operations management role of operations director
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Excerpt from Dissertation:
Role of businesses manager
Businesses management: The value of OM at IKEA
Operations management is defined as “the design and management of products, processes, providers and supply organizations. It looks at the acquisition, development, and utilization of solutions that businesses need to offer the goods and services all their clients want” (What is definitely operations managing, 2012, ÜBER Sloan). Jobs of the operations manager might span from “determining the scale and location of manufacturing plants, determining the framework of services or telecommunications networks, and designing technology supply chains” to daily controlling capabilities (What can be operations managing, 2012, ÜBER Sloan). Although not all companies have an recognized ‘operations supervisor, ‘ zero organization can ignore procedures management. Arranging and regulates; managing inventory; quality control, and keeping equipment are all examples of features virtually every organization must execute (What is definitely operations managing, 2012, ÜBER Sloan). Among an organization which has used operations management to ascertain a competitive edge and function better in the marketplace is IKEA.
IKEA is a lower price furniture retail outlet that offers DYI furniture at a low price. Customers can order IKEA products on the web or shopping, but no matter, the customer must carry and assemble the product him or herself. By simply not investing in expensive transportation, assembly, and keeping the products largely limited to low-cost wood items made from inexpensive materials, IKEA could attract various budget consumers. Apartment dwellers, young people, and folks living exclusively can most find items suited to their particular size and space requirements at IKEA. ” Financial savings earned simply by IKEA had been passed through to customers in lower prices (estimated cost savings are 20-50%, in contrast to the competition)” (Owens 2012).
The need for a lesser price point ensures that IKEA household furniture is controlled by a strenuous design assessment process, and operations managers must make an effort to find a way to create furniture that meets quality standards within the desired range of prices. “No design and style – regardless of how inspired – finds its way in the showroom if it cannot be built affordable. For doing that goal, you can actually 12 full-time designers by Almhult, Sweden, along with 80 freelancers, work together with in-house production clubs to identify the correct materials and least costly suppliers” (IKEA, 2005, Businessweek). IKEA deliberately casts a wide net to find the lowest-cost suppliers: it has 1, 300 suppliers in over 53 countries. It also tries to engage in ‘out with the box thinking’ to find the best suppliers. For example , the moment constructing an armchair this contracted with ski manufacturers, because of their experience in working together with bent real wood and makers of supermarket buggies when building wheeled settees. In contrast to the American emphasis on infinite choice, it has as well limited consumer selection of materials and colors to bring down any costs. “The 50 cents Trofe mug comes only in blue and white, the least expensive