data.
There are also new rules to prevent organisations sending data to a country
outside the European Union in an attempt to avoid complying with
legislation on data protection. There are new provisions which can lead to
individuals being held personally responsible for not abiding by the rules.
Communication within Tesco plc.
An illustration of communication within Tesco plc.
Figure 2.0: Example of vertical and lateral communication within Tesco.
I have analysed the communication within Tesco plc. and now I can say that
Tesco uses relevant and accurate information to plan and manage efficient
development, marketing, distribution and cost control. Information,
vertical and lateral, communicated within Tesco very efficiently at the all
levels. Every single person who works in Tesco is sure about from whom he
should receive information and instructions.
But apart of internal communications Tesco has very good external
communications as well. The company communicates with customers and
suppliers very well. The quality of Tesco’s external information is very
high. Tesco has many communication channels which allow customers easy
access to the company, for example, Tesco advertises a customer care free
telephone number and e-mail address on its packaging literature.
E6
Production.
Production involves activities, which combine inputs in order to bring
about the physical changes that eventually produce the desired output – the
product. The product may be goods for consumers and households or parts and
machinery for other producers and manufacturers. Production can create a
physical change through:
. Processing
. Manufacturing
. Assembly
. Craft-based processes.
Value added
A common feature of all forms of production is that they are the means by
which organisations add value to their operations. Put simply, all
organisations add value to the externally sourced materials and other
inputs that contribute to their output. Value added is the difference
between the value of an organisation’s output, as measured by sales
revenue, and the costs of its inputs bought in from outside which
contribute to output.
The relative importance of the input costs incurred by a producer depend
upon the nature of the business. Most businesses generally consume a
combination of:
. Raw materials
. Parts and components
. Energy
. Business services.
Quality
Quality has always been an important competitive factor in some markets,
but during the 1980s an increasing number of UK producers began to devote
more attention to quality improvement. The rise in the spending power of
the average household meant that consumers’ choice of goods and services
was no longer so dependent on price. At the same time, consumers were being
offered a wider choice obliged producers to improve and complete on
quality. Because firms producing consumer goods and services sought to
raise quality, their suppliers – companies producing materials, parts,
machinery and business services – were also forced to improve quality.
A growing number of organizations now operate in markets where product
differentiation is rapidly decreasing. For example, advances in technology
mean that there is now very little difference between personal computers
offered by the different manufacturers in particular price range. A PC
producer must therefore strive to gain a competitive advantage by
establishing a reputation as a company with high quality and good customer
care. Consider training shoes as another example. Manufactures of trainers
periodically introduce new features into their shoes in an effort to create
a greater degree of product differentiation, but they all remain
essentially the same design and product. If the identifying logos are
removed, the average buyer might find it difficult to distinguish between
brands.
Producers of both consumer goods and consumer durables must therefore place
more emphasis on quality when marketing their products.
The increasing importance of quality can also be seen in the market for
consumer services. The main features of services provided by airlines,
banks and fast food chains are often virtually identical, and product
differentiation can only really be achieved by improvements in quality.
Another factor in changing business attitudes to quality was the success of
Japanese manufacturing companies. It was perceived that quality played an
important role in helping Japanese companies succeed in European and US
markets. By the end of the Second World War very little manufacturing
capacity remained in Japan, and in the immediate post-war period Japanese
products generally had a reputation as being cheap but inferior quality
versions of products manufactured by US and European producers. However by
the early 1980s Japanese companies had become closely associated with high-
quality products for which they were able to charge premium prices. In the
early 1980s, Japan had 18 per cent of the world trade in the manufactured
goods, substantially more than the UK’s 5 per cent share.
Quality control
Quality control involves an organisation using some kin of inspection
system for identifying materials, parts, components and finished products
which do not meet the company’s specifications. Inspection or testing may
be carried out at various stages of production to ensure that faulty items
do not remain in the production chain.
The operative or inspection department may check every item or just a
sample of production. Processing industries, such as the brewing and
chemical industries, also test regular samples of their products. Quality
inspection is supported by highly sophisticated monitoring, measuring and
testing equipment. This allows organisations to make adjustments to machine
settings and control devices to improve quality.
There are some drawbacks to a quality inspection system. Using an
inspection system to control quality encourages employees to take it for
granted that some output is bound to be defective. Less attention is paid
to preventing errors and defects in the first place as they will be picked
up later by the inspection system.
A quality control system must ensure that there is regular contact between
those departments that have a particular interest in quality matters. The
marketing department, for example, may identify issues raised by customers,
while the design research and development departments should work with
production on developing the product so that current defects are eliminated
when work is being processed.
Quality assurance schemes
A quality assurance scheme is the means by which an organisation implements
its commitment to quality. It helps firms to do the job properly the first
time, because the scheme is designed to prevent failures rather than
detecting errors once they have occurred. In this way a quality assurance
scheme (QAS) differs radically from quality control systems which involve
inspection procedures at various stages of production. The design of a QAS
recognises that defects do not just happen; they are caused by people.
Assuring quality
Once an organisation has identified the reasons why people are responsible
for defects and errors, it can develop a system which eliminates the causes
of defects. In this way, quality is assured. There is no single format for
a QAS, and an organisation chooses a system which is most appropriate to
its particular product or service. What it must do is to insure that every
stage of production (or in the provision of a service) that materials,
equipment, methods and procedures are used in exactly the same way, every
single time.
All employees should be aware of what is expected of them, and should know
how their own particular performance has to meet certain clearly identified
requirements.
Product Evaluation and Quality Assurance within Tesco plc.
What product evaluation and quality assurance in Tesco plc.
Tesco products are continually monitored and tested for their quality and
customer acceptability; this is product evaluation. Tesco staff and
management procedures are also monitored to ensure that they maintain the
highest standards; this is quality assurance.
Why does Tesco carry out product evaluation?
Product evaluation is carried out for a variety of reasons. These include:
testing new products under development
testing existing products when a change of supplier is being considered
testing Tesco products against those of competitors
to update information on the packaging
to monitor quality and safety standards.
Changing of packaging information
Even when a product remains the same, packaging information may have to be
altered because of a change in legal requirements, changes in nutritional
concepts, or advances in food preservation and cooking. For example, a
product might have its packaging altered to indicate that it could be
suitable for microwave cooking. It will therefore be necessary to test the
product in company’s laboratory. Here Tesco inserts fibre optic probes into
the product. This allows us to monitor the temperature of the product
whilst it is cooking, in order to ensure that it reaches a high enough
temperature for it to be consumed with safety.
Tests on existing products
Quality control tests are conducted regularly on all existing own-brand
products at Head Office, in Consumer Advice Centres, and in specialist
laboratories. These include tests on food safety.
Consumer Advice Centre
The purpose of five Consumer Advice Centres in Sandhurst, Shoreham,
Southport, Cheshunt and Perth is to carry out practical research with
customers into new and existing products. Each centre is staffed by two
consumer service officers who are qualified home economists. Their most
important role is to conduct consumer acceptability tests and sensory
analysis. Over a four-day period, six to eight products will be tested.
Their role also includes being available to the customer for any queries
concerning diet, health and nutrition, PR work at a local and national
level, quality control, and giving talks and demonstrations to local
community groups.
Organising a taste panel
Market researchers will recruit customers who are shopping in the store.
These customers take part in the test only if they fulfil the recruitment
criteria that have been established for the product being tested. For
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