©Aspire2 International – DBN509 Assessment 2 – XXXXXXXXXXPage 1 of 6 NEW ZEALAND DIPLOMA IN BUSINESS (LEVEL 5) Course Title Operations Management Course DBN509 Version 3 Title Assessment 2: Individual...

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©Aspire2 International – DBN509 Assessment 2 – 2018 Page 1 of 6 NEW ZEALAND DIPLOMA IN BUSINESS (LEVEL 5) Course Title Operations Management Course DBN509 Version 3 Title Assessment 2: Individual Project Report Level 5 Credits 20 Total Marks [Weighting] 85 [40%] Student Name Student ID Tutor’s Name Week Due Due Date Sections 1.0 2.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.0 5.0 TOTAL Learning Outcome LO1, 2 & 3 LO1, 2 & 3 LO1 LO1 LO1 LO2 LO3 LO3 LO3 LO1, 2 & 3 Var’ Total Marks 6 6 6 10 4 9 11 12 14 3 4 85 Marks awarded Assessor’s Overall Feedback ©Aspire2 International – DBN509 Assessment 2 – 2018 Page 2 of 6 Student’s Signature: _____________________________ Date: _________________ ©Aspire2 International – DBN509 Assessment 2 – 2018 Page 3 of 6 LEARNING OUTCOMES ASSESSED Learning Outcome Section Mark Allocation Percentage Allocation LO1: Identify operational issues and challenges relating to quality and performance within an entity. (Also covered in assessment 1) 1.0 Executive Summary 2.0 Introduction 3.1 Capacity Management 3.2 General Location Factors 3.3 Plant Layout 4.0 Conclusion 2 2 6 10 7 1 1% 1% 3% 5% 2% 1% LO2: Consider a range of techniques to apply for continuous improvement for efficient and affective performance of the entity (Also covered in assessment 1) 1.0 Executive Summary 2.0 Introduction 3.4 Continuous improvement 4.0 Conclusion 2 2 6 1 1% 1% 4.5% 1% LO3: Contribute to operational and logistical business planning for efficient and effective performance of the entity 1.0 Executive Summary 2.0 Introduction 3.5 Supply Chain 3.6 Inventory 3.7 Material handling 4.0 Conclusion 2 2 11 12 14 1 1% 1% 5.5% 3% 5% 1% Variance 5.0 References 4 3% Total 85 marks 40% General Instructions: 1. “APA” 6th edition referencing and citation are compulsory. 2. Plagiarism would be dealt with zero tolerance and you would fail the assessment. 3. A soft copy of assignment must be submitted on Turnitin by the due date and a hard copy must be submitted to the lecturer on date advised by lecturer. 4. Be advised that any similarity rate 15% or above will result in zero marks as stipulated above. 5. Your work should be free of errors with respect to grammar, spellings and punctuation. Please read and sign the declaration below: I have understood the content and learning outcomes to be assessed. I have been advised of the purpose and the process of the assessment. I consent to assessment results and materials being used by my establishment. I agree to carry out the assessment without assistance from anyone else. ___________________________________________ _____/____/____ Student’s Signature Date ©Aspire2 International – DBN509 Assessment 2 – 2018 Page 4 of 6 Please submit your paper: • A soft copy of the assignment must be submitted to Turnitin. • A hard copy to be submitted to your tutor (please also include the report marking criteria) BEFORE the due date/time (Note: Refer to the late submission policy for details). Glossary of Assessment Terms: Explain Make (an idea or situation) clear to someone by describing it in more detail or revealing relevant facts. Recommend Put forward (someone or something) with approval as being suitable for a particular purpose or role. Discuss Write about (a topic) in detail, taking into account different issues or ideas. Identify Associate someone or something closely with; regard as having strong links with. Analyse Examine (something) methodically and in detail, typically in order to explain and interpret it. Research Systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions. ©Aspire2 International – DBN509 Assessment 2 – 2018 Page 5 of 6 INSTRUCTIONS Individual project report: Students are required to select an organisation (manufacturing oriented) operating in New Zealand and write a project report based on the organisation’s operation functions. Refer to the Report Marking Criteria on the contents to be covered in your report. Expectation:  This is a project report format assignment, you are required to read and make sure that you understand all the instructions and requirements before you start writing.  You are encouraged to do additional research to do justice to your assignment. No. LO Sections Description (sub-headings) Marks available Marks obtained 1.0 1/2/3 Executive summary A brief summary of the report’s key findings and highlights relevant to the selected organisation’s operation functions. 6 2.0 1/2/3 Introduction Should include company name, brief history, products & services, location, number of employees, type of business operation, etc. 6 3.0 Analysis 3.1 LO1 Capacity management Discuss TWO issues and challenges related to the use of capacity management AND TWO capacity management strategies adopted by your company to cope with these issues and challenges (2 marks for identification of each issue/challenge) (2 marks for each strategy explanation*2) 6 3.2 LO1 General locational factors Briefly discuss FIVE general locational factors, controllable or uncontrollable, relevant to your selected business AND any TWO challenges faced while determining these factors. (1 marks for each locational factor discussed) (2.5 marks for each challenge; total 5 factors ) 10 3.3 LO1 Plant layout Discuss TWO important and relevant principals of plant layout that are applied in your organisation AND explain TWO challenges faced during implementation of these principles. (1 mark for each principal) (2.5 marks for each challenge) 7 ©Aspire2 International – DBN509 Assessment 2 – 2018 Page 6 of 6 3.4 LO2 Continuous improvement Using TWO elements of Total Quality Management, discuss how continuous improvement is achieved in your organisation. Discuss any TWO evidences of application of these TQM techniques in your selected business. (1 mark for each element of TQM) (2 marks for each evidence) 6 3.5 LO3 Supply chain Explain using diagram the key components of your organisation’s supply chain and how this impacts the efficient and effective performance of your organisation. (Minimum 3 components*1 mark each: 3 marks; 3 explanations *2 marks each: 6 marks; Diagram: 2 marks) 11 3.6 LO3 Inventory Discuss TWO functions of inventory in your organisation and how this impacts the efficient and effective performance of your organisation. (2 Identifications*2 mark each: 4 marks; 2 explanation*4 marks each: 8 marks) 12 3.7 LO3 Material handling Discuss, using examples, TWO important guiding principles of material handling applied in your organisation and how this impacts the efficient and effective performance of your organisation.. (2 Identifications*2 mark each: 4 marks; 2 discussions*3 marks each: 6 marks; 2 examples*2 mark each: 4 marks) 14 4.0 1/2/3 Conclusion Conclude your report by highlighting important findings. (Concisely conclude including minimum of 3 main points* 1 marks each) 3 5.0 Reference In-text and reference list (APA 6th ed.) (Provide minimum of 4 credible sources; in-text citation & reference list using correct APA 6th ed. Format) 4 TOTAL 85 marks awarded
Answered Same DayMay 12, 2021DBN509Aspire2 International

Answer To: ©Aspire2 International – DBN509 Assessment 2 – XXXXXXXXXXPage 1 of 6 NEW ZEALAND DIPLOMA IN BUSINESS...

Soumi answered on May 15 2021
153 Votes
Running head: OPERATION MANAGEMENT: A CASE STUDY ON FONTERRA    1
OPERATION MANAGEMENT: A CASE STUDY ON FONTERRA            18
DHRUV. D. PATEL
YIB00012K
OPERATIONS MANAGEMENT
ASSIGNMENT 2
OPERATION MANAGEMENT: A CASE STUDY ON FONTERRA
Executive Summary
In the current assignment, Fonterra is being identified as a successful dairy business organisation in New Zealand, which has uses proper operation management skills to cater its success. In the course of the discussion, Fonterra is found to have high capacity, which has its issues managed by its management and proper understanding if the market. Taking reference from the chosen organisation, Fonterra, the role of business layout, its potential issues, TQM and inventory has been discussed, which have given a proper idea about
the fact that all the mentioned aspect prove their effectiveness if the organisational management have the ability to use them in the context of their needs and situations.
Table of Contents
Introduction    4
Fonterra’s Capacity Management Issues and Incorporated Solutions    4
Location Factors Affecting Fonterra’s Business and Challenges of Factor Determination    6
Principles of Plant Layout and Implementation Challenges at Fonterra    9
The Principle of Space Utilisation and Its Implementation Issues    9
The Principle of Economy and Its Implementation Issues    9
Elements of Total Quality Management for Continuous Improvement at Fonterra    10
Key Components of Fonterra’s Supply Chain    12
Functions of Inventory at Fonterra    13
Guiding Principles of Material Handling at Fonterra    14
Conclusion    14
References    16
Introduction
    Operation management is an important part of business success attaining, as it manages the production of products and services and ensures change management into the operations when deemed necessary. In the current assignment Fonterra, a New Zealand based dairy product producer and seller. It is New Zealand’s biggest and World’s sixth largest dairy business organisation. The company was the result of merger between New Zealand Dairy Group and Kiwi Cooperative Dairies, in 2001.
The company operates under a cooperative structure, which makes 10,500 farmers in New Zealand its owners. Fonterra has 21,400 employees engaged in daily works. In terms of operation management, Fonterra executes merchandising business operations, which includes the collection of raw material, their processing, and production and packaging, inventory management, the inbound and outbound logistic (Fonterra, 2019). The current report aims at exploring the capacity management issues at Fonterra and offer proper solution to them.
Fonterra’s Capacity Management Issues and Incorporated Solutions
    Firstly, at Fonterra, the issue of stock piling due to reduced market demand has to be mentioned as one of the major capacity management issue, faced by the company. As stated by Nambisan, Zahra and Luo (2019), in the global business contexts, countries with higher demands for products regulate the degree of operation management type, frequency of work and performance levels and as the demands in such markets decline manufacturers and product sellers, face issues of stockpiling, as the production remains higher than that of the actual demand. With the current condition of the market offering lesser demands for the dairy products both in local and international market for Fonterra, the company is facing issues with its capacity management patterns, as the requirement for more productive and efficient process is felt needed.
Secondly, the storing of the data of the decentralised layout of the manufacturing plants across the local and international markets, which require effective data processing and storing has also emerged as another major issue for Fonterra’s capacity management. As opined by Khanagha, Ramezan Zadeh, Mihalache and Volberda (2018), the decentralised distribution of production facilities, along with the need for registering their market demands, create issues for the central database as the data are not processed and piled up, without segregation. As seen in the case of Fonterra, the inconsistency of the collected data and their processing as well as storing has lead the company to face issues while formulating proper marketing strategies .
    As solution to the problem of shrinking market share and reduced demands, Fonterra has resorted to use technological aid to generate higher production efficiency, which would make the reduced demands, cover the profiting needs as the lower quantity products will have the same selling price, while the cost of production will be reduced drastically (Scoop, 2014). As explained by Almena, Lopez-Quiroga, Fryer and Bakalis (2019), organisational business plans include the production cost and the selling price margin as the scope for profiting for the organisation, as the consideration of quality and production cost remains inversely proportional.
Business organisations reduce either the production cost or increase the number of sold units to acquire the profiting ratio and in case of Fonterra, the production cost has been reduced to adjust to the lower units of dairy products sold. On order to tackle the inconsistency of demands from different markets within and outside New Zealand, Fonterra has reduced the traffic of its products from the major port, such as Taranaki to lesser capacity ports such as Napier and Tauranga, which has offered the company the flexibility to send its products to different markets, reducing the pressure of the lower demands and inconsistency.
Location Factors Affecting Fonterra’s Business and Challenges of Factor Determination
    The first location factor, catering ample significance from the perspective of Fonterra’s context is the power supply. In general, as mentioned by Balbontin and Hensher (2018), power supply location gives the business set up points their values and profiting potentials, as the closer the business location will be the faster and cheaper power supply process will become,. In addition, the power supply location also determines the degree at which the service will be provided by the power supplier. In context of New Zealand power supply has been considered very carefully, which is made evident from the fact that the Headquarter of Fonterra is in Auckland, which has multiple power supply points such as Greenmount, Rosedale and Kings Wharf, making the supply of power easy available and convenient (The Grid, 2019).
Second, location factor, which in addition to Fonterra prove to be significant for business organisations is the communication. As stated by Johansson and Olhager (2018), as a location factor, communication includes the aspect of transport as well as telecommunication, which makes the meaning of the work implied wider. From the perspective of Fonterra’s location, it is found that in New Zealand the roads, rivers, seas and the telecommunication providers are available, which makes the business propositions beneficial. The degree of communication determines the efficiency of the business and the coordination that exists between the different stakeholders, departments, and facilities lay across the marketplace (Fonterra, 2019).
    The third location factor, which caters ample significance, is raw material used for the business. It is evident that without the raw material of the business the commercial commodity developed and sold by business organisations will not be executed, therefore, the availability of raw material is important. As mentioned by Yang, Boev, Haefner and Lanza (2018), in case business organisations get the supply of raw materials from its existing business market and country, the prices of raw material and its transport generate ample scope for higher profit earning, while a lack of availability of...
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