Fonterra is a dairy cooperative which is based in New Zealand. It is made up of as many as 10,000 farmers who are an integral cog in the Fonterra machinery and work hard to ensure good quality milk produces are sent to the people of New Zealand. The company has an extremely well established customer base in New Zealand and Australia, and then a major base in other Asian nations like China, Singapore, Malaysia etc. The company is said to be one of the major sources of New Zealand’s economy and said to function as a builder of wealth, job and opportunities.
Fonterra has a diverse product portfolio and sells various products like ice cream, flavoured milk, cheese, pasteurised milk etc. it has a total of more than 300 products to its name. it is said to be world’s one of the largest dairy exporter, with a total of 28+ production sites in New Zealand of which all are well functioning and productive. Fonterra has an uninterrupted supply chain and production management system, which has been growing constantly and becoming better.
Fonterra has been self – reliant in so many aspects that it has ensured even producing electricity for itself in some of its plans. It was established in 2001 by merging two other dairy cooperative of New Zealand and was subsequently listen on the stock exchange as well. Later on, the company is now being run by a well-established management along with the inputs of 10,00 farmers.
The company has a valid presence overseas as well, and enjoys it similarly in New Zealand, with very names as its competition. The company is all the more innovative and has grown in it when news came out that they are implementing AI for production operations in Fonterra.
This reports will help us in understanding the project management carried out in Fonterra and all the factors which have influenced it so far. We will also aim to understand the intricacies of project management by using the example of the new Fonterra plant in Taranaki, New Zealand.
The project we are talking about here is the Taranaki plant of Fonterra which is being massively built on a huge scale. The project is said to be really ambitious since it will be a next generation dairy experience given to the people. This is a 24,0000 m dry plant cum store. It took nearly nine months to finish the construction and plant setting.
The plant was a success as the company eventually shifted their operations from Whereroa plant to here.
The plant is a state of the art facility and is known to carry out all the dairy functions with better speed and in an optimised way to allow the production to create some value.
The project scope is an essential document stating all the requirements of the project like deadlines, the future need for the project, functions and deliverables. This document along with the Project Charter allows us to ensure that the project remains in sync with what it is being done for and ensures how it will achieve the final cut.
For Fonterra, the following is the function of the project scope:
In order to create a well functioning project, it is essential to define its scope. And this ideally happens during the RFP process. RFP or Request for Proposal process is the first stage during which the company, as well as the project firm, interact.
Here, the project management firm interested to take the project from the company sends in a written proposal mentioning the scope of the project ie, what will they do in it, the cost incurred, the design of the project, future need of the project, functions and deliverables.
Based on the evaluation of various tenders that come in from various different project houses, the company then chooses the project house with the most suitable, innovative and sustainable project design which goes well with the cost as well (Rouse, 2016).
In this process, the draft RFP is submitted and the bidders then evaluate this draft. After evaluation suggestions are sent. In the final round, whichever company sets the record, gets the project.
Fonterra has subsequently gone through with this process to choose Calder Stewart as their ideal job partner for this project (Nelson, 2006)
For this project to come to life, it was essential that the planning phase of it was carried out in the right manner. Planning phase was important because major decision making for the part of the project was to be done here, and this is where the execution had to start off from (Taherdoost. H, 2015)
Executing the product was of great importance as it involved the entire process of team building, communication with the stakeholders, fund management etc.
Following are the things which were focussed on planning discussed in detail:
Every project manager is aware how a poorly done project or a project resulting in failure can hamper their image and can result in losses to the company as well as the client. Quality is an important aspect of project management and it is extremely important to ensure that the project comes out high in quality in terms of infrastructure, utility and sustainability.
If any of these factors above go unfulfilled it can result in a problem for the client company, here Fonterra (Marjorie, 2011)
Calder Stewart is known to give quality project management services to its client, and this time too they did not disappoint Fonterra anywhere.
For the success of any project, the following are the quality checks that it has to go through:
There is always some risk associated with any project, of any magnitude and type. These risks ensure that the project is done in the best way possible to avoid any future complications (Bridges, 2014)
In this Fonterra project, there was a huge risk associated as the plant installation had to be done with simultaneous production ie while one portion of the plant was running to produce milk powder, the rest of it was being completed. Now this was a challenge since any trouble in one part of the plant could reflect on the day’s production (Freffer, 2018)
Thus, a very meticulous and smart approach was taken to ensure that this was done in the best way possible.
The control system of a project is initiated to see what all factors are responsible for the control of things in a project it can be a control on wastage, control of growth and many such things.
Here, the iron triangle method comes into use. The Iron triangle method is used to show the constraints of a project like:
It focuses on three major things: time, cost and the quality of the project.
Total quality management is known as the process by which elimination of any and so errors encountered during the production process. It involves synchronising the supply chain, streamlining it and improving the employee functioning which subsequently reflects in customer satisfaction (Arya, 2010).
Total quality management or TQM is an important concept and is much needed when we discuss the functioning of a well-developed production facility like that of Fonterra (Crammer, 2017)
As mentioned above, for a high-level project like these, the leadership plays an important part. The person who works towards ensuring the proper working of the project. This can happen only when the leader himself is experienced, knows a great deal about managing such high stake projects, conflict resolution and can do damage control (Hussang, 2-17)
Mistakes are bound to happen in a project, and thus, the ideal leader is there to ensure that they swiftly sail by correcting it and making sure that it does not happen again.
Following are the quality of a good project leader, that helped Fonterra reach their goal:
After the project was completed, it got some very good reviews to form the inspection team of Fonterra. The plant was set up exactly as the thought of and was completely up to the mark in terms of safety and infrastructure appeal (Prabhakar, 2009)
This ensured that the project management team of Calder Stewart has done an exceptional work (ROUSE, 2017)
The plant was set up in the highest quality and was state of the art, that too in a situation of parallel running. Next,
Even though the project came out just as nicely done as expected, it is important to know that the project managers have to make sure that their working is completely foolproof in nature. This can be taken care by following the proper recommendation:
Calder Stewart and Fonterra both ensured that the governance of this project was fairly carried out without any issues. The companies had divided the scope of the project in such a way that each of them had their own different areas to look after, and the communication was flawless in the entire course of the project.
This clarity in their communication ensured that the project was not hampered and maximum results were obtained out of them.
This was an open window for them, as both the companies were aware of each other’s expectations and knew how deliverables were to be done, ensuring full convenience for each other (Alie, 2015)
Conclusion:
With this, we can conclude that the project for Fonterra plant carried out by Calder Stewart was a success because it followed some very good measures of quality control and planning strategically its project requirements and ensure that there were no loopholes or gap left off in this process.
We also saw various different aspects of how project management is taken care. For instance, in order to create a well-functioning project, it is essential to define its scope. And this ideally happens during the RFP process. RFP or Request for Proposal process is the first stage during which the company, as well as the project firm, interact. Quality is an important aspect of project management and it is extremely important to ensure that the project comes out high in quality in terms of infrastructure, utility and sustainability.
If any of these factors above go unfulfilled it can result in a problem for the client company, here Fonterra (Khurram, 2014)
Calder Stewart is known to give quality project management services to its client, and this time too they did not disappoint Fonterra anywhere. Lastly, the concept of TQM was well carried out by the project.
Total quality management is known as the process by which elimination of any and so errors encountered during the production process. It involves synchronising the supply chain, streamlining it and improving the employee functioning which subsequently reflects in customer satisfaction. (Ljungblom, 2016)
Focus was given on leadership as well. Leadership plays an important part. The person who works towards ensuring the proper working of the project. This can happen only when the leader himself is experienced, knows a great deal about managing such high stake projects, conflict resolution and can do damage control.
After the project was completed, it got some very good reviews to form the inspection team of Fonterra. The plant was set up exactly as the thought of and was completely up to the mark in terms of safety and infrastructure appeal (Nijhuis, 2018)
This ensured that the project management team of Calder Stewart has done an exceptional work.
Thus we could see how this project came to life and how it ensured success for both the companies, and established a relation between them for a long time.
Reference
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