Operations Management At Mcdonalds Management Essay

What is Operation Management?

Operations Management is an activity of management which is concerned with the production and delivery of products and service to an organization. The operations functionis the part of the organization that is responsible for this activity. Every organization has an operations function Operation management is very important for any company. And by this function company can grow-up and moving in right way.

For example

Mc Donald’s

Mc Donald Corporation was Born in 1940s. It was the first fast food industry in the world market.  And who started a chain system in the world market. It serves some of the world favourite and famous food like French fries, Big Quarter Pounder, Chicken Nuggets and sausage McMuffin with egg as a breakfast. Mc Donald is the leading global food service retailer with more than 33000 local restaurants served by more than 1.7 million  employees p in 122 different countries. Mc donald’s serves more than 49 Million customers around the world each and every day. More than 80% of Mc Donald’s restaurant worldwide ran by independent local distributor and local public. Mc Donald corporation is grew from beginners and Every year they produce new product or scheme for  attract a customer. By latest news McDonald’s introduce a new product as fruit maple oatmeal in its menu in 2011. Mc donald is using a Operation Management system for be in a International market.

McDonld process

McDonald’s manufacturing process is completely transparent to the customer and in the market. Even A customer can see the process of the fast food and they can judge to hygienic standards at Mc Donalds by allowing them to enter where the process took place. A customer has allow to check the ingredients used in food.

Inputs

Material-Other procedures where the material use which can called a preparation. We have to prepare for all kind of material for making fast food. And Raw material are arranged acoording to the requirement.

Example :

Ready all kind of sauce, make a ready all vegetable and salads to ready for serve, burgers, Cheese, Chips and extra.

Information -Information could do so to transform their informationalproperties. A change the possessionof the information.

Example: Mc Donald research market to sell information. Store information about past experience and data about McDonalds Company.

Facilities:

McDonald has a all kind of facilities for making a food and preparing a food and servicing facility. They have buildings, equipment, plant and process technology of the operation. They provide a good arrangement for workers, servicing. They provide storage and administrative areas. The facility is designed by traditional techniques, scale plans, diagrams, and travel charring very lower cost.

Staff  In the McDonalds the people who operates, maintain, plan and manage the operation.

the term ‘staff ‘ to describe all the people in the Main operation, and any kind of operation.

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Transformational process

The steps needed to transforming inputs into outputs. This is a Main part of transforming process. By transforming process Mc Donald handle a input and outputs servicing and It and maintain Quality services.

Output

The output has a required to the product and service by the customer. By output Mc Donald give aGood service to customer and satisfaction. They also believe to provide a quality product to a customer.

Quality Management

Mc Donald maintaining the quality of the goods and services so It can meet the minimum requirements laid by the corporation. For manage and maintain the quality of the product and services they must adobe a quality checks procedure. Quality in McDonald  is very important. And its depend on two main reasons. One reason that, it’s a legal requirements of the quality of fast food served. And Secondly ,to Maintain the good reputation about McDonalds Corporation earned over the years. Its  very difficult to maintain an quality of food  and therefore McDonalds carry on a number of practices to Double check that quality food is served. Some of these practices are the visited by the food inspector from the Food and Hygienic, supervisor checks etc.

4v challenges in Mc Donald

The volume of their output;

The variety of their output;

The variation in the demand for their output;

The degree of visibility which customers have of the production of the product or service.

The volume dimension

High-volume hamburger production is McDonald’s, and they serve millions of burgers in the world each and every. Volume has most thing to implications for the way McDonald’s operations are organized. First reason is the repeatabilityof the tasks people are doing and the systemizationof the worked where standard procedures are fix in a manual, with instructions with big volume of the job should be carried out. Also the tasks are systematized and repeated, it is worthwhile developing specialized fryers and ovens. All this given by low unit costs. Now consider a small local cafeteria serving a few ‘short order’ dishes. The range of items on the

menu may be similar to the larger operation, but the volume will be more less than large operation.  And a degree of repetition will also be far lower. and the number of staff will be less.

The variety dimension

Mc Donald company offers a high-variety service. It may confine its  different type of  fast foods, servicing of people in the restaurant. In order to offer this variety it must be relatively flexible. Employee must have a good knowledge about customer like and dislike. So they can prepaid for that.

The variation dimension

MC Donald company has a variation dimension in a year. Basically Mc Donald has variation in products. Like, Hot food, and Cold drinks and Ice creams and different type of cold drinks. And Hot chocolates. Customers like cold drinks in summer times than in the middle of winter. And Customer like to drink Hot chocolates in winter time. They have different breakfast as per seasonal time.

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The visibility dimension

Visibility is a slightly more difficult dimension of operations to envisage. It means how much of the operation’s activities its customers experience, or how much the operation is exposedto its customers. Generally, customer-processing operations are more exposed to their customers than material- or information-processing operations. But even customer processing operations have some choice as to how visible they wish their operations to be. For example, in clothes retailing, an organization could decide to operate as a chain of conventional shops. Alternatively, it could decide not to have any shops at all but rather to run an internet-based operation.

Performance Objectives of every organization

There are five performance objectives.

  • Speed
  • Cost
  • Quality
  • Dependability
  • Flexibility

Organizational structure of McDonalds, affects its performance and helps it to meet its objectives. The organizational structure of McDonalds has a big impact in helping the restaurant to have an effective performance and also boost it to meet its objectives. The production area of McDonalds by ensuring that there is enough food products, packaging for food in order for the restaurant to operate each day, and to requirement of the customers, and that customers needs are met properly. To do this McDonalds orders the food that it require from the suppliers in bulk whenever needed; this is essential due to McDonalds serving the food over a number of customers every day, the restaurant required to be good equipped with food items and packaging for the food so that it can run successfully and not have customers complaining due to the lack of food this According to my study McDonald’s has two main performance objectives.

Speed

How much the time to customer has to stay for their product and the services it’s called speed. McDonald’s aim for drive-thru is 90 seconds. But that is just regular documentation for the report not for every time. Here speed is main objective for McDonald’s drive-thru performance, so they have to be accurate on that. If they can’t keep that speed for serve the customer in drive-thru during busy time customer will unhappy with the services. For progress that performance McDonald’s need to modify the policy and the system to serve the customer that will consume the time to chase the customer’s order in-time. For perform excellent process they have to follow the sequencing regulations, like when the customer will come first, than priority for that customer is high than the next customer. According to the sequencing system in McDonald’s they wish First-In-First-Out Sequencing rules. Some time it could be change on order. If they make two different queues for serve the customer fast by customer’s order number. It means two different queues for big and little order that will be supportive to McDonald’s serving speed.

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Cost

Cost is usually main objective for McDonald’s. For organization complete in price, cost must be a significant objective. If they produce lower price product than it would be cheap for the customer. Most of the organization spends the money first for staff wages, after that machinery, stuff, tools and services. McDonald’s provide low cost product. McDonalds food is very cheaper than other Companies food. Mc Donalds give an offer to customer’s in a meal deal, Burger, sandwich and  more number of people will be attracted by offer and McDonald average cost will decrease. Mcdonalda in some cost cutting strategy include are also investing in energy-saving to equipment

Quality

Mcdonalds food quality is as good as at used to be long time,this restaurant is already go through periodic inspections in item of quality food,in mcdonalds improving to tranning process and taking care of employees. Well i think the quality and menu at McDonald’s needs to improve. Whats with the quarter pounder’s meat sticking out of the bun? Bun should be the same size as the meat, baru okay for the price that we are paying. For the past 20 years we’ve all been eathing the same thing, whats new?? Fold over, Quarter Pounder, Prosperity Burger, Big and Tasty Samurai Burger, Chicken Mc Deluxe all etc.

CONCLUSION:

We learn from above assignment that operations management is very important for any company as they have a partnership with the overall strategy of the organisation. Mc Donald used an Operation Management system in there channel. And by using a OM system Mc Donald company grow up year by year. McDonald’s believes that the success of the restaurants and the company is achieved through the people it employs. MC Donald has a powerful five performance obejectives.The company aims to recruit the best people, to retain them by offering ongoing training relevant to their position and to promote them when they are ready.OM contributes to the strategy and they helps the organisation to gain competitive advantage. For an immediate basis, process planning can help the organisation reduce cost and gain cost advantages and therefore gain competitive advantage. Therefore the organisations must effectively manage the operations of the business as it has a massive effect on the strategy of the organisation.


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