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Operations Management

Importance of operations management in an Organization

Introduction to Operations Management

Operations management means generally, converting the input varieties into usable outputs by utilizing the physical procedures. The operations management process main aim is to make optimum use of available resources, develop products that perfectly meet the requirements of customers and effectively handing the procedures without having any chaos. The operations management responsibility is to make sure that company makes its production smoothly with no interruptions. Moreover, the decision making activity in an organization that involve designing, planning plus controlling of several aspects that create impact on operations in known as operations management. Due to some different service features, such as high customer contact, simultaneity, etc. the operations play a great role in varied service sectors. One such service organization where the operations management role is quite important is retail. In this regards, the below report is inculcating about importance of operations management in Tesco to attain organization objectives and effectiveness of its existing operations process. The discussion is followed by explanation of quality management, its planning, and resources required and adequate implementation in Tesco. The end session of paper is reflecting execution and monitoring of strategic quality change in Tesco along with its outcomes for the business. At last, the report is summarizing recommendation for Tesco to align its strategic quality change with corporate objectives for the success plus progress of business.

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Task 1

1.1 Importance of effective operations management in achieving organisational objectives

Operations management is an entire series of process that begins from services or products designing plus includes their development and supply to the final customers. Effective management of operations at Tesco ensure about adequate production of their retail items with its final distribution. Also, adequate operations management is related directly to overall gaols of company and if it not properly implemented than may influence the business profitability in long run. Hence, for achieving corporate objectives, there is a need arise for Tesco to appoint professional managers for handling its different operations. Such managers have proficiency in their specific fields, like human resource, finance and marketing, etc.

Furthermore, operations management relates to services and goods production within a company. It deals with outputs and inputs that are significant for the effective management of operations. Here, input is referred to resource management like competency of machinery, employees as well as raw material. On the other side, the output is generally focused on products and service distribution to end users. In addition to output and input, the following are some other functions of operations management in Tesco:

  • Coordinating and management control function
  • Quality management function
  • Facilities management function
  • Research and development function
  • Finance function
  • Inventory management and control function

An effective coordination within all above given functions enhance the control within Tesco that ultimately result in successful attainment of corporate goals. Besides this, the department of operations management in the organization should be responsible for managing significant changes in the existing process and performance to improve standards of quality plus productivity in the company. The company should determine standard level of its offerings, which must be improved to worldwide level to make its effective alignment with business objectives.

1.2 Success of existing operations management processes in meeting an organisation’s overall strategic management objectives

There are some main variables to measure the operations management effectiveness at Tesco, such as performance, profitability and productivity. The company has special organization by maintaining two important improvement processes in operation management, such as using outsourcing of services and lean manufacturing to ensure its operations process success to meet the corporate objectives. The process of lean manufacturing employed by Tesco perfectly ensure about its regular flow of value in production system while reducing total waste amount in the overall undertakings of business. Moreover, the procedure for outsourcing adopted by Tesco supports in lessening overall cost included in service or product production and at the same time the company also concentrates on its core activities, although outsourcing its subsidiaries and additional activities.

Through two procedures, the organization has attaining competitive edge in the industry in terms of reduced cost and good focus on main activities while outsourcing would be done for accomplishing other tasks that are not core to the firm. Such two activities are adding high productivity level for the organization and accountable for high productivity level at workplace. With an aim to make further improvements in the procedure both outsourcing process and lean manufacturing has been united to create lean manufacturing outsourcing. Through this concept, the company has produced successfully high quality standards commodities and services by integrating a well-known system, i.e. JIT (Just In Time) that supports the business in remaining highly effective in its production facilities and develop competitive image in retail sector. This concept is used by company for its regular improvement, simplicity, flexibility and visibility. It saves both money and time of the organization. For instance, commodities are made would be required to stored hence company will need to spend for facilities of storage. The JIT facility removes such area immediately by providing the commodity right on the point of sale.

Task 2

2.1 Importance of effective quality management in achieving organisational objectives

The process of quality management ensure effectiveness and perfection of service and products offered by organization along with offering excellent quality. Operations and quality management can be taken as two sides of coin that supports in attaining corporate goals with their combined impacts plus efforts. There are three aspects that supports in keeping products or service quality at work, such as planning, controlling plus assurance of the overall offerings quality by the organization. One more significant aspect of company is adaptation of quality improvement system by monitoring and control. Tesco has employed an adequate system for quality management that determines the quality requirements for its commodities and the company adopts unique methods for delivering desired quality for their offerings. Adequate quality system adopted in Tesco can be considered as one of the strongest pillar in their vision for becoming more reliable brand in the retail industry.

Moreover, Tesco develop quality products that support it in fostering creditworthiness and trust among its clientele base. This has supported the organization to attain competitive edge, which can be sustained by it for long time. Effective system of quality in the organization adds in retaining existing customers as well as to attract new ones through imparting high satisfaction by offering quality products and services. For ensuring its quality and efficiency at global level, the company has also employed the concept of Six Sigma in its operations. A team of well-trained staffs called Black Belt supervised by proficient managers have been deployed by Tesco. The six sigma strategies generally focus on customer’s demand and perfection beliefs in manufacturing operation. Presently, Six Sigma is taken as best practice in the sector and being followed by various companies for ensuring their products and services high quality.

2.2 Success of existing quality management processes in meeting an organisation’s overall strategic management objectives

Through the strategy of six sigma adopted by Tesco, it has been capable in attaining high quality for its offerings along with satisfaction of employees that is one of the main strategic goal for the company. The particular strategy would help the business in improving its overall revenue by enhanced profitability and customer satisfaction with effective operations at their facilities of manufacturing. With the enhanced level of systems and processes, the organization has managed successfully to lessen its resources wastage in the system of production. It would lead to competitive pricing for the organization with high margins and excellent quality of commodities. Tesco has managed for ensuring its process quality and trained its manpower for motivating them to align their efforts with corporate objective to ensure high satisfaction for customers. To ensure about its quality, Tesco has implemented varied processes at workplace, like DFSS, Six Sigma and DMAIC. Many tools for quality management are also being utilized by the company, such as process mapping, Pareto chart, tree diagram and root cause diagram, etc. These are three aspect on the basis of which the process of entire quality management are concentrated to attain corporate goals and these are:

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Processes

All policies and processes in the company have been analysed for better satisfaction of customers and accordingly the process improvement have been made for attaining high quality level in the company.

Customer

All processes of quality management are designed to attain high satisfaction of customers by determining plus delivering consumer desirable commodities and services.

Employees

The best empowerment and engagement of employees is the main consideration for company, as it support in keeping high quality at workplace. Prior to implementing JIT, Six Sigma and other processes of quality management in the company, necessary training session has been organized for employees for engaging them in related activities.

The process of Six Sigma adopted in Tesco for successfully executing quality initiatives as well as to achieve corporate goals. The following are some main elements of Six Sigma executed by Tesco:

  • Defects :- It would represent the company’s failure in delivering standards of quality that are desired by final consumers.
  • Critical to quality :- The particular attribute is most significant for consumers and its success ensure their high satisfaction.
  • Variation :- It denotes the different between expected products quality as well as quality delivered by actual service or product made by company.
  • Process quality :- It should the process effectiveness adopted in Tesco for delivering excellent standards required by customers.
  • Six Sigma design :- This had been established for meeting needs of customers and in attaining world class quality in working practice.
  • Operations stability :- It would supports in offering predictable process plus improvement in whole operations of company.

Task 3

3.1 Plan a strategic quality change to improve organisational performance

The plan of strategic quality change would be helpful for Tesco for ensuring high quality services and products by increasing corporate performance. For the company’s manager it is not simple to develop and implement strategic quality change at work. Quality system and operation management system department in the store supports in analysing organization quality as well as create process to enhance overall quality of business undertakings. The planning process of strategic quality change in the Tesco involves following essential stages:

  • Determining quality improvement initiatives
  • Analysing existing quality in the organization and comparing it with expectations of customers for desired level of quality
  • Involving staff members for high quality level maintenance
  • Developing objectives and goals for long run
  • Creating benchmarks to engage into regular process of improvement
  • Developing high standards quality
  • Ensuring about operations effectiveness

Besides above, the process of control and monitoring have been adopted by Tesco to make sure the production of quality items, which is done by employing quality change tools and techniques. To deploy quality change, a popular ABCDE program has been adopted by company. The particular model would execute step by step procedure for the firm’s quality management. In order to devise an effective organizational plan, an assessment of external, internal environment with corporate resources would be done. Baseline analysis method is adopted to comprehend the organization past performance as well as current status for measuring adopted process effectiveness. On the basis of corporate goals, improvements plan for future is developed together with strategic actions for fulfilling the activities included in plan. The components in the company comprises key resources, mission and objectives of Tesco that is analysed for developing a program of strategic quality change. A plan is devised for attaining organization’s set targets and several systems of performance measurement are integrated in the company. The entire quality change process evaluation would be done by implementing balance score card and 360 degree feedback method. Moreover, to devise quality change programs goals, Tesco should ensure that these are developed on the basis of SMART concept.

3.2 Resources, tools and systems to support business processes in a strategic quality change

Tesco would have below mentioned resources to create strategic quality change program at workplace:

Financial resource

These are significant to ensure quality management program success in the company. The company develop its quality management process and tactics on the basis of its available financial resource.

Human resource

Employees in Tesco are treated as most significant element and they have abilities for bringing quality change within the business by following processes set in given time period. The company also provide its manpower with necessary resources for their work. Also, adequate training and development session are offered to staffs for meeting the standards. The same was done by company before executing the strategy of Six Sigma throughout their re-launch. Employees were being motivated during the process as well as their performance was improved.

Systems

Various systems are employed by Tesco for regular monitoring of its quality element as well as it has facilities for feedback and monitoring of process at work that perfectly adds in improvement of quality.

Tools and techniques

Many tools and techniques have been adopted by Tesco, such as TQM, WCO, etc. to ensure success of quality change program in the company. These tools supports in identifying customers’ needs and meeting them economically. Also, the continuous development model has been utilized as a powerful tool for the organization management.

3.3 Wider implications of planned strategic quality change in an organisation

The strategy can be executed in several other places in both external and internal environment of Tesco. These are:

Customer satisfaction

The organization can enhance the customer satisfaction levels by increasing their activities related to after sale service. They can enhance the service level by offering quality to their customers and attained their desired goals related to customer service. When the company improved the services offered to clients than can able to build close relation with them and get wide information about their needs and desires.

Financial performance

Generally, financial performance and stability is a key indicator for the improvement of company. The unstable and poor performance of organization can reduce the effectiveness of organization. Moreover, they cannot afford for executing proper quality change management strategies at work. Hence, Tesco should have necessary funds for the strategic implementation.

Employee satisfaction

Employees can only deliver the service of excellent standard when they are highly motivated plus satisfied. The company’s results often reflect satisfaction levels of employees. For enhancing motivation and satisfaction of workers, Tesco must analyse main causes of its failures and eradicate them appropriately. The procedures and process must be increased for the quality improvement. Also, external and internal factors should be analysed plus information must be collected for the data investigation carefully. Moreover, for implementing quality change program successfully, the employees and organization flexibility is significant.

3.4 Systems to monitor the implementation of a strategic quality change in an organisation

It is very important to monitor and evaluate regularly the process of quality management as well as change after its complete execution at workplace. This supports in attaining successful and productive outcomes from the implemented process. The companies most of the time have capability to develop and execute system of quality change but they fail with its effective evaluation and monitoring. Tesco followed the total quality management system to monitor the entire process. For this purpose, the company use TQM’s, Plan-Do-Check-Act model. By applying this mode, the organization is able to devise accurate strategy of TQM, implement it successfully and recheck its progress for taking appropriate actions of improvement. Adequate management of quality is attained in Tesco with the help of given process and model. Furthermore, the organization use various techniques for measuring its performance, like assessment, benchmarking plus reassessments, which is conduct on continuous basis. It ultimately supports the organization in encouraging employee’s participation and ensuring success change at work.

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Task 4

4.1 Implement a strategic quality change in an organisation

The following steps can be used by Tesco to implement strategic quality change in the store:

Support of management for change/h5>

It is significant that management support for the decided change and demonstrate their effective support while making interaction and communication with staff. This can support in increasing comfort among employees to follow the proposed changes in their routine tasks.

Change case

No one at the work wants to change in the absence of valid change, so it is essential for developing a case for change, which can obtain from distinct sources. This can be an outcome of data gathered on defect rates, employee satisfaction survey, and customer satisfaction survey, business objectives due to budget pressures or strategic planning session and customer comment cards. Utilizing data can be best manner for Tesco to determine adequate areas that require change initiatives and improvement.

Employee engagement

Whether it is customer satisfaction improvement, work process change or identifying methods of reducing costs, workers have experiences that can advantageous to both planning and implementation of change. Since, employees are closest to the change procedure, it is essential for Tesco to communicate the reason of change to its manpower and gain their active involvement for the same.

Implementation

The Company after communication to employees should made time for the execution and make alteration for the reason to affect the staffs and process who manage the procedure. A proper timeline will allow for all new supplies, equipment plus training to have effect before completely executed. Execution without logical order can lead to frustration for all those entities who are responsible the change process.

Follow up

Whenever a change take place, it is always productive to follow up after its execution and assess the progress of change that whether it is delivering intended results.

4.2 Embed a quality culture in an organisation to ensure continuous monitoring and development

Quality culture is referred to degree of commitment, awareness, behaviour and collective attitude of company in relation to quality. In the environment of quality culture, focus is on consumers and quality becomes the responsibility of everyone. Moreover, employees are encouraged to perform their job. Also, expectation of customers are exceeded and they get enchanted. The below is the quality culture embed by Tesco in the store for ensuring regular monitoring and development of its operations, such as:

  • Delighting and surprising customers
  • Pursuit of solving undetermined issues
  • Customer loyalty goal instead of their satisfaction only
  • Focus on process
  • Changes with control and stability
  • Work togetherness for completing common targets
  • Facilitate healthy communication
  • Open access to all information
  • Take all failure/success as experiences

Besides above, the company develops quality circles that are informal group of staffs, employees or team members who can voluntary meet together for discussing issues related to their work. The aim of this quality circle is to define, analyse plus solve problems related to work. At Tesco, employees are encouraged to develop quality circles that would support them in sharing their experience and knowledge. They can provide their suggestion for enhancing quality and service that would be submitted formally to team leader/group manager who will adequately pass it to the project manager. In addition to this, there are various types’ quality culture, like reactive quality culture, responsive quality culture, reproductive quality culture, regenerative quality culture, etc. Among these, the following two are embed by Tesco at its store, such as:

Reactive quality culture

The particular culture embedding staffs and driven by accountability and compliance, attempts to delegate quality to defined space and seek rewards opportunities. Tesco organized various workshops for union representatives, managers, store staffs and supervisors for developing a quality environment on the basis of empowerment and participation.

Responsive quality culture

Tesco concentrate on fulfilling customers external demand, takes a positive approach for grasping opportunities, shares and seeks good practice plus tends to view quality related strategies plus activities as an adequate solution to externally driven challenges plus problems.

4.3 Monitor the implementation of a strategic quality change in an organisation

The implementation of monitoring the strategic quality change process is more difficult than the actual execution of change in the organization. Some common methods that can be used by Tesco to monitor the change process is as follows:

Action planning

The particular process can support Tesco is becoming more focused and set realistic targets that are measurable and can be used to measure the overall implementation effectiveness.

Surveys

The Company can conduct stakeholder, employees and customer’s surveys for collecting information and monitoring the process of change.

Task 5

5.1 Outcomes of a strategic quality change

The evaluation of outcome is performed to assess the effectiveness of the implementation of strategic quality change at Tesco. Following are several dimensions to evaluate the outcomes of strategic quality change.

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Action learning

To evaluate the outcomes of strategic change, this approach requires to review the actions taken by the staff members in the process. It help the workers to improve performance in the future by participating in quality training, and sharing the ideas and experience with colleagues.

The effect on sales and profit

The quantitative approach to evaluate the direct impact of the change process on financial performance to evaluate the outcome. Here, the increase in sales and profits may confirm the success of the marketing strategy plan.

Customer feedback

Another dimension where fulfilment of customers’ expectation is considered to make an excellent decision for improving quality and design of products. Satisfied customers would ultimately result in Tesco’s revenue maximization and growth in market share. Thus the performance improvement suggests the successful implementation of strategic quality change process.

5.2 Recommend areas for improvement to a strategic quality change that align with organisational objectives

The successful execution of strategic quality change in the company is not enough for improving the entire operations quality. Hence, continuous update of technology, employees training, creating good communication and regular follow up of quality circles is important for enhancing quality in the process of daily business activities. The following improvement would be recommended to develop a successful strategic quality change process in Tesco:

Regular training

The company should organize new employee initiated program that trains staff to concentrate on issues related to quality from their first day on job. Tesco can arrange training sessions on regular basis for both new and existing employees to enhance their knowledge and skills to improve quality at work.

Quality circle

During the inspection of quality, it has been found that there is less quality circles in Tesco, hence it is suggested to organization to create distinct divisional quality circles that support in regular enhancement of service quality and business process. By doing such activities, the organization would be able to involve staffs in the process of addressing and finding concerns. Furthermore, the company should track product defects and customer complaints on continuous basis as well as act accordingly.

At last, it is recommended that the company should create a system that will define its product excellent quality. It is better for the organization to execute measurement of international quality standards for its offerings to gain customers trust and loyalty.

Conclusion

The above report is concluding that effective operations support in attaining corporate objectives and company should integrate their different operations with the final realistic goals. Moreover, strategic quality change improves the performance of company. Also, operations management deals with the customer’s desire goods and service designing plus its quality production. The company can manage its overall quality by implementing PDCA model. Furthermore, for the planning of strategic quality change process, environment must be scanned, SMART goals should be devised and a change climate can be created. The quality change in an organization can be executed by using quality circles and performance can be evaluated through customer’s feedback and pilot study.

References

  • Balogun, J., 2008. Exploring Strategic Change. FT Prentice Hall Financial Times.
  • Chase, R. B., Aquilano, N. J. and Jacobs, F. R., 2001.Operations management for competitive advantage. Irwin/McGraw-Hill.
  • Cummings, G. T. and Worley, G. C., 2008. Organization Development & Change. Cengage Learning. 9th ed.
  • Fernie, J. and Sparks, L., 2004.Logistics and retail management: insights into current practice and trends from leading experts. Kogan Page Publishers.
  • Fernie, J., 2009.Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.
 

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