Managing Sustainable Operations
Over the years, technology has changed how firms undertake their activities. It has impacted them both positively and negatively. An organization is what it is because of the management’s ability to ensure that the operations go on well. Operations relate to various activities that the organization is engaged in to meet multiple goals and objectives. Managing sustainable operations refers to the acts of ensuring every activity that is undertaken in the organization is tailored towards propelling it further in terms of expanding market base and gaining competitive advantage (Hadiguna & Tjahjono, 2017). IKEA will be the firm under review in this research paper. The company has a vibrant operating plan as it involved in the busines of more than 9500 products which it sells at a low price a factor that is favored by effective back-end operations, proper supply chain techniques and appropriate inventory management approaches. The distinctive value proposition of IKEA is facilitated by various tools and concepts. To emphasize on the subject matter, IKEA will be discussed in depth and how IT has helped it maximize its performance. Also, theories and their application in the organizations will be discussed to enhance the understanding.
IKEA
This is a multinational company headquartered in Dutch which is involved in designing and selling of various products which include; home accessories, furniture and kitchen appliances. The company was founded in 1943 by Ingvar Kampard who was 17 years old then. The company has been the biggest retailer of furniture globally since 2008. It is known for unique value proposition and the ability to come up with modern designs that have appealed so much to people thus developing the market base (Alänge, Clancy & Marmgren, 2016). The company has also indevoured to keep up with the laws and that is why it has been on the forefront in selling of eco-friendly products. The company is also well known for controlling costs, effective operational details and continuous development in relation to products. It is run and controlled by the family and research shows that it has been growing and expanding over the years and the trend is expected to continue due to proper roadmap and framework that has been developed by the company.
IKEA and Technology
Technology has transformed all businesses including IKEA. The company has utilized technology in facilitating its operations as it has allowed them to reach more customers in a more cost-effective manner. It has used technology to enhance their operations instead of building different new stores and paying real estate related prices. Technology has also been used by IKEA in developing various products, strategies and services which has helped to market the company more. It is mostly focused on reduction of the cost of production; therefore, it has incorporated technology to reduce the costs that are involved in manufacturing which has gone along with meeting requirements for enhancing quality, effective distribution and ensuring protection of the environment.
Operational Planning
This relates to the plan that gives the clear picture of how the activities are carried out to facilitate the achievement of the organization goals and aims. It involves planning of strategic goals as well as the technical ones. The plans help the organization to deliver and achieve everything that they want. Operations management have been critical towards the success of IKEA. The firm produces furniture’s and there are various planning decisions that are involved. They include purchasing of fabric and wood, hiring as well as training of workers, planning of the location where every activity will be undertaken, as well as the selling price of the products (Sandybayev, 2017). The company has put up retail stores and the retail departments have been given the responsibility of ensuring that the stock is maintained efficiently. All these operational planning decisions have helped the organization in making and producing furniture’s which are affordable, attractive and functional which have elevated the market base of the organization. The decisions have been vital in ensuring there is quality management, cost control and effective supply chain management. Technology has been at the helm of every operations. In the course of planning, the company has identified specific technology that has been tailored towards meeting the customers’ demands and coming up with something that everyone is proud of.
Section One
Service delivery is key to IKEA. The company takes into account its structure and resources at disposal on the manner in which it handles its products and activities. The company has observed various processes in decision making. It has engaged every member of staff in decision making. Even junior employees’ inputs are taken seriously. Teamwork and quality standards have been observed well by IKEA. The company’s products are certified as the associate processes observes all the laid down processes. The company has been key in the usage of IT and that is the major factor that has boosted it in achieving various goals and objectives that they have.
Section Two
QSDFC
This is one of the theories that IKEA has put in place in making its planning decisions. The theory together with technology has helped so much in building the company and promoting its success. The theory stands for quality, speed, dependability, flexibility and cost. The theory is part of operational performance objectives. They form the basic areas that the firm struggles to improve in earnest to meets it corporate strategy. Quality relates to the ability of the company’s products to meet various specifications (Yu, Cadeaux, & Song, 2017). Technology has been vital for the company to meet those specification as it has provided the firm with the tools and concepts required to shape the furniture in the manner that they feel best meets the demands of the customers.
Speed relates to the rate in which the company produces its products. Technology has been one of the tools that has shaped the landscape of how manufacturing and production takes place. It has provided up to date equipment and machines that have a bigger capacity of production thus elevating the company further. Dependability is another key element. It relates to the extent in which customers can rely on the organization in terms of delivery of finished products that are ready for use. This takes into account the already planned prices and costs. Dependability relates to meeting the customers convenient needs. Technology has been one of the key facilitators of dependability as it has eased ways thus helping customers to receive the products in easy manner.
Flexibility is another key tool. What this means is that, the products should be flexible to meet various needs that the customers have. With the technology, the business can well design and come up with unique models (Hadiguna & Tjahjono, 2017). Costs is another key factor in this theory. With technology the cost of production has gone down which means that the price that is also charged on customers is minimal. This has been as a result of systems that have been brought in the organization.
Good Practice and Continuous Improvement
The theory speaks clearly about what happens in the operations of IKEA. It has helped the company to plan effectively on how to beat competitors and command a bigger market base. The good thing about the company is that it is multifaced which means that everyone in the organization is involved in decision making thus making the theory operate well. The company needs to improve its tools to do with continuous improvement. Apart from the tools that the organization is using, it should also incorporate other tools which range from Kaizen culture to PDCA. These tools will transform the organization more and lead to its success. The organization should continue with the good practice and develop better and new ways of ensuring its success.
Lean and Waste Management Theory
Lean theory is pivotal in any organization. It focuses and takes into account elimination of wastes in the performance of the organization. It incorporates the concept of ensuring continuous improvement, a long-term aspect that seeks and intends to achieve significant changes on the processes of the entity with the urge to ensure improvement on the quality and efficiency of the operations (Lechehab & Kamassi, 2016). Therefore, the concept of lean management is centered upon waste reduction and management. These wastes include all the unnecessary costs that reduces the profits that comes to the organization. Technology has been the epicenter of addressing those costs and ensuring that only those important ones are incorporated in the organization.
Good Practice and Continuous Improvement
This theory has been pivotal in helping IKEA get rid of unnecessary costs and concentrate only on those activities that elevate the organization further. It has been a good and commendable practice that every organization should borrow. It has in place systems and up to date technology that has shaped how activities are undertaken. It not only helps elevate the organization further but also help it commanding a bigger market base. The company however needs to improve on the issues to do decision making. Despite it being in place, it is not that vibrant and therefore the organization can focus on that.
Supply Chain Management Theory
This theory incorporates the cross-functional approach which range from the movement of the raw materials to internal processing of those materials to make finished goods. IKEA has observed this theory effectively. With experts in the supply chain and efficient technology, the company has seen itself grow from one situation to another. IKEA has been keen on the processes (Laurin & Fantazy, 2017). It has in place various technology tools which include; order processing, bid and spend, warehouse management. lean inventory and specialized freight handling. These tools have elevated the company further which have helped it in attaining new goals and objectives. Technology is the most significant issue that has been key towards the organization’s success.
Good Practice and Continuous Improvement
The theory has been a good practice. This is because it has been pivotal and has shaped the manner in which various issues in the organization are undertaken. The theory has ensured efficient processing and no shortage in the course of manufacturing. Continuous improvement is part of organizations success strategy and what it means is that it should focus more on technology and incorporate it further to streamline overall activities and ensure that they are at par with the organization’s success.
Conclusion
Technology has been key towards the performance of IKEA. With its operations being well streamlined and wastes management being effective, it proves that they are good practices upheld in the organization. QSDFC has provided an opportunity for the organization to meet all issues that relate to the flexibility and ensuring that all the customers are satisfied. Lean management has been productive and effective to the organization as it has gotten rid of unnecessary costs and improved the rate of revenue generated by the entity. Supply chain is the most vibrant issue in IKEA as it has shaped the manner in which supply chain operates and the benefits that have been derived from such a perspective.
References
Alänge, S., Clancy, G., & Marmgren, M. (2016). Naturalizing sustainability in product development: A comparative analysis of IKEA and SCA. Journal of Cleaner Production, 135, 1009-1022.
Hadiguna, R. A., & Tjahjono, B. (2017). A framework for managing sustainable palm oil supply chain operations: a case of Indonesia. Production Planning & Control, 28(13), 1093-1106.
Laurin, F., & Fantazy, K. (2017). Sustainable supply chain management: a case study at IKEA. Transnational Corporations Review, 9(4), 309-318.
Lechehab, S., & Kamassi, A. (2016). The Benefits of Implementing Lean Management System at IKEA Malaysia Company. El-Bahith Review, 233(4056), 1-12.
Sandybayev, A. (2017). Strategic Supply Chain Management Implementation: Case Study of IKEA. Noble International Journal of Business and Management Research ISSN, 1.
Yu, K., Cadeaux, J., & Song, H. (2017). Flexibility and quality in logistics and relationships. Industrial Marketing Management, 62, 211-225.