A PROJECT REPORT ON:

Implementing a New Supply Chain Management System for

Amul Products

Submitted to:
Dr. Shankha Sengupta

Submitted by:
Vivekananda Kukkala
Enrol No: 23FMPCHH030016
MBA (Weekend Prog.) 2022-24

HYDERABAD

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 CONTENTS
Sl No Particulars Page No

1. Introduction of the project. 2

2. Root cause analysis of the project. 3

3. Project planning detailing SOW and Project Charter. 3

SOW and Charter should be in detail highlighting the project
4. requirements, deliverables, milestones, costing, responsible 4
team members, deadlines.
5. Types of contracts 6

6. Project scheduling : Network development, CPM, PERT. 7

7. Resource Loading and Levelling 7

8. Earned value analysis: calculating BC, AC, EV. 7

9. Risk analysis: Calculating CIF, CLF. 8

Project quality management: Using the 7 SQC tools towards
10. 8
project quality determination.
11. Project execution: Stages involved. 8

12. Project closure and handover. 9

13. Final thoughts on the Project. 9

References 9

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 1. Introduction of the project
Overview of Amul: Amul, a brand managed by the Gujarat Cooperative Milk Marketing
Federation Ltd. (GCMMF), is India’s largest dairy cooperative and a prominent player in the
global dairy industry. Amul, an acronym for Anand Milk Union Limited, is an Indian
multinational cooperative society headquartered in Anand, Gujarat. It operates under the
Gujarat Cooperative Milk Marketing Federation Limited and is overseen by the Department of
Cooperation, Government of Gujarat. The organization is collectively managed by 3.6 million
milk producers.

The cooperative was founded in 1946 by Tribhuvandas Kishibhai Patel, who served as its
chairman until his retirement in the 1970s. In 1949, Patel brought on Verghese Kurien as the
general manager, where Kurien led the cooperative's technical and marketing efforts. After
Patel's passing in 1994, Kurien briefly assumed the role of chairman and is widely credited
with Amul's marketing success.

Figure 1: Amul official logo [1]

Purpose and Scope of the Project: This project aims to implement a new supply chain
management system to enhance operational efficiency, reduce costs, and improve delivery
times for Amul products.

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 Importance of a New Supply Chain Management System: The new system will address
existing challenges, streamline operations, and ensure that Amul can meet growing demand
while maintaining high standards of quality and freshness.

2. Root cause analysis of the project

Current Issues with the Existing Supply Chain System:
 Inefficiencies in inventory management leading to wastage.
 Delays in distribution affecting product freshness.
 High operational costs due to outdated systems.
 Limited integration with modern technology.
Impact of These Problems:
 Reduced profitability due to wastage and high costs.
 Customer dissatisfaction due to delays and compromised product quality.
 Inability to scale operations efficiently.

Figure 2: Root-Cause Analysis Templates

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3. Project Planning detailing SOW and Project Charter

 Statement of Work (SOW):

o Project Objectives: Implement a state-of-the-art supply chain management
system to improve efficiency, reduce costs, and ensure timely delivery of
products.
o Project Scope: Cover all aspects of the supply chain, from procurement of raw
materials to distribution of finished products.
o Deliverables: New supply chain software, integrated processes, trained staff,
and a monitoring and reporting system.
o Milestones: System design, pilot testing, full-scale implementation.
o Cost Estimates: Budget for software, training, hardware upgrades, and process
re-engineering.
o Team Members and Responsibilities: Project manager, IT team, operations
team, supply chain experts, external consultants.
o Deadlines: Detailed timeline outlining project phases and key milestones.
 Project Charter:
o Purpose and Objectives: Clearly defined goals and objectives for the new
system.
o Stakeholders: Identification of key stakeholders including internal teams and
external partners.
o Roles and Responsibilities: Detailed roles for each team member.
o Budget and Resources: Allocation of financial and human resources.
o Timeline: Specific timeline with key milestones.

4. SOW and Charter should be in detail highlighting the project

requirements, deliverables, milestones, costing, responsible team
members, deadlines.

 Enhance operational efficiency across Amul's supply chain.

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  Reduce wastage and operational costs.
 Improve delivery times and maintain product quality.
Project Scope:
 Comprehensive overhaul of existing supply chain processes.
 Integration of advanced software solutions.
 Training for staff on new systems.
 Implementation across all Amul processing and distribution units.
Deliverables:
1. Supply Chain Software: Selection and customization of a suitable supply chain
management system.
2. Process Integration: Streamlined processes for procurement, production, and
distribution.
3. Staff Training: Training programs for employees on the new system.
4. Monitoring System: A real-time monitoring and reporting system for tracking
performance metrics.
Milestones:
1. Requirement Analysis: Complete by Month 1
2. Vendor Selection: Complete by Month 2
3. System Design: Complete by Month 3
4. Pilot Testing: Complete by Month 5
5. Full-scale Implementation: Complete by Month 8
6. Staff Training and Onboarding: Complete by Month 9
7. Final Review and Optimization: Complete by Month 10
Cost Estimates:
 Software: $500,000
 Consultancy Services: $200,000
 Hardware Upgrades: $150,000
 Training Programs: $100,000
 Contingency: $50,000
 Total Budget: $1,000,000
Responsible Team Members:
 Project Manager: Oversees the project execution and ensures timelines are met.
 IT Team: Responsible for software integration and customization.
 Operations Team: Manages process changes and implementation.

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  Supply Chain Experts: Provide insights and strategies for optimization.
 External Consultants: Offer expertise and guidance throughout the project.
 Training Coordinators: Develop and conduct training programs for staff.
Deadlines:
 Project Start: Month 1
 Project End: Month 10
Stakeholders:
 Internal:
o Amul Executive Board
o Operations Department
o IT Department
o Procurement Department
o Distribution Department
o Quality Assurance Department
 External:
o Software Vendors
o Consultancy Firms
o Hardware Suppliers
Roles and Responsibilities:
 Project Manager: Leading the project, ensuring alignment with objectives, managing
resources, and communication with stakeholders.
 IT Team: Implementing and integrating the new software, ensuring system
functionality and security.
 Operations Team: Adjusting operational processes to fit the new system, coordinating
with different departments.
 Supply Chain Experts: Advising on best practices, ensuring the new system meets
operational needs.
 External Consultants: Providing specialized knowledge, ensuring the project stays on
track.
 Training Coordinators: Developing and delivering training programs to staff.
Budget and Resources:
 Financial Resources: $1,000,000 allocated for software, consultancy, hardware,
training, and contingencies.

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 Human Resources: Internal teams from IT, Operations, Procurement, Distribution,
and Quality Assurance departments, along with external consultants and vendors.

5. Types of Contracts
 Contracts Developed:
o Software procurement contracts with technology vendors.
o Consultancy contracts for supply chain experts.
o Supplier agreements for hardware and infrastructure upgrades.
 Justification for Chosen Contracts:
o Software Contracts: Ensuring the best technology solution with ongoing
support.
o Consultancy Contracts: Leveraging external expertise for effective
implementation.
o Supplier Agreements: Securing necessary hardware and infrastructure within
budget.

6. Project Scheduling
 Development of Project Activities:
o System design and requirement analysis.
o Vendor selection and contract negotiations.
o Software development and customization.
o Pilot testing and feedback integration.
o Full-scale implementation and training.
o Monitoring and optimization.
 Gantt Charts:
o Visual representation of the project schedule with timelines for each activity.
 Network Development Using CPM and PERT:
o CPM: Identifying the critical path to ensure timely project completion.
o PERT: Analyzing the project timeline for potential delays and adjustments.
 Identification of the Critical Path and Analysis:
o Critical Path: Detailed analysis to identify activities that must be completed on
time to avoid project delays.

7. Resource Loading and Levelling

 Resource Allocation:
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 o Allocation of resources to different activities based on their criticality.
 Optimization Strategies:
o Strategies for leveling resources to avoid bottlenecks and ensure smooth
project execution.

8. Earned Value Analysis

 Calculation of BC, AC, and EV:

o BC: Budgeted Cost for planned activities.
o AC: Actual Cost incurred during project execution.
o EV: Earned Value representing the value of work performed.
 Analysis of Earned Value Metrics:
o Interpretation of BC, AC, and EV to assess project performance and make
necessary adjustments.

9. Risk Analysis
 Calculation of CIF and CLF:
o CIF: Criticality Index Factor for identifying high-risk activities.
o CLF: Criticality Likelihood Factor for assessing the probability of risks.
 Identification and Assessment of Project Risks:
o Detailed risk assessment to identify potential issues.
 Mitigation Strategies:
o Plans to mitigate identified risks and minimize their impact.

10. Project Quality Management

 Application of the 7 SQC Tools:
o Tools such as control charts, histograms, Pareto charts to ensure quality.
 Analysis of Quality Costs:
o Assessing costs related to ensuring quality and their impact on the project.

11. Project Execution

 Stages Involved in Project Execution:

o Detailed stages from initiation to completion, including all key activities and
milestones.
 Monitoring and Controlling Mechanisms:

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 o Tools and methods for monitoring project progress and ensuring control.

12. Project Closure and Handover

 Closing Activities:
o Final activities to close the project and ensure all deliverables are met.
 Handover Process:
o Procedures for handing over the new system to the operational team.
 Final Documentation and Reporting:
o Complete documentation and final project report for reference.

13. Final Thoughts

 Summary of Project Outcomes:

o Summary of what was achieved and how the new system improved operations.
 Lessons Learned:
o Key lessons from the project implementation.
 Recommendations for Future Projects:
o Suggestions for future improvements based on project experience.
References:

1. Laidlaw, Alexander Fraser (1977). Cooperatives and the Poor: A View from Within
the Cooperative Movement : a Development Study Prepared for the International
Cooperative Alliance and the Canadian International Development Agency. Archived
from the original on 4 April 2023. Retrieved 11 March 2023.
2. Singh, Govind; Rosencranz, Armin (20 October 2021). "Cows and their milk". The
Statesman. Archived from the original on 3 January 2023. Retrieved 3 June 2022.
3. Gupta, Reeta. "General Management Review". www.etgmr.com. Archived from the
original on 2 March 2004. Retrieved 9 March 2023.
4. Heredia, Ruth (1997). The Amul India Story. New Delhi: Tata Mc-Graw Hill. p. 65.
ISBN 978-0-07-463160-7. Archived from the original on 9 March 2023. Retrieved 1
July 2020.
5. Misra, Udit (10 September 2012). "V. Kurien: India's White Knight". Forbes India.
Archived from the original on 2 April 2019. Retrieved 11 September 2012.