Operation Management--Ikea

Topics: IKEA, Value added, Management Pages: 6 (1919 words) Published: June 11, 2012
IKEA History and Company Information
IKEA retailing with its Sweedish roots, is based on a franchise system. Inter Ikea system BV is located in Delft, the Netherland being the owner and franchiser of the concept IKEA. (www.ikea.com) The company aims to sell furnitures for 10 to 30 percent less then other stores ( source - stevension ). Every Ikea employee still follows the vision quotes of Ingvar Kampard " to create a better everyday life for many people". During 2010 global sales as reported were 23.1 billion. It took long time and careful planning for Ikea to offer sophisticated products to customers at reasonable price. According to slack operation (2010) management deal how company manage its operation production and sales being two important part of it. Ikea embracing the idea of operation management creates and implements strategies in a way that the requirements of the customers and satisfied in optimum level. This report shows how IKEA thought being an outsder have reacted all common man's house and has creates its own place among the necessary items of their lives. This report represents how of corporate performance objectives of IKEA are presented base on customers needs.This report also identify the process type of IKEA and evaluates it in the context of how it meets the corporate performance objectives of it. Beyond furnishing and furniture IKEA has diversified the idea of prefabricating housing.

IKEA Operations The operations management of IKEA focuses on design and management of product, services, products and supply chain. IKEA also considers the acquisition, development and utilisation of resources that is to be delivered through good and service that their clients wants. The purvey of IKEA operation management ranges from strategic to tactical and operational levels. So in nutshell the arena of Ikea operation management are as follows

a)how the company establish and manage customer requirements
b)use of customer requirements for its products and services
c)the operational system and process it used in it's operation
d)capacity planning, process layout and product services/ scheduling. The mission of Ikea is to reach at every common peoples house. To active the mission the core principal that Ikea follows are quality and economy. The three point in the life of Ikea products are

a.Creation - The design and layout of the IKEA products have its own individuality and is designed by the company itself. To make it a necessary household things all IKEA products have its own name that increase familiarity and reogrition of the product.

b.Range - The span of IKEA operation is aimed to be broad. To touch every section of customer in terms of weather, in terms of age and in terms of sophistication IKEA products are designed accordingly.

c.Use - IKEA products passes through three types of trial that assesses its strength, workability and durability. Operations Management of IKEA design products which can be flat packed efficiently. In the most effective locations and appropriate size site stores are located. A smooth and effective flow store layout is designed. The operation management of IKEA maintain safely of storage area and cleanliness. It also arranges for fast replenishment of products. IKEA always monitor the quality of its service to customers and increase it when required. operation practice are continually inspected and upgraded. Maximisation of customer satisfaction and minimisation of staff dissatisfaction fall to be an integral of IKEA operation management.

IKEA Operation Strategy Ikeas mission is to offer variety of home furnishing items of good design and features, quality and...
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