Contents

Introduction
WhatisOperationsManagement
OverviewofBMPCUL(MilkVita)
FinancialAnalysisofBMPCUL
MarketingMixAnalysisofBMPCUL
OverviewofMilkVitaProducts
OverviewofPasteurizedMilk
OverviewofMirpurBranch
MarketingStrategiesandCustomers
OperationsManagementofBMPCUL
Problems in Achieving Efficiency in Operations
Management
Recommendation
Conclusion

MILKVITA
MilkVitais the trade name under which the dairy products manufactured by
BMPCUL are marketed.

BMPCUL at a Glance :

Name of the Organization : Bangladesh Milk Producers Co-operative Union Limited

Brand Name : Milk Vita
Inception of the Organization : Established in 1973 by the Government of
Bangladesh based upon FAO/UNDP recommendations, immediately after the liberation
Location of the Organization : Head office, 139-140, Tejgaon I/A, Dugdha
Bhaban,
Dhaka-1208
Total Land : 99.40 acre
Total No. of Plants: 36
Present Employees : 1117
Primary Society : 1836
Member Society : 79081
Direct Beneficiary: 7.55 lakh
Major Products : Pasteurized Milk, UHT Milk, Ice-cream,
Powder Milk, Curd, Ghee, Butter,
Chocolate, Rashmalai.
Website : http://www.milkvitabd.com//

war.

What is Operations Management

Operations management may be
defined as the design, operation,
and improvement of the systems
that creates the firms primary
products and services.

OverviewofBMPCUL(MilkVita)
Objective:

To ensure faire prices for the poor, marginal and landless milk producing farmer

To ensure regular supply of fresh milk and milk product

Milk Shed Areas :

Tangail, Manikganj, Tekerhat, Baghabarighat, Rangpur, and Sreenagar.

Milk Supply Network :

collects milk through networks established by its primary co-operative societies

transported to the nearest plant for preliminary processing

the production of liquid milk, cream, ice-cream, flavoured milk, and sweet yogur
Operational Areas :

Division
7

District
23

Up-Zilla
132

Union
490

Village
2125
Market Conditoin:

Market Share: Market Takeover of BMPCUL is 50%.

Competitors: Aarong, Aftab, Akiz, Amo, Bikrampur, Pran and Rangpur Dairy
Supply and Demand of products in the market:Daily demand 300000 liters, sells 260000 liters
daily

OverviewofBMPCUL(MilkVita)
Cost&Income:

expenses of 16742 lakh and earns 17432.66 lakh in the financial year of 2009-2010

earns a profit of Tk 2.5 per litre. Total profit in this year is 690.66 lakh
BeneficiariesoftheOrganization:

160000 farmer-members under the fold of 1836 village Primary Milk Producers Cooperative Societies.

700000 dependent farmer family members.

Above 1100 plants employees.

Micro credit facilities to 2000 milk producing farmers.

6000 engaged in Transportation/distribution process

Enormous numbers of consumers.

More than 300 primary milk producing societies.

Services Provided by BMPCUL :

Cattle Development and Management Training

Cattle Treatment

Co-op Management

Balanced Cattle Feed Supply Services

Micro-credit

Vaccination

Green Grass Cutting and seeds of grass

Artificial Insemination

Higher milk price at the farmer level

Guaranteed market of milk.

OverviewofBMPCUL(MilkVita)

ContributiontotheEconomy:
a very significant role in increasing income for
the poor, landless and marginal milk producing
farmers
aiding reduction of powder milk import
thereby saving a huge amount of hard
earned foreign currency every year
Governmental Role:
government of Bangladesh always
supported the efforts of the society

FinancialAnalysisofBMPCUL

MarketingMixAnalysisofBMPCUL
The set of controllable tactical marketing tools - products, price, place and
promotion the firm blends to produce the response it wants in the target
market.

Price

Product

Target
Market

Promotion
Fig: Integrated market mix

Place

OverviewofMilkVitaProducts
PasteurizedMilk
MilkVitaLiquidMilk,100%Freshandfrozen
liquidmilk
Preservedintetrapack

Fresh Milk

Flavored Milk
1literpacket:Production Cost Taka 12 Price Taka

MilkVitaCream
415GramTin:
Production CostTaka44.10
PriceTaka48.
Milk Vita Sweet Curd
Present Price Taka 120
1literbox:
Production Cost Taka 88
Milk Vita Rosh Malai
Present Price Taka 225
1literbox:
Production Cost Taka 129

Full Cream Milk Powder

1KGpacket:-Production Cost Taka 675
Present Price Taka 695.00

Milk Vita Ice-Cream

1literbox:
Production Cost Taka 78.50
Price Taka 105

Milk Vita Chocolate

1packet(20Gram):
Production Cost Taka 5
Price Taka 7.

Milk Vita Lollys

65mlpacket:
Production Cost Taka 4.30
Price Taka 6

OverviewofPasteurizedMilk
meets the nutrition of protein in daily life
Vita pasteurized milks ingredients are Fat 3.5% fat (BSTI approved),8% Solid non
fat (SNF), Protein, Lactose , Vitamins, Minerals.
pasteurization center of Milk Vita : Baghabari, Tangail and
Manikganj, Natore and Srinagar chilling centers for pasteurization
Pasteurization processing is done through a pasteurizer machine
3.5% fat (BSTI) and 8% solid non fat (SNF) are mixed in pasteurized
milk
preserved below 4 degree Celsius or 40 degree Fahrenheit
temperature
Supply of milk is daily 250,000 liters. Daily demand is 240000 liters
the financial year of 2009-2010, the total cost 35365.25 lakh,
total income is 36947.21 lakh
Marketing network is spread over Dhaka, Chittagong, Sylhet,
Comilla, Feni, Noakhali & B. Baria
Market price for a half liter packet is 28 and for one liter packet is
52.

OverviewofMirpurBranch

situated in Mirpur-7 of Dhaka

has 1 chilling center and 3 pasteurization center
Chilled milk is brought from Baghabari and Tangail chilling center
for further processing
has its own distribution center just beside of it
Daily production of pasteurized milk is 300000 liter. It also
produces UHT Milk, Ice-cream, Rosh Malai and Curd

Target Customers :
Segmentation :
Metropolitan cities are the focus targets. The cities include
mainly Dhaka, Chittagong, Rajshahi, Sylhet and Noakhali,
Srimangal.
Targeting :
Above 2 years old children and persons are consumers of Milk
Vita products.

OverviewofMirpurBranch
OPERATIONSSTRATEGY:

Competitive advantage :

a. Cost
b. Time
c. Technology
d. Quality
e. Workforce-Management Relationship
LOCATION:
. Address : Mirpur, Section 7, Dhaka.
. Total land in Mirpur : 8.46 acre.
. Site choosing factors :
. Cost
. Transportation cost
. Supply of raw materials
. Marketing of Finished goods,
. Political issues
. By product facilities.

OverviewofMirpurBranch
Site Choosing methods :

Survey (Identifying for 2000 litre supply)

Union Making
OPERATIONSTECHNOLOGY:
Automation Technology: Automation is the use of control systems and
information technologies to reduce the need for human work in the
production of goods and services.
Process Technologies:
Pasteurizing Technology
UHT Technology
Gerber Method
CIV Process
Product Technologies:
Lactometer
Butyrometer
Computerized Systems for Testing:
Milk Analyzer Every factory of BMPCUL determines the percentage rate
of fat and SNF with the use of milk analyzer, which is run through computer
systems

OverviewofMirpurBranch
Machines used (Pasteurized Milk):

3 Boilers
Generator
Compressor
Chiller
Air compressor
Water treatment plant
Pasteurizer
Filling machine
Homogenizer
Freezer
Choc-bar machine
Centrifuge Machine
Cup Machine
Crate washing machine
Mil tanker
Milk Vat
Cover Van (AC/non-AC)
CIV Plant
Laminar Air flow
Incubator
Autoclave
Petridish

OverviewofMirpurBranch
CAPACITY:
ProductioncapacityoftheFactory:
PasteurizedMilk:Production Capacity:25000 liter per hour, Production : 320000 liter per day.
Daily sale : 240000 liter milk.
UHTMilk: Chocolate flavour - 2000 liter per day.
Ice-cream: 3000 kg per day.
Curd(Sweet&non-sweet): 400 liter per day.
RoshMalai:300 liter per day.

INVENTORY CONTROL:

Raw Milk :
Inventory Model - Time-Based inventory model
Operation periods - 360 days in a year
Economic order quantity - 8/9 crore liter milk per year.
Reordering - In 360 days, daily milk collection 2 times
Safety Stock No safety stock for pasteurized milk

Finished Product (Pasteurized Milk) :

155000 liters of milk.

OverviewofMirpurBranch

JOB DESIGN:
JobDecisions:

Who : Permanent and non-permanent labours.

What : Milk Products.
Where : In work centers and production centers.
When : 3 shifts (8 hours), starting from 8 am.
Why : To gain core competency over others.
How : Hourly and daily pay.

NumberofLabours:
More than 100 permanent labours are there in this branch.
CompensationSystems:
Permanent Labours --- Hourly pay
Non-permanent --- Daily Pay
Higher employees --- Monthly Pay.

OverviewofMirpurBranch

TRANSFORMATION PROCESS
From Manufacturing View (Pasteurized
Input (Chilled Milk)
Milk)

Processing
(Pasteurization)

Output (Pasteurized milk)

OverviewofMirpurBranch
MANUFACTURING PROCESS
Pasteurized Milk Processing

Chilling

Standardization

Cooling

Pasteurization

Standardization

Homogenizer

Monitoring

Filling

Packing

Cooling

Storing

MarketingStrategiesandCustomers
the Bangladesh Milk Producers Cooperative Union Ltd. Has been
helping the rural Milk Producers in
organizing their own village Primary
Milk Producers Co-operative Society
so that they can themselves become
responsible for marketing their own
milk, twice daily, and no longer have
to depend upon middlemen or
markets.

OperationsManagementofBMPCUL

Problems in Achieving Efficiency

in Operations Management
They have many competitors.
A lack of retailers who can work face
to face with the customers to
generate product awareness.
Future competition from already
established market participation.
A slump in the economy that could
has a negative effect on peoples
spending of discretionary income on
these products.

Recommendation

Conclusion
Milk Vita is the largest milk producing company in Bangladesh. It is helping about
7.55 lakh beneficiaries through its overall activities including operational,
marketing, financial activities. Nowadays, many big and small dairy farms have
been established with the help of Government, NGOs and personal willing. So, in
Bangladesh the milk production is increasing. Milk Vita still remains the most
productive dairy farm in Bangladesh.