Operations Management

4360 Words Apr 20th, 2005 18 Pages
Introduction

This report will show how Sainsburys have used performance management to increase their ability to provide a quality service and gain a competitive advantage, it will also show how systems have been implemented to achieve this and what Sainsburys have changed in recent years to achieve the competitive advantage it was looking for, The main area Sainsburys have changed is there Supply chain which had a cost gap of around £60 million. It will also look at how the operations functions carried out by Sainsburys can be linked in with other areas of the business like Finance, Human Resource Management and Marketing. The main contents of this report will be based on the theory about performance management; it will start with a
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The Diagram on the next page is a visual example of the explanation below,

Raw materials or customers form the input to the organisational system and finished goods or services form the output. The environment through competition will influence the feedback that the organisation receives which will then be processed to either improve the goods or service before it is reproduced to allow the cycle to begin again. The changing economic situation, changing values in society, new alternative products or services and many other factors demand adaptation within the organization if it to survive.

Quality Management
The totality of features and characteristics of a product/service that bear on its ability to satisfy stated or implied needs. BS 4778 (1987)
Working definition: "FITNESS FOR PURPOSE"

Many people have come up with methods and statements which are available to businesses to look at and use to keep on top of quality management, the people who will be mentioned will be Deming, Crosby and Ishikawa.

Deming emphasises the statistical control of Quality in all stages of production, maintenance and service.

 ‘The analysis of errors, for either type or cause, will help control errors. '

 ‘You cannot inspect quality into a product; you must build in quality right from the outset. '

Below is the Deming/Shewhart Cycle.

Crosby had four absolutes which he believed you

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