Operational Management and Technology at IKEA: A Report

This report analyzes IKEA's operational management practices, focusing on production processes, efficiency, and technology integration. It explores how IKEA maintains high-quality furniture production at affordable prices through its value chain, emphasizing the importance of production management in achieving strategic success. The report discusses the impact of operational practices on IKEA's efficiency, highlighting the role of technology in enhancing production quality, reducing errors, and improving overall operational efficiency. It also identifies supporting functions, such as production control and scheduling, that are crucial for ensuring organizational success and maintaining consistency throughout the production process. The report emphasizes the interconnectedness of these functions and their contribution to achieving IKEA's goals and objectives.

Operations and Service
Management

Table of Contents
INTRODUCTION 3
1. Identify Operational Management practice with Ikea 3
2. How operation practice impact on IKEA in regard with efficiency 4
3. How technology can be embedded in this and how it has been attained 4
4. What other supporting function are linked to production and ensure organisation success
4
CONCLUSION 4
REFERENCES 5

INTRODUCTION
Operations management is managing of business practices in order to create high level of
efficiency within organisation. basically, it is related to converting raw material into goods. . It
particularly deals with the decision taken by operational managers for the production as well as
consumption of products (Saloranta, 2016). There are the several decisions taken related to
people, process, information as well as system that can produces and delivers the services. The
service operations coordinates out the processes and activities needed to manage as well as
deliver services at high level to the consumers (Leyer, Stumpf-Wollershei. and Pisani, 2017).
this report focuses on IKEA high cost manufacturing furniture that can meets the needs of
customers. The report will describe about production practice of IKEA. also, its impact on
efficiency and how technology can be embedded into production will be explained. Moreover,
what are supporting function of production practice will be discussed as well.
1. Identify Operational Management practice with Ikea
Operational Management can be termed as a practice by which higher level of efficiency
can be maintained. For every entity it has become vital to provide the quality products as well as
services to their consumers. In addition to this firm needs to produced high quality goods and
maintain efficiency of production practice so that goals are achieved. Production within
operations can be only maintained if there is regularity in operations as consumer’s satisfaction is
highly dependent on the quality of products. Thus, in order to do so firms required to be adopt
operational practice which are effective manner. The use of practice is also relied on the
requirements of the firm. Thus, each operational practice varies within their way and also in their
maintain Production quality. Operational management practice can also change when new
process and methods is to be introduced within firm.
There are various types of the operation management practices that assist firm in order to achieve
strategic success especially in production management. One of the vital operational management
practices that can be adopted through Ikea is production management. Production management
focuses on the overall production processes, services and products that are offered through firm.

IKEA is one of the great example of a firm that can effectively focuses on its business as well as
operating model. To deliver customer promise of quality furniture at the affordable prices. IKEA
depends on its value chain to focuses on its production as well as overall cost. Within this order
to reach at the shop floor, a product must meet the four criteria such as sustainability,
affordability, functionality and good design. In addition to this design planning regarding any
product begins by first setting the product price that can be sold, so that the designers have to
choose that what raw materials, design elements and production techniques can be utilised that
so that the production cost can be reduce. Thus, the designers also works on the factory floor,
directly communicating alongside manufacturing team so that abilities and constraints of the
manufacturing department can be understand. Thus, it minimizes the cost and streamlining the
design process (Saddier,. and Johnson, 2018). IKEA has also offered around 9,500 products at
very low prices. To meet the strict needs of efficient distribution, quality and function
manufacturing cost will be low. Relied on the few materials that are used to make the furniture
without any sacrificing quality, so that to make packaging, transportation and handling are most
efficient cost based. Relied on the conscious design as ready to assemble items are given to the
consumers within flat packed form that can outcomes within decrease shopping cost,
construction ,storing and assembling.
The main function of production is to manufacture products of high quality so that people
needs are met. Here, overall productivity and efficiency of IKEA depends on production. This is
because if production is not effective then it will effect on further process as all other are
dependent on production. Thus, it plays a vital role in IKEA goals and objective and efficiency.
2. How operation practice impact on IKEA in regard with efficiency
In every company production practice is core component in producing of products and
services. here, products are produced so it is first stage regarding its quality. So, production
practice is related to all other units and functions. The operations of company depend on
production as well. Apart from it, there is a great impact of production practice of organisation.
This is because it any change or shift in production directly impact on overall efficiency of
business. Similarly, as IKEA is known for its high quality products thus there is great impact on
its production (Murphy, Wankhade,. and Lakoma, 2019). It can be stated in IKEA there is
systematic production process which is followed. In that there are advance technology and
software which are installed in it. this has resulted in producing high quality products to fulfil

needs of customers. Alongside, it is identified that there is great impact of production on
efficiency of IKEA. this is stated as below
High quality - this is main impact of production on efficiency as goods produced are of high
quality. In this products are manufactured through relevant standards and criteria. However,
there are certain quality standards set on basis of which production is done. as IKEA produces
large number of goods so the standards enable in ensuring that quality is maintained. Thus, it
leads to focusing on goods quality and maintaining its efficiency. Along with that, if high quality
of product is ensured than it automatically results in enhancing efficiency of other functions of
IKEA. for instance- the efficiency of operations is improved as product quality is already
maintained in production unit.
Reduction in error- this is main impact of production practice on efficiency. Its use has led to
reduce in error in production of products. Besides that, now different standards are followed in it
so if there is any variation in quality then changes are made into production practice and there is
reduction of errors in it. It has also resulted in reducing of errors in overall production as well.
Thus, there is enhance in efficiency of process (VimalKumar, 2017).
Improvement in operation efficiency - the use of production practice has led to maintaining of
consistency within entire operations of IKEA. This means that now all things are done on basis
of certain standard. Thus, variation within process is reduced and it has resulted in bringing
improvement. The area where production quality was not mentioned is now upgraded and this
has resulted in providing smooth flow and streamline process of production. Thus, more goods
are produced in less time and of high quality.
Hence, it can be evaluated that through that efficiency of IKEA has enhanced with
production practice. It has resulted in streamline of entire process and reducing errors in
production of goods. So, it has impacted on both quality and operation practice in positive way
and led to increase in its efficiency and performance. Therefore, overall IKEA productivity has
increased producing more goods in less time.
3. How technology can be embedded in this and how it has been attained
now a day’s times technology has played vital role in production practice. It has led to
increase in capacity of producing goods and also maintaining quality as well. instead of
machines robots are used in it. There are various types of advance tools and techniques which
can be used in it. This will provide an additional advantage in production practice. Besides that,

technology will give an edge in maintaining of quality within production in more efficient way
productivity (Staal, and DeVries, 2018). It is found that there is different technology which can
be embedded. Nowadays manufacturing are utilising digital technologies for the complex
process in order enhance profitability and productivity. There are several benefits for adopting
technology within the manufacturing practices such as
With the help of technology, there is an improvement of quality of the products at all stages. This
leads to enhance efficiency of process and reducing waste of material and resources. Through
that, it becomes easy to produce large goods in less time. The first step to the smooth functioning
the process is to review as well as evaluates past performance in order to understand resources
and time that can be spent previously (deck, and Høyem, 2020). By doing so IKEA can be
prioritising the areas that requires most of the attention. Invest within technologies that can
improves the procedures and process as if someone have software and hardware both that can
combine to monitor as well as operations of several process of industries that can be applicable
to all the business. A flexible and high communication manager software enables SCADA
system as well as all the industry oriented device to interact with one another (Lakkis,. and
Elshakankiri, 2017). Installing of technologies such as AI, robots, etc. in the process of
manufacturing enables in providing the real time analysis regarding corporate data , predicts
overall productivity and trends that focuses on profitability. Through modernising and adapting
the manufacturing processes, an energy intensive industry can be adjusted, monitored and
improves to decrease energy consumption so that green credentials can be also met. Smart
technologies can increases the efficiency of the shipping and packaging process. Manufactures
can see the data as well as products can be managed to the centres such as distribution centres.
Implementing several technologies within the IKEA to automate processes gives foe increased
productivity, increased efficiencies and also enhanced profit also. The products of the IKEA will
standardised and have more control over the accuracy regarding the components within the
manufacturing process. Through automation process the rooms of any mistakes to occurs is
decreased as well as the collected data is already on a system can be also accessed and audited
more quicker. In order to promotes the growth as well as development resources can be focuses
so that quality and efficiency can be increases ( Mehran, Yan. and Mishra, 2020) .

4. What other supporting function are linked to production and ensure organisation success
It is evaluated that there are various other functions as well which is linked to production.
These all are interrelated with production and it enables in producing products and managing
activities related to it. thus, they help in this practice in effective. Usually, any change or shift in
that function affect on production. Thus, it is required to maintain consistency in entire process.
Thus, there are some function linked with production which is described as below
(Understanding of production and operation management, 2019)
Production control- it is function which is linked to production process. Here, main aim is
control the overall process in order to ensure that production is done in right way and direction.
So, the manager monitor and evaluate entire process to find out where changes has occurred.
Along with it, if there is any deviation in it then necessary steps or measure are taken to ensure
that efficiency of production is maintained. This function helps in controlling of process in
effective way. It can assist in IKEA success as by controlling production it ensure that products
are produced in proper way. In this way goals and objectives of company is attained. Apart from
it, quality of product is also maintained as well which leads to organisation success (Uniyal,
Uniyal,. and Rawat, 2020).
Scheduling – this is another important function linked to production. Here, it a plan is developed
that how actual production will start and where it will end. This means that all components of
production process is integrated together to develop a process. It results in success of IKEA as
with proper scheduling goods are produced. It allows in smooth flow of production and
delivering goods in time. there is no wastage as well of time and cost.
Cost and quality control- the function is related to controlling of quality and cost within
production practice. It is an important function as controlling of quality is major task in it. the
manager has to control quality of products within production. It ensures that within entire
process the quality standards are followed and all product quality is checked and maintained.
Likewise, along with quality cost is also controlled. Here, it is ensured that within production
process cost does not increases and it remains constant. Further, changes are made in process to
reduce cost. This leads to IKEA success as quality is maintained which create positive image of
company in industry. Besides that, cost is reduced and saved. The cost is then invested in other
areas to improve efficiency.

Maintenance of machine- in this function it is ensured that in production all machines are
working properly and there is no loophole in it. for that regular checks are done to ensure that
machines are in good working condition. All parts of machine needs to be function in optimal
way. If there is need to replace damage part then maintenance of machine is done. it leads to
IKEA success as proper maintenance of machine ensure that production does not remain at halt.
This allows in continuous producing in order to fulfil demand of market. In this way it sales is
generated and profits are earned by delivering goods within specified time (VimalKumar, 2017).
so, it is analysed that production linked functions allow in ensuring that quality as well as
production is controlled. Any variation in function will directly impact on production as it is
linked with it.
CONCLUSION
It can be summarised that in every organisation there are different types of operational
practices which are performed. Similarly, in IKEA as well production practice enables in
producing of various types of products. The practice is related to manufacturing of goods as per
market needs. Alongside, it is identified that there is great impact of production on efficiency of
IKEA. It enables in reducing errors, high quality, improving operations, etc. in addition to that,
technology can be embedded into production practice which will result in enhancing its
efficiency. So, various software and application such as AI, robots, IOT, etc can be installed
within production. With that quality will be maintained and performance is improved.
Furthermore, there are various functions linked to production that are scheduling, cost and
quality control, etc. these all enable in success of IKEA by increasing efficiency of production
process.

REFERENCES
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