Operation Management in Business : Report
Added on 2020-06-05
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Operation Management inBusiness
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of Operation Management for an organisation.............................................11.2 Analysis of the operation functions of IKEA...................................................................21.3 Evaluation of the existing operation management through process model......................4TASK 2 ...........................................................................................................................................52.1 ‘Three Es’ to an organisation and its contribution..........................................................52.2 Impact of the tension between cost minimisation and quality maximisation in IKEA....62.3 Importance of the five performance objectives................................................................6TASK 3............................................................................................................................................73.1Importance of linear programming to current manufacturing procedure of IKEA........73.2 Analysis of critical path process and planning................................................................83.3 Requirement for operational planning and control in a production procedure of IKEA..8TASK 4............................................................................................................................................94.1 Preparation of operational outcomes for IKEA................................................................94.2 Resultant critical path showing network plan..................................................................94.3 Implementation of the quality management process to boost operations in the givencompany...............................................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONOperation management can be the process of managing and deals with designing andcontrolling the affairs of manufacturing and redesigning business operations in the production ofproducts and services. It makes sure that the raw materials are converted into final goods. It isthe role of operation management department to make sure that all the activities which arecarried out in this period are effective enough to yield better results (Alexander, 2013). Theycontinuously control and supervise the processing functions of a company and make sure thatthey deliver quality goods and services. This report will be dealing with different aspects ofoperation management which will help us in knowing the importance of it. For this we will beconsidering IKEA, a multinational company who sells and designs assembled furniture. It hasbeen the world's largest furniture retailer. It believes in selling quality furniture at low prices andgive their customers option of buying their products through both online & offline mode. TASK 11.1 Importance of Operation Management for an organisation.Operation management is the part of any company and is concerned with thetransformation of the input goods into desired final product. Taking in the simple language it canbe said that it is all about effective and efficient management. Its role differ according to thecompany's purpose and objectives (Becker, Kugeler and Rosemann 2013). For example; in IKEAwhich is a manufacturing setting of furniture has different operation management work than anyother sector. Functions and objective of IKEA are as follows:-Designing efficient processes to manufacture the goods;Timely acquisition of the raw product;Making sure that workers are properly trained Better maintenance of machinery. Operation management at IKEA has different functions and put emphasis on insuring thatcustomer service locations are equipped as needed and are safe for the employees and theconsumer. All the operations are observed clearly and are revised again so that they can caughtany loophole.1
In earlier days operation management only focused on the manufacturing process and intoday's era companies cannot ignore its another function. It is as important as the manufacturingprocess. But more importance should be given to the production system because if it will be notmanaged properly then IKEA will face crisis. For example; when all the operation are managedproperly HR department will easily able to make right predictions in the matter of staff (Dumasand et. al., 2013). They can better understand and predict the number of staff which is to berecruited, will able to do accurate analysis and train them according to the functions of the IKEA.The turnover will remain low and jobs will be easier to fill. For accounting department of IKEA, if operations are managed properly it will be easierfor them to predict costs and pay materials & supply bills. Finance department will not find ittough to raise money, if there will be smooth function of the manufacturing process. This willlead to high productivity and elimination of the non essential costs. Marketing division will alsosee a boost if they will receive products of IKEA on time. In the legal department all its workingdepends upon operation management (Heizer, 2016). If the furniture of IKEA is made properlythen it will not lead to liability claims. All the departments needs to managed properly so that itcan yield better results. With the proper management there will be efficiency in the work.Operation management is considered as the backbone of IKEA which is liable forproviding goods and services. If all the operations of it are managed properly then otherdepartments of it will able to perform well. 1.2 Analysis of the operation functions of IKEA.IKEA is a well known company in Europe and so they have to maintain the flow of theiroperations. They have to make sure that all the activities carried out in the company are smoothlydone. Operation function of the IKEA is related to its manufacturing process in which theyproduce quality furniture. This task of converting raw material into a finished goods starts frompurchasing a raw material. For furniture,wood is a necessary element and its quality totallydepend upon the kind of wood used by the company. Their subsidiary company Swedwoodhandles this department and purchases wood (Hill and Hill, 2012). Different kinds of woods areused by them ranging from oak and beech. IKEA believes in continuous expansion of their2
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