Operations Managment Essay

14646 Words Apr 28th, 2012 59 Pages
Key operations questions
Chapter 1 Operations management
➤ What is operations management? ➤ Why is operations management important in all types of organization? ➤ What is the input–transformation– output process? ➤ What is the process hierarchy? ➤ How do operations processes have different characteristics? ➤ What are the activities of operations management?

Chapter 2 Operations performance
➤ Why is operations performance important in any organization? ➤ How does the operations function incorporate all stakeholders’ objectives? ➤ What does top management expect from the operations function? ➤ What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them? ➤
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This supply network is vitally important to IKEA. From

purchasing raw materials, right through to finished products arriving in its customers’ homes, IKEA relies on close partnerships with its suppliers to achieve both ongoing supply efficiency and new product development. However, IKEA closely controls all supply and development activities from IKEA’s home town of Älmhult in Sweden. But success brings its own problems and some customers became increasingly frustrated with overcrowding and long waiting times. In response IKEA in the UK launched a £150 m programme to ‘design out’ the bottlenecks. The changes included:


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Clearly marked in-store short cuts allowing customers who just want to visit one area, to avoid having to go through all the preceding areas. Express checkout tills for customers with a bag only rather than a trolley. Extra ‘help staff’ at key points to help customers. Redesign of the car parks, making them easier to navigate. Dropping the ban on taking trolleys out to the car parks for loading (originally implemented to stop vehicles being damaged). A new warehouse system to stop popular product lines running out during the day. More children’s play areas.

IKEA spokeswoman Nicki Craddock said: ‘We know people love our products but hate our shopping experience. We are being told that by customers every day, so we can’t afford not to make changes. We realized a lot of people took offence at being herded like

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