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

The employees working in The suppliers and partners of

the production department
will be trained to overcome
the problems faced by the
customers and resolve their
concerns.
the organization will be
informed about the material
problems and hence the
procurement of the right
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
Suppliers-Inputs-Process-Output-C
ustomers, this gave them an
overview of the entire process from
the suppliers to getting the product
to the customers.
GPS was issued to each of the
delivery staff as well as proper
training on how to professionally
deliver merchandise
They also used Voice of Customer
(VOC), which included survey analysis.
Ikea collected data in various ways:
Personal interviews, Telephone
interviews, Group interviews, Internet
feedback, and Surveys
Handle merchandise delays and updates to
the customer as to the current availability
of their 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
IKEA is an example of the few companies that
have stayed true to the customer-focused
purposes. This aligns the companys
commitment to quality with the expectations
of the customers as far as quality is concerned.
The purpose of the brand has been to create a
better everyday life for the consumers. In
support of this purpose, the organization offers
a wide range of the well-designed and
functional domestic furniture products at very
affordable prices for many people. Low prices
and good quality are embraced right from
product development, choice of the suppliers,
quality testing and how the products are sold
in the stores.
Continuous Improvement Initiative
The company designs and sells the ready to
assemble furniture as well as the home
accessories. It has been known for its modern
architectural designs while paying much
attention to the operational details, cost control
and continues product development. The
quality of the products has remarkably been on
the rise courtesy of the continuous
improvement and innovation measures. They
have remained on top of continues
improvement and change. In a bid to achieve
continuous improvement, the company has
strived to have a value system in place which
supports innovation and continues
improvement.
 Leadership
Leadership is considered as one of the
companys core values. IKEA managers instill
excellence that is directly proportional to the
superior quality of products delivered. The
managers try to set a good example and
encourage others to emulate the same.
Kamprad, the founder of the company, admits
that the best way to get the best out of the
employees is by setting an example and
encouraging the employees to work hard
while adhering to the stringent business ethics,
and above all, excellence.
Engagement of People
People at all levels are of great essence to
IKEA. As such, the business has tried to
involve a range of stakeholders as much as
possible. To some extent, this makes it possible
for the company to pull to the same direction
and adhere to uniform standards concerning
the delivery of quality. There is a platform to
ensure that communication of defects is timely
and taken seriously.
 Process Approach
The company has also tried as much as possible
to embrace the process approach. For instance,
the company is organized into four different
main areas whereby the IKEA of Sweden
conducts the first area range. Secondly, the
purchasing is undertaken by the agents who
are responsible for placing orders according to
the specifications of the company. Then there
is the distribution and wholesale which
undertakes the distribution and transports of
the finished products to the regional
distribution centers of the company, and then
across the globe.
Evidence-based Decision-making
The company has not been left behind when it
comes to evidence-based decision-making,
which is a key aspect in the standardization of
quality. Most of the decisions that are made by
IKEA are supported by some data that can
easily be interpreted to create a framework for
decision-making. For instance, the company
has successfully addressed the problem of
supplying cheap and attractive furnishing
courtesy of in-depth research that finally led to
more informed decision-making in improving
quality.
 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