Input- Process - Output

WORKSHOP 1

Task 1: Input- Process - Output

Input

Process

Output

Transformed resources

Staff

Happy customers?!?

Restock warehouse and

visual displays

Flat packs/assembled furniture

taken to customer home

•

•

All items of

furniture/ home

ware: small basket

items; flat pack

items in the selfservice

warehouse;

special items

Customers

Display of furniture and

development of good visual

displays

Answer queries

Process financial

transactions

Customers

Transforming Resources

Selection of furniture

•

Visual displays

•

Warehouses

Design of configuration (e.g.

a shelving system)

•

Trolleys and

equipment

Picking of items from the

warehouse

•

Checkout

equipment

Transportation of items

through the store

•

Customers

Loading of items into car

•

Check out staff

Delivery of items

•

Staff on

information points

Assembly of items

Task 3: 4Vs

HIGH VOLUME - IKEA’s operations are very large and purpose-built. They feature very large car parks

and are located close to major motorway intersections. In fact, everything about the design of IKEA’s

operations encourage high volume of throughput. This high volume means that many of the fixed

costs of running the IKEA operation such as local taxes, administrative costs and some energy costs

are spread over a high volume of individual sales transactions. This reduces the overall cost of

making a sale, part of IKEAs strategy of offering good value for money.

HIGH VARIETY OF PRODUCTS BUT LOW VARIETY OF SERVICE The variety of products sold in IKEA

store is relatively large compared with many furniture retail operations. For example, it includes

small items such as glassware and kitchenware as well as very large items such as sofas, tables and

shelving systems. Modular design of some products such as shelving systems allows variety to be

extended even further from a few basic component parts. These components can...