Operation Management & Ikea
INTRODUCTION
The following assignment is based on operations managements within IKAE. The aim of this unit is to analyse the operations functions within the organisation by understanding strategic operations management, the operations process and planning and control.
“Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers and the analysis of queue systems”
(http://en.wikipedia.org/wiki/Operations_management).
About IKEA:
IKEA is a privately-owned company founded in Sweden by Ingvar Kamprad. He first started to sell pens, wallets, picture frames, table runners, jewellery and nylon stockings and decided to add furniture in 1947. IKEA has now around 260 stores, much of which are located in Europe, the United States, Australia and Asia.
Nowadays IKEA is known for selling modern and utilitarian furniture at low prices their vision is "To create a better everyday life for the many people". IKEA motto is "Affordable Solutions for Better Living".
Their operations management are strongly focused on achieving this goal; they use their resources effectively to gain profit by developing a more economic way for the production of their wide range of service. This has involved them in working closely with their suppliers in order to control aspects of their business from the production line.
Unlike most furniture stores, IKEA sells goods which need to be assembled by the consumer; this has enabled them to use space more efficiently in their warehouse. The company has developed methods to satisfy customers with their Unique Selling Point (show room, children’ area) and a wise use of technology (stock control, internet).
IKEA’s operations include the way they manage the processes, this includes the way they run their
The following assignment is based on operations managements within IKAE. The aim of this unit is to analyse the operations functions within the organisation by understanding strategic operations management, the operations process and planning and control.
“Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers and the analysis of queue systems”
(http://en.wikipedia.org/wiki/Operations_management).
About IKEA:
IKEA is a privately-owned company founded in Sweden by Ingvar Kamprad. He first started to sell pens, wallets, picture frames, table runners, jewellery and nylon stockings and decided to add furniture in 1947. IKEA has now around 260 stores, much of which are located in Europe, the United States, Australia and Asia.
Nowadays IKEA is known for selling modern and utilitarian furniture at low prices their vision is "To create a better everyday life for the many people". IKEA motto is "Affordable Solutions for Better Living".
Their operations management are strongly focused on achieving this goal; they use their resources effectively to gain profit by developing a more economic way for the production of their wide range of service. This has involved them in working closely with their suppliers in order to control aspects of their business from the production line.
Unlike most furniture stores, IKEA sells goods which need to be assembled by the consumer; this has enabled them to use space more efficiently in their warehouse. The company has developed methods to satisfy customers with their Unique Selling Point (show room, children’ area) and a wise use of technology (stock control, internet).
IKEA’s operations include the way they manage the processes, this includes the way they run their
Bibliography: Book Johnston Robert, 1993, 2003, Cases in Operation Management, Prentice Hall, Essex, IKEA Corporate Social Responsibility, 2005 Websites