Program & Batch:

PGDM (2015-17)

Term:

Term 3

Course Name:

Operations Management

Name of the faculty:

Dr. R. K. Singh

Topic/ Title :

General Operations Management in DFM Foods

Ltd.

Group Number:

10

Group Members:

Sl.

Roll No.

Name

1
2
3
4
5
6
7

150103149
150103062
150101079
150102019
150102089
150102099
150103180

Sandip Ghosh
Faraz Zeeshan
Nitish Agarwal
Ankur Tripathi
Shipra
Suman Gon
Sumedha Anand

Acknowledgement
We as Group 10 members would like to extend our sincere regards and
heartiest gratitude to our esteemed professor, Dr. R. K. Singh for his
persistent endeavor and outstanding support in form of moral and
course fundamentals to our group during the entire project. His
teachings greatly enhanced our understanding in a study on
Operations Management of DFM Foods Ltd and helped to understand
the concept of our project topic.

We would also like to express our sincere gratitude and special thanks
to all the department points of contacts and students, who out of their
hectic schedule took out their valuable time to extend support, provide
relevant guidance, facts and figures to execute the project.

Contents
Executive
Summary
4
Company
Background
..5
Products
.6
Inventory
Management
..7
Process
Design
8
Quality
Process
..9
Distribution
10
Challenges..

11
References
.12

Executive Summary
DFM Foods Ltd. is a family owned company operating from north India in
Indian food industry. This is a report to study and analyze the Operations
Management of the company.
This report is focusing on these aspects of Operation Management at DFM
Foods Ltd.:

Inventory Management
Process Management
Managing For quality
Distribution

This report consists of analysis of many aspects of supply chain

management, the issues that are not still addressed in the DFM Foods Ltd.s
Supply chain management, and the proposed solutions of those issues.

Company Background
17th March 1993 DFM Foods Ltd. Incorporated in Delhi as Public Limited
Company
The Delhi Flour Mills Company Limited, Mohit Jain and R. P. Jain Promotors
of DFM Foods Ltd.
Objective Manufacturing of snack food products
Purchased 2 undertakings Flavour Foods Division and Jwala Flour Mills
Capacity of Flavour Foods Division 2808 TPA
Capacity of Jwala Flour Mills 1, 50,000 TPA
Present Business of the company is Flour Milling and Extruded Snack Foods.
DFM has 2 processing facilities, one in the Greater NOIDA region, and the
other in Ghaziabad both in close proximity to its corporate office in Delhi.
These facilities make use of state-of-the-art manufacturing equipment to
ensure consistency and quality of their products.
Companys Vision

With a range of innovative, exciting products and a proper distribution

network which spans along the lengths of the country, DFM wants to become
Indias leading snack food provider.
Companys Mission
To bring about excitement in people's lives through our innovative, high
quality snacks and brands, that inspire fun, joy and happiness! In doing so,
we strive to maximize value for all our stakeholders, while maintaining the
highest standards of honesty and integrity.
Through their high quality, innovative snacks and brands that inspire
happiness, joy and fun, DFM wants to bring excitement in the lives of people
and to maximize value for their stakeholders, while keeping their levels of
integrity and honesty high.

Products

1. CRAX Corn Rings:

This products was launched in the year 1964, and was first
of its kind to hit the shelves and it did it with a Boom! It
became so popular so quickly especially among the kids. It
is Available in 2 Pack sizes of INR 5 & 10.

2. CRAX Namkeens:
These are made with recipe of traditional Indian namkeen
and offered high quality at moderate prices.
It was available in five pack sizes of INR 2, 5, 10, 15, and
the other variant of 300 gm pack, the price of which varies
from variant to variant.

3. NATKHAT:
These are also baked like CRAX and are available only is
one pack size of INR 2.

Inventory Management
Supplier at DFM Foods Ltd play an important role in inventory management.
Products which are perishable in nature are kept in cold storage which is a
part of suppliers infrastructure. Logistics efficiency and the ability to store
such products and the basis on which the contract with supplier is made.
Since there is a low uncertainty in demand the term risk hedging is well
suited for the supply chain. The production is made against advance
payments only.
For raw material DFM Foods Ltd.s stores inventory worth 36 hours only in its
premises. For packaging material such as packet film, the inventory stored is
worth 2 - 3 days of production. The carton or secondary packaging material
is stocked on the basis of production in 15 days.

Layout
General Layout at a normal food processing plant is like the one show below

At DFM Food Ltd.s the incoming material area is used to keep the raw
material, from there it is take for food processing in the plant. Once
processed, it is moved to packing. After which it goes to secondary packing
stage, where cartons are filled to move to dispatch, from where the logistic
partner picks it up.

This is a view of the above mentioned process:

Process Design
DFM Foods Ltd. has fully automated machines of which 99 percent are
imported

Washing

Packing

Seconfa
ry
Packing

Drying

Seasoni
ng
Coating

Dispatch

Milling

Frying

Mix
Dough

Shaping

Quality Process
At DFM Foods Ltd. it is made sure that each and every pack is up to
standards.
Raw material in checked for:

Moisture
Size
Foreign material

Temperature and frying time are the key factors which are auto controlled in
the main process
Outgoing final products is checked:

For
For
For
For

acidity
salt
moisture
oil percentage

Microbiology testing is not done on these products since they are fried.

10

Distribution
DFM Foods Ltd.s distribution network is divided on the basis of zones which
it caters to. Sales force tasks basic organizational structure is shown in the
chart below

The person who is responsible for all the sales operations in DFM Food Ltd. is
the National Manager, who handles sales of East, West, North and South
zones. Each zone has its own sales task force and managers.
Based on the feedback that the sales teams of various zones gets, it predicts
the monthly and seasonal expected sales in the area. Accordingly the
production is increased and is kept ready for transportation.
Around 55 carry forward agents take care of the transportation of the goods
from the factory. Those carry forward agents keep the goods into their
warehouses and from these warehouses the goods are taken by roughly 500

11

distributors in the country. These distributors provide the goods to the retail
outlets as per their demands.

Challenges
The growing number of complaints about the taste and the packaging is the
main area of concern in DFM Foods Ltd.
Issues:

Company is not able to service its customers online. DFM Foods Ltd.
has ties with Associations to provide online capabilities in its supply
chain.
There is also lack of waste management capabilities in DFM Foods
Ltd.s food processing unit.

Solutions:

Some enterprise tools like SAP, ERP etc. are needed at DFM Foods Ltd.
for online order placing capabilities
This will act as a Value addition to DFM Foods Ltd.s processing
capabilities, some benefits are given below:
1. A large number of customers can be served
2. Would be able to meet the fluctuating demand of the market
3. To plan for events in advance, data analytics is needed to identify
future prospects
4. Centralized supply chain management will be helpful in
managing franchises, offshore businesses and exports.

DFM Foods Ltd. can opt a process for waste management, which will
include disposing and utilizing the waste generated from its factories.
This will help DFM Foods Ltd. to market itself as an environment
friendly organization and a responsible company. In these
environments where the customer is highly sensitive, these kind of
features and benefits turn out to be the USPs.

12

References:
www.dfmfoods.com
www.dfmfoods.com/download/annualreport/2014-15.pdf

13