Computer Application in Dairy Industry

Computer is used for varieties of purposes in dairy industry. The requirement has been increasing due to its attractive features. Its application as management information system (MIS) for effective decision making, optimizing product mix,product composition, procurement and distribution routes, inventory management and maintenance of plant –machineries etc. has been found very popular. We are discussing some of them here:

i. Computerized MIS in Milk Procurement:

a) Milk Billing: Analysis of data for number of milk supplying centers based on quality and quantity was a tiresome job before the computerized billing system came in dairy industry. One can visualize receiving milk in two shifts from thousands of procurement centers. Added with this dynamics, there are other  complex payment conditions relating to milk procurement and pricing policies{(good /sour/curdled), fat basis, double axis basis, total solids basis, incentives for promoting milk procurement quantity and quality, negative incentives forcontrolling non-genuine and poor quality milk etc.}. A number of persons were required in manual system to manage this, which was time consuming and less flexible too. But the computer application made it feasible to frequently bill and pay.

b) MIS for other procurement related activities: Similarly, computer application has proved a boon in managing huge information relating to milk collection,quality monitoring, technical inputs, monitoring of artificial insemination activities and providing timely payment to milk producers. Computerized information system can help to determine milk procurement cost and its impact on sale price. Quick analysis of milk value would be helpful in effective purchase of milk and conserve commodities.

c) Optimize scheduling of milk procurement routes: Data bank about milk routes,capacities of vehicles, reception timing and quality status helps in scheduling of routes 

ii. Optimization of Product Composition

Operational research techniques are used in formulation of products to have optimization for PFA norms, nutritive value and cost factor. Linear programming by involving large number of variables is utilized in the optimization technique.Maximum and minimum limits of individual and group ingredients is included in the programming .

iii. Plant Automation

Automation with fully integrated or part wise is done to suit the dairy’s requirement.Fully automatic plant employs automatic operations for the entire operations. As discussed earlier, data are captured on computer system for milk quantity and quality. Based on the collection and demand of the market for milk and milk product, planning is done. Full automation with on line displays/ messages keep informed for timely monitoring. All information regarding stock of milk and milk products, receipt /dispatches, losses etc. are known without any lapse of time to manage the operations. Computerized operations can control the product quality in better way. For this sensor or good sensitivity is employed to measure the process outcome. Sensor feed back is given to controller for adjustment of variable that are responsible for quality attribute.

iv. Product Mix Models

Based on the availability and cost of raw materials including milk, market demand,opening stock and value addition of products, a product mix decision is taken by using computer software employing linear programming models.

v. Computerized Accounting System

Computerized accounting is a normal phenomenon in most of the organization. All the input data of transactions are fed into the system on batch or on-line basis.The system gives all the report as per the management requirements. Finalization of account is possible within a short time. All the financial reports including trading account, profit & loss account and Balance Sheet can be taken out promptly.Computerized system also helps in employees’ salary payment, vendor payment and furnishing of all legal return along with deposition of contributions. Similarly accounting of milk and milk products to monitor and control handling losses is quite effective to have control over losses by the use of computers.

vi. Computerized MIS Application in HR Management

In manual system due to problem of speed, various personnel issues were not getting management attention leading to de-motivation. Personnel information can be effectively stored in data bank and utilized for boosting personnel moral.

vii. Networking for Wider MIS Application

Organizations are utilizing benefits of Networking by connecting one department and /or organization through computerized system. More information and better monitoring is feasible with the help of wide area networking applications. National Dairy Development Board (NDDB) Anand has developed computerized networking system by networking of all the milk unions and federations. Some of such usage of computer includes use of GIS, National Information Network (NIN) etc.

viii. Preventive Maintenance

The data /information of each equipment /machine with required periodicity is helpful in carrying out preventive maintenance effectively. Operator / Technician in manual system and auxiliary equipment in the automatic system will perform the operation of preventive maintenance as per the displayed instruction of computer based on the input data. This will help in automatic generation of break down and maintenance information required for management decision of optimum resource utilization.

ix. Utilities Management

Computer application in the monitoring of utilities is of a great importance. Dairy plant requires important utilities like refrigeration, steam, water and electricity. By the use of computer prompt information and control can be exercised to get quality service.

x. Application in Packaging and Statistical Quality Control

Computer application in packaging of products to ensure content, labeling, selecting source of content to pack is of a great value. Statistical quality control can be effectively implemented with the help of computers.

xi. Application in Vendor Development

Computer is used in material management function for inventory control, report generation, generation of orders and vendor performance assessment. This ensures cost effective sourcing of quality materials.