Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 3, Issue 8; October-December, 2016, pp. 797-799
© Krishi Sanskriti Publications
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A Study of the Total Quality Management at

AMUL
Ruchira Prasad
Dept. of Management, Dr.B.R.Ambedkar University, Agra
E-mail: ruchi_1508@rediffmail.com

Abstract—Total Quality Management is a very wide term which through its dairy cooperative movement. The Kaira District
affects performance efficiency of any organization. In this era of Cooperative Milk Producers’ Union Limited, Anand became
technology when we are talking about accuracy, TQM initiatives help the focal point of dairy development in the entire region and
an organization in achieving its growth motives easily. In order to AMUL emerges as one of the most recognized brands in India,
achieve the performance efficiency an organization has to undertake
TQM initiatives with all variables i.e, from the procurement to the
ahead of many International brands.
customer satisfaction. In this study the researcher has tried to study Each level in the Anand Pattern is operationally self sufficient.
the various initiatives taken by AMUL to improve its organizational They do not have to look at the other level for any help. All
efficiency. The Amul pattern has been a model for the establishment
the three levels support each other for the success of the
of other dairy co-operatives in the country. Since the study is being
done on the co-operative model TQM practices have been analysed
system.
at all the three levels of the structure. The researcher has also tried
to bring out its effect of these factors have helped AMUL to survive in
2. OBJECTIVES OF THE STUDY :
this competitive environment.
In order to understand the significance of the study the
Keywords: TQM, AMUL, dairy co-operatives, technology, researcher has formulated various objectives
performance measurement 1. Various TQM initiatives at the organization.
1. INTRODUCTION 2. Relationship of TQM & Performance Management
Total Quality management is a process in which continuous 3. REVIEW OF LITERATURE
improvements in the products, services, processes takes place.
It focuses on the customer needs and expectations to enhance According to B.Bowonder, B R Raghu Prasad and Anup Kotla
customer satisfaction and firm performance. Performance in his paper “ICT Application in a Dairy Industry: The e-
Measurement is not only a way of determining what has Experience of Amul” he has analysed the use of ICT in the
already happened, but it is also a way of getting people to act dairy industry by the Gujarat Cooperative Milk Marketing
in ways that will bring about desired future outcomes. Federation Ltd. The system makes it easy for the farmers to
Aligning performance measurement with organizational goals get the cash payment as soon as the milk is delivered. The
is in a way a challenge for the organization Nowadays, Amul experience indicates that if properly designed and
businesses are operating in very tough environment. implemented, the rural poor can benefit from ICT platforms.
Customers are becoming more and more demanding and Customization of IT platforms for use in rural communities is
desire products at ever lower prices. For all this there is a emerging as a major opportunity for change.
requirement of accuracy, timeliness, convenience, According to Satbir Singh, Euan Fleming and Tim Coelli in
responsiveness, quality and reliability of the services offered his paper “Efficiency and Productivity Analysis of
by them. For this we further require an efficient supply chain Cooperative Dairy Plants in Haryana and Punjab States of
management which is a network of supplier, manufacturing,
India” analysis the impact of the liberalisation policy on the
assembly, distribution, and logistics facilities that perform the Cooperative dairy plants in India. According to his findings
functions of procurement of materials, transformation of these privatisation alone is not the answer to higher performance in
materials into intermediate and finished products, and the
the processing sector of the industry. Plant managers and
distribution of these finished products to customers. public policy makers should make efforts to achieve higher
India has emerged as the largest milk producing country in the performance through actions on both the demand and supply
world after Operation Flood and Gujarat emerges as the most side of the milk and milk products industry.
successful State in terms of milk and milk product production
798 Ruchira Prasad

According to Sanjib Dutta in his article “Innovations in Rural District Level

India” has said AMUL has changed rural India by helping
farmers gain higher returns through a more effective Anand Milk Union Ltd’s (Amul’s) plants have become the
utilization of resources by its innovative supply chain and first in the food industry to comply with the ISO 22000:2005
logistics management. standards of food safety management. The food safety
management systems in Amul’s dairy plants at Anand, Food
4. TQM INITIATIVES AT AMUL Complex at Mogar and Kheda and satellite dairy at Khatraj
have been accredited as conforming to the international
4.1Village Level: standards. The accreditation is aligned with recognition of
quality management systems at the three product units of
Procurement: Amul. These units have sustained compliance with the
As Amul is in the Dairy sector, the only raw material which it standards of ISO 9001:2000, CODEX HACCP (Hazard
has is milk. Since milk is a perishable commodity and it has a Analysis and Critical Control Points), and GMP (Good
very low shelf life, care has to been taken Control is one of Manufacturing Practices) since 19996.
thedimension of milk procurement.The information The synergy between the standards assured synchronised
technology is best utilized at Amul. At the village level they control of all elements in the food chain from raw milk,
are using AMCUS( Automated Milk Collection Stations) primary milk producers, milk procurement, reception and
which has helped in maintaining the quality, making faster chilling of milk to production processes, utilities including
payments to the producers and in saving the collection water, air, steam, engineering, manpower, sanitation,
time.The Milk collection information at different villages are communication, hygiene, packaging, storage, crisis
available to all dairies (or Unions) to enable them make faster management and overall environment at Amul plants. The
decisions in terms of production & distribution planning and concerted control throughout the food chain ensures
disease control.. In collecting and supplying raw milk from considerably safe, healthy and superior quality dairy and food
milk producers to the dairy plants, 80 per cent of Amul's products.
village cooperative societies have been conforming to the
standard of ISO 9001:2000. To further increase the efficiency of the manufacturing
process, the federation has established a plant for
Logistics manufacturing the packaging pouches. Pouches are the most
popular, convenient and accepted packaging for marketing of
To reduce the transportation expenses Amul has introduced
liquid milk. The Packaging Film Project (PFP) was established
BMC (Bulk Milk Cooling System) this is a refrigerated
to give a competitive edge to the Co-operative Dairy, by
container having a capacity of 20 liters. The Union can collect
ensuring access to the best quality food grade packaging
the milk from such societies having this unit only once a day.
pouch film, for high speed pouch filling machines, that operate
To encourage the societies to take this cooler the Union is
at speeds 75 per cent higher than at present.
paying a commission of 0.12 paisa per liter. Outsourcing to
contractors have helped in cost effectiveness.Societies are at a State Level (Federation)
distance, where the van cannot reach within the stipulated time
the union has established chilling centers for them. Federation is responsible for marketing of the products so
employees are an important efficiency indicator. Various
Cattle Care programmes have been initiated for their development :
To improve the breed of the cattle semen bank have been Self Management Leadership Programme: The objective of
formed.Cattle feed is provided at a very reasonable rate this Programme is to make the employees a better leader
through its village societies known as Amul Daan. mineral through improved self esteem, to improve the quality of
mixture powder also given to overcome the weakness communication and to relieve stress so as to give better output
inherited due to lactation and to improve the reproductive to the organization. For this visits to Brahmakumaris, Mount
efficiency. For genetic improvement Artificial Insemination Abu for them
was introduced.
HoshinKanri: It creates a shared vision across the organization
Veterinary Facilities: so that every employee is able to find his/her role in strategic
thrust area.
For availability of doctors at doorstep Mobile veterinary vans
and Mobile Diagnostic Laboratories were established.Union ASC/BRM/Friday Meetings: The objective is to create a
also organizes FIP Programme. In this they identify the culture of flatter organisation& encourage shared vision/goal
infertile animals and tag them. Then continuously 4 camps are of the department. This helps in bringing transparency and
organized for them in which they are provided with the cattle information sharing, employee participation in decision
feed, nutrition and mineral mixture powder. making

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 3, Issue 8; October-December, 2016
A Study of the Total Quality Management at AMUL 799

AQC: AQC used as a tool for Business Consultancy to WDs to 5. CONCLUSION

improve their distribution efficiency. It is an excellent review
forum for monitoring. From the above study it is clear that GCMMF realized that it
had to become more customer centered. This meant that it
SGA: SGA stands for Small Group activity. In this the work required to pay close attention to the customers need and
force is divided into different groups having a group leader, quality. To conform to this it launched the concept of ‘Total
facilitator and 4-5 members. The projects are generally Quality Management” or TQM to ensure the high quality of
undertaken for 4-5 months time. The major areas which are the products from the starting point (i.e. the village farmer
being looked upon are: Improve ROI & Sales, Reduction in who supplied milk) right through the value chain until it
2nd Leg Dispatch Time, Inventory Management, Improve breached the consumer. This meant the involvement of
Market Reputation, Cost Control (Fax, Telephone), New farmers, transporters, factory personnel, wholesalers and
Product Development. retailers each of whom had a role to play.
Kaizen: Kaizen is basically small improvements carried out by GCMMF has to cater to two extremes i.e. the farmers at one
individuals in his/her day to day work. end and the consumers at the other. They have to satisfy both
The purpose of kaizen movement is to create a culture of the ends i.e.; give maximum amount for the milk given to the
continuous improvement in the organisation.Best Kaizen is farmers and the best product at lower price. To meet the
rewarded requirements of the both GCMMF took the help of TQM and
information Technology to gain control on the procurement,
Kaizens are being done on thrust areas, systems & processes, processing and distribution functions.
communication, coordination, learning, housekeeping, etc.
Housekeeping: The housekeeping aspect is based upon 5’S REFERENCES
principle: [1] Singh S.P., Kelley L. Paul; Amul: An Experiment in Rural
Segregation (Seri) Economic Development; 1981 edition.
[2] Taimni K.K.; Amul and Anand Pattern of Milk Cooperatives.
Arrangement (Seition) [3] Kurien V.; Opposition to Change, The Anand Pattern: A Case
Cleanliness (Seiso) Study; Published by NDDB, Anand.
[4] Annual Report of AMUL; 2013-14; 2014-15.
Maintenance of Standards (Seiketsu) [5] Annual Repot KAIRA DISTRICT CO – OPERATIVE MILK
Discipline (Shitsuke) PRODUCERS’ UNION LIMITED, ANAND.

This concept was further extended to the Dealers and Websites

Wholesalers. The evaluation was based upon the cleanliness [1] www.amul.coop
maintained, Damaged Stock Management, Pest/Rodent [2] www.amul.com
Control, Ventilation, Temperature (Cold Storage, Deep Freeze
[3] www.india-seminar.com
Cold room, Product Temperature, Ante-Room Temperature,
[4] www.indiadairy.com
Functional Thermometer).
These practices have helped inculcating awareness to keeping
their work area clean and to maintain a proper inventory of the
products, further managing the wastage efficiently.

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 3, Issue 8; October-December, 2016