Tesco Operational Management

CONSULTANCY

INTRODUCTION
Operational management is an administration of business practices which are used in
order to create optimal level of efficiency at workplace. In multinational business associations,
teams which are involved in operation's management process put efforts to balance costs with
revenue thus to pitching highest net operating profit. Its prime motive is to improve quality of
products and services offered by a firm for obtaining interest of large group of customers (Agus,
2011). There are various approaches of operational management in which TQM is more effective
approach that is tend towards long term success of the company. The present assignment is based
upon TESCO; it is one of the largest retail market in UK which provides grocery, home and
luxurious products to customers. The firm is very renowned for quality of its products and
services. Furthermore, the report is going to be define extent of total quality management for a
corporate association.
MAIN BODY
Critically evaluate the extent to which total quality management (TQM) can be used to improve
the effectiveness of an organisation
Customers are the core of any business; a firm can only survive only when it will able to
fulfil needs and desires of its target audiences. In this modern era, multinational brands are tend
towards improving quality or efficiency of their products and services thus to capture high
market position and stay ahead in market competition. Therefore, quality is considered as crucial
aspect for business entities and it is linked with their growth and development. Due to rise in
market competition, firms start to focusing on enhancing their quality of products and services;
it results improvement of sales and profitability (Hung and et. al., 2011). Customers' expectations
are high when ever company ensure that quality of their products are up to mark. Along with
this, different tools are available which helps in improving quality of goods and services offered
by a firm. Total quality management is a tool that is acquired by most of the firms operate in any
sector; the prime motive behind this is to raise customer satisfaction level in a certain time
period.
Moreover, TQM assists in determining actual market requirement and on this ground
management take necessary actions thus quality level of goods can be raised for welfare of
companies. According to Kumar, Garg and Garg, (2011) TQM is considered as a process
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through which a product can be made fit for purpose as per requirement of customers. Through
this approach an organisation improves its production and operations. Although, it is not easier to
increase overall quality of products as it required higher costs which may affect annual revenues
of a company like TESCO. On the other side, providing qualitative products also extend brand
image of business and helps in obtaining high competitive edge. Therefore, total quality
management is one of the best approach of operational management which provides right
direction to business and in turn it will get large benefits at marketplace.
The chosen organisation is TESCO which is a British multinational grocery and general
merchandising retailing chain which headquarters is in UK. The overall revenue of the company
is £62.54b and there are over 5000000 employees currently working with it. The company Tesco
started with grocery retail in 1990s but diversified in areas of clothing, books, electronics,
software, furniture. Tesco has spread its business globally and has stores over 12 countries. It has
been successful over the years due to low cost pricing strategy. As it a well known brand world
wide thus to firm emphasised on providing qualitative and value added products for its
customers.
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Source: Total Quality Management Theory (TQM in Systems Analyst), 2017.
The firm follows a TQM model which defines there must be required to recognise
customers' needs. Acquisition of total quality management primarily refers with set of processes
that is focusing on data collection, interpretation and act on customer information. Activities
relates with this concept are extended to recognise of nature or behaviour of external rivals, then
formulating a systematic understanding of customers desires which will support management to
predict future buyer behaviour. Along with this, major focus of TQM is to integrate customer
knowledge with further information and effective utilisation of planning processes. With this
assistance, TESCO can easily develop an action plan to manage daily operations and make
attempts to achieve future goals. Business organizations are using techniques of process
management to make improvements, monitoring or evaluating the improved processes and
continually optimise it (Das, Kumar and Kumar, 2011). To meet pre-determined performance
targets, TQM also focuses on process improvements which ensure continuous achievements of a
firm. The final element of TQM approach is total participation; it implies to get involved all staff
members in production and decision making process of the company. All this is started with
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Illustration 1: Model of TQM

proper leadership and motivation within organisation's environment. In multinational
associations. i.e. TESCO it is the responsibility of top management to implementing, nurturing
and refining all activities related with TESCO. Administration must ensure that all employees
have enough skills, they are fully trained, capable and actively participate in obtaining firm's
goals and objectives. Employees and management have to come together thus to build an
empowered working atmosphere in which individuals are valued. Therefore, all those elements
of total quality management model works effectively for obtaining quality standards of the
company. Proper execution of TQM, there is required to follow six C's, such as -
Commitment – Entire organisation have quality improvement commitment because
without any commitment all other efforts of management will failed.
Cultural – Business organisations adhere a modern culture for improvements in quality
on regular basis. Training is essential to bring a change within organisational cultural.
Continuous improvement – There has to be required continuous improvements between
all policies, activities and procedures laid down by top management. It can be done through
conducting research and knowing current market trends.
Cooperation – Having proper cooperation between new and old employees helps in
applying best strategies which enhances performance level of company.
Customer – For getting long term survival at market place, organisations needs to focus
on understanding customer desires and gain higher satisfaction level. As if the quality of
products is effective, target audiences will easily attract towards the brand (Oakland, 2011).
Control – At last, there must be put effective control on evaluating actual performance of
business. It involves proper documentation, procedures and awareness of existing business
practices thus TQM can function effectively.
Following is given main principles of TQM, such are stated as under -
 Employee involvement- It is one of the most effectual principle of TQM in which all
employees get involved in obtaining overall aims and objectives of the company. This
will enhance active and effective participation of all workers and turn out raising
productivity of an organisation.
 Communication – While obtaining TQM, it is essential to make effective communication
with which employees can be easily motivated and necessary decisions can be easily
taken for growth and welfare of corporate association.
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 Customer centric approach – Customers has an important role in growth of a business;
they judge whether or not quality of offering goods is up to the mark. Having large
number of target audiences can be obtained if staff members know how to attain and
retain individuals interest. It entails superior quality of products should be delivered in
target market. Customer centric approach helps to draw up large wide range of customers
towards company; it turn into increasing sales and profit margins.
 Strategic approach to improvement – Strategic approach supports to acquire products and
services with increased quality and efficiency ; it can be possible as if firm is able to deal
with existing and upcoming issues in best possible manner.
From the overall discussion of Total quality management, it is recognised that it is a key
concept which is followed by TESCO. Although, the approach does not directly deals with
ensuring quality of goods but give suggestions regarding the way of doing business. Tesco
manages its total quality concept in following ways:-
 Prevention – Sometimes it is beneficial to obviate production of defected products instead
of finding defects among them.
 Zero defects – The prime motive of TESCO is to manufacture low defected products and
reduces the level of errors as if product is complicated.
 Getting things right at first – It is better not to produce products instead of producing
defective once. Beside this, the concept of TQM is not only applied in production and
operations but also applied in finance, HR and marketing (Konecny and Thun 2011).
 Continuous improvement - Always look upon making improvements in products and
them more innovative. For this, company can acquire employee involvement in operation
and production processes.
Importance of total quality management
Total quality management is refers to as a continuous efforts by workers and
management of an specific company to ensure long time loyalty of buyers and achieve
customers satisfaction (Delić and et. al., 2014). In this, satisfy and happy buyers brings new
buyers whereas on other hand bad words are spread within public of the company will spoil the
image of the organisation. TESCO maintain the total quality management within the company in
order to grab attention of large numbers of customers within the work place. Therefore, it help in
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giving various types of advantages in order to enhance efficiency of the organisation which are
as follows: It ensures superior goods & services: TESCO's products are measured in the context of
durability, performance and reliability. Quality management is a main parameters which
differentiates the company from their rivals. Tools of quality management ensures
modifications within the systems which eventually gave outcomes by providing best
quality of goods and services to their customers. Their are various methods of total
quality management are six sigma, lean manufacturing and many others which is having
a similar goals in order to provide higher quality of products. Along with this TESCO
also satisfy their customers with their products and services (Dora and et. al., 2013).
Enterprise marketers are successful when they emphasize on products quality not in
quantity. This help in surviving at the cut throat competition with a smile. Important for customers satisfaction which eventually leads to buyers loyalty: As it is
necessary for every organisation to have certain loyal customers . TESCO also require
loyal and trusted buyers towards the company. So, that it will help in sustaining
customers by providing them better quality of goods and services. Therefore, total quality
management help in maintaining loyal customers of the firm. This tool will aid company
to create as well as design a goods which the buyers actually desires and wants. It ensures higher productivity and increased revenue for the company: Company is
rising their efficiency which is influenced by efforts of workers in an organisation.
Workers get frustrated when they didn't receive salary on proper time. As finance is a
main factor which stimulate and motivate employees to give their best to organisation. By
applying this tool of total quality management ensures better enterprise, higher buyers
loyalty, satisfy workers, raised cash flow, healthy working environment and many more
(Hazen, Boone, Ezell and Jones-Farmer, 2014). This will help TESCO to give better
working environment to their workers. It helps firms to reduce inventory and waste: It enables workers to work closely with
their incorporate as well as suppliers “Just In Time” approach. It help in close
coordination within workers of the TESCO. It inculcates a better feeling of group
working among the workers. It will help the organisation to reduce the wastage within the
company and inventory as well.
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 Quality improvement culture: TESCO culture require to be modernized on continuous
basis in order to motivate workers within the company. Company workers are having
knowledge which they have to use within the workplace. If workers are having ideas in
order to enhance operations, than management should consider them and respect their
ideas. Effective control: It is important to measure as well as monitor the performance of
TESCO. In the company if strict maintenance of documentation which help in enhancing
objective quantify areas along with this concentrate their efforts where they will give
higher return of both financial as well as time resources.
 Concentrate on buyers needs: In current market, buyers expect as well as need perfect
products and services with zero advantages. Concentrating on buyers needs is important
to survive for a long time and importance to make relations with their buyers. TESCO
have to keep their customers happy as well as close. Their should be ensure that precise
needs of all buyers are understood and documented everyone.
TESCO is using this tools of total quality management which help them in increasing
their buyers towards their organisation. Along with this, it will also saves the time and eliminate
the wastage of goods and services within the workplace.
Relationship between TQM and organisational efficiency
In this, total quality management will describes the approach of management for the
success of the firm for a long time in order to satisfy customers which will help in increasing
efficiency of the TESCO. In this, all the employees of the company participate in enhancing
culture, goods, processes and services on which they are working in which efforts are given by
total quantity management.
TQM will also aid in developing companies efficiency in order to enhance its
productivity. It show a modification within work culture by educating employees on quality of
products and services offered to employees According to Herzallah, Gutiérrez-Gutiérrez and
Munoz Rosas (2014), emphasis on products quality help in promoting a proactive working
culture which is aimed at evaluating a mistakes rather than correcting it. TQM emphasizes on
group work which leads cross functional of knowledge sharing and cross departmental teams it
will help in imp[roving communication skills of employees, flexibility of company and many
more help in increasing efficiency of the TESCO.
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According to the Kim, Kumar and Kumar (2012), major long term benefits of total
quantity management is linked with buyers satisfaction which aid in increasing efficiency of the
company. Its purpose is to improve quality as well as determining the better control of it for
achieving customers expectations regarding its experience, products and services. TQM will aid
in satisfying customers which automatically assist in increasing organisational efficiency. TQM
tool will help in raising efficiency by eliminating wastage, making modifications in order to
provide products to their customers quickly, by customers loyalty and needs no repairs.
Total quantity management is linked with the human resource which also help in
increasing efficiency and productivity of the company. TQM thrust on removing mistakes or
errors and also enhancing productivity that contributes in achieving objectives as well as targets
of the organisation within the given period of time. TESCO allows employees to enhance their
knowledge as well as execute its innovation practices so that products created are resource as
well as cost friendly for business and assists in attaining competitive advantage for the business.
Total Quality Management helps in bringing the efficiency within the process of manufacturing
as well as remove errors by using direct approaches like as remedial actions and counselling for
solving problems. For reducing absenteeism within the company due to this higher level of
productivity will produce with better quality which will improve the efficiency of the company.
According to this Kuei and Lu (2013), method of Total Quality Management provides
all-round benefits as well as makes the organization much competitive within the marketplace. In
new enterprises environment marked by free flow of goods, information and many others.
TESCO hold its competitive benefits by decreasing costs, improving existing products and
innovating new goods which will automatically increase the efficiency of the company. TQM
refers as an enterprise strategy that enables companies to complete these operations effectively in
order to enhance the efficiency of the organisation. Total quantity management has its potential
to improve its working environment efficiency of the company and its margin of profit.
Enhancing in productivity will decline the wastage as well as saves time which will help in
increasing organisational efficiency.
Total Quality Management helps in maximising all over efficiency within the working
environment and its margin of profits as well. By declining of lead time will help in providing
outcomes in meeting higher level of buyers satisfaction as well as ratio of profitability. Applying
of the methods of total quantity management will result in improving its efficiency as well as
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decline the total cost of production. It is determines that change within the company mainly
cause hindrance within overall activities. As a outcomes, it will cause a negative influence on
organisation profitability as well as productivity. Therefore, for ignoring such types of conditions
it is essential to have detail information linked with desired objectives as well as goals before
applying final modification it will help in increasing efficiency within the working environment.
Providing higher level of quality will help in gaining higher level of trust as well as customer
loyalty which aid in raising reputation and efficiency of the TESCO. Resistance to change will
gave outcomes in declining workers morale within the working environment which will gave
impact on companies efficiency (Das, Kumar and Kumar, 2011).
Total quantity management help in providing effective products and services to their
customers which automatically as it will assist in sustaining its buyers for a long time. This will
results in providing better efficiency as well as effectiveness within the organisation. Hence, it is
necessary to maintain quality of their products as well as services effectively.
CONCLUSION
From the above mentioned report, it get concluded that the prime focus of companies is
to study and determine quality of their products and services. It is overviewed that effective
quality also create innovation which act as driving force towards market changes. The present
report has involved role of total quality management on improving effectiveness and efficiency
of an organisation. The entire concept of TQM relies upon certain principles, such as –
communication, employee involvement, customer centric approach and strategic approach to
improvement; if all these aspects can be applied in production then any firm will obtain its
quality goals and objectives. Furthermore, the main benefit of this approach is to get customer
satisfaction level and improve brand image of the company; it turn out to grab high competitive
edge.
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REFERENCES
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Online
Total Quality Management Theory (TQM in Systems Analyst), 2017. [Online]. Available through:
<http://skholder.com/total-quality-management-theory-tqm/>.
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