Topics: Management, Quality assurance, IKEA Pages: 15 (8301 words) Published: October 29, 2014
MADDI UNIT 34 OPERATIONS MANAGEMENT IN BUSINESS I ACKNOWLEDGE THAT THIS WORK IS THE COMPLETELY MY WORK AND NOT COPIED FROM ANY SOURCE AND THEREFORE ATTESTED AS THUS __________________________ Introduction This essay is about evaluating the operations management or the production process of the IKEA Furniture Company. The IKEA Furniture Company was founded in 1943 in Sweden and as at January 2008 it was pronounced as the largest furniture retailer in the world. The company produces the ready to assemble furniture like beds, chairs accessories and home appliances. The vision of the company is stated in their slogan as To create a better everyday life for the many people. The company presently has 315 Stores in 27 countries of the world. One of the major aims of the company is offering quality product at a very low price and which form the basis of this essay which is to evaluate how to achieve a good quality product at a very low cost. Other aims of the company are sustainable growth with ability to invest in the future. Interestingly and of great relevance to this essay, the company has 44 production units and 18,400 production staff. The company has 9,500 ranges of products and 28 Trading Service Offices. However, our aim is to establish the impact of Operations Management in the business of IKEA Furniture company which form the case study for this work we have reviewed the importance and the functions of the operations management and the process model adopted by the Ikea company in order to achieve a maximum and quality output. We have also considered the appraisal of the three Es of operations management which are the Efficiency, Effectiveness and the Economy. We have also access the impact of the tension between cost minimisation and the quality maximisation in the IKEA business. That is how the IKEA can achieve producing quality furniture at a much reduced cost of production simultaneously. Furthermore, we have also used this medium to evaluate the significance of the five performance management that underpin the IKEA furniture operations management to organisations. In order to assess the production process of the IKEA we have reviewed the impact of the Linear Programming process and the Critical Path Analysis to the operations management of the organisation. Additionally, we have justified the need for the operational planning and control in the operations management of IKEA which enables us to produce operational outcomes and produce a network plan which indicates the resultant critical path of the production process in the IKEA business. Lastly we have justified how the quality management techniques are applied to improve operations of the IKEA Furniture Productions. Conclusively, in achieving the above learning outcomes and other parameters we have used the diagrams in illustrating our findings and we have sourced information from relevant sources which include the Relevant Websites, Magazines, Newspaper, Journals and Articles. Different information and data obtained are analysed and tailored towards reflecting how the IKEA Furniture Company achieve producing high quality furniture, appliances and home accessories at a much lowered cost. Unit 34 Operations Management in Business Learning Outcome 1 Understand the Nature and Importance of Operational Management. Operations Management has to do with how organisation or businesses produce goods and services. It refers to the management concept that has to do with controlling, overseeing and designing the process of production and business operations in the production of good and services. It is the process of measuring the efficiency and effective of business operations. It has been defined in another context as how organisations produce or deliver the goods and services that provide the reason for their existence (Greasley A, 1999). The term Operations Management can be used to describe the activities related to both manufacturing and increasingly to the service...
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