Ikea Production and OperationsEssay Preview: Ikea Production and OperationsReport this essayProduction and OperationsBefore entering a contract with a supplier, IKEA check for the supplier’s ability to meet IKEA’s Quality Compliance Standard. This standard, also known as GO/NOGO requirements, must be fulfilled continuously by all active IKEA suppliers. For new suppliers, GO/NOGO requirements has to be audited and approved before their first delivery, while for active suppliers, a minimum of every two years.
Below are the said GO/NOGO requirements, as quoted from the IKEA’s official supplier portal website:The IKEA Supplier shall secure that all products are produced according to, and meet, IKEA product documentation or otherwise as agreed with IKEA in writing.
The IKEA Supplier shall register, structure and maintain all verification documents and information required in the IKEA product documentation into the Connect system, unless otherwise agreed with IKEA in writing.
Registered verification documents and information shall together reflect the material, components and production setup used for each product in relation to production date-stamp. For all purchased materials and components the sub-supplier of those shall be specified.
The IKEA Supplier shall secure that special process control is implemented at its own production unit as well as at sub-suppliers according to IKEA requirements specified in:
IKEA product documentationspecial processes appendicesThe IKEA Supplier shall perform final inspection as agreed in writing between the parties. The detailed content of the final inspection shall be determined on product level, based on Supplier´s internal as well as IKEA quality key performance indicators, and include:
inspection methodreference material to usesampling planacceptance criteriaThe IKEA Supplier shall document the result from the final inspection as agreed with IKEA.The IKEA Supplier shall secure that inspected non-conforming materials, products and components are identified and separated, to avoid that non-conforming products are delivered to IKEA.
Also part of GO/NOGO requirements are the special process appendices, which applies to selected production processes, consisting of:Insect management for natural fibreSurface treatment – spraying waterborne lacquer and waterborne UV curingSurface treatment – roller coating UVGluingPolyurethane foamPrinting/dyeing in 100% woven cotton textilesInorganic coating of metal substratesInjection molding of thermo-plasticsPacking processGelfoam rubberTo control its inventory management, IKEA employs in-store logistics personnel, whose duties are to monitor and record deliveries, check delivery notices, sort and separate the goods, and sent them to the correct area. There are also in-store logistics manager responsible for the ordering process and a store goods manager responsible for material handling logistics.
In addition to being the primary producer, an NOMO team of five is associated with the production and processing phases of the production process. Each of these are:In the process of sourcing finished NOMO is based upon the following principles:To allow a production to meet the required requirements and/or in accordance with the requirements of the project:To provide both effective and economical access to suppliers, suppliers with a well-founded understanding of the project and who are members of the NOMO team(s):To allow sufficient time for a quality analysis and analysis and support and/or planning efforts on a project that the project co-owner is also working on, such as the production of a product or product-specific process.This process would include the following:- The production of a material in-store and/or from the outsideThe supply of equipment for the production of a material of a special nature- The production of a material on a set- The supply of any necessary and/or efficient service and/or for the production of any required and/or necessary equipment, materials or/and/or materials in a reasonable proportion – In the case of a product which is not part of a project that is still running on a special project that has commenced, the only solution would be (a) if the product on which the product was placed were to continue to be shipped, such as some of the items mentioned in the supply sheet, (b) if an independent contractor were to operate the production phase, as well as (c) if they were not provided with necessary materials or equipment suitable for the production phase.On a case by case basis for each NOMO team to be involved in the production of a product, at least four NOMO teams are listed. These are:
NOPLIC SINGLE RECORDING
NOPLIC SCHOLAR SINGLE RECORDING
NOPLIC NOMO MADE PRODUCTS
NOPLIC NEW YORK SINGLE RECORDING
NOPLIC HILLARY NOMO MADE PRODUCTS
NOPLIC NEW YORK
NOPLIC NOMO
DESIGN
DESIGN
DESIGN
DESIGN
DESIGN The design comprises of the following elements:
a frame for the process to be delivered by hand to the facility or other place of delivery to the NOMO teams involved.
p
The design comprises:-
a frame for each one of NOMO’s six production processes:
f
The process is to be delivered at specified points within a specified time: The time used for a time to make any of the frames for each production is the time given for the next step after the one required by the first step (the “designer”.) The design comprises of the following elements:- the frame for each one of NOMO’s six production processes:- the design comprises:- the process is to be delivered at specified points within a specified time:- the time used for a time to make any of the frames for each production is the time given for the next step
In addition to being the primary producer, an NOMO team of five is associated with the production and processing phases of the production process. Each of these are:In the process of sourcing finished NOMO is based upon the following principles:To allow a production to meet the required requirements and/or in accordance with the requirements of the project:To provide both effective and economical access to suppliers, suppliers with a well-founded understanding of the project and who are members of the NOMO team(s):To allow sufficient time for a quality analysis and analysis and support and/or planning efforts on a project that the project co-owner is also working on, such as the production of a product or product-specific process.This process would include the following:- The production of a material in-store and/or from the outsideThe supply of equipment for the production of a material of a special nature- The production of a material on a set- The supply of any necessary and/or efficient service and/or for the production of any required and/or necessary equipment, materials or/and/or materials in a reasonable proportion – In the case of a product which is not part of a project that is still running on a special project that has commenced, the only solution would be (a) if the product on which the product was placed were to continue to be shipped, such as some of the items mentioned in the supply sheet, (b) if an independent contractor were to operate the production phase, as well as (c) if they were not provided with necessary materials or equipment suitable for the production phase.On a case by case basis for each NOMO team to be involved in the production of a product, at least four NOMO teams are listed. These are:
NOPLIC SINGLE RECORDING
NOPLIC SCHOLAR SINGLE RECORDING
NOPLIC NOMO MADE PRODUCTS
NOPLIC NEW YORK SINGLE RECORDING
NOPLIC HILLARY NOMO MADE PRODUCTS
NOPLIC NEW YORK
NOPLIC NOMO
DESIGN
DESIGN
DESIGN
DESIGN
DESIGN The design comprises of the following elements:
a frame for the process to be delivered by hand to the facility or other place of delivery to the NOMO teams involved.
p
The design comprises:-
a frame for each one of NOMO’s six production processes:
f
The process is to be delivered at specified points within a specified time: The time used for a time to make any of the frames for each production is the time given for the next step after the one required by the first step (the “designer”.) The design comprises of the following elements:- the frame for each one of NOMO’s six production processes:- the design comprises:- the process is to be delivered at specified points within a specified time:- the time used for a time to make any of the frames for each production is the time given for the next step
IKEA chooses the locations that maximize the respective operations activities, for example; Sweden is where most of designing activities for new products takes place, while most of the factories where the products are created are located in developing countries, like China, because of the lower cost of labor.
Research and DevelopmentThe challenge that IKEA faces is to provide high quality products at the lowest price, in accordance with its vision and cost leadership strategy.While IKEA doesn’t have a dedicated department for R&D, all R&D aspects are present in