Ikea operations function
IKEA mainly manufactures types of furniture, such as varieties of beds, bookshelves, sofas, and tables along with bathroom articles and kitchen utensils.
Ikea future strategy
Although cost minimization is necessary to gain more profit on sales. The primary sector provides raw materials to the organisation. A damaged or poor quality product cannot be sold and is a loss for the organisation. The scheduling operations are the process of managing, arranging, optimising work and workloads in a manufacturing process. Flat packages are easy to handle and occupy less space, which is helpful in reducing the transportation costs Yu et al. By adopting the lean management in the company, IKEA has the ability to reduce the manufacturing waste that includes processing time, excess inventory, over production of management, increase in transport time, increased wait time, poor quality of products and operator motion. Reduction of Manpower: The major reason for adopting lean practices in the manufacturing industries is to get more work to be done with the involvement of less number of employees. Although managing capacity according to the anticipated demands and sales pattern has several advantages, the companies, sometimes, have to go through situations where the demand pattern and sale forecast suddenly change. By including the comparison and monitoring of the tasks the IKEA manager will able to meet the outcome in efficient manner for development of dressing table.
Keeping products in stock is advantageous for IKEA as the availability of the product is maintained every time, irrespective of high or low demands for the products.
The change may be in the form of a sudden increase in demand and sales for a specific product or sudden decrease in the demand and sales for a particular product. The benefits of practising lean management in IKEA are the reduction in cost, increase in efficiency, reduction of Manpower, the total involvement of the company, improvement in the morale of the employees, increase in productivity, increase in customer satisfaction and environmentally friendly.
Standardize: This is the basic method by which the manufacturing process is required to be done in a consistent and standardized manner that help in achieving the growth in the production of the company.
Organisation also provides equipments and training to accomplish the task easily.
Ikea operations management case study
The improvement in the morale of the employees cannot be seen at the initial stage of the lean practices, but as once the employees will completely adopt the lean practices the morale raises with their involvement and empowerment in the company. But it has been analyzed that quality sustainability increase cost and time also. IKEA is an organisation that produces furniture and some operations management decisions that are involved with this organisation are purchasing wood and fabric, hiring and training workers, planning the location and layout of the furniture factory, as well as purchasing cutting tools and other fabrication equipment. Use of such materials does not harm the environment and the waste produced is also reduced to a significant level Modi and Thakkar, IKEA uses the e-wheel for maintaining efficient distribution and environmental sustainability at the design stage of each product. IKEA management could user the critical path analysis for following processes: Define the tasks and put down them in an order for manufacturing of furniture. Additionally, IKEA works directly with suppliers to improve their own quality and share innovations in technology, production, and materials — all to help reduce costs and increase the quality of products. The study of all these processes help a company analyse the current position in the market, and according to the analysis, the company designs strategies and policies in the areas that are required to improve for enhanced sustainability and market value Slack and Brandon-Jones, However, in IKEA, capacity management is not related to demand pattern for a product, and it is also not carried out in accordance with the uncertain situations. IKEA also ensures that the cost involved in the production of home furnishing should be minimum Cosmo and Yang, The use of steel in its products has improved the safety and ergonomic aspects of its design. There is an in-store logistics manager responsible for the ordering process and a store goods manager responsible for material handling logistics at all IKEA stores. Every Ikea employee still follows the vision quotes of Ingvar Kampard " to create a better everyday life for many people". These long term partnerships give IKEA greater bargaining power allowing them to drive their costs down even further. The products are provided to the customers in a flat-packed form.
The crucial departments of the company include, Human Resource HR department, Retail department and Finance department.
The company must provide proper training and education to the employees that will help in increasing the awareness of lean management in the manufacturing.
This is according to the philosophy the company follows, the products should be affordable to people of every category in the society.
Inventory management of IKEA is one of the best, which helps it in achieving operational excellence as a wide variety of products are available to please the customers, and the prices are low as compared to other companies in the market.
Recommendations for ikea
Additionally, IKEA works directly with suppliers to improve their own quality and share innovations in technology, production, and materials — all to help reduce costs and increase the quality of products. These warehouses use automatic storage and retrieval systems, while the low-flow warehouses leverage more manual processes. By adopting the lean management in the company, IKEA has the ability to reduce the manufacturing waste that includes processing time, excess inventory, over production of management, increase in transport time, increased wait time, poor quality of products and operator motion. The company should also promote the capacity management strategies to gain the productivity growth in the manufacturing market. Organisation is giving discounts and offers to online buyers. Every Ikea employee still follows the vision quotes of Ingvar Kampard " to create a better everyday life for many people". The companies are required to analyse the market and sales patterns for individual products manufactured by them as the first step of capacity management. The prices of the products set by the organisation are comparatively lower than the other organisations. IKEA manages its suppliers by maintaining long-term relationships with them. It is also required to compete with other brands. Lean manufacturing uses raw materials which are recyclable and mostly are the renewable resources. The organisation has introduced some quality control tools and practices as they are concerned with the quality of the products. The company has adequate infrastructure for storing manufactured products that include warehouses and stores, and the company does not face storage issues. IKEA company checks the outputs whether they are meeting the quality standard of organisation or not.
based on 12 review