Operations Management | Assignment

Operations management

Table of Contents
INTRODUCTION...........................................................................................................................4
Provide a brief background of the business organisation.......................................................4
2. sustainability challenges ( LO1):.................................................................................................6
(a) Discuss driving challenges that is faced by Fonterra related to their quality and
performance to maintain sustainability..................................................................................6
(b) Explain about quality management system adopted by Fonterra with issues and challenges
face during their implementation............................................................................................7
(c) ways in which sustainability initiatives taken by fonterra to overcome issues and
challenges...............................................................................................................................8
3. Continuous improvement.............................................................................................................9
(a) Explain initiatives to continuous improve in dairy operations.........................................9
(b) Tools for continuous improvement plan.........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is an management approach that concerned with designing and
managing various processes of production to get highest level of effectiveness that is possible for
an organisation. It is primarily concerned with transforming materials and labour into goods and
services to reach at desirable outcomes. This report is based on fonterra that is a co operative
group limited multinational dairy co operative that is owned by 10,500 farmers of new Zealand.
This report is based on whole about the business and its ownership, their financial position and
their values and vision and their famous brands with markets in which it operates. It also
explains challenges and issues faced by them to maintain performance to keep sustainability. It
elaborates about quality management system and issues while implementing into market and
ways to overcome from these problems. In addition to initiatives taken by Fonterra to improve
their quality and major tools and methods.
Provide a brief background of the business organisation.
Operation management is an important tool that helps in enhance their efficiency level up
to possible for an organisation. In that scenario Frontera majorly focuses on improving their
sustainability level regarding the food security and nutrition because large no. of people facing
problem of malnutrition in all over the world. To reach at global level they have to eradicate
these challenges of food production (Brown & Bessant, (2013).). On other hand their farmers
and other stakeholders are forefront for sustainable farming because they require natural
environment and strive towards the high quality dairy products that is nutrition full and aim to
produce high quality dairy products to enlarge their market base.
Fonterra is an cooperative group which is an largest exporter of dairy and related
products, they are leader and of science and innovation (Galindo & Batta, (2013)). They are
owner of various brands portfolio in Asia pacific and they are co partner of world's most leading
food product companies. Its headquarter is in new Zealand and operates more than 40 countries
all over the world.
History:
Fonterra established in October 2001 with the merger of two largest dairy co operatives
companies that is New Zealand dairy group and Kiwi cooperative Dairies that merge with new
Zealand dairy board. Its name come from Latin word which means “spring from the land”. It has