Operations Management Essay

Operations Management
IKEA

Table of contents

Introduction – 5
LO1. 1.1 – Importance of operations management - 5
LO1. 1.2. – Analyse of operations functions - 5
LO1. 1.3. – Evaluate the operations management - 7
LO2. 2.1. – The importance of the `Three Es` - 9
L.O.2. 2.2. – Cost minimalisation vs quality maximisation – 10
L.O.2. 2.3. – Significance of the five performance objectives – 11
L.O.3. 3.1. – How linear programming adds value to a given production process - 13
L.O.3. 3.2. – Critical Path analysis and network planning - 15
L.O.3. 3.3. – The need for operational planning and control - 15
L.O.4. 4.1. – Clearly defined operational outcomes – 15
L.O.4 4.2. Network plan - 16
L.O. 4. 4.3.- Quality management tehniques - 17
Conclusion - 18
Bibliography - 19

Introduction
This report will explain the importance of operation management and its linkage with strategic planning. The furniture company described is IKEA, the world’s largest home furnishing retailer, which has 298 stores in 37 countries. It ranks Number 41 on Forbes’ esteemed World’s Most Valuable Brands list, and took in 35.5 billion in sales in 2013.

LO1. 1.1 – Importance of operations management
Operations management is very important in business operations since it forms the heart pf the organizastion by controlling the system of operation; operations management is the central activity in organizing things. Operations management explores the way organizations produce and distribute goods and services. Also, operations management deals with the design, operations and improvement of the systems that create and deliver a firm`s primary products and services. (www.scribd.com)
Operations managers are concerned with each step in providing a product or service, they determine what should go into an operating system - such as equipment, labour, facilities, materials, energy, and