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INTRODUCTIONOperation management is the process of monitoring all the activities which starts fromprocuring inventory to the delivering of goods and services to the customers. IKEA which isserving broad range of well-fashioned, structural home furnishing goods at low prices so thatnumerous people can able to afford them. The company focus is to minimise cost and maximisequality which produce high tension in the company but they able to cope up with this by planningvarious strategies that are reduced indirect cost, emphases on the investment to direct cost,control over the overheads. The report describe their function that are planning, designing,managing and coordinating. They have planned five objectives which includes durability,flexibility etc. in order to maintain all the operations.TASK 11.1 Significance of operation management for the success of IKEAOperation management is the vital part for any company to improve the productivity inorder to improve the financial health of the venture as well as it helps to meet the consumercompetitive priorities.Improves productivity: it is the ratio of output to input, it can be measure by the managersand employees efficiency in order to use all the scare resources effectively and efficiently so thatquality goods and services can be produced. As the numerical value of the ratio is higher, theefficiency is higher. The organisation main motive is to cut input cost and boost up the output ofthe travelling cost (Wakui and Aki, 2017).The firm's focus was on the supply chain because it is the main factor where the greatamount of capital is invested and it provides the catalyst for analysing the components of theoperation. Logistics improvement includes the change in how the goods are procured, stored andtransported which helps in reduce the inventory and increase the quality and speed of service, thiscan be done through the proper order processing. Through implementation of the operationmanagement, the goods are now ordered centrally and direct shipped to the clients.As the manufacturing company have more operations and orders which start from theprocurement of raw material till the products are sold to the customers. In the service industry theoperations are start from identifying the customers needs till getting feedback from the clientsabout the quality of service and their satisfaction. So it is important to manage all these activities1
which helps in effective use of resources and fulfilling the customer's needs. Proper operationmanagement helps in various aspects that are as follows:Control over the inventory of the company where they have proper knowledge aboutthat how much raw materials are required to fulfil the demands of the customers, howmuch inventory is kept with them and how many goods they will require satisfying thefuture orders (Hennelly and Sra, 2017).Inventory includes different classification such asraw material, work in progress, waste etc. organisation need to manage these inventory sothat they can able to use their resources in the proper way.Proper supply chain management which start from the procuring the raw material tillthe goods are served to clients. It includes purchasing, storage, transportation and deliveryof inventory and finished goods. It also includes the implementation of the technologythat helps the staff to continue the process as well as developing the professionalrelationship with the suppliers and external stakeholders.It includes differentintermediaries such as suppliers, distributors, warehouse, transportation etc, these allactivities should be done in the co-ordinated way.Quality control: Quality is more significant from the production, it helps in satisfying thecustomers needs. It shows that the brand meets the expectations of clients. Quality is theone factor which entail the overall excellence of all the operation and policies of theorganisation as the whole.1.2 Operations functions of IKEA.Operation management is the multidisciplinary field which focus on the all the aspects ofthe organisation's operations. In as typical venture, there are lots of functions that are to beperformed by the operation manager and their subordinates. Their functions are as follows:Planning: For cope upping with the various situation such as competition, governmentalrules and regulation, economic conditions etc. system planning helps the management toutilise all the resources effectively and efficiently. Planning process helps the organisationto met up with the competitors and adopt the changing environment such as technology,policies and techniques. When there is increase and decrease in the demand of thecostumer, proper planning of the operations helps to set the priorities and cope with thechanging demands (Hedenstierna and Holmstr, 2016).2
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