XX

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/262874977
A critical evaluation of the application of Total Quality Management at IKEA

AUTHOR(S): Anthony Ayodele, Erika Pasquel, Kimara Taniesha, and Erica
Sowah
Article · January 2014
CITATIONS READS
0 10,603
4 authors, including:
Anthony Olabode Ayodele

ICP Research Education and Skills
13 PUBLICATIONS 0 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
USING TECHNOLOGY TO ENHANCE EFFECTIVE COMMUNICATION USING TESCO AS A CASE STUDY View project
Play Golf On The trigger Of Africa (PGTA). View project
All content following this page was uploaded by Anthony Olabode Ayodele on 05 June 2014.
The user has requested enhancement of the downloaded file.

A critical evaluation of the application of Total Quality Management at IKEA
AUTHOR(S): Anthony Ayodele, Erika Pasquel,

Kimara Taniesha, and Erica Sowah
A critical evaluation of the application of Total
A
SITUATIONAL
Quality Management at IKEA AND

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
By Anthony Ayodele, Erika Pasquel, Kimara Taniesha, and Erica Sowah Page 1
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
A critical evaluation
of the application of
Total Quality
Management at
IKEA
ABSTRACT: This Briefing Paper has

been designed to critically evaluate the
application of Total Quality
Management (TQM) in the world’s
leading furniture company, IKEA. The
paper will further critique and outline
how IKEA holistically approaches the
concept of TQM, applying it numerous
principles across the various aspects of
the business, and in general as a whole.
AUTHOR(S): Anthony Ayodele,

Erika Pasquel, Kimara
Taniesha, and Erica Sowah
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
TABLE OF CONTENT
TABLE OF CONTENT ................................................................................................................................ 3
ABSTRACT................................................................................................................................................ 7
1 INTRODUCTION ............................................................................................................................... 8
1.1 A BACKGROUND ON TOTAL QUALITY MANAGEMENT ........................................................... 8
DEFINATIONS .................................................................................................................................. 8
1.1.1 ELEMENTS OF TQM ......................................................................................................... 9
1.1.2 PRINCIPLES/TOOLS OF TQM............................................................................................ 9
2 A BACKGROUND OF IKEA .............................................................................................................. 11
2.1 THE ORIGIN OF FLATPACK FUNITURE ................................................................................... 12
3 FINDINGS ....................................................................................................................................... 12
3.1.1 THE 14 DEMING PRINCIPLES AND IKEA......................................................................... 12
3.1.2 Lean Management ....................................................................................................... 14
3.2 CULTURE................................................................................................................................ 15
3.3 SUPPLY CHAIN MANAGEMENT ............................................................................................. 16
3.4 ERGONOMICS OF IKEA .......................................................................................................... 17
3.5 TOTAL PRODUCT CONCEPT ................................................................................................... 19
3.1 ..................................................................................................................................................... 19
IKEA AUGUMENTED REALITY ........................................................................................................ 20
3.2 CUSTOMER SATISFACTION INDEX ......................................................................................... 21
3.3 BRAND VALUE ....................................................................................................................... 21
3.4 IKEA EMPLOYEE RELATIONSHIP/TRAINING........................................................................... 22
3.4.1 EMPLOYEE RETENTION RATE ........................................................................................ 22
4 CONCLUSION ................................................................................................................................. 22
4.1 RECOMMENDATIONS............................................................................................................ 25
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Table of Figures
Figure 1 ...................................................................................................................................................... 14
Figure 2 ...................................................................................................................................................... 15
Figure 3 ...................................................................................................................................................... 17
Figure 4 ...................................................................................................................................................... 17
Figure 5 ...................................................................................................................................................... 18
Figure 6 ...................................................................................................................................................... 19
Figure 7 ...................................................................................................................................................... 20
Figure 8 .......................................................................................................... Error! Bookmark not defined.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
ABSTRACT
QUOTE
This Briefing Paper has been designed to
The company has come critically evaluate the application of Total
to emerge as the Quality Management (TQM) in the world’s
industry leader in the leading furniture company, IKEA. The paper will
provision of affordable
further critique and outline how IKEA
furniture for all strata’s
holistically approaches the concept of TQM,
of the society suitable
applying it numerous principles across the
for both office usages
and homes. However, various aspects of the business, and in general
over the years as a whole.
competitorors have
In terms of methodology the authors have
begun to master the
adapted a Cross-sectional study, taking note of
“Ikea Edge,”
how TQM Principles are currently applied at
IKEA and benchmarking these with industry
leaders in that area or field of business with the
view of determining a Best Fit/Best Practise
approach.
Our findings established that though IKEA

adheres to the most stringent of measures
towards applying TQM principles in the process
of and the production of its products, at such an
unparalleled high standard towards the elimination of waste (Muda) and
IMAGE: Higher York E-Learning Staff 2013 Staff
unnecessary
Survey Logo processes, the company still falters in the area on convenience
delivery and assemblage.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
1 INTRODUCTION
1.1 A BACKGROUND ON TOTAL QUALITY MANAGEMENT
Total Quality Management was pioneered in the early 1900s through “Quality
Gurus”, who went into different companies to achieve better quality products,
higher volumes of production, and reduced scrap and rework to ensure cost
savings (Bank, 2000). Dr Walter Shewhart, a Laboratory Physicist, introduced the
principles of “Statistical Quality Control (SPC)” which were used in the production
process of exchanges and telephone handsets (Kennedy, 1994). Edwards W
Deming and Dr Joseph Juran continued Shewart’s work at Western Electricity
Hawthorne Plant; Deming applied the Shewart’s concept of statistical control while
working on the 1940 US Census with little success until he went to Japan in 1950
to lecture on quality control, where he introduced what is known as Deming’s 14
principles and the PCDA cycle. Dr Joseph Juran later developed a “Company
Wide Quality Management” concept (CWQM). Quality conscious companies like
Toyota embraced the shift towards a Total Quality Management philosophy and
this led to a Total Quality Movement in Japan (Kennedy, 1994).
Professor Kaoru Ishikawa took TQM beyond the factory floor to the Strategic and
Managerial levels of the organisation launching “Quality Circles”. Armand
Feigenbaum, an American quality control expert and businessman coined “Total
Quality Control (TQC)” and was reported to be the first to make reference to these
quality principles as “Total Quality Management” (Huggins, 1998).
DEFINITIONS
According to the International Standard Organisation (ISO), TQM is a process of
managing of the entire organisation towards ensuring excellence in every
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
department geared towards satisfying the customer. This is engaged without

compromising on the company’s profitability or viability. (Ashok, 2012). TQM
involves working towards an objective of engaging constant improvement of
products, processes, services and culture ensuring that quality is looked from a
holistic view rather than the product alone. (Anon, N/A)
1.1.1 ELEMENTS OF TQM

The element of TQM are contained in Deming’s 14 Principles. This has further
been summarised into seven principles which worldwide have formed the bedrock
of implementing the TQM philosophy. These include:
1. Apply a zero –error policy where thing are right first time
2. Ensuring customers’ needs are focused on and met.
3. Engaging all parts of the organisation
4. Improving continually.
5. Putting in place systems and procedures that enhance success
6. Examining all the costs related to quality
7. Ensuring every aspect and members of the organisation is covered/involved
(Barnett, 2013)
1.1.2 PRINCIPLES/TOOLS OF TQM

The principles of TQM include the various tools and TQM based approaches that
are implemented towards putting it to work in an organisation. These include but
are not limited to:
JUST IN TIME: This connotes the principle of when a department or organisation
makes available its output/finished goods and services to the

department/customer that requires it as and at when needed. Just in time is
designed to eliminate waste and manage resources
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
QUALITY CIRCLES: Quality circles are a group of 1 to 6, they are generally under
supervision of a leader. The employees meet together on regular basis to identify,

analyse, solve problems and introduce solutions to improve their work
performance. They use various techniques to analyse and solve problems to
achieve and sustain. Quality circles have been used for many years since the 70s.
Japanese description of quality circles: is better than one to take one hundred
steps is for one hundred people to take one step.
Ishikawa was credited for creating Quality Circles Japan 1962, being known and
another method for improving quality.
Implementing Quality Circles into Ikea will benefit on productivity, quality and boost
their employee’s morale. An IKEA quality circle organisation structure could be
made up of: The steering committee, The Coordinator, A Facilitator, the Circle
leader and Circle members.
Training for IKEA employees should be designed to:
Change attitude
Continuous Improvement
Self-development
Development of team spirit
BENCHMARKING: Benchmarking is the measuring of an organisation’s internal
processes against departments within the business, their competitors and other
industries to identify, understand, and adapt outstanding practices (Bank, 2000).
Benchmarking is an internal and external process and is essential for IKEA, in
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
terms of TQM, as it identifies how well the company in comparison to other

companies and also how each department is doing within the business.
Benchmarking will give IKEA practically processes and procedures to implement
to achieve a TQM culture. Benchmarking can be used alongside other TQM
theories; especially as part of the Deming Quality Approach recommendations
mentioned in this paper. Internal benchmarking can be used as analytical to for
IKEA when looking at their past performance. External benchmarking will give
IKEA an understanding of what their main competitors are doing, and what they
need to do to remain competitive (Bank, 2000).
2 A BACKGROUND OF IKEA
IKEA is the world’s largest furniture retailing company with strong strategic
positioning in the market. It has very clear and distinct value propositions. IKEA’s
proposition is “offering a wide range of well-designed, functional home furnishings
at prices as low as many people as possible can afford them” (Brian Leavy, 2013);
segmenting low income earners and 25-49 year olds. In 1943, Ingvar Kamprad,
the founder of the company , was seventeen when he built upon family owned
farmland, selling items like socks, pens and furniture… which became the bedrock
product his company was to be based upon; borrowing the initials letters from his
name, farm and village of origin (Älmhult), he gave it the name IKEA (Torekull,
2011) (Agencevu, 2009). In January of this year IKEA’s sales Turnover totalled
29.2 billion. The IKEA Group saw growth in its net income by 3.1% in 2013 to 3.3
billion, with strong growth in China, Russia and the USA. The company reportedly
operated in 42 countries globally and ran at least 345 stores by the time in
question. IKEA aims to increase its stores by 50% by the end of the decade,
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
introducing 20-25 stores each year (500 stores by 2020) (Kifle, 2014). IKEA
strategy is to penetrate smaller markets then moving into dynamic urban centres
(Drew & Smith, 1995). IKEA has maintained this situational strategy, influenced by
its culture seeing the company operating via a franchise arrangement, in
numerous countries around the world; Keeping its corporate identity and image;
and uniformity in quality and the design of its products, providing consistency for
IKEA’s customers allowing them to know what to expect (Jafry, 2012). The IKEA
group consumes 1% of the Earth's wood supply.
2.1 THE ORIGIN OF FLATPACK FUNITURE

After eleven years in the business the concept revolutionised IKEA was
introduced; Flatpack furniture. Gillis Lundgren a draughtsman initiated the concept
with a transport table. As it was too big to fit into his car, he suggested that the
legs be pulled off and placed underneath the base of the table. Some of IKEA’s
major products sold around the world today such as Billy bookshelf and the Kippan
sofa were part of his designs. (Agencevu, 2009).
3 FINDINGS
3.1.1 THE 14 DEMING PRINCIPLES AND IKEA

The Deming’s 14 Point Management Approach to quality management
contains a regulatory list of 14 points to guide organisational process, practices
and behaviour (Anderson, et al., 1994); to achieve reduced costs, increased
profitability and customer and employee satisfaction for an organisation.
(Deming, 1986) describes these 14 points as “principles of transformation”
which challenges top management to endeavour to adjust their strategic
thinking in line with continual change and embrace survival for their
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
organisation. According to (Bank, 2000), the aim of Deming’s 14 points is to

give industry a face; this is in addition to promoting products, offering high
standards of service and the businesses operating efficiently.
(Anderson, et al., 1994) discussed underlying management concepts which

would assist IKEA with the implementation of the Deming method and
achieving a Total Quality Management culture; Referring to Figure 1.1, this will
include “Visionary Leadership Style” with elements of “Participative
Leadership” leading to “Transformational Leadership” rather than the existing
“Authoritarian Leadership” (Point 1 & 7); “Internal and External
Cooperation”(Points 4 &9); “Organisational Learning”(Points 2,3,6 &13);
“Process Management“ (Point 10 & 11); “Continuous Improvement”
(Kaizen)(Point 13 & 14); “Employee Fulfilment”(Points 8 &12 ); and “Customer
Satisfaction”(Point 1 &3).
When developing and using the Deming methodology, IKEA managers will
need to be aware that there are greater implications for top management,
especially in terms of their behaviour (Baillie, 1986) and attitude. According to
(Crosby, 1989), Deming and Juran support this view as they stated that “the
problem of quality belongs to management”.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Figure 1 External Benchmarking of IKEA with Competition
Figure 2
3.1.2 Lean Management

Lean Management is a principle much in practise in IKEA. The Lean mind set sees
the company so synchronise the retail store and the warehouse with floor marking,
tapes and signage to offer direction, ensuring that both staff and customers can
go about their duties and shopping respectively at any time of the day. The
warehouse staff also double up as the customer service staff as they are trained
to direct and interact with customers when the need arises. (Wilson, 2013)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
3.2 CULTURE
IKEA culture is based on its
corporate values which
have their origin in
Smaland, a province in
Southern Sweden where
people are exceptionally
thrifty, hardworking and
innovative. The Swedish
culture has been described
Figure 3
using the Hofstede cultural
framework as a lower context culture with a relatively low power distance (31%)
according to Clearly Cultural), a collectivist society with low masculinity factors.
Gleamed from the Swedish culture, a collectivism orientation is quite evident with
IKEA; where loyalty, family type values and value are stipulated very clearly.
People who digress from this would not even pass the recruitment stage at IKEA.
IKEA have a top down culture where employees are described to be dictated to by
their superiors. IKEA is dedicated to making quality and good, simple design
available to the masses. Kamprad’s penny pinching nature has been pasted
through the entire organisation where employees and customers should
understand the philosophy that “You do your part, we do our part and together we
save money” (Telegraph, 2012). This philosophy also is seen in IKEA recruitment
where IKEA try to find people who understand why the company does what it does.
Values act as a reference for readiness to receive or assign responsibility for
acceptable behaviours. Internally the IKEA view is to have the customer’s interest
at heart, be open and cost conscious but (Smithers, 2014) reported that customers
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
are not happy because of the delivery services and this is reflected in terms of
Customer Convenience in the Customer Service Index mentioned elsewhere in
this report. Customers have also been disheartened with items, such as screws,
being missing in products; product recalls and “cheap” quality products. (Vallaster,
2004; Weick, 2001; Weick et al., 2005).
3.3 SUPPLY CHAIN MANAGEMENT

IKEA has adapted a Global Supply Chain Management System (Emerald, 1996)
which outsources and engages offshore manufacturing of its products in a central
region that deems to provide IKEA with best advantage. The Supply Chain of IKEA
is a Make to Stock (MTS) as against the Just in Time method (JIT). Prior to
adapting its global Supply Chain approach the stores and departments were
saddled with placing orders themselves since the system was forecast based, this
led to stock outs, creating the Bull whip effect scenario in the movement of items;
where either too much or too little stock was ordered (Holmberg, NA).
The present IKEA Supply Chain Management System is designed so that the
company controls and handles its own designing, manufacturing, warehousing
and even retailing. Furthermore, the retail outlets serve as the warehouse stores
with customers at times walking through to pick up their goods and to pay at its
exit tills (Lim, NA). IKEA has established a lasting relationship with its raw material
suppliers seeing the growth of many of them, over the years, being due to the
company. IKEA’s products are packed by automated Flat Pack machines and
transported to distribution centres. From there they are taken to the Warehouse
which is linked to the retail stores. The customers are part of the IKEA supply
chain, visiting the warehouse to pick up their goods and assemble the furniture
themselves. (Lim, NA)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
3.4 ERGONOMICS OF IKEA
Ergonomics of IKEA is very

poor, visitors to the IKEA stores
struggle with the structure and
layout as it’s not designed with
the efficiency, comfort or ease
of use for customers. The Daily
Telegraph reports that IKEA’s
layout disorients and confuses
buyers. Goods are laid out in a
particular pattern along the
Figure 4
shopper’s pathway so that they
will see bargain price tags prompting them to make a purchase. The store’s layout
is interpreted as a “Psychological weapon.” (Bloxham, 2011)
The “Zag-Zig” kind of trail or

“The IKEA Evil Layout” (Hunger,
2012), is used to encourage the
customer to walk throughout the
entire length of a predetermined
pathway that displays the entire
contents of the IKEA catalogue.
An IKEA customers reportedly
averagely could spend a
minimum of three to eight hours
Figure 5
walking around the store. They
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
are most likely compelled to make a few impulse purchases in the process, one
observer reckons. (Tozer, 2014) (Hunger, 2012)
This store model differs from ergonomic requirements; which ensures the structure
of a store being synergised with the strengths and ease of operation and
coordination towards limiting stress and enabling them to shop in a streamlined
fashion (Learning.org.uk, N/A).
Figure 6
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
3.5 TOTAL PRODUCT CONCEPT
3.1
Total Product
Concept a theory
credited to Ted Levitt
looks, from the
perspective of
Michael Porters, at the
differentiation of a
product that enhances
its marketability and
competitive
Figure 7 Advantage. (Michael
Porter states that
Competitive advantage of a product could be gained through Cost leadership/
Price or Product differentiation, (Porter, N/A)
Levitt argued that loses recorded in businesses could be as a result of Price,

Quality and Poor Service in a ratio of 1.5/1.5/7 in that order.
As seen in in the diagram tagged Total Product Concept below products could be
presented at four levels of differentiation being: Generic: the core of the product;
Expected being what the customer normally expects in a product; Augmented:
being what has been added as an extra to woo the customer and Potential: being
additional value or features that could be add in future to enhance the products
value. (Threfall, 2014)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
IKEA AUGUMENTED REALITY
The augmented product is

what really stands the
product out. It could lead to
customer loyalty for one
product at the expense of
another.
In this regard IKEA has

Figure 8 introduced what it calls
Augmented Reality which
provides its customers the opportunity of checking how a product would fit into a
home setting by transferring a virtual image of the product on to a tablet, or similar
potable device while viewing the space it is required in at the home. (Gixmag, N/A)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
3.2 CUSTOMER SATISFACTION INDEX
3.3 BRAND VALUE

IKEA has been strong BRAND value. In the Interbrand Best Global Ranking IKEA
ranked 26th among the top ranked global brand in the world. In the same list Apple,
Google and Coca-cola rank first, second and third respectively. (Interbrand, N/A)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
3.4 IKEA EMPLOYEE RELATIONSHIP/TRAINING

In the area of training IKEA has reportedly stood out with regards giving employees
a sense of belonging. A committed workforce of the part of IKEA has seen the
latter provide innovative concepts as seen in the case of the flatpack concept
stated earlier. Also the company in 2000 implemented initiatives to promote
diversity, balance and life.
Also in the area of flexibility, IKEA comes across on a strong note. Diversity
leadership/culture programs to train staff were introduced Part-time staff were
even allowed to share hours with full-time staff where agreed, forming a strong
dependant bond among staffers (Desight, 2011)
3.4.1 EMPLOYEE RETENTION RATE

IKEA reportedly has a low employee turnover rate, being as low a 37% as against
the industry’s 60%. However a case with the companies union in Canada which
lingered on towards the end of last year has seen the company have a few issues
in this area as well (Newswire, 2013) (News, 2004)
4 CONCLUSION
In conclusion one may observe that towards ensuring high quality standards IKEA
enforces its suppliers to comply to set IKEA quality standards. (Shurrab, 2001).
Towards ensuring this in 2000 the company introduced the IKEA code of conduct
(IWAY) designed to evaluate and check regulation of suppliers with IKEA
regulations.
This is followed up by and what is called an IWAY standard, which is based upon
a vision to have a positive impact on its customers and environment and, to only
work with suppliers that have a similar vision. (Hailemicheal, 2011)
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
IKEA in its approach to business involves and co-produces products (at the
packaging and delivery level) alongside its customers. (Journals, N/A)
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.
This in turn optimises loading and transportation for IKEA, seeing to the elimination
of waste (muda) an important aspect of TQM (Hailemicheal, 2011)
The process of elimination of waste is also seen in the manufacturing process of

the company’s products. An example is the LED lamp, Stranne, one of IKEA most
popular lamps on sales which is strictly produced under the lowest required energy
process and in turn produces a low energy requiring product. Such Lamps used
for illumination in IKEA stores drastically reduces energy cost in the company.
(Hailemicheal, 2011)
Also, on the issue of waste, IKEA has one of the most efficient waste recycling
systems designed by furniture manufacturing company. Cardboard discarded from
unpacking items is stored and later used to serve as compressed content of a
compact design, covered, IKEA Table. (Hailemicheal, 2011)
Sales reportedly increased by 6.3% to £1.2 billion with online sales increasing by
24.9% in 2013 as a result of such, IKEA reports (IKEA, 2006).
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
However, IKEA does not presently apply a Holistic approach to TQM (as stipulated
by Quality Gurus quoted in this report). Neither is it found applied in other important
areas such as the ergonomics of the store layout and Customer Care.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
4.1 RECOMMENDATIONS
1.1.1.1 External Benchmarking of IKEA with Competitors
Benchmarking IKEA with competitors in view of establishing how IKEA can

adopt best Practices applied elsewhere, we arrived at the following:
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Furthermore, by way of recommendations we would suggest that with regards to

the findings we have established above that IKEA should:
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
* Augment the service delivery presently at IKEA, providing delivery and

assemblage of the products at the customer’s home/venue. This will help
especially with the introduction of new stores such as a proposed one in
Greenwich where residents have raised animosity due to feared traffic congestion.
* Adopt the digital store concept applied by Argos at its Old Street. This can be
used side by side with the present warehouse/retail store display structure IKEA
has in place. This will give customers options to choose from between the two
shopping formats. By doing this IKEA will be adhering to a TQM principle of
eliminating waste (Muda) of Time and Processes.
* Adopt the use of Radio Frequency Identification (RFID) guns introduced by

Tesco's in some of its pilot stores recently. This makes the payment process
easier, a bedrock principle of TQM of doing things right first time and making things
simpler.
* Adopt the Agros/ Amazon kind of conveyor belt system to convey goods ordered
by customers from Warehouse to the payment point. This will also save time and
processes.
Currently IKEA needs to improve its customer convenience aspects of service.

Customer service can be used a source of competitive advantage; only if it is
sustained through invariable progression. Giving the customers the viewpoint and
belief that “The customer is king”.
With regards to practical implications we recommend that the applications of TQM

principles must be adhered to on a holistic level from the downstream (being the
sourcing of Raw Materials) to the upward stream including delivery and
assemblage of the final product as desired by customers.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Works Cited
Anderson, J., Rungtusanatham, M. & Schroeder, R., 1994. A Theory of Quality Underlying the Deming
Management Method. Academy of Mangement Review, 19(3), pp. 472-509.
Ayrad, A., 2010. Critical thinking and business process improvement. Journal of Management
Development, 29(6), pp. 556-564.
Baillie, A., 1986. The Deming Approach: Being better than the best. Advanced Management Journal, pp.
15-23.
Bank, J., 2000. The Essence of Total Quality Management. 2nd ed. Europe: FT Prentice Hall.
Clutterbuck, D. & Goldsmith, W., 1998. Customer care versus customer count. Managing Service
Quality, 8(5), pp. 327-338.
Crain, D. & Abraham, S., 2008. Using value-chain analysis to discover customers' strategic needs.
Strategy & Leadership, 36(4), pp. 29-39.
Crosby, P., 1989. Let's Talk Quality: 96 Questions You Always Wanted to Ask Phil Crosby. New York:
McGraw-Hill.
Deming, W., 1986. From Out of Crisis. In: Massachusetts: Cambridge: Massachusetts Institute of
Technolody.
Dhiman, S. & Marques, J., 2011. The role and need of offering workshops and courses on workplace
spirituality. Journal of Management Development, 30(9), pp. 816-835.
Drew, S. & Smith, P., 1995. The new logistics management: transformation through organisational
learning. Logistics Information Management, 8(1), pp. 24-33.
Edvardsson, B., Enquist, B. & Hay, M., 2006. Values-based service brands: narratives from IKEA.
Managing Service Quality, 16(3), pp. 230-246.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Efendioglu, A. & Murray, L., 2007. Globalisation & labour: needs, means & returns". The Business
Review, 8(1), pp. 266-271.
Enquist, B., Edvardsson, B. & Sebhatu, S., 2007. Values-based service quality for sustainable business.
Gatsoris, L., 2012. Competitive intelligence in Greek furniture retailing: a qualitative approach. EuroMed
Journal of Business, 7(3), pp. 224-242.
Giaretta, E., 2005. Ethical product innovation: in praise of slowness. The TQM Magazine, 17(2), pp. 161-
181.
Gouthier, M., Giese, A. & Bartl, C., 2012. Service excellence models: a critical discussion and comparison.
Gummesson, E., 1994. Service Management: An Evaluation and the Future. International Journal of
Service, 5(1), pp. 77-96.
Gummesson, E., 1998. Productivity, quality and relationship marketing in service operations.
International Journal of Contemporary Hospitality Management, 10(1), pp. 4-15.
Gummesson, E., 2008. Quality, service-dominant logic and many-to-many marketing. The TQM Journal,
20(2), pp. 143-153.
Hales, D. & Chakavorty, S., 2006. Implementation of Deming's style of quality management: An action
research study in a plastics company. International Journal of Production Economics, 103(1), pp. 131-
148.
Hill, F. M., 1996. Organisational Learning for TQM through quality circles. The TQM Magazine, 8(6), pp.
53-57.
Johannisson, B., 2007. Enacting local economic development- theoretical and methodological
challenges. Journal of Enterprising Communities: People and Places in the Global Economy, 1(1), pp. 7-
26.
Johansson, U. & Thelander, A., 2009. A standardised approach to the world? IKEA in China. International
Journal of Quality and Service Sciences, 1(2), pp. 199-219.
Jonsson, P., Rudberg, M. & Holmberg, S., 2013. Centralised supply chain planning at IKEA. Supply Chain
Management: An International Journal, 18(3), pp. 337-350.
A
SITUATIONAL

STRATEGIC
LOOK AT IKEA
AND THE
FUTURE
Lawrence, L., Andrews, D. & France, C., 1998. Alignment and deployment of environmental strategy
through total quaity management. The TQM Magazine, 10(4), pp. 238-245.
Lindgreen, A., Swaen, V. & Johnston, W., 2009. Corporate social responsibility: an empirical
investagation of US organisations. Journal of Business Ethics, Volume 85, pp. 303-323.
Lobler, H., 2013. Service-dominant networks An evolution from the service-dominant logic perspective.
Journal of Service Management, 24(4), pp. 420-434.
Maon, F., Lindgreen, A. & Swaen, V., 2009. Designing and implementing corporate social responsibility:
an integrative framework in theory and practice. Journal of Business Ethics, Volume 87, pp. 71-89.
Morelli, N., 2009. Service as value co-production: reframing the service design process. Journal of
Manufacturing Technology Management, 20(5), pp. 568-590.
Pot, F., 2011. Workplace innovation for better jobs and performance. International Journal of
Productivity and Performance Management, 60(4), pp. 404-415.
Rigby, D. & Tager, S., 2008. Learning the advantages of sustainable growth. Strategy & Leadership, 36(4),
pp. 24-28.
Sebhatu, S. P. & Enquist, B., 2007. ISO 14001 as a driving force for sustainable development and value
creation. The TQM Magazine, 19(5), pp. 468-482.
Smith, P. & Sharma, M., 2002. Developing personal responsibility and leadership traits in all your
employees: part 1-shaping and harmonising the high-performance drivers. Management Decision,
40(8), pp. 764-774.
Snee, R. D., 1990. Statistical Thinking and its Contribution to Total Quality. American Statistical
Association, 44(2), pp. 116-121.
Tarnovskaya, V. & Chernatony, L., 2011. Internalising a brand across cultures: the case of IKEA.
International Journal of Retail & Distribution Management, 39(8), pp. 598-618.
Tarnovskaya, V. & Chernatony, L., 2011. Internalising a brand across cultures: the case of IKEA.
International Journal of Retail & Distribution Management, 39(8), pp. 598-618.
View publication stats

XX

Uploaded by

Copyright:

Available Formats

You might also like

XX

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

XX

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

A critical evaluation of the application of Total Quality Management at IKEA

Article · January 2014

Anthony Olabode Ayodele

Play Golf On The trigger Of Africa (PGTA). View project

The user has requested enhancement of the downloaded file.

AUTHOR(S): Anthony Ayodele, Erika Pasquel,

Quality Management at IKEA AND

Quality Management at IKEA AND

ABSTRACT: This Briefing Paper has

AUTHOR(S): Anthony Ayodele,

Quality Management at IKEA AND

Quality Management at IKEA AND

Quality Management at IKEA AND

Quality Management at IKEA AND

Quality Management at IKEA AND

Our findings established that though IKEA

Quality Management at IKEA AND

Quality Management at IKEA AND

department geared towards satisfying the customer. This is engaged without

1.1.1 ELEMENTS OF TQM

1.1.2 PRINCIPLES/TOOLS OF TQM

JUST IN TIME: This connotes the principle of when a department or organisation

makes available its output/finished goods and services to the

Quality Management at IKEA AND

supervision of a leader. The employees meet together on regular basis to identify,

Training for IKEA employees should be designed to:

Development of team spirit

BENCHMARKING: Benchmarking is the measuring of an organisation’s internal

Quality Management at IKEA AND

terms of TQM, as it identifies how well the company in comparison to other

Quality Management at IKEA AND

2.1 THE ORIGIN OF FLATPACK FUNITURE

3.1.1 THE 14 DEMING PRINCIPLES AND IKEA

Quality Management at IKEA AND

organisation. According to (Bank, 2000), the aim of Deming’s 14 points is to

(Anderson, et al., 1994) discussed underlying management concepts which

Quality Management at IKEA AND

Figure 1 External Benchmarking of IKEA with Competition

3.1.2 Lean Management

Quality Management at IKEA AND

Quality Management at IKEA AND

3.3 SUPPLY CHAIN MANAGEMENT

Quality Management at IKEA AND

3.4 ERGONOMICS OF IKEA

Ergonomics of IKEA is very

The “Zag-Zig” kind of trail or

Quality Management at IKEA AND

Quality Management at IKEA AND

3.5 TOTAL PRODUCT CONCEPT

Levitt argued that loses recorded in businesses could be as a result of Price,

Quality Management at IKEA AND

IKEA AUGUMENTED REALITY

The augmented product is

In this regard IKEA has

Quality Management at IKEA AND

3.2 CUSTOMER SATISFACTION INDEX