IKEA operations management - 4810 Words

Operations Management Critical Evaluation of Relevant Issues - IKEA case ï ¿ ½ TABLE OF CONTENTS 2Executive Summary ï ¿ ½ 2Introduction ï ¿ ½ 2Company profile and Situational Analysis ï ¿ ½ 3Growth and profitability ï ¿ ½ 5Culture ï ¿ ½ 5Goals ï ¿ ½ 5Competitors ï ¿ ½ 5SWOT analysis ï ¿ ½ 6PESTLE Analysis ï ¿ ½ 6Political Analysis ï ¿ ½ 6Economic Analysis ï ¿ ½ 6Technology Analysis ï ¿ ½ 7Sociological Analysis ï ¿ ½ 7Legal Analysis ï ¿ ½ 7Environmental Analysis ï ¿ ½ 7Input-Transformation-Output ï ¿ ½ 8Corporate Objectives ï ¿ ½ 9Quality ï ¿ ½ 10Speed ï ¿ ½ 10Dependability ï ¿ ½ 10Flexibility ï ¿ ½ 11Cost ï ¿ ½ 12Polar representation ï ¿ ½ 12Process Design ï ¿ ½ 12Process type ï ¿ ½ 15Cost ï ¿ ½ 16Flexibility ï ¿ ½ 17Quality ï ¿ ½ 17Process Design - Product Design ï ¿ ½ 18Recommendations ï ¿ ½ 19Conclusion ï ¿ ½ ï ¿ ½ EXECUTIVE†¦show more content†¦IKEA has also used extensive manual work in its planning processes and the planning was based on fragmented and unreliable Planning information. Hence, there was a lack of trust between different parts of the supply chain, which even further have enhanced the bullwhip effects in the IKEA supply chain. Other problems related to the supply chain performance was difficulties to get enough attention of data maintenance, the lack of proper follow-up tools to monitor forecast deviations, hard to change mindsets among users, no synchronization of order and stock data, to name but a few. To overcome the difficult situation, IKEA initiated a program (cluster of projects) aiming to taking better control of its supply chain, and enhance performance in terms of delivery service and costs. A new global planning concept was developed and is currently being implemented. Its cornerstones are mutually integrated planning processes, a centralized planning organization, focus on data quality and use of advanced software support. GROWTH AND PROFITABILITY Global sales in Fiscal Year 2011 were 25.2 Billion Euros (23.5Billion Euros in FT 2010). The operating income in FT 2011 was 2.9 Billion Euros, an increase of 0.2 Billion Euros of FY 2010. Fig: IKEA Operating Income Fig: IKEA Revenue IKEA generates 79% of its sales in Europe, 15% in North America and only 6%Show MoreRelatedOperation Management on Ikea1851 Words   |  8 Pagesobjective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strength and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goodsRead MoreOperation Management--Ikea1925 Words   |  8 PagesIKEA History and Company Information IKEA retailing with its Sweedish roots, is based on a franchise system. 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