Total Quality Management: Benchmarking Implementation at Sainsbury's

This report provides a comprehensive overview of benchmarking within Sainsbury's, a major UK supermarket chain. It begins with an introduction to Total Quality Management (TQM) and the necessity of benchmarking in a competitive market. The report details the steps involved in implementing benchmarking, including determining procedures, identifying organizations for comparison, data collection and analysis, gap analysis, trend identification, outcome revelation, consensus on goals, action plan establishment, plan implementation, and benchmark recalibration. It further explores the difficulties Sainsbury's might face during benchmarking, such as employee resistance, resource constraints, analytical challenges, granularity issues, and ineffective utilization. The report concludes with recommendations to overcome these challenges and improve performance through benchmarking, emphasizing the importance of strategic planning and a supportive corporate culture. The report highlights the benefits of benchmarking, including improved performance, product quality, new paradigms, change of focus, monitoring capabilities, and increased sales and profits, making it a valuable resource for understanding and implementing benchmarking strategies in the retail sector.

TOTAL QUALITY
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
NEED OF IMPLEMENTING BENCHMARKING IN SAINSBURY'S........................................1
STEPS TO IMPLEMENT BENCHMARKING .............................................................................3
DIFFICULTIES FACED.................................................................................................................4
RECOMMENDATIONS.................................................................................................................5
APPENDIX......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Total quality management can be defined as the principle which seeks to ensure that all
the members of an organisation are committed towards maintaining high standards of work in
each and every operation of the business. This approach focuses on long term success by
ensuring customer satisfaction (Gutiérrez, Torres and Molina, 2010). The present assignment
focuses on the importance of benchmarking process in Sainsbury's and the steps undertaken by
the organisation for its implementation. Sainsbury's is one of the largest super markets chains in
UK which was founded by John James Sainsbury in 1869. Benchmarking is the process of
measuring quality of organisation's policies, programs, strategies, products etc. and comparing
them with standard measurements or competitors. Benchmarking helps in determining areas of
improvement, analysing methods for achieving high level performance and using this
information for performance improvement. The report describes the steps that the company
could undertake for implementation of benchmarking. Difficulties faced in doing so has also
been discussed and recommendations are provided in the report.
NEED OF IMPLEMENTING BENCHMARKING IN SAINSBURY'S
Benchmarking process involves making comparison of one's business performance and
practices with that of industry's best practices (Hoang, Igel and Laosirihongthong, 2010). The
main objective of benchmarking is to understand the current position of the business and
identification of areas and ways for improvement. Sainsbury's is one of the largest supermarkets
chain in UK and is facing tough competition from Asda, Tesco plc and WM Morrison
supermarket in the industry. Thus, it is required to follow TQM practices which would enable it
to survive in the evolving technological market place and face competition from such large
business groups. In today's business scenario, customer satisfaction has become imperative to
sustain and survive in the market (Hoonakker, Carayon and Loushine, 2010). The business who
focuses on satisfying its customers and fulfils the needs and expectations of the customers go
long way. Customers are the king of market as they have number of options and alternatives
available, if they are not satisfied with the products and services of one organisation, they can
easily switch over to another brand. Thus, to ensure brand loyalty and long term commitment of
customers, it is must to meet their needs and demands. All these reasons have necessitated the
need of implementing total quality management practices such as benchmarking in the cited
organisation.
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Benchmarking is the process designed to obtain a measure i.e. a benchmark (Sadikoglu and
Zehir, 2010). It involves looking outwards and identifying best practices that are performed by
competitors or other organisation in the industry. It helps to understand the current position of
the Sainsbury's and identify areas where improvement is needed. The performance of the
organisation is compared with the standard performance to ascertain the achievement of the
company as against its competitors (Sharma, 2010). Benchmarking enables to understand the
processes behind excellent performances. Proper and effective implementation of this process
helps the business to improve performance in crucial functions of the organisation and thus,
attaining success of the business.
The company would be interested benchmarking as it offers many advantages. Some of
these are as follows:
 Improves performance – Benchmarking sets competition among the employees as well
as among oneself. This in turn results in increased performances of the workers. Best
practices and potentialities of the employees are identified by this process. It helps to
identify the gap between actual potential and the expected potential. This provides the
understanding of scope and ways for individual improvement.
 Improve product quality – This process may also help in improving the quality of the
goods and services offered by the company (Alenius, Lind and Strömsten, 2015). Once
the quality offered is identified then it can be compared to that offered by other
companies so that they are able to give tough competition.
 New paradigms – For success it is important to work out of comfort zone because great
things never comes from comfort zones. Benchmarking forces the workers as well as the
organisations to come out of comfort zones which opens new opportunities for them.
 Change of focus – Benchmarking focuses on changes in the business strategies and
environment and makes it easier to adopt changes comfortably.
 Monitoring – To analyse the problems it is important to monitor the performances which
could be easily done by benchmarking the performances. Setting of standards makes it
easy to identify problems and their possible solutions.
 Increase sales and profits – The functionalities, operations, services and goods are
improved by the procedure of benchmarking. This in turn helps the company to increase
its sales and profits.
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STEPS TO IMPLEMENT BENCHMARKING
There are different steps involved in implementation of benchmarking (Booth, 2013).
These steps are as follows -
Step 1 : Determination of procedures which are to be benchmarked - This step involves
identifying all the procedures and purposes including short term and long term goals. This also
includes identification of level of change, making a flowchart of the processes, measurement of
critical performances etc.
Step 2 : Determination of organisations which are to be benchmarked – This step involves
determination of the firms which are to be studied for benchmarking. In this identification of
which organisation would be best suited for partnership, which firms are the best to be competed
with and benchmarked for, whose systems are comparable and whose are not etc. is done. Also,
organisations cooperation with which would be the best beneficial is determined.
Step 3 : Collection of data – In this step development of plan to collect data from the targeted
sources is done. Different sites are visited and report is been prepared accordingly. The steps
involve gathering of correct information which would aid the organisation to improve the
performances based on the gathered data. Firstly, the simplest data sources are identified, then
data with most value and benefits are figured out. It should be kept in mind that time and cost of
data collection should be low.
Step 4 : Analysis of the gaps – This step follows the analysis of the gathered data. This data is
analysed and compared to the expected data. The actual performance and the expected
performance determines the gap and the degree with which the cited firm is lacking the expected
performance (Acha, Du and Shah, 2016). Comparison is done in this step to determine the gap.
Step 5 : Determination of upcoming trends – The trends and technologies changes very fast
with the time. The future trends are expected and analysed in this step. This will involve the
analysis of past performances of the organisation and the competitors and forecast the changes in
the cited firm which would be needed to improve the performance and efficiency.
Step 6 : Reveal outcomes and sell the process – This step involves communication of the results
of benchmarking to the audiences and motivate them to undertake and adapt changes. Correct
implementation of this step is necessary as it has a great impact on the audience as well as on the
staff members. Audience to be addressed is selected in this step and report is written.
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Step 7 : Accomplishment of consensus on reviewed goals – Revising of the company's goals
takes place in this step in order to reduce the gap between expected performance and actual
performance. Goals are reviewed and necessary changes are made in the operations. The impact
of the revised goals is also analysed and the commitment to the specific goals by the
management is determined.
Step 8 : Establishment of action plan – Step by step plan to achieve goals and targets is
designed in this step. Breakdown of all the steps takes place and proper action plan is created for
each and every operation.
Step 9 : Implementation of plans and monitoring of results – The action plan so created is
implemented and the outcomes are monitored. Accordingly changes are made. Monitoring can
be done on daily basis or at specific frequent time duration.
Step 10 : Recalibration of benchmarks – This step involves continuous evaluation of the
benchmarked practices. Reinstitution of the benchmarked procedures takes place in this step
whenever needed. Correct implementation of the last step ensures correct implementation of
benchmarking and its outcomes (Steps to Better Benchmarking, 2017).
DIFFICULTIES FACED
Sainsburry's is an organisation that has acquired brand value in the past few years.
Considered amongst the top five strongest retail sector companies, there are certain challenges or
difficulties which can arise with implementation of benchmarking. This technique is a part of the
total quality management which aims to improve performance of organisation by setting specific
standards and policies regarding quality of products and services. In order to maintain customer
share and expand the profit margins, Sainsburry has to prepare itself for the following challenges
in context of benchmarking.
Resistance from employees: There can be situations in the company wherein employees
won't cooperate or would show some resistance regarding the quality issues or standards
professed. This can be threatening in terms of business performance and productivity (Zhu,
2014). Prolonged issues in co-operation can significantly effect productivity and as a result aims
and objectives will not be met.
Resources: Sainsburry requires to maintain a smooth flow in production and distribution.
This means there is continuous requirement of basic resources which are required for
manufacturing of products. Benchmarking often brings in very high standards and quality
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parameters that require resources which are not easily available. In such situations, there is a
difficulty being addressed by the company. Resource constraints can be in the form of time,
finance or human skills and knowledge (Boshyk, 2016).
Analysation difficulties: Businesses require continuous analytical data which has to be
interpreted for gaining conscience regarding status of competition or marketing structure. This
implies that company faces difficulties in analysing the current situations which further
contributes to ineffective decision making. Moreover, there are certain challenges regarding
comparison of data with different subjects.
Granularity: Benchmarking often provides vague perception to business organisations
especially when specific information is required. The standards either become too general or too
specific with the context. Operational excellence is affected due top this fact and entire
improvement process is hindered. It is important to have clarity regarding what steps need to be
taken for improving the quality of products and services (McCormack and Johnson, 2016). If
these facts are not communicated well, then organisation experiences definite chaos or
mismanagement.
Ineffective utilisation: The strategy or path that has been used for utilising concepts of
benchmarking is very significant for the company. Sainsburry's has to develop a technique which
is helpful in extracting maximum benefits from benchmarking in terms of increased quality and
enhanced performance. If a strategy or plan is not correctly implemented then ineffective
utilisation is faced as a difficulty by the company with respect to benchmarking.
Aforementioned difficulties which can come up within the organisation during
implementation of benchmarking can be handled effectively if there is proper strategic planning.
The impact of these challenges can be reduced by adopting to alternative methods of continuous
improvements and organisational excellence. Sainsburry can witness significant growth with
benchmarking only if corporate culture and the business environment of company supports its
related policies and decisions.
RECOMMENDATIONS
Companies use benchmarking as a way to compare key metrics to other businesses in the
industry. This allows companies to see how well they are performing and identify ways they can
become more competitive in the industry. Benchmarking is the process of measuring products,
services, and processes against those of organizations known to be leaders in one or more aspects
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of their operations. Benchmarking provides necessary insights to help you understand how your
organization compares with similar organizations, even if they are in a different business or have
a different group of customers. Benchmarking occurs across all types of companies, including
private, public, nonprofit, and for-profit, as well as industries e.g..technology, education, and
manufacturing. Many companies have positions or offices in the company that are in charge of
benchmarking. Bench-marking are of two types- Technical &competitive benchmarking.
Benchmark that Sainsbury's publishes is the underlying operating profit margin from its
retailing activities, which was 3.5 per cent in the latest year. This has risen from 2.5 per cent in
2006/07, which is a great achievement. But it is not a quick or simple process tool. Before
undertaking a benchmarking opportunity, it is important to have a through accepting company's
guidelines. Benchmarking focuses on best practices, strives for continuous improvement, bound
to share information, have to maintain a competitive area, adapting based on customer needs
after examination of the best. Obtain support and approval from the higher team lead, document
benchmarking objectives and scope, time and resources can be wasted collecting data, projects
may lack focus and purpose, to determine the gap of current performance.
There is higher risk if metrics doesn't put in writing, being disagree o what to benchmark
in understanding gaps of low performance, no data plan to be prepared, screening takes more
than 30 minute and not having the skills and knowledge of how to contact and screen companies.
Decides if gathered information meets original objectives and goals, very low self esteem and
lack of communication power to discuss and ensure continuous support, having proper
knowledge to when to update and re calibrate. Assessing current performance and long term
plans, shaping the strategic plan and institutionalizing learning, reporting and planning with data
collection. Identifying world class levels in key business practices.
Sainsburry should monitor the benchmarking on a regular basis as it will help to review
whether the set standards are appropriate or net. Also, it should benchmark differently for
different people. It could also keep a reward or appreciation for those who achieves benchmarks.
This will motivate them and boost up the confidence of the employees. It could also promote the
employees who constantly achieves benchmarks and perform better every time. The cited
company should check whether the data gathered is correct or not and should ensure that all the
sources of information are valid and correct so that accordingly proper strategies are made. The
company must be careful while deciding benchmarks so that they are attainable and specific.
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CONCLUSION
The report reveals that benchmarking is one of the most efficient method of total quality
management for the company. The report suggests that Sainsburry which is one of the largest
market chains can also practice benchmarking to improve its performances as well as increase
sales and profits. The report provides steps following which the company can implement the
benchmarking procedures. There are many difficulties faced by the company while
implementing these steps which are also identified in the report. Few recommendations are
provided applying which the company could overcome the difficulties and improve the
efficiency and profitability by applying benchmarking.
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APPENDIX
The above diagram depicts the basic cyclic process of benchmarking. Total quality
management aspects can be fulfilled through this technique when implemented effectively in the
company. Every single step in this complete process is essential because of their
interconnectivity.
Step 1: Planning
A strategic plan has to be developed for implementing the benchmarking principles in the
actual practise of production and manufacturing in the company.
Step 2: Collection of data
The data relevant to the process has to be collected from different sources.
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Illustration 1: Benchmarking process

Step 3: Analysis of data
The collected data has to be analysed for gaining an understanding and producing an
estimate whether implementation of benchmarking will help the company or not.
Step 4: Implementation
After collecting information from different sources and producing relevant analysis, the
planned strategy must be implemented.
Step 5: Monitoring
Evaluation and monitoring helps in reducing the unfair or unethical practises which can
take place in the company for hindering benchmarking.
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REFERENCES
Books and Journals
Gutiérrez, L. J. G., Torres, I. T. and Molina, V. B., 2010. Quality management initiatives in
Europe: An empirical analysis according to their structural elements. Total Quality
Management. 21(6). pp.577-601.
Hoang, D. T., Igel, B. and Laosirihongthong, T., 2010. Total quality management (TQM)
strategy and organisational characteristics: Evidence from a recent WTO member. Total
quality management. 21(9). pp.931-951.
Hoonakker, P., Carayon, P. and Loushine, T., 2010. Barriers and benefits of quality management
in the construction industry: An empirical study. Total Quality Management. 21(9).
pp.953-969.
Sadikoglu, E. and Zehir, C., 2010. Investigating the effects of innovation and employee
performance on the relationship between total quality management practices and firm
performance: An empirical study of Turkish firms. International Journal of Production
Economics. 127(1). pp.13-26.
Sharma, R. B., 2010. Total Quality Management. Lulu. Com.
Alenius, E., Lind, J. and Strömsten, T., 2015. The role of open book accounting in a supplier
network: Creating and managing interdependencies across company boundaries.
Industrial Marketing Management. 45. pp.195-206.
Booth, S., 2013. Utilising Benchmarking to Inform Decision-Making at the Institutional Level: A
Research-Informed Process. Journal of Institutional Research. 18(1). pp.1-12.
Acha, S., Du, Y. and Shah, N., 2016. Enhancing energy efficiency in supermarket refrigeration
systems through a robust energy performance indicator. International Journal of
Refrigeration. 64. pp.40-50.
Zhu, J., 2014. Quantitative models for performance evaluation and benchmarking: data
envelopment analysis with spreadsheets (Vol. 213). Springer.
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
McCormack, K.P. and Johnson, W.C., 2016. Supply chain networks and business process
orientation: advanced strategies and best practices. CRC Press.
Online
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2017. Steps to Better Benchmarking. [Online]. Available
through :<http://businessfinancemag.com/business-performance-management/7-steps-better-
benchmarking-0>. Accessed on [1st April, 2017].
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