Analyzing Aldi's Operations Management: Lean Production with JIT & TQM

This report examines Aldi's operations management strategies, focusing on the implementation of lean production principles, including Just-in-Time (JIT) inventory management and Total Quality Management (TQM). Aldi's competitive pricing strategy, achieved without compromising product quality, is attributed to its effective use of lean production to minimize costs and maximize productivity. The company's commitment to continuous quality improvement, employee training, and strong supplier relationships ensures customer satisfaction and long-term sustainability in both domestic and international markets. By eliminating waste, optimizing resource utilization, and prioritizing customer needs, Aldi has established a robust operational framework that drives its success and brand loyalty. This analysis highlights the importance of these strategies in achieving operational efficiency and competitive advantage within the retail sector. Desklib provides a platform to access similar solved assignments.

OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Just in time ..................................................................................................................................3
Total Quality management...........................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Operations management is the administration of business practises in order to create the
highest level of efficiency in the company. It is related to the conversion of the raw materials and
labour into finished goods and services. The operations managers acquires and deliver the goods
to the clients according to the needs and requirements of the respective clients (Kandampully,
et.al, 2018). The report is based on the case study of how the Aldi company applied the lean
production approach to cut cost including the use of Just in time and Total quality management.
MAIN BODY
Aldi is a well-established retailer that is operating and having stores in various
international market including Germany , U.S. etc. The company has unique competitive pricing
strategy without affecting the quality of the products which makes it different from other
competitors in the market. Lean production is the one of the manufacturing strategy that
company execute in its business in order to reduce the cost and to enhance the productivity of the
company (Caffrey, et.al, 2020). The lean production approach is the management approach
which mainly focuses on cutting out the extra costs and ensure quality products in the market
and also to gain competitive advantage over other companies. Its main objective is to maximize
the profits with minimum use of the resources. The continuous efforts of quality improvement
will also result in customer satisfaction as company is evaluating the needs and requirements of
the customers and making improvements for the long term sustainability in the market and also
to build the brand image of the company.
Just in time
Lean production involves the eliminating the extra costs , use of less labour , raw
materials and saves a lot of time. The company can use this extra costs in the research and
development which will help the company to focus on innovating and presenting new products in
the market. The company uses the Just in time approach in order to hold the stock which is need
and demand (Ouassini, 2018). Just in time management method in which the goods are received
from the suppliers only when they are in demand. This method is the basics of the lean
production approach. The lean production has enabled the Aldi company to maintain its stock
and eliminate the extra cost of maintaining the additional inventory (Shibanov, 2018). The
company has used this approach as this helped in eliminating the maintenance of the extra

stock and is bought when needed and also reduce the wastage of the resources. This has affected
the customers as they received the products at low prices but of the same quality as per the
demand of the customer.
Total Quality management
Total quality management is a management method that basically fulfils the needs and
requirements of the customers. It includes the strategies and plans which focuses on the quality
improvement. The company uses the lean production and total quality management in order to
reduce the extra costs, eliminate the waste without affecting the quality of the product this will
help the company to save its costs and can invest the cost in research and development in order
to produce the new products in the market and gain competitive advantage over other companies
in the market. The company focuses on the preference and needs of the customers and ensure
that quality products are delivered to the customers at low prices and existing quality which will
make the company different form their competitors. Aldi ensures that the employees should
understand the objectives of the company and work towards achieving the goal which will
benefit the company (Xu, and Chen, 2018). In order to fulfil this focus should be made on
providing necessary training. The main purpose of the company is to use the required resources
and provide quality products and deliver to the customer which will result in long term success
of the company as company is making continuous improvement in fulfilling the requirements of
the customers. The management of the company and also the employees participate in making
the improvements in the products and services of the company for the long term sustainability in
the domestic as well as international market.
The main purpose of the company adopting the total quality management method is to
create a strong base in the market and also to build healthy relationship with the suppliers as it
helps the company to deliver the quality products in the market and also fulfil the demand of the
products in the international market. Aldi focuses on controlling their product's cost than the
competitors without affecting the quality of the products as customers rely on the quality of the
products of the company (Yu, et.al, 2020). If the customer is getting products with same quality
but at lower prices than the other companies, results in increase in the brand loyalty. The
company focusses on training the employees and staff members in order to ensure that the
quality products are delivered in the hands of the customers. In order to fulfil the objectives of
the company, the management should ensure that the operations of the company are working

efficiently and the objectives of the company is communicated to all the members working in
the organization. This continuous improvement will help the company to deliver the products
without wasting the resources and also eliminating the extra cost which is incurred during the
production process. It also ensures that quality goods are delivered as per the taste and
preferences of the customer and also for the long term sustainability in the domestic and
international market.

CONCLUSION
From the above report it can be concluded that the company should use the respective
management approaches in order to reduce and eliminate the extra cost without effecting the
quality of the products. The company has focused on the needs and satisfaction of the customers
and make respective improvements in order to deliver quality products in the market. The
company achieve its objectives by ensuring that the operations of the business are working
efficiently so that the company can gain success over other competitors in the market.

REFERENCES
Books and journals
Caffrey, et.al, 2020. FoodCloud: Stimulating Kindness Towards Making the World a Fairer
Place-One Step at a Time. International Review of Entrepreneurship.18(2).
Kandampully, et.al, 2018. Customer experience management in hospitality: A literature
synthesis, new understanding and research agenda. International Journal of
Contemporary Hospitality Management.
Ouassini, I., 2018. An introduction to the concept of incremental budgeting and beyond
budgeting. Available at SSRN 3140059.
Shibanov, K.S., 2018. Problems of introduction lean production at the domestic enterprises.
Russian Journal of Industrial Economics.
Xu, Y. and Chen, M., 2018. An Internet of Things based framework to enhance just-in-time
manufacturing. Proceedings of the Institution of Mechanical Engineers, Part B: Journal
of Engineering Manufacture.232(13). pp.2353-2363.
Yu, et.al, 2020. A strategy perspective on total quality management. Total Quality Management
& Business Excellence.31(1-2). pp.68-81.
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