Process Change PPt
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IKEA PROCESS CHANGE
STATUS REPORT
Tryshan Ravenell
Kaplan University – GB560 Dr. James McGinley – ProfessorDesigning, Improving, and Implementing Processes
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Process Change Overview
The process change goal was to change the process of pulling inventory by customers in effort to improve customer retention
The new process has been in effect for over a year
The report highlights activity and process level analysis, performance related issues, and process problems
The new process will help to empower IKEA employees and customers with new ways to get the IKEA products from the stock shelves out the door with the customers
The process will be supplement by new software processes that can be used to track the process and employee progress
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Process Level Analysis
Improving customers’ pulling business process created other processes
Help eliminates customers confusion and dissatisfaction with pulling orders
Increase customers’ shopping experience
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Process Level Analysis (cont)
Improve Customers’Pulling Experience
Hire Additional StaffInstall Automatic
Shelves
Implement New Software with Price
Gun
Purchase / Install Software
Purchase Price Guns
Training for Employees
Customers Using Price Guns
Improve Customers’Pulling Experience
Hire Additional StaffInstall Automatic
Shelves
Implement New Software with Price
Gun
Purchase / Install Software
Purchase Price Guns
Training for Employees
Customers Using Price Guns
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Process Level Analysis (cont)
Applies for job
Screens applications
Human Resources
Advertise open
position
Candidate right for job?
No
Yes
Candidate
Human Resources
Manager
Manager
Human Resources
Selects qualified
candidate
Sets up interview
Interviews candidate
Hires candidate
Applies for job
Screens applications
Human Resources
Advertise open
position
Candidate right for job?
No
Yes
Candidate
Human Resources
Manager
Manager
Human Resources
Selects qualified
candidate
Sets up interview
Interviews candidate
Hires candidate
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Process Level Analysis (cont)
Measures shelf size
Orders shelf
Manager Evaluates floor space
Is shelf right size?
No
Yes
Carpenter
Purchasing
Warehouse
Carpenter
Pays for shelf
Ships shelf
Receives shelf
Installs shelf
Tests shelfWorking
correctly?
Stocks shelf
Manufacturer
Return to manufacturer
Yes
No
Carpenter
Stocker
Measures shelf size
Orders shelf
Manager Evaluates floor space
Is shelf right size?
No
Yes
Carpenter
Purchasing
Warehouse
Carpenter
Pays for shelf
Ships shelf
Receives shelf
Installs shelf
Tests shelfWorking
correctly?
Stocks shelf
Manufacturer
Return to manufacturer
Yes
No
Carpenter
Stocker
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Process Level Analysis (cont)
Greets customer
Finds product
Customer Goes into store
Complete shopping?
No
Yes
Employee
Customer
Customer
Customer
Customer
Scans product with
price gun
Picks up products
Pays for products
Shows customer how to use price
gun
Gives customer price gun to
select product
Greets customer
Finds product
Customer Goes into store
Complete shopping?
No
Yes
Employee
Customer
Customer
Customer
Customer
Scans product with
price gun
Picks up products
Pays for products
Shows customer how to use price
gun
Gives customer price gun to
select product
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Activity Level Analysis
IKEA’s activities have become much more efficient
The activities are centralized with the customer expectations and customer retention strategy
All activities are value-adding and their purpose is transparent
The activities have effectively increased customer touch points
Activities provide a strong basis for continuous process improvement strategies
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• out-of-store touch point
• Great feedback• Coupons associated
with completed survey (rewards)
• Staff dedicated to serving the customer
• Reduce frustrations• Engaging customer
with service-oriented employees.
• Gauges customer overall attitude and perspective
• Great touch point• Feedback used to
improve activity effectiveness
• Formalizes order pulling process
• Fully engages customer
• Creates structure for pulling process
• Great touch points Order fulfillment software &
product scanner package
Customer satisfaction
survey booth (in-
store computer)
Post-purchase survey & rewards incentive
online
Order pulling
specialists (redefined employee
roles)
NEW CUSTOMER RETENTION ACTIVITIES
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New Activity EfficiencyCustomer
Feedback Mechanism (in-store/on-line)
Order pull software & product scanner
Order Pulling specialist (redefined employee roles)
Warehouse
Cashier
Return Desk
Customer shops
Scans product
Feedback booth
Order received
Takes Printout
Takes Printout
pulls order pulls order
Customer pays
Given survey code
Uses code to take purchase
survey
Satisfied
Unsatisfied
Returns product
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Complexity of the Process
New Software Variables Employee Training Initial accuracy of software
Additional Staff Variables Number of applicants Quality of Staff Training
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Complexity of the Process (cont.)
Automatic Shelves Variables Timeframe Number of Stores The Geographical scope of IKEA
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Problems of Process Evolution
Rewards of incentives Paid vacation Paid holidays Sick time Raises
Process of evaluation is easy to determine with the employee problems and also the customer retention.
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Documentation
Incomplete paperwork, Out-of-date or wrong
To many employees trying to get one document up and running
Documentation not available when it is needed.
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Problem Management Tasks
Problems should be addressed in priority
The degree of management and planning required is greater than that needed for incident control,
Responsibility of problem resolution team is to ensure that incident information is documented in such a way that it is readily available to all technical support staff. (FITS)
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Process Planning Diagram
• Identify problem
Evaluate business
needs
• Solve problem
Change management
• DeployCarrie out
development plan
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Worker Performance
Recommitment and reestablishment of expectations formal documentation of problems and write up
process separation interviews are conducted were necessary a commitment to rules and regulation enforcement.
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IKEA Documentation and Write up process
verbal coaching This is to help the employee to improve on what
expectation they are not meeting Formal Letter of Clarity
This document is a permanent record that provides documented proof that a conversation was had about the performance of the individual employee
. This letter is specific to what expectations the employee did not meet and how to fix it.
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IKEA Documentation and Write up process cont.
PIP or Performance Improvement Plan It provides the employee with strict feedback and
coaching on what areas of their job are not being met . This is used to reinforce the same topics that were
not improved on after the letter of clarity.
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Employee Separation procedures
IKEA has established a separation strategy called the exit interview
These interviews can gather some data on how to improve the overall health of the management team and can lead to some new initiatives in improving employee satisfaction
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Rule Enforcement
IKEA strictly adheres to all of the policies in order to make sure that we are providing the best service to our customers and providing the best working conditions for our employees
Most importantly the rules at IKEA are enforced constantly with every employee in the company. IKEA really makes sure that each process is followed to the letter when it comes to termination and documentation as well as company wide policies.
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Summary
The new process change is a success for the IKEA customers and IKEA
The new process has affected the company in each division
The process can be implemented into any IKEA store
IKEA will benefit from the process change via higher customer retention numbers and greater employee skill sets and business process knowledge
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Conclusion
IKEA management must use the new reporting structure to ensure that the process continues to remain viable and productive to the IKEA bottom line
IKEA management must also enforce all employee rules and training requirements
IKEA management should implement the new process in as many of the IKEA stores as possible Keeping in mind that the process may be a little different
at the other stores The more stores that the new process is used at will
mean the more benefit that IKEA can recieve