McDonalds Fast Food Company: Operations Management

Introduction

The McDonalds Fast Food Company has been in operations for more than two decades. The company is known for fast food products such as burgers, hamburger, fries, and soft drinks among others. McDonald Corporation is incorporated in the United States. It is a world leader in the fast food industry (McDonalds Corporation, 2014). The McDonalds Company has more than 500 restaurants across the world. These restaurants are run as corporations or partners. Key success factors that propels growth of the company are quality and affordable products served quickly. The company has maintained an efficient and quality operations management system. This analytical treatise attempts to explicitly analyze the operations management system of the McDonalds Company.

Operations management system

Product and service design

The company has diverse products and continues to develop new products that appeal to their customers. For instance, the fast food store introduced new products in the year 2013 such as carrot sticks and soft salads. The products are presented in quality containers. The McDonalds operates on the principle of modern fast food restaurant which offers take away services to customers (McDonalds Corporation, 2014).

Quality management

Reviewing operations management system of the McDonalds Company is vital to substantially argue that planning and actualization, which functions simultaneously to cut down cost, are vital components needed to complete the operation modeling. The company has an optimal functionality within a competitive advantage parameter. In order to achieve this, the existing forms of system monitoring are periodically upgraded to introduce multiple operating system models such as quality assurance in operation management that is compatible with tracking and analysis (Heath and Palacher, 2008).

Process and capacity design

The McDonalds Company has a competency measuring system within its strategic design. The company is run as a corporation and is segmented into fast food, drinks, and snacks. These structures form part of a production line for different food products. Decision science in this company is characterized by a consultative structure consisting of the board of director, who are competent and experienced business managers. The company relies heavily on operations management in decision making (Enz, 2009).

Location

The McDonalds’ stores are located in strategic streets across the US and other parts of the world. Since the business targets mobile customers, the business is known for its spacious stores with drive through windows, which can accommodate more than one vehicle at a time. This translates into increased sales volume per day.

Layout design

The McDonald stores are associated with spaciousness and attractive environment. This strategy has enabled the business to stand out as a lively environment for customers who may want to unwind in a welcoming place with great food.

Human resource and job design

The business has a dynamic and highly talented workforce. Through the setting of performance targets for the staff members, the professional attendees always strive and work harder to satisfy the needs of ever growing demands of their customers. Besides, the topological structure of the McDonalds consists of communication and operations management system which help in determining efficient performance and optimal resource use.

The continuum of increasing the value of quality in operation of the hotel’s human resources lies in constant training and motivation. The business offers very competitive salaries to its employees to ensure quality in service delivery to customers. Through its three sixty degree feedback, the business is in a position to micro manage the level of employee satisfaction, performance, and efficiency within the labor provision hierarchy (Brown, 2009).

Supply chain management

Efficiency in the supply chain is very critical in the spheres of quality assurance as part of a company’s operations management strategy. The McDonalds has an automated supply chain management system which ensures smooth flow in the production model of inputs acquisition to distribution of products (Enz, 2009). The system has a flexible module that balances the control systems, structure, and scope to ensure sustainability. In order to achieve a sustainable level of efficiency, the aspect of cost, dependability, speed, quality, and flexibility are incorporated through value delivery, value addition, and creativity (Heath and Palacher, 2008).

Inventory management

The McDonalds business model is organized as a corporation. The business operates in the form of chain stores, which function as separate entities. This has made the business to have higher credibility in the market place. Besides, the business has an easy logistics in acquiring loans from banks and other financial institutions. The concept of safety reflects on vulnerability of an organization to uncertainty or the risk factor and the magnitude of protection in place for the debts of the business. Due to rational and strategic financial management system, the McDonalds Company has remained very competitive and sustainable within its market expansion strategies (McDonalds Corporation, 2014).

Scheduling

The McDonalds Company has a stable scheduling system. As a result, the McDonalds is a fundamental example of a business that has continued to embrace quality operations management model that supports communications culture, efficiency, and optimal resource use in its service delivery to customers.

Maintenance

The maintenance process for the McDonalds is inclusive of the scientific aspects such as a technical process of understanding the operations and proper use of statistical tools. These tools are critical in monitoring and managing the logistics behind the business functions. These variables are properly balanced as indicated in the efficiency of the business process (Heath and Palacher, 2008). The process operates on the periphery of the soft skills involving the timeless vision of organizational principles, defining value of the business, determining requirements, clarifying the vision, building teams, mitigating task, resolving issues, and providing direction in the business logistics.

Analysis

Since the beginning of the McDonalds, the company has always labored to improve on efficiency through cost cutting. This eventually translates into efficiency and increased productivity in terms of optimal resource use for optimal output level with the current profit level of $60 million per annum. Besides, the operation management system at the McDonalds Company acts as the engine that supports the business strategy in order to comprehensively verify rationale supporting current, predicted, and actual results for every introduction of a quality function (McDonalds Corporation, 2014). Specifically, operations systems are employed in the McDonalds Company to monitor and increase productivity at minimal error margins. This is possible because this model of operations management system allows for operations process’ competitiveness as it cut down unnecessary overhead costs from wastes and under-utilization.

The element of cost in the McDonalds’ operations strategy has ensured efficiency in the use of resources to serve the needs of customers. On the other hand, the element of flexibility has made the internal business environment for the business sustainable since it is flexible to the changes in the supply and demand of the production factors. The element of speed is directly related to the output of each employee in the McDonalds. In addition, quality in service delivery among the employees has ensured profit maximization and business growth over the years.

The output of the organization in terms of business goals

It is apparent that the proper matching of soft skills such as team building, organizational effectiveness, leadership, decision making, problem solving, creativity, flexibility, and team building are essential in measuring quality of an operations management design. The success and failure of a business entity are dependent on the effectiveness and quality of the operations management since it determines integration, implementation, and control of a business model.

In order to strike an optimal performance balance, the process of the quality operations management system at the McDonalds has a clear overview of budgeting, objectivity, and scheduling as indicated in the stratified customer management system (McDonalds Corporation, 2014). Besides, the company has an efficient operation management model that simultaneously fuses quality aspects into a unit, which operates independently, but delivers results that are dependent on the success of each process. It is apparent that this company has efficient knowledge and experience in uniqueness of products and services, in terms of their requirement in order to produce high quality fast food products.

The current operations management system

Skills required in supporting a business strategy plan are found in operation management model of the McDonalds Company, which functions as an implementer and driver of business decisions. The McDonalds Company’s operations management system incorporates planning, development, implementation, rediscovery, and discovery. Reflectively, the process captures organization chart, process map, compliance requirements, review structure, and resources employed within a specified period of time. The system has remained efficient due to consultative decision science which has ensured company’s survival for more than two decades. Through implementation of the strategic operations management elements such as speed, cost, flexibility, and quality, the McDonalds has substantially gained from the reliability aspect as compared to its competitors (Kaynak, 2007).

Since clients are able to receive quality, affordable, and flexible services within a shorter time, the company stands to gain from customer satisfaction and referrals. The business is geared to reap maximum benefits from economies of scale due to increased capacity as more customers respond to the referrals.

Existing problems and weaknesses

The aspect of speed manager response rate monitors utilization throughout the production and marketing process. Speed assists in tracking costs and efficiency of labor productivity tools such as machinery, human labor, and optimal use of these aspects at minimal cost. Besides, it tracks externality and internality variables that are dependent on speed of performance, such as efficiency in the period between production and delivery, response by customer, and quality of product released into the market (Kaynak, 2007). Despite having this efficient operations management system, the company has not fully established a mechanism of monitoring progress at micro level and majorly depends on macro auditing in decision making. Thus, it has to deal with the risk of internal fraud and redundancy.

The managers leading production implementation strategies frequently record dismal performance due to lack of the insight to integrate micro decisions alongside the macro decisions made by the company’s board of directors. Therefore, the success of the McDonalds’ operations management system will be dependent on soft artful skills such as creativity and communication in addition to technical aspects such as management principles.

References

Brown, S. (2009). Strategic operations management. New York, NY: Heinemann. Web.

Enz, C. (2009). Concepts and cases of strategic management in hospitality industry. London, UK: John Wiley and Sons. Web.

Heath, R., & Palacher, M. (2008). Strategic Management in fast Food Organizations: A Public Challenge Policy. New York, NY: Sage Books. Web.

Kaynak, H. (2007). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21(4), 405–435. Web.

McDonalds Corporation. (2014). The big taste. Web.