IKEA

COMPANY

SMART with TQM, SIX SIGMA, ISO as QMS

 IKEA
A global home furnishing brand that
brings affordability, design and comfort to
people all over the world.
 OUR TEAM

CLAREÑO, Mark Angelo

Team Leader

REMOJO, Ed Arone
Assistant Team Leader
 OUR TEAM
SEPE, Angel Ann
Research Assistant 1

LIGALIG, Jessica
Research Assistant 2

SILAGAN, Mae Anne

Documenter
Is IKEA realistic and achievable using SMART with:

01 02
Total Quality Six Sigma
Management (Six Sigma)
(TQM)

03 04
International Organization Quality Management
for Standardization System
(ISO) (QMS)
IKEA
IKEA is one of the best known and most
successful home furniture companies in the
world. This company also sells a wide range
of home accessories and interior design
items. They are famous for their modern
designs, eco-friendly products, low prices,
and flat-pack furniture.
 IKEA
TOTAL QUALITY
MANAGEMENT
According to IKEA vision, furniture
must be safe and environmentally
friendly. Throughout the stages of
new product development, the issues
of safety, environmental safety, and
quality are taken into account. This is
why Total Quality Management
(TQM) is a significant part of IKEA
policy.
Total Quality Management is important for IKEA
because they help the company to record benefits
that range from improved work morale among
employees, competitiveness, flexibility, enhanced
accountability, and higher productivity to increased
profitability.

The concept of continuous improvement has

enabled the company to maintain a never-ending
process of upgrading in relation to human resources,
machinery, service providers, materials, and
procedures
IKEA applies numerous Total Quality Management principles in the
production of its products. The company has a focus on the
Customer needs policy which is a bedrock of TQM. The Flatpack
concept reflects a focus on the customer having a desire that the
product is as compact and portable to enhance transportation and
delivery as possible.
 Shift Quality Standards as Far Left as Possible
IKEA adheres to the "IWAY Standard," which provides guidance for
IKEA's hundreds of suppliers on everything from recommending limits to
CO2 emissions, to enforcing livable wages and reasonable working hours
for all employees.

IWAY's strict guidelines ensure that IKEA receives the best quality materials
from the most morally responsible organizations.

By emphasizing quality as far up their supply strategy as possible, IKEA is

able to reduce product risks and unnecessary costs. By insisting on having
high quality standards upstream, quality problems are brought to light
before they reach customers.
 Continually Review and Improve Your Testing Strategy
Another IKEA core value is "Renew and Improve." While IKEA thoroughly
vets suppliers at the start, they know that sourcing the best supplies is a
continual process.

IKEA works with over 42 trading service offices to stay in constant contact
with their suppliers; continually monitoring and evaluating both product and
working conditions.

By developing and reinforcing a culture of caring and ethical responsibility,

IKEA is able to continually excel with supplier relations and drive quality
production.
 Create a Structure for Your Process
A key benefit of IKEA's naming structure is consistency. Developing
process consistency for your QA initiatives is crucial for eliminating
confusion and streamlining efficiency as a feature moves through
development. 

Consistency in how tests are structured, tagged and refactored throughout

the process will have long-term benefits on the effectiveness of your
software testing process.

Using version control as part of your test case management strategy is

another way to elevate your QA workflow from ad hoc and reactive to
structured and proactive.
 Why Total Quality Management is important in IKEA?

IKEA needs TQM Quality is the factor To ensure that every

approach to resolve which keeps the employee in
and to understand customers coming working in the same
the challenges, back to the same direction which is
which would be brand. improving the work
questioned through culture,
the surveys and manufacturing
though the face to processes, service
face interview systems so as to
questions. ensure long term
success
 How Total Quality Management will help IKEA?

The management will The problems and The relevant department

adhere to the needs of the concerns of the customers will study the complaints
customers by taking their will be forwarded to the and research on these to
reviews and making relevant department find out the lacking areas.
market research of the through right mode of
current market trends. communication.

The employees working in The suppliers and partners of

the production department the organization will be
will be trained to overcome informed about the material
the problems faced by the problems and hence the
customers and resolve their procurement of the right
concerns. material will take place.
IKEA
SIX SIGMA
IKEA decided to use the Six Sigma
DMAIC approach, which stands for
Define, Measure, Analyze, Improve,
and Control. This would give Ikea the
chance to increase their level of
efficiency and performance, thus stay
competitive in the global market.
 IKEA
Using SIPOC, which stands for They also used Voice of Customer
Suppliers-Inputs-Process-Output-C (VOC), which included survey analysis.
ustomers, this gave them an Ikea collected data in various ways:
overview of the entire process from Personal interviews, Telephone
the suppliers to getting the product interviews, Group interviews, Internet
to the customers. feedback, and Surveys

GPS was issued to each of the Handle merchandise delays and updates to
delivery staff as well as proper the customer as to the current availability
training on how to professionally of their merchandise.
deliver merchandise
 Why Six Sigma is important in IKEA?
❏ The application of the Six Sigma metric in the management of operations at IKEA
handles its efficiency in improving quality through economic means.

❏ The application of the DMAIC methodology at IKEA underscores its efficient operations
management.

❏ The Six Sigma tool has been applied severally to the processes at IKEA to enhance
customer experiences and foster competitiveness. For instance, in 2010, the company
came up with the “IKEA Group and SSD Global, Inc. Lean Six Sigma Project” aimed at
reinforcing its online platforms for a better customer service. The project portrayed the
essence of the application of the DMAIC model since a definition of how the customers
ought to be served was laid down. Measuring its viability led to the analysis of its
customer needs found out that an improvement of the online services was essential for the
management of its operations
 How Six Sigma will help IKEA?
The application of the Six Sigma methodology helps
uncover the various factors responsible for the effective
operations management. Cutting production cost through
contacting suppliers, designing the retail outlets to meet the
customers’ needs, and sophisticating its online platform are
some of the operational strategies accountable for the
company’s success.
 IKEA
INTERNATIONAL ORGANIZATION
FOR STANDARDIZATION
 Impacts of ISO 9000
standards on the IKEA
quality management systems
and the overall performance
The company’s attempts to comply with ISO 9000 in the quality
management system have brought tremendous results in the
recent past. The company’s customer service departments can
obtain a large amount of customer feedback of which the
company can utilize in the development of the test methods as
well as the products. This strengthens the quality management of
the company and makes the company exclusively ISO 9000
compliant (Hoyle, 2001).

The company takes pride in having developed the Ikea supplier

quality standards, which is further, developed by ISO 9001. This
standard can be said to be demanding as compared to the ISO
9000 standard that goes an extra mile to ensure that the suppliers
of the company can meet the internationally agreed quality
standards. This requirement has been a great boost to the
reputation of the company, which is directly proportional to its
performance both in the local and international markets (Jones &
Robinson, 2012).
IKEA
QUALITY MANAGEMENT SYSTEM
 Implementation of ISO 9000 standards in the
QUALITY MANAGEMENT SYSTEM of IKEA
The company has to a greater extent attempted to comply
with ISO 9000 standards. The products of the company are
attested to and are expected to comply with the national
and international legislations of all the markets where the
products are sold. There are strict specifications in place,
hence compelling the suppliers to stick to the strict
requirements. IKEA continues to define and develop strict
product requirements and make it possible for monitoring
and verification of compliance. In order to ensure durable,
healthy, and safe quality products, IKEA the company has a
test lab that is very useful when it comes to product
development phase. There are remarkable attempts by the
company to use materials from the sustainable sources and
products are constantly submitted to tough durability tests.
This section considers how far the company has gone in
embracing ISO 9000.
 Customer Focus Continuous Improvement Initiative

IKEA is an example of the few companies that The company designs and sells the ready to
have stayed true to the customer-focused assemble furniture as well as the home
purposes. This aligns the companys accessories. It has been known for its modern
commitment to quality with the expectations architectural designs while paying much
of the customers as far as quality is concerned. attention to the operational details, cost control
The purpose of the brand has been to create a and continues product development. The
better everyday life for the consumers. In quality of the products has remarkably been on
support of this purpose, the organization offers the rise courtesy of the continuous
a wide range of the well-designed and improvement and innovation measures. They
functional domestic furniture products at very have remained on top of continues
affordable prices for many people. Low prices improvement and change. In a bid to achieve
and good quality are embraced right from continuous improvement, the company has
product development, choice of the suppliers, strived to have a value system in place which
quality testing and how the products are sold supports innovation and continues
in the stores. improvement.
 Leadership Engagement of People

Leadership is considered as one of the People at all levels are of great essence to
companys core values. IKEA managers instill IKEA. As such, the business has tried to
excellence that is directly proportional to the involve a range of stakeholders as much as
superior quality of products delivered. The possible. To some extent, this makes it possible
managers try to set a good example and for the company to pull to the same direction
encourage others to emulate the same. and adhere to uniform standards concerning
Kamprad, the founder of the company, admits the delivery of quality. There is a platform to
that the best way to get the best out of the ensure that communication of defects is timely
employees is by setting an example and and taken seriously.
encouraging the employees to work hard
while adhering to the stringent business ethics,
and above all, excellence.
 Process Approach Evidence-based Decision-making

The company has also tried as much as possible The company has not been left behind when it
to embrace the process approach. For instance, comes to evidence-based decision-making,
the company is organized into four different which is a key aspect in the standardization of
main areas whereby the IKEA of Sweden quality. Most of the decisions that are made by
conducts the first area range. Secondly, the IKEA are supported by some data that can
purchasing is undertaken by the agents who easily be interpreted to create a framework for
are responsible for placing orders according to decision-making. For instance, the company
the specifications of the company. Then there has successfully addressed the problem of
is the distribution and wholesale which supplying cheap and attractive furnishing
undertakes the distribution and transports of courtesy of in-depth research that finally led to
the finished products to the regional more informed decision-making in improving
distribution centers of the company, and then quality.
across the globe.
 Relationship management at the company
The company has a very comprehensive Customer Relationship
Management system that makes it possible for the company to improve the
quality delivered constantly. CRM has not only assisted in better customer
service but also gives the customers a better value preposition. The
relationship management with the suppliers has also impacted positively on
the quality management systems in the company. The relationship with the
suppliers has also been strengthened, thus leading to centralized supply chain
planning in which standardization, integration, and specialization are
embraced. This has led to numerous improvements in the operational
performance; hence, better quality in the organization. This implies that the
relationship management has been a very important aspect quality
management system for IKEA (Ferrell & Hartline, 2011).
RESOURCES
https://ivypanda.com/essays/ikea-company-total-quality-management/#:~:text=According%20to%20IKEA
%20vision%2C%20furniture,significant%20part%20of%20IKEA%20policy.

https://ivypanda.com/essays/operation-management-at-ikea-in-uae/

https://www.scribd.com/document/371247760/Improving-Customers-Service-at-IKEA-Using-Six-Sigma-
Methodology