Operations Management at Tescos - The Final Report
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Operations Management The Final Report Word Count: 1550 Executive Summary Our core purpose to create value for customers to earn their lifetime loyalty and provide quality (Tesco plc). Clearly states its values and what Tesco believes in to have a successful business; it opened its first stores in 1929 founded by Jack Cohen. The report explains and evaluates the operation functions such as Quality and what Tesco do to maintain quality, Tesco set their own standards for quality. They haven't yet implemented a quality system such as Total Quality Management and IS0900. There are four types of layout but Tesco is mainly cornered with Cell Layout it groups similar departments together; most stores are similar laid out however some do contrast. Tesco is influenced by a variety of factors when it comes to location. Three appendices have been attached they include input-process-output Diagram, Flow process Diagram and Cause and Effect diagram, Illustrating a quality problem. Conclusions have been given about how well they have done even without a quality system in place but I have recommended if they do that it would greatly benefit them overall. Contents 1.0 Introduction to Tesco 4 2.0 Main Body 2.1 Quality and ISO9000 5 2.2 Layout and Location 6 3.0 Diagram Explanation 3.1 Input-Process-Output 7 3.2 Fishbone Diagram 7 3.3 Flow Process 7 4.0 Conclusion and Recommendations 4.1 Conclusion 8 4.2 Recommendations 8 5.0 References 9 6.0 Appendix 6.1 Input-Process-Output 10 6.2 Fishbone Diagram 10 6.3 Flow Process 11
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.
4.2 Recommendations 1. 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. 2. 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. 3. Tesco should use strategies like statistical process control to reduce defects or other techniques like quality engineering, training, and a variety of tools from total quality management (TQM). This will Increase morale as employees are motivated by extra responsibility. 4. 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. 5. 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. 6. 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. 7. Conducting more Methods to enhance the current report. 5.
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