OSSP

DR.
VISHWANATH KARAD MIT WORLD PEACE

UNIVERSITY
SCHOOL OF BUSINESS
MBA SEMESTER I (BATCH 2023-25)
DIV: 1
ORGANIXATIONAL STRUCTURES, SYSTEM AND
PROCESSES
CCA PARAMETER I: INDIVIDUAL
ASSIGNMENT BATCH 2023-25
TITLE: TOTAL QUALITY MANAGEMENT OF PEPSI
NAME OF STUDENT: PRATIK PATIL

ROLL NO.:
DIVISION: I
COURSE CODE
COURSE NAME: ORGANIZATIONAL STRUCTURES, SYSTEM
& PROCESSES
SUBMITTED TO: DR. SONAL MULUK
DATE OF SUBMISSION: 12/09/2023
Total Quality Management of Amul
INTRODUCTION OF COMPANY:
Gujrat Cooperative Milk Marketing Federation Ltd. (GCMMF) established in

November,1973 is India’s largest food product marketing organization with
annual turnover (2018-2019) US$ 4.8 billion. Its daily milk procurement is
approx. 23 million lit per day from 18700 village milk cooperative societies,
18member unions covering 33 districts and 3.6 million milk producing
members. Apex organization of the dairy cooperatives of Gujarat, popularly
known as ‘Amul’, aims to provide remunerative returns to the farmers and also
serve the interest of its consumers by providing quality products which are good
value for money. It operates through 61 sales offices and has a dealer network of
10000 dealers and 10 lakh retailers, which is one of the largest such networks in
India.
GCMMF are into milk industry market with a wide range of dairy products
under the brand name of Amul & Sagar. The country’s largest food company,
Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy
whitener, condensed milk, saturated fats and chocolates. Amul follows a unique
business model, which aims at providing ‘value for money’ products to its
consumer, while protecting the interest of the milk producing farmers who are
its suppliers as well as its owners.
TOTAL QUALITY MANAGEMENT AT AMUL:

The major initiatives taken by the federation towards its path of change
management. In 1994, GCMMF decided to introduce the concept of TQM with
its twin pillars of customer focus & continuous improvement. This brought
employee involvement, waste reduction, and process improvement as tools for
TQM. They made various initiatives like Kaizen, Housekeeping, Small Group
Activities Etc.
As Amul is in the Dairy sector, the only raw material which it has is milk. Since
milk is a perishable commodity and it has a very low shelf life, care has to been
taken, control is one of the dimensions of milk procurement. The information
technology is best utilized at Amul. At the village level they are using AMCUS
(Automated Milk Collection Stations) which has helped in maintaining the
quality, making faster payments to the producers and in saving the collection
time. The Milk collection information at different villages is available to all
dairies (or Unions) to enable them make faster decisions in terms of production
& distribution planning and disease control.
OBJECTIVES OF THE STUDY:
1.To study the TQM practices adopted by Amul dairy industry.

2.To analyze and interpret the TQM factors that are followed in select units to
enhance quality.
3. How Amul Improve their customer service.
4. Total customer satisfaction and how they solve the consumer problems.
5.Quality assurance by Amul.
6. How Amul Eliminated their defects and waste management.
7. To study the Quality Management Practices followed by Amul.
Mission and Vision:
Amul satisfies the taste and nutrition requirements of the customers, of the world
through excellence in marketing by their committed team. Through co-operative
networking, they are committed to offer quality products that provide best value
for money.
Amul’s vision is to provide more and more satisfaction to the farmers, their
customers, employees and distributors.
Marketing Strategies:
Amul is one of the most popular and successful brands in India. Amul has
become has now become a household name in the minds of Indian families. The
first time that most of us came across Amul was when the catchy tune of ‘Amul
Doodh Peetha Hai India’ rang from the television was great tune by Amul.
Amul's product portfolio includes a wide range of dairy products, including
butter, cheese, milk, ice cream, yogurt, and more. Amul’s variety of products
caters to different age groups, lifestyles, and dietary preferences. For example,
Amul's low-fat and sugar-free ice cream products are designed for health-
conscious consumers, while its flavoured milk products are aimed at children
and teenagers.
SWOT Analysis of Amul:

Strengths
Amul is largest food brand in India and Asia with High Quality-
Introduced TQM and Robust distribution network. Amul is market Leader of its sector.
Amul has its own huge Customer base
Weakness
Amul is having high operational cost. Amul is completely dependent on village for its raw
material. Risks of long and complex supply chain system. Have short shelf life on its
products.
Opportunities
Amul has it diversify product portfolio and Amul can penetrate international markets.
Threats
Amul has competitors like Kwality Walls. Growing price of milk and milk products. The
yield of India’s cattle is much lower than other countries
Literature Review:
According to British Standard BS 7850, TQM is defined as, “Management

philosophy and company practices that aim to harness the human and material
resources of an organization in the most effective way to achieve the objectives
of the organization.”
Saroja, G. (1999) stated that there are four basic principles that explain the
nature of Total Quality Management: 1) Concern of the customer — what are
the needs and wants of your customer? 2) Knowing the quality standards of the
product and knowing the facts at all levels for continuous improvement. 3)
People-based management where people must understand what to do and how
to do in order to develop or progress on their work. 4) Total Quality
Management is aimed at Continuous Improvement.
According to Kujalo, J. (2002) stated that TQM is one of the most important
management innovations of the 20th century. It has more influence on
contemporary management practice than any other management movement. He
also reported that the origin of Total Quality Management can be traced back to
1949, when the union of Japanese scientist and engineers formed a committee
of scholars, engineers, and government officials devoted to improve Japanese
productivity and quality of life.
Brophy, Peter (2007) stated that libraries are facing different circumstances, in
terms of providing good services and content to delivered into the users’
workflows. In order to assess performance in this changing environment, much
greater emphasis will be required to be placed on qualitative methods, including
ethnographic approaches, externally-moderated, reflective self-evaluation and
narrative-based practice. Libraries are changing and being challenged to
reinvent themselves within the workflows. If these circumstances are to be met,
then innovative and robust methods also need to be developed to assess
performance in this new millennium.
Complete Quality Control in Jordan's Top Rank of Milk Products Mujbil Al-
Marsumi Jordan Journal of Mechanical and Industrial Engineering, Volume 3,
Number 1, January 2019. The TQM activities adopted by Jordan's five milk
processing units were investigated by Mujbil Al-Marsumi (2019). Research
was carried out on the basis of the five-point Likert scale for TQM variables
such as Instilling Quality Culture, Employee Concentration, and Operations
Focus like Performance Improvement, Consumer Focus and Strategic
Competitive Advantage. TQM factors were considered as the independent
variables for each company and the quantity in tons of milk products was
considered as the dependent variable and the correlation coefficient was used to
calculate the relationship between the TQM factor and quantity in tons of milk
products and established that the highest score was achieved by the most
modern milk processing units, while the oldest score was achieved. The
minimum and the least modern scored and concluded that the coefficient of
correlation has a clear and consistent linear relationship between tons of milk
quantity and TQM variables. The future research could focus on the perception
of employees in production-oriented concern in TQM practices.
Students’ Learning:
The TQM practices adopted by Amul dairy industry with its twin pillars of
customer focus & continuous improvement. This brought employee
involvement, waste reduction, and process improvement as tools for TQM.
They made various initiatives like Kaizen, Housekeeping, small Group
Activities Etc.
Interpret the TQM factors that are followed in select units to enhance total
quality management initiative Amul went on to implement quality management
system of international standard. Amul has been the first dairy in India to get
accredited with certification of ISO 2200:2005 & ISO 9001 for its operations
and plants.
Amul improves their customer service by selling Amul products at low cost,
they have managed to reach their target audience and provide them with a wide
range of products to choose from. Being the first Indian affordable dairy brand
to market condensed milk, it has built a significant consumer base among the
lower-income groups in the country.
Amul is committed to produce wholesome and safe foods of excellent quality to
remain market leader through deployment of quality management systems,
state-of-art-technology, innovation and eco-friendly operations to achieve of
satisfaction customers and betterment of milk producers.
Amul also have adopted re cycling of treated effluent of our Effluent treatment
plant for internal usage. They also deploying Foot printing exercise for
measuring GHG emissions, water consumption, waste generation, chemical
consumption across all the operational functions.

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DR.

VISHWANATH KARAD MIT WORLD PEACE

TITLE: TOTAL QUALITY MANAGEMENT OF PEPSI

NAME OF STUDENT: PRATIK PATIL

Gujrat Cooperative Milk Marketing Federation Ltd. (GCMMF) established in

TOTAL QUALITY MANAGEMENT AT AMUL:

1.To study the TQM practices adopted by Amul dairy industry.

Mission and Vision:

SWOT Analysis of Amul:

According to British Standard BS 7850, TQM is defined as, “Management

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