Ikea Operations
QUESTIONS:
1. How is the IKEA operations design different from that of most furniture retail operations ? Use the four dimensions of operations (volume, variety, variation and customer contact) to characterize these differences.
2. What do you think might be the major problems in running an operation like IKEA ?
3. What do you identify as the “operations function” within IKEA ? How is this different from the marketing function ?
1)
Differences: Large volume, Design the flat-packed products easy for assembling, location of the stores-outskirt of the town, physical layout, design of the stores, ánti-service’ approach to service, quality service to customers, management style and staff involvement.
Characterization:
| |High |Low |
|Volume |IKEA |Most furniture retail |
| | | |
| |In fiscal year 2010, sold $23.1 billion worth of goods |Low repetition |
| |About 12,000 types of product |Less systemization |
| |Low unit cost |High unit costs |
| | | |
|Variety |Most furniture retail |IKEA |
| | |
1. How is the IKEA operations design different from that of most furniture retail operations ? Use the four dimensions of operations (volume, variety, variation and customer contact) to characterize these differences.
2. What do you think might be the major problems in running an operation like IKEA ?
3. What do you identify as the “operations function” within IKEA ? How is this different from the marketing function ?
1)
Differences: Large volume, Design the flat-packed products easy for assembling, location of the stores-outskirt of the town, physical layout, design of the stores, ánti-service’ approach to service, quality service to customers, management style and staff involvement.
Characterization:
| |High |Low |
|Volume |IKEA |Most furniture retail |
| | | |
| |In fiscal year 2010, sold $23.1 billion worth of goods |Low repetition |
| |About 12,000 types of product |Less systemization |
| |Low unit cost |High unit costs |
| | | |
|Variety |Most furniture retail |IKEA |
| | |