Operation Management of Ikea

Topics: Inventory, Supply chain management, Management Pages: 8 (2150 words) Published: September 15, 2010
Executive Summary:

This report is about operational aspects. We have selected Hannan Prints, the manufacturing firm to analyse the supply chain. This paper scrutinize the crucial aspects of Hannan prints supply chain network, its plans and the implementation of strategy. By putting into practice different supply chain approaches, the firm will increase the benefits of supply chain network.

In this report we have focused on supply chain inventory management and technology selection practices and how it is beneficial for the firm. In the firm operations are linked with different strategies. For example the change in supply chain has an effect on inventory management as well as technology selections. At the end we have given some recommendations and conclusion for increasing its efficiency by supply chain.

In this report we have tried to focus on interesting features and strategy adopted to maximize the supply chain. With critical analysis of Hannan Print supply chain, we provide benefits and recommendation and lastly provide conclusion.


The motto of Hannan Print is “Creating Great Impressions” which is useful in conducting business. Hannan Print is the Australian leader in printing industry that prints broachers and advertising materials and different types of newspapers and magazines according to the demand of customers. It was founded in 1968; Hannan Print after 34 years of outsourcing printing work the company acquired its first printing press machine.

Hannan print NSW houses the largest bindery in Australia and in addition to that the company is registered to ISO 9001 for quality management and ISO 14001 for Environmental Management and has been awarded at the same time in February 2007 in recognition of systems it has adopted.

Operation management aspects in Hannan Prints:

Operation management is the business area concerned with production of better quality and services and to make sure that business operations are effective. Every organisation needs planning and control, which needs information on resources and demand level. There are five objectives of planning and control: Quality, Speed, Dependability, Flexibility and Cost. To fulfil all these requirements, Hannan Prints take certain actions which are as under.

Quality is a constant conformance to customers’ anticipations. It has major influence on customer satisfaction or dissatisfaction. Quality means that the product is reliable. Hannan print always believes in creating great impressions. For creating better impressions on their customers, the company mainly focus on providing the best quality then their competitors. For example, they always make sure that the quality of papers, ink and machines are good before starting any job. Once everything is checked then they start printing. Thus by providing quality the cost is reduced as there are less chance of product return.

Along with quality of product, the speed is very important aspect as its essential for any firm to give fast output in required time limit. Speed relates to time management. It is the

responsiveness to the customers. By doing work speedily, the inventory is managed as there is low work in progress as work is fast and overheads are low. The speed of work will create good impression on customers and maintain them for long term. Speed reduces inventories and risk.

Dependability is keeping promises to customers as provide products or services when promised. It will give dependability advantage to its customers. It saves time as all the resources are fully utilized when needed. It gives stability as dependability builds trust among different parts of operations. It also saves money in a way that effective use of time results in reduction of extra cost.

Flexibility is the ability to change in a number of ways. It means different things indifferent operations. Hannan print is flexible to introduce or modify new products or services. They also...

References: Slack N., Chambers S. and Johnston R. (2007). Operations Management (5th ed.) England: Pitman Publishing
Heizer J. and Render B., (2008). Principles of Operations Management. (9th ed.) New Jersy: Prentice Hall Inc
Retrieved on 1st February, 2009
Retrieved on 31st January, 2009
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