8. Building a Dairy Plant: Accelerating Speed Through Splitting and Harmonizing

by Alexander Laufer, Jeffrey Russell, and Dora Cohenca-Zall

Shifting from Park to Drive

Tnuva Food Industries Ltd., a 70-year-old company and one of the ten largest industrial companies in Israel, initiated a major project that called for switching to a new “specialized dairy” organizational structure. No longer would five small, local dairies each produce and market all of its dairy products to the local buyers. Rather, three large, modern dairies would be built, each with its own production specialty, relying on logistics centers for distribution. One of these three new dairies was slated to specialize in cup products (cottage cheese, yogurt, and so on). That dairy ...

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