H&M Operations and Service Management: TQM and Efficiency Analysis

This report provides an analysis of operations and service management practices at H&M, focusing on the impact of Total Quality Management (TQM) on the organization's efficiency. It discusses how H&M implements TQM to improve product and service quality, reduce costs, and enhance customer satisfaction. The report also evaluates the role of technology in supporting TQM processes, drawing parallels with Marks and Spencer's use of IT for data management and performance review. Furthermore, it identifies the supporting functions linked to operation management practices, emphasizing employee commitment and understanding. The report concludes by highlighting both the advantages and disadvantages of TQM implementation within a retail context, providing a comprehensive overview of H&M's operational strategies.

Operations and Service
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Operation management practice.............................................................................................3
Operation management practice influence the organisation in regards to efficiency............4
How technology could be embedded in this process or evaluate how this has already been
achieved..................................................................................................................................6
Supporting functions are linked to this operation management practice...............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is one of the business practices that help in creating highest level of
efficiency within company. The main role of operation manager is to manage the activities
related to the production of goods and services. They mainly focus on managing the operational
process, planning, performance improvement, embracing design, controlling and framing
operational strategy (van Kemenade and Hardjono, 2019). The purpose of operation management
is to control the production process and business operations in effective and efficient manner. It
is important for organisation as it plans, supervise and control the production and manufacturing
process and service delivery. It mainly utilizes the resources of company and develops products
and services that satisfy the needs and demand of customers. The project is based on operations
and service management in which operation management practices, its influence on the
organisation in regards to efficiency. It also covers the evaluation of how technology could be
embedded in this process and the supporting functions which are linked with operation
management practices are determined. The chosen organisation for accomplishing this report is
H&M, it is a retail company which deals in clothing and accessories. Company was founded in
1947 by Erling Persson and also it makes online shopping available at several countries.
Operation management practice
H&M implements total quality management within their organisation in order to attract
and retain maximum number of people towards the brand. Total quality management is a
continous process which mainly focuses on detecting and reducing the errors in supply chain
management, manufacturing, and improving the customer service. There are various total quality
management components such as customer based approach, management based on facts, quality
planning, management commitment or leadership and continuous improvement (Bouranta and et.
al., 2019). Through implementing Total Quality management, H&M improves the quality of
company’s output including products and services by focusing on continual improvement of
internal practices. It is a customer focused process which mainly aims to improve the business
operations. H&M generally focus on improving the quality of its product and services in order to
create strong customer base. They consistently develop and improve the goods and services so
that they can improve the quality of its product. H&M is a fast fashion growing company which
has created a reputation in market. They have also created its operating model which helps to be

flexible and respond to market trends (Psomas and et. al., 2017). It is a low cost provider which
attracts market with low prices and offer high quality products. H&M is flexible as it helps in
tracking customer trends with its IT system and also it has an ability to restock the products
easily from its replenishment centers that focus on monitoring the products in each store and
replace it accordingly. They manage to control the cost due to its close relationship with
suppliers and also provide high quality products at low cost to its consumers.
By using Total Quality management, company offer safe and use friendly products to its
customers by ensuring that the products must be free from dangerous chemicals, sturdy,
environmental friendly, excellent fit, well made and stand the test of time. H&M have its own
quality management system that mainly focus on carrying out the inspection and perform test in
laboratories. They also visit supplier premises and check that how they work and suggest them to
improve their production and quality process (Psomas and Antony, 2017). The main goal of
H&M is to improve the traceability of its products and ensure that they meet their own quality
standards. There are few quality facts of H&M such as they carried out various chemical test and
physical test on their products in order to provide better products to its customers. In a single
year, they conduct various test and even their suppliers also ensures that the test give productive
outcomes. The quality tests are performed on all the orders of H&M and also the zipper in
garment is tested mechanically before being approved. Total quality management helps in
increasing the awareness of quality culture within company and also put special emphasis on
teamwork so that they can achieve the goals and objectives of business (Petrick and Furr, 2017).
It requires collection and analyzing the data on continue basis in order to achieve consensus,
allow prediction based on past history and improve decision making accuracy.
Operation management practice influence the organisation in regards to efficiency
Total quality management influence H&M in regards of efficiency by offering highly
qualitative products and attracting maximum number of people towards the company. It helps
organization to cut the cost of operations and reduce the waste. Through total quality
management, the profitability and growth of H&M increases. It helps in generating improves
products and services, satisfy the customers by reducing cost and improve the bottom line
financial performance of organisation. Total quality management focus on achieving competitive
advantage by differentiating itself with in terms of quality and cost of goods and services (Saleh,
Sweis and Saleh, 2018). The products of H&M are of high quality which attracts large number of

customers towards the outlet and also the company ensures that they deliver the goods at low
cost as compare to their competitors. It is a management strategy that helps in maintaining
quality customer service and satisfies customers by fulfilling their need and demand. The main
goals of Total quality management are to foster customer loyalty by offering high level of
service that helps in retaining customers. Total quality management generally focuses on
eliminating the mistakes and solves the problems such as absenteeism due to which it enhances
the productivity and provides better profits. The high-quality products generally meet the needs
and requirement of customers which results in higher customer satisfaction. If consumers are
highly satisfied, they helps in increasing market share and enhance the revenue of company.
Total quality management mainly focus on providing less product defects due to which they save
cost in customer support, field service, creation of product fixes and product replacements.
H&M uses Total quality management practices that help in developing and nurturing the
core values around the quality management and continuous improvement. Total quality
management highlights the need of market and assures better quality performance that helps in
bringing changes and improvements in its products and services that satisfies the demand and
requirement of customers. Through implementing total quality management practices, H&M
improves its productivity and efficiency by keep checking on non-productive activities and
waste. The quality improvement team of organisation ensures that they must reduce waste
inefficiency by developing systematic approach. Through this approach, company can achieve
cost effectiveness and build safety within workplace (Chen, Lee and Wang, 2020). Total quality
management techniques helps in understanding the competition and also develop effective
competitive strategy in order to gain competitive edge over its competitors. It helps in
understanding the market as well as customers due to which the brand image and reputation of
company increases. It is important for organisation to understand the needs and demand of
customers in order to attract more and more people towards the brand. If consumers are highly
satisfied with the products and services of H&M they help in increasing the growth and
profitability of business. Thus, TQM provides opportunity to company to meet the competition
by using its techniques. Total quality management also focus on developing an adequate system
of communication due to which each department and levels of management understand their
roles and responsibilities and work accordingly (Stamatis, 2018). Through TQM, company can
review the process and also develop the strategy for never ending improvement. But there are

various disadvantages which reduce the efficiency of company as Total quality management
demands the change in culture and also offering high quality products to its customers can be
expensive. Through implementing Total quality management, company takes years to show the
results and also it discourages creativity. It is also identified that total quality management don’t
provide any fix solution due to which the productivity and efficiency of H&M reduces.
How technology could be embedded in this process or evaluate how this has already been
achieved
Marks and Spencer uses the technology in the process of Total quality Management.
Computing systems are used by Marks and Spencer in the implementation of Total quality
Management and hence they create the relationship between information technology and total
quality management operations practice in the company. There is not such a specific relationship
between total quality management and information technology because they apply independently
in their own specific areas. But Marks and Spencer uses information technology in order to
manage its total quality management operation practice. Marks and Spencer uses in the regards
with data support which means the using of the applications of different dimensions of
information Technology when it is applied to the total quality management. Marks and Spencer
uses the information technologies on its total quality management functions by measuring on a 5
point scale. Therefore there is the relationship between the information technology
implementation and the level of Total quality Management dimensions is evaluated within
organization. Information technology is used effectively and efficiently in the total quality
management operation practice which helps in the data management in a significant manner
along with the performance review as well. Marks and Spencer apply the total quality
management as the operational practice which helps in the profitability and good sales turnover.
Information Technology helps in innovative and creative practice so that the implementation can
be quick and in an easy manner. It has found out in the organization that the results are positive
along with the good communication flow and decision making process. This is because
information technology is also used in the control of production systems and the measurement of
implementations and sales turnover. Total quality management is a major part of it. There are
seven quality tools which are used by the Marks and Spencer in total quality management with
the help of techniques of information Technology. Check sheet is one of the tools with the help
of which Marks and Spencer record their big data in the company in a systematic manner.

histogram is another tool with the help of which the Marks and Spencer census its frequency
distribution in order to observe their values of a variable. Pareto analysis is the tool which is used
by Marks and Spencer in order to work with the income and other unequal distributions within
the organization. The fishbone diagram is also used by Marks and Spencer which is also related
to the cause and effect diagram which includes the concept of quality control circles. Scatter
diagram is also used by Marks and Spencer which is a powerful tool used to distribute the
information into different dimensions that helps in the detection and analyzing the pattern
relationships between the quality and the compliance variable. Flowchart is also one of the tools
which represent the diagrammatic picture that demonstrates the series of all symbols in the
sequence for any operation of process in the operation practice. Control chart is also used by the
organization which is technically sophisticated for quality Management. All these are the
techniques which are used by the Marks and Spencer in order to improve its total quality
management for better data analysis and decision making process.
Supporting functions are linked to this operation management practice
There are different supporting functions which are linked to the total quality management
operations practice in Marks and Spencer. Commitment and understanding from employees is
one of the important functions of Total quality Management. It is important to ensure that all the
staff members in the company must be aware about the functions of Total quality Management
and its policies at work. Employees must participate in the corporate goals and recognize the
significance of the overall success of the company. Commitment in the employees must be
effective and they must know the efficient policies of a total quality management and its
Technology used in Marks and Spencer. Quality improvement culture is another important
function of Total quality Management. The culture of the organization must be modernized and
updated as per the employee feedback. It is important for the organization that their staff
members must be knowledgeable in execution in the process of information technology which
includes total quality management because it highly supports the functions of operational
practice and also respects the innovative ideas. Continuous improvement and process is also one
of the supporting functions of Total quality Management. Total quality management is
considered as a continuous process but not any program which is adopted by Marks and Spencer.
This is because of the operational practices related with the policies and procedures which are
controlled by the management. It is all about the future investigation that must be implemented

in the company which ultimately improves the proficiency of the working of the company.
Focusing on the customer requirements is another supporting function of Total quality
Management because it is related with the zero defects in the organization product and services
offered to the customers. It also includes the specific customer policy which is associated with
the total quality management and hence this function is highly relevant for better customer
experience and loyalty towards the brand. Effective control is also the supporting function of
Total quality Management which monitors and measures the performance of the business. After
performing the activities of Total quality Management in Marks and Spencer, controlling
function is performed so that the results can be measured and improvement considerations can be
made in the future along with the decision making in a strategic management.
CONCLUSION
It is being concluded from the above information that operation management plays a
significant role in improving the performance and productivity of business. The main motive is
to manage and control the overall activities related to production process so that they can offer
high quality products to its customers. In order to attract and retain maximum consumers, it is
essential to provide better quality of products and services that helps in building strong customer
base and also the profitability of company increases. Customers generally get attracted with the
product that are of high quality at low price. There are various operational management practices
which help in improving the quality and productivity of goods and services. One of the effective
operation management practices is total quality management which mainly focus on delivering
high quality products by minimizing the wastage and reducing the damages. By implementing
total quality management practices, company can strengthen its competitive position and also
make changes according to the market trends, conditions and other governmental regulations. It
also helps in enhancing market image and reduces the cost of products due to which organisation
can attract maximum number of people towards the brand.

REFERENCES
Books and Journals
van Kemenade, E. and Hardjono, T. W., 2019. Twenty-first century total quality management:
the emergence paradigm. The TQM Journal.
Bouranta, N and et. al., 2019. The key factors of total quality management in the service sector: a
cross-cultural study. Benchmarking: An International Journal.
Psomas, E and et. al., 2017. Effects of total quality management in local
authorities. International journal of quality and service sciences.
Psomas, E. and Antony, J., 2017. Total quality management elements and results in higher
education institutions: The Greek case. Quality Assurance in Education.
Saleh, R. A., Sweis, R. J. and Saleh, F. I. M., 2018. Investigating the impact of hard total quality
management practices on operational performance in manufacturing organizations:
Evidence from Jordan. Benchmarking: An International Journal.
Chen, R., Lee, Y. D. and Wang, C. H., 2020. Total quality management and sustainable
competitive advantage: serial mediation of transformational leadership and executive
ability. Total Quality Management & Business Excellence. 31(5-6). pp.451-468.
Stamatis, D .H., 2018. Total quality service: principles, practices, and implementation.
Routledge.
Petrick, J. A. and Furr, D. S., 2017. Total quality in managing human resources. Routledge.