Operational Management in Tesco: Analysis and Recommendations

This report analyzes the operational management in Tesco, including processes like Total Quality Management, Supply Network Configuration, and Capacity Planning and Control. Recommendations are provided for each process.

Operations
Management

Table of Contents
INTRODUCTION......................................................................................................................3
Process used by Tesco in its operations.................................................................................3
Tesco supply network mapping.............................................................................................4
Application of principles of operational management...........................................................4
Total Quality Management................................................................................................4
Capacity Planning and Control..........................................................................................5
Supply Network Configuration..........................................................................................6
Operations Strategy Matrix....................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................8
Books and journals.................................................................................................................8

INTRODUCTION
Operational management can be defined as management of organtional activity for increasing
the efficiency of origination with aim of achievement of goals and objectives perfectly. This
is related to effective utilization of resources like employee, financial resources and many
more with a way to archive maximum productivity in their work. This report is carried on
Tesco. It is a British retail giant which is famous for its varied range of products and
customer services. In this report there is analysis of operational management in
organizational where all points related to it will be covered. Firstly, there processes are chose
which are Total Quality Management, Supply Network Configuration Capacity Planning and
Control where there mapping process will also be evaluated. Then after, the selected process will
be evaluated and recommendation will be made according to process. In the end, there is use of
'Operations Strategy Matrix' which helps in identification strategic impact and decision making of
firm (Lee, 2018).
Process used by Tesco in its operations
Tesco is British company with operates in retail business where it provides services
to customer, this operational process have number of strengths which help firm to produce a
good plan and develop strategic advantage to firm within the industry. Company adopt the
operational function where they focus on providing best products which are related to
development of innovative products which can attract customer towards firm. It also has
spatiality then it manufacture products in small lots for limited time which also increase
product value of firm. Company follow processes where it manufactures its product with
management of quality in process and reduction in wastage of resources for effective
utilization. It uses different levels in its operational system. It includes both automatic
machines and human resources in firm where they both work together for achievement of
maximum productivity. This is also done with help of effective management of supply chain
as company has good relation with suppliers as well as its distributors where it sells product,
tis also has research and development department which help firm in getting access to
innovation in their products and identify needs of customer in market for production of cars
(Ivanov, Tsipoulanidis and Schönberger, 2017).
Tesco is the leading giant which has a strong supply network. Company adopt the policy of
direct to store delivery where supplier organises organised and head to control. There was no
range in retail prices. The test to find minimum control to divide with available supplies

standard company was saved hit by operation checkout. After that, company bring
centralisation system where manufacturer and supplier have to supply their product
distribution centre of Tesco rather than the store. Company have number of products with it
but there is no sense of quality in them. Form number of regulations which help in controlling
the retail selling price of the product. After that company start composite system where as to
regional centre for development in temperature specified for respective product and also
vehicle were adjusted to maintain minimum temperature for product when transporting to
secure and quality and to avoid waste. After that company shifted to vertical collaboration
and lean supply change where in this year it mainly focus on reducing the waste in supply
chain of Tesco by four line lean supply chain practices and other concepts. Help form in total
quality management and increasing the capacity of supply chain of also strengthen the supply
network (Reid and Sanders, 2019).
Tesco supply network mapping
This is the function in which Tesco follow as a process of supply network. This mapping
show that what network of supply chain did Tesco follow in its operation. The supply
network test quiz based on three factors which are increasing availability for their customer

using the scale of business, to reduce the waste of food while ensuring quality and freshness
and improving the overall efficiency through building a stable business while maintaining
partnership with their suppliers. By this motive company want to achieve its goals and
objective through identifying the different systems for achieving this basic factor company
developed some points which are related to development of blueprints of teams the supply
ordering team security and loss prevention team and the store ordering team. These all will
help Tesco in maintaining the above base element which is discussed in structure (Hitt, Xu
and Carnes, 2016).
Application of principles of operational management
Total Quality Management
This can be defined as an approach which is based in structure of firm. It has main focus
on improving qualities of organtional opportunities, goods and services by continues improvement
in process of firm. It uses elimination of those process and functions which are not productive for
firm and are not able to produce profits. This aims on holding the practices which are related to
production process and being accountable for overall performance and quality of goods and
services of firm. It is like six sigma concept but basic difference in both is that it focuses on
reduction in errors with internal guidelines where six sigma focuses on reduce defects. In context
of Tesco this function can be applies on supply chain network of firm as Tesco can use total
quality management and it supply chain has it have to combine commitment, culture continuous
improvement, corporation, customer focus and control for total quality management. quality
management in supply network elimination of some factors like mediators delivering product
location far away from stores cash on delivery and many more quality in operation as avoiding
cash on delivery feature help in reducing the wastage of efforts of employees when customer
doesn't receive order. Avoid addition of mediator increase quality of supply chain as Tesco can
decrease its cost of operation which will definitely help in increasing profits (Hitt, Carnes, and
Xu, 2016).
Issues
 Total quality management leads in decrease of prices because of cost control and this can
act as changing mind of customer that low prices brings low quality. This is an issue in this
principle.

 Tesco involve it employees from senior manager and manufacturing workers in total
quality management system and because of it the middle manager feel an important this
impact on the quality service of that part of supply chain.
Recommendation
It is recommended that the issue of quality and price can be solved by company with the
use of effective advertisement techniques and building good relations to customers. This will help
company in retaining its image and changing the mind-set of customers that price doesn't effect on
quality. Solving the second issue company e also focuses on the role of middle manager in
organisation where it has to assign some work to the manager it doesn't feel low and can provide
its quality services to organisation.
Capacity Planning and Control
This is the process which is related to management of capacity of organtional for a
given period of time where firm can work effectively by using its resources properly. The
major factors in capacity determination are cost, revenue and working capital. This all will
combined together to form a good capacity plan which can help firm in getting advantage in
long run. This follow a process which is divided in three stages like measure aggregate
capacity and demand, identify alternative capacity plan and chose the most appropriate
capacity plan. This ensures quality management in production shop with effective
management of orders and production of them. this principle can also use in supply network
of Tesco as capacity planning of an individual supply inspector and effective control and
monitor will help in development of supply chain. It Can be implemented as every supplying
factor must be evaluated in organisation evaluation should include identification of their
capacities and planning for their capacity that how it can be increase in future. A good control
and monitor will also ensure smoothness in flow of work as well as reduction in school
activities within supply chain some waste food waste activities like theft of raw material and
finished goods, Low caring of sensitivity products and harsh delivery of products to
customer. These all can be controlled by firm in production process by increasing capacity
and control over operations (Heizer, 2016).
Issues
There are two major issues in Tesco which are restricting success of this principal on
organization.

 The first issue is that Tesco supply channel has number of outsiders which are beyond
the firm control so it has to consider this factor as a challenge to towards increasing
capacity and control.
 The second factor is there is not adequate market condition where firm can increase
capacity of supply network and can identify there potential to match according to
control standards of firm.
Recommendation
It is recommended that for solving the first issue form can use to develop internal
factors supply chain where it can increase their capacities according its neat and maintaining
that difference between input and output. Internal factors Tesco can also control the flow
inside the company environment which is easy to control then outside environment. In second
factory it is recommended that Tesco can use lower cost and effective quality technique
solving this issue this is because there are market conditions which are not in favour of
company so it can reduce the cost of its product where prices can be controlled and this will
strengthen the supply chain factors and increased their capacity where from also use them and
controlling its activity and performance.
Supply Network Configuration
Supply chain configuration can be defined as process of firm for using its supply chain
network to achieve its goals and objectives. It is a process of creating a unique supply chain
network where from can get the benefits of fast supply of its product and maintainability
product in market. Supply chain configuration for management can be defined as
arrangement of flow of goods and services which include all process that transform goods
and services into final product where can get advantage in marketplace. It can also said as an
developing and establishing supply change that that are so efficient and economical which
can help in decreasing cost. Everything can produce for develop for selling to its customers.
This is the most important parts of supply chain management of Tesco as it help in
identification of factors in supply chain of Tesco, This help foreman maintenance of cost and
standardization in product. This also helps in classifying the supply channel in different
sectors according to their specification. It also helps in maintenance of standards according to
industry supplies product with cost benefits and considering other competitor in market. This
will also help in managing the different aspects of suuply chain which are related to function
of factors (Gölzer and Fritzsche, 2017).

Issues
 There is low manufacturing flexibility in Tesco which can act as an issue which is
related to function of supply chain configuration in industry where Tesco is operating.
This have solved by firm for using this principle.
 Supplier consolidation is also acting as an issue in front of this principle when it is
used in supply chain network process in Tesco.
Recommendations
It is recommended that firm have to use polices which can help in deconsolidation of
supplier where it can essay impellent this plan. This will help firm in increasing the number of
supplier where firm can get power of bargain to supplier which will act in increasing profits and
also leads in better competitive advantage to firm for long run. This can be done by firm by the use
of promotion of different suppliers by purchasing items from number of buyers not from a
particular market. Manufacturing flexibility must be developed by firm for utilizing this function
in there development of functions in organization. This will help firm in meeting excess demands
of customer and getting advantage for long run. This can be developed in firm with the help of
increasing capacity of manufacturing department which can help in strengthening the supply chain
process and develop management in firm.
Operations Strategy Matrix
Operation statistical matrix is Framework or a tool which is used to buy strategic professional for
assessing the major factor which can impact on company operations this concept will help the firm
in making good strategic operations decisions and decreasing the IT mainly focus on the success
factor and implementation of its steps. It is a tool which helps organisation in making strategic
operational decisions about its capacity supply network process technology development and
organisation.
Matrix divided in a scale which help organisation in formation of operational strategy the left side
of matrix performance objective which support the right side market competitiveness. The bottom
axis of this matrix is related to decision area with support the resources used which are mentioned
in top side of the matrix. This matrix is propounded by Martin and Vishnu using a case study of a
bank where they use value proposition instead of performance objective the Matrix would have
some focus on operating model Canvas they also focus on capacity supply network process

technological and development in organisation where the use process organisation look location
information supply and management system. This metrics can be utilised by Tesco for bringing
effectiveness in operation can deliver a value product to its customer (Gibson and Parkman,
2018).
In the first company have to identify the risk factor which are associated in business
operation the aim of operation of static matrix is axis and actual period pure risk are related to our
current that can result in only loss of company to company have to identify the spectre like
technological disasters and many more. Tesco use this Matrix to evaluate these operations and
manage their potential consequent to its functioning.
Then company have to review the four elements of the operation strategic matrix. Limit of
operations traffic metal Matrix recharge performance objectives decision areas resources uses and
market competitiveness. The operations strategy Matrix can be viewed as a checklist of issue that
company should evaluate when developing comprehensive operation strategy. This will help
Tesco in managing resources as well as getting their maximum advantage.
Now it is the step of accessing the performance of Tesco where performance objective and
decision area will work. Five core performance objectives which Tesco follow and intersect with
four major decision areas which are capacity supply network process technology and development
of organisation. There are some industries area and it resources that affect its ability to perform
each of the main performance objectives (Bromiley and Rau, 2016).
Marketing competitiveness and resources usage are also the area that can impact the
operational decision of Tesco and operation manager in the organisation might access issues
related to firm’s use of these resources, swatches the Nexus between quality control and
temperature control of certain type of inventory which can be harmful because of temperature and
lack of good quality. Market competitiveness will identify different issues like operation change
can direct effect on sale of product offered by Tesco. For example a review of scale reporting data
might indicate that a reduction in certain waste results after sales manager are given monthly sale
data which will helpful in identification of competitiveness and effective use of resources.
CONCLUSION
It can be concluded from above mentioned report that Operational management play
an important role in organisation development and achievement of goals it can be seen that

and supply chain management in an organisation is important for its survival and transfer of
goods and services. Number of principles of management informs which has permanent
getting advantage in long run. Three principles of total quality management supply chain
configuration and capacity planning and control help organisation in developing its objective
but there are some issues which it have to solve according to it. Operational strategy matrix
can be used for development of operational management in organisation where is strategic
and the formulated according to this matrix.

REFERENCES
Books and journals
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view:
Another view. Journal of Operations Management, 41, pp.95-106.
Gibson, P. and Parkman, R., 2018. Cruise operations management: hospitality perspectives.
Routledge.
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational
implications of the digital transformation in industrial practice. Production Planning
& Control, 28(16), pp.1332-1343.
Heizer, J., 2016. Operations management, 11/e. Pearson Education India.
Hitt, M.A., Carnes, C.M. and Xu, K., 2016. A current view of resource based theory in
operations management: A response to Bromiley and Rau. Journal of Operations
Management, 41(10), pp.107-109.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management, 41, pp.77-94.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A Decision-Oriented Introduction to the Creation of Value.
Lee, C.K.H., 2018. A review of applications of genetic algorithms in operations
management. Engineering Applications of Artificial Intelligence, 76, pp.1-12.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.