CASE STUDY IKEA

Production management is, above all, a practical matter that deals with
real problems. Thus, we will study a practical example of an organization
which is known for the originality of its production.

IKEA

IKEA is a furniture retailer with a difference. With about 100 stores

giants operating in around 15 countries, have developed their own way
special for selling furniture that seems to impress consumers of all
nationalities. Typically, IKEA consumers spend about an hour and
half to two hours in the store - much more than at rival furniture stores. One reason
important for this is the effectiveness of how it organizes its stores. All are
equal in the most important aspects, around the world. Design the philosophy of
operations of their stores reproduce the original business started in southern Sweden by
Ingvar Kampradt in the 1950s. At that time, Kampradt was successful in
furniture sales through catalog. In response to consumer requests
to make it easier to visualize some of your furniture, built a
a showroom in Stockholm, not in the city center where the land was expensive, but in
your surroundings. Instead of buying expensive displays, he simply organized
the furniture, more or less, in the arrangement they would be found in the environments
domestic. Also, instead of transporting the furniture from the storage to the
showroom, asking consumers to pick them up directly from the warehouse.
This 'anti-service' approach, as described, is the foundation of IKEA stores.
today. IKEA furniture represents 'value for money' with a wide variety of
Choose. Generally, they are designed to be stored and sold 'boxed'.
easier to assemble by consumers. All stores are designed around
of the same service concept: ease of location, parking,
movement inside and simplicity to place the order and collect the goods
acquired.

At the entrance of each store, there are large bulletin boards that proclaim the
IKEA's philosophy guides consumers who are not yet accustomed to the store.
Catalogs are also available at this point, showing illustrations,
dimensions and variety of products available. Perhaps, more important for the
buyers with children, there is also a leisure area, a small cinema,
a room for baby care and bathrooms. Parents can leave their children
in the leisure area supervised for a limited period of time. Each child is
dressed in a numbered yellow apron to make it easier for parents to locate
through a speaker system, in case any problem occurs. The
Consumers can also borrow carts if they wish to keep them.
keep your children close while inside the store.

Some parts of the showroom display furnished rooms, while others

they display, for example, all the beds gathered, allowing consumers
make comparisons. These are not addressed by any seller to offer
help or guidance. IKEA's philosophy is not to 'bother' consumers with that
way, but leave them at ease and with time to think. If a consumer
to seek guidance, there are information points in the showroom where employees are present,
bright red uniforms, can help and guide you, providing rulers, paper
for schemes and so on. Each piece of furniture has a label indicating its
dimensions, price, materials used, country of origin and other available colors. There is
also a numerical code that indicates its location in the warehouse, from
where it can be picked up. The labels on large items indicate for
Those interested should contact the information department for more details.
clarifications. After visiting the showroom, consumers move to an area
of self-service, where small items are displayed on shelves. They can be
taken directly from the shelves by consumers and placed in bags
yellow ones or carts. Then, consumers go through the warehouse of
self-service where they can pick up the items viewed in the showroom. Finally,
we pay at the checkout, built with conveyor belts that move the purchases
for the employees distributed in the exit area. In this area, there are points of
information and services and, frequently, a snack bar with Swedish food
typical. A large transport area allows consumers to seek their
cars from the parking lot to load the groceries. However, this is not the end
of IKEA services. Any consumer who has purchased beyond the
the loading capacity of your car can rent or buy a luggage carrier.

IKEA's innovative approach to its business is not confined only to

physical layout and the design of its stores; it also extends to its style and
managerial philosophy. All store employees wear red or gray aprons
that identify the contact with consumers and the administrative ones. They are
very well prepared in the IKEA philosophy. For example, in the words of the company:

Variety of products - our identity. We must offer a wide variety.

of household furniture items with good design and function at low prices for
that most people can buy them. We should not compromise either
functionality or technical quality.
Strong and realistic IKEA spirit. The true IKEA is found in our
enthusiasm, constant willingness to renew, cost awareness, readiness
to take responsibility and simplicity in our behavior. Olucro
provide us resources. Forcing us to develop products in a more
economic, buy better, reduce costs; this is the secret and the reason for
our success.
Achieving good results through simple means. Often, expensive solutions
are a sign of mediocrity.
Simplicity is a virtue. Complicated rules paralyze. Planning
Exaggeration can be fatal. Simplification is a tradition of honor.
The different way. By daring to be different, we find new ways.
"Why?" remains an important key expression.
Taking responsibility - a privilege. The more responsible people are,
less bureaucracy. The fear of making mistakes is the origin of bureaucracy and the
enemy of evaluation.

So, why is IKEA prepared to survive and thrive? Certainly,

she maintains strict control over her costs and also knows her market and
how it can meet the needs of its consumers. In addition, the products
those who design and sell must be considered by their consumers as
representing remarkable value for money. However, no less important is the
way that organizes the provision of services in its stores. This is the responsibility of
production management of the company. The store employees, the responsible parties
through relationships with suppliers, the employees who store and transport the
benefits for the stores and the team that designs, plans, controls, and constantly,
improves the way of doing things, the buildings, the computers and boxes, the
deposits and the transportation system, all are engaged in the management of the
production. IKEA succeeds, not insignificantly, due to the effectiveness of its
production management that provides:

Easy consumer flow;

Clean and well-designed environment;
Enough goods to meet the demand;
Sufficient staff to serve consumers and replenish stocks;
 Appropriate quality of services;
Continuous flow of ideas to improve the already impressive performance of
its operations.

Without this, the company would not be successful, notwithstanding the development.
of its marketing and finance activities.

Now is the time to establish some definitions.

The production function in the organization represents the meeting of resources.

destined for the production of its goods and services. Any organization has
a production function because it produces some type of good and/or service.
Production managers are the employees of the organization who exercise
particular responsibility in managing some or all resources
involved in the production function. Again, in some organizations, the
production manager may have another designation. For example, he
can be called "traffic manager" in a distribution company,
administrative manager in a hospital or store manager in a
supermarket.
Production management is the term used for the activities, decisions and
responsibilities of production managers.

As we saw in the IKEA case, if the production function is effective, it should use
efficiently its resources and produce goods and services in a way that satisfies the
its consumers. Furthermore, it must be creative, innovative, and vigorous to
introduce new and improved ways of producing goods and services. If production
can do this, it will provide the organization with the means of survival in
long term because it gives her a competitive advantage over her rivals
commercials. One way to justify the adoption of this idea in an organization that
does not aim for profit is that effective production provides the means for it to meet
your long-term strategic goals.