new ideas

and the project plan can be minutely prepared

1.2.3 Field Survey in villages can help to collect actual requirement and will

be done by Field assistant

1.2.4 Cooperatives can observe the Environment like Government Schemes,

project in other cooperative and Conditions of member to deceide the

requiremnt and also

1.3. OUTPUT

1.3.1 Requirement Documentation:

Cooperative should specify what are the actual need, current situation,

Objective, Functional requirement , Quality requirement, Acceptance

Criteria and Assumption and constaints

Table 4.7

2. Define Scope:

Fig 4.4

Input

Tools and

technique

Output

Project Charter Requirement

Documentation

Expert Judgement

Organizational

Process Asset

Product Analysis

Project Scope

Statement

45

S.L No. Description for Coopearative

2.1 Input

2.1.1 Project Charter

2.1.2 Requirement Documentation

2.1.3 Organizational Process Asset include:

Cooperative Policy

Earlier project taken by the Cooperative

Legal Documents

2.2 Tools and

Technique

2.2.1 Expert Judgement:

Can hire management consultant if big project are undertaken

Suggestion form Member, Sponsor of the Society, Chairman and Board

of management

2.2.2 Product Analysis

The final product can be breakdown as smaller product and parts to

analyze it in a better way and this work can be done by the Project

Manager of the Society

2.3 Output

2.3.1 Project Scope Statement and Scope Baseline:

Description of the Project output

Acceptance Criteria for the Deliverables

Product deliverables

What is not included in Project

Project Constaint or limitation

Table 4.8

3. Create WBS

46

Fig 4.5

S.L No. Description for Coopearative

3.1 Input

3.1.1 Project Charter


3.1.3 Organizational process Asset

3.2 Tools and

Technique

3.2.1 Decomposition of Work:

The society should divide the different work by dividing the project

deliverables into different component or by dividing the life cycle of

project or by Work Packages into different department and smaller work.

It will give a details of each activity and activity which can be performed

simultaneously and independently.

3.3 Output

3.3.1 Work Breakdown Structure:

Input

Tools and

technique

Output

Project Charter Requirement

Documentation

Decomposition

Organizational

process Asset

Work Breakdown

Structure

WBS Dictionary Project

Management Plan

47

Hierachical decomposition of Work will provide clear understanding of

project work by the member, management and workers.

3.3.2 WBS Dictionary:

More Detailed Description of Project

3.3.3 Project Management Plan include:

WBS, WBS Dictionary, Project Scope Statement

Table 4.9

4. Verify Scope

Fig 4.6

Input

Tools and

technique

Output

Project

Management Plan

Requirement

Documentation

Inspection

Validated

Deliverables

Change Request Accepted

Deliverables

48

S.L. NO. Description for Coopearative

4.1 Input

4.1.1 Project Management Plan


4.1.3 Validated Deliverables

4.2 Tools and Technique

4.2.1 Inspection: The Project plan created by the management of the

cooperative society will be inspected by the Chairman and Boardof

cooperative for any furthur change.

4.3 Output

4.3.1 Accepted Deliverables: Deliverables accepted by the Board

Member which satisfy cooperative norms and objective, under

budget and beneficial for member.

4.3.2 Change Request: Request to make necessary changes which are not

acceptable because of high cost, not under plan of project, out of

time limit and out of cooperative policy.

Table 4.10

49

5. Control Scope

Fig 4.7

S.L NO. Description for Coopearative

5.1 Input

5.1.1 Project Management Plan


5.2 Tools and Technique

5.2.1 Variance Analysis: Variance Analysis will be done by the

accountant and Project manager and will describe the magnitude of

variation of the project from original sciope baseline. The variance

analysis is necessary for a project because they have limited amount

to be invest and it should be benefivial for the member

5.3 Output

5.3.1 Project Management Plan and Document Update

Table 4.11

Input

Tools and

technique

Output

Project

Management Plan

Requirement

Documentation

Variance Analysis

Project

Management Plan

Update

50

OPERATIONAL ACTIVITIES

Functions and Processes of the Cooperative Bank

Loan :

Provide agricultural loan to farmers,

loan for startings mall business by members

Loan for Purchasing Cattle and fodder

Procurement:

Procurement of pesticides and fertilizers

Training Program:

Designing & providing training on Cooperative Development, Technical & Marketing

functions.

Marketing:

Marketing, Creating & maintaining the branch to create awareness among farmers of the

society.

Project Activities:

The society has completed the project work of Building a Well equipped Bank with all

modern facilities and currently execiting a project of building a community Hall.

51

LOAN PROCESSES:

Fig 4.8

S.NO STEP ID OWNER NAME PROCESS STEP NAME

1 1.1 Cooperative Bank Application through Bank manager

2 1.2 Cooperative Bank Approval by Board member

3 1.3 Cooperative Bank Preparation of Appraisal Report

4 1.4 Cooperative Bank Decision on loan Amount

5 1.5 Cooperative Bank Submission of Relevent Document

6 1.6 Cooperative Bank Evaluation of Document and Field verification

7 1.7 Cooperative Bank Approval by CEO

8 1.8 Cooperative Bank Get Funds

9 1.9 Cooperative Bank Monitoring and Controlling Activities

10 1.10 Cooperative Bank Repayment of Loan

Table 4.12

Application through Bank

manager

Approval by Board member

Preparation of Appraisal Report

Decision on loan Amount

Submission of Relevent

Document

Evaluation of Document and

Field verification Approval by CEO Get Funds

Monitoring and Controlling Activities

Repayment of Loan

Rejected

52

The Appraisal Report Contains:

1. Personal Details

2. Previous loan transaction details

3. Existing loan details

4. Surety loan details

5. Should not be a indirect loan holder

6. Existing liability

7. Appraisal will contain amount required and demand

8. Security may contain land holding, property, Building etc

9. Recommendation by branch manager

10. Certificate and legal advice

11. The application for loan may be written by someone but with the member signature.

12. Undertaking

13. Family details

14. Proposed crop details and time period

15. If for business then all benefit and profit planning is mentioned.

16. Loan in other Bank if any

17. Appraisal report by field assistance mentioning actual requirement, economic and

technical feasibility, village map, service availability for the farming or business, net

income from the project, repayment capacity.

18. Repayment condition

19. Machinery

20. Map

21. terms and conditions

22. Agreement between the two parties

23. Promissory form

24. Attachment like tax pay receipt, Income risk certificate, land bills etc

53

Category of Loan

Short-term loan: Short-term loan is given for a period of 1 year with 0% interest

Medium term loan: Medium term loan is given for a period of 5-7 year with 3% interest

Long term loan: Long term loan is given for a period exceeding 7 year

The lending rate for the entire above loan is 12.25% and the cost of fund for the bank is less

than 6%

Risk in lending loan to member:

1. Defaulter

A member may unable to repay the loan in time because of

Poor planning of crop

Monsoon

No veterinary service

No proper maintenance of crop

Diseases to crop

Family problem

Soil Quality

Help from Horticulture Department

2. Government policies

54

Root Cause analysis using Fishbone Diagram

Problem: Loan Repayment rate is not 100% (93% last year)

Fig 4.9

s.no Root Area Activity

2.1 Project management Scope management Collect requirements Scope Desription

WBS

Time management Estimate Activity

Resources

Estimate Activity

Durations

Risk Management Identify Risk

Plan Risk Responses

Cost Management Estimaste Budget

Control Cost

2.2 Operations management Evaluation of Document

Appraisal Report

Field Survey

Field visit

Table 4.13

Unavailabilty of

agricultural

Equipment

Project &

Operation

Management

No proper

field

Evaluation &

Monitoring ,

Illiterate

farmer

Govt. Policy,

Mismanagement

by Board

Unavailability

of water,

Monsoon, Soil

Quality,

Diseases to crop

water

Unavailabilty of

agricultural

input

Material Environment Mangement

Equipment Processes People

Loan

repayment rate

is not 100%

55

PROCUREMENT AND DISTRIBUTION OF AGRICULTURAL

INPUT.

Flow of Agricultural Inputs to farmer

Fig 4.10

Process of Procurement and Distribution by RSSSN Cooperative

Fig 4.11

Production by Fertilizer

Manufacturer

State cooperative Marketing Federation

District taluka Cooperative MKT

Society

Primary Cooperative

Society Farmers

Requirement Determination

Proposal to the State cooperative MKTG federation

Order Processing

Goods receipt Storage Distribution to

Farmer

56

S.NO STEP ID OWNER NAME PROCESS STEP NAME

1 2.1 Cooperative Bank Requirement Determination

2 2.2 Cooperative Bank Proposal to the State cooperative MKTG federation

3 2.3 Cooperative Bank Order Processing

4 2.4 Cooperative Bank Goods receipt

5 2.5 Cooperative Bank Storage

6 2.6 Cooperative Bank Distribution to Farmer

Table 4.14

Fig 4.12

No proper

storage room

and Equipments

Operation

Management.

Mishandling

by Staff

member and

store manager

Govt. Policy,

Impoper record

keeping

Monsoon, Crop

Diseases,

Spoilage

Shortage of

supplier

Material. Environment

. Mangement.

Equipment Processes People

Unavailability

of Agricultural

Input at Right

time.

57

s.no Root Area Activity

2.2 Operations management Inventory Management

Ordering at right time

Field Survey

Field visit

Lean Operation

5S at store

Forecasting Demand Estimation

Table 4.15

Agricultural Input :Pesticider, Fertilizer, Seeds, Equipment and Medicine

The society procures fertilizer and pesticides from farmer fertilizer cooperative and also

from private manufacturer. Fertilizer comes under essential commodity Act. The

fertilizer is provided to the farmer at a cost not exceeding MRP and also subsidy is

provided. Public distribution and handling is a big problem and has to be managed

carefully by the society. The society is not responsible of mixing of fertilizer and

concerned authority is there to check the quality of the fertilizer.

The bank also provides Agricultural machine and tools to the farmer. The give loans to

buy Tractor

The bank has one lorry for the purpose of Service and Transportation

TRAINING PROGRAM BY THE COOPERATIVE SOCIETY

Reengineering of Failed Borewells

Grape and Vegetable Crops Seminar

Eye Camp

Animal health Check Camps

Solar Water Heater Exhibition and Training Program

Prathibha Puraskara to award talented school schildren

Women Training Program

Taioring

Sericulture Coocon Decorative Art

Mushroom Culture

58

5. FINDINGS

59

After understanding the models and standards of Project Management, and details about

cooperative structure and function visits were made to the cooperative Bank. We have studied in

details about how project are being taken up in society and the reason of success and failure of

such projects. During those visits our aim was to understand the functions, processes and

activities involved in the cooperatve society and how they take up projects. Also we tried to

understand their roles, responsibilities and challenges being faced by them or what were the

changes required in the organization so that it would function more efficiently.

We have understood that most of the cooperative in villages are organized and led by farmer.

They are not aware of management standards and processes because most of them are not

literate. Most these cooperative dont have much professional support. Most of those cooperative

project are not successful because of improper planning and utilization of resources available by

the memebrs of cooperative and farmers.

Our aim was to assist Arience Strategy to create a project management centre of excellence for

for cooperative society. We have found that cooperative took projects but most of them do not

follow proper standard and guidelines because of which some of their project are not successful.

So we can create some standard for them so that they can follow it whenever they take up any

project. For example in dairy cooperative system of Karnataka These cooperatives at the district

level follow proper planning and standard of project management while they take up any project.

But the dairy cooperatives at village level are not aware of such standard.

In the Singanayakanahalli cooperative Bank is a successful plan and they have both financially

and professionally self sufficient. They followed the principle of building good relation with

their memeber and support them for their economic and social development. The society is self

sufficient financially and helped many member of the society to become fianacially free.Tthe

farmers doesnt submit any project plan to the bank while asking for loan. rather the bank

prepare a gurantee plan and appraisal report as security. The farmer should be helped by the

professional from the Bank to prepare project plan, So that the chances of project success will

increase. It is beneficial for both the farmer and bank. The bank will get its loan repay within

time and as well as the farmer will have profit from the project.

60

The farmer should mention that scope and time of the project. The cooperative Bank should help

the farmer to achieve their target by providing them crop, pesticides and other farming

equipment to ensure quality. The procurement processes should be efficient with the help of

cooperative society. The failure of repayment the loan by the farmer is the result of improper

planning of crop and some external factor. Because the farmers not following a proper planning

of risk, cost and time and scope of their project they are facing the problem of crop failure. These

village farmer ar unaware of these process and standard of taking project

The failure rate of repayment of loan could be reduced if the cooperative society help the farmers

to properly paln the project by appointing management consultant at the cooperative level. By

following the project management standard even at such rural level the result can be seen in near

future when the there will be growth in agricultural production and repayment of loan will

increase. The Cooperative Bank has also taken projects of building a community hall for the

society and they have appointed a Builder to build the main Building. They have a project

Budget of Rs.4 crore ready for the community hall project. It will take 3 year to complete the

project.

The Rythra Seva Sahayaka sangha Model should be followed by other cooperative society to

enhance their productivity and increase project success.

61

6. RECOMMENDATIONS

62

Recommendations for the Singhanayakanahalli coopearative Bank :

Root: Project management

Area: Scope management

Activity: Collection of requirement

The member farmers should specify their exact requirement before setting up plan for the

project. The farmers can collect the requirement from stakeholders. If they will follow project

scope management they can create a proper planning of the project and project scope statement,

and also work beakdown structure of the project.


Area: Time management

Activity: Estimate time for activity

Project time mangement is vital for farmer member of the society because their project depends

on external factors like monsoon, market condition. So accomplishment of the project in time is

more vital for them.


Area: Scope management

Activity: Finding Scope and preparing plan

The cooperative staff should help the farmers to prepare project plan by interacting with those

farmer members of the cooperative society. The cooperative bank in Singhanayakanahalli should

ask for a project plan from the farmer. The project plan will be mentioning scope and time of the

project taken by the farmer. The repayment capacity can be well judged by this method than the

performance appraisal report method.

63

Root: Operations management

Area: Inventory Management

Activity: Ordering at right time

The process of inventory mangement for the agricultural operation good and it can be more

efficient by keeping optimal Quantity of seeds, pesticides or fertilizar in the Store.


Area: Field Survey

Activity: Field visit

The farmer may sometimes claim more inputs than actually required by them. This create a

shortage in the store and trouble for other memeber . This shortage can be increased by the

Cooperative by doing field visit to know the actual requirement of the farmer and manage

accordingly.


Area: Lean Operation

Activity: 5S

Ther is store keeping facility available in the society. The Equipments seeds, Fertilizers,

pesticides can be arranged more propely. It is recommended to follow 5S principle so that the

efficiency of labour force will increase in finding the right input at right time


Area: Forecasting

Activity: Demand Estimation

Proper estimating of the actual requirement by the society can enhance the procurement and

distribution process.

64

7. CONCLUSION

65

Despite the cooperative movement and government policies the cooperative sector is still

unexplored and underutilized sector. The growth in cooperative sector is much necessary to

expect an overall growth of India as a country with more people living in villages. Tough market

condition is making every player in the industry to look beyond its borders. Project management

application in such rural cooperative will boost the productivity and efficiency of these

cooperative while they take up projects. Project success will bring more profit to cooperative and

they can grow and become efficient as good as big corporate in the world.

In a quite few years the Singhanayakanahalli Bank has achieved a big success. There are enough

facilities and support. They are self sufficient and finance most of their activities by themselves.

More importance should be given to cooperatives at village level because they are the backbone

of Cooperative Movement. By applying proper management standards and procedures in this

bank the operational efficiency can be improved and project will be successful.

The Bank Model is a successful one with a very good loan repayment rate and the Bank is

pioneer in maintaining relationship with member and working towards their overall development

by providing them loan, training, employment opportunity etc.

Professional management application and standard can be applied to the cooperative societies to

improve their productivity and efficiency in project and processes.

Important: - The study is performed for academic purpose to complete internship project. The

findings, recommendations should be further evaluated by professional consulting organization.

This study is prepared in limited scope, duration which is not an indicator of performance in

general. In death, detailed study is recommended.

66

LEARNING OUTCOME

67

The best and the most effective learning occurs through practical experience to any study and

thus internship during the MBA course serves this purpose. Industrial exposure during the

internship provided mean insight to the business world and taught how to apply theoretical

concepts in the business. Internship helps in transforming a student from a theoretical manager to

a practical manager who becomes aware of business conduct and hence making him 'Business

Ready'. I feel more confident and knowledgeable after my internship.

I spent a period of two and half months working for ARIENCE STRATEGIES on a project with

the goals to assist Arience strategy in creating project management center of excellence for

cooperative society. Singhanayakanahalli Cooperative bank gave an insight to its organizational

structure, culture, processes, business ethics and market. I was able to find out why cooperatives

are a important part of the country growth and progress. These three months were like a

transforming phase for me and it has helped me a lot in knowing project management, enterprise

analysis and many more things much better.

As Singhanayakanahalli cooperative bank being a nonprofit and a cooperative organization. I

learnt a lot of things related to management and changed my view that only a multinational or

private organization are better at managing the business. I have learned what are the implication

of project management in project undertaken by cooperative. I have learned application of

tecchnique like Zachman , Fishbone Diagram, BPM, WBS, Questionare, brainstorming etc.

This internship helped me in knowing everything which a manager should know before entering

the business. I feel that I was lucky enough that I got a project of my choice in a reputed

company, where I was mentored, guided and taught by Mr. Pramod Kumar and Tanuja R.

Working under them was a great experience and was helpful in exploring more in the field of

project management. This project also taught me how to work and perform in a team.

Overall, it was an amazing experience for me and it made me more confident, knowledgeable

and mature as a manger. I hope I can use all of my industrial experience somewhere in my future

in adding some value to a company.

68

ANNEXURE

69

Statistics on cooperative society in India and Karnataka

Number of Registered Societies in India

States/UTs Registered Societies

Andaman and Nicobar Islands 1140

Andhra Pradesh 460888

Arunachal Pradesh 4141

Assam 73181

Bihar 22272

Chandigarh 3488

Chhattisgarh 39901

Dadra and Nagar Haveli * 1742

Daman and Diu 228

Delhi 60687

Goa 6598

Gujarat 172215

Haryana 60132

Himachal Pradesh 39510

Jammu and Kashmir 5465

Jharkhand 4141

Karnataka 189744

Kerala 326392

70

Lakshadweep 524

Madhya Pradesh 87786

Maharashtra 483552

Manipur 15131

Meghalaya 15027

Mizoram 2703

Nagaland 7330

Odisha 133573

Pondicherry 14511

Punjab 48933

Rajasthan 100272

Sikkim 2303

Tamil Nadu 135062

Tripura 5493

Uttar Pradesh 433007

Uttarakhand 49954

West Bengal 169136

India 3176162

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Growth of cooperative society in India

Particulars Number of Societies

(In' 000)

Membership

(In Millions)

1973-74 333.6 77.1

1977-78 300.4 93.1

1984-85 315.7 142.1

1991-92 318.7 148

1992-93 339.7 172.5

1993-94 395.3 189.6

1994-95 411.1 197.8

1995-96 427.6 201.5

1996-97 452.7 204.5

1997-98 488.2 207.6

1998-99 503.9 209.6

1999-00 528.2 228.7

2000-01 545.3 236.2

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Cooperative societies in Karnataka 2012

Sector-wise Cooperative Societies

1. JURISDICTION

Sl.No Working Cooperative societies sector wise TOTAL

1 Multi-State Level 14

2 State Level 124

3 Above District and below State Level 342

4 District Level 580

5 Above Taluka and below District Level 971

6 Taluka Level 2363

7 Below Taluka Level 32071

Total 36465

2. Financial Position

1 Societies under Profit 18974

2 Societies under Loss 12633

3 Societies under Profit nor Loss 4858

Total 36465

3. Working Position

1 Working 32006

2 Defunct 2229

3 Liquidation 2230

Total 36465

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4. Types of Cooperative Societies

Sl.No Types of Cooperative Societies Working Defunct Liquidation Total

1 Multi State Cooperative Societies 14 - - 14

2 State level Cooperative Societies 58 1 5 64

3 District level Cooperative Societies 21 - - 21

4 Primary Cooperative Agricultural and

Rural Development Bank

Ltd,.(PCARDB)

175 - 2 177

5 Primary Agriculture Cooperative

Societies (PACS)

4823 15 155 4993

6 Large Size Adivasi Multi-Purpose

Cooperative Societies (LAMPS)

23 - - 23

7 Sericulture growers Cooperative

Societies

44 3 12 59

8 Sahakari Grain Banks 98 4 10 112

9 Urban Cooperative Banks 244 1 42 290

10 Other Credit Cooperative Societies 2175 149 116 2437

11 Employers Credit Cooperative Societies 1034 83 52 1169

12 Taluka Agriculture Primary Cooperative

Marketing Societies(TAPCMS)

178 1 8 187

13 Other Marketing Cooperative Societies 95 11 12 118

14 Cooperative Sugar Factories 25 2 10 37

15 Processing Cooperative Societies 92 13 20 125

16 Cooperative Spinning Mills 10 1 6 17

17 Oilseed Growers Cooperative Societies 190 67 45 302

18 Livestock Cooperative Societies 302 68 44 414

19 Milk Producers Cooperative Societies 12150 480 360 12990

20 Cooperative Milk unions 13 - 2 15

21 Joint farming Cooperative Societies 56 15 111 182

22 Lift Irrigation Cooperative Societies 79 26 35 140

23 Water Users Cooperative Societies 2558 177 47 2782

24 Fisheries Cooperative Societies 504 32 26 562

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25 Weavers Cooperative Societies 611 67 99 777

26 Other Industrial Cooperative Societies 196 54 95 345

27 Industrial Cooperative Societies 311 119 199 629

28 Consumer Cooperative Societies 1187 114 124 1425

29 Central Cooperative Whole sale Stores 28 1 11 40

30 Housing Cooperative Societies 1070 210 223 1503

31 Forest Labor Cooperative Societies 33 5 9 47

32 Labor Cooperative Societies 107 30 33 170

33 District Cooperative Union 30 - 3 33

34 District Cooperative Federation 7 - - 7

35 Multi-purpose Cooperative Societies 1580 113 51 1744

36 Student Consumer Cooperative Societies 120 10 5 135

37 Women Cooperative Societies 160 2 8 170

38 Women Multi-purpose Cooperative

Societies

1080 196 120 1396

39 Garibi Hatavo Multi-purpose

Cooperative Societies

32 8 2 42

40 Tailor Multi-purpose Cooperative

Societies

13 13 10 36

41 Leather Cooperative Societies 21 11 20 52

42 Tree Planters Cooperative Societies 13 7 2 22

43 Hand Pounding Cooperative Societies 1 - 5 6

44 Washer men Cooperative Societies 6 1 2 9

45 Electricity Cooperative Societies 2 2 1 5

46 Transport Cooperative Societies 8 9 3 20

47 Cooperative Hospitals 7 3 3 13

48 Cooperative Printing press 17 11 5 33

49 Wool weavers Cooperative Societies 146 30 12 188

50 Other Cooperative Societies 259 64 65 388

Total 32006 2229 2230 36465

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Questionare

Discussion with Bank Cooperative CEO and Cooperative Bank Manager

1. When this Cooperative was established?

2. Can you tell a brief history of this cooperative?

3. What was the main objective for setting up this cooperative?

4. Who are the important people in the organization?

5. What kinds of project activities are carried out in this organization?

6. What is the objective behind the community hall project?

7. How many villages are part of this cooperative?

8. How many branches or subdivision you have for this cooperative?

9. How you have decided to build a community hall?

10. Does the community hall really required by your member?

11. What are the challenges for creating the community hall?

12. Give some details regarding the structure and capacity of community hall?

13. What are main activities carried out in this cooperative?

14. What are the different kinds of loan you provide to the member?

15. When a member considered being eligible for a loan?

16. What is the time given for the repayment of loan?

17. Hoe you decide the fund amount to be sanctioned as loan?

18. Whom should a member approach for a loan?

19. What are the different steps in granting a loan?

20. What is being included in an appraisal report?

21. What are the documents needed for a loan?

22. What happens if a member fails to repay loan?

23. What is next after giving loan? Are there any monitoring and controlling activities to look

after the activities of member?

24. Why are the different risks involved in giving loan?

25. What are the other functions of the bank other than loan?

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26. How the cooperative get the agricultural inputs?

27. How many employees are involved in procurement and distribution process?

28. What is the procurement process for pesticides and fertilizer?

29. What are the risks involved in storing agricultural input?

30. What is the profit margin for selling this agricultural input?

31. How much subsidy does government provide for the member?

32. Is there any special arrangement for the storage of Agricultural loan?

33. How the demand for agricultural inputs is estimated?

34. What are the other activities you involved to empower members and society?

35. What kinds of training programs are carried out?

36. How members get registered to the society?

37. Is there any awareness program for farmer?

38. What are the other developmental activities carried out by the society?

39. What are the challenges of this society?

40. How can you overcome these challenges?

41. Do think you need some management consultant to help out in project activities and

processes?

42. What are the other department and institution you linked to for coordinating

developmental activities?

43. Who provide you the initial fund for establishing the cooperative?

44. What are the proposed plan and project for future?

45. Is there any government and private intervention in the process of cooperative?

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REFERENCES:

78

Book:

Project management book of Knowledge

Web:

www.ariencestategies.com

www.pmi.org

www.zifa.com

http://www.nabard.org

http://www.indiastat.com

http://indiancooperative.com/blog/roadblocks-before-cooperatives/)

http://www.preservearticles.com/201105076374/essay-on-the-history-of-cooperative-movement-

in-india.html)

http://sahakara.kar.gov.in/Listofsocieties.html (Sahakara Sindhu, Department of cooperation,

Government of Karnataka)

Project Management

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