Operation Management Practices and Their Impact on Organizational Efficiency: A Case Study of Tesco
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This report examines the impact of operation management practices on organizational efficiency using Tesco as a case study. It discusses the use of total quality management, the role of technology, and supporting functions linked to operation management practice.
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Contents INTRODUCTION...............................................................................................................................3 MAIN BODY.......................................................................................................................................3 Determine one operation management practice within an organisation.....................................3 Assess how operation management practice impacts the organisation in respect to efficiency.3 Assess how technology could be embedded in this process...........................................................3 Discuss what supporting functions are linked to operation management practice and assess how can they help with ensuring organisational success..............................................................3 CONCLUSION....................................................................................................................................3 REFERENCES....................................................................................................................................4
INTRODUCTION Operation management is defined as one of the most important practises utilised by businesses to achieve the highest level of efficiency and effectiveness. It also entails efficientlytransformingrawmaterialsintocompletedgoodsandservicesinorderto maximise the company's profitability. Operation management assists a company organisation in effectively managing and controlling its operations and processes(Magon and et. Al, 2018). Tesco is a well-known global grocery and general products retailer that is the subject of this study. Jack Cohen created it in 1919, and it now has operations in over 11 countries throughout the world. This study focuses on a thorough examination of the organization's operationsmanagementprocesses.Thisreportalsodiscusseshowvariousoperations management methods effect the firm in terms of efficiency, as well as the role of technology in this process. This research also highlights numerous supporting roles related to operations management methods, as well as how they contribute to organisational performance(Barnes, 2018). MAIN BODY Determine one operation management practice within an organisation One of the most important aspects of every business is operations management. It is described as the business procedures employed by a company in order to achieve the best level of efficiency achievable within the company. The corporate organisation employs a variety of operations management strategies to ensure that operations run smoothly and that targetedgoalsandobjectivesaremet.Alargenumberofbusinessorganisationsare experiencing operational issues as a result of the growing changes or trends, and these issues canbehandledorresolvedbyimplementingbestpractisemethodssuchasquality management standards and systems, stock control, supply chain management, information management, and so on(Brown, Bessant and Jia 2018). The complete quality management practise is taken into account in this report. Total quality management is defined as a continual process of analysing, determining, and decreasing manufacturing errors, as well as streamlining supply chain management and improving customer satisfaction. Total quality management is a structural approach to total business organisation management that focuses on improving the overall quality of an organization's outputs, including goods and services. In the case of Tesco, which is one of the most successful retail brands in the UK and the world's third largest retailer by revenue. Tesco is well-known for its efficient operations
management, which allows the corporation to maintain optimal stock levels. Tesco provides a strong guarantee in terms of product quality, ensuring overall quality standards throughout their operations. Total quality management is an efficient operations management strategy for the organisation since it allows them to maintain correct quality in their products and services, attracting a large number of customers and improving overall performance. The following are the several major TQM principles that apply to Tesco(Abubakar and et. Al, 2020): Customer-centricity:Customer attention is one of the most important core principles of comprehensive quality management. One of the most important aspects of a good TQM system is understanding how customers judge quality. Customers' comments and reviews assist organisations in determining whether the product and service quality is satisfactory. Tesco, for example, efficiently focuses on their customers, collects continual feedback in the form of reviews, surveys, and so on, and adjusts their quality accordingly. Employee engagement:it is another fundamental principle of comprehensive quality management. Every employee in an organisation is responsible for ensuring that the product and services are of high quality. Employees must ensure that the target clients receive great service. In the instance of Tesco, the manager ensures that staff are given the authority to make their own decisions, as this will allow them to participate in the quality management process. Continuous improvement:Using the concepts of overall quality management, a corporate organisation can enhance its processes and provide excellent services to its consumers. In the instance of Tesco, applying the lean six sigma principle allowed the company to create a culture of continuous improvement, inspiring staff to provide high- quality services to customers and increase its market share(Cachon, Girotra and Netessine, 2020). Assess how operation management practice impacts the organisation in respect to efficiency Total quality management as an operation management strategy has a good and helpful impact on the organization's productivity and efficiency. From product planning to scheduling and monitoring, total quality management encompasses all aspects of operations management. It focuses on enhancing the business' overall quality, allowing them to achieve
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acompetitiveadvantageintermsofquality,productivity,customersatisfaction,and productivity. It has been determined that incorporating Total Quality Management into an organisation has a significant positive impact on the organization's performance. Tesco has used total quality management since it allows them to improve their entire efficiency. The following are some of the ways that total quality management improves Tesco's efficiency (Torlak, Demir and Budur,2019): Increased productivity:Total quality management is one of the most important integrated systems for increasing a company's overall productivity. It aids in ensuring that qualityismaintainedthroughouttheorganization'sprocess,resultinginhigh-quality products. Tesco's usage of total quality management assists the organisation in increasing overall productivity. Waste and defect elimination:The use of overall quality management also aids the business organisation in eliminating any waste or fault in the operational process. It aids in the detection of non-productive activities and waste, and regular checks aid in the reduction of time and resource waste. Tesco's operational manager use smart resource planning to effectively and efficiently divide the required resources. In addition, the application of overall quality management practises allows a company to periodically examine its processes, resulting in the elimination of any waste and increased efficiency(Demir, 2019). Reduce product defects:Total quality management assists businesses in reducing product defects. This method ensures that items are made correctly and effectively without any failures or defaults. Tesco's use of complete quality control allows the company to reduce product defects and obtain accurate results from various manufacturing processes. This aids in cost reduction and can be used to improve defective items, hence increasing the company's efficiency. Developing an effective communication system:The implementation of proper total quality management also aids in the development of an effective communication system by enhancing collaborative sanctions. Tesco, for example, ensures that the organisation has an effective communication system in place so that team members and departments can convey their ideas and points of view. This helps the organisation avoid misunderstandings by fostering clarity of roles and duties, which leads to the achievement of targeted goals and objectives while also increasing overall efficiency.
Enhance unity:The use of total quality management in the organisation also helps to improve unity because it is considered an integrated system of the organisation that leads to the formation of integral unity involving all of the company's stakeholders with a major focus on continuously improving the company's processes. It aids in enhancing the company's efficiency. Tesco's use of total quality management aids the organisation in improving its integral unity, resulting in improved overall performance and profitability(Boscari ant et. al, 2018). Assess how technology could be embedded in this process The increasing use of technology by every corporate organisation around the world to carry out their activities efficiently. In the case of operations management methods such as total quality management, diverse technology is employed to ensure that their activities run smoothly. The following is an example of how technology has been implemented in Tesco's operational management practises(Tönnissen and Teuteberg, 2020): Social media:it is one of the most widely used technical platforms by businesses since it allows them to engage directly with their target customers and inform them about the company's brand image, products, and services. The company's numerous divisions, such as marketing and human resources, utilise this type of technology. In terms of operations management, social media also assists the organisation in achieving favourable results. In terms of comprehensive quality management, the usage of social media allows a firm to become more consumer-focused, allowing them to gain valuable insight into their target customer base at a minimal cost. One of the most important and fundamental principles of comprehensive quality management is to make the organisation more customer-centric and provide quality services to them, resulting in increased customer satisfaction. Social media is critical in achieving this goal because it allows companies like Tesco to engage directly with their target customers and provide them with high-quality services. The usage of social media platforms assists organisations in gathering data on changing consumer preferences and tastes, which can then be used by the operational department to execute overall quality management accordingly. Furthermore, the utilisation of social media technologies aids commercial organisations in improving employee collaboration and developing effective communication channels. Interdepartmental communication and collaboration among all levels of the organisation is considered to be an important part of total quality management,
and the usage of social media technologies can help with this aspect as well. The good consequence of this technology is that it aids in improving communication and properly assessing consumer data.The good consequence of this technology is that it aids in improvingcommunicationandproperlyassessingconsumerdata.However,collecting consumer data may pose a cyber security risk to the organisation, resulting in a negative consequence. In Tesco's case, effective and appropriate use of social media technologies can aid in the successful implementation of the entire quality management process. It will also assist the organisation in developing a customer-centric approach and obtaining useful consumer insight(Choi, Guo and Luo, 2020). Artificial Intelligence (AI):it is another rapidly evolving technology that businesses may utilise to improve total quality control and overall operations management. The practical application of total quality management tools and procedures poses a number of challenges forthecorporation,includingconcernswithcontrolling,analysing,andinterpreting organisationaldatainordertoemploytotalqualitymanagementmethodology.The organisation may explore using artificial intelligence to aid in the effective use of TQM procedures. Artificial Intelligence can also be utilised to improve product and service quality by utilising sensors and measuring devices. Quality is one of the most essential aspects of comprehensive quality management, and it may be improved with the help of artificial intelligence. Artificial intelligence is useful since it allows for a variety of cost-effective and time-saving approaches for evaluating and inspecting product and service quality. However, as the business environment changes, AI technology does not improve; it must be enhanced, which takes more time and money. Tesco's proper usage of AI technology will allow them to efficientlycarryouttheiroperationalactivitieswhilealsoimprovingtheirquality management process(Dogru and Keskin, 2020). Discuss what supporting functions are linked to operation management practice and assess how can they help with ensuring organisational success There are several types of supporting activities which are interrelated to the operation management practice which assist the company management in their success.in relation to the TESCO PLC, the activities which are linked to the operation management practice has been discussed below: - Quality planning: -this is basically the process in which all the aspects are analyse which are crucial not only for the business process but also essential for the project and
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operations. With the help of this proper guidelines are made in order to accomplish those factors. This comprises of proper planning related to the proper quality standard, practices and resources. In relation to the TESCCO Plc, proper plan is developed by the operation management for attaining the set quality standard which result in improving the overall organisational performance. With the help of proper planning in relation to quality they can effectively achieve their product standards. Quality assurance: -this activity is being considered as the most important function which are linked to the operations practices. Quality assurance is basically an that give assistance to the management in determining that whether, the products fulfil the set quality standard or not. In context to the TESCO Plc, the operational practice of TQM assists the company in offering the excellent quality of products to the target audience by giving them assurance them any form of defect can be removed. With the help of this the entire profitability of the firm along with their productivity has been improved by which consumer satisfaction level has been and the potential base of buyer has been increased. This result in developing good image of the company in the mind of their customers by which objective can be achieved. Quality control:-Another main activity which is linked to the TQM is the control over the quality. Under this, it is being make sure by the operational management is that the production of the goods is done by following the set guidelines and standards. In addition to this, they also continue overlook and control the production function. In relation to the TESCOplc,thisactivityallowsthecompanymanagementinpromotingthequality consciousness along with the effectual organisational culture within the firm. This result in that they can made more emphasis on the continuous improvement. In addition to this, effective control over the product quality can be done with the help of this function by which quality product can be offered and desired goals can be attained(Ruparathna, Hewage, and Sadiq, 2018). CONCLUSION Accordingtothefindingsoftherespectivereport,properoperation managementenablesbusinessestosuccessfullymanageandcontrolall operational-related activities, hence achieving targeted goals and objectives and
improving the company's overall performance and profitability. This research examineshowoperationalmanagementpractisessuchasoverallquality management assist businesses in reducing waste and defects, allowing them to increaseproductivityandmarketimage.Theimpactofoverallquality management on firm efficiency, such as greater productivity, waste elimination, and product defect reduction, is also examined in this paper. The use of technology in this process, as well as the support tasks related to comprehensive quality management, are equally important.
REFERENCES Books and journal Magon, R.B., Thomé, A.M.T., Ferrer, A.L.C. and Scavarda, L.F., 2018. Sustainability and performance in operations management research.Journal of cleaner production,190, pp.104-117. Barnes, D., 2018.Operations Management. Macmillan International Higher Education. Brown, S., Bessant, J. and Jia, F., 2018.Strategic operations management. Routledge. Abubakar, S.G., Mutalib, Y.O. and Abubakar, M.Z.U.R., 2020. The Human Resources Sustainability Debate: Exploring the Role of Operations Management as a Critical FunctioninanOrganisation.ReviewofPoliticsandPublicPolicyinEmerging Economies,2(1), pp.19-25. Cachon, G.P., Girotra, K. and Netessine, S., 2020. Interesting, important, and impactful operationsmanagement.Manufacturing&ServiceOperationsManagement,22(1), pp.214-222. Torlak, N.G., Demir, A. and Budur, T., 2019. Impact of operations management strategies on customersatisfactionandbehavioralintentionsatcafé-restaurants.International Journal of Productivity and Performance Management. Demir,A.,2019.THEIMPACTOFSTRATEGICOPERATIONSMANAGEMENT DECISIONSONSHOPPERS'WELLBEING.AsianAcademyofManagement Journal,24(1). Boscari, S., Bortolotti, T., Netland, T.H. and Rich, N., 2018. National culture and operations management:astructuredliteraturereview.InternationalJournalofProduction Research,56(18), pp.6314-6331. Dogru, A.K. and Keskin, B.B., 2020. AI in operations management: applications, challenges and opportunities.Journal of Data, Information and Management,2(2), pp.67-74. Choi, T.M., Guo, S. and Luo, S., 2020. When blockchain meets social-media: Will the result benefitsocialmediaanalyticsforsupplychainoperations management?.TransportationResearchPartE:LogisticsandTransportation Review,135, p.101860. Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for operations and supply chain management: An explanatory model drawn from multiple case studies.International Journal of Information Management,52, p.101953. Ruparathna, R., Hewage, K. and Sadiq, R., 2018. Multi-period maintenance planning for public buildings: A risk based approach for climate conscious operation. Journal of Cleaner Production, 170, pp.1338-1353.