BM563: Evaluating Operation & Service Management at Morrisons, UK

This report provides an overview of Morrisons' operation and service management practices, with a primary focus on quality management standards and systems. It begins by introducing the concept of operations management and its importance in achieving maximum efficiency and profitability. The report then delves into Morrisons' quality management standards, highlighting their ISO certifications and the four essential components of quality management: planning, improvement, control, and assurance. It further evaluates how these standards impact Morrisons' efficiency, emphasizing customer focus, continuous improvement, employee empowerment, and cost-effectiveness. The role of technology in supporting Morrisons' operation management is also explored, with examples of AI and software solutions that have improved warehouse efficiency and reduced product waste. Finally, the report discusses the various support functions, such as quality management software, that aid Morrisons in maintaining high standards and meeting customer requirements. Desklib offers additional solved assignments and study tools for students.

BM563 OPERATIONS AND
SERVICE MANAGEMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
Operation management practice of Morrisons.............................................................................3
How quality management standards impact the Morrisons efficiency........................................5
Evaluate how technology support Morrison's operation management........................................7
Presenting how support function help quoted firm’s operation management system.................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations management is the administration of business practice of an organisation
responsible for producing goods and services with a maximum efficiency which improves the
profitability. In other words, converting inputs into outputs i.e. labour, capital and information
with the help of transporting, storing and cutting to originate goods or services. The report will
describe one of the operation management practice i.e. quality management standards and
systems of Morrisons Company, founded in 1899 and started as Bradford market to one of the
UK's largest chain of supermarket. Further, the report will critically analyse the operation
management practice which impact the efficiency of Morrisons. The report will evaluate how
technology helped the firm's operation management. In the end, the report will elaborate the
supporting functions linked with the management practice which assist them to succeed.
Operation management practice of Morrisons
There are four practices in operations management namely quality management
standards, supply chain, purchasing & ordering policies and information management. In this
report, Morrisons quality management standards and systems would be discussed. In the modern
era, quality certification plays an important role for many international businesses. EU had
established ISO [International Organization for Standardization] certification in 1987. There are
two ISO certification: ISO 9000 and ISO 14000. While the first one is concerned with quality
management which suits to customer's expectation ensuring the products or services quality and
later one is related to reducing the catastrophic environmental effects by its operation. This
certification process is expensive and lengthy one (Audretsch and Belitski, 2020). Instead of
quality check of a product, it assesses the process from purchasing to training in the
management. ISO 9000 has five standards associated with this series.
In order to meet the better experience to the customer's of the quoted firm, quality can't
wait. Morrisons fulfil the required regulations for the safety and quality standards. In 2017, the
company completed the 9001:2015 certification which was strongly based on customer-oriented
approach, motivation & implication of top management and continuous improvement. It helped
the firm to put greater stress to engage leader, address opportunities and risks in a better way,
simplified terms & structure helpful for health and safety, manage supply chain effectively and
user-friendly services. The quoted company was first amongst competitors for registration
process which resulted them best-in-class and first-in-class in the eyes of the customers (Clark,

Trimingham and Storer, 2019). ISO 22000, helped the quoted company to show their customers
that they had a food safety management system which aimed to ensure food safety throughout
the supply chain.
Quality management is based on four essential components, which are as follows:
 Quality planning: It is the beginning by identifying the standards or principles to the
product or services and methods to achieve them.
 Quality improvement: It is process through which the reliability or confidence of the
outcome can be obtained.
 Quality control: It is the process to regulate the planned process or method used to
achieve an outcome.
 Quality assurance: It is the systematic action which was planned for a particular product
or service to meet the required goals.
The aim is to guarantee that all the Morrison's workforce operate together to improve the
products, services, processes and culture to accomplish the long-running of the business with
satisfying the customer's need. The process used by the quoted company in reference to quality
management includes following the guidelines which is done by a team. It starts by setting high
quality standard while researching the customer's taste and behaviour. Then the firm would set
that how the targets are going to be measured. They further take actions to identify the issues and
then use improvement strategies. The final process is to report the achieved target or goal. This
would certify the products and services which would fulfilled the customer's satisfaction.
Morrisons operate as a manufacturing unit and follows high standards which are
important for deliver safe, quality food. The suppliers of the quoted firm would follow the Brand
Food Manufacturing Standard, Brand Reputation through Compliance Global Standard to
regularize the audits. Their agriculture products undergo quality check by following Global
Good Agricultural Practice Standards, Red Tractor Assurance or Organic certification to control
pest and disease products while promoting non-chemical farming (Fatorachian and Kazemi,
2021). Morrisons having unique product quality and safety for every single product brand should
meet the agreed specification. To regularize the quality, the said company monitors the feedback
of its customers and has robust complaint redressal system which continuously improves the
product by testing. The packaged products of the company complied with Natasha's Law
guidelines which provide allergy protection through full ingredients list. The quality of product is

directly proportional to the customer's satisfaction. Morrisons focus on displaying the fresh food
forward and to the cleanliness of the store.
How quality management standards impact the Morrisons efficiency.
The concept of quality is different for each and every individual (Han and Oh, 2020). The
quality standard are necessary for the growth of an organization. Quality management standard
has a great impact on the quoted company which are as follows:
 Customer focus: Morrisons being a customer-oriented organization
improve the satisfaction by meeting current and future requirements.
Customer retention improved the financial and sustainability of the
business. Nowadays, awareness among the customer's regarding the
knowledge of the market force the organization to be conscious regarding
the quality of the product or service.
 Improvement: The quality standard has impacted the quoted firm as they
consistently assess the adequacy, principles, procedures and implement
corrective measures where gap exists which is a continuous process. It
helps to be a step ahead of their competitors. With the quality tools being
used which leads to the managerial efficiency, improvement and effective
management with continuous productivity.
 Employee empowerment: The quality standard of the quoted company
provides employee being able to identify and effectively solved the
hurdles. Employees are the foundation of the quality management. Having
quality management authorize the employees with sufficient decision-
making power to act independently instead of further approval from the
senior authority.
 Use of quality tools: To maintain the quality management standards,
various quality tools for enhancing the employee's skills and knowledge
(Leiber, Stensaker and Harvey, 2018). Virtual training, online courses,
skill programmes are the methods used by the Morrisons for ensuring
better experience to the customer's. They should have sufficient skills,
abilities and knowledge to cop up with the qualitative standards.

 Product design: The standards set by the quoted company set a specific
guideline to be followed for a product design which is related to the
customer's need. Morrisons fulfils all the desired requirements before
launching a new product in the market. It is relatively same as customer
focus concept but deal with the product design.
 Process management: Maintaining quality of the product is a continuous
process and not a one-time process. Quality concept should be embedded
in the daily routine of the business. Due to this process, the quoted
company could identify and correct its quality standard by R&D of the
given circumstances.
 Quality suppliers: Due to quality management standard, Morrisons have
certain guidelines which the suppliers must be accompanied (McAdam,
Miller and McSorley, 2019). The quality of products or services are
directly depend on the suppliers which comply them with certain
responsibilities necessary to accomplish the customer-centric approach.
 Consistency: Quality management has a positive impact on the Morrisons
as they are more focused, consistent, compatible in achieving the tasks and
activities and also allow to continuously improve its mechanism.
 Cost effective: It reduces the cost throughout the quoted organization
because it enables different departments to cooperate with their problems,
desires, needs which lower or cut the cost within the manufacturing,
distribution chain, accounting and management department without
diminishing the efficiency or productivity.
 Low wastage of resources: Quality management helps the Morrison's to
reduce the wastage of the resources and helped them to use the resources
in sustainable manner.
Quality management mostly had a positive impact on the quoted company but there are
still some limitations such as time-consuming to adapt changes, inferior labour-management
relation, customer dissatisfaction which can be improved by applying numerous techniques of
quality management which includes six sigma, taguchi method, kaizen, Zero defects programs
etc.

Evaluate how technology support Morrison's operation management
Companies are using technology for the improvement of the operation like reducing the
cost for the organization. For example there are dozens of software programs that can automate
and streamline the day to day functions of the business. Morrison is using Retalix Software to
automate its back office cash management process. Quoted firm having AI artificial Intelligence
named as Blue Yonder which was launched in 2016 that focused on amending its ambient and
long life products around 26000 SKUs- with perishable food. This technology has reduced the
shelf gaps by 30% in its warehouse. The UK's 4th greatest supermarket has expanded annual
profits by 12% with 1.7% rise due to innovative technology.
Morrisons has launched a sales based ordering system across all 491 stores. Using
machine learning technology, the system can collect the vast data to make highly accurate
ordering decisions helps in reduction in the product waste (Li, and et.al., 2018). The UK based
supermarket added 750 additional products to its stores in 2017 due to shifting from profit to cost
centre. They invest in technology which allowed them to obtain two new businesses.
Morrison's data accuracy and efficiency increased using the Zetes' voice solution which
enables warehouse operators to contact through voice. It improved the distribution chain, quality
of time management. Zetes' additional benefit is the flexibility, complete solution and easy
access to all latest application and developments.
British supermarket chain has started using “rentable boxes” with an aim to protect the
ecology by reducing single-use plastic. It has been the first scheme used by the firm among UK's
supermarket. The retailer target is to reduce plastic packaging by 50% till 2025 and using paper
carrier bags, kitchen rolls with plastic free packaging.
Muddy Boot was launched by the Morrisons which is a quality management software
guarantees the quality of their products to meet the consumer requirements. They have been
working together over the 5 years, to enhance the software solutions to achieve industry
standards. The quoted company follow the Greenlight Quality Management software which
change the company's from paper based checks to the paperless technology (Querini and et.al.,
2021). This technology also support with the training of the workforce who would perform the
checks and manages the site.
Operation management is used for the cost reduction, supply chain management,
productivity, customer relation etc. Well-established supply chain links the suppliers,

manufacturer, distributors and customer and by using AI which record the products in the store
in case if there is any requirement the AI automatically arrange the product from the
manufacturer to the end of the user. Reduction in costs gather the data of cost materials from the
various sources in real time. Operation IT includes all technical process of a company.
Technology are helping business increase in their productivity, improvement in product
development, employee skills.
Presenting how support function help quoted firm’s operation management system
There are various types of support functions which helps Morrison in its operation
management, these are:
Quality management: quality management ensure the standards or specification of
company's product company carry out the quality planning, control, and improvement all the
standards should meet the customer requirement of the Morrison’s. Morrison implements
manufacturing QMS (Quality Management Software) to ensure the product quality and customer
needs (Ramos, de Morais and Barbosa-Póvoa, 2018). As the company sell the product at global
level, so Morrison has begun rolling out Greenlight Quality Management Software across all
their warehouses and manufacturing sites. By considering this company is able to configure their
products, check the performance on multiple area stores and warehouse. However, it has been
critically analysed that there is significant rise in the number of checks on regular basis and that
is why, company need to follow the quality framework. Also, Operation manager of quoted firm
should ensure the quality control processes that assist to offer the products to customers.
Customer Services: customer service is another support function that talks about the
customer services activities (Huang, Lee and Chen, 2019). This department handle the customer
complaints, inquiries, returns and requirement of the customer. As Morrison uses quality
management system and if the quality management is done (perfectly) than the chances of
customer complaints will decreases, in case if there are any defects in the product then it would
be solved in the real time or as soon as possible which will directly helps in the goodwill of the
company. The manager of the depots noticed that people counting devices to count the actual
number of people entering into the Morrison's Stores.
Research and Development: R&D focus on the innovation of new product or services in
a company. Company need to know the competitors new innovations to their products that
advance its current product line. Morrison's made the changes according to the research and

development and to meet the standard Quality management (Yuldoshev, Tursunov and Qozoqov,
2018). Operations management that product design need R&D to meet the competitor's product,
technology are becoming advance and dynamic. The main duties of operation management is to
ensure that a product is designed to the standards and to serve the market satisfaction as per the
customer needs. Current R&D of Morrisons focus to addressing practical advice that could be
developed for the environmental enhancement in pork, egg and chicken producers, which may
be provided benefits for the animal.
Procurement: Procurement department that deals which logistics and SCM (Supply
Chain Management), buying. It handles the purchase of the components for the production
process. Besides from that, buying other items according to need of the company and the such as
office equipment is also under this department (Sepehri, Mishra and Sarkar, 2021). If we talk
about the operational function, supply chain configuration is operated by the manager of this
department to ensure the proper set up of supply chain. Purchasing of the raw material and
producing the product and sale of the finish product to the customer. The fast availability and
delivery is completely depends on the supply chain for quicker sales. Morrison's chain work
under the specialist where both manager and specialist take the responsibility for a product
supplies as per the schedule date and time on the basis of demand on each day. In this, company
do not look after the seasonal events and availability of stock and procurement of the fresh foods.
CONCLUSION
The report has been concluded the quality standards management practice of the
Morrisons retailer. It has been critically analysed the impacts of quality management in reference
to its efficiency and the role of technology has been embedded in the process of achieving
success. In the end, report has been concluded by the supporting functions of the quality
management and its crucial assistance ensuring in the quoted firm's success.

REFERENCES
Books and journals
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packaging supply chain in order to support a move to circular economy
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Fatorachian, H. and Kazemi, H., 2021. Impact of Industry 4.0 on supply chain
performance. Production Planning & Control, 32(1), pp.63-81.
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Sector and Role of Behavioral Quality Management Practice. Seoul Journal of
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satisfaction and loyalty in B2B technology service industry. Total Quality Management
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Querini, P.L., and et.al., 2021. A two-level model to define the energy procurement contract and
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Ramos, T. R. P., de Morais, C. S. and Barbosa-Póvoa, A.P., 2018. The smart waste collection
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