This report discusses the Total Quality Management practice in Tesco PLC's operation management, its impact on customer satisfaction, organisational development, and competitive advantage. It also evaluates the use of technology and supporting functions linked to this practice.
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Table of Contents Introduction.....................................................................................................................................3 Main Body.......................................................................................................................................3 Determine single operation management practice within Tesco plc..........................................3 Critically evaluate how this operation management practice impacts to efficiency of the Tesco plc...............................................................................................................................................5 Evaluate how technology could be embedded in this process or how this has already been achieved......................................................................................................................................6 What supporting functions are linked to this operation management practice and evaluate how can they assist with ensuring organisational success?................................................................7 CONCLUSION................................................................................................................................8 References.....................................................................................................................................10
Introduction Operation management is the administrative business practice to create the maximum level of efficiency in the operations of the organisation.The operation management is the complex process of converting and allocating the raw materials and labour into the finished goods and services. In every organisation there is a operation management team that has role of balancing the cost with the revenues in order to attain the highest net operating profit(Roy,Shah and Gajjar, 2020).The present report will discuss about the operation management of the Tesco plc. The company is British multinational groceries and general merchandise retailer headquartered at Hertfordshire, England, UK. The Tesco plc is the third largest retailer in the world in respect of the gross revenues. The report will outline the operation management practice in the organisation and how it impacts the business in regards of efficiency. The report outlines the use of technology in operation management practice. Main Body Determine single operation management practice within Tesco plc Tesco plc is the large size multi- activity based organisation that works in various segments and work on large number of operations in the order to stay competitive.The operation management includes the utilization of the staff, materials, equipments and technology in best manner in order to meet the client needs in most efficient manner. There are different types of operation management theories such as Six sigma, Total quality management etc. that are concerned with the handling of production and business operations in the most efficient manner. The Tesco plc is diversified into highly different segments such as retailing of books, toys, petrol, telecom and internet services, electronics etc. In order to maintain the value created by the company through its low cost and high quality products,the company has to effectively manage its operations using different practices of quality management. One of the key practice of operation management that quality manager of the Tesco plc utilize in its organisation is Total quality Management. This operational management practice is the approach to manage the quality of service and product for the long term success of the Tesco(Sun and et. al., 2018). In context of the Tesco plc,all the employers and employees participate in this practice to improve
the processes, services and products. The TQM also help the Tesco in improving the quality of their organisational culture. The TQM (Total quality management) system of the Tesco plc is the customer focused system that aims at thecontinual improvement of the employees.By implementing the TQM in the Tesco,the company quality and operational manager develop different strategy to integrate the quality disciplines in the culture and operations of the company. The TQM practice of operation management consist of 8 principles that focus on maintaining and enhancing the quality of the operations of the Tesco plc. The eight principles are discussed underneath: Customer focused approach: as per the Tesco plc the customers are king that ultimately identifies the quality level. Total involvement of employees: when all employees are committed high performance culture is integrated in Tesco leading to continuous improvement. Process centred approach is the fundamental rule of the TQM as when there will be quality in the processes of the Tesco plc the products and services delivered will be automatically in quality. Integrated system is must in order to align action at common goals, mission and vision of the Tesco plc. Strategic and systematic approach is critical for the TQM in order to develop the strategy as per the vision and mission of the Tesco plc and also to integrate the quality in strategic formulation. Continual improvement process drives the Tesco plc towards the regular improvement of employees’ skills, processes in creative and analytical way to make the firm competitive. Decision making is also part of TQM as the fact based decisions are more appropriate, accurate and efficient for the Tesco plc to maintain and enhance itsquality and performance(Shaikh, 2018). In order to perform all the above principles, the most important principle or part of the TQM is the effective communication in the organisational culture of the Tesco. The Tesco plc maintain healthy, friendly and informational communication in their day to day operations.
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Thus, the successful implementation of the TQM by the quality department of the Tesco plc had ensured that the company is able to provide the quality of the product and services beyond the customer expectation. Critically evaluate how this operation management practice impacts to efficiency of the Tesco plc The quality department of the Tesco has a responsibility of taking care of the activities related to the quality of their processes, employees’ performance, operations quality in order to deliver the customers with best quality services and products for higher satisfaction(Größler, 2020). The effective utilization of the Total quality management practice in the operation management is helping in the company in several manners in terms of increasing the efficiency of the Tesco plc. The company has implemented the respective operation management practice to gain the competitive edge in terms of the quality, customer satisfaction, productivity and profitability.Some of the key positive impact of the TQM on the efficiency of the operations, culture, social, economic etc. of the Tesco plc are discussed below: Improved efficiency of customer satisfaction:A major benefit of the TQM is on the customer satisfaction. In case of Tesco plc, the company through the characteristics and principles of the totalqualitymanagementhaseffectivelygainedthehigherefficiencyonthecustomer satisfaction as the long term competitive advantage.By TQM, the Tesco plc determines the best strategy, assures the quality that could equate the expectation of the customers of the firm in terms of price, service and product.For this company has implemented the TQM and its applications into its pricing strategy, production process and into the customer service strategies. Forexample,with this practice the company has reduced the waiting time of the customers standing in queues for long for payment of products. Increased efficiency in organisational development:the TQM practice of the Tesco plc work best to improve the working culture of the company by addressing and educating the employees of the Tesco regarding the quality and also by making the quality as the mission and main objective of the company(Grover, Kar and Dwivedi,2020).Thus, by this, the focus of employees is on the quality of the products and services that leads to the proactive working culture in Tesco plc.For example, it is seen in the Tesco plc that TQM has improved the flexibility in the organisation and also fostered the effective communication between the employers and employees.
Increased efficiency of Competitive advantage:The application of the TQM in the Tesco plc has resulted into the increased efficiency of overall organisation activities which has bring forth all benefits thereby making the company more competitive. Through TQM,the Tesco has retained their competitive edge by reducing the prices, innovating new products as per the needs of market and through improving the quality and features of exiting product. Thus, in Tesco plc, the applications of the TQM has increased the better productivity and position in market through quality as the strategic competitive advantage. Thus, it is critically evaluated that in case of Tesco plc, the TQM has outstandingly increased the efficiency of the company in every single aspect. Most importantly, the company has gained more productivity in all the diversified areas and also the resources are effectively planned and managed in each area without any wastage(Slack and Brandon-Jones, 2018).This has helped the Tesco plc to gain the higher operating net income. Evaluate how technology could be embedded in this process or how this has already been achieved In the today's complex global business environment there is the huge competitive rivalry between the organisations of each sector. The organisations of the retail industry of UK are facing heavy competition with the changing customer expectations and demands(Tönnissen and Teuteberg,2020). The company'slikeTescoplc areusing thekey force of technology advancements as the tool to meet the customers’ needs and to provide them satisfactory experience. In the technologically advanced business environment,there is emergence of different technology that are easing the processes, operations and their functions. In case of implementing the TQM practice of operation management in the Tesco plc,the company is currently using the technology and is also embedded with the technology in its applications of TQM. The improvisation of technology in total quality management process will help the Tesco to earn business achievements and organisation growth. The IT technology is the necessity for every business which helps the company to better performance. The ITOM (Information technology Operation Management) technology has a huge scope of measuring the performance of the employees precisely and accurately in the Tesco plc(IT operations management (ITOM),2021). This measurement of performance through technology will help in the process of TQM of the Tesco as the information collected will be more fast and accurate. The TQM and ITOM technology are interdependent on each other. In
Tesco the during the TQM process the technology increases the quality awareness and online information related to the Tesco plc in the less cost, thus saving the operational cost. In terms of technology there are communication and computational tools, advance DBMS all which are the major part of the total quality management system(Lee and Tang, 2018) (Lee, 2018). The use of this technology in Tesco helps the members of the firm in development through procedures and incessant relationship with the workers. Tesco plc can effectively embed the IT technology along with the process of total quality management by developing the application called Total Quality Management Information System (TQMIS).This operation management digital applicationis the integration of IT technology and TQM practice(Yu and et. al.,2020).This will help the company in easy operational management as the information will be acquired, stored and manipulated fast and processed automatically in the digital form. Thus, this will help the company in facilitating growthintheemployees’productivity,enhancethepurchaserscommitmentandmost importantly quality of service and product will be served. However, it is evaluated that use of technology with the TQM process will help the Tesco plc in completing their task before time with greater efficiency and also the cost will be saved. The most important technology used by the Tesco plc with the TQM is the digital recording system that automatically records, filters and manage the resources, their quantity, amount of items deducted or used etc.(Liao and Chen, 2018).In Tesco plc,there are already the KPIs that already measures the performance of the employees or the organisation. The results of the KPIs when integrated with the TQM of the company will help the managers of the quality department in effective analysis of the company's performance. What supporting functions are linked to this operation management practice and evaluate how can they assist with ensuring organisational success? There are the different supporting functions that are related with the TQM operation management practice which involvesplanning, controllingand implementing of the operations and manufacturing of the organisation with the help of operation management department. The integration of the different supporting functions with the operation management practices is directly linked to the products and the implementation of the manufacturing and production of products with the operational activities of the company(He, Mak and Rong, 2019). Tesco PLC has installed a new digitalized in store system calledScan as You Shop and Self Check out
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stationwithin the organisation for which company requires to develop an operational plan that it can effectively maintain and accomplish the desired quality of customer service at the brick and motor store.The IT functions is one of the key supporting elementthat are linked with the TQM practice of operation management in collecting storing and processing the huge amount of information gathered from different areas in order to convert the information into productive and usable data. The transportation and logistics function of the Tesco PLC is also supportive towards the TQM practice of the operation management. As the managers of the transportation and logistics department work hand in hand with the operation management in order to you have effective and quality based supply chain of the goods. This also assist in transporting the right amount of goods at the right location among the right people in order to maintain the quality of service.In Tesco plc the transportation and logistics functions are also highly related with the production function of the operation management because they are required to produce the goods and the next step of produced goods to plan the transportation of those goods in the warehouse or at the right place in the right manner.Planning function of the quality management department is supportive towards the total quality management operation practice as there is use importance of planning when there is operation management within the Tesco PLC. After analysing the different functions that supports the total management practice of operation management of the Tesco PLC is analyse it is very important for the success of the company because without the integration of the different functions of the department the company cannot develop an effective strategy and cannot reach their goals(Iwamura and et. al., 2019). In every organisationthat develops and manufactures the products or has a huge line of operations must integrate their different functions with management practices of the operations in order to gain the best results. However, the supporting functions of the Tesco plc are highly essential forto gain effective quality in their operations and also have a requirement of optimally utilising their resources in order to increase the net operating income. CONCLUSION It is concluded from the above study, of the operation management is clear that in order to maintain the effective management of the operations the companies must improvise effective operationmanagementpracticesandstrategies.Itisanalysedthateffectiveoperation
management provides an organisation with quality products and services which satisfy the consumers. Operation management is considered as the most important because it helps in achieving the missions and visions of the organisation and also there is the effective production that helps to reduce the cost of production and thereby increasing the profit margin for the organisation.The Total Quality Management maximum profits and productivity in organisation. Operation manager it is very essential to evaluate the practices that organisation currently using in order to manage their operations so that the positive impacts can be enhanced and negative results for bad impacts can be mitigated at the right time in order to have retain customers through effective practices. Operation management is also highly related to the technology as with the growing technology companies are offering several technical advancements into their operation management systems to is the process of operation management also to reduce the cost with the best results. It is analysed at various functions of the business are connected and supportive towards the operation management so that the integration of different functions can result in to effective operation management within an organisation.
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