Premium Essay

Ikea Operation Management

In: Other Topics

Submitted By ashkenz
Words 1501
Pages 7
1.
Both product design and process design are interrelated. The process design means ‘the process by which some functional requirement of people is satisfied through the shaping or configuration of the resources and/or activities that compose a product, or a service, or the transformation process that produces them’. Slack et al., (2010, pp.86) All operation managers are designers of the products and operation management is an activity that manage resource which is devoted for production and delivery of products and services. Additionally (Slack et al, 2008) lecture notes of I G Perera. ‘It is about the way in which organisations produce goods and services.’ The below assignment will show how IKEA’ operations management has made IKEA to one of the most successful furniture retailer in the world. The assignment is divided into three parts. The first part will analyze the elements of IKEA and operation management. The second part will identify the main V’s used by IKEA and design process. The third part will identify how IKEA has met customer needs and will explain how the business objectives of IKEA is met. At the end, recommendations for IKEA will be provided and a conclusion is drawn.

Every organization has a part for the operations functions as all organization produce products or services. Research has noted that most important element in IKEA furniture’s is that they are self-assembled. A view of the IKEA furniture is outlined in Why You Love That IKEA Table, Even If It’s Crooked, by Shankar Vedantan ( February 06, 2013) Most humans would want to say that I made it, it is my products, that is what IKEA has done. Further the furniture’s are made out of timber, in planet friendly manner, which would result in going to earth after the end of the life cycle in operations management.

Operations strategy
Operations strategy

Supply network design
Supply…...

Similar Documents

Premium Essay

Ikea Operations Management

...Operations Management:IKEA IKEA’s BUSINESS IDEA (www.ikea.com): “We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them." Introduction At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the production process which not only leads to the need for complex and flexible processes but also entails high unit costs. Third, variation in demand will however be low, or at the least predicable (holiday periods for example) so advanced planning is possible which eliminates the need to set resources aside as a “capacity cushion” for unexpected demand. Lastly, IKEA – again as most retailers – have high process visibility, or in other words display a high degree of direct customer experience, which underlines the importance of dedicating sufficient attention to the shopping experience in all its facets. In what follows, and in line with the questions for this TMS, the implications of the five performance objectives to IKEA will be......

Words: 2842 - Pages: 12

Premium Essay

Operation Management on Ikea

...1.0 Introduction An objective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strength and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goods and services is being monitoring and managing. Operations management is the activity of managing the resources which produce and deliver products and services (Slack, Chambers and Johnston, 2010). Operations management is important because without a proper operations management, an organization will unable to transform their knowledge, information, skill and resources to produce products or service in order to add value and satisfaction to their consumers to generate profits. 1.1 Background of IKEA IKEA, an internationally well-known Swedish home of furnishing, started its operation in 1943, by founder - Ingvar Kamprad. It is the largest Swedish home furnishing retailer and designer in the world. IKEA is very famous with it low price concept where they produce and offer well-designed and functional home furnishing products at price as low as possible with variety of choices. They target to sell their brand to as many as possible of consumer who......

Words: 1851 - Pages: 8

Premium Essay

Ikea - Product and Brand Management

...Product and Brand Management Ikea Assignment 1 Is Ikea a successful global brand? Why has it been successful? Ikea is a very successful global brand, not because it has 226 stores in Europe, Asia, Australia and the United States with 410 million shoppers a year, not because other global brand like Wal-mart stumbled in Brazil, Germany and Japan but for Ikea’s unique cultural branding that merges the value and fashionable design to ensure the creation of an affordable contemporary household goods (not just the furniture with 5-10% sales in each country with Ikea stores) for the middle-class. This uniqueness of its corporate DNA is the main reason why the Ikea is so successful globally. The frugality of the founder of the Ikea with his desire to create “better life for many”, these two tenets are deeply embedded into Ikea’s corporate DNA. The frugality combining with the obsession with design forming a unique brand that became a global cult brand. As a global brand Ikea stands for 1) Unique household products with contemporary design, affordable prices that will inspire consumers 2) A gathering place the global tribes that are sensible in cost, design, and green environment. 3) Egalitarianism. The Ikea as a corporation is very flat, the executives performs first-line employees’ job in an “Anti-bureaucracy Week” 4) High Competitive. Constantly dropping the price (2-3% annually) to provide the best values for customers (consumers). What is the relationship between......

Words: 1241 - Pages: 5

Premium Essay

Operation Management

...What is operations management? Operations management defined Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services. 1 The consultancy services market – % of world revenues of 40 largest consultancy firms Financial 6 Organizational design 11 Marketing / sales 2 Operations and process management 31 Benefits / actuarial 16 Corporate strategy 17 IT strategy 17 The operations function is fashionable! Back office operation in a bank Kitchen unit manufacturing operation Retail operation They are all operations Take-out / restaurant operation 2 The best way to start understanding the nature of ‘operations’ is to look around you Everything you can see around you (except the flesh and blood) has been processed by an operation Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation Operations Managers create everything you buy, sit on, wear, eat, throw at people, and throw away A general model of operations management Transformed resources … Materials Information Customers Design Input resources Transforming resources … Facilities Staff Operations management Planning and control Operations strategy The operation’s strategic objectives Operations strategy The operation’s competitive role and position Improvement Output products and services Customers 3 Operations management at......

Words: 1904 - Pages: 8

Premium Essay

Operations Management

...CHAPTER 2: Company Overview 5 CHAPTER 3: Operation Management an Introduction at ETA 6 3.1 Managing the 5Ps 6 3.1.1 Concept of 5Ps In Operation Management 6 3.1.2 Managing the 5Ps of Operation Management by ETA 7 3.2 Transformation Process 8 3.2.1 Concept of Transformation Process 8 3.2.2 Practice Of Transformation Process In ETA 9 3.2.3 Implication & Analysis On Transformation Process in ETA 9 3.3 Vs Of Operations 11 3.3.1 Concept Of 4Vs in Operations 11 3.3.2 Implications of 4Vs in ETA 12 CHAPTER 4: Process Design 13 4.1 Concept of Process Design 13 4.2 Process Design In ETA 14 4.2.1 Production Process Involved 14 4.2.2 Production Strategies Involved 15 4.3 Implication and Analysis of Process Design in ETA 15 CHAPTER 5: Plant Layout 17 5.1 Concept Of Plant Layout 17 5.2 Plant Layout Used In ETA 17 5.2.1 Cellular Layout 18 5.2.2 Process or Functional Layout 18 5.3 Implications And Analysis of Plant Layout in ETA 18 CHAPTER 6: Capacity Management 19 6.1 Concept Of Capacity Management 19 5.2 Capacity Management In ETA 20 5.3 Implication And Analysis of Capacity Management In ETA 20 CHAPTER 7: Conclusion 21 Reference 22 CHAPTER 1: Executive Summary CHAPTER 2: Company Overview Operation management involves the management of the systems and process that are required to create the goods and/or services. Stevenson (2007) stated that operation management is the management of the part of the organisation......

Words: 3476 - Pages: 14

Premium Essay

Operation Management

...Chapter 1 Competing with Operations Foundations of Operations Management, Ritzman & Krajewski © What Is a Process? • Process – Activities that transform inputs, add value and generate output(s) • Examples: – Manufacturing process • Furniture manufacturing: cutting or staining wood – Non-Manufacturing Process • Checking in passengers Foundations of Operations Management, Ritzman & Krajewski © 1-2 Processes & Operations Internal and external customers Inputs • • • • • • • • Workers Managers Equipment Facilities Materials Services Land Energy Processes and operations 1 3 5 2 4 Outputs • Services • Goods Figure 1.1 Information on performance 1-3 Foundations of Operations Management, Ritzman & Krajewski © Nested Processes at a Large Bank BANK Operations Cash Management Loan operations Trading operations Others ATM Support Customer transactions Service quality Others Maintain Cards Research problems Site analysis Others Retail Distribution Compliance Finance Human resources Teller Line Transactions Track branch sales ATM hotline Others Process Deposits Cash checks Safe deposit boxes Others Products Auto Finance Cards Mortgages Others Credit Applications Manage retail products Originate lease portfolio Others Loan Documentation Review credit standing Obtain manager approval Others Wholesale Trading Loan administration Leasing Others Fund Management Market making spot Dealer support Others Prepare Reports Attend......

Words: 1331 - Pages: 6

Premium Essay

Operation Management

...Question 1 Operation management is the term used in managing resources for produce and delivery of goods and services, by using the most cost-saving and effective ways (Pycraff, 2000). Consequently, it would be clear that operation management is important in CDS. This is because a well operation management can lead to the minimization of production costs, successfully met with customer’s requirement and the increase of business revenues. Operation management is directly responsible to design the operation and system processes for the products and services. Next, operation management is requires to plan and control the activities of operation, yet they have to detect and respond to deviation from the operation. (Wps.pearsoned.co.uk, 2010) In general, these responsibilities can be emphasized through Sandra White, the Planning Manager in Concept Design Services (CDS) whose is in charge for all manufacturing and distribution activities in the organisation. For example, she has subcontracted some of the lower end products assembling jobs to other smaller moulding companies as to increase the production volumes and control its production costs. Furthermore, operation management in an organisation is indirectly responsible to work closely with other functional areas of business, for instance, Marketing, Accounting and Finance and Human resources (Pycraff, 2000). Also, they will have to encourage those functions to suggest ways that can improve its “service” to the rest of......

Words: 2088 - Pages: 9

Premium Essay

Operation Management

...Topic 1 I Operations Management 1 List of Key Topics 1. Introduction to Operations Management 2. Performance Objectives & Operations Strategy 3. The Design of Products and Services 4. Facilities Location 5. Demand Forecasting and Capacity Management 6. Process Types 7. Facilities Layout and Flow 8. Process Design and Technology 9. Performance Improvement o Operations Management All organizations have an operations function Operations Function of an Airline – Fly passengers Operations Function of a Hotel – To provide accommodation 1 Operations Management is broad term for a range of activities to ensure that function is carried out efficiently and effectively The Evolution of Operations Management The Production Era; The Sales Era; The Marketing Era Operations differ in terms of The Volume of their output The Variety of their output The Variation of their output The Visibility which customers have of the process 2 Topic 2 Performance Objectives & Operations Strategy The Systems Approach 1 Synistanai – “bring together” or “combine” 2 Bringing together a set of interrelated parts to accomplish a set of objectives. 3 4 Transformational Model 5 Inputs Transformation Outputs 6 7 Operations Performance Objectives Quality – Doing things...

Words: 1294 - Pages: 6

Premium Essay

Operation Management

...Toyota Operations Management maintenance of the production of goods or services 1. Introduction Operations management is the maintenance of the production of goods or services that a company is developing for sale. The management team is charged with the task of ensuring a profitable and safe production system, and also ensuring that resources are allocated and used in an efficient manner, minimizing waste in labour and material resources. In order to meet these goals, the management team thus has to attempt to find the best operations strategy available for their particular situation and product. The biggest challenge for any organization and its operations is to try to maximize productions by cutting down on waste, Finding the right balance between getting the production up to the required standard by using the resources available to the optimal level. There are many strategies that can be used by an operations manager depending on the needs of production, and in the first section we will examine some existing operation management strategies, and in the second section we will examine the effectiveness of these strategies, and how well they fit in with the goals of the target organization, Toyota. 2. Operations Managers Role The Role of an operations manager is of utmost importance as any operations manager who can effectively utilize an organizations resources to efficient effect by producing outputs of a standard & sustainable quality, contributes to the......

Words: 1888 - Pages: 8

Premium Essay

Operation Management

...2 Task 1: Nature and the Importance of Operation Management 2 Task 2: The Link between Operation Management and Strategic Planning 4 Task 3: Organizing a Typical Production Process 6 Task 4: Application of Relevant Technique to the Production of an Operational Plan for an Organization 7 Conclusion: 9 References: 10 Introduction Operation management is a part of overall function of a business organization. It means planning, organizing, staffing, leading and controlling the resources of a company those are used to make goods or services of that particular organization. So it can also be said as a part of management function. Operation management is important for any kinds of company including for- profit, not-for-profit, social, commercial etc. IT performs the prime managerial activities of any organization. Weather the organization is service oriented or profit oriented to achieve goals it needs to manage its resources like human, technological, informational etc. organizational management makes the way for a better combination of these resources. In this assignment the nature and importance of operation management will be described. The importance of organization management for an organization, its operation in a selected organization and evaluation of operational management of a selected organization by using a process model also will be described. There is a link between operation management and strategic management it will also be explained. The......

Words: 3462 - Pages: 14

Premium Essay

Operation Management

...Chapter Solutions Operations Management.pdf DOWNLOAD HERE CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to ... http://users.ipfw.edu/khamaljn/P301/Class_Notes/Solutions-Chapter12.pdf 1 BUS P301:01 CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to Selected Questions Summer II, 2009 Question 12.5 This is EOQ with D = 19,500 units/yr; H = $ ... CHAPTER 11 Operations Management http://www.eng.uwi.tt/depts/mech/ugrad/courses/meng3006/Week09b.pdf Operations Management, ... • To decouple operations ... CHAPTER 11 11-39 Inventory Management Economic Production Quantity I n v en t o r y L ev el CHAPTER 10 Operations Management - Academic Resources at ... http://academic.missouriwestern.edu/mlewis14/MGT%20416/Lectures/My%20Chap010.pdf Operations Management 8th edition 10-2 Quality Control CHAPTER 10 Quality Control McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson PRODUCTION/OPERATIONS MANAGEMENT - … http://faculty-staff.ou.edu/B/Samir.Barman-1/POMsp02.doc PRODUCTION/OPERATIONS MANAGEMENT. BAD 5262 . SPRING 2002. Course Instructor: Samir Barman, Ph.D. ... Apr 02 Chapter 3 All Example Problems. Operations in a PR: 3.1-3.6 Chapter 7 Accounting for Financial Management http://harbert.auburn.edu/~yostkev/teaching/finc3630/notes/Chapter7solutions.pdf Chapter 7 Accounting for Financial Management ANSWERS TO END-OF-CHAPTER QUESTIONS 7-3 No, because the $20 million of retained earnings would probably not be held as......

Words: 852 - Pages: 4

Premium Essay

Operation Management

...Welcome to OPERATIONS MANAGEMENT Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. ● Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. ● Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your......

Words: 12297 - Pages: 50

Premium Essay

Operations Management

...Operation Management Operation Management Assignment 1 [Document subtitle] Assignment 1 [Document subtitle] Toh Yin Sheng CT0196844/14208417 FT UCD BBS 22 C Dr Dan Maher & Dr Mogan Swamy Toh Yin Sheng CT0196844/14208417 FT UCD BBS 22 C Dr Dan Maher & Dr Mogan Swamy Assignment 1 Assignment 1 Content Company Introduction 2 Operation Management Results Competitive Advantages 3-4 Conclusion 4 References 5 Company Introduction PTS Marketing group of companies, which founded in 1999, act as a service provider of automotive aftermarket supplies mainly active in Malaysia and Singapore. With the mission of “Professionally Targeting Success”, PTS Marketing Group aims to provide quality products and superior services to the customers. As a service provider, in order to deliver the commitment, PTS Marketing Group states a combination of operations management that allows and drives the company towards the mission. The company currently carrying several brands as sole, exclusive distributors, such as Federal Tyres, Lassa Tyres, Core Racing Wheels, HKS, Vitech Lubricant, Toyo Tyres and more brands to extensively fulfil the customers and market needs. Operation Management Results Competitive Advantages Every firms or organizations have their own unique operation systems and styles generate from the characteristics and internal cultural. This is essential to figure out, develop and design the operational......

Words: 1245 - Pages: 5

Premium Essay

Operation Management

...holding company, mainly engaged in real estate development in Malaysia. It does this by three parts: property development, education, and a clubhouse. The company develops, build and sell residential, commercial, industrial, leisure, and institutional property; management of private and international schools; and management and operation of the club. It is also involved in the sale of land; investment property; purchase of building materials; and providing landscape management, project management, management and administrative services. The company was founded in 1996 and is headquartered in Seremban, Malaysia.Matrix Concepts Holdings Berhad, a Negeri Sembilan according to property developers, it has earned a reputation for developing quality and affordable residential and commercial buildings since its incorporation in 1997.So far, the formation of a strong track record of completed development projects worth over one billion US dollars RM2.4 gross development value (GDV) of about 1900 acres of land in Negeri Sembilan and Johor. Part (A) Operations Management is the management of business practices to create the highest level of efficiency in the organization. The purpose of the operational management is the conversion of materials and labor into commodities and services as much as possible to maximize the profits of such an organization. Direct responsibility method individual or team, is responsible for all the necessary clients will need to go to......

Words: 2064 - Pages: 9

Premium Essay

Operations Management

...The main purpose of this paper is to focus on the how IKEA Company approached its operation management. Particularly, it covers the following: how the company establish and manage customer requirements, secondly how does these customers requirements used for the company’s product and services, then, third covers the operational systems and processes it used in its operation, fourth consists of capacity planning, process layout, and product services/scheduling, inventory and projects were managed in the organization. And, lastly is on why and how monitoring and evaluation of operation were carried out by the company. This paper also provides empirical findings and application of relevant theories that will help readers to really understand how the company operates and what relevant theories it applies. Introduction In most companies these days whether it is local or multinational companies, they are always faced with big challenges. Challenges those are sometimes insurmountable to overcome like continuing to be innovative or problems related to cost. These are two of the most common challenges that company continuously faced, but these problems may also be overcome only if the company operates in a way that it focus mainly in its main strength and at the same time focusing on the right market, where they would know that they have the advantage. In this paper with IKEA Company as the main focus, it will give us exactly how typical multinational companies manage to operates.......

Words: 6125 - Pages: 25

I.H. Music Productions | terafilez.com | The Colonists [L] [ENG] (2018) (1) [GOG]