QUALITY CONTROL SYSTEMS AND CUSTOMER SATISFACTION AT TESCO

TQM focuses on the ways in which these processes can be managed – with two key objectives:

1 100% customer satisfaction

2 Zero defects

Quality Management focuses strongly on the consequence of the relationship between customers (internal and external) and supplier. These are known as the “quality chains” and they can be broken at any point by one person or one piece of equipment not meeting the requirements of the customer. Failure to meet the necessities in any part of a quality chain has a way of multiplying, and failure in one part of the system creates problems elsewhere, leading to yet more failure and problems, and so the situation is exacerbated.

The ability to meet customers’ (external and internal) requirements is vital. To accomplish quality throughout a business, every person in the quality chain must be trained to ask the following questions about every customer-supplier chain: Designed to give products that will satisfy our customers’ hope. The main considerations for listing Dairy products in Tesco are:-

Safety – All products must meet our microbiological standards throughout there shelf life.

Quality – The products must look great as well as taste delicious.

Legality – All legal requirements such as compositional standards and labeling must be met.

Customer Focus – Products will only be sold if there is a customer need for them and they deliver a fit for purpose solution.

Produce standards ensure that all Tesco fruit, salad, vegetables and horticultural products have the highest standards of food safety and quality. They also address environmental considerations and labor standards.

Produce Codes of Practice apply from production; from the selection of raw materials to harvesting and then packaging and distribution to Tesco stores

They cover the design and maintenance of buildings and processing equipment including field rigs

The welfare and training of personnel involved in the production process

Environmental considerations within Nature’s Choice

Tesco consults Industry Bodies, Professional Associations, Food safety experts and environmental experts to advise on all aspects of production. We also seek advice from with our suppliers and growers when agreeing what standards can be achieved.

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Nature’s Choice is an Integrated Crop Management System (ICMS) which has been running within the Tesco Produce Department since its conception in 1991.

• Tesco Natures Choice

• Ethical Standards

• Quality

No one tries harder for customers

• Understand customers better than anyone.

• Be energetic, be innovative and be first for customers.

• Use strengths to deliver unbeatable value to customers.

• Look after people so they can look after customers.

The target of cross-departmental survey considered some of the values which staff themselves wanted to see in Tesco:

Values associated with customer service.

Job satisfaction,

Trust, fairness and integrity

Open and honest communication teamwork,

Quality standards

Motivation

Profitability

Commitment

Success and continual improvement,

The survey exposed that the Retail section came closest to reaching an ideal; Retail – which had already been involved in programs to advance customer relations – was followed by Head Office, and the Distribution section was in third place. Return surveys carried out show that each section has met or got close to the Main Boards original target. Meanwhile, the target has been stirred in line with their latest vision. The different sectors have maintained the programs in order to reach the new target and further develop their performance.

TASK FOUR

QUALITY PROGRAMS

Quality Programs

One of Tesco’s key business strategies on inward bound the Irish market in 1997 was to build close relationships with the Irish supplier-base to increase the amount of business with Irish suppliers producing Tesco own brand products and branded goods for stores in Ireland and for export to the UK and to the wider Tesco Group.

Tesco Ireland put a 12-strong team of technical, quality and trade development experts in place to work with supplier companies’ construction their product development skills and market expertise, to help them prosper in a rapidly changing commercial environment. Over 130 companies have benefited from the program to date, including Bewleys, Country Crest, Dublin Meath Growers, and Glanbia, Gold star Meats, Irish Yoghurts, Lir Chocolates, Largo Foods and Shannon Minerals.

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These 130 agreed Irish suppliers of Tesco brand now supply over 1,000 food and non-food products to Tesco Ireland, and to the wider Tesco Group, including eggs, ham, rashers, beef, fish, milk, cheese, bread, burgers, bottled water, biscuits, ice cream, jam and the full range of Irish fruit and vegetables. Only 20 companies were permitted suppliers in 1997, before the program started.

As a result of this program, and other support for Irish suppliers, Tesco now buys over É1.5 billion worth of goods from some 800 Irish companies, over 80% of which are small to medium sized enterprises. É400 million-worth of products are exported to Tesco in Britain annually. Supplier companies have created 1,025 new jobs as a result of improved business from Tesco. Tesco is now the largest

Training and Development programs

As an innovative and vigorous company in the highly competitive retail environment, learning and progression from within the company is core to our operation. Training forms a vital part of staff development, focusing on our key business priority of continually improving our service to customers.

We support our people to accomplish their potential through access to specially-tailored training programs, and core skills workshops including effective meeting management, presentation skills, influencing, root cause analysis, personal efficiency and communication skills.

All staff has regular performance reviews with their managers and agrees personal development plans (PDPs), setting clear personal performance objectives. This ensures that all staff has the right skills to do their jobs.

Supply Chain Labor Standards

It is aim to act responsibly in our commercial and trading activities. The welfare and safety of the employees of our suppliers is vital. It expects all our suppliers to extend fair and honest contact to their employees and to all with whom they do business. We have developed a new course for our technical managers to raise their awareness of ethical issues and worker welfare in the supply chain. We will continue to train all new technical managers in this way. Managing standards across our large and complex own brand supply base is a challenge, but Tesco is committed to working with our suppliers to maintain, develop and improve standards.

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Benchmarking

Compliance with all components of the key elements will lead to support of a submitted standard through the Initiative framework and subsequent getting by retailers. Once a food standard has been benchmarked successfully, the standard is “acknowledged”. The conforming benchmarked food safety standard can be applied by food suppliers throughout the whole supply chain, upon agreement with retailers, when defining contracts for sourcing of products. The application of the benchmarked standards to particular products will be at the maturity of retailers and suppliers.

Staff feedback

Buyer of Irish food in the world “Viewpoint” is Tesco Ireland’s annual staff survey, which provides all employees with a channel for communicating their views and opinions, and informs company management on how things could be done better and simpler for staff. Areas privileged include: emotional loyalty, satisfaction with current role and manager and clarity of role purpose alongside level of satisfaction with career progression, pay and benefits as well as general demographics.

Each line manager receives a report on their team’s overall responses, and they then work with the team to address areas which the survey has highlighted as requiring attention. Over 90% of staff contributes to Viewpoint surveys.

In addition to providing a means to holding Tesco’s high standards together, the Tesco-Verax programs are probable to produce other benefits which include:

Helping staff give a better service to the business.

More substitution between departments as people make better use of their individual skills.

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