Operations Management at Tescos

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.

Tesco was found by Jack Cohen in 1919 it opened its first store in 1929 in Burnt Oak, Edgware, Middlesex (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.

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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. 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. ( Wiele, Williams, Dale, 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.

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