MIS SET UP OF AMUL

SUBMITTED TO:-
Prof. Kapil Mohan Garg

SUBMITTED BY:-
Devendra Patel
Devabrata Ghosh
Goutam Choudhary
Gargi
Irfan Nasim
 AMUL
INDEX:-
Company History
Profile
About Topic
Mis Setup of Amul
Role of MIS in Strategic Planning
Role of MIS in Managerial control
Role of MIS in Operation Control
 AMUL HISTORY
Amul the co-operative 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 dairy, in the small city distances to
deliver milk, which often went sour in summer, to Polson. The prices of
milk were arbitrarily determined. Moreover, the government had given
monopoly rights to Polson to collect milk from Anand and supply it to
Bombay city. Angered by the unfair 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 decentralized, as most
producers were marginal farmers who could deliver, at most, litres of
milk per day. Cooperatives were formed for each village, too.
The cooperative was further de developed and managed by Dr.Verghese
Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk
powder from buffalo milk (for the first time in the world) and a little
later, with Kurien's help, making it on a commercial scale, led to the first
modern dairy of the cooperative at Anand, which would compete against
established players in the market.
 COMPANY PROFILE
The GCMMF is the largest food products marketing organisation of
India. It is the apex organisation of the dairy cooperatives of Gujarat.
Over the last five and a half decades, dairy cooperatives in Gujarat have
created an economic network that links more than 3.1 million village
milk producers with millions of consumers in India.
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 federated into a milk
federation at the state level.
The structure was 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.
The main functions of the VDCS are:

 Collection of surplus milk from the producers of the village and

payment based on quality and quantity,
 Providing support services to the members like veterinary first aid,
artificial insemination services, cattle-feed sales, mineral mixture
sales, fodder and fodder seed sales, conducting training on animal
husbandry and dairying,
 Selling liquid milk for local consumers of the village,
 Supplying milk to the District Milk Union.
District Cooperative Milk Producer's Union.:-
 (RAW MATERIAL) The main functions of the union 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,
 Conducting training on cooperative development, animal
husbandry and dairying for milk producers and conducting skill
development and leadership development training for VDCS staff
and Management Committee members,
 Providing management support to the VDCS along with
supervision of its activities.
 Establish chilling centres and dairy plants for processing the milk
received from the villages.
 Selling liquid milk and milk products within the district
 Process milk into milk products as per the requirement of State
Marketing Federation.
 Decide on the prices of milk to be paid to milk producers as well
on the prices of support services provided to members.

State Cooperative Milk Federation (Federation)

 The main functions of the federation are as follows:
 Marketing of milk and milk products processed/manufactured by
Milk Unions,
 Establish a distribution network for marketing of milk and milk
products,
 Arranging transportation of milk and milk products from the Milk
Unions to the market,
 Creating and maintaining a brand for marketing of milk & milk
products,
 Providing support services to the Milk Unions and members like
technical inputs, management support and advisory services,
 Pooling surplus milk from the Milk Unions and supplying it to
deficit Milk Unions,
 Arranging for common purchase of raw materials used in
manufacture/packaging of milk products.
 MIS SETUP OF AMUL
AMUL federation has now integrated it's country-wide operations
through successful implementation of the "Enterprise-wide Integrated
Application System". They believe that introduction of similar
integrated ERP systems at their Member Unions will help us ensure that
the IT revolution serves their members better. Their Federation is among
the Top 100 IT Users in the country. Currently, there are more than
3,000 computers installed in our village societies, which support the
Automated Milk Collection System. Their goal is to install computers in
all our village societies and to integrate them with their respective
unions. On the market side, our distributors have responded
enthusiastically to our suggestion of computerizing their operations and
getting email connectivity for better communication with our sales
offices. Their distributors can now place their orders on our internet
website www.Amulb2b.com. They continue to receive a good consumer
response to our website www.Amul.com which is noted for its distinct
features like cyber store for ice-cream and other milk products, cricket
rankings and the recently launched e-greetings site.
TQM:-

For our distributors, the TQM movement is evident in Amul Quality

Circles. We have trained our entire field sales force in the required
Strategic Facilitation skills equipping them with a sharper business
perspective, which takes into account the complexities of changing
market dynamics.
 ROLE OF MIS IN STRATEGIC PLANNING
OF AMUL
If opinion makers need one concrete example to showcase the positive
impact IT can have on rural India, they only need to take a look at Amul.
From using automated milk collection centres, to making IT literacy
compulsory for its employees, Amul leaves no stone unturned in
promoting its IT initiatives. Srikanth R P reports on how Amul is truly
rural India�s flag bearer in the IT revolution.
The term, ‘Digital Divide,’ has always fascinated the Indian IT industry.
Both the government and social organisations from the private sector
have launched various schemes to take ‘IT to the masses’. It has always
been argued that India’s rural population—which accounts for more than
70 percent of the total population—can be uplifted with the help of IT.
And if rural India or the government needs a poster boy who could
inspire organisations to strategise operations with the help of IT— it has
to be Amul. No other Indian brand comes close to it.
IT has played a critical role in the development of the Amul brand. The
logistics behind the co-ordination of approximately six million litres of
milk per day from about 10,675 separate village co-operative societies
throughout Gujarat, and storing, processing and producing of milk
products at the 12 district dairy societies, is carried out with military-like
precision.
 ROLE OF MIS IN
MANAGERIAL CONTROL
Skills Consulting & Training Company, providing tailored made
programs in several areas in business, management, finance,
account, and we are the only training group deliver a maritime
courses in Kuwait. Our mission is to be number one in Kuwait in
providing maritime and management courses.

Skills Company is small company and part of big group, in this

company, there are two small departments managed by the general
manager. As below:
From the above diagram, we can see the company have small
number of staff and missing some important departments. This is
affect the work in positive way because of Free flow of
information between staff , it is easy for us to contact each other
any time, any where , visit and set with the manager any time to
get quick approval or disapproval or to discuss any issue related to
work.. The management style is decentralized; employee input is
valuable and ideas taken seriously. Ideas generation and basic
change is originating from the bottom to the top.
 ROLE OF MIS IN
OPEATION CONTROL
OF AMUL
The terms Management Information System (MIS), information
system, Enterprise Resource Planning (ERP), and information
technology management are often confused. Information systems
and MIS are broader categories that include ERP. Information
technology management concerns the operation and organization
of information technology resources independent of their purpose.
Most management information systems specialize in particular
commercial and industrial sectors, aspects of the enterprise, or
management substructure.
The amul industry heve selected various concepts and models of
MIS for its operation control are as follows:-
Management information systems (MIS), produce fixed,
regularly scheduled reports based on data extracted and
summarized from the firm’s underlying transaction processing
systems[5] to middle and operational level managers to identify
and inform structured and semi-structured decision problems.
Decision Support Systems (DSS) are computer program
applications used by middle and higher management to compile
information from a wide range of sources to support problem
solving and decision making.DSS is majorly used for semi-
structured and unstructured decision problems.
Executive Information Systems (EIS) is a reporting tool that
provides quick access to summarized reports coming from all
company levels and departments such as accounting, human
resources and operations.
Marketing Information Systems (MIS) are Management
Information Systems designed specifically for managing the
marketing aspects of the business.
Office Automation Systems (OAS) support communication and
productivity in the enterprise by automating work flow and
eliminating bottlenecks. OAS may be implemented at any and all
levels of management.
School Information Management Systems (SIMS) cover school
administration,and often including teaching and learning materials.
Enterprise Resource Planning (ERP) facilitates the flow of
information between all business functions inside the boundaries of
the organization and manage the connections to outside
stakeholders.
MIS SETUP FOR AMUL

 Milk collection (Total - 2008-09): 3.05 billion liters.

 Milk collection (Daily Average 2008-09): 8.4 million liters

 Milk Drying Capacity: 626 Mts. per day

 Cattle feed manufacturing Capacity: 3500 Mts. per day

Cont…
Amul Product’s
Diversification
 EVOLUTION of “IT”
 The evolution of IT in AMUL was took place in the guidance of
DR.B.M Vyas.

 The milk collection center at village cooperative societies, were

first automated.

 Application and utilization of GIS.

 Data analysis software utilization for milk production estimation

and increasing productivity.

 VATS network between all the level of distribution network and

GCMMF.
 Shift process
 The company zeroed in on ERP as means to keep pace with
dynamically changing business environment.

 TCS was hired to guide them in its implementation.

 The project was named as Enterprise wise integrated application

system (EIAS)

IMPLEMENTATION

 Amul start implementation of ERP in phases.

 Automatic milk collection system units(AMCUS) at village society

 were installed in the first phase to automate milk production

logistics.

 AMCUS facilities to capture member information, milk fat

content, volume collected, and amount payable to each member
electronically.
Cont….
 Indian Institute of Management – Ahmedabad supplemented Amul’s
IT strategy by providing an application software – Dairy Information
System Kiosk(DISK) to facilitate data analysis and decision support
in improving milk collection.
 The kiosk would also contain an extensive database on the history of
cattle owned by the farmers, medical history of the cattle,
reproductive cycle and history of diseases.
 Farmers can have access to information related to milk production,
including best practices in breeding and rearing cattle.
 As a large amount of detailed history on milk production is available
in the database, the system can be used to forecast milk collection and
monitor the produce from individual sellers.
Automatic Milk Collection
System Units (AMCUS)
 Total Quality Management
Model
 There is improvement in quality of milk in term of acidity and sour
milk.

 Sabor milk union records show 2% reduction in the amount of the

sour milk received from the union.

 Improved microbiological quality of upcoming raw milk in the

form of methylene blue reduction.

 This gives better shelf life to the product.

 Program like Red Tag Day was launched for cleaning the milk
collection center.
GCMMF’S SUPPLY CHAIN
 Distribution Process
Company
Dealer Franchisee
Wholesaler

Retailer

Shopkeeper

Consumers
THE CHANNEL NETWORK
 Procurement channel- upstream flow

 Distribution channel- downstream flow

 Procurement
 Activities at the village level comprised developing and servicing
the VCSs.

 Increasing milk collection, procuring milk, and transporting it to

the chilling and processing units twice a day.

 The VCSs provided the farmers with good quality animal feed,
fodder, and other services like veterinary first aid.
 PROCURNMENT
CHANNEL
 On an average around thousand farmers come to sell milk at their
local co-operative milk collection center.
 Each farmer has been given a plastic card for identification.
 At the milk collection counter, the farmer drops the card into a box
and the identification number is transmitted to a personal computer
attached to the machine.
 The milk is then weighed and the fat content of the milk is
measured by an electronic fat testing machine.
 Both these details are recorded in the PC. The computer then
calculates the amount due to farmer on the basis of the fat content.
 The value of the milk is then printed out on a slip and handed over
to farmer who collects the payment at adjacent window.