Operations Management and Sustainability at Oakhurst Dairy

This report provides a comprehensive analysis of Oakhurst Dairy's operations management and sustainability practices. It examines the challenges faced by the company, particularly concerning carbon emissions, and details the operational changes implemented to address these issues. The report explores how Oakhurst utilized lean manufacturing principles, energy-efficient technologies, and sustainable practices to reduce its carbon footprint. It also discusses how Oakhurst's sustainable business model supports the findings of the Natural Resources Defense Council (NDFC) regarding local food production and its environmental benefits. Furthermore, the report highlights the role of individual actions and choices in reducing carbon footprints, emphasizing the importance of sustainable diets, energy conservation, and green practices. The conclusion summarizes the key findings, emphasizing Oakhurst Dairy's innovative approach to balancing environmental responsibility with profitability.

Running head: OPERATIONS MANAGEMENT
Operations management
Name of the student:
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Author’s note

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Abstract
Oakhust Diary survives many threats related to pricing issues and increase in GHG
emission by considering ways to reduce its carbon footprint and implement sustainable practices
to promote a green environment. The adaption of several energy efficient technology and
changes in its resource helped the company to significantly reduce its carbon dioxide emission.
The steps taken by the management to create a safe environment has become example for other
corporate companies to follow and this essay demonstrate how the managements staffs
implemented plan to address the high carbon emission challenges.

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Table of Contents
Q1. What challenges face Oakhurst in 2011 and beyond? How do Oakhurst’s efforts to reduce
carbon emissions through operation changes help address the challenges?....................................3
Q2. How does Oakhurst’s sustainable business model help to support the Natural Resources
Defense Council’s findings?............................................................................................................5
Q3. How does Oakhurst’s sustainable business model help to support the Natural Resources
Defense Council’s findings?............................................................................................................6
Conclusion.......................................................................................................................................8

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The Oakhurst Diary is a company selling full line of dairy products to consumers in
northern England and Massachusetts. The organization has become an inspirational organization
for its efforts taken to address greenhouse gas (GHG) emission. The company took special
measures to minimize GHG emissions and implement innovative ways to enhance operational
efficiencies and operational cost (Gittell, 2012). This essay looks at the developments taking
place in the Oakhurst Diary and evaluates the challenges faced by the organisation since 2011.
The essay will examine Oakhurst’s efforts to reduce carbon emission and evaluate the
operational changes brought about in the organization to resolve the issue.
Q1. What challenges face Oakhurst in 2011 and beyond? How do Oakhurst’s efforts to
reduce carbon emissions through operation changes help address the challenges?
The Oakhurst is a widely renowned dairy company and its customers include large chains
like Walmart and Market Basket. The warehouse of the company is located in Portland and it has
three additional facilities in Maine, New Hampshire and Massachusetts. In 2010, it was reported
that Oakhurst produce 22 million gallons of fluid milk per year and this is responsible for
emission of 66 million pound of carbon dioxide annually. Most of this is used in milk
production, packaging and transporting (Gittell, 2012). Alhorr, Eliskandarani and Elsarrag, E.
(2014) explains that due to the adverse effect of carbon emissions on the environment, important
discussions on reducing carbon dioxide emission has been a part of international trade. Similar
type of endeavousr was taken by the management of Oakhurts when they started taking note of
their annual production of carbon dioxide. High rate of carbon emission created many
environment challenges for the company. Since 2011, the main challenge for the company was to

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decide ways to reduce its carbon footprint. Some of the events that made the goals main
challenging for the management was the death of Stanley Bennett and slow down of the US
economy. With the rise in fuels, maintaining profitability and environmental sustainability
together was difficult. The company took notice about reducing carbon dioxide emissions after
the Governor Baldacci CO2 emissions. The main lessons from this program were to reduce direct
emission from fuel combustion at the industrial site. The main challenge for Oakhurst
management was to shift from the industry trend towards dairy processing and maintaining
profitability too (Gittell, 2012).
The company was also challenged by the low price demand of consumers as no one was
bothered about carbon emission and they wanted priced reduction only. Major consumers like
Walmart started demanding lower prices for the milk given by Oakhurst. Oakhurst addressed the
above challenges by implementing many operational changes to reduce carbon emissions. The
first strategy implemented by Oakhurst was to reduce its carbon foot print by the reducing the
use of fossil fuels and improved its operations by the lean manufacturing principles. This is a
principle meant to increase production and reduce cost by means of five principles. This included
identifying the value, mapping the value stream, creating flow, establishing pull and seeking
perfection (Gittell, 2012). In line with the principle, the dairy company first identified key
sources that increased GHG emissions. This included use of electricity, heating oil, natural gas,
diesel and refrigerants used during tranpsorting, processing, packaging and distribution (Panwar
et al., 2016).
The first change that the management brought included changes in its operations and
plant expansion. The company introduced many energy efficient technologies, systems and
procedures. Insulated cold tanks and hot water recovery system was installed. The hot water

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recovery system reduced carbon emission by 25 metric tons and this resulted in savings of 2500
gallons of heating oil per year. In addition, the company also reduced emission by converting its
truck to biodiesel fuel. It also made many changes in the software of its delivery trucks thus
leading to a significant reduction in the use of biofuels. The senior management of the company
also modified the culture of the organization so that sustainable practices could be retained in the
long run too. Through its sustainable practices, Oakhurst managed to enhance its profitability
and gained a competitive advantage in business. The management in 2011 also took the step to
start use of methane digesters so that the energy from this could be used in cow manures.
Furthermore, investment was also made to research about feed additives that can improve cow’s
digestion (Gittell, 2012).
Q2. How does Oakhurst’s sustainable business model help to support the Natural
Resources Defense Council’s findings?
The Natural Resources Defence Council’s (NDFC) (2007) report states that locally
produced food provided the best choice to minimize environment pollution and prevent global
warming. It also cite evidence from many research work which revealed that all locally grown
food combined together leads to less carbon dioxide emission compared to other imported
product. The Oakhurst’s sustainable business model also helps to support the NDFC’s finding
that buying local not only helps Maine farmers but also helps the environment. This is true
because in Maines, the management has taken the step to ensure that milk comes from local
farms. Hence, instead of focussing on developing more large diaries, the managements of
Oakhurst focused more on local factors. The significance of focussing on a local farm for milk
production is that it provides many economic opportunities to people thus reducing

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environmental impact. Locally grown foods are pesticide free, preservative free and full of
nutrition (Gittell, 2012).
There are many research evidence that shows the utility of locally produced food for the
environment too. Research evidence shows that locally grown food is better for the environment
and this conclusion was made on account of changes in transport and storage level factors for
local foods. Hence, as transport and storage related process is minimized or eliminated for local
produce, such food products has less impact on the environment too (Edwards-Jones, 2010). The
operational changes implemented at Maines also give lesson regarding linking alternative food
networks to achieve the vision of sustainable and equitable food systems. Such evidence
recommends the need for opening a paradigm change in the food system so that production,
distribution and promotion jointly operates (Matacena, 2016).
Q3. How does Oakhurst’s sustainable business model help to support the Natural
Resources Defense Council’s findings?
Since the industrial revolution, special instruction and regulatory guidelines has been
imposed for industrial companies to reduce the rate of carbon emissions. However, industries
alone are not responsible for increasing carbon footprint. Instead, the common people can also
take part in minimizing carbon food print. Carbon food print is defined as the amount of
greenhouse gases produces by an individual that is responsible for creating units of carbon
dioxide per year. According to a report, the average carbon footprint of American’s in 2014 was
21.5 metric tons CO2. Hence, every individuals need to take responsibility to reduce carbon
foot prints in their own way. This is possible by making many changes in lifestyle and food

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choices. This form of changes can not only help to reduce the environmental impact, but also
reduce cost and lead to savings for people.
For example, one of the options that can be taken by the common public is to shift to
sustainable diet to reduce GHG emissions and carbon footprint. This has also become a necessity
following technological advancements in the food systems. Matacena (2016) gave the idea that
GHG emission can be reduced by eating more fruits and vegetables such as tomatoes, carrots and
raspberries. In addition, replacing protein rich products like meats with plant based products can
minimize emission of GHG too. Hence, better understanding from common people with regard
to food choice is necessary so that food related carbon footprints can be reduced. Better
education and communication channels are needed so that common people also play their role in
minimizing carbon footprint in the environment.
Other options to reduce person carbon foot print include making an endeavour to unplug
electronic devices and use other transport options instead of driving to work or other place.
Nagendra and Kansal, S. (2015) gives the evidence that lighting systems and electronic plugs
consume lots of energy. In addition, minimzing driving and using public transit as far as possible
can reduce the transportation related carbon footprints. This is a highly effective strategy because
modern transport uses lots of petroleum which contributes to half of carbon dioxide emission in
the US. Thus, by making small changes, like modifying the type of vehicles used for driving and
switching to public transportation, carbon footprint can be significantly reduces annually. This
can reduce overall personal cost of individuals too. Hence, engaging in green practice is needed
to build a clean environment and incorporating green policy is essential to better manage the
change.

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In addition, engaging in careful shopping and taking time to research about products
which are energy efficient is important too. For example, while buying equipment and
appliances, checking for energy starts is important. This form of thought process can ensure that
people minimize reduce of new and resource intensive products. People can also engage in
reducing energy by engaging in regular equipment maintenance, adding insulation in doors,
switching to LED bulbs, washing clothes in cold water and using natural air to dry them. Hence,
instead of relying on energy consuming products, eliminating or completing reducing energy
consuming products, common public can also reduce carbon footprint and play a role in making
a green and safer environment.
Conclusion
From the exploration of the above question, it can be concluded that the senior
management of Oakhurst’s dairy took innovative steps to take action against increase of carbon
footprint from their industries. The actions taken by the management gives a lesson regarding
ways to implement sustainable practices and maintain a safe environment along with
profitability.
References:

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Alhorr, Y., Eliskandarani, E., & Elsarrag, E. (2014). Approaches to reducing carbon dioxide
emissions in the built environment: Low carbon cities. International Journal of
Sustainable Built Environment, 3(2), 167-178.
Edwards-Jones, G. (2010). Does eating local food reduce the environmental impact of food
production and enhance consumer health?. Proceedings of the Nutrition Society, 69(4),
582-591.
Gittell, R. (2012). The sustainable business case book. Retrieved from:
https://2012books.lardbucket.org/books/sustainable-business-cases/s14-case-oakhurst-
dairy-operations.html
Kause, A., de Bruin, W. B., Millward-Hopkins, J., & Olsson, H. (2019). Public perceptions of
how to reduce carbon footprints of consumer food choices. Environmental Research
Letters, 14(11), 114005.
Matacena, R. (2016). Linking alternative food networks and urban food policy: a step forward in
the transition towards a sustainable and equitable food system?. International Review of
Social Research, 6(1), 49-58.
Nagendra, A., & Kansal, S. (2015). Reducing Carbon Footprint through Green
HRM. SAMVAD, 8.
Panwar, A., Nepal, B. P., Jain, R., & Rathore, A. P. S. (2015). On the adoption of lean
manufacturing principles in process industries. Production Planning & Control, 26(7),
564-587.