How Sainsburys Has Used Performance Management To Increase Their Quality Of Service

4105 words - 16 pages

How Sainsburys Has Used Performance Management to Increase their Quality of Service

     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 section explaining what the theory is and how it is generally applied in business. It will also contain my own experiences and insight into how operations have had an effect from my own viewpoint. It will have a conclusion on how I believe my experiences of operations management has helped me and or hindered Sainsburys. There will also be a report conclusion showing how I think Sainsburys operations strategies have evolved over time.

Theory

     This section will be looking at the theory which will be applied to Sainsburys and how it can be applied in this way. The main theories I will be looking at will be Capacity management, Open Systems, Quality Management, Performance Management and how Socio-technical Systems can be implemented into Sainsburys business.

Capacity Management

The meaning of capacity itself is being the ability to produce work in a given time, must be measured in the unit of work. There are three main types of Capacity management when looked at through operations. These are

•     Potential Capacity
The capacity that can be made available to influence the planning of senior management (e.g. in helping them to make decisions about overall business growth, investment etc). This is essentially a long-term decision that does not influence day-to-day production management

•     Immediate Capacity
The amount of production capacity that can be made available in the short-term. This is the maximum potential capacity - assuming that it is used productively

•     Effective Capacity
An important concept. Not all productive capacity is actually used or usable. It is important for production managers to understand what capacity is actually achievable.
     There are constraints on capacity management and these are normally Time and Capacity. Time may be a constraint where a customer has a particular required delivery date. In this situation, capacity managers often "plan backwards". In other words, they allocate the final stage (operation) of the production tasks to the period where delivery is required; the penultimate task one period earlier and so on. This process helps identify whether there is...

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