Critical Evaluation Of Tesco TQM System

TQM System Used By the Organization

1. TQM System Used By the Organization.
2. Critique the Implementations and Development of the Use of TQM System.
3. Successful Implementation and Development of TQM System.
4. Evaluating the Impact on the Organization.

Quality of the production and services are considered to be the major agenda of any business enterprises. This is the best weapon that every company has to compete in the market. A high quality product always pleases the clients or consumers, whose satisfaction is the key factor to win over market share. In this paper, total quality management (TQM) system of the, UK based company, TESCO will be analysed. Tesco is one of the leading retail sectors in the world. The company Tesco started with grocery retail in 1990s but diversified in areas of clothing, books, electronics, software, furniture. Tesco has spread its business globally and has stores over 12 countries (Clark, 2014). It is the largest grocery and general merchandise retailer in United Kingdom. This company has been successful over the years, as it has been successfully delivering low-cost items. Tesco is listed under London stock Exchange.  The amount of market capitalization of Tesco was £18.1 Billion on April 2015 (Combe 2014). This paper will critically evaluate how implementation and development of total quality management system. There will be an evaluation made to analyse the impact of this system. The discussion will end with a recommendation based on the findings.

The continuous improvement process of a company is based on Japanese concept known as Kaizen. The philosophy of this theory involves instilling a sense of employee ownership of the process. Employee involvement plays a big role in continuous improvement in an organization (García, Maldonado, Alvarado and Rivera 2014). Another theory of Total Quality Management is Deming’s 14 Points. The core concept of this theory is to increase quality and productivity by setting fourteen management practices. By following these specific points, Deming argued that improvement in quality would lead to decrease in the expenses of the company and increase in productivity and market share (Goetsch and Davis 2014). PDCA (plan-do-check-act) has different approach for quality management. This reduces variability in processes and product by utilising statistical products. It helps to manage quality of a company on a day-to-day basis by keeping the process under control, encouraging development for innovative and breakthrough changes. This enables the company to improve its products and performance (Matsuo and Nakahara 2013). In a total quality management, benchmarking is the method of comparing cost; productivity; and other specific process that are widely considered as standard or best practice. This allows the company to develop plans on how to make improvements.

Critique the Implementations and Development of the Use of TQM System

The one of the successful supermarket chains, TESCO, always focused on improving efficiency and effectiveness in order to remain at its position. It has achieved this position and maintaining it due to its high product quality and services. Tesco continuously introduced new products and services in order to satisfy and meet the demand of its customers (Cushman and Burke 2014). As a part of the quality management, this company tries to provide product and services, which are defect-free, generates fewer wastes and free of accidents (Innovationleaders.org, 2016). Quality management has been always the prioritized aims above all other strategic goals of the business. Tesco uses various approaches to attain its goal of quality. It has employed dedicated workers and highly skilled human capital to continue with its high quality services and products, as also for the betterment of its product quality and product. Tesco arranges meeting every day, with the management of the company, whose main agenda is the total quality management (Haerifar 2013). The managers discuss and suggest how every single business function can be incorporated and adjusted in order to meet the desired quality. Tesco also has quality improvement team, who supervises and maintains the quality of each product that is sold by Tesco at every store (Cushman and Burke 2014). Moreover, they deal with the quality of services to its loyal customers. They also ensure to improve its services day by day, by identifying the way of improvement. Tesco’s quality control is achieved through two main methods, such as, inspecting and testing the goods. These methods are applied to the entire process of production. Even the selection of raw materials goes through this process (Goetsch and Davis 2014).  Human resource management is another area that Tesco gives emphasis in terms of ensuring the quality of services. The company also focuses on maintaining quality relationship with its associates and employees, as they also take part in yielding company’s general output. Therefore, Total Quality Management system of Tesco tries to achieve overall quality organizational culture.

From the above discussion regarding the Total Quality Management system of Tesco company, it can be stated that its capability of maintaining quality and meeting all requirements of the consumers has put the company one step ahead of its competitors. Moreover, its customer-centric approach has been criticized, but it has been found most beneficial after implementation of this system. The low pricing policy of this company has been proved to be ideal. Tesco has tried to provide wide range of products at low cost but it has not compromised its quality. However, there is a disadvantage related to this low price policy. The higher strata of the society can perceive that the low price comes along with poor quality. Hence, the might have lost some share of the niche market. Tesco have not considered psychological factors of all segment of the consumers. Moreover, this company has given importance to the delivery time; flexibility and speed as measures of assessing quality of services (Chandra 2013). In all this respect, Tesco has the comparative advantage over its competitors. The quality of services of this company has been improved more as it has introduced online services. Hence, customers of Tesco can avoid wasting time queuing in the stores for payment. Quality checking at every step, from grower to finished product at stores, is highly appreciated by the critiques and it helps to occupy the faith of the customers (Oakland 2014). The quality concept of this company follows: prevention; zero defects; getting things right at first; quality involves everyone; continuous improvement and employee involvement. Hence, by following these ways, the company achieve total quality management objectives. Tesco involves it employees from senior management and manufacturing workers in its TQM system, as a result of which the middle manager feel unimportant (Zink 2012). This may affect the quality of their services. The concept of Total Quality Management at Tesco is not only related to the quality of the output, but also quality of the management in a sense that, how the quality of the work, working culture and efficiency of the employees including the senior management has been improving. The quality of the operations at Tesco has improved by incorporating speed while communicating with the subordinates or with the customers. Tesco has also focused on the quality aspect of its suppliers.It has to be admitted that, the Tesco always remained focus on the quality aspect of its product or services, along with the internal quality aspect be it the performance of the workers or efficiency of the senior management.

Successful Implementation and Development of TQM System

However, implementation and development of the total quality management system into the organization was not that easy. Internal quality of the company can only be improved, only if commitment from the senior managers exists, along with the actual involvement of the employees from each hierarchical level. It has been seen that there is lack of commitment from the middle managers in improving their quality of services. Total quality management will be improved by removing barriers within different department; and by changing organizational cultural, so that everyone have the urge to meet the requirement of the company in order maintain quality of its product. So by implementing the quality achievement within the system, overall quality target can be met in terms of better quality of product and services. From the above discussion, it can be noticed that this company has mostly followed and implemented the Kaizan model; Deming’s 14 points and benchmarking practices while managing its total quality.

The use Total Management System has been introduced in Tesco and this system has been implemented for the improvement of every department. In spite of having several drawbacks on implementing this system, it has been successfully implemented within the core of the company. Tesco has focused on delivering class quality products and services. Due to implementation of this system, the performance targets have also been adjusted during recession. The system was implemented to look after the needs of customers, and the implementation was successful. This is because, during the peak of the recession the consumption behaviour of the consumers were different, hence the company changed its market strategies to suit the market scenario (Dervitsiotis 2014). The management continued to analyse the regular market scenario. As a result of which, the company has also maintained its competitiveness in the market. Moreover, apart from considering the satisfaction level of the consumers, Tesco also focused on satisfaction of the workers regarding the quality of their job and quality objectives of their performance. In order to be successful in implementing the total quality management system, the company focuses on designing and manufacturing new products (Bon and Mustafa 2013). It has also developed electrical enclosures and customized programmable logic controller in a water treatment environment. To use this kind of product in the manufacturing method, training is crucial in order to make certain high quality control level. To improve the quality of its employee, the quality management has introduced training plan under Total Quality Management, such as, business plan; computer skills; manufacturing skill; management skills etc. By successful implementation of Total Quality Management, the company has improved its brand value. Moreover, as its primary focus was on delivering excellent products and services with high quality, the brand loyalty of this company has increased. The existing customers rarely buy any other brands and due to its reputation regarding the quality new customers are attracted. Implementation of TQM successfully, the company has also achieved sustainability. This is because, as a part of Total Quality Management, the management has focused on waste free production, in order to improve its quality of production process (Fernie and Sparks 2014). Due to successful implementation of Total Quality Management, the customers can interact with the employees directly and they can avail extra services surrounding by this organization (Macdonald 2013). The continuous enhancement has eliminated the non-value added activities of the firm. Effective leadership skill of the management has helped the successful implementation and development of Total Quality Management. Moreover, TQM has improved the consumer’s satisfaction level, which indicates successful implementation and development of this system. 

Evaluating the Impact on the Organization

Before Introduction of TQM System

Though Tesco was growing over a consecutive years, but it faces a downfall at few years back. It has been found that the company overstated about its profit which triggered controversy. Eight senior executives were fired. Hence, overall quality of the work culture was not taken into consideration. The success of Telco was reversed under the chairmanship of Clarke (Malik 2015). In spite of previous success, the reputation of the company was at stake. Moreover, Tesco required an overall analysis of its own performance. Along with assessing the pitfalls of previous performance, the company felt it necessary to sustain and capture the largest market share. Before introducing total quality management system, the focus of the company was on the marketing strategy. However, it was not possible for the management to earn the faith of the consumers once again. Therefore, it was necessary to have some improvement in the internal part of the organization. However, Tesco had stable funding base to start new action plan such as introducing Total Management System into the company (Chae, Olson and Sheu 2014). Moreover, strong administrative system and experienced and efficient managerial skill were there to carry forward this agenda. The strong morale of the employees to execute the plan was necessary for the Total management system to become successful. Thus Tesco included its employees from each hierarchical level to suggest ideas and providing feedback regarding the successful implementation of this TQM strategy. Moreover, before implementing the strategy into the system Tesco still had sufficient market share to implement the strategy more successfully.

During the Implementation of TQM System

Implementation of Total Quality Management is one of the decentralized control methods. The company has to pay attention to the production process, because then only the customer will hardly get defective goods or problematic services. In order to implement TQM in the system the supervisory authority of this company strictly emphasized on overall quality of the products, its services and on it relationship with the customer. Tesco faced competitors like Sainsbury who gave tough competition in terms of quality (Felgate and Fearne 2015). Therefore, during implementing TQM system, the management of Tesco targeted a high standard to outperform others. Moreover, the management of this company also looks after the attitudes of the employees. The management wanted to incorporate responsibilities inside them. However, Tesco has crossed most of the barriers that were prohibiting the implementation of TQM system. The impact on the organization during implementing the Total Quality Management System was positive. The quality standard of this company has improved. The morale of the employees also developed and they were emphasized on delivering class quality product. The implementation of this strategy has also improved the customer’s satisfaction and hence it created brand value of the company. During implementation of this system, the organization also attained sustainability in terms of environment. This is because; along with the quality of their produced goods, the company also focused on the less polluted production process and delivering less polluted products. This improves the quality of their production process that helps them to become more competitive in nature. 

Development and Potential Future

The TQM system has helped the company to improve its product. The customer satisfaction also has increased, as a separate team is in the charge of looking after this matter. They quality of services increased its brand value. As a result of this the scope of the company has diversified and chances of growing in future can be visualized (Van Heerden 2014). Though Tesco is one of the world’s leaders in the retail industry, the company must continue to maintain and improve its quality to sustain in global market. Due to its consistency in terms of quality the company’s sales is increasing and the business is expanding all over the world. It has already spread in various countries and it can be expected that it will open up more units within those countries and expand its business at few more countries. Tesco has always focused on maintaining hygiene, thus high class customers are also satisfied with the name of this brand (PilarMartínez-Ruiz et al. 2014). Due to business expansion, it is expected that there will be more job creation in the economy. Moreover, the implementation of TQM requires high skilled workforce, thus training was given to the existing workers, which in turn improved the quality of labours. The distrust developed among the customers during the downfall of the company has been retained by implementing total quality management system in the business. Tesco is strictly controlling its quality management as its most prioritise area to develop its business. This is the main weapon in which they have competitive advantage. It is believed that if it maintains its high quality consistently, then there is huge scope for Tesco to capture largest global market share.

From the above discussion, it can be said that Tesco has successfully implemented Total Quality Management and has developed by this process. It is recommended that the company should supervise its production process more rigorously to ensure that the every product that it delivers is defect-free (Bani Ismail 2012). To ensure overall quality of the management, it is recommended that the company should not throw away expiry food as a waste. It has to find some alternate process to use those items in some other purpose. Apart from the quality of the product, Tesco should focus on the customer relationship, thus a separate customer care team should be employed to communicate with them. Moreover, success of the TQM system mostly depends on how the employees are taking their actions, keeping in mind the quality issue (Kanguet al. 2013). The proper behavioural activity while handling customers should be the basic requirement of a staff at the retail stores. This will improve the quality of service that they provide. Overall, it can be concluded that even if Tesco has successfully implemented the Total Quality Management system into its business activity, the company must continue to control its quality management on a day-to-day basis. By this way, the Tesco will be able to advance its production process for further improvement in the quality of the goods and services they provide.

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