Operations Management 620 Section 33

Project Charter

Project Team # : Group 7 - IKEA

Prepared by :

Date: April 28th, 2024

Table of Contents

Operations Management 620 Section 33 ........................................................................ 1

1. Overview ................................................................................................................ 3
2. Objectives .............................................................................................................. 3
3. Project Deliverables ............................................................................................... 3
4. Project Scope ........................................................................................................ 3
5. Project Master Schedule ........................................................................................ 4
6. Project Team ......................................................................................................... 5
7. Project Communication .......................................................................................... 5
8. Project Risks and Mitigation Plan .......................................................................... 6

2
1. Overview

This project aims to delve into the overall operational performance of IKEA, identifying
the areas that need to be improved to optimize resource allocation thereby minimizing
waste and boosting productivity. The project will cover following matters:
 Examine IKEA's market position and its effects on shop operations.
 Examine retail sector trends and problems that impact IKEA's operations.
 Identify the primary drivers that necessitate the need to optimize store operations.

2. Objectives

 Determine IKEA's competitive advantages in terms of cost, product selection, and

customer service.
 Determine IKEA's competitive priorities, including cost leadership, product
innovation, and customer service.
 Examine how IKEA's retail operations support its competitive goals and improve
its market position.
 Identify key areas for improvement, minimize waste and increase productivity.

3. Project Deliverables

 Detailed examination of IKEA's competitive advantages and priorities.

 A comprehensive report detailing results on store operations performance and
opportunities for development.
 Actionable recommendations for optimizing IKEA's retail operations in accordance
with its competitive aims.

4. Project Scope

 Overview of the company, including unique products and services

 Competitive advantages, competitive priority, and operations performance priority
analysis
 Description of store operations, including process and schematic layout
 Assessment of the flow of customers, goods, and services
 Investigate IKEA's supply chain management practices and how they affect store
operations.
 Analyze consumer feedback and satisfaction levels to determine the efficiency of
retail operations.
 Examine the role of technology, automation, and AI in simplifying IKEA store
operations.

3
5. Project Master Schedule

No Description Start Date End Date Remarks

1 Gather data on IKEA's May 1, May 6, Research into IKEA's
pricing strategies, 2024 2024 competitive
product range, and advantages and
customer service priorities
initiatives.

2 Make on-site visits to May 6, May 12, Analysis of IKEA's

IKEA stores to observe 2024 2024 store layout, customer
layout, signage, and flow, and service
traffic patterns. efficiency.
Interview shop managers
and employees to better
understand operational
difficulties and
opportunities.
3 Evaluate the usage of May 13 May 19 Evaluation of IKEA's
technology such as self- technology integration
checkout kiosks, and automation.
inventory management
systems, and internet
ordering.
Evaluate the effects of
automation on retail
efficiency, customer
experience, and
employee productivity.
4 Combine research May 20 May 30 Compilation of
findings, analysis results, findings and
and stakeholder recommendations
comments into a
comprehensive report.
Create practical
recommendations for
optimizing store

4
 operations in line with
IKEA's competitive aims.

6. Project Team

Role Name Responsibilities

Oversee projects to ensure they
Project Leader
are completed on time and with
clear objectives, ensure
successful team coordination,
delegate duties. Assist in data
Analysis and Support in
Presentation.

Team member Support in research,

presentation, checking grammar,
arranging meetings,

Team member Identify areas for improvement,

proofreading, checking grammar,
and APA reference formatting.

Team member Assist in data analysis, providing

solutions, recommendations, and
formatting

7. Project Communication

 A meeting on May 4, 2024, and an on-site visit to an IKEA shop in the first week
of May. The goal of the visit is to examine store operations, layout, and client flow
firsthand. This visit will provide useful insights into IKEA's retail operations and
customer experience.

5
  Meeting on Microsoft Teams every Friday to allot tasks, progress of the part
assigned, and have a discussion for editing and everyone's consent of the subject
matter included.
 Sending any useful information and updates like journals, news articles, news, etc.
in the WhatsApp group. If necessary, we have also included face-to-face
interaction after class on Monday for half an hour so that we can keep better track
of the project to be done.

8. Project Risks and Mitigation Plan

Risks
 IKEA provides limited accurate statistics and information.
 The difficulty of examining complicated store operations in a given timeframe.
 Conflicting demands from other projects or organizational priorities might draw
attention and resources away from the current one.
 Delays and conflicts about the subject matter to include in project.

Mitigations Strategy:
 Establish a solid rapport with IKEA personnel to promote data access and
openness.
 Divide the analysis into manageable tasks and allow enough time and resources
for each phase.
 Engage team member early in the process, highlight the benefits of optimization,
and resolve objections promptly.
 The difficulty of examining complicated store operations in each timeframe
 Misunderstanding among team members.