The following extracts from the handbook Technology of Indian Milk Products would be of interest to Entrepreneurs.
Section 4.1: Production Planning and Implementation
Production Planning and Implementation (Pg 217 - 218)
The feasibility study is essential for implementation of such a
project. It should cover capital investment on land, building, equipment,
infrastructure, working capital, manufacturing and marketing cost,
and financial projections to work out the viability of the project.
Once its viability is established, a detailed project report should
include the following ten steps for project planning and implementation:
First Step: Appoint a consultant to plan the project in
relation to the proposed market, design the dairy plant, and select
an architect and a structural consultant. Prepare tender documents
for civil works and plant equipment.
Second Step: After quantifying the product mix, work out
the process flow diagram showing the material balances.
Third Step: Formulate dairy plant specifications. The proposed
design should include:
- Space required (Floor Area).
- List the equipment, their specifications and
capacities.
- Prepare the plant layout, including process,
service and storage.
- Provide for service requirements
Fourth Step: Prepare for plant construction by attending
to the following:
- Selection of the site;
- Survey the availability of essential services
like water, electricity, all-weather road, communications, etc;
and,
- Tender for civil works, equipment supply
and installation, and the subsequent award of contracts.
Fifth Step: Formulate the marketing plans for design of brand
name, logo, packaging, procurement of packaging and labelling materials.
Appointment of core staff, including plant manager, administration
and marketing personnel.
Sixth Step: Arrange for sanctions/approvals/clearances by
the Central/State/local statutory authorities.
Seventh Step: Coordinate the civil construction work with
the suppliers for timely installation of the dairy equipment and
machinery.
Eighth Step: Complete the civil construction to the stage
when equipment can be installed.
Ninth Step: Select and appoint supervisors and the operating
staff. Erection, installation and commissioning of the plant and
machinery.
Tenth Step: Place the products in the market through well-established
marketing channels.
The techno-economic feasibility study is presented in four parts:
Part I: Investment opportunities;
Part II: Plan for product manufacturing;
Part III: Development of plant layout; and,
Part IV: Cleaning and sanitization.
Table 4.1.1 Profitability of various products as gross percentage
of cost (Pg 220)
Milk products
|
Raw materials
|
Services
|
Packaging
|
Storage and distribution
|
Salary and wages
|
Depreciation and
interest
|
Total
cost
|
Net
profit
|
Shrikhand |
43
|
6
|
14
|
5
|
7
|
8
|
83
|
17
|
Dahi |
34
|
8
|
25
|
5
|
6
|
6
|
84
|
16
|
Mishti Doi |
40
|
6
|
22
|
5
|
4
|
3
|
80
|
20
|
Lassi |
40
|
7
|
7
|
4
|
6
|
6
|
70
|
30
|
Peda |
54
|
5
|
10
|
4
|
6
|
7
|
86
|
14
|
Burfi |
51
|
5
|
9
|
4
|
6
|
7
|
82
|
18
|
Gulabjamun |
33
|
5
|
14
|
5
|
3.5
|
3.5
|
64
|
36
|
Kheer |
33
|
4
|
17
|
3
|
4
|
4
|
65
|
35
|
Basundi |
39
|
4
|
14
|
3
|
6
|
6
|
72
|
28
|
Pal Payasam |
31
|
5
|
21
|
4
|
4
|
4
|
71
|
29
|
Paneer |
58
|
3
|
4
|
3
|
10
|
11
|
89
|
11
|
Rasogolla |
33
|
5
|
14
|
3
|
5
|
5
|
65
|
35
|
Sandesh |
42
|
3
|
7
|
3
|
8
|
8
|
71
|
29
|
Ghee |
82
|
2
|
3
|
3
|
2
|
2
|
94
|
6
|
Preparation of a Project Report
(Pg 227)
A project report for setting up a new dairy unit or expanding an
existing one should provide the required technical information under
the following headings:
Introduction: The project report should have a brief introduction
about the potential of the area vis-à-vis local demand for
milk/dairy products as well as infrastructural facilities, marketing
centres, and their accessibility.
Objectives: Specific mention should be made about the project's
purpose with reference to the proposed product-mix, size of the
unit and phasing.
Entrepreneur(s): Their experience in the proposed enterprise
and their financial position should be given. If it is a partnership
firm or company, names of directors and their financial worth, share
capital, by-laws and memoranda of articles of association need to
be given.
Location: The specific site and its area, distance from the
nearest town where major inputs are available should be stated.
Availability of water, electricity and all-weather road near the
unit must be indicated.
Management: The management of an enterprise can be broadly
divided into the following:
- Production management: Production management
includes planning, milk procurement, plant operation and equipment
maintenance, optimum use of labour, etc.
- Marketing management: Marketing the
products should be so arranged as to get a reasonably good price,
as is prevailing in the market. As the product price varies from
season to season, the average selling price should be indicated.
While making projections for four/five years, the entrepreneur
may consider some percentage of increase in the prices based on
the growth trend expected from the unit. For this purpose, one
has to be vigilant about the market fluctuations and try to tap
the unexploited/underexploited area. Knowledge of various marketing
techniques and ability to market the produce with minimum overhead
charges are the prerequisites of any successful entrepreneur.
He should know the scientific methods of processing, storage,
preservation and transport.
- Financial management: It is needed
at the following two stages: (i) When the unit gets financial
assistance from the credit institution; and, (ii) When the unit
starts generating income.
Marketing: The entrepreneur should indicate specific marketing
arrangements such as:
- Annual contracts with any organization/hotels,
etc.;
- Selling the produce in the wholesale market;
- Relying upon traders who procure the produce
from his unit;
- Retail market, if any, and the percentage of
sale on this account; and,
- Any other marketing arrangements.
Plan for Product Manufacturing (Pg 230)
The plan of production for each product is presented in two ways:
- The technology aspects through mass balance
process flow diagrams; and,
- The engineering aspects covering building
plan with layout of equipment and their list.
The mass balance diagrams contain the following information:
- The initial quantity of milk (fat &
SNF).
- Additional input during the manufacturing
process such as milk powder to raise SNF, cream to raise fat,
sugar for sweetening the products and other functional ingredients
for taste and flavour.
- Total solids and moisture in the end-product.
The equipment with their rated capacity is selected on the basis
of mass balance of each product.
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|
A
New Profit Centre |
"The dairy industry
is witnessing rapid changes. In search of better returns, the
industry is widening its focus to include traditional milk products
and these are emerging as new profit centers for the organised
sector".
- The Hindu Business Line,
New Delhi |
|