Operational Area Analysis: Quality Management at IKEA, Report

This report provides an executive summary and detailed analysis of IKEA's quality management practices. It explores the operational area of quality management, highlighting the company's use of the Total Quality Management (TQM) approach. The report examines the impact of quality management on operational efficiency, emphasizing how it improves product durability, reliability, and customer satisfaction. It also discusses the role of technology, such as cloud computing, mobile technologies, and enterprise quality management software, in enhancing quality control and streamlining processes. Additionally, the report evaluates the supporting functions linked with quality management, including supply chain management, and how they contribute to IKEA's ability to deliver high-quality products and services. The study concludes by summarizing the key findings and emphasizing the importance of quality management for IKEA's continued success.

OPERATIONS AND SERVICE
MANAGEMENT

EXECUTIVE SUMMARY
Quality management is essential operational area that is closely related with growth
of company. IKEA needs to take care of quality and for that it is using TQM approach. Use
of technology always supports business in improving performance and raising productivity as
well. Quality management helps business in minimising mistakes and improving the work
quality that can satisfy its consumers and can make them loyal towards the brand.

Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................3
TASK.........................................................................................................................................3
Operational area (Quality management) in company and its application..............................3
Impact of quality management practices on efficiency of operations....................................5
Embedment of technology in quality management operational area.....................................6
Supporting functions linked with quality management.........................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
In the recent time consumers are demanding customised products. To meet this
expectation companies need to concentrates properly on their operational process. Firms are
managing operations and controlling over their production process to meet needs of
stakeholders (Kikuchi, Topcon 2020). Present study is based on IKEA that si the big
furniture firm that offers high quality kitchen, home furnishing products to wide range of
global consumers. Firm is operating in 433 locations and serve ready to assemble furniture to
its consumers. Current assignment will explain quality management operational are of IEKA
and will explain theories related to same. In addition, study will describe impact of quality
management on operational efficiency of company. It will evaluate interlinking of support
functions with quality management.
TASK
Operational area (Quality management) in company and its application
Quality plays significant role in success of business unit. Customer driven quality
goods and services always attract new buyers and make them loyal towards the brand.
Quality management is considered as most essential operational area in the IKEA as it is the
process of monitoring each small activity to manage quality in business unit (Lovelady and
Grabbe, 2020). IKEA is popular for its great quality furniture products and its amazing
quality services. It always takes care of its consumers and always ensure that it meet the
expectation of consumers to great extent. There are four major key elements that are always
take care by IKEA. It makes proper planning. It ensures all its working activities are done as
per the industry standards only. Once planning is done then company makes improvements in
existing working practices so that reliable outcome can be generated. It makes effective
control over quality and for that continuous monitoring is done of each process. It has quality
assurance team that cross check each final goods before it gets delivered to end users (Ossa
Aristizábal and Ospina, 2020). In absence of great quality IKEA can not be able to keep its
consumers happy hence its market reputation will get down. Quality is the element that
attracts new consumers because they get value for money.
Total quality management practices are applied by IKEA in its workplace. It is
considered as ongoing process that is used to detect and reduce errors in the existing
manufacturing process so that quality goods can be delivered to final consumers (Hendrayati

And et.al., 2020). IKEA is taking are of its supply chain management system so that
company can get quality raw material that would help the firm in manufacturing high quality
furniture for the end users. TQM works to improve customer service in the firm and ensure
that all employees are well aware with the process that they are using. This helps in
minimising errors from employee side so that production quality and capacity can be raised.
IKEA gathers all detail from its consumers about their preferences and taste, apart from this,
it makes proper interaction with its suppliers. Hence involvement of all stakeholders aids
business in making production more accountable and satisfying needs of all stakeholders of
IKEA (TQM – Total Quality Management – Definition, Principles & Importance, 2020).
TQM is the customer focused process that ensures that all employees work in
systematic manner and ensures to meet quality standards in the manufacturing sector
(Dharmaraj, 2020). IKEA’s management ensure to fulfil all the principle of total quality
management. Management are committed towards their work they plan things and provide all
kind of support to their workers so that employees can finish their work properly. Once it is
done then they cross check each aspect and communicate if any changes are required. This
commitment of management aids the organisation in meeting quality standards. Employee
empowerment is another principle of TQM. IKEA always empower its staff members. It
gives training to staff members and develop a excellent team. All team members get
recognition for their efforts and performance in company. They have rights to give suggestion
to top management so that quality can be improved (Delmas and Kohli, 2020).
Continuous improvement is another principle of TQM, IKEA ensure systematic
measurement of all activities and make proper interaction with other department as well so
that mistakes can be rectified timely. It continuously works to improve its practices and
standards. TQM focuses on customers that are another principle of this method. In order to
meet expectation of consumers, IKEA makes partnership with suppliers (Al-Ababneh and
Dalbouh, 2020). Company only works with those suppliers those who are capable to provide
quality raw material on time to firm. IKEA never compromise with its quality that is the
reason that customers always receive value for money. That is why customer satisfaction is
high in the organisation and people are happy with its services.
TQM approach of quality management aids the IKEA in improving quality and
building its brand name as well. Commitment of all workers towards continuous

improvement is accomplished successfully by implementing this quality management
technique (Kikuchi, Topcon 2020).
Impact of quality management practices on efficiency of operations
Durability, reliability and performance are three major aspects on which quality of
products can be measured. Management of quality is essential for the growth and
development of organisation t to great extent. It aids business in developing healthy
relationship with suppliers and also aid in gaining competitive advantage as well. IKEA is
using TQM approach to maintain its quality. This tool aids business unit in increasing
efficiency level of its operations (Lovelady and Grabbe, 2020). This is helpful technique as
it supports in improving performance of its furniture products and also raises its durability.
All department fulfil their responsibility properly and interact with each other properly that
supports IKEA in producing more consistent products and raising efficiency level of
operations as well.
TQM quality management approach of organisation helps the firm in raising
satisfaction level of consumers. It works on customer driven approach where needs and
preferences of end users are taking care by firm on priority. IKEA is popular for its great
quality immediate services globally. If customers are not satisfied then it would incur big cost
to business unit (Ossa Aristizábal and Ospina, 2020). If enterprise is unable to meet
expectation of firm then it would not be able to sustain in market for longer duration. IKEA
always ensure to fulfil needs of customers. It takes detail of needs of buyers and accordingly
manufactures furniture’s so that expectation of buyers are met. That is the reason that firm is
able to satisfy its consumers greatly. Recently customers are demanding new things hence
IKEA always upgrade its technology so that these requirements are satisfied (Hendrayati And
et.al., 2020). Quality management practices aids IKEA in turning its prospects into frequent
and loyal consumers of business unit. By using these practices company is eliminating
defects so that high quality furniture is delivered to buyers. This aids in raising market share
of company to great extent.
TQM quality management practice of IKEA is helpful to business as it helps in
minimising cost of operations and increasing profit as well. IKEA is using TQM method in
all its departments so that errors can be identified timely and can be rectified on time. By this
way resources are being used in significant manner and firm become able to generate more
profit (Kikuchi, Topcon 2020).

But sometimes quality management practices of company increases its cost because it
has to make changes in existing process that takes time and delay the production as well. This
impact on brand name of the IKEA ass well. By management of organisation is taking care of
this thing carefully and ensure that error in production do not affect its production time. Each
activity is monitor properly and new technological uses enhances cost of business. Hence
quality management sometimes fail to meet its profit target (TQM – Total Quality
Management – Definition, Principles & Importance, 2020).
Supply chain management is essential operational management activity that supports
the organisation in finding the best raw material from right suppliers and suing these raw
materials in proper manner to manufacture the best quality raw material. Supply chain
management helps the firm in delivering right quality and quality materials to end users. If
there is poor supply chain management then IKEA would not be able to meet quality
standards. If there is poor chain of supply then satisfaction level of buyers can be decreased
because they will not get quality material on time. Effective supply chain make the sales
more strong and attract new buyers as well (Al-Ababneh and Dalbouh, 2020). If enterprise is
evaluating its suppliers properly then it would help in decreases purchase cost and production
cost both. Hence overall supply chain cost will be decreased that would result in decreasing
the value of products. IKEA will be able to offer quality goods to buyers at affordable rates.
This is amazing operational area that must be taken care by IEKA.
Embedment of technology in quality management operational area
All size companies are working to implement advance technology at workplace in
order to raise their standards and meeting consumer expectations to great extent. Recently
technology has become the most essential part of business success. Every big firm is
modifying their existing technology with new one (Kikuchi, Topcon 2020). Cloud
computing is used by IKEA As it is helpful technique to reduce cost and raise scalability of
its operations. IKEA is using mobile technologies and collaboration platforms to interact with
consumers more easily. This embedment of technology always helps the business in positive
manner, by using these tools firm is able to know more about consumers and fulfilling their
desires at affordable rates (Delmas and Kohli, 2020). Use of these technologies have helped
company in increasing ways to make contact with users and raising its workflow as well.
ERP, CRM are many software that are used by each manufacturing firm to raise quality level
of its operations.

All these software are helpful in taking preventive action so that no mistakes actions
place. It works as audit tool where each activity is monitored carefully and rectified timely if
any issue found with process. IKEA is using enterprise quality management software that is
used to make cross functional communication. It helps in making collaboration with other
departments and implementing standardise process that helps in streamline the quality and
managing it well. Functional silos are breaks by this software hence targeted solution are
made and implemented timely (Al-Ababneh and Dalbouh, 2020). This is the technology that
always support in exchanging information at all level timely so that supply chain activities,
production, designing, distribution each process can be completed with efficiency. This
technological software provides holistic point of view that supports in managing quality in
effective manner. Technologies that are used to manage quality are known as quality
management system (QMS). This system is used to work with accurate process by
considering standards to meet quality aspects greatly.
Involvement of technology supports in managing warehouse activities properly and
minimising data mistakes. IKEA is using radio technology is its supply chain management
process. This is helpful tool that keeps close monitoring over entire supply related activities.
Use of this technique helps organisation in reducing inventory related issues. By this way
IKEA can raise its manufacturing process so that it can deliver high quality goods and
services to its consumers timely (Lovelady and Grabbe, 2020).
Supporting functions linked with quality management
Quality management is the ongoing activity that ensures to minimise mistakes and
improve quality standards of company. Supply chain management is essential operational
practice that is interlinked with quality management. Both these areas of operations are
interrelated and these relationships help IKEA in improving its performance to great extent.
Supply chain design plays significant role in managing quality at workplace (Al-Ababneh and
Dalbouh, 2020). Enterprise ensures to have great design of supply chain so that quality
material can be received by IKEA that can be used to produce desire quality furniture
products in workplace. If entity is focusing on improving its supply chain activities then it
would help in reducing cost. By this way resources would be utilised in properly manner that
would result in improving quality of production to great extent (Hendrayati And et.al., 2020).
If there is delay in delivery of raw material then IKEA would not be able to produce goods on
time hence it may affect customer satisfaction that means quality practices are not managed
properly in business unit. Whereas if entity is able to manage its logistics properly then it

would encourage quality and IKEA can be manage to meet expectation of its consumers to
great extent.
Quality management practices of IKEA are highly integrated with the partnership of
suppliers. If there is poor collaboration between suppliers and company then it would affect
performance of operations badly. There is significant relationship between human resource
management and quality (Al-Ababneh and Dalbouh, 2020). HR team is responsible to give
training toe workers and managing employees as well. If people are getting training related to
quality tools and techniques then they will be able to perform well in quality management
operational areas. This training will raise their knowledge and understanding. Apart from
this, it will also enhance their confidence and they will be able to perform their duties well.
Quality management practices need qualified and experience people in operational area.
IKEA ensure that all its employees are committed hence it provides them rewards so that
people feel happy and they show their efforts to business unit (Kikuchi, Topcon 2020). This
support function helps the organisation in improving quality of employee performance that
will result in raising quality of goods and services as well. There is need to have great
management over employees to maintain the quality and to reach till standards. If HR is
unable to manage workers then it may affect their performance hence quality will be poor.
This interrelationship always helps IKEA in improving its performance in market and gaining
competitive advantage s well.
CONCLUSION
From the above report it can be concluded that quality of operations is highly
depended upon the its process. Companies need to take care from its supply to end delivery
so that consumers can get high quality material on time. Technologies plays significant role
in management of quality., Use of technologies helps in enhancing accuracy and minimise
mistakes as well. This system supports in generating more products and raising profitability
of company to great extent. Supply chain, human resource operational functions are
interrelated with quality management. This interrelationship and collaboration between these
functional units support company in minimising confusion and smooth functioning of all
operations. By this way entity can detect issues timely and can work to rectify it or improve it
soon. By this way it can meet quality standards and can satisfy its consumers.

REFERENCES
Books and Journals
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Delmas, M.A. and Kohli, A., 2020. Can apps make air pollution visible? Learning about
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Dharmaraj, R., 2020. A Study on Quality Control System in Bharat Heavy Electricals
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Hendrayati, H. And et.al., 2020. E-Service Quality and Price to Build Online Transportation
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Ossa, D.A., Aristizábal, A.J. and Ospina, D., 2020. Feasibility Analysis for the
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Online
TQM – Total Quality Management – Definition, Principles & Importance. 2020. [Online].
Available through <https://cleartax.in/s/total-quality-management#The>