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MERCADONA

improvement through Total Quality ManagementByAvinashPradeep BazaruSainath PanjagiriSameer HussainYeshwanth.G

Introduction:

Mercadona is a supermarket chain providing basic food and hygiene products to its customers. It is a Spanish family-owned supermarket company, founded in 1977. Juan Roigs along with his brother and he bought Mercadona from his parents.

After this it was a struggle for survival for Mercadona. During the 1990s due to international retail chains coming in to the country competition increased and margins narrowed. It was a period of turbulence and change in the industry.

Mercadona started to suffer a sustainable clients loss in the second half of 2008. Facing the situation the company has put the customer back at the center of the companys decisions, taking only those steps that provide customer value.

Problems faced by MERCADONAOne of the biggest challenges faced by International retail chains had arrived in Spain, decreasing profit margins all through the supermarket industry.

It especially faced competition from WALMART.

Customer Preferences: Customers have less time, and are more intelligent, than ever before, no customer Feedback.

NO proper Supplier relationship.

The global economic crisis, which began in September 2007 with the bursting of the U.S. property market bubble, had seriously affected Spain by late 2008.

Some of the principles running in MercadonaRoig is an avid leader and had developed a set of values which he tried to instill throughout the company as universal truths.

To be satisfied, one must first satisfy others (reciprocity) The principle that the customer needs to be properly informed and employees need to be trained correctly (no one is born knowing) But if it promoted initiative, involvement, and commitment, its employees would offer customers better and better service (how you measure me is how I behave)They referred the customer as THE BOSS

apart from these Mercadona should try to implement the following TQM model.

MERCADONA TQM MODEL

Satisfying five components through TQMTHE BOSS (the customer)EmployeeSupplierSocietyCapital

THE BOSS Customer relationships: The needs of customers and consumers and their satisfaction should always be in the mind of all employees. It is necessary to identify these needs and their level of satisfaction.Price:Prescription:Time and convenienceContact:

EmployeeMercadonas management based its human resources policy on providing its employees with stability, good working conditions, training, transparency, compensation, quality of life, opportunities for advancement, stable employment and comfortable working hours.Transparency:Compensation:Quality of life:Advancement:

SupplierIt should try to appoint integrated suppliers who supplied its home-brand products.Mercadona should work closely with its integrated suppliers to optimize the assembly line.Appointing integrated suppliers dealing in products relative to the assembly line. Improvements should be considered only if they resulted in an improvement to the entire line.Try to reduce transportation and distribution costs by appointing local suppliers.

Societyby contributing to the development of society, Mercadona would increase its own potential for development. It can detect what society needs by interacting with customers.Environmental productivity. Mercadona should try to use fewer natural resources. Social impact: Creating a social friendly surroundings, as most of the stores would be in residential areas.Neighborhood development: Mercadona should try and work with the local markets and merchants and try to develop the traditional market methods and products.

CapitalMercadona should be focused on long-term profitability, continuous improvement in productivity, and reinvestment of profits to increase equity.

To improve longevity and for contionous improvement, mercadona should funnel majority of its profits back into the company.

Tools to be used for the success of the modelImplementationStrategy

Customer-based

Management-based

Employee-basedTools and Techniques

Customer surveyCustomer Need AnalysisQuality Function deployment

CommunicationLeadership

EmpowermentQuality CirclesQuality TeamsBrainstorming

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ImplementationStrategySupplier-based

Process-based

Tools and Techniques

Supplier TrainingSupplier DocumentationSupplier Certification

Quality ImprovementJust-in-TimeLead Time ReductionBenchmarkingQuality Cost AnalysisQuality AuditsISO 9000Work Flow AnalysisQuality AssessmentProcess Documentation

ImplementationStrategy

Product-basedTools and Techniques

BenchmarkingDesign of experimentsProduct Flow Analysis

Conclusion The main challenges faced by this TQM model is to introduce programs and develop tools that make it possible for everyone involved (customers, workers, and so forth) to satisfy their needs.Only those measures that satisfy all of its components should be adopted and put into practice. Those proposals that fail to do so should be rejected.

In this way we can successfully implement the TQM model for the progress and improvement of Mercadona.