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

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-