TESCO's Total Quality Management: Tools, Implementation, and Success

This report provides a comprehensive analysis of Total Quality Management (TQM) implementation within TESCO, a leading multinational grocery retailer. It begins with an introduction to TQM, emphasizing its focus on customer satisfaction and loyalty. The report then delves into the specific TQM tools utilized by TESCO, including check sheets, Pareto charts, histograms, and cause-and-effect diagrams, illustrating how these tools are applied to monitor and improve quality across various aspects of the business. The implementation section details TESCO's strategies for maintaining product and service quality, such as quality audits, employee training, and regular product inspections. The report further examines the success of these implementations, highlighting how TESCO's commitment to TQM has contributed to its low-cost competitiveness and ability to navigate economic downturns. Additionally, it addresses the challenges associated with change management, such as resistance and the importance of leadership and training. The report concludes by summarizing TESCO's effective use of TQM to maintain high standards and customer satisfaction.

Running head: TOTAL QUALITY MANAGEMENT
Total Quality Management
of TESCO Company

TOTAL QUALITY MANAGEMENT 1
Table of Contents
Introduction.................................................................................................................................................2
Total Quality Management......................................................................................................................2
Total Quality Management Tools............................................................................................................3
Checksheet...........................................................................................................................................3
Pareto chart..........................................................................................................................................4
Histogram............................................................................................................................................5
Cause and Effect diagram....................................................................................................................6
Implementation of Total Quality Management Tools..............................................................................6
Success of the Implementation................................................................................................................7
Dealing with the changes.........................................................................................................................7
Resistance............................................................................................................................................7
Time....................................................................................................................................................7
Leadership...........................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

TOTAL QUALITY MANAGEMENT 2
TESCO
Source [https://www.tescoplc.com/about-us/our-businesses/tesco-uk/tesco-in-the-uk/]
Total Quality Management
Total Quality Management refers to the overall efforts of the organization’s management as well
as of employees to make sure the satisfaction of customer and customer loyalty. It has been
noted that one happy customer brings more customers with him and one disappointed customer
will spread the negative information about the company and will affect the existing customers of
the company (Management study guide, 2017).
Total Quality Management Tools
Checksheet

TOTAL QUALITY MANAGEMENT 3
Source [https://totalqualitymanagement.wordpress.com/2008/09/21/management-of-process-
quality/]
TESCO use check sheet as a tool for total quality management. The check sheet main function is
an effective presentation of information in the graphical format. This can be done by a complete
and simple item list. Though, the value of the check sheet may be considerably improved, in
some orders, by including the description of the method under examination into the form (Word
press, 2017).
Pareto chart

TOTAL QUALITY MANAGEMENT 4
Source [https://pablo-cebrian.com/tools-strategy/spc-x-bar-and-r-bar/]
To recognize the factors that have the highest growing influence on the system and hence screen
out the less important aspects of an investigation. Preferably, this permits the user to focus on
limited significant aspects of a procedure. They are formed by plotting the growing rates of the
comparative rate data, in downward order. In the end, the most important factors for the
examination are graphically outward, in systematic format (Tech Target, 2017).
Histogram

TOTAL QUALITY MANAGEMENT 5
Source [https://www.ifm.eng.cam.ac.uk/research/dstools/tqm-tools/]
Collected data is represented in a graphical and simple view by Histogram as well as its central
tendency and dispersion. Further, to the comfort through which they can be made, histograms
offer the simplest method to calculate the dispersal of data (Institute of Business Management,
2015).
Cause and Effect diagram

TOTAL QUALITY MANAGEMENT 6
Source [https://www.slideshare.net/Mudassar_Salman/total-quality-management-tqm-4830885]
Another name of Cause and Effect diagram is Ishikawa or fishbone diagram, which is used to
corporate numerous potential reasons. Therefore, assumed a specific consequence, the diagram is
created to recognize and form potential reasons for it.
Implementation of Total Quality Management Tools
Over the time TESCO is focused towards quality management for providing the product with
good quality and services to the customers and for retaining and satisfying the customer. Quality
audits and quality assurance techniques are used by the company regularly. The company's main
objective is to maintain the quality of services and products and to fulfill these objectives they
used different strategies (American society for quality, 2017). In addition to this business recruit,
skilled labors and regular meeting use to conduct to discuss about the quality improvement.
There were many ways by which quality can be improved in TESCO Company. The products
that were manufactured by TESCO itself and product manufactured by the third party are sell by
TESCO. All the products were first put into testing and audits by the company to verify that

TOTAL QUALITY MANAGEMENT 7
product is following all the standards or not then products were replaced if standards were not
followed. Cleanliness is kept in the section of food. Thus, to keep the decorum of the place
trained labor is placed there and complaints and feedback of the customers are taken about the
place and try to correct it within the short period of time (Mitreva, Taskov and Lazarovski,
2014).
In the process of TESCO, product’s expiry is regularly checked so that they can be disposed
carefully by the skilled workers and are switched by appropriate product. In the premises of the
company grocery items are sold on a daily basis and are switched regularly for maintaining the
quality levels (Presentation EZE, 2013).
Success of the Implementation
Flexibility is included in the agenda of TESCO with the Total quality management introduction.
With this, they did market research and provided the new product which was in highly
demanding. Via focused on their internal value they started offering financial facilities, insurance
facilities and offering houses facilities at a reasonable and inexpensive price. In addition to this,
TESCO also started offering yogurt by considering the nutrition level and nowadays people are
more focused towards their health so they also provided oil, butter, and milk on the daily basis.
For making the distribution easy and inexpensive TESCO started the manufacturing of these
products and sold under the brand name of their company. Totally, they made the effective use of
the implementation of total quality management as it helps them to encourage employees,
launching new products, refining the infrastructure of IT department, refining the efficiency and
increasing profits and revenues of the business (Chandra, 2013).
For TESCO it is essential to respect their employees and associates and provides what they
deserve. Therefore, policies of TESCO are employee centric and focused towards a growth of
employee. Mostly their profits and revenue are devoted to employee's appraisal under the system
of employee compensation. The policies of the company of human resource are intentionally
focused in the direction of the mission and objectives as due to this motivation of the employee
increases and they give their best in their work and generate more revenue for the company
(Napierala, 2012).
TESCO is focusing on total quality management as well as in its low-cost management. As the
internal process of the business is very effective which is providing them the competitive

TOTAL QUALITY MANAGEMENT 8
advantage so that they can operate their internal processes at low cost and provide quality of
products to the customers at low cost as compared to their competitors (Hansson, Backlund and
Lycke, 2003). Therefore, at the time of recession TESCO was in profit due to its low-cost
competitiveness and on the other hand, many companies of UK faced losses. Thus, due to their
low-cost policy, they have kept their quantity of shopping volumes.
Dealing with the changes
Training- Despite of the nature of the change, people will show resistance towards the change as
is not familiar. Introduction of TQM should be done to increase the interest of the people and
decrease the resistance. TESCO have provided proper training to their staff after implementing
the TQM for the success and for the productivity of the business, for this they appointed experts
for providing training to their staff (Grice, 2017).
Leadership- The success and failure of the changes are dependent on the ability of the leader
(Ferlie, and Shortell, 2001). Thus, it depends on the management if they will be committed then
employees will be focused and if management will back off then employees will not take any
interest in the change (The World of Work, 2017).
Conclusion
Tesco is one of the famous grocery multinational retailers in the UK and earns good profit in the
market. They are known for its low-cost competitive strategy and providing good quality of
products to the customers. They use different quality standards through which all products go
through. In the implementation phase, the do regular testing and auditing of the products
especially the expiry of the products.

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References
American society for quality, 2017, Total quality management implementation and system,
Accessed on: 8 November 2017, Accessed from: http://asq.org/learn-about-quality/total-quality-
management/overview/implementing-tqm.html
Chandra, P.V., 2013, A Study on Implementation of Total Quality Management in Businesses,
International Journal of Engineering Science and Innovative Technology, 2(3).
Ferlie, E.B. and Shortell, S.M., 2001. Improving the quality of health care in the United
Kingdom and the United States: a framework for change. The Milbank Quarterly, 79(2), pp.281-
315.
Grice, K, 2017, Dealing with Change and Change Management, Accessed on: 8 November
2017, Accessed from: https://www.impactfactory.com/library/dealing-change-and-change-
management
Hansson, J., Backlund, F. and Lycke, L., 2003. Managing commitment: increasing the odds for
successful implementation of TQM, TPM or RCM. International Journal of Quality &
Reliability Management, 20(9), pp.993-1008.
Institute of Business Management, 2015, Histogram, Accessed on: 8 November 2017, Accessed
from: http://www.iibmindialms.com/library/management-basic-subjects/total-quality-
management/histogram/
Management study guide, 2017, Total Quality Management - Meaning and Important Concepts,
Accessed on: 8 November 2017, Accessed from: http://www.managementstudyguide.com/total-
quality-management.htm
Mitreva, E., Taskov, N. and Lazarovski, Z., 2014. The need for the design and implementation of
TQM system for the airport services TAV Airports Holding, Macedonia.
Napierala, B, 2012, Five important factors in total quality management, Accessed on: 8
November 2017, Accessed from: http://aboutthree.com/blog/five-important-factors-in-total-
quality-management/

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Presentation EZE, 2013, TQM Tools and Techniques, Accessed on: 8 November 2017, Accessed
from: http://www.presentationeze.com/presentations/tqm-tools-and-techniques/
Tech Target, 2017, Pareto chart (Pareto distribution diagram), Accessed on: 8 November,
Accessed from: http://whatis.techtarget.com/definition/Pareto-chart-Pareto-distribution-diagram
The World of Work, 2017, TQM As Organizational Change, Accessed on: 8 November 2017,
Accessed from: http://work911.com/articles/tqm2.htm
Word press, 2017, Total Quality Management, Accessed on: 8 November 2017, Accessed from:
https://hernowo1.wordpress.com/seven-basic-tools-of-quality/the-check-sheet/