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Operations management of mcdonald's
What is the importance of operations management
What is the importance of operations management
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2.0 Operation Management in McDonalds
Operations management can be defined as “Managing the available resources by designing, planning, controlling, managing and scheduling the systems & functions and thereby deliver the organization’s primary product & services” It has been an essential part of manufacturing and service organization and is aimed at timely delivery of finished goods & services to the customers and also achieving it in a cost effective manner. It consist of an amalgamation of different functions including quality management, design & industrial engineering, facility and channel management, production management, operational research, work force management, enhancing product design, improvising
Productivity and improve customer
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This assists in decisions like “what are the tasks we need to finish today, who will clean-up the restaurants for the day, what jobs have priority etc”. E.g. this would be typically be the decision made by a shift operator in a restaurant. These would be narrowly focused on departmental objectives.
2.2Evaluating success of existing operational management processes at McDonald.
Product Design and Positioning -: Product planning and design in McDonald’s includes creating a menu keeping both the economy and quality into consideration. McDonald’s operational management process related to product design as follows,
1. Achieving consistent and similar quality, flavor and taste across their entire restaurant chain worldwide by development of sophisticated supplier network and distributors network.
2. McDonald’s create innovativeness by catering to the changing needs and preferences of the customers by removing certain items based on their seasonality and adding new products to the menu. For e.g introduction of healthy, low carb, low calorie food items in the menu for the health conscious
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The job design aspect of it also evaluates the technical, economic and behavioral aspect of an employee to decide if they can do their job with the assigned recourses.
Supply Chain Management process -: Supply chain strategy refers to the suppliers and customers, their deliveries, repayments, inventories etc. Operational management plays a huge role in McDonalds including the product to be delivered and the materials required to be purchased to make this product.
McDonalds have a certified list of suppliers for their raw materials such as buns, meat, sauce, mayonnaise, dishes, drinks ice creams, packaging etc. Timely ordering of scarce recourses, proper quantity, costs all these part of the operation management in McDonald’s.
Maintenance Process -: Maintenance is a critical aspect to achieve McDonald’s strategic goals of enhancing the reputations, brand image and goodwill. Operational objectives as follows,
1. Service and maintenance of office equipments, food equipments to maintain quality, hygiene.
2. Putting safety of employees first by features like fire drills, fire escape, emergency management training etc.
3. Protect the company’s asset that also includes employers and
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
McDonald’s Corporation started out in the way that many businesses do, with one idea and a brilliant mind or two. The year was 1948, when two brothers by the names of Mac and Dick McDonald, set forth with the idea to provide a low cost, quickly produced meal. Thus, the restaurant we know today was born. The menu consisted of only nine items such as: hamburgers, cheeseburgers, soft drinks, milk, coffee, potato chips, and pie. The staple of this menu was the hamburger for only 15¢. In 1954, a milkshake salesman named Ray Kroc stopped by the brother’s hamburger stand to sell them more milkshake machines. Upon learning that the brothers were looking for a national franchising agent, he quickly realized his future would be in
The “Made for you” concept menu was also introduced in 1998. It was introduced to revamp kitchens and promote sandwiches made especially for the consumer. This was to keep food fresher. It is a computer based production system. McDonald’s developed the software itself. The new system will also replace the “batch” method where food is often made before the consumer enters the restaurant.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
Operations management focuses on carefully managing the processes to reduce and distribute products and services. Related activities include managing purchases, inventory control, quality control, storages, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how the operations management is carried out in an organisation depends very much on the nature of products or services in the organisation, for example, retail, manufacturing, wholesale and etcetera.
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
McDonald’s vision statement can be said that it wants to be the world’s best quick service restaurant experience. Being the best for McDonald’s means that it needs to provide the best of the quality of food products, services, and cleanliness and value so that it can make everyone of its customer smile (Schmitt and et.al, 2011). A vision statement of the company is an idea for how business can be eventually perceived and what actions it will be taking for coming 5, 10 or 15 years for i...
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
McDonalds believe that good customer service is the responsibility of everybody in the company. Every employee has a part to play in providing with a service with best practise found anywhere in the trade.
According to Aquilano, Chase, and Jacobs (2005), "Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services" (p.19).
But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald's have introduced SALAD into their menus. This preference is not stopping with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and changing preference in tastes and dishes has made them bring the changes.... ...
In all the restaurants, the menu tab is full of diverse propositions that could satisfy all the needs and preferences of the clients. In this respect, McDonalds is working constantly on expanding the choice of dishes and products in terms of their quality. For instance, more and more menus and meals have specifically been designed for people who take care of their health and take only low-calorie and nutritious breakfasts. Additionally, there are also means for children and people with allergy for certain products. McDonalds is regarded the most popular an...