Operations Management: Case Studies and Research Implications

This assignment delves into the world of operations management, covering qualitative case studies, trends, research outcomes, and future research implications. It draws on various resources, including books by Heizer, Hill, Jacobs, Kojima, Krajewski, Pettit, Storbacka, Tang, Tayur, Trkman, Van Der Aalst, Weske, and Wheelen, as well as an online source. The assignment title is 'Operations Management: Case Studies and Research Implications', with a meta title of '[SOLVED] Operations Management Case Studies' and a meta description that highlights the exploration of operations management case studies and research implications.

OPERATION MANAGEMENT
IN BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
1.1 Importance of Operations management for IKEA................................................................1
1.2 Operations functions of IKEA..............................................................................................3
1.3 Determine through using process model operations management for IKEA.......................4
TASK 2 ...........................................................................................................................................4
2.1 Importance of ‘Three Es’ to organisations............................................................................4
2.2 Impact of tension among cost minimization and quality maximisation...............................5
2.3 Significance of five performance objectives.........................................................................5
TASK 3............................................................................................................................................6
3.1 Linear programming adds value to production process........................................................6
3.2 Critical path analysis and
network planning........................................................................................................................7
3.3 Need for operational
planning and control in a production process.............................................................................7
TASK 4............................................................................................................................................8
4.1 Produce a set of clearly defined
operational outcomes.................................................................................................................8
4.2 Produce a network plan indicating the
resultant critical path..................................................................................................................8
4.3 Quality management
techniques are applied to improve
operations in IKEA....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations management refers to the area of management which is related with
designing, monitoring and also controlling the manufacturing process and then redesigning the
all business related activities and operations in the manufacturing of services and products. IKEA
is a furniture retail business firm and it deals in designing and selling home accessories, kitchen
appliances and also furniture. In UK, it is the biggest retailer of furniture. In this report mentions
about the importance of operations management (Ashby, Leat and Hudson-Smith, 2012). From
using the process model, IKEA conducts its business operations. There is an affect of tension
among the cost reduction and the increment in the quality of this business firm. In this present
business report also mentions about the importance of five objectives of performance that
underpin the operations management to a company. In this business firm, there is a need for the
operational planning and also on the particular production process.
TASK 1
1.1 Importance of Operations management for IKEA
IKEA is a furniture related retail business firm and in this company there is a operation
function because this firm manufacture goods and services of good quality for satisfying the
needs and wants of its customers. There is a importance of operation management and it is
helpful in conducting the business in an effective or an efficient way. IKEA business enterprise
adopt new and latest technology for improving and also increasing the productivity of business.
Operation management related to the designing, operation, motoring and controlling the system
or activities that develop for increasing the quality of existing products and services and also
produce new goods (Barratt, Choi and Li, 2013). IKEA is a furniture organisation and the main
motive of this company is to develop a better life for people by providing them good quality
standard furnishing products, designer furniture at a lowest price so everyone can avail them.

IKEA use the operations management in the business related activities. This company use
the operation management for assure and retain an effectiveness and efficiency in an industry. In
this enterprise, an efficiency is related with that in what manner company use its resources for an
instance inputs, human resource for an objective for deployed in an organisation.
The primary and main objective of the shareholders of this cited company is to earn
maximum profit with enhancing the goodwill or reputation of this firm (Heizer, 2016). The
management of this firm minimize its price by reducing less profitable assignments. The case
study of IKEA is perfect to stated about the importance of operations management:
 in the production process, the main objective of company is to minimize the all
wastages.
 Help in reducing the cost of production and enhancing the productivity or
profitability of business (Hill and Hill, 2012).
 It is the responsibility of a manager is to conduct all operations related activities
in an effective way.
 Sales will increased.
Illustration 1: Source: Operations management, 2017

1.2 Operations functions of IKEA
An organisation invested more to satisfying the needs and wants of its customers. Most of
the business firms deficient of operations management to face some issues and the minimization
in the demand of manufacturing process. It is the duty of management is to increase the IKEA
level of performance, designing, planning, monitoring, also controlling the effective resources,
coordination, reduce the wastage and time of management, to increase the efficiency of trained
employees, inputs, outputs and also focus on increasing the quality standard of finished goods
and products from which the need and wants of consumers will satisfied.
The mass production of a company and the lean production is a good way to increase the
cost of production with reducing the rate of per unit cost and increasing the capability of
utilization (Jacobs, Chase and Lummus, 2011). With the help of these, IKEA is successfully
running and it has total 280 stores in around 36 countries.
The main function of IKEA is to providing good quality furniture, home accessories in
many different countries such as Sweden, Scandinavia etc. and it will helps in retain their
minimum cost position among the all furniture business firm the total number of supplies of
IKEA are 1500 to 1800 in around 60 countries. It has a biggest chain of suppliers. The
management of this business enterprise supports its producers with the technical as well as
financial hep and also safe its long time partnerships with the producers and also the suppliers of
furniture for the growth and productivity of business. The main function of IKEA are as follows:
Human Resource- The main duty of this department is to provide training to employees
for increasing their skills and the workers to IKEA are very talented and also trained. At this
present time, HR department develops “ become your own interior designer” from the help of
good planner of IKEA.
Marketing function- The primary purpose of IKEA is to design and then prepare its
goods and service on minimum cost by using new and latest technology in its production process
(Kojima, 2010). With the help of this, company can target its new consumers, so it is the
responsibility of a marketing team is to conduct research on them.
Production function- The main role of this department is to produce good quality and
designer furnitures on the basis of customers demand. By adopting or using the latest technology
and new machineries, sot of production will reduced.

1.3 Determine through using process model operations management for IKEA
The main and necessary part of the operation management is process model or can say
management, models related to open and close system, external or internal in which includes
authorities, discipline at workplace, labour division, equity and to ogive remunerations to
managers. The growth or an efficiency split the work in to small groups withj the help of these
efficiency and effectiveness of labours can be improved and also increased. It is necessary that
employees should respect the order of their managers and also work according to rules and
policies of company (Krajewski, Ritzman and Malhotra, 2011). It comprises of one and more
process and actions which help company to transform its inputs in to outputs and the brain of the
management is process model.
The process in a company whether it is large or small, the relationship of customers and
suppliers of each business firm, every function and each staff members are both suppliers or
consumers included in the processes. IKEA company has a main and important process in which
sub processes are included, the role of each process is totally different all processes are
contribute in the success of company.
The process model which IKEA company uses given below as above:
Environment- It is a first steps and it defines effective environment for developing
business activities in an effective manner. In environment process involves technology,
customers, suppliers etc. It is necessary for IKEA to enhance its selling process and also
determine needs and demands of consumers.

Input- It consists equipments, knowledge, capital, labour etc. which are important to
determine input in the process model. IKEA company uses this process model in in developing
its performance in an effective way for achieving organisation goals.
Transformation system- After input process, IKEA company includes transformation
system and in this involve show link and also engineering among the programming language.
Output- In this services or products of IKEA are included which can be determine the
systematic process to producing goods on the basis of customers demand.
Monitoring and Controlling- Under this, it is necessary to IKEA company to control
and also monitor whole process in an effective manner. It helps in achieving the goals of firm
properly.
TASK 2
2.1 Importance of ‘Three Es’ to organisations
The 3 Es to a business enterprise are effectiveness, economy and efficiency. These three
are very necessary and also important to management measuring the level of performance and
also helpful in increasing the quality of overall performance level of operations of business.

Effectiveness- It is a kind of achievement which is earned through a company. An
effectiveness is totally based upon the aims, objectives that meet through business operations or
not. It refers to so all things of business in a best possible manner and also make sure that the
result should match with the consumers wants and needs.
From taking some effective and strong decisions, IKEA can increase its competitors at
market place (Peng and Lai, 2012). It is an opportunity to company to attract its customers by
conducting many promotional activities with the help of newspapers, television, radio,
campaigns etc. It is also a sign of effectiveness.
Efficiency- It is plumbed in terms of capability and strengths of a business firm for
transforming input from an output. The efficiency of the business operations can be managed and
controlled in an easy way with some less resources and efforts. Efficiency refers to do things in a
proper manner and also remove the unnecessary and unusable unfinished products or services.
With the help of proper management, IKEA has been accomplish its objectives and development
of business.
Economy- It means cheap and it is the responsibility of a manger to doing operations in a
cheaper way as much as possible. It is necessary to avoid more spending (Pettit, Fiksel and
Croxton, 2010). By using various evaluation. IKEA has minimize unnecessary price and also try
to save some amount from its projects. Company should try to do its operations in a cheaper way
or cost.
2.2 Impact of tension among cost minimization and quality maximisation
At an initial stage of decade when IKEA was trying to sustain in business from reducing
that costs which are necessary. The main motive of cost reduction is to accomplish the
effectiveness or efficiency in delivering of products as well as services to enhancing the level of
quality. From increasing the quality standard, the sales of company will increased. The main
purpose of IKEA is on the minimum cost and production of quality. If the cost of manufacturing
will maximise for enhancing the level of quality, then from this the profit of business enterprise
will decreased. If quality will good, then the perform,ace level of company will good and also its
reputation.
The main focus of tension is on the quality and cost. If this enterprise will focus on the
quality of its products then it will be beneficial and it will also spend for providing more services
and if company will focus on cost cutting, then in this case it can not increase in the quality of

furniture. To manufacture qualitative services or goods needs many efforts of full company
(Storbacka, 2011). So, to improve the quality IKEA business firm apply Total Quality
Management (TQM) and it helps in maintaining balance among the increase in quality and cost
reduction.
2.3 Significance of five performance objectives
The main objective of a business firm is to satisfying the needs and wants of customers
by providing them good quality products at reasonable cost. There are 5 performance objectives
given below as above:
 Quality- It means an ability or capability of increase the performance level by producing
better quality standard products at minimum cost in a best possible manner. The primary
motive of this is to make goods without any kind of defect and the basis of customers
preferences (Tang and Musa, 2011). The furniture of IKEA is at the top in all over the
world and its main reason is hat the cost is less, quality is good and design is latest or
fashionable.
 Flexibility- It means a change in a business operations. There are main 3 aspects of
flexibility such as first one is change in the size of manufacturing, change in time of
production process, change production mix of many different goods or services.
 Cost- Main objective of this company is to provide goods at minimum cost. From,
reducing the cost, firm can attract new customers and retain existing buyers.
 Speed- It refers that do things or business operations rapidly. It is connected to an ability
of company for doing the business process speedily in context to the needs and wants of
consumers.
 Dependability- It is the capability for giving services or goods on the basis of some
customers demand. It means that doing thing on particular time period and also work
together in a team.
TASK 3
3.1 Linear programming adds value to production process
Linear programming is mathematical tools and techniques which is used by various
business firm for evaluating a proper or satisfactory solution of the particular issue in the process
of manufacturing of IKEA for an instance increasing sales,profit, market share etc. It is a very

effective technique for allocation the resources of the manufacturing process of IKEA. With the
help of this technique, the profit of IKEA will increased and the sales of furniture will also
enhanced (Tayur, Ganeshan and Magazine, 2012). It helps a abusiveness firm in increasing the
profit level by reducing the cost of production. The linear programming is very useful to
managers in the process of decision making. In context of LPP, IKEA business enterprise creates
a schedule of production that help in satisfying the needs and wants of its consumers. This
business firm choose effective product mix to develop the good use of technology, labours and
machineries at the time of increasing the profit of company. It is the responsibility of manager to
use good quality raw material in the production process for improving the quality standard by
reducing the cost of manufacturing. In the manufacturing process, IKEA use and apply Linear
Computer Programming and it is designed for consumers.
The process of linear programming is good for accomplishing the organisational
objectives and to maintain the manufacturing process (Trkman and et. al., 2010). IKEA use this
method for make the solution of various problems such as:
 minimization in cost.
 To use resources in an effective and efficient way.
 To minimize the risks and also enhance the speed of response.
 Increase the level of profit.
3.2 Critical path analysis and
network planning
The Networking Planning is also known as the Critical Path Analysis and it is a tool
which company adopt and use in the planning m,any activities for doing organisational activities
with in a short period of time. The Critical Path method and the Network planning plays an
important role to take review of full project. It gives more time duration for finishing a project
with minimum cost from following a particular plan for the production process and to distribute
all finished products to the retailer shops. It is necessary technique for reducing the process with
the proper allocation of money of a business firm. Critical Path Method helps in :
 Set all the activities that make the project big.
 To show a sequence in which all activities and tasks has conducted.
 To show when all resources will be required.

CPM is project management related tool and also a planning. By using this tool and
technique IKEA can assure is finish a project rapidly and apply resources in an effective and also
an efficient way and it is totally depend on accuracy of an information and data which is used.
3.3 Need for operational
planning and control in a production process
Operational planning is a process of strategic planning, aims and goals of a business
firm. IKEA business firm develops an operational planning (Trkman, 2010). It is a blueprint of
full operation and the process of manufacturing of finished products or services with proper
distribution of the finished products. The operational planning consists purpose of production
plan, to set targets, production, testing and execution all things in reality. The operation related
planning and control is necessary by IKEA to forecasts of the demand of future. Operational
planning is necessary for the different objectives for an instance:
1. Minimizing the cost of manufacturing process.
2. To increasing the sales and profit level of company.
3. To optimum use of efficient and available resources of an organisation.
4. To improving the manufacturing process for managing all the stock in a
particular time period (Van Der Aalst, 2013).
5. It is necessary to manage the logistics and the supply chain operation in a
business enterprise.
6. With the help of this the cost of production process will be minimized and also
helps in improving the productivity and profit level of a business firm.
TASK 4
4.1 Produce a set of clearly defined
operational outcomes
The production process of IKEA for producing finished products of furniture for
distributing the designer furniture to its retailers. In the outcomes of operations include:
 To manufacture better quality goods at reasonable cost.
 To minimize the wastage and any kind of defect.
 Reduction in the complains of customers.
 It is helpful in taking right decisions to managers.

 Maximising the sales and profit level from the past years.
The supplier of furniture items maintain their better quality for the manufacturing process
and also measure the the quality of production with the help of six sigma technique (Weske,
2012). It is very helpful in attracting more number of customers.
4.2 Produce a network plan indicating the
resultant critical path
The IKEA business firm say to its customers to give some contribution towards the aims
and objectives, win consumers purchase furniture from this business enterprise. At the time of
purchasing furniture, customers give their equal effort like company.
Table of Critical Path Method
Network

Critical path- 1+3+5+7+8+9+11 =44
Maximum time- 2+4+6+7+8+10+11 = 48
Minimum time- 1+3+5+7+8+9+11= 44
4.3 Quality management
techniques are applied to improve
operations in IKEA
The main focus of IKEA business organisation is to sell designer and attractive furniture
to its customers. To make improvement in the business operation and also in the production
related process, Total Quality Management (TQM) plays an important role. With the help of
process of quality management this business enterprise can improve or increase the effectiveness
and efficiency of monitoring, planning and also controlling the full process of production
(Operations management, 2017). The six sigma is the best method or technique for determining
the quality standard of this furniture industry and the manufacturing process. With the help of
this manufacturing team can reduced or minimize the defects of the different level of operations
and also in the process of production of this organisation. This technique is very important and
effective which gives an efficiency and goodness in the quality of operations and the production
process of this enterprise. It is statistical analysis which determine the level of defect of business
operations.
CONCLUSION
It is concluded from the above report operation management is very important in an
organisation. IREA is big furniture retail business firm and its main focus is on the removing the
defects from the production process and increasing the quality of products by reducing cost. In
this report studied about the significance of operations management for IKEA. There is studied
about the importance of three E's and that are effectiveness, efficiency and economy. In this
present business report also studied about the determination of network planning and the critical
path analysis. In the production process, there is a need of planning and also controlling of
business activities and also operations in this IKEA furniture industry.

REFERENCES
Books& Journals
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature.Supply Chain Management: An International
Journal.17(5). pp.497-516.
Barratt, M., Choi, T.Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications.Journal of Operations
Management.29(4). pp.329-342.
Heizer, J., 2016.Operations Management, 11/e. Pearson Education India.
Hill, A. and Hill, T., 2012.Operations management. Palgrave Macmillan.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2011.Operations and supply chain
management(Vol. 567). McGraw-Hill Irwin.
Kojima, K., 2010.Direct Foreign Investment: A Japanese Model of Multi-National Business
Operations. Routledge.
Krajewski, L. J., Ritzman, L. P. and Malhotra, M. K., 2013.Operations management: processes
and supply chains(Vol. 1). New York, NY: Pearson.
Peng, D. X. and Lai, F., 2012. Using partial least squares in operations management research: A
practical guideline and summary of past research.Journal of Operations
Management.30(6). pp.467-480.
Pettit, T. J., Fiksel, J. and Croxton, K. L., 2010. Ensuring supply chain resilience: development
of a conceptual framework.Journal of business logistics.31(1). pp.1-21.
Storbacka, K., 2011. A solution business model: Capabilities and management practices for
integrated solutions.Industrial Marketing Management.40(5). pp.699-711.
Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management.International journal of production economics.133(1). pp.25-34.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012.Quantitative models for supply chain
management(Vol. 17). Springer Science & Business Media.
Trkman, P and et. al., 2010. The impact of business analytics on supply chain
performance.Decision Support Systems.49(3). pp.318-327.
Trkman, P., 2010. The critical success factors of business process management.International
journal of information management.30(2). pp.125-134.
Van Der Aalst, W. M., 2013. Business process management: a comprehensive survey.ISRN
Software Engineering,2013.
Weske, M., 2012. Business process management architectures. InBusiness Process
Management(pp. 333-371). Springer Berlin Heidelberg.
Wheelen, T. L. and Hunger, J. D., 2011.Concepts in strategic management and business policy.
Pearson Education India.
Online
Operations management, 2017. [Online]. Available through: <http://www.alamy.com/stock-
photo-operations-management-chart-with-keywords-and-icons-sketch-
104965377.html>. [Accessed on 31st August, 2017].