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Operational Management in IKEA - Report

   

Added on  2020-06-04

18 Pages4220 Words58 Views
OperationalManagement

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INTRODUCTIONThe Operational management is a business function which is responsible for tocoordinate, control and the planning of the resources which are needed in an organisation toproduce its products and services. This report is focusing about the operational management inIKEA and different working of OM in company, the report is putting light on understanding linkbetween OM and strategic planning, and to organisation of production processes, followed withnetwork plan of critical path. TASK 11.1 Operation management and its importance on IKEA's business successOperation management is the administration of any organisation or business practice,which creates most effective and efficient possibilities in an organisation. It takes up conversionof material and labour into most effectively profitable goods and services for an organisation.This management system balances cost with the revenue for a company (Caralli, Allen andWhite, 2010). It assists company with several resources which helps in understanding the linkbetween various tasks and in their management.It plays very crucial role in the management of work on trade-offs which helps to makeeffective decisionsOperation’s management improves the organisation's financial health by rising its productivitywhich helps the company to meet the customer's demand and priorities. IKEA is a private retailSwedish company, which provides home accessories, appliances and furniture to their customers.The production system of the company is mainly putting their efforts in the reduction of wastageand to produce more profit. The operation management system in IKEA is playing very crucialrole in the success of the company as: -It provides various designs and assistance in production and profit making.It assists company with several resources which helps in understanding the linkbetween various tasks and in their management.It plays very crucial role in the management of work on trade-offs which helps to makeeffective decisions (Cook, Husband and Boxall, 2016). Operation management team teaches others in IKEA about the process in every task.Management team provides information about the work process and other strategicchanges which are implemented in an organisation. 1

It built specific expertise in context with traditional functions and improves the runningprocess. The main operational strategies of IKEA is to provide the best possible quality ofFurniture and their services at most affordable prices for everyone, consisting with excellentquality and durability. These thinking strategies had taken IKEA to top furniture seller in theworld. Some crucial aspects behind the succession of IKEA are hitting right demographic, byproving not so expensive products but not cheep at quality and because of their quality stores. 1.2 Analysing Operations functionBeing the function of an organisation, the functions of Operational management are tomanage different process and involvement of goals. It seeks for to optimise or utilise differentresources input for to produce the productive output (Loorbach, 2010). The management teamtakes the decision about different functions, focusing on to increase productivity, avoid possiblewaste and generation of the best possible profit such as: -Equipment Upgrades: - One of the function of operational manager is to examine workfunctions and to determine what changes in company can result in improvement ofproductivity. It consists of upgrading the equipment and other resources in anorganisation.IKEA is continuously upgrading their equipment to provide better servicesto their customers and to the company itself such as introduction of Automatic billingmachienes, Upgraded delivery process for their products and others. Coordination of Communication: - Communication within different departments of anorganisation is very crucial, improved communication in a company will directly affectsin the increment in the productivity. It helps in the exchanging of information from onedepartment to another which increases the pace of work in company and its productionrate, at IKEA the company is providing their employees full of transparency incommunication and sharing of information. The organisation is giving full details abouttheir current strategies and policies to their employees which promotes the building oftrust. In collection of Revenue: - Operational manager is the in-charge of revenue collectionand billing processes of the company (Terpstra and et.al., 2012). The main function is tomaintain the cash flow by using different techniques to collect revenue quickly, andbilling for another department to run the organisation properly.IKEA is using many of2

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