Total Quality Management Strategies at Tesco Plc: A Case Study Report

This report provides an in-depth analysis of Total Quality Management (TQM) techniques employed by Tesco. It begins with a company overview, highlighting Tesco's origins and its position as a leading UK retailer. The report then delves into the specific TQM tools used, such as customer-based strategies, statistical process control, and management-based rewards, along with the implementation methods, including quality assurance and audits. The success of TQM at Tesco is examined, emphasizing its impact on customer satisfaction, brand image, and operational efficiency. The report also addresses how Tesco managed organizational changes related to TQM implementation, including employee training and process adjustments. The Plan-Do-Check-Act (PDCA) cycle is highlighted as a key tool for continuous improvement, leading to cost reduction and innovation within the company. Overall, the report showcases how TQM has been instrumental in Tesco's success, enabling the company to achieve its quality standards and maintain a competitive edge in the market.

Running Head: Total Quality Management
Total Quality Management
Tesco Plc.

Total Quality Management 1
Contents
Introduction.................................................................................................................................................1
Company Overview.....................................................................................................................................1
TQM tool used by Tesco..............................................................................................................................1
Implementation method of TQM tool used in organization........................................................................2
Success of TQM in the company Tesco........................................................................................................3
Change in organization................................................................................................................................4
Conclusion and Recommendation...............................................................................................................5
References...................................................................................................................................................6

Total Quality Management 2
Introduction
The purpose of this report is to provide a brief overview of the total quality management
techniques used in Tesco Company. The report talks about the quality management tool used in
the organization Tesco and its implementation in the company; further it also talks about the
success of the tool in the managerial activities of the organization and the ways with which the
organization dealt with the change. The details about the task are discussed below:
Company Overview
Tesco is a retail chain store based in UK; the company was originated in the year 1920 by Jack
Cohen. The merchandise and retail grocery store is now remarked as one of the biggest retail
store of UK. The public limited company earned revenue of 55,917 pounds in the previous year
and works with a large family of 476,000 employees. Thus it shall be noted that the company is
engaged in large scale workings due to which it requires to initiates activities in such a way that
the customer obtain greater satisfaction from the company (The Guardian 2017). Further the total
quality management tool used by Tesco and its implementation in the management is discussed
below:
TQM tool used by Tesco
The company used the total quality management techniques to improve the quality of their
products and services present in the target market. With the help of such techniques they earned
higher satisfaction of customers as this process eliminated the issues of the organization and
efficiently resolved them to gain better results. The manufacturing sector of the company was the
initial sector in which these tools and techniques were used to identify success, this further
followed by implementing the quality management techniques in services sector department of
the company as well. Many TQM strategies were used by the organization such as customer
based strategy, statistical process control, management based rewards structure etc. and many
tools were also implemented in the organization (Asiah Omar 2013). These tools helped the
company to survey about the demand of the products and services in the market and take
feedback from the client regarding the issues faces by them. Further in order to initiate
leadership, effective communication system was defined to empower the employees. Techniques
like process based technique; lead time reduction technique, quality assessment and
benchmarking techniques were also a part of the managerial system of the organization. All these
techniques became a part of the company which helped the organization to improve their
activities in the target market and gain competitive edge. Resulting to which, quality control
techniques were implemented in the organization so as to provide higher level of satisfaction to
customers (Chandra 2013).

Total Quality Management 3
Implementation method of TQM tool used in organization
Talking about the implementation of the TQM in Tesco it shall be noted that the company lays
great emphasis on the quality control of the products and services presented by them in the target
market. The company implemented the process with the use of quality assurance technique and
quality audit as well. Production and manufacture of quality product was the only aim and
objective of the management of the company. Further, for the purpose of initiation of such
techniques various strategies were utilized by the organization like training and development of
skilled labour, improvement of the objective of the organization, proper quality check by the
managerial team etc. In accordance to which the company developed a set of standards and
policies on the basis of which quality control process was followed in the organization (Fernie,
and Sparks 2014). The policies are discussed below:
 Meeting the customer needs was the topmost priority of the employees of the
organization.
 The goods sold under the name of Tesco must go through quality check and always meet
the expectation of the clients to whom the company is serving the products. The
standards shall be marked by the higher management of the organization. Along with the
employees, the suppliers of the company were also inspected, defects sold by the them
was detected and eliminated before the product reaches to the customers
 Approval shall be taken before initiation of any policy in the manufacturing process.
 Speedy process completion was another target of the organization, for which process was,
implemented accordingly (Leng, Li, and Liang 2015).
 Safety and health of the employees and customers was maintained by the organization.
 The company organized the human resource management practices in such a way that
quality satisfaction is received along with the customer satisfaction as well. Training and
development of the employee program was initiated to upgrade the implementation
process of the employees.
Further for the quality control process of total quality management was implemented several
ways. Like, the company initially tested the products and carries various audits so as to check
that the output matches the standards assumed by the company. According to the results of the
audit the product is further passed to next level, like if the product is not made according to the
standards of the company then it will get replaced and the product which adequately fits to the
standards shall be carry forwarded to the next level. High degree of sensitivity, cleanliness and
hygiene is maintained in the products of Tesco. It shall be noted that the company has earned
goodwill in the market by providing such quality products at reasonable prices in the market. So,
in order to maintain that brand image in the market the management needs to maintain that
quality control on their products so that higher level of satisfaction is achieved by the company
and the customers as well (Walters, and Bhattacharjya 2013).

Total Quality Management 4
The quality control was implemented with the process of inspection and testing program. Both
the processes were carried before and after the production process. Firstly talking about the
quality control before the production process; the raw material used in the product was checked
and passed through standards and then applied in the production , also the supplementary
products were also used in manufacturing process were of high quality. Thus, it was noted that
no place the quality of the product was compromised. Later, before placing the product on the
selves, it was again tested and inspected that there is no alteration in the quality of the product or
no malicious product is left behind. Similar process was initiated after the product of final goods.
The final goods were tested and inspected on the basis of standards maintained by the
organization. Also the product was kept under strict control and surveillance of the management
at different stages (Wood, Coe, and Wrigley 2014).
Another issue which was marked in the organization was uniformity in the speed of the
production cycle of the organization. It shall be noted that only after the products are
manufactured from the outlet, other process of company can be initiated so if the production
takes time then it becomes difficult for the company to maintain speedy flow of products in the
market. Further in accordance of which, the company initiated the Plan-Do-Check-Act total
quality management technique. With the aid of this statistical tool the company eliminated their
issues and initiated effectiveness and efficiencies in their program. The works in such a way, that
initially the company developed a plan on the basis of which they trained their team to manage
accordingly (Oakland 2014). Later, the employees of the company aimed to implement the plan
in such a way that the goal and objectives defined in the TQM meets the outcomes. Later, the
plan is analyzed with the results of the work of the employees. If there is any deviation presents
the work done by employees, then it is looked accordingly and rectified. So, the process works in
such a way the initially plan is made then activities are initiated to implemented the plan after
which the outcomes are compared with the standards and lastly the deviations are rectified
accordingly. With the help of this technique, the company decreased the cost of production and
reduced the time taken in production cycle as well. Also the company was able to innate
innovation in the process of the organization with proper guidance. Such guidance helped the
employees to become efficient and improve the production process as well (Zink 2012).
Success of TQM in the company Tesco
All organizations use the total quality management techniques so as to gain better results for the
company. For the similar purpose, the total quality management techniques were implemented in
Tesco. Furthermore talking about the success of TQM in Tesco, it shall be noted that the
company successfully achieved their defined objectives with the help of the tools and techniques
of TQM. Brand of image of Tesco was created in the target market with the use of quality
control techniques in the organization. As quality was the major objective of the program, so it
became successful as the company achieved their quality standards defined. Also they gained
higher degree of customer satisfaction by providing such efficient products. Later, the quality

Total Quality Management 5
standards helped the company to analyze the useful raw material due to which they eliminated
the low quality material. With this effect the product became more qualitative and generation of
waste from the production process was reduced (Schilling, and Neubauer 2017).
Furthermore talking about the success of the total quality management techniques in the
organization it shall be noted that the quality control techniques helped the organization to
successfully provide quality product to the customers in the market at low prices. Resulting to
which the customers also gained more satisfaction and the products of Tesco became the first
priority of the customer due to which repeated sale was initiated. This helped the company to
provide more satisfaction to the employees as well. The employees of the company were
rewarded for their effective work and the success of the organization. Also the PDCA program
helped the company target specific sectors in the organization and aim to initiate efficiency in it.
Smaller target were easily achieved with the help of this process. Low production cost
management was initiated, innovation practices were developed and the company was able to
introduce the now product in market as well. The above mentioned activities in the organization
Tesco were achieved with the help of plan do check act process only. Thus summarizing the
above statement it shall be noted that company earned better control and gained more efficiency
in their internal program with the help of total quality management techniques implementation in
the organization (Bloomberg 2017).
Change in organization
The process of change in the organization was dealt in a positive manner. Talking about the
activities initiated in the organization before the implementation, it shall be noted that there was
no quality work initiated in the organization. The employees used to work but they were not
motivated enough or no proper guidance was issued to the employees on the basis of which they
have to work. Due to this process the company was unable to achieve the desired objectives in
the target market neither they were able to gain the competitive advantage in the target market.
But with the initiation of total quality management tools and techniques (quality control and
PDCA) the company efficiently achieved their targets and gained topmost market position in the
target market (Gidey, et. al., 2014).
Further at the initial level it was tough for the organization to implement the quality control
techniques in the organization as the employees of the company were not adequately qualified to
apply such techniques in the organization. Thus, initially the management trained the human
resource of the organization according to the demand of the process. They taught the employees
the process and its implementation plan and the aim and objective of the organization. Then
gradually the quality control techniques were implemented in the organization, the employees
became more attentive to check the quality of the products according to the standards and rectify
them. Also the supervisors of the organization segregated the authority and responsibilities to the
team managers in the different sectors of the organization. Due to this process every employee

Total Quality Management 6
worked carefully make less mistake and work in a better way so as to avoid complications. Thus
in this way the organization successfully dealt with the changes (Mitra 2016).
Conclusion and Recommendation
Thus, in the limelight of above mentioned events it shall be noted that the organization Tesco
successfully implemented the total quality management techniques in the organization to gain the
competitive edge in the target market. The quality control technique successfully helped the
organization in improving the quality of products served in the organization. Also the plan-do-
check-act tool helped the organization in reducing the production cost and using innovative
techniques in the production process of the organization. Thus it shall be noted that the company
gained the competitive edge in the target market with the help of this process. Lastly, this process
also helped the company in initiating the process of decentralization which reduced the stress of
many employees in the organization and increased the satisfaction level of employees along with
the customers present in the market. But in every organization there is scope of improvement.
Further, the below discussed are the recommendations given o the organization Tesco with the
help of which the company can maximize their profits in the target market.
Thus it is recommended to the company that they shall aim to initiate uniformity in all the
production process of the organization along with quality. While focusing on the quality, it
becomes difficult for manufacturing department to produce products on time due to the products
reaches late to the customer. Resulting to which, this delays cause dissatisfaction among
employees. Thus, the organization shall plan to complete the production cycle in a specified time
and they shall work on it so as to eliminate the problems. But quality shall not be compromised
for the speedy production cycle; so for this purpose the employees decide a time under which
they shall aim to complete the cycle and work accordingly. Further after the completion of one
cycle the time shall be noted and checked with the standard time; if there is difference in time
then the company shall look at the places where it takes more time by employees and aim to
rectify it so as to achieve the planned objective. Thus, if such recommendations are applied in the
organization then company will earn higher profit by eliminating competition from the market
(Bon, and Mustafa 2013).
Further if the organization, make use of the above mentioned recommendation techniques in the
organization then the organization will earn potential benefits. Professionalism will
automatically develop with the initiation of the PDCA process as all the employees will focus on
their work only. They will be held liable for their work due to which they will only focus on their
work and develop professionalism in organization. Also the demand will adequately meet the
supply in the market, with increment in the speed of the production cycle; the products will
quickly get supplied in the market. This will subsequently increase the satisfaction level of
customers as well. Employees will also earn reward with the increase in the profits of the
company (Prashar 2017).

Total Quality Management 7
References
Asiah Omar, N., Aniza Che Wel, C., Abd Aziz, N. and Shah Alam, S., 2013. Investigating
the structural relationship between loyalty programme service quality, satisfaction and
loyalty for retail loyalty programmes: evidence from Malaysia. Measuring Business
Excellence, 17(1), pp.33-50.
Bloomberg. 2017. Tesco’s. Viewed on November 24, 2017 from <
https://www.bloomberg.com/profiles/companies/9352001Z:LN-tesco's>
Bon, A.T. and Mustafa, E.M., 2013. Impact of total quality management on innovation in
service organizations: Literature review and new conceptual framework. Procedia
Engineering, 53, pp.516-529.
Chandra, P.V., 2013. A Study on Implementation of Total Quality Management in
Businesses. International journal of engineering science and innovative technology (ijesit)
volume, 2, pp.440-446.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan Page Publishers.
Gidey, E., Jilcha, K., Beshah, B. and Kitaw, D., 2014. The plan-do-check-act cycle of value
addition. Industrial Engineering & Management, 3(124), pp.2169-0316.
Leng, M., Li, Z. and Liang, L., 2015. Implications for the Role of Retailers in Quality
Assurance. Production and operations management.
Mitra, A., 2016. Fundamentals of quality control and improvement. John Wiley & Sons.
Oakland, J.S., 2014. Total quality management and operational excellence: text with cases.
Routledge.
Prashar, A., 2017. Adopting PDCA (Plan-Do-Check-Act) cycle for energy optimization in
energy-intensive SMEs. Journal of Cleaner Production, 145, pp.277-293.
Schilling, E.G. and Neubauer, D.V., 2017. Acceptance sampling in quality control. CRC
Press.
The Guardian, 2017. Company profile for Tesco. Viewed on November 24, 2017 from
https://www.theguardian.com/sustainable-business/profile-tesco
Walters, D. and Bhattacharjya, J., 2013. Aligning marketing and operations for more
effective and efficient ‘total operations’. International Journal of Logistics Economics and
Globalisation, 5(2), pp.94-107.

Total Quality Management 8
Wood, S., Coe, N.M. and Wrigley, N., 2014. Multi-scalar localization and capability
transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional
Studies, pp.1-21.
Zink, K.J., 2012. Total Quality Management as a holistic management concept: the European
model for business excellence. Springer Science & Business Media.