Operations Management in Fonterra

Running head: OPERATIONS MANAGEMENT IN FONTERRA
Operations Management in Fonterra
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1OPERATIONS MANAGEMENT IN FONTERRA
Executive Summary
The primary purpose of this report is to elucidate on the history, vision and the mission of
Fonterra in New Zealand. The report discusses about challenges that it faces pertaining to quality
and that of performance that made them adopt a sustainable approach. The report states about
Quality Management Systems that has been adopted by Fonterra. The report also talks about
sustainability initiatives that have been undertaken by the company that can help them in
overcoming issues along with challenges. The report also throws light on five initiatives that
have been taken by the company that can help it in improving the dairy operations. The report
also talks about tools that can help the company in the arena of continuous improvement.

2OPERATIONS MANAGEMENT IN FONTERRA
Table of Contents
Introduction......................................................................................................................................3
Sustainability Challenge..................................................................................................................4
Challenges of Fonterra.................................................................................................................4
Quality Management Systems and their implementation............................................................5
Sustainability Measures of Fonterra............................................................................................6
Continuous Improvement................................................................................................................7
Initiatives of Fonterra for improving operations.........................................................................7
Tools for continuous improvement..............................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

3OPERATIONS MANAGEMENT IN FONTERRA
Introduction
Operations Management refers to area of the management that deals with designing along
with controlling process pertaining to production which is involved in producing good or a
service. It helps in ensuring the fact that business operations run in an efficient manner that helps
in meeting the needs of the customer. Fonterra was created in the year 2001 with the merging of
two co-operatives called New Zealand Dairy Group along with Kiwi Co-operative Dairies.
Fonterra is a global dairy company that is owned by around 10,000 farmers along with their
families (Fonterra.com., 2019). The company works along with the farmers in a partnership
approach that helps in bringing about a difference in the community. Fonterra is the name of a $
19.2 billion dairy co-operative that is owned by the farmers in New Zealand. The mission of
Fonterra is to create pure and natural products that have a lot of potential. The mission of the
company would be to come at the forefront of the dairy innovation for the coming generations.
Their vision relates to sharing dairy with the outside world and they want to evolve as the top
brand in relation to dairy products. The products of Fonterra are yoghurt, milk, specialty cheese
and ice cream. The core value of Fonterra is to become natural source pertaining to dairy
nutrition for everyone in the world. This report discusses about the challenges that is being faced
by Fonterra in relation to quality that compelled them to adopt the notion of sustainability. The
report also throws light on the quality management system that has been adopted by Fonterra in
the present age. The report also elaborates on five initiatives that has been taken by Fonterra that
has helped them in improving the dairy operations. The report also talks about five tools that can
be applied to Fonterra for improving its operations.