IKEA and Manufacturing Process

Abstract

IKEA, a Swedish furniture retailer is known for its cheap prices and high quality products. IKEA is a global success with over 200 stores in countries around the world with profits increasing rapidly. Quality management focuses on improving the overall quality of a company''s products and services, in order to support the achievement of its overall goal. The paper focus the quality mangement of IKEA. It also expalins that how understanding of customer needs and preferences the company will operate better to achieve the maximum profit and it''s goals.

IKEA and manufacturing process

Chapter I

Introduction

IKEA has effectively implemented a marketing strategy and placed themselves in a position to overcome its competitors. Its marketing and competitive strategy of high quality products at cheaper prices which is embedded in the culture starts at the design process and continues through all manufacturing, production and distribution stages until it is received by the customers so that they can achieve their promise to produce products which are affordable for as many people as possible. The main objective of IKEA is to produce high quality products at a low price. It is furnishing the customers with a quality product with components derived all over the world utilizing multi-level competitive advantages, low-cost logistics, large simple retail outlets in suburban areas. (Briscoe, D and Schuler, R, 2004)

Furthermore, cost-leadership has been effectively incorporated into the organization's culture through symbols and efficient processes. In return for high sales volume, IKEA accepts low profit margins. Cost reduction does not mean reducing the quality of the variables, but rather do things better and more efficiently. A general low-cost-leadership strategy will only work effectively when the organization can provide products or services at a lower cost than the competition. In order to furnish customers with good quality items at a low cost, the firm must be able to find suppliers that can deliver high quality items at low cost per unit. This strategy is also aimed at delivering products and services that are different from the product mix of the competition.

Importance of Quality Management

Quality management is a principle that ensures quality in a company's products and services. There are various types of quality management programs which include but are not limited to Six Sigma, Theory of Constraints and TQM (Total Quality Management). Although the approach to solving quality issues vary with the different quality management programs, the goal remains the same--to create a high quality, high-performing product or service that meets and exceeds the customers' expectations. Quality management is important to companies for a variety of reasons. (Briscoe, D and Schuler, R, 2004)

Product Quality

1. Quality management ensures product quality. Some primary aspects of product quality include: performance, reliability and durability. Through the use of a quality management program, the company can produce a product that performs according to its stated promises. The will endure normal, everyday use. Use quality management programs to improve the quality of a product and to design new ...