A-Team projectTask 3.

10 OM decissions

10 Operations Managemnt Decissions

Goods & service design Quality Process & capacity design Location selection Layout design Human resource and job design Supply-chain management Inventory Scheduling Maintenance

Goods and service design

It is simple and straightforward. Products are hard-wearing and easy to live with.

– They reflect and facilitate an easy, natural and unconstrained way of life.

– They express form, and are colourful and cheerful. – And they appeal to the young at heart of all ages.

Quality

IKEA products have the label "Design and Quality, IKEA of Sweden" and are sold in IKEA stores.

KEA works to ensure that products and materials are adapted to minimise any negative impact on the environment, and are safe for customers from a health perspective.

IKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment.

Process and capacity design

It starts with focusing on what's important. Will an expensive finish on the back of a shelf or under a table-top improve the function? Absolutely not. So IKEA designers do not do it, because a product is of no use to the customer if it is not affordable.

IKEA designers design every IKEA product starting with a functional need and a price. Then they use their vast knowledge of innovative, low-cost manufacturing processes to create functional products, often co-ordinated in style. Then large volumes are purchased to push prices down even further.

Location selection

The IKEA store is where the IKEA range is sold. It is also where the range comes to life.

Layout design

Inside the IKEA store, there are hundreds of inspirational displays– realistic room settings– real-life homes– product combinations that provide fresh ideas and know-

how on contemporary interior design

There are up to 10,000 different products offered in some IKEA stores.

There are many new products introduced throughout the year in the IKEA store.

Human resources and job design

118.000 co-workers spread across functions– purchasing– distribution– whole-sale– range– retail– support functions– the Swedwood Group

Supply-chain management

every product start with functional need and a price innovative, low-cost manufacturing processes to

create functional products, often co-ordinated in style designed to be transported in flat packs and

assembled at the customer's home this lowers the price by minimising transportation and

storage costs IKEA's code of conduct defines what suppliers can

expect from IKEA and specifies what IKEA requires from its suppliers.

Inventory IKEA has 45 trading service offices in 31 countries this allows company to be close to suppliers - about

1,350 in 50 countries They can monitor production, test new ideas,

negotiate prices and check quality while keeping an eye on social and working conditions.

Top five purchasing countries China 22%, Poland 16%, Italy 8%, Sweden 6% and Germany 6%

Scheduling

IKEA has 31 distribution centres in 16 countries. Using flat packs, transporting goods where possible by rail and sea, and utilising fuel-saving techniques allows company to be cost-effective and environmentally friendly.

IKEA provide production and design for one year production of one line of products is done

simultaneously with the research and design process of new products

Maintanance

they pay much attention to be in touch with customers and their needs

catalogue serves as a permanent invitation to the IKEA store– constant inspiration– serves as an invaluable source of product information– contains details on how to get to the nearest store and its

opening hours