6.1 Input-Process-Output 10
6.2 Fishbone Diagram 10
6.3 Flow Process 11
- Introduction
Tesco was found by Jack Cohen in 1919 it opened its first store in 1929 in , , (Tesco plc). Currently Tesco is listed on the FTSE100 which a share index showing the top 100 capitalized firms in the UK listed on the London Stock Exchange. Tesco's mission is “Our core purpose to create value for customers to earn their lifetime loyalty (Tesco plc).” This statement clearly states its values and what Tesco believes in to have a successful business. Tesco is diverse both geographically and diversified in too many areas such has electronics, clothing, insurance, banking, networking, petrol, etc. Tesco has 5 types of stores depending upon their size and products sold as well as location providing convenience for customers. Using secondary research methods to conduct this report, the report will enable us to explain and evaluate the operation functions as well as that then concluding and recommending ways in which it could improve.
2.0 Main Body
2.1 Quality
Quality has various definitions one being it is providing products/services that are fit for purpose (Dictionary). Aspects of quality are design, conformance and operational quality. Quality is important to Tesco because it improves profitability, and increases effectiveness for the organization. Tesco offer products that are of high quality that only which is why its sales are up every year. It makes more than 1bn of sales a week (Guardian, 2009) If Tesco sold products which were of poor quality it will have consequences which are internal and external costs and also it would impact their reputation hence. As long as Tesco continue to maintain its product quality it will keep its consumer’s happy encouraging repeat purchases, however, Tesco need to continue to monitor its products to ensure quality.
Tesco measures quality at various points of its production reason being it needs to cut out products/services which fall below their set standards. Tesco maintains quality by having systems in place such as having quality control inspectors. Processes such as ‘Would I Buy It’ are employed which empowers anyone involved with the product from harvesting to packaging then reject any products which fall below specification (Tesco Quality). There are quality standards set out which Tesco follow to ensure quality. Quality for Tesco means an ongoing structured approach to providing 100% customers satisfaction via error free, waste and accident free operation. Tesco have two types of quality products Tesco Value and Tesco finest products both are quality but Tesco finest costs more, meeting everyone’s budget.
ISO9000 series is an excellent quality model which is used to create a culture of excellence and continuous improvement. (, ,, 1995) Tesco do not use any particular system of standards such as ISO9000 or Total Quality Management (TQM). They set their own standards through product specification and detailed analytical specifications and codes of practice. According to my research Tesco don’t have any of these systems but whatever they do is good for them as they tend to serve quality products in its own standards to produce and sell its products.
2.4 Layout and Location
There are three decisions to layout and location firstly is the type of process required these are Project process, Jobbing process, Batch process, Mass process, Continuous process and Professional services, Service shops, Mass services. Secondly is the type of layout, there are four types of layouts fixed position layout, Process layout, Cell layout, Product layout. Finally the last decision is the design of layout, is the physical position of all transforming resources. Process layout includes Travel Charts, Journeys between Chart, Proximity Priorities Table, Relationship Charts and Diagrams. (Rowbotham, 2011)
Tesco mainly use batch production reason being it produces similar goods in a batch, they are made for every consumer not specific to an individual consumer and batches are processed regularly. Batch process has stages passing from one stage to another; each stage is planned extensively at Tesco. Tesco have computerized scheduling systems. Tesco stores have a cellar layout. This layout group’s product together for instance one side may have clothing the other section may have perfume and jewelry. Tesco stores have similar layouts but most stores contrast. Tesco has several stores from Tesco extra, Tesco express etc. When it comes to choosing a location for Tesco they consider many factors like labor skills, land costs, business environment suitability of location, and convenience for customers. Tesco have the power and the money to do so and all their stores are conveniently located and have stores which cater for every customer.
3.0 Diagram Explanation – Quality
3.1 Input–Process-Output Diagram
Operations processes starts with a set of input resources which are than processed into outputs of goods and services which satisfy customer needs. This makes up the input-process-output model. (Slack N. et al, 2004). Using this model we can see Tesco sell their products to customers to try and meet their needs. This is a service which they offer to their customers. Appendix 1 shows a typical model for Tesco describing its process. Process takes place when there is an input from raw materials, components, staff, capital, time and then processed into outputs such as products or services. Tesco Production process is important as it changes inputs into outputs to sell and produce goods to meet consumer needs. Tesco carry out extensive market research to evaluate the success of a product. Once research has been conducted it goes through the production process. This increases the chance of success as Tesco are minimizing the cost of error. I wouldn’t recommend Tesco to adapt their methods instead they should continue to apply its existing methods it will continue to grow because its existing plans are working effectively.
3.2 Cause and Effect diagram
Cause and Effect diagram is sometimes called a fishbone diagram. It’s used to discover possible causes of a particular effect. The effect can be examined as normal or troublesome aspect of product or service. It’s a tool used to problem solve by generating possible causes which helps to identify major causes. Cause and Effect diagram shows causes and sub causes for instance in Appendix 2 we can see that to improve quality we may face problems. People may not have been trained to improve quality which may affect the quality improvement. The equipment may not be set up or maintained correctly to allow quality improvement. The environment has uncontrolled factors which may affect quality improvement whatever the cause and sub cause it helps to identify potential problems that may occur. To overcome these problems they could train employees to use equipment properly. However some factors are beyond control.
3.3 Flow Process
Flow-process diagram commonly used to indicate the general flow of a plan. Tesco process starts off by farmers picking up fruit/vegetables which are then process and cleaned which then are checked which are worth going forward and which are not. Then they are inspected by inspector to check where they meet quality standards set by Tesco. Then they are packed and delivered to stores to be shelved and sold onto customers.
4.0 Conclusion and Recommendation
4.1 Conclusions
My secondary research indicates that Tesco consider a lot when it comes to quality for consumers it has several processes in place to test quality at each stage of production. Tesco Clearly shows its values and what it knows to have a successful business in its mission statement which is, “Our core purpose to create value for customers to earn their lifetime loyalty (Tesco plc).” As mentioned before Tesco provides quality foods to all customers which meets everyone’s needs. They set their own standards through product specification and detailed analytical specifications and codes of practice. It uses Tesco Value and Tesco finest to cater for everyone. Layout is important to Tesco as it considers a lot about customers and providing convenience for them. When it comes to choosing a location for Tesco they consider many factors like labor skills, land costs, transportation costs, image of the location and convenience for customers. Overall the word restriction meant the report is very brief and more research is needed.
4.2 Recommendations
- I would recommend Tesco to check the quality of food on the shelf’s more regularly for instance once every day as certain food are perishable which have a short expiry date this will help to ensure freshness and quality.
- Tesco need to consider prevention costs as they reduce the costs of errors in quality. Prevention costs purpose is to reduce the number of defects.
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Tesco should use strategies like statistical process control to reduce defects or other techniques like quality engineering, training, and a variety of tools from . This will Increase morale as employees are motivated by extra responsibility.
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Tesco need to consider implementing TQM as it Improves reputation it means Tesco won’t have faults in their products therefore less returns from customers. It will help Improve staff morale, improved communication is very important these factors will Tesco to improve its productivity and maximize profits.
- Tesco don’t use any quality standard methods, I would recommend Tesco to adapt to ISO9000 method because it will increase its marketability, better management, improved customer satisfaction and improved internal communication as it gives consumers assurance that quality is there.
- Tesco should make all its stores in similar layout because it makes it predictable for customers to make it convenient for them. Along with this it helps those that are quick shoppers as it saves time for them, they grab what they want and go.
- Conducting more Methods to enhance the current report.
5.0 References:
Dictionary (n.d.) Quality [WWW] [Accessed 01/08/11]
Julia, F, (2009) Tesco sales top £1bn a week [WWW] Guardian
[Accessed 01/08/11]
Rowbotham, F. 2005, Layout and Location [lecture] Leicester: DeMontfort University
Slack N. et al, (2004), Operation Management, FT Prentice Hall
Tesco (2006) Tesco Quality [WWW] [Accessed 03/08/11]
Tescopoly (n.d.) Tesco Worldwide [WWW] [Accessed 02/08/11]
Tesco PLC (n.d.) Our History [WWW] [Accessed 02/08/11]
Tesco PLC (n.d.) Tesco [WWW] http://www.tescoplc.com [Accessed 01/08/11]
, V and , A.R.T. and , B.G. (1995) Business Process Management Journal. ISO 9000 series registration to business excellence: the migratory path. pp 417 - 428
6.0 Appendices
6.1 Input–Process-Output Diagram
6.2 Cause-and-Effect Diagram
6.3 Flow-Process Diagram
