Read the attached case study Operations in Practice IKEA and the answer the questions. What are some of the activities IKEAs operation managers can consider to improve customer service. List 8 activities with examples. Case Study: Operations in Practice IKEA Love it or hate it, IKEA is the most successful furniture retailer ever. With 276 stores in 36 countries, it has managed to develop its own special way of selling furniture. The stores layout means customers often spend two hours in the store far longer than in rival furniture retailers. IKEAs philosophy goes back to the original business, started in the 1950s in Sweden by Ingvar Kamprad. He built a showroom on the outskirts of Stockholm where land was cheap and simply displayed suppliers furniture as it would be in a domestic setting. Increasing sales soon allowed IKEA to start ordering its own self-designed products from local manufacturers. However, it was innovation in its operations that dramatically reduced its selling costs. These included the idea of selling furniture as self-assembly flat packs (which reduced production and transport costs) and its showroom- warehouse concept which required customers to pick up the furniture themselves from the warehouse (which reduced retailing costs). Both of these operating principles are still the basis of IKEAs retail operations process today. Stores are designed to facilitate the smooth flow of customers, from parking, moving through the store itself, to ordering and picking up products. At the entrance to each store large noticeboards provide advice to shoppers. For young children, there is a supervised childrens play area, a small cinema, and a parent and baby room so parents can leave their children in the supervised play area for a time. Parents are recalled via the loudspeaker system if the child has any problems. IKEA allow customers to make up their minds in their own time but information points have staff who can help. All furniture carries a ticket with a code number which indicates its location the warehouse. (For larger items, customers go to the information desks for assistance.) There is also an area where smaller items are displayed, and can be picked directly. Customers then pass through the warehouse where they pick up the items viewed in the showroom. Finally, customers pay at the checkouts, where a ramped conveyor belt moves purchases up to the checkout staff. The exit area has service points and a loading area that allows customers to bring their cars from the car park and load their purchases. Behind the public face of IKEAs huge stores is a complex worldwide network of suppliers: 1,300 direct suppliers, about 10,000 sub-suppliers, wholesale and transport operations including 26 Distribution Centres. This supply network is vitally important to IKEA. From purchasing raw materials, right through to finished products arriving in its customers homes, IKEA relies on close partnerships with its suppliers to achieve both ongoing supply efficiency and new product development. However, IKEA closely controls all supply and development activities from IKEAs hometown of Almhult in Sweden. However, success brings its own problems and some customers became increasingly frustrated with overcrowding and long waiting times. In response what strategies/ changes could implement to overcome the issues? List and explain 8 different activities how IKEA can make improvements. IKEA spokeswoman Nicki Craddock said: We know people love our products but hate our shopping experience. We are being told that by customers every day, so we cant afford not to make changes. We realised a lot of people took offence at being herded like sheep on the long route around stores. Now if you know what you are looking for and just want to get in, grab it and get out, you can. Operations management is a vital part of IKEAs success IKEA shows how important operations management is for its own success and the success of any type of organisation. Of course, IKEA understands its market and its customers. Just as important, it knows that the way it manages the network of the operations that design, produce and deliver its products and services must be right for its market. No organisation can survive in the long term if it cannot supply its customers effectively. This is essentially what operations management is about designing, producing, and delivering products and services that satisfy market requirements