Quality Management Report: Analyzing Tesco's Product Quality Issues

This report examines the quality management challenges faced by Tesco, a multinational company, and their impact on business performance. It identifies a decline in sales attributed to product quality issues, analyzing the problem using quality tools such as flowcharts, scatter diagrams, and control ...Read More

Quality Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Description of organization................................................................................................1
b. Opportunity identified........................................................................................................1
c. Proposed solutions..............................................................................................................6
d. Implementation plan...........................................................................................................7
2. Quality and quality management........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Quality management make sure that organization and products/services are appropriate
and also maintain desired level of excellence. In the same way, current report main aim is to
highlight the importance of quality management within business. The report is based upon Tesco
who faces issues of quality in its offered products, that is why, study describe existing problem
by using different quality tools. Then proposed solutions which helps to minimize issues up to
some extent through implementation plan. Lastly, report describe importance of quality
management with real life examples.
MAIN BODY
1. Description of organization
Tesco is one of the top multinational company in UK who provide range of products to
the company in reasonable rates. Currently the company operates its unit in more than 11
countries and have around 600 stores at global level. TESCO has diversified into areas such that
books, clothing, electronics, furniture, toys, petrol and financial services. The company also
operates its business at global level with an aim of provide best range of products and services to
their customers without any compromising in its quality.
Study and data shows that TESCO sales is decreases from last many years because it
compromise the quality of products and this in turn force customers to focus on another company
(Ebel, 2019). Therefore, it is one of the biggest issue which currently company faces. Such that
the sales of company sudden falls from 1.5% in the third quarter of 2019. However, it is the sign
of losing its way, so its rivals also take advantage of Tesco weakness and also attract customers
towards it by offering the same product with good quality. Therefore, it is a crucial time for
Tesco to again develop a strategy that helps to meet the targets again and be on top position of
competition.
b. Opportunity identified
In order to determine the existing problem in deep manner, there are different quality
tools that helps Tesco to exactly determine whether the problem cause direct impact upon
performance or not. Form the secondary data, it is analyzed that, Tesco faces issue in business
especially related to product quality, such that its sales is decreases up to 2% . Since, July 1,
2019, it is analyzed that the value score has fallen from 17.8 to 10.6 and even its quality is also
dropped up to 4.2%. Therefore, it is clearly reflected that company's overall performance got
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affected in opposite manner due to fall in its quality of products. Therefore, there are many tools
that helps a business to analyze the issues in depth, such that,
Flow chart: In order to determine the actual situation and study In depth, it is beneficial
to use flow cart as a quality tool. It is the method or easy to understand diagram that clearly
describe how the steps of a process fit together (Zingg and et.al., 2016). Therefore, this tool also
helps to makes communicating and documenting a process in quick and clear manner. Therefore,
the process will be more likely to understood and applied correctly so that it helps the business to
estimate timescale of a process.
Hence, through flowchart, managers of Tesco clearly identifies the relationship between
all the components and it also illustrates the sequence of operations which must be performed in
order to get the solutions of a problem. Therefore, this is consider one of the most important tool
that expressed clear relationship between all variables.
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The above graph shows that there is there is a when a product is start manufacturing then
in each and every stage of flowchart provides a clear linkage between every variables. Further,
during the process, wastage is also identified and this in turn also helps to analyze the problem
and then decision is taken in order to minimize the problem.
Scatter diagram: It is the graph pair of numerical data with one variable on each axis in
order to look for a relationship between them. Therefore, Tesco may also use this quality tool
that helps the business to identify the variables are correlated or not. Further, if there is better
correlation then tighter the point which will hug the line. Even it is also used by many
Multinational company when they try to identify the potential root cause of any problem and also
used after fishbone diagram in order to determine objectives whether the cause as well as effects
are actually related or not (Cheung and et.al., 2017). Thus, these variables are also assist or
represent possible cause as well as effect.
Currently company faces issue of not complying with quality of products and that is why,
it is quite essential to maintain quality because it is directly related to business performance.
Such that when, customer did not prefer to purchase low quality of product, then sales of a firm
automatically decreases and this in turn affect negative impact upon business. That is why,
through scatter diagram, company easily identify the relationship between these variables and
then immediately take action in order to lower down the effect.
(1 to 5= high to low quality)
(0 to 1000= low to high sales)
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Interpretation: from the above, it is interpreted that when quality is low (i.e. 5) then sales
declines while on the other side, when quality of offered products is high (I.e.1) then it increases
sales of Tesco. Therefore it is clearly interpreted that there is a positive or direct relationship
between sales and quality and if both are high then it creates positive impact upon business
performance.
Control Charts: It is another type which are used to plot data points that provide clear
picture of the movement of that data. Therefore, it mainly focus on monitoring performance over
time by looking at the changes. Moreover, these charts helps Tesco to clearly analyze the
operational performance of a business (Kelly, 2019). Therefore, by routinely used this tool helps
to determine the performance level of the firm and thus, company identify the root cause of
problem as well. Further, it is consider one of the most traditional method that helps to keep
analyzing the performance level of the business and now it is also used to manage quality and
consider as a quality tool.
(1 to 5= high to low quality)
(0 to 1000= low to high sales)
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Interpretation: the above control chart shows that variation between sales and quality of
products such that during manufacturing process when there is raw material are not good in
quality, then it affect the sales in adverse manner. Such that when quality of products is high
sales of Tesco also high but when it quality decline, sales automatically decreases. Therefore,
this direct relationship between both variables shows that quality plays a major role in the
business performance.
c. Proposed solutions
In order to improve the quality of offered products and services, it is recommended to
Tesco that it must implement Quality management tool within a firm that helps the business to
comply with best quality of products and services. There are variety of model which Tesco may
use in order to improve the quality of offered products. Such that Six sigma, it is consider one of
the best model that is actually designed to improve quality. Further, it is the measurement based
strategy of quality management and also assist business to find the great success in problem
reduction.
On the other side, it is also recommended to the firm that it may also use Lean
Management principles i.e. 5S. It is the model that assist business from manufacturing practices,
but it does not mean that it is applicable to manufacturing only (Amran and et.al., 2019). This
method provide proper guidance to all industries and mainly focus on the continuous
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improvement only. Moreover, this quality management tool also supports the concept of
continuous improvement and a long term approach that work systematically throughout process,
also incremental changes in process so that its efficiency and quality will be improved. As Tesco
faces issue with the quality of products and it also mainly focus on the price by compromising
quality so that company's financial performance will be improved. That is why, it is suggested to
use lean management as it pursue perfection by putting the customer first and also define waste
as an activity which did not add value to customers. Therefore, through lean approach, Tesco
reduce cycle time during manufacturing process that helps to improve the overall process in
better way.
In addition to this, it is also suggested to the firm to implement new tools and also
manage risk during manufacturing and operational process. Such that it may develop tools and
techniques that also assist company to generate more opportunities related to improvement
efforts (Ebel, 2019). Such that managers of Tesco maintain Check sheet which assist business to
identify whether all the element are proper during manufacturing process. Or this tool also used
to collect information in real time at location where the data is generated. Thus, by using the
tools/techniques, Tesco may reduce the chances of risk and offered best quality products to
customers.
d. Implementation plan
In order to implement the above mention tool and techniques, company has to follow the
steps that helps a business to meet its defined aim and objectives. Thus the process is as mention
below:
Detailing the activities: To improve the quality of product, Tesco follow below mention steps,
 Tesco should identify the real requirement of the company and then set objectives
accordingly. Currently, company's objective is to improve quality of its offered products.
 For that Tesco, process should be simple and easily understandable, In this, company
have to remove all the unnecessary items and document the business process so that
stakeholder may easily review and approve. (Côrte-Real, Ruivo and Oliveira, 2020)
 Next, set Key performance indicators that critically examine each process and provide
expected results. Therefore, by setting the targets and regular monitoring helps a business
to attain define goal.
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 Hire team and delegate responsibilities which help business to meet the aim and also
measure results to determine performance.
Timeline: To meet the goal, company requires approx 6 months and after that managers should
monitor the entire system at regular basis in order to confirm that there will be no error in
manufacturing process.
Resource required: Company requires, Human resource (experts) who provide guidance to
operate the system. Next company require financial resources through which the plan will be
implemented properly. Moreover, company also require technical resource to make the process
easy and reduce time and cost.
2. Quality and quality management
Quality management is the act of monitoring all activities and task that nee to be maintain
at desired level of excellence. Moreover, Stolzer and Goglia (2016) stated that quality
management make sure that an organization, product and service is consistent and it mainly
focused on the product and service quality. Thus it includes everything which a company wants
to produce and also deliver the best product and service at appropriate cost. Author also state that
it has four main components i.e. quality planning, quality control, quality assurance and quality
improvement which needs to be be more focused. Therefore, Quality Management is a way to
not only deliver the high quality products and services bit to attain high customer satisfaction
level as well. That is why, majority of top multinational company mainly focus on this to stay
ahead top in competition.
Ennker and Walker (2017) stated that quality Management increases efficiency and
productivity which creates positive impact upon revenue and also breeds team spirit within a
firm, that is why, it is consider one of the crucial part to run a business in success path. Such that
if customer perceive inconsistent products and services, then they will not come again in the
firm. Even it also become loyal. That is why, variety of quality management strategies such that
total quality Management and six sigma is introduced that helps company to produce high
quality products within a business. Overall, quality management makes sure that there is a high
quality of products and services are delivered to the customers. As every product and service is
subject to a thorough quality assurance process in order to make sure that the results are reliable
and durable. That is why, quality management value is lies in its ability to assist company to
improve their product's reliability and durability.
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Litvaj and Makarovič (2019) explain in their study that the International Standard for
Quality Management has a number of management principles which are as mention below:
Customer focus
Quality Management should primarily focus is customer means to meet the need of
customer. Further, it also strive to exceed customer expectation because customer satisfaction is
the backbone of quality management.
Leadership
Leaders of the firm establish unity of purpose and direction, or create condition in which
people are engaged to attain organization's quality objectives. It is so because by creation of
unity of purpose and engaging people which enable the firm to align its strategies and resources
to accomplish goals (Ross, 2017).
Engagement of people
According to Griffin (2016) in order to raise company's capability and deliver value, it is
essential to have competent and engage people. This is implement to all level of people so that
they facilitate best product within a firm.
Process approach
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Illustration 1: Principles of Quality management

It is not possible to understand the activity of a firm and it is essential that company
managed as interrelated process that seamlessly as coherent system. That time, company attain
consistent and best results effectively. As quality management system is consist of interrelated
process, that is why, it is essential for a company to optimize system and its performance.
Improvement
It is essential for the firm to keep improving its current level of performance to attain
high results in future.
Evidence based decision making
As manager of the firm make decision on the evaluation and analysis of data, though
decision is a complex process and it is also involves some uncertainty. That is why, through
appropriate facts and figures, decision are taken.
Relationship Management
Companies who striving for the sustained success, should also manage their relationship
with interested parties (Bravi, Murmura and Santos, 2019). Also, organization must offer range
of innovative product that helps to attract customers and then maintain good relationship for long
term.
Example:
 The most famous example of Quality management is Toyota's implementation of Kanban
system. A Kanban is a physical signal which creates a chain reaction that results to a
specific action. This process helps to manage quality and also meet the demand of
customers which in turn assist to raise overall financial performance of a company.
 Marks and Spencer also uses Quality management tool in order to satisfy the need of
customers by providing high quality of products at great value. It has a team of around
78000 people who make sure their brand providing best quality and value of services by
complying Quality Management principles.
CONCLUSION
By summing up above report it has been concluded that Tesco faces issue related to
quality of offered products and this further identified by using Pareto chart and flowchart.
Moreover, report also provide solutions i.e. to implement six sigma, lean production to reduce
the issue up to some extent. Then, study conclude the implementation planning which comprises
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activities, timeline and resource required. Lastly, report concluded quality management helps to
determine quality planning, assurance and quality control.
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REFERENCES
Books and Journals
Amran, M. M. and et.al., 2019. Development of Intelligent Decision Support System for
Selection of Quality Tools and Techniques. International Journal of Machine Learning
and Computing.9(6).
Bravi, L., Murmura, F. and Santos, G., 2019. The ISO 9001: 2015 quality management system
standard: companies’ drivers, benefits and barriers to its implementation. Quality
Innovation Prosperity.23(2). pp.64-82.
Cheung, C. C. and et.al., 2017. Evolution of quality assurance for clinical immunohistochemistry
in the era of precision medicine: part 4: tissue tools for quality assurance in
immunohistochemistry. Applied Immunohistochemistry & Molecular Morphology. 25(4).
pp.227-230.
Côrte-Real, N., Ruivo, P. and Oliveira, T., 2020. Leveraging internet of things and big data
analytics initiatives in European and American firms: Is data quality a way to extract
business value?. Information & Management.57(1). p.103141.
Ebel, K. E., 2019. Achieving Excellence in Business: A Practical Guide on the Total Quality
Transformation Process. Routledge.
Ennker, J. and Walker, T., 2017. Principles of Quality Assurance and Risk Management Risk.
In Cardiac Surgery(pp. 67-84). Springer, Berlin, Heidelberg.
Griffin, R. D., 2016. Principles of air quality management. CRC Press.
Kelly, M. R., 2019. Everyone's Problem Solving Handbook: Step-by-step Solutions for Quality
Improvement. Routledge.
Litvaj, I. and Makarovič, J., 2019. Significance and Implementation of Eight Quality
Management Principles in a Small Business. Technological Engineering.16(1). pp.40-42.
Ross, J. E., 2017. Total quality management: Text, cases, and readings. Routledge.
Stolzer, A. J. and Goglia, J .J., 2016. Principles of Quality Management. In Safety Management
Systems in Aviation(pp. 97-146). Routledge.
Zingg, W. and et.al., 2016. Innovative tools for quality assessment: integrated quality criteria for
review of multiple study designs (ICROMS). Public Health.133. pp.19-37.
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