Essay about Operations Management: McDonald's Competitive Advantage
3016 Words13 Pages
Table of Contents
Executive Summary 2
About McDonald’s 4
Process of McDonalds 4
Operations management 5
Operations managers 5
Operation strategy of McDonald’s 5
Pricing strategies of McDonald's 6
Innovation at McDonald's to improve operations and services 7
Inventory management 8
The Just-in-Time (JIT) Approach 9
Just- in-Time (JIT) Approach in McDonald’s 9
Advantages and benefits of JIT approach 10
Capacity management 11
Capacity strategies 11
McDonald's capacity strategy 11
Quality management 12
Quality management strategies 12
McDonald’s quality management 12
Packaging quality 13
Interior design 14
Quality service abilities 14
Employee training 15
Continuous improvement 15
Customer…show more content…
Every restaurant has operations manager who control and maintains all operational activities within the organization which helps to achieve organizational goals.
The purpose of the project is to know how operations such as quality, inventory, capacity and lean synchronization are controlled and maintained in fast food sector, especially in McDonald's and how are they implemented. About McDonald’s
McDonald’s is a leading global food service retailer with more than 35,000 restaurants serving nearly 70 million people across 100 countries every day. It was found in 1940 and it was the first fast food industry in the world market. It has 1.8 million employees and 80% of the restaurants are franchised. The main revenue of McDonald’s is generated from rent, royalties and fees paid by the franchisees.
McDonald’s revenue also includes sales done by the company operated restaurants. In 2012 company had annual revenue of $27.5 billion and profits of $5.5 billion.
McDonald’s sells hamburgers, cheeseburgers, and chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. McDonalds headquarter is located in Oak Brook, Illinois, United States America (USA).
In 1993 McDonald’s sold more than 100 billion hamburgers. In October 2012 monthly sales of McDonald’s fell for the first time in nine years. McDonald’s has its keen interest in attracting its customers by introducing new
I. Goods and service design. Harmonizing to Henzer ( 2004 ) . design of goods and design defines much of the transmutation procedure. The factors of cost. quality and human resources must be made during the phase. Operation direction of merchandise and services is besides different because due to different characteristic and touchable / intangible characteristic.
II. Quality. Customer has a really high quality criterion presents and operation direction determination in quality must be clear and rigorous for its members to understand and follow. It must put a quality. criterion and operating process to run into customers’ high outlook.
III. Procedure and capacity design. Fabrication of physical merchandises may hold higher importance on procedure and capacity design than services operation. Operation direction ( merchandise ) should make up one’s mind what procedure it. what type of engineering and to what extent. human resources. quality and care that determines its basic cost construction. Services operation determination on this country is much simpler and it can find by clients who straight involved in the procedure. For illustration. client will inquire seamster to plan specific manner apparels. Capacity design issue is critical for services because it will seek to cut down waiting clip and avoid doomed of gross revenues due to deficient capacity. For fabricating capacity design is based on houses fiscal capableness. prognosis for future and market demand.
IV. Location can be an country for operation direction to make up one’s mind and with globalisation of concern. operation directors excessively must believe planetary. For physical goods. location choice can be determined by pools of qualified human resources. engineering. natural stuff. entree to market and authorities policy. For services as it is direct to clients. the location is determined by market handiness or near to client as possible.
V. Layout design. Material flow. process choice engineering used. capacity needs. workers demands. stock list demand. and capital will act upon the determination for layout design. For services such as hotels. beside capacity needs layout besides will heighten its properties and characteristics to the clients.
VI. Human Resources and Job Design – Employees is the built-in portion in the entire system design. Operation direction must put a policy to put labour criterions to ease passage of accomplishments. betterment of cognition. accomplishments and abilities ( KSA ) . construct a balance work and life quality in an effectual cost mark. For services one excess country operation direction should touch. which is clients relationship that they are covering straight.
VII. Supply Chain Management – Decisions that have to take topographic point of what to bring forth. what stuff to purchase. from where. how is the cost and how is the bringing from provider to the concluding terminal clients in on-time bringing and lower limit cost possible. It is more critical in production of goods than services.
VIII. Inventory – Decisions on how and where the stock list degree to maintain long term clients satisfaction. providers. material handiness for non to interrupt the production. human resources needed for this intent and of import the keeping cost from fiscal position. Goods production are more concern because maker may maintain natural stuff. in advancement work order and concluding goods while services is non critical as it is straight produce and consume at the same time.
IX. Scheduling – Efficient manner of allotment. control and direction of stuffs. capital goods and human resources to expeditiously bring forth the concluding goods from the input available. Agendas are more formal in goods production with short. medium and long term planning to suit clients demand. For services the demand is more direct and volatile and frequently concern on human resources and KSA handiness to run into current clients demands.
Ten. Maintenance – Decision must be made sing the coveted degree of dependability. stableness and systems must be established by direction to keep that dependability and stableness.
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