1

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
3.1.2 Requirement Documentation
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

4.1.2 Requirement Documentation

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

5.1.2 Requirement Documentation

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.
Root: Project management
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.
Root: Project management
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.
Root: Operations management
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.
Root: Operations management
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
Root: Operations management
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


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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





71
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



75

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)