Improve and Secure the Supplier Capacity Process

Abstract: Purpose: The purpose of this thesis is to implement the One Supplier Capacity Process, a standardized method of working with capacities within IKEA. In order to do this the current way of working with capacities is investigated prior to the actual implementation of the process. The key contribution of the authors is the development of a template to support the implementation process and ensure accurate capacity figures and support the capacity planning process. After the implementation the One Supplier Capacity Process is evaluated with regards to its key components, its implementation, and the results and potential to improve the capacity planning process for IKEA and its suppliers. Methodology: As the authors were actively involved in the implementation phase by adapting the One Supplier Capacity process to the specifics of plastic production, the chosen methodology was participatory action research with a normative approach. The study is deductive and mainly qualitative based on interviews and observations of IKEA employees and suppliers. Conclusions: The One Supplier Capacity Process provides a much needed framework for working with capacities that is lacking today. With the support of the template it provides a standardized method of calculating the capacities to ensure their accuracy, and allows allocation of production resources shared between products. It gives IKEA an insight into the suppliers’ productions that enable proactive work with regards to operationally maintaining availability. The insight should also enable IKEA to more efficiently secure tactical dedication of capacity at its suppliers.