Operation Management in Business : Assignment

OPERATION
MANAGEMENT IN
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of management operations to make success of IKEA...................................1
1.2 Analyse the functions of operations within IKEA...........................................................2
1.3 & D1 process model in operation management of IKEA.................................................3
M1 Identified and analysed link between core operation functions and support function.....4
TASK 2............................................................................................................................................4
2.1 Essential of three Es within IKEA....................................................................................4
2.2 Cost minimisation and quality maximisation that create impact on the firm...................5
2.3 Significant of five performances objectives in to the operation management................5
M2 ..........................................................................................................................................6
D2 Key performances objectives that are most relevant for successful business operation. .6
TASK 3............................................................................................................................................6
3.1 and M3 Linear programming within the production process...........................................6
3.2 CPM and network plan in the organisation......................................................................7
3.3 Requirement of operational plan .....................................................................................8
TASK 4............................................................................................................................................9
4.1 Operational results for the chosen business .....................................................................9
4.2 Effective network planning to make result of critical path..............................................9
4.3 Justify how quality management techniques are applied to improve operations in IKEA11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Illustration Index
Illustration 1: Process model............................................................................................................3
Illustration 2: Critical path...............................................................................................................7
Illustration 3: Network planning....................................................................................................10

INTRODUCTION
Operation management is concerned with converting raw material and labour into
finished products or services with maximize profits and revenue. When business is not following
operation management, they are unable to succeed their functions and operations to make
profitable outcomes (Martínez-Jurado and Moyano-Fuentes, 2014). In this context, report take
example of IKEA which is private sector business of furniture. Their main aim is to deliver wide
range of well designed furnishing products at low price. In the enterprise, there are more than
123,000 workers are working across different functions such as purchasing, distribution, retail
and Swedwood products. In order to focus on company, report discuss importance of operation
management within success of IKEA. Furthermore, it covers importance of Three Es' within the
chosen enterprise. In addition to this, it assesses the linear programming adds value in production
process. At last, report includes management techniques for improvement IKEA results.
TASK 1
1.1 Importance of management operations to make success of IKEA
Operation management is very important element that include set of activities such as
planning, organizing, leading and controlling the operations of IKEA. It is essential to managers
for the following reasons:
To improve productivity: Productivity is very important aspect in success of every
business. It is ratio of output to input that helpful to measure efficiency of manager and
employee to scare resources for producing goods and services (Choi, Chan and Yue, 2017).
When the numerical value is zero, efficiency will be enhanced in IKEA.
To measure efficiency: Further, operation management consist with measuring efficiency
of the chosen enterprise. When IKEA is focus on producing goods and services within the
enterprise, it is important to manage proper functions and outcomes.
To demonstrate marketing activities: The marketing division is success, when the cited
enterprise reliant on successful operations (Fullerton, Kennedy and Widener, 2014). It is
determines successful outcomes on time to delivers product and services in market. It assists to
provide useful message regarding product or services that is being produced in appropriate
numbers. When product is determines in effective term, best marketing will be used in market.
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