Unit 16 Operations and Project Management: IKEA Case Study & Analysis

This report provides a comprehensive analysis of IKEA's operations and project management strategies. It begins with an introduction to IKEA, followed by a detailed explanation of the difference between operation and operations management. The report reviews and critiques the implementation of operations management principles within IKEA, analyzing how well the company's operations management meets its organizational requirements. It discusses continuous improvement as a philosophy, describing Lean principles and presenting a continuous improvement plan with justified recommendations. Furthermore, the report includes an overview of a case study, analyzes project methodologies and tools used by IKEA, and reviews the effectiveness of the Product Life Cycle (PLC) in the context of a manufacturing organization. The analysis aims to identify areas for improvement and provide actionable insights for enhancing IKEA's operational efficiency and project success.

Unit 16 Operations
and Project
Management
1

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Introduction to the selected organization...............................................................................4
An explanation of operation vs operations management.......................................................5
Review and critique of the implementation of operations management principles within your
chosen organization................................................................................................................6
Analysis of the extent to which the operations management of the organization in the case
study meets the requirements of the organization..................................................................8
Discussion of continuous improvement as a philosophy and describe the Lean principles...9
A continuous improvement plan, including your justified recommendations for improvement,
based on your review and critique of operations management principles within your
organization..........................................................................................................................13
PART 2..........................................................................................................................................14
Overview of the case study...................................................................................................14
PLC in context to manufacturing organization based in the Midlands................................14
Analysis of the project methodologies and tools used.........................................................14
Review and Critic of effectiveness of PLC..........................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Operation management mainly deals with approaching daily basis and strategic business
issues systematically. While in terms of project management it is associated to plan, organize,
motivate and controlling business resources to accomplish goals and objectives (Abdelhadi,
2021). In today's business world organizations are operating in a highly competitive business
environment in which operations management proves to be an effective tool or technique which
helps administration to create the highest level of efficiency of their production services.
Operation management is mainly associated with converting materials and labor into a finished
product and services to enhance business profitability. With help of managing, operations and
projects with tools and techniques company can effectively serve consumers.
The present report is conducted on IKEA which is operating its business services in the
retail industry sector and was founded in the year 1943. The company offers a wide range of
products services which range from food products, ready to assemble furniture and home with
skilled and talented employees. In this report, formative discussions have been conducted on
organization introduction along with the implementation of operation management principles in
the organization. Along with this report include discussion on continuous improvement and
recommendations for the company to make further improvement. The report also includes a
discussion of stages of PLC analysis of project methodologies and tools.
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PART 1
Introduction to the selected organization
IKEA is one of the leading organizations dealing in the retail industry sector. This company
offers a wide range of products and services that range from items like furnishings, home
machines also such countless extras. It is a notable world's biggest furniture retailer company
that consistently gives the best nature of services and products to customers around the globe. It
has been evaluated that the company operates its business services with a large number of
talented and skilled employees, those are the most important assets of the organization. The
respective company undertakes the use of best strategies and practices to offer high-quality
offerings to individuals to fulfill their requirements (Bechard, 2021). Furthermore, it has been
evaluated that respective organizations as compared to other rivals use best practices to satisfy
the needs and demands of customers which draws in the enormous number of customers’
attention. Furthermore, it has been underlined that IKEA is additionally known for its constant
item improvement, cost control, and functional subtleties by which they can foster viable valuing
techniques in any sort of circumstance. While the worldwide extension has been raised then this
organization gets immense changes in their general expense and sells its item with reasonable
value. In addition to this, it has been evaluated that with the help of efficient plan and procedure
this organization is consistently ready to deal with any tough spot of the firm and gain effective
development of their business. In addition to this, to offer high-quality products and services
IKEA utilizes specialized assets by which it can deal with its all-over capacities (Ernst, 2021). In
this manner, activity the board assumes a crucial part inside the company as it assists them with
overseeing and control all around the creating labor and products through acquiring unrefined
substance from the better providers. So they could effectively carry out those techniques which
are utilized to make successful arrangements towards firm.
Moreover, IKEA mainly emphasizes upon undertaking advantage of feedback from the
consumer after offering them products and services. With the assistance of taking feedback, they
can contemplate their shortcomings so they can bring changes and offer items to customers as
per their needs and demand. It is an extremely useful technique to impact consumer decision-
making expansively towards services and products which are being offered by the company. It
generally creates suitable benefits for the company and enhances its ability to maximize the
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overall satisfaction of customers (Shujaat, Tahir and Tahir, 2021). Along with this, it has to
maximize organization profitability Managers off IKEA foster more supportive and better
arrangements by which they can create more plans inside furnishings and ready to accomplish
objectives and goals effectively.
An explanation of operation vs operations management
Operation management is defined as an area of management that an organization undertakes to
design and control the overall production process. It is also helpful in redesigning operations of
the business organization towards goods and services manufacturing. While if it is talked about
operation management it is a particular process that helps an organization to accomplish future
goals (Haris, 2021). It has been identified that in terms of IKEA operation embraces all the
activities which are essential for an organization to deliver and create company goods and
services to consumers. While in terms is operation management it is mainly concerned with
management designing and improvement of system as to develop services and products.
Review and critique of the implementation of operations management principles within your
chosen organization
Operation management is a technique of tool which helps organizations to take left highest
level of efficiency in the performance, products, and services. There are various forms of
principles of operation management that provide a strategic edge to an organization. In terms
with IKEA to conduct to day operations organization with the help of operation management
principles, they can maximize their growth (Huajiang and SHANG, 2021). There are various
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forms of principles of operation management which are defined below. Operation management is
defined as a combination of various forms of services and goods and strategies that organizations
undertake. In terms with IKEA operation management which have been followed by the
company is being discussed:
Principle of Change:
Change is useful for every organization. In respect to IKEA, the manager of this specific
company normally carries out new speculations and arrangements to conduct manufacturing
system operations effectively. Accordingly, it is fundamental for a firm to change its functions
according to consumer trends and factors prevailing in a business environment. With the
assistance of this, they can maximize their overall growth and profitability.
Principle of Organisation:
It is the most significant role of operations management that gives an enormous number
of production advantages to the organization so they effectively maintain their business. In this,
it has been evaluated that IKEA works various kinds of operations that are interconnected with
one another by operation management principles. Without utilizing functional standards
particular firm could not satisfy customers and can not acquire more competitiveness as
compared to other rivals in the industry. In this, a company needs to use this principle to serve
customers
Principle of Reality:
Operations management needs organizations to focus on various sorts of issues just as
strategies. In respect to IKEA, they utilize this guideline for bringing an effective form of
solutions to overcome issues effectively serve customers. In addition to this, this principle is also
helping organizations to make solutions on a real basis.
Principle of Accountability:
Being accountable is considered as a key that is utilized by activity the leaders and
managers with the company towards assembling frameworks. In connection with IKEA,
managers consistently make fitting principles and strategies to look at the viable premise of
conveying labor and products to clients (Kaswan and Rathi, 2021). With the assistance of this,
they can accomplish their objectives and targets too. This signifies that accountability plays an
essential role in the organization.
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According to the above-mentioned analysis, it has been identified that IKEA can
undertake advantage of this traditional principle than they can effectively able to influence the
attention of a large number of consumers awareness towards the products and services. The
organization needs to maximize profitability with the help of emphasizing operation
management principal.
Various approaches to operations management:
IKEA can undertake advantage of different forms of operational approaches as to
maximize performance and fulfill consumer needs and demands efficiently. Mentioned below
operation management approaches is being discussed below:
Lean production:
It is considered as one of the most vital methodologies in which an orderly just as viable
assembling system is made by the supervisors so that every one of the exercises can be
performed successfully and lessen any kind of wastage of material (Khan and Shafiq, 2021). In
this way, managers need to use every one of the assets in a viable and suitable way. In the
current report, IKEA utilizes this methodology to lessen their additional expense just as to foster
a high quality of products and services. Furthermore, it has additionally been said that by doing
large-scale manufacturing supervisors can use every one of the assets successfully and decrease
the general expense.
Six sigma:
Aside from lean creation, another fundamental methodology incorporates various stages
like estimating, planning, improving, evaluating controlling. This is a methodology utilized by
the IKEA management tea, in request to further develop a competitive image at worldwide
commercial center. For this, it is the obligation of a better than make a successful framework just
as analyze the presentation of the association at the commercial center. This will help them in
executing operations with technologies in a work environment that can handle the mistakes and
limit the expense of the organization.
Analysis of the extent to which the operations management of the organization in the case study
meets the requirements of the organization
Organizations in the retail industrial sector are performing in a highly competitive business
environment in which there are a few companies that are utilizing various kinds of operational
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tools to run business objectives in a specific mode. In this, IKEA has an enormous number of
tools by which they can give better execution in a smooth mode. For this, there are a few levels
of operation management that the company is using to meet firms necessity, those are referenced
underneath:
From the absolute first level, the organization needs to lessen its whole expense of tasks. In
connection with IKEA, this firm has been embraced a few standards of operations management
so they can have better thoughts towards the production of services and production process (Liu,
Zhang, and Zhang, 2021). However, they neglected to apply those standards to their
manufacturing system and failed to satisfy consumer demand.
To work on the whole course of delivering services and products IKEA needs to
accomplish a qualitative and effective system by which they can give better execution towards
manufacturing goods. In this, principles of management operation assist the firm with keeping
interlinked their information that further develop fabricating interaction of firm. For the
advancement of this surviving company could carry robotics functions capacities with the
assistance of human assets to meet failed objectives and goals. So they can utilize principles to
serve customers effectively.
It has been identified that offering final products to end consumers is the next wish of
IKEA. To satisfy this interest they by and large make such sort of methodology by which they
could acquire innovations as to bring something unique to serve customers as to significantly
overcome negative impact and fulfill customer's needs (Rodrigues and Brandão, 2021). A firm is
having various sorts of issues so that here principle of reality is not a lot wonderful to accomplish
hierarchical objectives and goals.
Finally, security is considered in the as best interest of IKEA, as indicated by this firm is
expected to have effective innovation strategies concerning change principles. With the
assistance of this, they can acquire not many changes in their manufacturing process towards the
accomplishment of designated objectives and goals. Along with this, safety is the most
significant part to guard all assets like furnishings, home machines, etc. It is useful for a firm to
foster a positive image in the market region. In this, the respective principle is helpful for
organizations to accomplish organization requirements and demands.
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Discussion of continuous improvement as a philosophy and describe the Lean principles
To operate in a highly competitive environment like the retail industrial sector leading
organization like IKEA needs to undertake regular changes by making continuous improvement
plan in their goods services and another production process. This organization is required to
undertake the use of techniques and strategies to execute changes in organizational workplace
premises and align them with employees’ roles and responsibilities (Madhani, 2021). In terms of
IKEA organization management with the help of different tools of operation, management can
enhance their competitive edge in the marketplace. However, the form needs to evaluate the
current market needs of consumers to implement conception new strategies.
Continuous Improvement Plan
The continuous improvement plan of IKEA is going to be discussed as follows:
Improvement Expected outcome Current performance
level
Development in
strategies
Quality IKEA is a multi-
national organization
that offers products
and services ranging
from food and
refreshments, home
machines, clothes,
child and children
products, etc. The
company head needs to
give top-notch services
and products to
customers. As if the
organization fails to
offer quality services
and products then it
will negatively impact
IKEA is a business
organization that
offers high-quality
services and products
and increases the value
of items by adding
new elements to their
products to fulfill the
necessities and needs
of clients in a viable
way.
It is essential for the
management of IKEA
need to take on
trendsetting innovation
to inspect the
requirements of
clients. Alongside this,
highly advanced
techniques help in
working on the
productivity of staff
individuals.
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upon organization’s
positive image in the
market segment
(Ostapko, 2021).
Promotional events IKEA is a leading
organization that is
notable across the
entire world. Along
with this, it has been
underlined that it is
fundamental for the
managers to undertake
the use of online
advertisement with the
assistance of which
organizations can
make mindfulness
about their
contributions and
extend their business
substance successfully.
At present IKEA
embraces print media
as well as social media
to advance their
contributions to the
market segment. With
the help of these
marketing techniques
helps IKEA to n draw
an enormous number
of clients and expand
its overall consumer
base.
It is important for
IKEA management to
further develop their
promoting technique
as indicated by the
changing climate to
influence the mindset
of customers towards
organization products
and services. With the
assistance of
continuous
improvement,
directors of the
organization can draw
in an enormous
number of clients at
the global level.
After-sales service It has been underlined
that IKEA is focusing
on giving after-sales
services to their clients
with the assistance of
which they can hold
them for a more
extended timeframe.
In the current
circumstance, IKEA
provides return
policies and refund to
the consumers.
Furthermore, they
additionally give
assurance to their
It is fundamental for
the top supervisory
group of IKEA to
upgrade the guarantee
time frame with the
goal that it will be
helpful for worldwide
clients. market. This
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consumers that in case
the products don't
fulfill their necessities
they can get them once
again.
thus helps them in
working on the
altruism of the
organization at the
market segment.
According to the above-mentioned continuous improvement plan it has been underlined
that to improve in overall quality and goods and services efficiency produced by the
organization. IKEA needs to implement high-tech and upgraded technology periodically
according to the changes prevailing in the business environment and by analyzing competitive
strategy (Rjoub, Iloka, and Venugopal, 2022). This will help them to make use of maximum data
from consumers and staff and make appropriate changes in the manufacturing and production
process accordingly
Six Sigma
Six Sigma is a combination of various techniques and tools that organizations undertake
to make changes in their manufacturing process (Ozkiris and Omeroglu, 2021). This form of
strategy is inclusive of which is term as important tool helpful in making improvement and work
quality and make introduction in errors within organization workplace premises. Key aspects of
Six Sigma is being discussed below:
Define:
In this underlying stage, IKEA can distinguish its general issues which could be raised whenever
in the work environment
Measure:
After characterizing every issue, the company can assess employees working
performance by applying fixed norms on a regular schedule.
Analyze:
As indicated by this phase of the DMAIC approach IKEA can examine changes by which they
have tackled their general issues.
Improve:
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In this stage, IKEA can carry enhancements through applying new ideas with the
assistance of representatives. Alongside they are likewise ready to complete not many changes if
vital.
Control:
In this last stage, high specialists and managers of IKEA are ready to control and screen
each issue by working on the norm of wastage material to accomplish objectives
A continuous improvement plan, including your justified recommendations for improvement,
based on your review and critique of operations management principles within your
organization
Planning:
It alludes to the mix of a few thoughts and ideas which is utilized by any individual for
their business just as firms. In this, the Manager of IKEA has a huge number of thoughts and
considerations to design something better to accomplish hierarchical objectives and destinations
impeccably.
Do:
In the wake of making specific arrangements, there are so many things to do. In terms
with managers of IKEA, it has been evaluated that they have responsibilities for various kinds of
thoughts to accomplish firms development and usefulness
Check:
In these elements of operations, manager individuals is having the liability to check
employees’ overall performance in respect of accomplishing wanted objectives and targets.
Act:
Further improvement into the production cycle of IKEA, the manager is expected to
improve procedures by which they can get feedback from customers and further deliver them
products and services accordingly.
Recommendations
As per the above analysis of concepts and strategies and techniques that have been
undertaken by IKEA it has been recommended to the organizations to make effective changes in
organizational structure and bring improvements in their manufacturing process and promotional
techniques. This company is recommended to make use of digital marketing and conduct regular
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