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Part of the explanation to this is Sample For Highschool Students Resume, that IKEA has lacked a common and structured tactical planning of demand and replenishment. Hipaa Hipaa Forms - Office Forms? In terms of capacity planning, all different parts of the supply chain (stores, warehouses, regions, etc.) tried to optimize its own part of the supply chain, leading to a set of imbalanced supply plans with a low and unstable total throughput with long. Replenishment times for the supply chain as a whole. The above mentioned situation led to a number of problems with direct impact on performance in a number of ways. First of all, the supply chain had a functional orientation with limited transparency, leading to a reactive behavior with fluctuating goods availability (sometimes stock out situation and sometimes over stock). IKEA has also used extensive manual work in its planning processes and Art Teacher Cover Letter, the planning was based on Hipaa Hipaa Hipaa Forms fragmented and unreliable Planning information. Hence, there was a lack of Importance Of Having Disaster Recovery Plan S. Randal, 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 Hipaa Form. Forms Forms, 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 Art Teacher Cover Sample For Kids, 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 - Office Forms, its supply chain, and enhance performance in terms of delivery service and Resume Template High School, 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 Hipaa Forms Hipaa Forms, 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% from Asia. The main financial principles of IKEA are financial stability, independence and flexibility, as a result, most of their profits are reinvested in The White Template, the company in order to grow. IKEA’s success is directly linked to Form. Hipaa Hipaa Forms Forms, its culture, which encourages all employees to share values like togetherness, cost-consciousness, respect and Of Having A Good Disaster Plan S. Randal, simplicity (IKEA, 2012). IKEA has also a high commitment to Hipaa Forms Forms Forms, human resources practices in order to identify the employee needs, ambitions and capabilities.
The products as well the marketing strategy, also reflect the company culture. The products are named after Swedish cities or famous Swedish people, and IKEA’s colors are yellow and blue, the colors of the Swedish national flag. IKEA’s collaborators are very important, and without them IKEA was not able to Administrative | Download Free, invent and produce its products. Hipaa Form. Hipaa - Office Hipaa - Office Forms? Nowadays, 10000 products are manufactured by 2000 suppliers and transported to IKEA stores. IKEA has introduced local offices to their suppliers in Template, order to monitor them but also to help creating new products in cooperation with them (IKEA , 2012).
IKEA has also long-time contracts with its suppliers which avoids prices fluctuations and builds close relationships between them. IKEA does not have real competitors. There are lots of furniture retailers, but IKEA is unique in the way it operates. It operates worldwide with well-designed products at Hipaa Form. Hipaa - Office Forms Forms Forms, low cost. Wide range of well-designed products. Focus on innovation.
Large network of Sample Students Template School, suppliers. Economic of scale. Strong brand image. Sales via Internet. Global expansion – Asia and Latin America. Product standardization – problems doing business in Asia. Low level of customer service.
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Demographic factors – Aging in Europe. As part of the national or global trends and changes, IKEA is just one example of Hipaa Forms - Office, firms that are successful in both domestic and Of Trademark, international business. The Swedish furniture retailer has found the Scandinavian style of furniture that was combined with “do-it-yourself” flat packaging became popular and set a global cult brand. IKEA due to the economic changes and trends is adopting different kind of strategies that will take an appeal on their customers and aiming to own the customer loyalty. Hipaa - Office Hipaa Forms? The strength of IKEA grew from the ownership transfer of the Executive Administrative Assistant | Download Free, business to the Stitching Ingka. It made the Hipaa Hipaa, company adopt other furniture style such as dinnerware, lightings and even rugs. Yet, the economic conditions affected the company’s market performance and Templates, declared a slowdown because of lacking the strategic direction. In order to generate the high performance of the business, IKEA considers exchange rates, low cost suppliers, lean manufacturing.
The IKEA used quality technology and systems to promote the shorter queues, proper scheduling, tracking and trading patterns, and staffing. It aims to be more productive and establish employee preferences. The system made the Hipaa Form. Forms Hipaa Forms - Office, IKEA in a position to ensure the right number of staff in a right place and in a right time to match the unique trading pattern s at each stores of IKEA. The company view in optimizing everything from the supply chain is also optimizing and managing the workforce to create an efficient store environment and keep customers happy. IKEA contributed much in the society as they provide opportunities in people and the employees are entitled in Treatment In Bankruptcy, different benefits such as insurance and pensions. Moreover, the company promises to Hipaa Hipaa - Office Hipaa Forms, provide more high quality furniture that sticks to their original concept – stylish furniture at low prices. The legal compliance of IKEA is strictly implemented with the relevant and applicable laws and regulations that pertain to the environment, social and working conditions. Administrative Resume | Download? The company also scheduled the most demanding requirements to be specific in maintaining the list of Hipaa Forms Hipaa - Office Forms, laws and regulations and with the procedures. With regards to the environmental factors such as the air, noise, and water, inspections are implemented to Treatment In Bankruptcy, ensure the company provides corrective actions within the stipulated time. The environmental inspection is part of the legal documentation and environmental authorities as the business operations are on-goings and maintains the competence.
Recycled and Renewal materials. Finished products(beds, sofas, etc.) Good business behavior. Prevent child labor. Realistic room settings. Specified retailer centers. Delivery of products. As per Slack (2010) , there are five basic performance objectives that apply to all organizations: quality, speed, dependability, flexibility and cost . These objectives have order-winning, order-qualifying and less important factors. Hipaa Hipaa - Office Forms - Office? “Order winning factors are those things which directly and significantly contribute to winning business.
They are regarded by customer as key reasons for purchasing the product” (Slack et all, 2010,pp 69). Simplified it is what a company does in order to make customer buy their products and not from their competitors. According to Slack (2010) raising performance in an order-winning factor, will result in gaining more market share or a better overall performance. Order-qualifying factors are “those aspects of competitiveness where the operation’s performance has to be above a particular level just to be considered by Licenses the customer” (Slack et all, 2010, pp.69). Form. Hipaa - Office Forms? Products must fulfill minimum requirements in order to be considered by the customer. If the Treatment Of Trademark, products are below the minimum requirements, the company will not sell their products end eventually will not be competitive in their business environment. Hipaa Forms Forms - Office Forms? Moreover, less important factors are such factors which are “neither order-winning nor order-qualifying and do not influence customer in a significant way (Slack et all, 2010, pp.69). “Quality is a major influence on customer satisfaction or dissatisfaction” (Slack et all,2010,pp.40).
Quality for IKEA means that their products are functional and safe to use. The quality of Importance A Good Disaster Recovery Plan - Paul, IKEA’s products is subject to the international standard ISO 17025. Due to this, IKA has established test laboratories, where the products are tested in order to meet the customer’s demands, not only in terms of Hipaa Form., design, function and price, but also with regards to safety, stability and durability (IKEA Right Quality, 2010). As per Sample For Highschool, IKEA slogan , : Is is Hipaa Hipaa Forms Hipaa Forms - Office, our customers that we want to come back – not our products! ” (IKEA Right Quality,2010), IKEA tests products not only during the development phase, but also takes samples from products that are already in one of IKEA’s stores. Quality in this case is an order-qualifying factor for IKA, because if the safety and function is not guaranteed, customers would not consider buying one of IKEA’s products. Nevertheless, quality can be seen under a different aspect, the customer have to go all the way through the store before they can pay for the products, therefore, IKA needs to present their products within the 10+ Free Template, stores in an attractive and appropriate way. In addition, referring to families, IKA takes care of their children while they are shopping. This additional service leads to more quality for the families as well to customer satisfaction. In this case, quality is an order-winning factor for IKEA. “Speed means the elapsed time between customers requesting products and receiving them” (Slack et all, 2010, pp.40).
For IKEA speed is a less important factor since IKEA is not delivering their products. Customers chose their products and pick them up by themselves. Customers also take over the transportation from the store to the home. The speed is depending on the customer and not IKEA. “Dependability means doing things in Hipaa - Office Hipaa, time for customers to receive their goods exactly when they are needed or at last when they were promised” (Slack et all, 2010, pp.42). For IKEA dependability means to assure that the Sample For Highschool Students High School, wide range of Form. Hipaa - Office Forms Hipaa Forms, products that IKEA offers is available for customers on time.
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Product flexibility – the operation’s ability to Form. Hipaa - Office Forms Hipaa Forms - Office, introduce new or modified products; Mix flexibility – the operation’s ability to produce a wide range of products. Volume flexibility- the operation’s ability to change its level of The White Party, output, to produce different quantities of products. Delivery flexibility – the Hipaa Form. Forms Hipaa, operation’s ability to Of Trademark Licenses, change the Hipaa Hipaa - Office Forms - Office, timing of delivery. For IKEA product flexibility is Templates Template, essential for the company’s success. According to IKEA’s slogan ” To create a better everyday life for the many people” (IKEA Welcome Inside, 2010, pp. Hipaa Form. - Office Forms Hipaa Forms? 19), IKEA puts emphasis on innovation to satisfy all the different needs of their customers.
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Not surprisingly, low cost is a universally attractive objective” (Slack et all, 2010, pp.48). The main goal of IKEA is to Hipaa Hipaa Forms, offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them (IKEA Welcome Inside, 2010, pp.7). This goal reflects the Treatment Of Trademark Proceedings, importance of the cost objective to IKEA. As multinational company, IKEA benefits of economic of scales. IKEA offers their products at low prices, which attracts more customers as IKEA would offer their products at Hipaa Form. Hipaa - Office Forms, high prices.
Because of 10+ Free Program Templates, this, the costs to produce one product are going down, which allows IKEA to offer them at low prices. Furthermore, the flat packages reduce the overall warehousing and distribution cost. The common packages have most of the time space between the surface of the package and the product inside. This space or unnecessary air cost money. By using the flat packages, IKEA spends less money for transportation and can offer their products at low prices. Moreover, the customer contributes to IKEA’s low prices. The Stores of IKEA are located outside the city centers where the rest for IKEA is much cheaper, customers to go the stores as well bring the product they have purchased to their home. In addition, customers also put the product together by themselves. All these are a factor that reduce the overall costs of IKEA and is why IKEA is Hipaa - Office Forms Hipaa Forms - Office, able to offer such low prices. Resume | Download? As a result costs is an order-winning factor for IKEA , because IKEA uses low prices to Hipaa Form. Hipaa - Office, attract customers.
The polar representation shows the relative importance of IKEA’s performance objectives to The White Flyer Template | Awesomeflyer.com, its products. According to Slack (2010) it is called polar representation because the scales which represent the importance of each performance objective have the same origin. The bold line describes the Hipaa - Office Forms, relative importance of each objective. The close the Download Party Flyer | Awesomeflyer.com, bold line is to the common origin, the less important is the Form. Hipaa - Office Hipaa, objective to IKEA. Fig: IKEA polar representation. As can be seen in the polar representation the objectives cost, quality and flexibility are the order-winning factors for IKEA. Dependability is an Administrative Assistant, order-qualifying factor and Form. Hipaa - Office, speed does not influence IKEA’s customers in a significant way and is therefore a less important factor. Cost can be seen as an A Good - Paul S. Randal, order winning or qualifying factor. For IKEA it is definitely an order winning factor because they attract their customer with low prices. Hipaa Hipaa Forms Hipaa? IKEA has lower prices than its competitors do, which gives IKEA a competitive advantage. There are three performance objectives (cost, flexibility and quality) that IKEA puts a lot of emphasis on.
In the following sections, IKEA processes will be identified, and analyzed how the processes meet the Download Flyer Template, performance objectives with the Forms, interrelation between product design and process design. To better identify the process types, the “Four V’s” model will identify what implication each dimension (Volume, Variety, Variation in demand, Visibility) for Resumes For Highschool Students Resume High the cost of Hipaa Hipaa - Office Forms, creating IKEA’s products have. In general, as per Slack (2010) high volume, low variety, low variation and low customer contact all help to keep processing costs down. With 10000 different products, IKEA produces a high volume of products. Due to the economics of scale the units’ costs are low.
The wide range of the Template School, products means that IKEA has a high variety in its product line. Moreover, the demand is rather predictable for IKEA. Hipaa Form. - Office Hipaa Forms? Therefore, the Program Templates, variation in demand can be seen as low. Finally yet important, the - Office - Office, contact to their customers is also rather low. Customer choose their products and pick it them up by themselves, there are some staff and information desks where customers can ask for help , but overall IKEA has low contact with the customers. Based on the “Four V’s”, it can be seen that IKEA manufactures a high volume and Assistant Resume, a high variety of products: Fig: IKEA Variety Vs Volume. Although IKA produces 10000 variants of products, IKEA is Hipaa Hipaa Forms Forms, using mass production to produce its products, the different variety of its products do not affect the basic process of Sample Students Resume High, production (Slack et all, 2010, pp.93) .This means that the variety is high to customers but the variety in the production process is low. There are advantages as well disadvantages of mass production.
The main advantage of mass production is that a company can achieve economic of scale. “Economic of scale in production mean that production at Hipaa - Office Forms Hipaa Forms - Office Forms, larger scale (more output) can be achieved at lower cost (i.e., with economies or saving)” (Hussain, 2010, pp. 149) . Since IKEA is producing a high volume of products, the company is achieving economic of Download Party Flyer Template | Awesomeflyer.com, scale as illustrated in Form. Hipaa Hipaa Forms, the graphic below, which is in fact a competitive advantage: Fig: IKEA average Costs Vs Output. Furthermore, it has the advantage that it reduces nonproductive activities such as preparing materials and tools and Program | Budget Template, it diminishes human errors due to Hipaa - Office Forms Hipaa Forms - Office, standardization of the operations, in addition, workers perform simples work, as the tasks are repetitive. This allows companies to hire workers with limited technical or mechanical skills after a short training period and Administrative Resume Free, will reduce the employees’ costs in Hipaa - Office Hipaa - Office, the long term (Dolgui Proth, 2010, pp. 197). Nevertheless , there are some disadvantages, the rigidity of mass productions systems is one, which makes any production change very costly, and the variety of products that can be produced on the same system is limited (Dolgui Proth, 2010, pp. 197). Mass production , in one hand, has the advantage that IKEA can achieve economic of Licenses In Bankruptcy Proceedings, scale, as already mentioned in order to meet the performance objective cost, in the other hand, it has the Hipaa Forms Forms - Office Forms, disadvantage that the inventory level is high which in particular means that the products of IKEA are make-to-stock (MTS). “IN a make to stock process individual orders are not assigned to customers during manufacture” (Schroeder, 1993, pp.174). Resumes For Highschool Students Template? This in particular means for IKEA that the Hipaa - Office Forms Forms, company must align their processes in a way that reduces their overall stockholding cost. To reduce the costs for storing the products, IKEA uses flat packages that do not waste unnecessary space.
Using flat packages also saves transportation costs that lowers the prices for the products. In addition , the stores of IKEA have all large storing halls from where the customer picks up its chosen products. This means that the products will be delivered right away from the Art Teacher Cover, suppliers to the stores. Hipaa - Office Forms Hipaa Forms? There is no between storage. Referring to IKEA’s stores, they are also located outside the city centers, where the rent for IKEA is much cheaper. Moreover, IKEA does not waste any leftovers that occur from the mass production process. For instance, leftover from Of Having S. Randal a table will be used to produce a chair. Finally yet important, the customer has a significant influence on the production costs, IKEA produces the components of the furniture; the installation does the customer. Hipaa Forms? This is one reason why IKEA can produce such a variety and high volume at a mass production level. Furthermore it allows IKEA to offer its furniture approximately 20% cheaper (Koenig , 2000, pp.
67). Another important objective – flexibility – must be considered in the mass production process. As seen the rigidity of mass production systems is a major disadvantage, which makes any production change costly. Nevertheless, to ensure flexibility in terms of a wide range as well as innovative products, IKEA works together with the more than 2000 suppliers. Treatment? Most of the production occurs at the facilities of the suppliers. The rest is produced at the IKEA industrial group facilities Swedwood and Swedspan. IKEA is buying production capacity instead of buying product quantities from their suppliers. This means that IKEA is ordering, for instance, 10000 hours of production rather than 10000 beds. If IKEA launches a new product or need to produce existing products, IKEA examines which of their suppliers have the best capabilities to manufacture the product. The next step is that IKEA orders production capacity and 24/7 production at the suppliers facilities can begin, because IKEA cooperates with such a high number of different suppliers, IKEA can provide such a high variety and high volume to their customers an can eventually be flexible.
According to Dolgui and Proth (2010) mass production diminishes human errors due to the standardization of the operations. In addition, the quality of IKEA’s products is subject to Form. Forms, ISO 17025. Due to this, IKEA has test laboratories, where products are tested in order to meet customer’s demands in terms of function, price and Download Party Flyer, also safety, stability and Form. Hipaa Hipaa, durability (IKEA Right Quality, 2010). PROCESS DESIGN – PRODUCT DESIGN. Process design and product design are interrelated. Usually it is common for manufactures that they fist manufacture or designs a product and then will target a price for the product and set up process that endure that the product will be delivered to the customer. IKEA is going it the other way around (Margonelli, 2002). IKEA first targets a price and tries to find a supplier that is able to manufacture the product. Fig: Process Design relation with Product Design. For example, IKEA is planning to Executive Administrative Assistant Resume, design a new chair; they will target a price (for instance, 10 Eur). Afterwards, IKEA chooses a manufacture that has the capability to manufacture the chair, and then designers of Hipaa - Office Forms, IKEA will design the chair according to the customer trends.
Finally the chair will be manufactured in large quantities to lower the unit costs and eventually distribution centers will deliver the chair to 10+ Free Program, IKEA stores. Hipaa Forms - Office? In the image below, the Letter Sample Trick For Kids To Follow., “process design has an impact on the product design and Hipaa - Office Forms Hipaa - Office Forms, vice versa” (Slack et all, 2010, pp.88) Fig: Process Design – Product Design. Today, IKEA is one of the most successful furniture retailers in the world. This means the operations management of IKEA has been set up processes, which meets the performance objectives in many ways, therefore it is difficult to In Bankruptcy Proceedings, find many areas for improvement, especially regarding the mass production process. IKEA generates more than 75% of its sales in Form. - Office Forms Forms Forms, Europe and only 6% in Asia, even though Asia has much larger customer market. IKEA has its background in Sweden, but IKEA should be interested in increasing its sales in Asia. The key reason why IKEA is not successful is Art Teacher Sample For Kids To Follow., that the “Do it yourself” culture, among Asian customers does not exist in Form. - Office Forms Hipaa Forms, the same way as in Europe. Compared to Administrative Assistant Resume | Download, Europe, to hire workers who setup your furniture in Asia is much cheaper, they do not have to Form. Hipaa, do it by themselves. However as already mentioned IKEA produces only the Sample For Highschool Students Resume School, components of the furniture; the installation does the customer. Hipaa Form. Hipaa Hipaa Forms? This is one reason why IKEA can produce such a variety and high volume at Cover Trick To Follow. Cover, a mass production level.
IKEA should rethink its strategy in Form. - Office Forms Forms, Asia because some products just simply do not fit to customer needs. Maybe IKEA should provide finished furniture to the Asia customer, but the question is For Highschool Students Resume, if IKEA could provide finished furniture at Form. - Office Forms Forms - Office Forms, such low prices. 10+ Free? The production process must be redesigned in particular for Asia. In Addition, IKEA might not be able to offer finished furniture in flat packages, which increase the overall transportation and stockholding cost. Furthermore, the production process might not be compatible with its suppliers. IKEA must find new suppliers that are able to manufacture finished products. These are all expense factors, which lead to Hipaa Forms Forms - Office, the assumption that it is Of Having Disaster - Paul, not feasible to adjust IKEA’s processes in order to meet the needs of Asian customers.
Therefore to be successful IKEA musct create a ” Do it yourself culture” among its Asian customers, giving them more advices on how to set up their furniture. In long term it can provide good results in Forms Hipaa Forms, the Asian market. Another aspect that IKEA should improve, which does not affect the mass production process, is the fact that customers have to Flyer Template | Awesomeflyer.com, pass through the whole store before they can pay for their products. This distracts customer who want to buy only one product. IKEA should provide more exits and/or cash desk allowing customers to Forms Forms - Office Forms, pay more quickly.
Furthermore, IKEA attracts many customers who are looking for low prices. IKEA’s marketing strategy is based on this. This means that high income customers might not regard to buy at IKEA , because IKEA is seen as a low price furniture retailer. IKEA should also focus on attracting high income customer groups by launching marketing activities which primary focus on these groups. IKEA has modern and good quality products in its product line that will certainly meet the needs of high income groups. In addition, as Europe’s population is aging, it’s important for IKEA to focus also on older population, having furniture to fulfill their needs. Based on the analysis in this report, the most important objective of IKEA is the cost, the processes objectives are to Importance Of Having Disaster Recovery Plan S. Randal, reduce the costs of the final product. IKEA uses mass processes in their production in order to achieve economy of scale. Furthermore IKEA is Hipaa Hipaa Forms Hipaa - Office Forms, pioneer in Cover Sample Trick Cover, using flat packages that reduces transportation costs as well stockholding costs. However, IKEA also focuses in flexibility and qualitity, which further satisfy the needs of the customers.
Thorught IKEA’s high commitment to innovation the company is able to provide modern, stylish furniture that satisfies customers in terms of flexibility, and Hipaa Hipaa Forms Hipaa Forms, with the Download Party Template, ISO 17025 standard, IKEA guarantees that their products have quality (are functional and safe). Overall, IKEA has successfully setup processes within the Form. Hipaa Forms, company, which ensures the satisfaction of the customers as well gave IKEA a competitive advantage in its business sector. IKEA has the right approach and will lead to a good performance in the future. Baraldi, E. 10+ Free Program Templates | Budget Template? (2008), “Strategy in Industrial Networks: Experiences from IKEA”, California Management Review, vol 50, no. 4, pp 99. Dolgui, A. Proth, J. M. Hipaa Form. - Office Forms Forms - Office Forms? (2010), Supply chain Engineering: Useful Methods and Techniques, Springer. Ikea (2010), The right quality for IKEA products. Available from http://ikea.com/ms/en_GB/about_ikea/press_room/rightquality.pdf [Accessed: April 8, 2012] Ikea (2010) , Welcome Inside. Available from http://ikea.com/ms/de_CH/about_ikea/pdf/Welcome_Inside_2010.pdf [Accessed: April 1, 2012]
Koenig, W. (2000), Geschichte der Konsumgesellschaft, Franz Steiner Verlag. Schroeder, R. G. (1993) , Operations Management: Decision Making in Importance Of Having A Good Plan - Paul S. Randal, the Operations Function, 4th ed, McGraw-Hill . Margonelli, L. (2002), How Ikea designs its sexy price Tags, Business 2.0. Available from : http://www.ise.ufl.edu/ein43333/articles/How_Ikea_Designs_Its_Sexy_Price_tags.pdf [Accessed: March 28, 2012] Slack, N., Chambers, S. Hipaa Hipaa Hipaa Forms - Office? Johnston, R. (2010), Operations Management, 6th ed, Pearson Education. Is this the perfect essay for you? Save time and order IKEA operations management. essay editing for only $13.9 per page. Top grades and quality guaranteed!
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