ALDI's Operations Management Strategies: Just in Time, Total Quality Management, and Lean Production

This report discusses ALDI's operations management strategies including just in time, total quality management, and lean production. It explains how these strategies help the company reduce costs and increase efficiency. The report also provides an overview of the company's approach to merchandising and its core values.

Operational
Management 1

INTRODUCTION
The operational management has been addressed as the establishment of the practices of
the business which is concerned with respect to the transformation of the raw materials into the
processed goods and services. This process is done in a more effectual way which reduces the
cost of production by which the revenues of the company gets increased. The said report is based
on the company name ALDI as incorporated in the year 1946 by its owner Karl and Theo
Albrecht. The headquarters of the company is situated in the Essen and Mulheim, Germany and
they have around 11325 stores all across the globe (Hai, L., 2018). Moreover, the concept of lean
production has been elaborated as the way which aids the company's management to have more
focus on the aspects such as shredding down said costs and also ensuring that the products
quality is maintained. Further the measure of just in time is mainly an process of management of
the inventory, where the goods and services are to be accepted from the supplier according to
the requirement. With the help of this approach the organisation is able to focus on the reducing
the inventory holding cost and increasing the inventory turnover. The total quality management
may be defined as the process of detecting and reducing the wastage and fault in manufacturing
process. With the help of this organisation is able to ensuring that employees are up to speed
with training. The said report is based on the formulations which are applied by the ALDI in
order to reduce the wastage and operational cost.
TASK 1
Just in time approach :-
It is simply a policy of management rather than a technique. The just in times process has
been addressed as the production of the goods in the minimal number of quantity in the less
number of time, thereby eliminating the need of inventory (Katamine, K., and et., al). Further the
discussion of one major rule of f the JIT in context to the said company which is the ALDI is as
follows-
 Total Quality management :- generally it is assumed that when all the workers of the
company altogether pay attention to the attributes of the product then in such case they
can acquire the comparatively high satisfaction and also the long term growth of the
company in the market.

 Production management :- it is fundamentally, the use of 6 M's in the production
process in a very effectual way. The ALDI organization enjoys the system of pull based
rather then the system of JIT. Further in the system of pull based the inventory needs of
the customer are driven by it.
 Supplier management :- it is all just about making the longer duration relationship with
the supplier which benefits the company. The said company work conjointly along with
supplier in JIT (Shuanglong, S., and et., al., 2018). They attained the fault free good when
needed. By this measure the inspection time of the goods can be minimized or to an
great extent can be saved.
 Inventory management :- this management consists of evaluating the amount of
inventory left with the organisation while in the right place and time. JIT is not all about
controlling the stock company have to hold little-to-no inventory. The ALDI company
focus on the safety of the inventory and work in progress.
 Human Resource management :- it allow the authorities of the organisation to manage
the people of the company in the way to make maximum productive. In JIT, the said
company which is ALDI, involve all individual in the process of continuous
improvement in order to minimize the costs concerned production and disposition of the
leftovers.
Just in time approach has been used by the ALDI in order to manage the stock which is needed
by them. Stock is expensive. The respective company not spent or invest too much amount in
their stock for a long period of time by which proper circulation of money can be done in a very
effective manner. In addition to this the process of buying and selling the goods has been done
on the basis of time-based management principles. This means that the management of the
respective company require fewer cashier and tills.
Total quality management:-
The total quality management is basically an approach which help the management to
enjoy the success in the market through customer satisfaction for a long period of time (Yinghua,
S.,and et., al., 2019). The important concept of the TQM in context to the said organisation,
ALDI is discussed as follows-

It is refereed as a decrease chain selling of superior product for the appropriate price, it sated that
quality of the goods involves the safety of customers their heal as well as the well-welfare of
the workers.
 Strategic & systematic approach :- here the management of the quality section along
with the formulation of the strategic plan aids the company with respect to the designing
that how the aims and objectives of the company can be achieved in effective manner.
 Decision-making based on facts :- with the help of this principle the management of the
company can code their performance by the use of certain facts which are present in front
of them . The ALDI company asses their performance by using sales data, revenue
figures, and customer retention rates and many more.
By using the said measure the company named ALDI can formulate powerful business relations
with its supplier. Moreover, the company can with the given aid of this measure can
continuously improve their product while meeting the required international standards Along
with this, the ALDI can focus on motivating their employees by giving them appraisal, praises,
incentive, perks, decent salary and providing them a well structured training programmes and
opportunities (Zhen, L., and et., al.,2019).
Lean production system :-
The lean manufacturing procedure is simply a method which aids the organisation with
respect to the termination of certain practices which are of wasteful nature from the business in
order to regain its efficiency. The said process mainly with respect to the ALDI company is as
follows-
 Continuous Improvement – It involves the culture in which workers are consistently
occupied in improving the products quality.
 Just-in-time Production – Materials are managed in a very effective manner as the
management of the firm needed to eliminating the requirement to regulating the large
stock.
 Time-based Management – it is an measure that intent to decrease the period of time
which has been discharged in managerial

functions.
CONCLUSION
It is concluded from above report that the considered organization has different approach
to merchandising concentrate on giving their consumers with superior quality. Goods that are
value for funds. ALDI attains this by make sure that their affairs are as efficient as opportunity
while exercising their core values which are the simplicity continuously and duties. Further while
implementing a variety of lean approaches ALDI is capable to provides its consumers the
maximum quality of products and services while fetching the least prices.

REFERENCES
Books and Journals
Hai, L., 2018. Quality Control of Environmental air Automatic Monitoring and Operation
Management. Energy Conservation & Environmental Protection, p.09.
Katamine, K., and et., al., A Preliminary Study on Operation Management for One-way EV Car
Sharing System in University Campus.
Shuanglong, S., and et., al., 2018, October. Design and Practice of Integrated Platform for
Operation and Management of Fast Charging Station. In 2018 2nd IEEE Conference on
Energy Internet and Energy System Integration (EI2) (pp. 1-5). IEEE.
Yinghua, S.,and et., al., 2019, October. Research and Analysis on Key Technologies of
Equipment Operation Management Based on Distribution Automation System. In 2019
3rd International Conference on Data Science and Business Analytics (ICDSBA) (pp.
23-28). IEEE.
Zhen, L., and et., al.,2019. Operation management of green ports and shipping networks:
overview and research opportunities. Frontiers of Engineering Management, 6(2),
pp.152-162.