Operations Management of Fonterra

Running head: OPERATIONS MANAGEMENT OF FONTERRA
Operations Management of Fonterra
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1OPERATIONS MANAGEMENT OF FONTERRA
Executive summary
The primary purpose of this report is to elaborate on the background of Fonterra and the
challenges that are faced by the company. The report discusses about the quality management
systems that has been adopted by the company. The report also throws light on the
sustainability initiatives that can help company in overcoming the issues. The report also
states the initiatives that have been taken by company that have helped it in improving the
dairy operations.

2OPERATIONS MANAGEMENT OF FONTERRA
Table of Contents
Introduction................................................................................................................................3
Sustainability Challenges...........................................................................................................4
Challenges of Fonterra...........................................................................................................4
Quality Management Systems................................................................................................5
Sustainability initiatives of Fonterra......................................................................................6
Continuous Improvement...........................................................................................................7
Initiatives of Fonterra for improving operations....................................................................7
Tools for continuous improvement........................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3OPERATIONS MANAGEMENT OF FONTERRA
Introduction
Operations Management refers to area of the management that deals with the
designing along with controlling of the process of the production. It helps in the redesigning
of the business operations so that it can produce the goods along with the services (Heizer et
al., 2017). Operations Management ensures the fact that the business operations run in an
efficient manner so that it can meet the requirements of the customer.
History and kind of the ownership
Fonterra was formed in the year 2001 after the merging of largest dairy co-operatives
called New Zealand Dairy Group with that of New Zealand Dairy Board. Fonterra refers to
dairy co-operative that is owned by around 10,000 farmer shareholders of that of New
Zealand (Fonterra.com.,2019). A co-operative refers to autonomous association of that of
persons who unite voluntarily so that they can meet the economic, social along with the
cultural needs with the help of an enterprise that is controlled in a democratic manner.
Products
It is the largest processor along with the exporter of that of the dairy products that are
used by more than that of 100 countries across that of the globe. The farmers of Fonterra
takes recourse to sustainable farming that helps in meeting the needs of the stakeholders of
New Zealand. The company believes in the fact that power of the dairy can bring about
differences in the lives of the people. The company lends support to the farmers so that they
would adopt the good management practice that can help in improving profitability along
with resilience of the organization in the competitive environment of New Zealand. The
company has harvesting standard in relation to the raw milkand the farmers are asked to meet
the standard that helps in maintaining the quality of the milk in the organization. The