CHAPTER 4

Department study

4.1 Purchase department:

It is a sub-department, which comes under Finance Department. The main work of

this department is to purchase various materials required by different department.
After ascertaining the stock position by stores department and indent is sent by
different department duly approved by the Managing Director. This department act
to purchase materials. It also maintains records of all the suppliers calls for Tenders,
quotations etc. Quotations with lowest rate are sanctioned. Purchase up to 50,000
can be made by Purchase Department. If the purchase amount is more than 50,000,
then the approval of Managing Director.

Structure:

Purchase Officer

Purchase Superindent

Asst Purchase officer

Helpers

Purchase department mainly concerned with the purchase of materials which are
required by the each department and effective storage and maintenance of the same.
Normally for purchasing of goods, Mother Dairy follows Trader method purchased
materials are stored in the stores of Mother Dairy.

Objectives:

Following are the important objectives of purchase department

 To procure fights materials

 In right qualities
  In right quantities
 Form right and reliable sources of supplies
 To produce materials economically i.e., at reasonable price.
 To secure and deliver materials at right place and at right time
 Transparency in the transactions.

Functions:

 To keep records indicating possible materials and their substitutes.

 Maintenance of relevant records of reliable records of reliable sources of
supplies, price materials.
 Making contacts with right sources of supplies
 Analysing, evaluation of offers /quotations to procure the materials.
 Maintaining all the relevant records of purchase made.

4.2 Administrative Department:

The administration department functions by the administrative officer. The

administrative department of the unit holds all official work responsibility and his
direction after general manager. All the matters regarding preparing of employee’s
attendance, sanctioning of increments, promotions, leave etc, are notices by this
department and presented to general manager for this perusal and approval of the
operation at the end of one accounting year. It plays a very important role in the
organization. It is primary concern with human relationship in the organization. A
sound human relationship within the organization. Thus, its main objects lay in the
maintenance of the relationship on a basis which consideration of the well-being of
the individual.

Functions:

 Recruitment will be done by the central office.

 Maintenance of seniority list
 Employees to promote under KMF interest.
 Private employees trading.
 Maintenances of files, records etc up to date. Collecting and presenting data
in the form use full information from the record.
  Recording and maintaining attendance, leave details, looking after the
security needs etc.
 Reducing the cost of office operation, production costs, without affecting
the functioning of the organization.
 Time keeper.
 Canteen maintenance etc.

4.3 Production department:

Production department can be defined as 'an organized activity of transforming raw

material into finished products ‘Production can also be defined as production of
goods, which satisfies some human needs and wants the production department of
Nandini milk products is located in the KOMUL. The production department in
Nandini milk Products performed the function of developing a procedure transform
a set of input elements like man, machine, material, money, into specified set of
output elements like finished goods in assigned quantity and best quality in order to
achieve the organization goals successfully.

Objectives of production department:

 Pre plan the production activities soon after receiving the intends of quality
demanded.
 Execute, coordinate, organize and monitor production activities.
 Ensure process control and quality of the product manufactures.
 Ensure that production meets the planes requirements.
 Designing products and packages.
 To upgrade technical efficiency of production.
Product processing:
4.4 Human resource management department:

“KMF is one of the leading Dairy” It shares collaborative and friendly relationship
with preferred partners, employees, consumers and other workers involved to it. It
maintains a transparency in handling the above relations and stick to its standards.
The HRM function or Personnel department function in KMF is indeed vast. All
major activities since working of a worker – from the time of his/her selection in to
an organization until he/she resigns or get retired or leave job for any reason –
comes under the preview of HRM. The HR planning in Dairy is very smooth and
transparent. In KOMUL major attention is given on the welfare and Safety of
employees. Dairy also focuses on developing human value and potential through
various bearing and development activities and provide favourable atmosphere. All
these functions are performed by HR in KOMUL.

Functions:

 Recruitment
 Training and development
 Promotion
 Salary and wages
 Increments, incentives and bonus
 Transfers

Recruitment and selection: -

HRD looks well-being recruitment and selection of employee. Here some

procedures following for the search candidates mainly.

 Through adds.
 Through employment exchange.
 Through in service.

Afterwards recruitment procedure based on the company rules and recruitment

process based on the candidate’s education, experience, and age. Selection done
through the company card according to rules and regulation of company.
Staff:

The staff deals with the various personnel Policies followed by the Organization.
Below are given the personnel policies followed by the Organization.

Personnel policies:

The Human Resource Department is the in Kolar Milk Union Works as a sub
Department of Administration Department.

Training and development:

The Union emphasizes on training the employees. Most of the training given to the
employees here are On-the-Job training and few Off-the-Job Training.

Objectives:

 Selection of right type of employees.

 Proper orientation and introduction of new employee.
 Individual development.
 Build up employee morale.
 Good relation with trade union.
 Providing reasonable compensation and remuneration.
 Ensure availability of competent and willing work force to the organization.

4.5 Marketing department:

department is the business function that identifies customer needs and wants,
determines which target markets the organization can serve the best design
appropriate products, services and programs to serve these markets. However,
marketing is much more than just an isolated business functioning. It is a philosophy
that guides the entire organization. Mother dairy has a very good marketing
network. Marketing slogan of KMF is “Fresh and pure”.

Role of marketing manager:

  Collecting information for sales forecasting.
 Search for new market area.
 Pricing the products as per the demand.
 Appointing new dealers and distributors.
 Market the product that involves launching, presentation, awareness and
advertisement of the product promotion on certain areas.
 To keep a watch on the action and motives of the competitors
 To have full and perfect knowledge of marketing conditions and policies
 To attend grievances, complaints if any regarding the product and service.

Functions of market department:

 The basic function of this department is to interpret the needs of the

customer and plan the production of such products.
 It sells the product to the customers directly and through network of
distribution.
 It makes a market research regarding the demand for the product, taste and
preference of the customers.
 It prepares plan regarding production of such product and maintains a good
relationship with production department by providing the information
information regarding production.
 It also fixes prices for the product with the consultation of the top-level
management considering its price policy, demand policy and government
policy.
 It also makes the sufficient offers to promote sales.
 It is concerned with designing the advertisement stake for the product.
 It is concerned with the distribution of the product for the required
consumers at required place and time.
 It checks the daily report by the sales representatives, follow-up the letters
and attend to the queries if any.
 It prepares incentive chart; arrange the salaries and other sales follow-up
activities of representatives.
4.6 Finance department:

Finance department is involved in drivers and challenging assignments. There are

three board areas of financial decision-making, capital budgeting, capital structure,
and working capital management. Every organization requires an accounts/finance
department where the circulation of all essential issues like salary
billing,sales,purchase etc, are carried out it acts as a heart of the organization
without whatever may be result of functioning of a unit, the accounting at the same
time, it ensure the results experienced and qualified person identified as purchase
officer.

Functions of Finance department

 Preparation of annual budget.

 Scrutiny of all payments bill.
 Maintain of sales ledgers.
 Salary established ledger-EPR and ESI registers.
 All subsidy books under co-operative societies.
 Income tax and tax deductions at source registers.
 Debtor's ledger.
 Cash book.
 General ledger.
 Preparation of cost sheet.

Objectives:

 To ensure that accounting records of various divisions are properly

maintained.
 To ensure that sales realization is properly accounted and remained the
marketing section from time to time over the debtor’s portion in order to
enable them to collect the dues.
 The account section objective is also to see that regular payments of milk
bill due are made to milk producers on priority.
  To see that payment to the creditors is made within stipulated time.
 Account section has to provide management timely information about the.
financial position of the union and guide them as to viability of the proposals
that come in the course of business activity.
 The other objectives of finance section are to keep the management/boar
appraised of monthly trading and P & L figures.
 To include timely submission of financial statements to auditors and ensure
smooth audit is conducted and give audit reports to management.
 To make cost evaluations where ever their cost exceeds the norms.

4.7 Quality control department:

In KOMUL, at every stage, care is taken to ensure that the customer gets the
products, which have a very high-quality. Hence there is a separate department
called Quality Department. Where the quality testing is done. There is a separate
laboratory for this. Quality control is very essential as to maintain the freshness of
the milk. All the containers, pipes and other equipment’s are washed with hot water
before starting off with new production. There are many tests conducted here. The
packed milk we get will have undergone 3 quality tests. First test is done on raw
milk, which we get from chilling centre. Next before standardization and the last
test before packing. The other tests conducted are:

Table no:4.1

TEST REASON

Temperature Should be below 5 degrees

Clot on boiling If milk curdles soon after boiling milk is

Rejected

Acidity Test To test the extent of acidity

Alcohol Test To check the heat stability of milk

Lactometer To check the density of milk

 Fat test Percentage of fat determined

SNF Test Percentage of SNF determined

SNF=CLR+FAT/4

4.8 MIS Department:

The assistant manager has the control overall the activities of this department. It
helps for collects the information from outside the organization, which are newly
adapted in the other organization, there by helps to adapt new technology in the
organization.

Benefits of the MIS system

 Shifts wise receipts and issue statements.

 Material balance between any period [daily, weekly, monthly].
 Milk conversion statement, quality reports of films, packing materials etc.
 Milk processing, butter, ghee register.