Assessment 2:

Improving Quality of Kitchen Island Counters in IKEA with the Application of Planning and Organising Functions

Unit Code : MGW1010
Name of Unit : Introduction to Management
Group Members’ Names : Chuah Poh Yee & Catherine Yew Lin Yen
Students ID : 24888427 & 24521876
Name of Lecturer : Dr. Chong Yit Sean, Esther
Name of Tutor : Dr. Au Wee Chan
Word Count : 2581 words

TABLE OF CONTENTS

Section
Page Number Executive Summary ……………………………………..…… 1.0 Introduction ……………………………………………………
1.1. Purpose
1.2. Company Information
1.3. Background of Issue/ Initiative
1.4. Management Functions
1.5. Assumptions
1.6. Limitations
1.7. Methodology
1.8. Plan of Report

2.0 Discussion ……………………………………………………..
2.1 Planning Function
2.1.1 Adopting advanced technology system in production line
2.1.2 Sourcing for reliable and reputable suppliers
2.1.3 Managing through a lean production system
2.1.4 Division of tasks according to the functions performed
2.2 Organising Function
2.2.1 Recruitment procedure in human resource department
2.2.2 Incorporation of quality control in the manufacturing department
2.2.3 Alignment of job activities by administrative rules and procedures

3.0 Conclusion ……………………………………………………

4.0 Recommendations ……………………………………………..

References ………………………………………………………...

Executive Summary

The purpose of this report is to assist IKEA in managing their issue concerning the quality improvement of kitchen island products by applying the two managerial functions of planning and organising.

IKEA is a global conglomerate company which originated from Sweden specialized in compact and modern style furnishing products (Zuvela, 2008). In the early years of the setup, IKEA sold only small scaled home accessories which lead to expanding in furniture making. IKEA has developed a line of kitchen island product in particular, however the company received complaints on the low quality manufacturing of products. IKEA has set its target to achieve their goal to reduce the quantity of defective kitchen island products by 70% in May 2014, with an initial benchmark of 35% reduction of defective kitchen island by November 2013.

This report incorporates the application of relevant theories and concepts related to planning and organising to devise methods and necessary approaches to be performed in order to achieved the goals. Key theories and concepts derived from the planning function encompasses the implementation of advanced technologies, sourcing for reliable suppliers and adopting a lean production strategy. IKEA will adopt a strategic planning concept for a long term to maintain the quality of kitchen island product which will set forth the company towards the attainment of goals.

The proposed resolution under organising function includes a high formalization concept, reorganising the manufacturing department and professional recruitment method. These solutions are in line to achieving the goals to enhance the goal commitment as a stepping stone to the actual goal. Based on the analysis performed, the report concludes and provides recommendations to embark on by IKEA mainly recruiting qualified employees, establishing partnerships with suppliers, obtaining direct feedback from the consumers, investing in advanced machines and practice of high professional involvement.

1.0. Introduction

1.1 Purpose This report aims to identify strategies through planning and organising that will reduce the number of defective furniture, in particular, kitchen island counters by 70% in March 2014 and improve quality of management in the organisation.

1.2 Company Information

Established in 1943 by Ingvar Kamprad, IKEA was a local retail company in Sweden (Zuvela, 2008). It is the biggest furniture retailer in the world, mostly well known for their easy and ready-to-assemble furniture. Since then, IKEA has expanded into a major retail store throughout 25 countries generating annual