Lean Manufacturing & Swot Analysis for
Dairy Industry
Presented by:
Rajan Sigdel
RA1812036010016
M.tech.FSQM
3rd semester
Date:23/10/2019
What is Lean?
• Management model from auto industry
• Continuous improvements in production
efficiency achieved through maximising value
creation and minimising the generation of waste
• Used in milk processing and retailing
Lean on Farm to Dairy
• Processes to be managed (e.g. forage
production, fertility, health, milking, feeding)
• Measure process performance
• Root cause of underperformance
• Maximise performance
• Standardise processes
• Sustain performance benefits
Dairy Lean Management does work
Efficiency gains therefore profit
Improvement in net margin
Recognising barriers
Make the most of the farmer-consultant relationship
Enhance leadership and farm team relationships
Enable growth
SWOT Analysis of dairy industry
Introduction
It is used to identify and categories significant internal
factors (i.e. strengths and weaknesses) and external
factors (i.e. opportunities and threats) faced by
the organization.
It should be used as a dynamic part of the
management and business development process
It generally provides a list of an organisation's
Strengths and Weaknesses as indicated by an
analysis of its resources and capabilities
Plus list of Threats and Opportunities identified by an
analysis of its environment
Guide for Preparing SWOT Matrix
Drawing up Opportunity and Threat matrices
helps in an assessment of the ‘likely
probability’ and ‘impact’ of any factor on the
organisation. A scoring system may be used
to assign importance to factors.
Similarly, Strengths and Weaknesses can be
assessed against a scoring system that
allows the factors to be identified according
to their significance (i.e. major, minor,
neutral) and level of importance (high,
medium, low).
Strengths
Enhanced milk production with consequently
increased availability of milk processing.
Improved purchasing power of the consumer.
Improved transportation facilities for movement
of milk and milk products.
Increased availability of indigenously
manufactured equipment.
Large number of dairy plants in the country.
Vast pool of highly trained and qualified
manpower available to the industry.
Country's vast natural resources offer
immense potential for growth and development
of dairying.
Strength
• Employment to rural population •Vast livestock population
mainly women •Increased surplus of milk
• Crop residues and agricultural •Purchasing power is
increasing
by-product feeding(low input) •Milk consumption
regular part of
• App. To the mixed farming the diet
•Large number of dairy
• Buffalo (india’s milking machine)
plants (678 as
on march 31, 2004)
Swot Analysis of Dairy Industry in India ,
• Cooperative dairying (greater
International journal of
scintific research
milk production) • Effective marketing
channel
• Highly trained and qualified •High demand profile(155
by 2016-17) NDDB
The Hindu: It will be a Cream Run for dairy industry for next 3 years: Crisil
technical manpower
Weakness
• Mostly by low yielding animals •Feed availability to
• Poor condition of roads and power cattle
inadequate
• Cold chain lacking •AI service limited coverage
• Unaware about scientific
dairy •Inadequate health care activities
• farming,
Seasonal cleanfluctuations
milk production
•Limited marketing support (rural
milk producers)
• Impact assessment studies very less •Delay in the availability of funds
•Poor infrastructure in many areas
• Perishability of milk & products
•70–85% surplus through informal
• Mastitis mostly sub-clinical channel (quality concern )
• Milk borne diseases •Fall in price of milk & products
• Low milk prices
• Decreasing export
•Adultrated milk and (>68%
does not conform the standard
Opportunity
Job and self employment
Market size to increase 15.6% in FY16
Milk production forecast 4.6% growth
Improved export potential
Utilization of by-products of the dairy industry
Improving animal health care facilities
Increased awareness in consumers about quality
Increased farmer income by exploiting the high
demand.
Scientific approach to clean milk production
Developed diagnostics to detect adultration
Innovations in dairy ingredients and products
Threats
Introduction of foreign products
Increasing chemical contaminants and residual
antibiotics
Poor microbiological quality
Extinction of the indigenous breeds of cattle
due to indiscriminate use of crossbreeding
programme to enhance milk production.
Value added product may create the shortage
of liquid milk.
Advantages of SWOT Analysis
Its implementation does not require
technical knowledge and skills.
SWOT analysis allows the synthesis and
integration of various types of information
which are generally known but still makes
it possible to organize and synthesize
recent information as well.
