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INTRODUCTION
I choose TESCO as a case study for my Strategic Quality And System
Management report because i have actually done my shopping in whole
lots of shops in UK,but amongst all these highly recognised shops,TESCO
still stands out with regards to their high strategic quality and system
management and customer friendly approach.
Further write-ups shows how and why TESCO's organisational system is
always at its best to satisfy customers.
EXPLAINING THE IMPORTANCE OF EFFECTIVE OPERATIONS
MANAGEMENT IN ACHIEVING ORGANISATIONAL OBJECTIVES.
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OPERATIONAL MANAGEMENT is the innovative ways of creating and the
management of products and services to achieve quality input into the
required output to the satisfaction of customers needs and wants.
An innovative organisation is ready for change,and to make positive
changes,so as to be ahead of competition. For Operations management
to reach its target,high quality and ways of enhancing the growth and
development of the companys goods and services still remains their
paramount goal.
Operations Management deals with the theoretical practical
introduction to the field of operation .For operation management to
reach it,s target,high quality product products and services remains
their highest goal,and for this to be achieved,the organisation has to be
innovative and ready for positive changes so as to be ahead of
competition.
Operations management has a great impact to play in achieving
organizational objectives in as much as it is effective.It can upgrade
productivity,which leads to improvement in the organisations financial
health.It can as well aid organisations to achieve customerscompetitive
priorities.
The higher the productivity ratio of output to input,the greater the
efficiency.
Operations Management is tagged effective in the sence that it designs
and operates processes that transforms inputs into services or products
to give the organisation a sustainable competitive advantage.Operation
management has been recognized to be so important because its an
important factor in a companys economic growth.Invariably,Operation
management is a key element in the improvement and productivity in
businesses around the world,of which without Effective Operations
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Management,the organisation,customers and the society at large will be
at great loss.It is effective In the day to day running of business so as to
meet the organisations goals.
The strategic roles of operations includes:
Quality(high product performance)
Cost Efficiency(low product price)
Dependability(reliability,prompt delivery of demand or request to
customers)
Flexibility(rapid response with newly introduced products or changes).
1.2 EVALUATING THE SUCCESS OF EXISTING OPERATIONS
MANAGEMENT PROCESSES IN MEETING TESCOS OVERALL STRATEGIC
MANAGEMENT OBJECTIVES.
Tesco is generally known to be a successful international retailer,its rapid
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growth has really proven back in the years and recent times just like its
managerial structure has been steadfast due to its effective operations
management processes.Tesco is ranked one of the largest food retailers
in the world,having many branches and outlets world-wide,particularly
in united kingdom.
At every point in time,Tescos quality control is always at its
best,developing a customer-driven operations strategy at every point in
time and giving customers maximum satisfaction to patronize
them.Tescos successful existing operations management processes in
meeting its overall strategic management objectives has todo with its
strength in determining the market and its unfailing responses to
change in the business and socioeconomic environment.It provides the
resources to develop its core core competencies and core processes and
identifies the strategy to employ in international markets.Tescos great
plans and supervision of products,services and supply chains has to do
with the gaining,growth and use of the right and required resources to
bring the goods and services its customers want.This makes them highly
effective and efficient at every point in time as they have succeeded in
gaining the trust of the customers.
Tesco.com is known to be the largest online supermarket in
uk,Meanwhile,the success of existing operations management processes
to Tescos overall strategic management objectives has its ups and
down but the advantages stands out because,it brings about the
following;
Growth in production rate.
Uniformity and togetherness as a team.
Good customer and supplier relationship.
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Increase in output.
The trends and challenges it encounter include the
The steady need for productivity improvement and upgrade
Constant technology change
Global competitiveness
Capital intensiveness
Environmental,Ethical and diversity issues.
So once choices about products and services are made,boundaries for
meeting the other operations objectives are set.The approach why the
success of existing operations management objectives is met is because
the operations strategies is consistent and Tesco is known for quality
products and services at every given time,and they are willing and have
the capability to change as business conditions change.This makes the
company successful and always stands firm even in unforeseen
challenges.
2.1 EXPLAINING THE IMPORTANCE OF EFFECTIVE QUALITY
MANAGEMENT IN ACHIEVING ORGANISATIONAL OBJECTIVES.
Effective Quality Management is defined as the system that determine
customers general satisfaction with a product or service.It involves high
levels of process performance and quality,which has to do with customer
satisfaction,employee involvement,and continuous improvement in
performance.When quality is considered in product and services of an
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organisation,the demand of such product and services will be high.The
goal of effective quality management is to create a high quality,high
performing product or services that meets and exceeds the expectations
of customers.
The importance of Effective Quality Management in achieving
organisation objectives include the following:
Product quality:quality products are always reliable and durable,the
higher the quality of organisations products and services,the higher the
demand for continuous use of such products and services to the
advantage of the organisation.Quality products speaks for itself and no
much pressure is needed to create awareness of such product to the
customers because they will be the one asking for it once they are
convinced with it.
Customer Satisfaction: quality management provides the methodology
to use to create the type of product the customer dsire.Both the internal
customers(employees) and the external customers(the public) are
satisfied when their expectations regarding a service or product has
been reached or exceeded.Their level of satisfaction is always
determinrd by the term Quality.
Reduced waste;when quality is been properly managed for a
production,the cost of inventory is been checkmated without incurring
waste.The JIT(Just-in-time INVENTORY SYSTEM HERE HELPS IN SUPPLIER
AND MANUFACTURER CLOSE RELATIONSHIP AND COMMUNICATION
FOR QUICK REPONSE TO CUSTOMERS.
Team work: team work is a collective contributions of employee that
reflects the joint efforts of all members for improved success and quality
of product. Employee involvement makes each employee accountable
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of product. Employee involvement makes each employee accountable
for success because the members have a common commitment that all
believe in and that relates individual priorities.The team should be a
problem-solving team,Special-purpose team,and self-managing team for
their mission to be accomplished.
Team work is a tactic that each department in an organisation holds
accountable to produce a quality product.This makes every department
important because the sales,finance,customer service,operations
department needs the assistance of one another to succeed,the balance
scorecard is introduced and used in this case.
Increase Revenue:Quality products make the organisation to stand out in
the industry.This makes the organisations to have much more
customers,and as well retain their old customers. QM program reduces
time for the productionof product and services because inefficient
processes are being removed,at the same time production is noted to
increase making the employee save time and the organisation to save
money.
To achieve organisational objectives,effective quality management is
crucial because it makes the production superior and standard and in
return customer satisfaction which eventually leads to customer
loyalty.Every business actually needs loyal customers that will come back
to the organisation no matter what to survive.
2.2.EVALUATING THE SUCCESS OF EXISTING QUALITY MANAGEMENT
PROCESSES IN MEETING TESCO'S OVERALL STRATEGIC MANAGEMENT
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PROCESSES IN MEETING TESCO'S OVERALL STRATEGIC MANAGEMENT
OBJECTIVES.
Tesco's overall strategic management can be defined according to
Johnson and scholes as the direction and scope of an organisation over
Health Safety and Environment(HSE):Tesco put safety first for both the maintenance and
protection of their products,retaining their customers and employee..Maintenance of
equipment reduces chances of breakdown thereby reducing unforseen expenses and risk
reduction by making provisions for features like fire drills.,emergency management training,fire
extinguisher,fire escape unit,PPC while in factories,alarm,lift.
The standards and means of incorperating QM include: Six Sigma,ISO 9000,TQM,Business
process re-engineering (BPR),Implementing and evaluating change,Planning,Identifying wider
implications of change with an organisation etc.
TQM: for continuous improvement
Implementing and Evaluating Change;change is constant,Moreover,changing to meet
customers' satisfaction is a good strategy to to the success of Tesco's organisation because
changes makes them learn more and upgrade on how best to improve their standard.In a
changed economy or demand,they are seen noe to be teken unaware because they are ever
ready for future challenges.
Six sigma is a methodology developed to achieve effectively zero defects for customers.The six
sigma approach in Tesco makes the success of Tesco business remarkable.It is a comprehensive
and flexible system for achieving,sustaining and maximizing business success performance and
quality.This drives at close understanding of customer needs,disciplined use of facts,data,and
statistical analysis and diligent attention to managing,improving and reinventing business
processes.
3.1 PLANING A STRATEGIC QUALITY CHANGE TO IMPROVE ORGANISATIONAL PERFORMANCE.
It has to do with the quality strategies needed to ensure overall performance improvement
gains.This is tied to key business process performance indicator in order to have real impact on
productivity and the bottom line.SQPP takes the business to the next level because you are left
withthe right directs to take and not unnecessary assumptions or trial and error.Quality
excellence begins with strategic quality planning.It is a process that quality departments,quality
managers and quality professionals undertake in their organisation to identify the 'right' quality
initiatives to best manage quality today and in future.The Strategic Quality Performance
Planning consists of 2 phases-The Research Phase and Strategic Phase.
RESEARCH PHASE
Gap Analysis;this is utilised by managers to compare the actual
performance with the expected performance in order to note
whether the goals are met or not,and if the resources are
effectively used.It involves two questions(where are we and
where do we want to be).This report aid managers to identify
problem's root and causes easily and as well how best to
manage,control and curb the problem.
Gaps are classified into 4 types;
-Customer-Operation Specification Gap;this is the gap between
what customers expect ,what is the outcome of the operations.
-The Concept -Specification Gap: cost is kept low here for
customers but use of low quality material do compromise the
quality of the product.
The Quality Specification-actual Gap: this is when there is a gap
between quality specified by the organisation and the actual
outcome of the operation.
-The Actual Quality-Communicated Image Gap:the gap
between the image marketed,or communicated to the
customer and the actual quality of the products and services.
To plan a SQC<we look at -are these the right strategy?do we
even know what the problem is that we are planning to fix?.
The following are the needed for the strategic quality change
plan to be achieved and effective;
Training : creating and sustaining a SQM committee,Strategic
thinking.
Organisation strategic review to rectify problems and solution
that will improve and develop the system/growth of the
organisation.In this case,you ask what have we used in the
production,was that successful or not,if not why,what do we do
to improve the likelihood of same problem occuring in future
and achieving our aim,this analysis helps to note the steps that
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and achieving our aim,this analysis helps to note the steps that
were mixed or that needs to be introduced and how best and
not best approach to re-introduce.
Engage Employees and gain their feed back to ensure their
continued commitment tonquality.
Identifying what qualityinitiatives and strategies have been
used in the past that are successful.
Getting feed back from external customers.
Bench Marking ;learning outside from your organisation what
other organisations are doing.this helps introduce new idea
that were unknown and never used for a quality product to be
attained.
STRATEGIC PH