Operations Management in Tesco Essay

In order to define wherefore Operations Management is needed in an administration knowledge of operations c be is required. Operations management is an ara of management concerned with overseeing, designing, and redesigning bloodline operations in the production of goods and/or attend tos. It includes the responsibility of ensuring that business operations are efficient by using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs in the forms of materials, labour, and energy into divulgeputs in the form of goods and/or services.Operations management is about how organizations produce goods and services. Everything you wear, eat, sit on, use, read or knock about on the sports? eld have sexs to you courtesy of the operations managers who organized its production (Slack, N. , et al. , 2010) We have chosen Tesco PLC as it is not exactly virtuoso of the largest food retailers in the w orld it is also successful in selling its many an early(a)(prenominal) products including insurance and financial services. Tesco sets its surgical operation objectives with the fol milding categories of people in mind the first are the customers because these are the main people that bring in revenue enhancement to the organisation.Then there are the suppliers the operations discussion section depends on these people to perform adequately. (Tesco, 2007) There are also the employees these are the people who carry out the operations and working conditions in the operations section must put this category in mind. The companionship is also affected by operation processes especially if the goods disseminated by the process affect the environment. Lastly, there are the shareholders who expect that the operations section is effective stock that they drive out be able to earn a higher return on their investments.All of the above groups have been included in the surgery objectives of Tesco to a large extent. Some of these executing objectives include (Slack, N. , et al. , 2007) Speed Tesco recognises speed as one of the major performance objectives in operation. Speed in this case is the time spent between a request for a specific item by a customer and delivery time. The Company values this because customers can detect what they require when they need it. This constitutes a respectable record and makes them come back for more business. It has been combine in its day to day services by andling customers in a fast manner when they are purchasing items at the store, store attendants are taught to be prompt. Secondly, when they are purchasing a product or service over the phone, customer assistants are to deliver First Call Resolution.Thirdly, when customers are online they are saving invaluable time that may be drive outd in queues to make payments or when trying to move from one aisle of the store to the next to find a particular item, they can simply do this by selecting the items they require from Tescos official Website. Tesco, 2007) Quality in production this performance objective takes precedence over all other objectives. The product offered by any given confederation must meet international or local standards in order for it to be a type good. This is important to a company for two main reasons. The first being if a product or service falls inside the customers expectation, then they leave alone be satisfied and depart be willing to come back for the same. The company will therefore make more profits or generate more revenue.The second reason why quality is such an important performance objective is that it helps the company to pass on effectiveness through reduction of appeals, increasing dependability and speed. This will occur if the goods are of good quality. The organisation will then be able to spend time on other aspects of production instead than correcting mistakes. (Slack, N. , et al. , 2007) Tesco ensure t hat all goods especially foodstuffs are in top notch conditions to ensure that they incorporate this performance objective.This is ordinarily done by effective selection of suppliers for the company. Weiss & Mark, 1989) Besides this, Tesco ensures that goods do not sit overly long on shelves or in the warehouse. To prevent the sale of substandard goods expiry dates are regularly checked and to ascertain the quality of the products Tesco performs audits on its suppliers to check the capability of the factory that hygienic conditions are incorporated in food preparation the quality management agreements of the supplier and the supply chain management. If these aspects are action then Tesco will conduct business with them and display their items in their stores.This means that only the best quality goods are chosen in this case. (Tesco, 2007) Cost this is a performance objective that is largely dependent on the other performance objectives. If an operation is dependable, fast, fle xible and full of quality then fewer resources will be spent trying to rectify mistakes. This will directly affect the finances needed and overall cost in the process. It can then be said that cost falls under the four other types of performance objective and it is best not to consider it in isolation. (Slack, N. , et al. 2007)By ensuring that all other performance objectives are met Tesco ensures that this performance objective is incorporated and therefore Tesco improves efficiency in all processes. Flexibility this is inbred in ensuring that operation processes are effective. With flexibility a company can adjust to changes in orthogonal factors that may require different aspects of the product. In relation to this, flexibility may come in a variety of forms. It may involve a change in the meter of products the company dispenses, this will normally occur after an external reason has prompted a reduction or increase in the core of product.Flexibility also applies to the way p roducts or services are delivered. This may be in several(a) forms such as changes in delivery or payment systems used which are influenced by advances in technology and/or competitors. Lastly, flexibility may also mean a change in the types of products or services offered in relation to changing customer preferences. This performance objective is also essential in determining how some other internal factors flow. With a flexible operation system, responses within the organisation will be fast and the overall process will be more efficient.Enhanced flexibility will enhance dependability within an organisation because the speed will have been improved. Lastly, flexibility also affects the amount of revenue generated within the company as the way time is spent within the organisation is affected. (Slack, N. , et al, 2007) Tesco incorporates flexibility by continuously introducing unfermented products in order to meet with changing customer preferences. An example would be the introd uction of Tescos own product brand name. These products include nearly all foodstuffs and now clothes and electrical goods.To further expand Tesco now sell insurance and provide financial assistance with loans and book of facts cards. During certain times of the year, Tesco will increase the amount they stock of certain items to compete with demand. One such example is ice cream this will be in large stock during summer months and low stock during the winter months. Tesco has also shown flexibility by the way it has been engaging in a proceeds of mergers and expansion programs. Tesco has shown that it is flexible in terms of locations as it has a large number of stores found exterior the UK.This was in response to increased globalisation and technological advancements. (Hogan, 1998) Dependability this may be defined as an organisations ability to deliver goods, services and time. An organisation must establish as a dependable system in order to succeed. As a performance objectiv e it is very important as it defines the character that the organisation presents to its customers and whether the customers will continue to purchase their goods or services. If the company is very dependable then their revenue will increase and vice versa if they are not dependable.Dependability brings stability to the organisation and means that resources can be spent on improvement instead of on fixing mistakes. (Slack, N. , et al, 2007) One way that Tesco has utilise dependability is by ensuring that its delivery system is top notch meaning that its customers get their goods on time, either time. (Weiss & Mark, 1989) This is especially in regard to provision of insurance. The Company makes sure that customers wait for too long, if applicants are not viable, then Tesco informs them as soon as possible so that they do not have to waste time waiting unnecessarily.To conclude, it can be seen that Tesco is an extremely successful organisation that has extracted the necessary reso urces to succeed from new technology and finances. Tescos operations management is very effective with a highly structured dissemination chain for its products and services and a highly structured way of choosing its suppliers who ought to have ability to deliver. (Tesco, 2007) Trough this Tesco has construct very profitable and is ever expanding.