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Ref No: 1058

Table of Content

Task 1.1 – Interrelationship between different processes and functions of Tesco…………………….. 3

Task 1.2 – Methodology for processes mapping…………………………………………………………………… 4

Task 1.3 – Output of the process and the quality gateways of Tesco………………………………………. 6

Task 2.1 – Production plans……………………………………………………………………………………………… 7

Aggregate Production Plan……………………………………………………………………………………………. 7

Master Production Plan………………………………………………………………………………………………… 8

Production scheduling………………………………………………………………………………………………….. 8

Task 2.2 – SMART objectives…………………………………………………………………………………………… 8

Task 2.3 – Organizational standards of quality…………………………………………………………………….. 9

Organizational Structure……………………………………………………………………………………………….. 9

Budget……………………………………………………………………………………………………………………… 10

Standards and Specifications………………………………………………………………………………………. 10

Task 2.4 – Monitoring and control……………………………………………………………………………………. 10

Task 3.1 – System design……………………………………………………………………………………………….. 11

Task 3.2 – Quality culture………………………………………………………………………………………………. 11

Task 3.3 – Recommended improvements………………………………………………………………………….. 12

Task 3.4 – Implications of the proposed changes……………………………………………………………….. 13

Task 4.1 – Risk assessments on health and safety………………………………………………………………. 14

Task 4.2 – Health and safety legislation, policies and procedures…………………………………………. 15

Task 4.3 – Systematic review of organizational health and safety policies and procedures……… 16

Task 4.4 – Health and safety policies and procedures…………………………………………………………. 16

References……………………………………………………………………………………………………………………. 1 

Task 1.1 – Interrelationship between different processes and functions of Tesco

(1) Tesco PLC is a British retailing giant dealing in grocery and general merchandise. With a mission to provide consumers with an enjoyable experience and a high-quality lifestyle, the business aims to deliver greater value (“Core Purpose”, 2015).  Managing Business Activities Its product portfolio comprises of groceries, clothing, wine, as well as financial services. Presently, it operates in 12 countries spanning Europe and Asia (“Our Businesses”, 2015).

(2) The corporate objectives of Tesco PLC are evident in their strategic priorities. Firstly, the company aims to “regain” its competitive edge in the UK market by enhancing its penetration by opening 49 new outlets (“Strategic Report”, 2015). Further, the company is reviewing its product ranges so as to eliminate redundancies. Additionally, the company aims to reduce its debt – reflected by a financial leverage of GBP 22 billion –to provide greater value to its shareholders (“Strategic Report”, 2015).

(3)

 

 

 

 

 

 

Figure 1. Organizational Structure of Tesco PLC.

Figure 1 illustrates the organizational hierarchy at Tesco PLC along with the key functional areas.

(4) Getting the products in stores through the supply chain is a major process for Tesco (Benson, 2009). Tesco uses an automated system for inventory management called the Continuous Replenishment (CR) system (Zhao, 2014). Figure 2 shows the process of stock replenishment at Tesco.

 

 

 

 

Figure 2. Stock replenishment at Tesco adapted from (Fernie and Sparks, 2009).

(5) The functional areas – finance and operations – are fairly intertwined. Reducing debt implies that Tesco must save up on its costs (“Strategic Report”, 2015). This can be done by mitigating the inefficiencies in its retail operations. Managing Business Activities In particular, procurement and distribution are two aspects of the supply chain that must be monitored closely for redundancies. In addition, ensuring the availability of its products across various outlets requires joint efforts in the functions of marketing, sales, and retail operations.

Task 1.2 – Methodology for processes mapping

(1) Business process modeling refers to the representation of the involved steps, participants, and decision logic in a specific business process. Diagrammatic (e.g. state diagrams), descriptive (e.g. operational procedures), and active models (e.g. Marga simulation software for entrepreneurial startup) are three methodologies of business process modeling.

(2) Process mapping is a visual way of representing a business process and comes under the diagrammatic modeling technique. The following is a list of activities involved in order replenishment at Tesco stores:

1. Point-of-sale (POS) transactions at checkout.
2. Stock information updated on the information system.
3. Low levels of stock that reach reorder point trigger replenishment alerts.
4. Continuous Replenishment (CR) is triggered.
5. Orders are made to the supplier.
6. Use of primary distribution i.e. Tesco’s domestic fleet to transport goods from supplier.
7. Goods reach Tesco depots.
8. Orders are assembled.
9. Goods are delivered to multiple Tesco outlets.
10. Goods are replenished in stores.

 

 

 

 

 

 

 

(3)

CR Replenishment alert Update POS Sale Customer-facing side

Primary distribution Order placed Supplier

Order assembly Goods arrival Tesco Depot

Replenishment   Delivery Store managers

 

Figure 3. Swap lanes for stock replenishment.

Figure 3 shows a swap lanes diagram for stock replenishment at Tesco stores.

(4) Flowcharts also provide a visual way of representing the involved entities and activities in a business process. They are useful in illustrating the sequence or flow of a…