Operations and Project Management: A Case Study of IKEA

This report discusses the implementation of operations management principles in IKEA, a leading retail organization. It includes a review and critique of the organization's operations management, analysis of the extent to which it meets the organization's requirements, and recommendations for improvement. The report also covers continuous improvement as a philosophy and describes the Lean principles.

Unit 16 Operations
and Project
Management
1

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Introduction to the selected organization...............................................................................4
An explanation of operation vs operations management.......................................................5
Review and critique of the implementation of operations management principles within your
chosen organization................................................................................................................6
Analysis of the extent to which the operations management of the organization in the case
study meets the requirements of the organization..................................................................8
Discussion of continuous improvement as a philosophy and describe the Lean principles...9
A continuous improvement plan, including your justified recommendations for improvement,
based on your review and critique of operations management principles within your
organization..........................................................................................................................13
PART 2..........................................................................................................................................14
Overview of the case study...................................................................................................14
PLC in context to manufacturing organization based in the Midlands................................14
Analysis of the project methodologies and tools used.........................................................14
Review and Critic of effectiveness of PLC..........................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
2

INTRODUCTION
Operation management mainly deals with approaching daily basis and strategic business
issues systematically. While in terms of project management it is associated to plan, organize,
motivate and controlling business resources to accomplish goals and objectives (Abdelhadi,
2021). In today's business world organizations are operating in a highly competitive business
environment in which operations management proves to be an effective tool or technique which
helps administration to create the highest level of efficiency of their production services.
Operation management is mainly associated with converting materials and labor into a finished
product and services to enhance business profitability. With help of managing, operations and
projects with tools and techniques company can effectively serve consumers.
The present report is conducted on IKEA which is operating its business services in the
retail industry sector and was founded in the year 1943. The company offers a wide range of
products services which range from food products, ready to assemble furniture and home with
skilled and talented employees. In this report, formative discussions have been conducted on
organization introduction along with the implementation of operation management principles in
the organization. Along with this report include discussion on continuous improvement and
recommendations for the company to make further improvement. The report also includes a
discussion of stages of PLC analysis of project methodologies and tools.
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PART 1
Introduction to the selected organization
IKEA is one of the leading organizations dealing in the retail industry sector. This company
offers a wide range of products and services that range from items like furnishings, home
machines also such countless extras. It is a notable world's biggest furniture retailer company
that consistently gives the best nature of services and products to customers around the globe. It
has been evaluated that the company operates its business services with a large number of
talented and skilled employees, those are the most important assets of the organization. The
respective company undertakes the use of best strategies and practices to offer high-quality
offerings to individuals to fulfill their requirements (Bechard, 2021). Furthermore, it has been
evaluated that respective organizations as compared to other rivals use best practices to satisfy
the needs and demands of customers which draws in the enormous number of customers’
attention. Furthermore, it has been underlined that IKEA is additionally known for its constant
item improvement, cost control, and functional subtleties by which they can foster viable valuing
techniques in any sort of circumstance. While the worldwide extension has been raised then this
organization gets immense changes in their general expense and sells its item with reasonable
value. In addition to this, it has been evaluated that with the help of efficient plan and procedure
this organization is consistently ready to deal with any tough spot of the firm and gain effective
development of their business. In addition to this, to offer high-quality products and services
IKEA utilizes specialized assets by which it can deal with its all-over capacities (Ernst, 2021). In
this manner, activity the board assumes a crucial part inside the company as it assists them with
overseeing and control all around the creating labor and products through acquiring unrefined
substance from the better providers. So they could effectively carry out those techniques which
are utilized to make successful arrangements towards firm.
Moreover, IKEA mainly emphasizes upon undertaking advantage of feedback from the
consumer after offering them products and services. With the assistance of taking feedback, they
can contemplate their shortcomings so they can bring changes and offer items to customers as
per their needs and demand. It is an extremely useful technique to impact consumer decision-
making expansively towards services and products which are being offered by the company. It
generally creates suitable benefits for the company and enhances its ability to maximize the
4

overall satisfaction of customers (Shujaat, Tahir and Tahir, 2021). Along with this, it has to
maximize organization profitability Managers off IKEA foster more supportive and better
arrangements by which they can create more plans inside furnishings and ready to accomplish
objectives and goals effectively.
An explanation of operation vs operations management
Operation management is defined as an area of management that an organization undertakes to
design and control the overall production process. It is also helpful in redesigning operations of
the business organization towards goods and services manufacturing. While if it is talked about
operation management it is a particular process that helps an organization to accomplish future
goals (Haris, 2021). It has been identified that in terms of IKEA operation embraces all the
activities which are essential for an organization to deliver and create company goods and
services to consumers. While in terms is operation management it is mainly concerned with
management designing and improvement of system as to develop services and products.
Review and critique of the implementation of operations management principles within your
chosen organization
Operation management is a technique of tool which helps organizations to take left highest
level of efficiency in the performance, products, and services. There are various forms of
principles of operation management that provide a strategic edge to an organization. In terms
with IKEA to conduct to day operations organization with the help of operation management
principles, they can maximize their growth (Huajiang and SHANG, 2021). There are various
5

forms of principles of operation management which are defined below. Operation management is
defined as a combination of various forms of services and goods and strategies that organizations
undertake. In terms with IKEA operation management which have been followed by the
company is being discussed:
Principle of Change:
Change is useful for every organization. In respect to IKEA, the manager of this specific
company normally carries out new speculations and arrangements to conduct manufacturing
system operations effectively. Accordingly, it is fundamental for a firm to change its functions
according to consumer trends and factors prevailing in a business environment. With the
assistance of this, they can maximize their overall growth and profitability.
Principle of Organisation:
It is the most significant role of operations management that gives an enormous number
of production advantages to the organization so they effectively maintain their business. In this,
it has been evaluated that IKEA works various kinds of operations that are interconnected with
one another by operation management principles. Without utilizing functional standards
particular firm could not satisfy customers and can not acquire more competitiveness as
compared to other rivals in the industry. In this, a company needs to use this principle to serve
customers
Principle of Reality:
Operations management needs organizations to focus on various sorts of issues just as
strategies. In respect to IKEA, they utilize this guideline for bringing an effective form of
solutions to overcome issues effectively serve customers. In addition to this, this principle is also
helping organizations to make solutions on a real basis.
Principle of Accountability:
Being accountable is considered as a key that is utilized by activity the leaders and
managers with the company towards assembling frameworks. In connection with IKEA,
managers consistently make fitting principles and strategies to look at the viable premise of
conveying labor and products to clients (Kaswan and Rathi, 2021). With the assistance of this,
they can accomplish their objectives and targets too. This signifies that accountability plays an
essential role in the organization.
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According to the above-mentioned analysis, it has been identified that IKEA can
undertake advantage of this traditional principle than they can effectively able to influence the
attention of a large number of consumers awareness towards the products and services. The
organization needs to maximize profitability with the help of emphasizing operation
management principal.
Various approaches to operations management:
IKEA can undertake advantage of different forms of operational approaches as to
maximize performance and fulfill consumer needs and demands efficiently. Mentioned below
operation management approaches is being discussed below:
Lean production:
It is considered as one of the most vital methodologies in which an orderly just as viable
assembling system is made by the supervisors so that every one of the exercises can be
performed successfully and lessen any kind of wastage of material (Khan and Shafiq, 2021). In
this way, managers need to use every one of the assets in a viable and suitable way. In the
current report, IKEA utilizes this methodology to lessen their additional expense just as to foster
a high quality of products and services. Furthermore, it has additionally been said that by doing
large-scale manufacturing supervisors can use every one of the assets successfully and decrease
the general expense.
Six sigma:
Aside from lean creation, another fundamental methodology incorporates various stages
like estimating, planning, improving, evaluating controlling. This is a methodology utilized by
the IKEA management tea, in request to further develop a competitive image at worldwide
commercial center. For this, it is the obligation of a better than make a successful framework just
as analyze the presentation of the association at the commercial center. This will help them in
executing operations with technologies in a work environment that can handle the mistakes and
limit the expense of the organization.
Analysis of the extent to which the operations management of the organization in the case study
meets the requirements of the organization
Organizations in the retail industrial sector are performing in a highly competitive business
environment in which there are a few companies that are utilizing various kinds of operational
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tools to run business objectives in a specific mode. In this, IKEA has an enormous number of
tools by which they can give better execution in a smooth mode. For this, there are a few levels
of operation management that the company is using to meet firms necessity, those are referenced
underneath:
From the absolute first level, the organization needs to lessen its whole expense of tasks. In
connection with IKEA, this firm has been embraced a few standards of operations management
so they can have better thoughts towards the production of services and production process (Liu,
Zhang, and Zhang, 2021). However, they neglected to apply those standards to their
manufacturing system and failed to satisfy consumer demand.
To work on the whole course of delivering services and products IKEA needs to
accomplish a qualitative and effective system by which they can give better execution towards
manufacturing goods. In this, principles of management operation assist the firm with keeping
interlinked their information that further develop fabricating interaction of firm. For the
advancement of this surviving company could carry robotics functions capacities with the
assistance of human assets to meet failed objectives and goals. So they can utilize principles to
serve customers effectively.
It has been identified that offering final products to end consumers is the next wish of
IKEA. To satisfy this interest they by and large make such sort of methodology by which they
could acquire innovations as to bring something unique to serve customers as to significantly
overcome negative impact and fulfill customer's needs (Rodrigues and Brandão, 2021). A firm is
having various sorts of issues so that here principle of reality is not a lot wonderful to accomplish
hierarchical objectives and goals.
Finally, security is considered in the as best interest of IKEA, as indicated by this firm is
expected to have effective innovation strategies concerning change principles. With the
assistance of this, they can acquire not many changes in their manufacturing process towards the
accomplishment of designated objectives and goals. Along with this, safety is the most
significant part to guard all assets like furnishings, home machines, etc. It is useful for a firm to
foster a positive image in the market region. In this, the respective principle is helpful for
organizations to accomplish organization requirements and demands.
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Discussion of continuous improvement as a philosophy and describe the Lean principles
To operate in a highly competitive environment like the retail industrial sector leading
organization like IKEA needs to undertake regular changes by making continuous improvement
plan in their goods services and another production process. This organization is required to
undertake the use of techniques and strategies to execute changes in organizational workplace
premises and align them with employees’ roles and responsibilities (Madhani, 2021). In terms of
IKEA organization management with the help of different tools of operation, management can
enhance their competitive edge in the marketplace. However, the form needs to evaluate the
current market needs of consumers to implement conception new strategies.
Continuous Improvement Plan
The continuous improvement plan of IKEA is going to be discussed as follows:
Improvement Expected outcome Current performance
level
Development in
strategies
Quality IKEA is a multi-
national organization
that offers products
and services ranging
from food and
refreshments, home
machines, clothes,
child and children
products, etc. The
company head needs to
give top-notch services
and products to
customers. As if the
organization fails to
offer quality services
and products then it
will negatively impact
IKEA is a business
organization that
offers high-quality
services and products
and increases the value
of items by adding
new elements to their
products to fulfill the
necessities and needs
of clients in a viable
way.
It is essential for the
management of IKEA
need to take on
trendsetting innovation
to inspect the
requirements of
clients. Alongside this,
highly advanced
techniques help in
working on the
productivity of staff
individuals.
9

upon organization’s
positive image in the
market segment
(Ostapko, 2021).
Promotional events IKEA is a leading
organization that is
notable across the
entire world. Along
with this, it has been
underlined that it is
fundamental for the
managers to undertake
the use of online
advertisement with the
assistance of which
organizations can
make mindfulness
about their
contributions and
extend their business
substance successfully.
At present IKEA
embraces print media
as well as social media
to advance their
contributions to the
market segment. With
the help of these
marketing techniques
helps IKEA to n draw
an enormous number
of clients and expand
its overall consumer
base.
It is important for
IKEA management to
further develop their
promoting technique
as indicated by the
changing climate to
influence the mindset
of customers towards
organization products
and services. With the
assistance of
continuous
improvement,
directors of the
organization can draw
in an enormous
number of clients at
the global level.
After-sales service It has been underlined
that IKEA is focusing
on giving after-sales
services to their clients
with the assistance of
which they can hold
them for a more
extended timeframe.
In the current
circumstance, IKEA
provides return
policies and refund to
the consumers.
Furthermore, they
additionally give
assurance to their
It is fundamental for
the top supervisory
group of IKEA to
upgrade the guarantee
time frame with the
goal that it will be
helpful for worldwide
clients. market. This
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consumers that in case
the products don't
fulfill their necessities
they can get them once
again.
thus helps them in
working on the
altruism of the
organization at the
market segment.
According to the above-mentioned continuous improvement plan it has been underlined
that to improve in overall quality and goods and services efficiency produced by the
organization. IKEA needs to implement high-tech and upgraded technology periodically
according to the changes prevailing in the business environment and by analyzing competitive
strategy (Rjoub, Iloka, and Venugopal, 2022). This will help them to make use of maximum data
from consumers and staff and make appropriate changes in the manufacturing and production
process accordingly
Six Sigma
Six Sigma is a combination of various techniques and tools that organizations undertake
to make changes in their manufacturing process (Ozkiris and Omeroglu, 2021). This form of
strategy is inclusive of which is term as important tool helpful in making improvement and work
quality and make introduction in errors within organization workplace premises. Key aspects of
Six Sigma is being discussed below:
Define:
In this underlying stage, IKEA can distinguish its general issues which could be raised whenever
in the work environment
Measure:
After characterizing every issue, the company can assess employees working
performance by applying fixed norms on a regular schedule.
Analyze:
As indicated by this phase of the DMAIC approach IKEA can examine changes by which they
have tackled their general issues.
Improve:
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In this stage, IKEA can carry enhancements through applying new ideas with the
assistance of representatives. Alongside they are likewise ready to complete not many changes if
vital.
Control:
In this last stage, high specialists and managers of IKEA are ready to control and screen
each issue by working on the norm of wastage material to accomplish objectives
A continuous improvement plan, including your justified recommendations for improvement,
based on your review and critique of operations management principles within your
organization
Planning:
It alludes to the mix of a few thoughts and ideas which is utilized by any individual for
their business just as firms. In this, the Manager of IKEA has a huge number of thoughts and
considerations to design something better to accomplish hierarchical objectives and destinations
impeccably.
Do:
In the wake of making specific arrangements, there are so many things to do. In terms
with managers of IKEA, it has been evaluated that they have responsibilities for various kinds of
thoughts to accomplish firms development and usefulness
Check:
In these elements of operations, manager individuals is having the liability to check
employees’ overall performance in respect of accomplishing wanted objectives and targets.
Act:
Further improvement into the production cycle of IKEA, the manager is expected to
improve procedures by which they can get feedback from customers and further deliver them
products and services accordingly.
Recommendations
As per the above analysis of concepts and strategies and techniques that have been
undertaken by IKEA it has been recommended to the organizations to make effective changes in
organizational structure and bring improvements in their manufacturing process and promotional
techniques. This company is recommended to make use of digital marketing and conduct regular
12

research of competitors’ strategies to offer high-quality and unique production services to
consumers in the marketplace (Rico, 2021). With the help of digital marketing advertisement
techniques and the use of innovation and uniqueness by evaluating rivals’ strategy, IKEA can
enhance competitiveness in the market segment.
PART 2
Overview of the case study
From the case study, it has been underlined that the organization has staff employed in a
range of various roles which include factory workers and office staff. From the case study
analysis it has been stated that factory and officers are on an extensive side in various buildings
while currently there is no onsite catering as a member of the project and program office which
is having a responsibility to deliver change program for the organization. As suggested by the
line manager a plan and management of the theoretical in-house projects are being done. This
will help in gaining an understanding of how the organization in real terms can translate business
objectives into the development of projects and planning and completion. This case study
identifies the to prevent objectives of the business that are looking for reducing the movement of
staff from promises during the lunch break which is leading towards creating congestion issues
in the local area and offering help staff to develop a healthy lifestyle which is a significant part of
organization CSR. This will significantly help in reducing staff absenteeism. To fulfill these
objectives of the project plan with the application of the project life cycle and review and critique
of the application of this concept is being undertaken in this report with the help of taking tools
project methodologies and leadership.
PLC in context to manufacturing organisation based in the Midlands
Project Initiation:
As per the first stage, the organization has two most important objective which is to reduce the
movement of staff from the during the lunch break, as it is leading towards creating congestion
issues in the local area and providing helpful staff to develop them healthy life cycle that will
assist the company to reduce staff absenteeism. This project will significantly assist the
organization to enhance employees’ health and wellbeing by providing them effective support
and reducing staff movement which helps in performing roles and responsibilities in an effective
13

manner both of these objectives are clearly stated and will help the organization to achieve
business goals.
Project Planning:
After project initiation, a framework can be effectively developed which helps in
applying different strategies will idea to strengthen the effectiveness of the project. With the help
of taking support of employees and other staff members all the project activities can be done
which helps in maximizing project effectiveness. Proper documentation of the different types of
aspects is needed which helps in dividing small tasks into a number of individuals. Proper project
planning will help business organisations to provide a healthy lifestyle to employees which is a
significant part of company CSR policy and also helps in reducing absenteeism which is creating
congestion issues.
Project Execution:
The project life cycle is defined as a process that helps in evaluating the launching of a
new service of project objectives. As per this stage, it is essential to identify different types of
factors that can impact business objectives in several ways. Project execution help in
implementing form strategy on various forms of strategic alliance theories to fulfill fixed goals.
In terms of the present case study execution of providing healthy lifestyle suggestions and
helping staff members to adopt healthy life cycle will be executed to reduce staff absenteeism.
Along with this by providing awareness and reducing the movement of staff from the premises
during the lunch break will be done to overcome the issue of congestion in the local area.
Project Monitoring and control:
Project monitoring is one of the most important stages in which it is essential to monitor
and control all the stages and tasks of the project as per the planned process and guidelines.
Proper project monitoring and control help in utilizing overall resources in a well-defined and
effective manner which helps in conducting tasks in a well-defined and effective manner. It has
been evaluated that with proper project monitoring present project objective can be fulfilled
under a controlled budget plan and available resources which helps in assuring positive project
outcomes.
Project Closure:
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This is the last stage of the project life cycle which helps in developing more and
effective alternatives has to fulfill desired goals. In this is it is essential to check the overall
performance of employees and make sure that all the project tasks and activities are being
conducted as per the planning process. This will help in making improvements in working
standards after forming effective ways to fulfill desired goals.
Gantt Chart:
Gantt chart is defined as a bar chart that an organization undertake in order to evaluate
and identify overall project schedules. Gantt chart was first coined in the year 1915 by Henry
Gantt. With the Gantt chart Henry aim towards providing help organization among the execution
of project activities as per the time. Furthermore, it t has been identified that this chat is inclusive
of the x and y-axis which identifies how employees are required to perform their roles and
responsibilities so as to accomplish different activities improper framework in time. In terms of
present case study with the help of can chat all the business objectives can be fulfilled effectively
with particular date and time. This helps in fulfilling the objective of reducing staff absenteeism
and overcoming the issue of confusion which is created due to high moment of staff from the
premises.
15

Work Breakdown Structure:
Work breakdown structure is defined as a framework that allow project manager to
evaluate a different kind of norms and values which helps make application of innovative ideas
and things to fulfill objectives and targeting goals. This structure also helps segregate complex
activities in a manageable way that appropriately helps in fulfilling project objectives.
16

Analysis of the project methodologies and tools used
Executive summary:
In order to significantly reduce the movement of staff from the devices during the time
break of lunch which is leading towards creating significant issue which is in terms congestion
in the local area and providing help to staff as to develop them healthy life cycle and complete
organisation CSR practices and reduced of absenteeism present case study focuses upon
significance solution and resources which helps in fulfilling all the stages and project objectives
into a well-defined and effective manner. With help of emphasizing upon these resources project
manager can accomplish project with higher efficiency and in estimated budget.
Solution:
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In order to provide support to employees to develop a healthy lifestyle as the main aspect of
organization CSR policy emphasize increasing healthy eating developing a smoke-free
workplace and creating more physical exercises with weekly activities and improving mental
health. With the help of these steps objective can be efficiently fulfilled. Along with this to
reduce movement of among the premises during the lunch break proper address to an employee
is being provided.
Cost
To fulfill this project plan estimated amount which is required to accomplish own goals
to promote a healthy life cycle the overall project require is £3bn.
Scope:
A case study is having wider range of scope as it not only helps to promote healthy life
cycle of employees but also helps in reducing the issues which helps in enhancing overall
productivity of organisation.
Risk:
The main risk associated with this project is allocation of resources and accomplishment
of activities in estimated time frame.
Resource:
In order to fulfil all the project goals authorities are undertaking significant steps in which
use of advanced technology and other essential resources is being allocated to deliver project
objectives in estimated time frame.
Review and Critic of effectiveness of PLC
Project life cycle is defined as a process that an organisation or project manager followers
in order to accomplish all the steps in an effective manner to complete the project. In addition to
this, it is defined as a standard project life cycle that helps business organisations to manage
products in well-defined management. Furthermore, it has been underlined that the project
management life cycle is a strategic framework that is inclusive of different types of stages and
duly helps in transforming ideas or concept into reality, as to accomplish project goals and
objectives in effective manner. For an organisation project management plays essential role as it
helps in breaking down project stage into different manageable parts. Project manager undertake
every step in a well-defined and effective manner. Along with this, it has been evaluated that,
18

project life cycle also helps managers to enhance project goals and objectives effectively and
enhance competitiveness in the industry. In terms with present case scenario, it has been
identified that to responsibility level the change program for organisation and accomplishes the
goal of helping staff to develop healthy life cycle as an important part of producing absenteeism
and reducing movement of staff from the premises during lunch break to overcome the issue
(Rodrigues and Brandão, 2021). Mentioned below project manager undertaken project life cycle
which helps in sector getting different stages of the project:
Requirement:
It alludes to the progression which is connected with the inception phase of PLC, where
managers of the organization execute the Six Sigma approach so they can guarantee viable and
top-notch items and administrations. However, it has been underlined that this form of principle
is quite inflexible and did not duly fit with the company structure.
Design:
It alludes to the stage principally connected with the arranging phase of PLC in which
managers of the organization apply lean standards so they can diminish the piece and wastage.
Alongside this, it has likewise been said that the supervisor takes on a despotic administration
style which contrarily impacts the staff individually from an association.
Development:
This characterizes as the stage connected with the execution step of PLC in which
supervisors of the organization embrace TQM so they can successfully keep up with the nature
of products and services alongside this, in this management team of the organization take on
stock administration framework so they can expand the general net revenue.
Testing as well as maintenance:
It implies the stage wherein the conclusion period of PLC is connected in which with the
assistance of leadership style managers of the organization can effectively generate a high
amount of profitability.
Thus according to the above-mentioned analysis, it has been identified that with the help of
emphasizing all stage of the project life cycle and implementing a suitable approaches like Six
Sigma organisations can goals effectively and can accomplish them without any wastage of
resources and employees capabilities.
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CONCLUSION
As per the above mention report, it has been concluded to enhance organizational growth
and profitability and serve consumers while assuring maximum competitive edge operation in
project management proves to be an effective tool that helps organizations to create the highest
level of products and services by converting material and labor into finished products and
services in an effective manner. With the help of taking advantage of different types of tools and
techniques such as continuous improvement plans, six sigma, the, the etc company can embrace
changes and can maximize employees’ performance on a significant basis. This will help the
company to enhance its growth and show long-term sustainability while serving consumers
efficiently.
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