Evaluating Operations Management in Tesco: A Comprehensive Report

This report examines Tesco's operations management practices, focusing on Total Quality Management (TQM). It begins with an introduction to operations management and its application at Tesco, a major British retailer. The report analyzes TQM implementation, including strategies for employee training, customer service, and product quality. It assesses the impact of these practices on organizational efficiency, highlighting cost minimization, flexibility, product quality, and customer satisfaction. The analysis extends to technology integration, such as self-service checkouts, Broccoli Cams, and electronic shelf labels, and their role in fraud prevention and customer service enhancement. The report also explores the link between supporting functions, such as HRM and finance, and the success of Tesco's operations. Overall, the report emphasizes the importance of TQM, technology adoption, and integrated supporting functions in achieving operational excellence and maintaining a competitive advantage in the retail industry.

Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
Operation management practice..................................................................................................3
Task 2 ..............................................................................................................................................4
Analyse operation management practice impacts the organisation in terms of efficiency. ......4
Task 3 ..............................................................................................................................................6
How technology could be embedded in this process. ................................................................6
Task 4. Supporting functions are linked to this operation management practice and achieve
success through this process. .....................................................................................................7
CONCLUSION................................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Operations management is an management of organisation exercise to create the high
level work efficiency in organisation. It is converting material and labour into goods and services
to increase profitability and productivity in company. Operation management team balance the
cost and revenue to achieve success at highest level or increase the net operating profit . This
report is based on Tesco plc is trading as Tesco , this company is British groceries and general
retailer company. Tesco founded in 1919 in Welwyn Garden city, England UK. Tesco is the third
largest retailer organisation in world in terms of gross revenue. The report below include;
operation management practice in company, analyse operation practice impact in company in
terms of work efficiency, technologies used in organisation and describe functions in
organisation practice for achieving success.
MAIN BODY
Task 1
Operation management practice.
Total quality management : Total quality management is process of observing and controlling
errors in production management, manufacturing management, supply management, rising
customers experience and improving employees training. The main motive of total quality
management is hold all the clients who involve in production process for final products and
service quality. TQM concept founded by William Deming and focus on internal programme and
process to cut down the faults. Tesco plan various strategies to reduce the problems and
challenges in stores such as they trained to employees for build strong relationship with
customers. In traditional time retailing company's focus on convenience of supermarkets rather
then customers convenience. But in current scenario retailers focus on convenience of customers
improving services according to customers expectations. Tesco is most successful retail
supermarket chain in UK because of their service quality and product quality. Tesco used total
quality management for stability or maintain standard position, also they maintain quality for
satisfaction of customers on regular basis. Tesco 's main motive is to meet customers
expectations and needs and less wastage in store. Company used various strategies to achieve the
growth or target goals. Tesco hired skilled employees for effective work in store and manage or
improve the quality of services. Better services quality attract new customers and helps in

building strong or loyal customers. Company applied some rules and policies such as;
compulsory to fulfil customers requirements all the time, provide all the checked products to
customers there is no defect in product, employees take care of this . After deliver goods if
customers has any complaint then take is on prior basis and provide them solution and focus on
verification of processes to analyse the best standard quality.
Tesco company produce own products , they deal with online stores and other outlets in UK.
Company focus on maintain hygiene in every store located in UK. Total quality management in
Tesco helps in many factors such as productivity, low cost,flexibility, quality of products and
services, delivery time product, build strong relationship with suppliers and customers, stability
in long term and etc.
Task 2
Analyse operation management practice impacts the organisation in terms of efficiency.
Minimize cost : Total quality management reduce the cost, because company observe all
the errors and wastage in store , they control wastage and errors through this company save cost.
Tesco plc observe all the defective products in store , they improve product quality so they can
improve services also and save cost on that. Company use limited resources and they dispose
waste in proper manner.
Flexibility : UK grocery market has less competitors. Tesco, Asda and Sainsbury
purchased 70% of stocks in market. Tesco build good brand image in market , they maintain
quality of products and services and Tesco invested in new and latest technologies such as hand
held equipment, self service checkout, broccoli cam and electric price label. It provide customer
handling techniques and build good relationship with customers in long term. Company adopt
new techniques according to market trends and customers expectation on regular basis , these
strategies helps in growth and stability in long terms.
Quality of products : Total quality management in Tesco helps in maintain standard
quality of products. Tesco have good brand image in market , they measure quality of products
before providing to customers. Production management is important for better growth of
company, achieve targeted goals, better performance of services, increase profitability,
increasing productivity and meet customers needs and expectations.

Meet customers needs and expectations : Total quality management in Tesco helps in
fulfil customers need sand expectations. Company found errors and defective products so they
could provide better quality. HR department hire skilled employees so they can improve service
quality in store. Tesco follow market trends to meet customers needs and company adopt new
technologies in store so they could provide better facilities to customers and make loyal
customers. In retailing market it is very important to know about customers expextations and
wants to create less competition.
Stability in long term : Total quality management in Tesco provide stability in market
for long time of period. Tesco is popular for quality of products and services , it has strong brand
value in market so it helps in regular growth of company. Tesco maintain quality and standard of
products. Company apply new or latest techniques according to market trends and customers
expectations it helps in company stability for long time of period and increase brand image.
Relationship with customers : Total quality management in Tesco helps in building
strong relationship with customers for improving services and standard or products. Human
resource management offer job to talented and skilled people so they could provide better
services to customers and build a strong and loyal relationship with customers. In current
scenario customers wants new new techniques and latest services according to their comfort ,so
company take surveys and feedbacks after purchasing for improving performance and make
loyal customers in market.
Relationship with suppliers : Total quality management in Tesco helps in maintain
relationship with suppliers. Tesco have best product quality and services , company have to
maintain the quality so they build strong relationship with suppliers also for increasing brand
value in market. For company good supplier is important because they helps in supply good
materials for products . Standard quality products based on great material quality and it helps in
maintain standard quality products in company so they provide better quality goods and increase
brand value in market.
Competitors : Tesco has less competition in market and TQM helps in reduce competition in
market because Tesco manage and maintain services and standard of products and also they has
low cost of products, flexibility,quality, delivery time or speed. Tesco reach out maximum
numbers of customers and meet their needs. Company adopt new techniques according to trends
in market and give 100% to provide best quality products and services that's why Tesco plc has

less competition in market and company build loyal customers from starting so customers also
prefer Tesco's products always.
Task 3
How technology could be embedded in this process.
In current scenario technologies change day by day every organisations adopt new
technologies for effective work. Tesco adopt new technology for develop their services and work
process. Tesco plc invested in digital in store opening ' scan as you shop ' hand-held equipment.
This equipment used for prevent from frauds in stores. Employees used this equipment for
scanning the tags of products. In store each product has special tag without removing this tag on
main counter for billing process, customers could not go out from store. This technology
minimize the frauds in store. Company fix camera's in store so they could check employees work
on counter. After that Tesco provide self service checkout to customers under employees
involvement in this customer has to scan their product first after scanning process , machine
would pack the products in carry bag under employees involvement, last process is payment
customers would pay the amount through cards and cash in machine. After self services checkout
Tesco invested in 'Broccoli Cam ' in this technology they fix camera' on each floor if customers
did any fraud then employees directly received alert message , employees could stop this fraud.
After ' Broccoli Cam ' Tesco invested in ' Electronic shelf edge label ' in this technology
Tesco used electric price label for each product categories. Employees has to change 5-10
millions of paper label on every product categories , this is very time consuming process , so
Tesco invested in electronic price labels , so employees could focus on customer service rather
than time consuming process. Tesco come up with idea of club-board loyalty scheme, this
scheme provide loyalty tags to customers on every purchase. Customers collect data points on
every purchase and customers can take advantages of collected points such as offline and online
discounts. Through this strategy other customers also connected with Tesco plc. These
technologies helps in effective work in organisation and employees could manage work easily
and give more focus on customer services. These technologies also helps in : less wastage of
products in store, fulfil customers needs and satisfied them, company could found less defective
products so they save more cost and product management and development. Company use new
technologies according to market trends such as Tesco started home delivery option for

customers. Customers can order any product on online application and store provide their
products on door steps, customers no need to visit store because it is very time consuming also.
Tesco plc has own application with various options such as, payment option, home delivery
options, company also provide offers and discounts to attract customers. Company take
feedbacks and surveys from customers through mail or application company ask about their
experience and company improve their services quality according to customers. Tesco used
technology in well manner and in different departments like in human resource management ,
they take interviews through online platform it is easy for HR department and peoples also.
Company offer job on applications so people easily find out jobs if they needed. Tesco provide
training course also for better performance and growth.
Task 4. Supporting functions are linked to this operation management practice and achieve
success through this process.
TQM in HRM : Total quality management in Human resource management helps in
select skilled and talented people for Tesco for improving the services quality in organisation and
achieve success. In Tesco they hire skilled people after they provide training also for best
performance. HR manager always motivate to employees so they prvide better services to
customers and build strong relationship with customers and attract new customers to planning
new strategies according to market trends. HR department provide special training course to
employees. Company offer jonb on online application so people find job easily. TQM in HRM is
important for hire best skilled and talented peoples for organisation to improve performance in
better way.
TQM in Finance : Total quality management in finance helps in manage and maintain
accountability in Tesco. Tesco is third largest retailer organisation in UK . Company balance
cost and revenue to increasing net operating profit. Tesco's product cost is low but they provide
best quality in products and services to customers , for better quality customers attract more
toward the Tesco's products , their sales is increasing day by day. Company use technology for
finance department so there is no mistake is to be done.
TQM in forecasting : Total quality products in forecasting helps in planning strategies
and forecast the plans in Tesco. Total quality management helps in find out errors and problems
and then improve and develop these errors. Tesco plc planing strategies for goals and growth,
they apply those strategies but if they were finds any errors or weak point then company improve

strategies accordingly. Tesco forecasting the plans according to market trends , customers needs,
digital technologies and m any more. Company applied various technology in different stores to
improve work efficiency and better performance. Forecasting is very important for every
organisation to grow business in better way.
TQM in operations : Total quality management in operation helps in control and
manage the problems and errors. Tesco applied TQM concept in operations to improve their
strategies and develop accordingly. Company balance revenue for achieve success and company
has third position in UK in terms of gross revenue. In current scenario Tesco use various
techniques to improve their growth. It helps in better performance in stores and increase brand
value in market. TQM helps in operation to improve work in effective manner. Company
maintain good relationship with suppliers so company get good material so they produce
standard quality products or maintain production management in effective way.
TQM in Strategy : Total quality management in strategy helps in plan strategies in
effective manner. Tesco plc planning strategies according to market trends and customers needs,
such as they adopt new technology for better performance, growth and reduce frauds in stores.
Tradional techniques are very time consuming concept so company improving day by day in
technologies so company can more focus on providing services to customers. Effective strategies
helps in growth for long terms, better performance, profitability, productivity,reduce wastages,
save cost and improve services so customers easily attract toward the Tesco 's products and less
competitions in market.

CONCLUSION
It is concluded that operation management is very effective to increase profitability and
productivity of company, operation management balance the cost to increase net operation profit
in every company. Total quality management find out the errors and problems in organisation
and improve or develop them accordingly. This concept helps in less wastage and save cost
through this company can achieve targeted goals and growth. Company could build strong
relationship with customers and suppliers through TQM concept in company. TQM helps in
adopt latest technologies in effective manner and also achieving goals in various functions like
human resources management , finance department, operation department and business
forecasting. Company research about the current market trends to meet customers needs and
expectations. Company provide best quality services and products so they can reach out
maximum customers and build loyal customers and TQM in strategies important for better
growth and productivity in business.

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