A-Team project Task 3. 10 OM decissions

1. A-Team project Task 3. 10 OM decissions

2. 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

3. 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.

4. 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.

5. 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.

6. Location selection • The IKEA store is where the IKEA range is sold. • It is also where the range comes to life.

7. 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.

8. Human resources and job design • 118.000 co-workers spread across functions • purchasing • distribution • whole-sale • range • retail • support functions • the Swedwood Group

9. 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.

10. 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%

11. 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

12. 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