Solve IKEA Operation Management Case Study about Operation Management & Technology.

1. Operation Management
Dr. Asrar Sabry
EMBA Program – 2022 / 2023
Faculty of Commerce
Alexandria University
Cohort (23) Ibrahim Ahmed Al Sayed Mohamed Mostafa Marzouk

2. IKEA Operation Management
Case Study (1)

3. Preprepared by:
Ibrahim Ahmed Al Sayed Mohamed Mostafa Marzouk

4. WHO'S IKEA?

6. WHO'S IKEA?
Ingvar Kamprad
Founder:
1943 in Sweden outskirt of Stockholm
Founded:
Furniture & Food
Produces:
52 Countries /355 Stores / 26 Distributor Center
1300 Direct Suppliers / 10000 sub suppliers
Operates
More than 50 Bin Euro
Annual Revenue

7. In this case study, wewill analyze & compare
the operational-management
characteristics of IKEA
Ques.1. How is the IKEA operation design different from that of
most furniture retail operations?

8. How is the IKEA operation design different from that of most furniture retail operations?
IKEA Principle
Self Assembly Flat Packs
Show Room /Warehouse
Concept

9. How is the IKEA operation design different from that of most furniture retail operations?

10. Ques.2.whatdo youthinkmightbe themajorprobleminrunninganoperation
like IKEA?

11. Ques.2.whatdoyouthinkmightbethemajorprobleminrunninganoperationlike IKEA?
Over
crowding
Workforce
Long
waiting
times
IKEA's mazelike
systems
Running
out
popular
product
Environmental &
safety issue

13. Ques.2.whatdoyouthinkmightbethemajorprobleminrunninganoperationlike IKEA?
Launching
a new
program
called
“designin
g out”
Redesigning of the
car parks
Clearly
marked
in-store
shortcuts
New warehouse
system
Extra
“help
staff” at
key points
More children’s play
areas

14. Ques.3.whatdo youidentifyas theoperationfunctionwithinIKEA? How isthisdifferent
fromthesales function?

15. TheoperationfunctionwithinIKEA.
Process design
• Arranging the
store’s layout to
give a smooth
and effective
flow of
customers
Product design
• Designing stylish
products that can
be flat-packed
efficiently
Job design
• Making sure that
all staff can
contribute to the
company’s
success

16. TheoperationfunctionwithinIKEA.
Supply
network design
• Location stores of
an appropriate
size in the most
effective place
Supply chain
management
• Arranging for the
delivery of
products to stores
Capacity
management
• Coping with
fluctuations in
demand

17. TheoperationfunctionwithinIKEA.
Failure
prevention
• Maintaining
cleanliness and
safety of storage
areas
Inventory
management
• Avoiding
running out of
products for sale
Quality
management
• Monitoring and
enhancing
quality of
service to
customers
Operations
improvement
• Continually
examining and
improving
operations
practice

18. TheSalesfunctionwithinIKEA.
Organizing
sales
promotions
Providing
technical
advice
Keeping
customer
records up
to date

19. TheSalesfunctionwithinIKEA.
Responding
to customer
inquiries
Customer
relationship
management
After-sales
services

20. TheSalesfunctionwithinIKEA.
Interacting with
the customers
in an effective
manner
Resolving
customer issues
in a timely
manner