Operation Management in IKEA Ltd | Report
Added on 2020-01-28
13 Pages4119 Words88 Views
OPERATIONMANAGEMENT
Table of ContentsOPERATION MANAGEMENT.....................................................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Importance of operation management...................................................................................11.2 Operations functions.............................................................................................................21.3 Evaluation of operation management using a process model..............................................2TASK 2............................................................................................................................................32.1 Importance of ......................................................................................................................3‘Three Es’ to business.................................................................................................................32.2 Impact of tension between cost reduction and quality increase:...........................................42.3 Significance of performance objectives ..............................................................................4TASK 3............................................................................................................................................53.1 Linear programming adds.....................................................................................................5value production, how?..............................................................................................................53.2 Evaluate critical path analysis and........................................................................................5network planning........................................................................................................................53.3 Need for planning and control..............................................................................................6TASK 4............................................................................................................................................64.1 Operational outcomes for selected........................................................................................6organisation................................................................................................................................64.2Produce a network plan indicating the...................................................................................7resultant critical path..................................................................................................................74.3 Improve.................................................................................................................................8operations by Quality management.............................................................................................8techniques ..................................................................................................................................8CONCLUSION................................................................................................................................8REFRENCES...................................................................................................................................9
INTRODUCTIONFollowing report is prepared in order to understand the importance of operationmanagement in IKEA Ltd. In the report the learner will get the idea about what is the importanceof operation management in the business and what are the various functions performed by it willbe also discussed in detail. The report will help in understanding how management operationprovide benefit to the business (Mohammadi,Soleymani and Mozafari,2014). Different Es willbe discussed in the following report in order to understand how they help the business inachieving the targets. IKEA is one of the leading company which is providing the customers withgood furniture facilities and it is important to understand why operation management isimportant for the cited company.TASK 11.1 Importance of operation managementOperation management is the process through which IKEA produces the goods andservices for market so that revenue can be generated against it. The system of operationmanagement help the cited company in earning maximum profit. Operation managers are thosewho carry out the operational activities. They are the one who responsible for inventorymanagement, capacity purchase maintaining the quality and to take other critical decisionsrelated with production. Different activities are performed by operation management which helpthe cited company in increasing the total profit by developing the production capacity. Theoperation team converts inputs into final outputs by processing them. Before starting theproduction process the operation managers take various decisions like what should be a part ofoperating management. From the last few years the importance of operation management hasincreased. Its significance has increased due to the increased in customer awareness, developedcompetition, need for reducing production cycle (Niknam,Meymand and Mojarrad,2011). Apartfrom this the increased in the technology has demanded more efficiency from the operationmanagement by improving its quality of production. The process of operation management startswith the identification of customers. Although the functions of operation management vary fromorganisation to organisation it is of vital importance to each unit. As the cited company is dealingin the business which needs to achieve customer satisfaction it is important the it has theeffective operation managers. Core importance of operations management are given below:1
Helps in reducing the total cost of an enterpriseCompany can increase its profitability through using this conceptIt provides guidelines for developing alterations in the organisation1.2 Operations functionsFor IKEA operation management plays various important functions which help indeveloping the overall standards of different operations. As the company deals in serving thecustomers with the furniture services it is important to make the furniture available where it isrequire and in the best way that customer feel satisfied after buying IKEA products. Differentfunctions performed by the management are:Arrange layout- It is required to give fast and effective flow to the to the store so thatcustomer process can be carried out smoothly.Packaging- As the product concerned is of huge structure it needs to be designed in astylish way so that it attracts more customersProduct designing- The design of the products are selected carefully so that it iscomfortable and like by all.Job design- staff contribution is maintained by the operation management so that thewhole staff works towards achieving organisational goal.Supply chain- Operation management also checks that best location is chosen for thelocation of the store where it can get maximum customers.Supply management- It is important that the placing of products is effective in the storesso that the require product can be assessed easily by the customers as well as by themanagement (Moghaddam,Seifi and Niknam,2012).Capacity planning- operation management also perform an important function of makingthe required amount of stock available so that demand can be fulfilled and no potentialcustomer is missed due to unavailability of material.Supply chain management- This is the function in which supply of material to differentlocations of stores are maintained.2
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