310-PROJECT MANAGEMENT

MINI PROJECT REPORT ON

SETTING UP A DAIRY PLANT

Submitted By: TEAM - X

S. No. REG. NO. NAME OF THE STUDENT COURSE
1 1226116107 Fareen Naaz MBA(IB)
2 1226116110 Sailesh Garneti MBA(IB)
3 1226316104 Vamsy Reddy MBA(GLSCM)
4 1226116130 Priya Yadav MBA(IB)
5 1226116138 Sunetra Dutta MBA(IB)
6 1226116117 Satish Reddy MBA(IB

In Partial Fulfilment of Requirement for the Award of the Marks towards MINI - PROJECT as part of 310-
PROJECT MANAGEMENT Course in Master of Business Administration (IB/IBF/GSCM)

Under the Guidance of

Dr.CH. VENKATAIAH
Professor (Operations, Quality & Project Management)
GITAM School of International Business, GITAM University, Visakhapatnam
Andhra Pradesh, India-530045

GITAM School of International Business

GITAM University
Visakhapatnam-45
 DECLARATION

EXECUTIVE SUMMARY

These report contains a detailed study on Setting upping a dairy plant. We want to achieve the Deliverables of
the project by means of achieving the deliverables. Setting up a dairy plant is both capital intensive and labor
intensive. As it is labor intensive we want to procure Rural Dairy as the quality and cost are favorable when
compared to urban dairy. Factory location is based on the connectivity to rural markets and the distribution of
the processed milk to end customers with low cost of handling and movement. Milk is consumed by every
person in there day to day life so the Market has a high potential. The initial investment, Breakeven and Return
on investment is calculated. Machinery is very important and capital intensive in these dairy plant so what type
of machinery has to be procured is a vital decision and quality depends on that factor. The design and
construction planning for long term and short term as well verifying whether the execution is according to the
plan and budget. The dairy building is sub-divided into sections like dairy block, service block, ancillary
structures. The products other than dairy milk are ghee, chhach, lassi, dahi and paneer.

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 CONTENTS

S.No Content Page No.

1 Introduction to the Project 5
2 Project Broad Objectives 6
3 Scope of the Project 7
4 Market analysis 8
5 Financial analysis 10
6 Technical analysis 11
7 Environmental analysis 15
8 Project execution 19
9 Conclusion 20

10 Reference 21

INTRODUCTION TO PROJECT
INTRODUCTION

A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and
resources.

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And a project is unique in that it is not a routine operation, but a specific set of operations designed to
accomplish a singular goal. So a project team often includes people who dont usually work together
sometimes from different organizations and across multiple geographies.

The development of software for an improved business process, the construction of a building or bridge, the
relief effort after a natural disaster, the expansion of sales into a new geographic market all are projects.

And all must be expertly managed to deliver the on-time, on-budget results, learning and integration that
organizations need.

Project management, then, is the application of knowledge, skills, tools, and techniques to project activities to
meet the project requirements.

It has always been practiced informally, but began to emerge as a distinct profession in the mid-20th century.
PMIs A Guide to the Project Management Body of Knowledge (PMBOKGuide) identifies its recurring
elements:

Project management processes fall into five groups:

. Initiating

. Planning

. Executing

. Monitoring and Controlling

. Closing

Project management knowledge draws on ten areas:

. Integration

. Scope

. Time

. Cost

. Quality

. Procurement

. Human resources

. Communications

. Risk management
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 . Stakeholder management

All management is concerned with these, of course. But project management brings a unique focus shaped by
the goals, resources and schedule of each project. The value of that focus is proved by the rapid, worldwide
growth of project management:

as a recognized and strategic organizational competence

as a subject for training and education

as a career path

PROJECT BROAD OBJECTIVES

In the rural areas, where plenty of milk is available at reasonable price but there is no market, a 100,000 liters
capacity per day dairy can be set up , with facilities to convert milk into powder, butter, ghee and marketing
liquid milk in bulk. This bulk milk can be transported to a dairy near the urban areas (URBAN DAIRY) to
pack and market milk and milk products to targeted consumers. Both dairies can be owned by the same
entrepreneur or an arrangement with other.

Market Milk Plant / Urban dairy of 50,000 liters capacity, selling liquid milk to urban consumers is a profitable
and safe venture. Based on logistics, milk can be procured from rural dairy in bulk or directly from producers or
from chilling centers, set up by this dairy at convenient milk collecting locations

Testing facilities at milk collection centers, processing, packing, and product manufacturing

facilities have to be created to ensure quality as defined for milk and milk products in FSSAct

Rules & Regulations are maintained throughout the chain.

Rural Dairy is set up when milk is available in abundance but, there is no market in that area.

Best form of preserving milk fat is to convert it into butter and ghee.

Solids-not-fat (SNF) to skimmed milk powder (SMP). The prevailing situation offers an opportunity to
undertake manufacture and market SMP, butter and ghee locally.

For selling butter, a chain of deep freeze facilities is required at consumer outlet points.

Safest way to start is to manufacture and pack SMP & Ghee.

Rural Dairy should be of minimum 1,00000 LPD capacity with a powder plant of minimum 10 MT capacity
for an assured return on the investment.
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 SCOPE OF THE PROJECT

PLANNING A DAIRY PLANT

Points to be considered by NEW ENTREPRENEUR in setting up a Dairy Plant

Consumer profile

Marketing Potential

Location of the Plant

Availability of milk

Milk to be handled, machinery and equipment

Product mix

Availability of required quantity of potable water

Availability of funds and cost estimates

Seasonal fluctuations in the availability of milk

Type of milk available-cow or buffalo or both in what quantities

Milk is highly perishable if not chilled to less than 4 degree Celsius or Pasteurized or any other process within
4 hours of milking.

FACTORY LOCATION :

A Suitable site must be located for establishment of the dairy plant. Prior to the selection of site. Approximate
land area required for the factory must be known. Due attention should also be paid to orientation of the
building, keeping in view the north-south points, wind direction, approach road and final effluent discharge
point.

The hygienic environment around the factory is the top priority in the selection of site. It should be located in
such areas, which are free and likely to remain free, from flooding and objectionable odours, smoke, dust and
other contaminants. The best course is to obtain flood level data from the local authorities to ensure that the
area is not prone to flood.

The surroundings of the premises should have no trees, food stores, free from refuse, rubbish, overgrown
vegetables and waste materials. These attract insects, birds, rodents, which would finally enter the dairy
premises. Another essential requirement is the source of adequate supply of water, either underground (tube
well) or from municipality. The quality of water must be tested, particularly to detect level of carbonates and

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bicarbonates of calcium to determine hardness of water and minerals as well as iron. If the water is hard, it
causes scaling. Consequently, water treatment and often installation of a demineralization plant become
essential.

There must be adequate space for construction of the effluent treatment plant (ETP) at such a location and
distance, in relation to the prevailing wind, so as to avoid polluction of milk products processing and storage
areas. A nearby drain or water stream is essential to discharge the treated effluent water.

The sub-soil condition is required to be investigated to estimate cost involved in laying the foundation of the
building. For instance, pile foundation is costly, but cannot be avoided if there is black cotton soil or the load
bearing capacity of the soil is poor.

Location of the electrical sub-station and its capacity, location of poles, HT/LT lines, require investigation to
estimate expenditure on connecting the power lines from the nearest pole or substation to the factory site is
essential.

The site must be approachable from the main or lateral road if required, by constructing service road and
culvert up to the factory premises, for movement of transport vehicles. Availability of public transport system
for to and from movement of employees must be checked If such facilities are not available while the site fulfils
all other criteria, employers may consider providing transport facilities to their employees.

While drawing a site map, contour of the land, north point, wind direction and other relevant information must
be recorded to facilitate general layout of the building with proper orientation and to estimate cost involved in
the excavation or filling of the land, road and building construction areas.

MARKET ANALYSIS

MARKETING POTENTIAL

Milk is an essential commodity for any household.

The demand is constantly increasing due to rapid growth of middle class urban population. Towns

and cities have significant scope for sale of quality liquid milk.

The financial viability of the project is directly related to the milk marketing capacity of the plant.

The lower the volume higher is the risk of running into losses.

Milk plant of 50,000 LPD is considered economically viable.

It may take two to three years to reach the targeted capacity.

Efforts to market milk and products should never be stopped.

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 Substantial investment is required towards brand building.

AVAILABILITY OF RAW MILK, QUALITY AND PRICE

Seasonal fluctuation in the milk production termed as Flush and Lean season.

Earlier it was 2:1, but it has been considerably reduced due to availability of crossbred Cows.

Facilities should be available to use milk powder and butter in lean season.

Prime consideration is to procure adequate quantity of good quality milk.

Procurement price should be reasonable.

Each milk collection center has to be equipped with milk testing and measuring facilities to ensure milk
quantity of acceptable quality.

The milk is usually transported in hired trucks in 40 liter cans.

If the milk producing area is far away from the processing plant, say about 50 km and beyond, it is
necessary to provide chilling facilities to cool the milk to 4 degree C before transporting to the dairy in the
hired insulated road milk tankers.

OR

Install Bulk Milk Cooler of 1,000 to 2,000 liter capacity each to chill milk at the village level

OR

Setup a full-fledged Chilling Centre of 10,000 to 50,000 liter capacity for a cluster of villages.

Chilling provision prevents the milk from turning sour.

market milk plant may not necessarily have its own procurement system of raw milk.

It can tie up with other dairies or chilling centers to buy the required quantity and quality of milk within a
reasonable price limit.

In such cases, no investment is required on the milk procurement system.

PRODUCT MIX

In a market milk plant, the majority of milk is sold is liquid milk.

Small percentage is converted to value-added products , depending on the local consumer

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preference.

Buffalo milk contains minimum 6% fat and 9% solids-not-fat (SNF). Cow milk has a minimum of 3.5% fat
and 8.5% SNF.

Mixed milk (buffalo+cow) normally contain fat from 5% to 5.5% and SNF 8.5% to 8.7%.

Milk is standardized as toned, double toned, standardized, Cow, Buffalo or FCM.

If packed as cow/buffalo It has to be pure, no mixing is allowed.

During the standardization process, milk fat and SNF are adjusted to the required levels

Specifications for various types of milk are available in FSS Act.

FINANCIAL ANALYSIS

INVESTMENT DECISION

A techno-economic feasibility report has to be prepared for submission to the bank for financing the

project. The key indicators are:

(1) Break-even analysis

(2) Internal rate of return

(3) Sensitivity analysis

In laymans language, there must be sufficient margin available between the purchase and selling price of milk
and milk products to cover all the overhead costs(fixed and variable) plus profit to repay the loan amount plus
interest to the bank with in the scheduled period. The fixed costs are: interest on the capital and depreciation on
the plant equipment and building.

COST ESTIMATES

The cost estimates of a dairy project are broadly divided into the following there sections:

Plant and equipment

Utilities/service equipment

Land and civil construction works

PLANT AND EQUIPMENT

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The equipment and their rated capacity are based 1. On the process requirement and 2. Future scope of
expansion of the dairy plant.

If a pasteurizer of 10,000 litres/hr is selected, the other equipment connected in line like Separator.
Homogenizer should have the matching capacity.

When this plant is expanded to handle 100,000 litres of milk per day, the same pasteurizer can take care of the
extra load by running the initial investment on the plant. If there is a fund constraint, a pasteurizer of 5,000
litres/hr. with matching capacity separator and homogenizer line may be installed, leaving enough space to
install a parallel line at the time of future expansion of the plant. Therefore, selection of the process equipment
should not only consider existing load but also of the future extra load as well as availability of funds.

Similarly, the utilities/ service section equipment (transformer, boiler, refrigeration plant, cold store, well water
pump and water storage facilities) should be decided keeping in view the future expansion of the plant.
However, milk storage tanks, silos, cream storage tanks, pouch filling machines required for packaging of milk,
milk testing equipment, milk cans for procurement, crates for milk marketing should be purchased in phases as
per requirement. This can considerably help in reducing initial investment on the project.

UTILITIES/SERVICE SECTION EQUIPMENT

Water, steam, power and refrigeration needed in a dairy plant would be as per their requirement given by the
manufacturers of equipment. The capacity of each of the service equipment is decided according to their peak
load demand in relation to operational hours of the plant. It is better to install service equipment in parallel, in
order to cope with the variable service load. Besides, it acts as stand-by unit in the event of any breakdown.

LAND AND CIVIL CONSTRUCTION WORKS

Land: Keeping in view the future expansion around 10,000 square metres of land is required for a one lakh litre
dairy plant. In the selection of site, the following points should be kept in view:

The level of the land should be high enough to avoid flooding of the area during monsoon season while the
dairy effluents can be easily discharged into the drain on a natural gradient of the land;There must be clean
environment around the plant site in order to maintain hygienic standard of the milk plant; and The cost of the
land should not be exorbitant to avoid unnecessary escalation of the project's capital cost.

TECHNICAL ANALYSIS

DESIGN AND CONSTRUCTION OF BUILDING

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The equipment layout and building design have to be integrated to ensure that there is adequate space around
the equipment for men and material movement and for maintaining hygienic standard for safe processing and
storage of milk and milk products.

While designing the plant, due consideration should be given to the statutory and other

legal requirements

The dairy building is sub-divided into following sections:

(A) Dairy block

(B) Service block

(C) Ancillary structures.

(A). DAIRY BLOCK:

It is the heart of the building, where the following operations take place and each operational area is

separated by partition walls to maintain hygienic standards. They are:

(1) Milk filled cans reception section

(2) Milk processing and storage section

(3) Milk products manufacturing sections

(4) Packaging sections are separately provided for milk, butter, ghee and milk powder

(5) Empty pouch crates reception and washing sections are adjacent to pouch filling section

(6) Milk and milk products like butter, ghee, milk powder storage rooms are adjacent to their

respective packaging sections

(7) Quality control laboratory

(8) ClP (Chemical and detergent stores)

(9) Miscellaneous items and packaging material stores.

The dairy block has several special design features which are discussed here:

The plinth level should be 1,100 mm to facilitate loading and unloading of milk cans, crates and loading of
packed milk products on the truck from the dairy dock.

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 The milk reception dock, cold store, deep freeze and milk pouch crate areas have cast iron/Mandana stone
flooring.

The process hall has Mandana stone flooring.

The other areas of the dairy block have Kota stone or terrazzo tiles.

The milk reception dock, can washing area, crate washing area, pouch filling area, milk and milk product
processing hall and cold store have dado of Kota stone / glazed tiles up to a height of 1.5 metres to prevent
absorption of moisture on the wall and to prevent growth of mould.

The dairy building is subjected to frequent washing and cleaning and hence the floor should have proper
slope, special water sealed trap. Brass covered c.r. drains are laid in the floor for proper drainage of dairy wash
water to the effluent treatment plant.

The height of the building should be adequate for proper ventilation but at the same time, all measures should
be taken to prevent entry of birds, flies, insects, dust and dirt.

Inside the building there should be proper moisture protective good lighting system.

All the doors and windows should be made of steel or aluminium, non-absorbent to water.

The building design and site layout should have provision for future expansion.

(B) SERVICE BLOCK:

In this block, electrical substation, steam generation unit, refrigeration plants are installed inside the building in
separate rooms. while the Fuel oil storage tanks are installed outside the building. Here too, the statutory
provisions as given by the explosives, electrical, boiler and factory inspectorate should be kept in view. The
building is constructed of steel structure with IPS ironite flooring and plinth level at 500 mm. The construction
cost is much lower as compared to the dairy block.

(C) ANCILLARY STRUCTURES:

The ancillary structure comprises overhead RCC water tank, hard park, internal tarmac roads, compound wall
and effluent treatment plant. The dairy surroundings need to be maintained clean in order to maintain hygienic
standard within the dairy processing area. Therefore, road should be tarmac and good lawn should be
maintained with proper drainage to keep it dust and dirt free.

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The most important is the design and construction of effluent treatment plant (ETP), with proper arrangement to
either drain the treated water or utilize it in the maintenance of lawn and garden. The pollution control board
has laid down statutory requirements and those must be fulfilled before getting clearance to run the plant.

PRODUCT MANUFACTURING

The cost estimate of plant and equipment for production of ghee, chhach, lassi, dahi and paneer is

given below:

GHEE

The production programme is planned to convert 1,000 kg of cream containing 40/., fat to

ghee, after conversion of cream to butter and later from butter to ghee. Equipment required

are:

1 Cream storage tank-l,000 litre

1 Cream chiller-l,000 LPH

1 Cream pump- 1,000 LPH

1 Butter churn- 500 kg

1 Butter trolley- 200 kg

1 Butter melting vat- 500 kg.

1 Steam jacketed pan with agitator 500 kg

1 Ghee settling and storage tank-500 kg

1 Ghee pump-500 LPH

1 Ghee pouch filling machine-500 pouches/hour

Total cost: 12.00 Lakhs

CHHACH AND LASSI

The estimated production per batch is 5,000 htres. Equipment required are:

1 Curd setting-rum-mixing tank-5,000 litres

1 Chhach storage tank-5,000 litres

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*1 PHE (Chilling 4 Degree, heating in two stages 40 and 90)-2,000 LPH

*1 Multipurpose vat and pump- 1,000 Htres

*1 Balance tank-50 litres

*1 Milk pump-2,000 LPH

1 Homogenizer-2,000 LPH

1 Steam jacketed pan-500 litres

1 Pouchfillingmachine-2,000 pouches/ hour

Total cost: Rs. 20.00 Lakhs

*These equipment are common for lassi, chhach and dahi. In this estimate, the cost of steam jacketed pan has
not been included, since it is already available for production of ghee. This equipment is required for production
of sugar syrup in batches for lassi production only. The homogenizer is not essential for lassi but it is required
for chhach.

DAHI (500 KG/BATCH)

The additional equipment required for manufacture of dahi are:

2 Starter Culture mixing milktanks before cup filling machine of 50 litres each

1 Preformed Cup filling and sealing machine-l,000 cups/hour

1 Incubation room for maintaining temperature at desired temperature.

Total cost: Rs 3.00 Lakhs

In this cost estimate, the cost of common equipment is excluded. For the incubation room, the cost of
thermostatically controlled heater has been included, while the cost of the construction of the incubation room
is part of building cost, hence excluded. The most costly item is the cup filling machine. An automatic machine
may cost around Rs 10 lakhs. Here a semiautomatic machine has been considered costing around Rs 2 lakhs.

PANEER

Here the list of equipment and estimated cost is given for production of 48 kg paneer from 300 litres of milk
per batch (the yield of paneer depends on the total solid in the milk):

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1 Paneer vat-400 litres

1 Chilled water tank-400 htres 1 Paneer press

10 Paneerhoofs (each hoof can hold 5 kg) 1 SS table and knives.

Total cost: Rs.3.00 Lakhs

In this cost estimate, cost of PHE for initially heating milk to 90C has not been included since it is already
available in the lassi and chhach section of the dairy. No packing machine has been included presuming manual
packaging.

Continuous Paneer manufacturing machines are also available in the market along with packing facilities.

ENVIRONMENTAL ANALYSIS

SITE SELECTION AND SITING

The selection of a site for the construction, replacement or expansion of a dairy plant should take into
consideration nearby land uses, possible future developments, the volumes and nature of wastes produced and
the proposed nature of waste recycling, reuse or disposal.

Depending on the proposed waste disposal system, adequate land should be available for treatment of
wastewater.

Soil types should also be assessed on site to check whether they can provide reasonable drainage and have a
good capacity to retain nitrogen, phosphorus and organic matter.

Dairy plants and their associated wastewater treatment plants should not be located on a flood plain and should
be a sufficient distance from surface water bodies and wetlands to reduce the risks of contamination caused by
run-off or accidental spills. Similarly, wastewater treatment and disposal areas should not be sited above major
ground water recharge areas such as gravel or sand beds or fractured rock aquifers.

Buffer distances

In order to provide a basic level of protection from odour, dust and noise, a dairy plant should not be located
within a minimum buffer distance of designated residential areas or other sensitive land uses.

This is to protect the amenity of the area from unintended or accidental emissions which may arise from causes
such as equipment failure, accidents and abnormal weather conditions. The buffer distance is measured from
the nearest dairy activity capable of emitting odour or particle emissions.

AIR QUALITY

Types of emissions
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The main emissions from dairy manufacturing processes are odours and particles.

Odours :Odours in and around milk processing plants come from the biological decomposition of milk-
derived organic matter, generally found in wastewater. Often these odours are due to poor housekeeping,
overloaded or improperly run

wastewater treatment and disposal facilities, and prolonged storage of strong wastes such as whey.

Particles

Particle emissions are caused either by combustion of solid or liquid fuel or, more often, spray drying of milk
and whey. Excessive emissions are often sporadic and happen during plant upsets, shutdowns or start- ups.

To avoid or substantially reduce emissions so that there is no loss of amenity.

The basis of these objectives is found in the State Environment Protection Policy (The Air Environment).

Suggested measures

Maintain aerobic conditions for wastewater processing.

Use filters or scrubbers to eliminate or reduce particles. (Particles less than 20 mg/Nm3 represents best
practice.)

Use automatic process control.

Carry out continuous routine monitoring of emission points using audible, visible alarms.

NOISE

Source of noise

The State Environment Protection Policy (Control of Noise from Commerce, Industry and Trade, No. N-1)
requires that any noise due to activities at premises in a sensitive area must not exceed the noise limits for the
area, as determined by the methods set out in the policy. The limits are tighter outside the normal working day
such as the evening and especially at night.

Most milk processing plants are located in country areas where there are no residential statutory requirements
for industry but EPA may set noise targets based on the State Environment Protection Policy and guidelines and
may use discretion in each particular case. In addition, there may be local government requirements on
industrial noise.

The principal causes of continuous noise include:

air discharges from drier stacks

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 heater fans

air supply fans

ventilation

boilers

pumps

cooling towers

refrigeration units

aerators on aerated lagoons.

Truck movements to and from the site or in streets are a source of noise, as are refrigeration compressors on
trucks. This is a particular problem when fresh milk delivery means late night trucking.

To ensure no noise nuisance results from the dairy plant:

Suggested measures:

Concrete construction for buildings which house mechanical plant.

Sound silencers on air intake fans and air discharges.

Acoustic enclosure of outdoor mechanical plant such as pumps.

Careful siting of plant to maximise the shielding effect of other on-site structures.

Restricted operating hours.

Mufflers on transport vehicles.

Conduct noise assessment.

WASTEWATER QUALITY

Protection of surface and ground waters

Activities at dairy plants have the potential to contaminate both surface waters and groundwater. Water and land
pollution can be avoided by appropriate siting, design, management and control of the dairy plant.

Sources of dairy wastewater

Approximately 65% of dairy factory losses enter wastewater discharge streams and these can have a major
impact on the environment. The main sources of dairy processing plant wastewater are: raw material

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(predominantly milk) and product losses from leaking equipment and pipelines, and spills caused by equipment
overflows and malfunctions and by poor handling procedures materials used for cleaning and sanitising by-
products such as whey from the manufacture of cheese and casein.

The hygienic environment around the factory is the top priority in the selection of site. It should be located in
such areas, which are free and likely to remain free, from flooding and objectionable odours, smoke, dust and
other contaminants. The best course is to obtain flood level data from the local authorities to ensure that the
area is not prone to flood.

The surroundings of the premises should have no trees, food stores, free from refuse, rubbish, overgrown
vegetables and waste materials. These attract insects, birds, rodents, which would finally enter the dairy
premises. Another essential requirement is the source of adequate supply of water, either underground (tube
well) or from municipality. The quality of water must be tested, particularly to detect level of carbonates and
bicarbonates of calcium to determine hardness of water and minerals as well as iron. If the water is hard, it
causes scaling. Consequently, water treatment and often installation of a demineralization plant become
essential.

There must be adequate space for construction of the effluent treatment plant (ETP) at such a location and
distance, in relation to the prevailing wind, so as to avoid pollution of milk products processing and storage
areas. A nearby drain or water stream is essential to discharge the treated effluent water.

The sub-soil condition is required to be investigated to estimate cost involved in laying the foundation of the
building. For instance, pile foundation is costly, but cannot be avoided if there is black cotton soil or the load
bearing capacity of the soil is poor.

PROJECT EXECUTION

Given below is a broad guideline on project execution:

The preliminary project report (prepared by self or with the help of outside agency) to be submitted to the
bank for loan.

After financial sanction, prepare a detailed project report.

The detailed project report should include selection of site, architectural drawings of buildings, civil tender
document, and dairy plant, equipment and service equipment tender document.

Establish a project cell to implement and monitor the progress of the project.

The project cell has to discharge the following tasks:

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 Coordination with consultant for preparation of plans, drawings, civil and equipment specification, invitation
of tender and award of work. Coordination with State Government and other statutory authorities for timely
completion of projects. These authorities are factory inspector, electric inspector, boiler inspector, and pollution
control board.

Coordination with the concerned agencies to ensure that all infrastructure facilities are available on time.
These facilities are construction of approach road, temporary power connection during construction period and
permanent power connection at the time of commissioning of plant, supply of water from corporation or by
boring of tube well.

Besides, public drainage line should be accessible to connect treated dairy effluent line.

Hiring or construction of temporary warehouse for safe storage of plant and equipment, building materials,
etc, received at site.

Arrangement of proper security at site.

Holding coordination meetings with all concerned agencies to review progress of the project work.

Recruitment of personnel for the milk plant and organization of their training in its operation, maintenance
and management.

Purcha~ of consumable store items like chemicals, detergents, glass-ware, oils, lubricants and packaging
materials prior to commissioning of the plant.

Liaisoning with the bank to maintain proper flow of funds for timely payment to suppliers and contractors.

Maintenance of project account, auditing of account and periodic review of progress of fund utilization.

Along with the progress of milk plant construction, field survey work must be taken up to identify milk
procurement routes, village milk collection and chilling centres, selection and training of personnel for
management of chilling centre, running and maintenance of bulk milk cooler and

testing of milk. A proper plan of sales pro motion and advertisement to bl' launched for consumer awareness
about the availability of milk, time 01 supply, prices, brand name and locdtion of milk selling booths.

Selection of milk vendors or booth agents and their terms of contract. The project must be cost effective,
functional and its execution should be left to the professionals. The target should be to complete the project
within the time.

CONCLUSION

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From being a recipient of massive material support from the World Food Program (WFP) and the European
Community (EC) in the 1950s and 1960s, India has positioned itself as the largest producer of milk in the world
with estimated production of about 82 million tonnes in 2001-02, overwhelmingly from the output of millions
of smallholder producers. The cooperative movement (Operation Flood) has been important in dairy
development in different parts of the country, especially in the western (Gujarat), and undoubtedly, has played
an important role in keeping smallholders involved with this fast growing sector. The Indian dairy sector, which
was highly regulated and protected through various restrictions on imports and exports of dairy products and
licensing provisions until early 1990s, has become progressively more liberalized since 1991, culminating in
the repeal of licensing requirements in 2002 of the Milk and Milk Products Order (MMPO), which restricted
the private dairies to procure milk in areas being served by the cooperative sector. A Suitable site must be
located for establishment of the dairy plant prior to the selection of site. Approximate land area required for the
factory must be known. Due attention should also be paid to orientation of the building, keeping in view the
north-south points, wind direction, approach road and final effluent discharge point. There must be adequate
space for construction of the effluent treatment plant (ETP) at such a location and distance, in relation to the
prevailing wind, so as to avoid production of milk products processing and storage areas. A nearby drain or
water stream is essential to discharge the treated effluent water.

REFERENCES

https://www.pmi.org/about/learn-about-pmi/what-is-project-management

http://www.omdairyprojects.com/dairy-plants.html#paneer-plant

http://www.dairyfarmguide.com/machinery-and-equipment-required-0112.html

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