BMR1010 Productivity Improvement

Productivity
Improvement

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisation or supply chain and make recommendations on how the productivity could be
improved.................................................................................................................................1
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Productivity is measure of output per unit of input from certain production procedure. An
organisation focus on labour productivity for becoming more precise. Here, productivity
improvement includes analysing present operation procedure of company and determining
specific along with high impact area of opportunity (Chaichan and Kazem, 2018). In an
organisation, productivity improvement strategies implement within a place for enhancing
efficiency and production output. Advantages from productivity improvement involve reduction
within overall cost which is combined with an increasing revenue. This report is based on IKEA
which is part of retail industry founded in 1943 and its founder was Ingvar Kamprad. Products
offering by them are ready to assemble furniture, food products and home ware which they are
serving at worldwide level.
This report will going to discuss supply chain system of company along with
recommendation on how it will improve productivity. In addition to, productivity improving
activities, tool and techniques will implement for improving future productivity of business. In
the end section of report, productivity improvement project will design along with how it will
help company in improving future productivity.
MAIN BODY
Organisation or supply chain and make recommendations on how the productivity could be
improved
Supply Chain management is broad range of activity which needed to plan, control as
well as execute a product's flow from material to production to distribution within economical
manner (Kumar and Singh, 2018). In simple term it can be said that, SCM is related to handling
of production flow of goods and services. This start from supplying of raw component till the
way to deliver final product to consumers. For accomplishing this entire task, an organisation
have to create a network of suppliers who move products along with suppliers of raw material to
the company who are dealing direct with its users. In relation to IKEA, implementation of proper
supply chain management result in several benefits such as higher profits, lower costs, new
efficiencies as well as increasing collaboration. Along with this, it also help IKEA in managing
better demand, carrying right amount of inventory, dealing with disruption, keeping cost
minimum as well as meeting demand of customers in more effective manner.
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There is proper supply chain management process which IKEA have to implement within
their working as it result in delivering products in effective manner and making customers satisfy
(Zheng and Lu, 2019). Explanation of this are as follows :-
 Planning – First step in related to planning and managing resources which is needed for
meeting demand of customers in relation to products and services. When manager of
IKEA establish supply chain it is important to determine metric because it help in
determining its efficiencies, effectiveness as well as it will help in delivering values to
customers and result in meeting goals of organisation.
 Sourcing – In this step manager of IKEA select suppliers for providing goods as well as
services which are needed for creating products ( Rantala and et. al., 2018). In addition to
this, there is requirements of establishing procedure which assist in managing relation
with suppliers. This key process involve ordering, receiving, managing inventory as well
as authorizing supplier payments.
 Execute – In this stage within that well-designed procedures are implemented for giving
perceivable shape to existing plan in form of manufactured products that are ready for
testing, packaging and delivering. Manager of IKEA design cost effective IT solution
which enable customer to build excellence. Along with this, enhance efficiency at the
time of executing supply chain management procedure.
 Deliver – When entire process reached at this stage manager have responsibility to
deliver products and services by ensuring their right quantity, place and time through
employing suitable carriers (Laufer, 2019). Manager of IKEA have to implement IT tools
which help them in tracking warehousing networks, inventory models and payment
receipts.
 Return – It is last step of supply chain management procedure as it don't involve only
product reviewing as well as its return for quality purpose but also related to managing
inventory. In relation to IKEA supply chain manager should distribute their resources
which support them in technology for faster pickups. Quick replacement and so on.
It is important for an IKEA to improve productivity as it will assist them in serving
customers within effective manner and make satisfy. Explanation of these in relation to
respective organisation are as follows :-
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