Aldi Case Study: Examining Lean Production, Just in Time & TQM

This case study examines Aldi's application of lean production principles to achieve a competitive advantage. It discusses the importance of lean manufacturing in reducing costs and improving profit margins in a competitive market. The analysis covers key elements such as Total Quality Management (TQM) and Just-in-Time (JIT) inventory management, highlighting how Aldi minimizes waste, optimizes resource utilization, and ensures quality production. The study also emphasizes the role of human capital and strategic management in Aldi's success, concluding that effective management practices are crucial for organizational growth and development. Desklib provides similar case studies and resources for students.

Sample

INTRODUCTION
Managing inventory has helped in making the organization learn about various perspectives
which has been used in order to make development done over research and its various aspects. In
this research various aspects in relation various kinds of management approaches (Adamik and
Nowicki, 2020). Then in this aspects dealing over the management has been covered through
identifying its various elements used within management. Also certain important part of
management approach has been explained more effectively.
Main body
Lean approach - It is one of the most important and useful process of the manufacturing goods
and services under which all the all the production activity is done by the management of the
organisation under with an aim to reduce the cost. The lean manufacturing approach refers to
those approach of management under which management try to minimise the waste from the
business which helps to reduce the cost of the production. The main reason for the use of this
techniques is the increasing competition in the market. There is a cut throat competition in the
market and many organisations are working in the same industry which creates price war in the
organisation. The price war in the market has very negative impact on the profit margins of the
organisation. It is required for the management of organisation that they try to reduce the cost of
production so that their profit margins can be increased (Davis, 2019).
Total quality management is the key function of an organisation which is helpful in development
of operations and productions management. In the recent times importance of total quality
management is increasing day by day in the corporate world. It is the ethical duty of top level
management of a business to ensure quality production for increasing the satisfaction of
customers. The strategic management of a company like Aldi should use different theories and
models in order to ensure optimum utilisation of resources. Different companies in the
marketplace also focus on controlling and supervision on production management to ensure best
quality management based practices. In order to increase the effectiveness and efficiency of a
company it is important to develop total quality management. There are various companies
present in the corporate world which also brings a major planning framework for long term
growth of company. The concept of total quality management includes application of different
parameters which are effective in continuous growth of the company. The company must also

analyse external and internal factors associated with the business to ensure optimum quality
production. The corporate world is demanding changes in quality management with the
development of key approaches for organisational development. All the major companies in the
international and national marketplace focus on analysing key concepts and areas of developing
the quality parameters for business growth. The recent trends in company development are also
focusing on making the company more competitive in terms of quality. In order to ensure quality
management a company should also focus on human capital (Desfitrina, Zulfadhli and Widarti,
2019).
Aldi is a supermarket brand of the United Kingdom under which many big players are present in
the market which has huge market share and also creates stiff competition in the market. It is
very dangerous for the management of company because it reduces their profit margins. There is
a effective approach which helps the organisation to achieve competitive advantage from the
industry and the name of approach is lean production approach. There are many production
techniques came under this approach such as total quality management and many more. Just in
time approach is known as inventory system approach which is involved in aligning raw material
orders from supplier in direct connection with production schedule. Organisations have to
employ the inventory strategy for increasing efficiency as well as declining waste. This is a
method which helps to forecast demand in accurate manner. Aldi is a supermarket company that
is not investing too much but generating good income over years. This is an organisation which
is not paying for large warehouses for storing stocks and paying the additional labour or staff for
monitoring warehouse stock. The day when stock approaches at Aldi store or payment is done
for additional stock, the main focus is upon minimising cost of holding and managing the stock
(Périllon and Hilt, 2019). The just in time approach in a supermarket organisation helps to
minimise the costing and manage the operations. In a supermarket, there are customers who can
get what they need and when they need it. JIT plays an essential role in the management of
inventory. When inventory is applied within operation then JIT helps to minimise the number of
component of finished goods by sitting in warehouse (Leavy, 2020). JIT inventory management
system helps to meet the immediate needs and demands of supplier as well as customers.
CONCLUSION
From the above discussion it can be concluded that management is one of the most
important aspects which has been used in order to develop various process and elements within

an organization. It has helped in making research skills developed through using management
theories related to various aspects used within an organization. Under the research various types
of theories which holds importance in relation engagement has explained which helps in
improving management in more effective manner. These theories help in developing proper
structure which is used by an organization in improving its perspectives making over all growth
possible within an organization.

REFERENCES
Books and Journals
Adamik, A. and Nowicki, M., 2020. Barriers of Creating Competitive Advantage in the Age of
Industry 4.0: Conclusions from International Experience. In Contemporary Challenges
in Cooperation and Coopetition in the Age of Industry 4.0 (pp. 3-42). Springer, Cham.
Davis, P.J., 2019. Training Employees to Be a Source of Sustained Competitive
Advantage. Journal of Applied Business & Economics, 21(5).
Desfitrina, D., Zulfadhli, Z. and Widarti, W., 2019. Good Service Strategies Affect Competitive
Advantage. International Review of Management and Marketing, 9(6), p.135.
Leavy, B., 2020. Decoupling: customer-centric perspectives on disruption and competitive
advantage. Strategy & Leadership.
Périllon, C. and Hilt, S., 2019. Groundwater discharge gives periphyton a competitive advantage
over macrophytes. Aquatic Botany, 154, pp.72-80.