Functions of Operation Management in IKEA

Added on -2020-02-14

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OPERATIONMANAGEMENT
Table of ContentsOPERATION MANAGEMENT.....................................................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Operation management importance......................................................................................11.2 Functions of operation in IKEA............................................................................................21.3 Evaluation of operation management using process model..................................................2Task 2...............................................................................................................................................32.1 Importance of 3 Es to IKEA.................................................................................................32.2 Cost minimisation and quality maximisation impact in organisation ..................................42.3 Significance of performance objective..................................................................................4TASK 3............................................................................................................................................53.1 Assess how linear programming adds value to a given production process. .......................53.2 Critical path analysis and network planning.........................................................................53.3 Justify the need for operational planning and control in a selected production process ......6Task 4...............................................................................................................................................74.1 Operational outcomes for IKEA...........................................................................................74.2 Network plan and critical path.............................................................................................84.3 Justification of quality management techniques...................................................................9CONCLUSION................................................................................................................................9REFRENCES.................................................................................................................................11
INTRODUCTIONThe following report is prepared in order to make the user understand about theimportance of management operations in the business. IKEA is one of the most leadingmultinational company which is dealing in the furniture business which are designed in theunique manner. It was founded in 1943 . In this report the various concepts of operationmanagement that are followed in the IKEA will be discussed in detail that how it is providingbenefit to the business (Niknam,Meymand and Mojarrad,2011). Thereafter different Es will bediscussed in order to make the learner understand about its importance in the business. Also thedifference challenges faced by the cited company will be discussed in detail.TASK 11.1 Operation management importanceOperation management is the process through which any business achieve effectivenessand efficiency in the business. IKEA is dealing in the furniture business therefore a large varietyof operational activities take place in the business on daily basis like manufacturing, packaging,assembling etc. The system of operation management help the cited company in various forms:Helps in maximisation of profit.Assist in expanding the business by converting the material and labour into final outputwhich is more effective. This system keep strong supply chain so that the operations do not get disturb due tounavailability of raw material by making sure that the required amount of raw materialis made available as and when require (Bahmani-Firouzi and Azizipanah,2014). It is the duty of the operation manager that the quality of goods are maintained that tooon the reduce prices so that the cost of production can be controlled. IKEA is having its suppliers from more than fifty countries therefore it is a tough task tomaintain coordination with each one of them in which operational manager helps in establishingeffective communication among them. Wastage is also reduce to minimum by the system ofoperation management by doing the time management and allocation's of resources in the perfectmanner. The importance of operation management has increased due to the change in theexternal environment. Now customers has become more educated and give more value to the1
quality of product and do proper research before buying any particular product(Moghaddam,Seifi and Niknam 2012).1.2 Functions of operation in IKEAThere are different functions which are performed by the operation management system.These are the core functions which need to be performed effectively as they are important forIKEA. These functions are performed with the main aim of bringing efficiency in the businesswhich help in reducing the total cost of the production. Different functions performed by theoperation management for the cited company are as follows:Designing- As the cited company deals in the product which need to be designed in themost attractive manner so that customer get attracted towards the products and keepbuying their products. It is the duty of the operation management system to select thequality designs keeping the standards high.Planning- for any business planning is most important. It act as a guidance to wholeorganisation as through planning the whole project is clearly understood in advance andall the precautionary steps are taken in advance.Maximum use of plant at minimum cost- Operational management help the employees intaking the best use of the provided resources by using them efficiently. This help IKEAin producing more output from the same amount of input used (Heizer and Barry,2013).Allocation of resource- As different resources has their different use it is important thatthey are allocated effectively. Huge investment is done in purchasing the resources formanufacturing and other process therefore it is important these are invested in a way thatthey give maximum output to the business.1.3 Evaluation of operation management using process modelAs the operation management deals maximum with the ground activities like the levelwhere operations take place it has to simple. It is necessary for it to to be smooth so that it canhelp the employees in carrying out the different activities, it should make simple strategies whichare acceptable and understood by all. If the operation management system is complex than it willhave its direct impact on the total output therefore the management need to make sure that theemployees are well communicated about how to use the different strategies so that effective useof it can be taken (Mohammadi,Sedaghati and Kavousi,2014). Process model helps in improvingthe operation management system as it helps in understanding the different process require to2

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