Operation management assignment essay writing help: Operation management initiatives – McDonald
Table of contents
Introduction…………………………………………………………..3
Discussion……………………………………………………………4-5
- Process technology strategy…………………………….5-7
- Capacity building………………………………………7-8
- Organization and system development…………………..8-9
- Lean production……………………………………….10-11
- Performance and improvement strategy…………………11
- Supplier development strategy………………………….11-12
- Improvement and evaluation………………………….12
Conclusion……………………………………………….13
References…………………………………………………14
Introduction
The paper present and describe the all the information of required key aspects area on “Operation management initiatives” that provides in depth descriptive discussions and covers into different sections about the topics. The first section of the paper starts with small introduction that contains and provides information about key elements and all the required topics that needs to discuss within the paper in the below sections and also explain the meaning of concept of operation management and its roles within the organization. After introduction in the further sections, the paper discuss all the key topics in detailed manner as per the requirement that provides complete information and visibility about the operation management and key areas that affect the organization in consecutive manner. At the end in conclusion the paper concludes all the discussions that discuss in the above sections in summarize manner.
This paper focuses on the all the key aspects areas that provides complete information about the operation management using by the selected organization Mc Donald. To describe the whole concept of the management operation this paper selected Mc Donald as organization. The paper address following key topics about the Mc Donald in the area of operational management: Process technology strategy of the Mc Donald that helps to understand the process design and using techniques to complete all the activities in effective and efficient manner, capacity management of the Mc Donald, tools and techniques to manage the organization in terms of information technology, performance improvement strategies and supplier development strategies. All the key topics provide completed understanding and knowledge of the operational management of the Mc Donald.
Mc Donald established by Ray Kroc that known for its efficient services that cater its services in the area of fast food that have world’s largest fast food restaurant chain with serves around 47 million people per day. Mc Donald has more than 33,000 restaurants with 119 countries that cater their services globally successfully. Many secondary sources and research shows that the fast food industry growing rapidly due to highly competitive and busy life. Mc Donald also developed numerous strategies to addresses the issues and challenges that are related to the health consciousness. To addresses all these issues the Mc Donald introduced highly competitive affordable price, great services and healthy menu to cater its customers. Mc Donald also use identical product services concept in all the outlets that increase and help in the area of trust building. The competitive strategies, Quality management tools and methods, raw materials, forecasting, effective supply chain, and efficient operation management techniques helps to retain their position in the market successfully. All the above parameters created big brand as Mc Donald for its customers.
Operational management is a systematic approach, practices, techniques that involves planning, scheduling, controlling and other key activities to provides and manage the other interdependent activities of the goods or services that help to transform the inputs into the finished goods or services. In other word the operational management techniques helps to understand the concepts of designing, engineering and management related information systems that helps in high quality management so as it also creates the better functions and better operations.
Discussion
To identify and to analyze the operations management initiatives in the specific organization, the chosen organization is related with the service industry and is importantly known as McDonalds in front of the people. In terms of various operations management practices, this paper will deal with certain strategies such as:-
Operation management deals with the management of processes and also they focuses on producing the most effective and the most distributive products as well as services. The overall activities of this management are known as the creation of the product and the development of the product, its production as well as its distribution.
These activities importantly deal with the product as well as service management. It includes purchases, inventory control, storage and logistics and other important evaluations. Thus this deals with high effectiveness and high efficiency of the processes. McDonald’s corporation is the world’s largest chain for the fast food restaurants and it also serves around 47 million people every day. Thus it is also known as a big brand. Operation management can be defined as planning, scheduling, controlling and other activities of the goods or services that help to transform the inputs into the finished goods or services. This also helps in understanding the concepts of designing, engineering and management related information systems that helps in high quality management so as it also creates the better functions and better operations.
This is also concerned with the most efficient use of resources in an organization that provides the finished goods to fulfill the needs of the customer and to deliver the service in the timely manner and the cost effective manner.
This is also related to the strategy of the organization and this also creates the better framework for the relationship between management and also the strategy of the organization. When dealing about the specific organization, McDonald’s Corporation is well known brand in the world’s largest fast food chain restaurants. This restaurant was opened in the year 1940 with the principles of fast food service restaurant. Thus there are different operations that maintain the proper relationship and helps in the decisions of key operations along with the strategies within the organization. Therefore, there are number of operations that help in the overall strategies and goals of the organization. (Bicheno, 2011)
In this organization, the company believes in the fast service and fast network area thus they focuses on better responsive system. When someone visits McDonald’s, they might have experienced that once they ordered the food, the food is at a counter.
- 1. PROCESS TECHNOLOGY STRATEGY
McDonalds’s is one of the largest fast food companies in the whole world and they continue their path with high success. They encourage their employees and to do the good job and also they promotes their employees within the organization. Thus they also offer several scholarships as well as high education. There are different ways that they use in terms of technological advances which raises the productivity level and increases the services in the organization. This is a very centralized company with the better use of technology.
McDonald’s corporation has focused on the revolution ways to use the technology and to increase the high amount of productivity. They were fascinating with the advanced technologies and also with the department of information technology. The most development has been the installation of Wi-Fi in their restaurants globally. This way, they introduced the young people with the more energetic and enthusiastic mind set along with the technical skills into their restaurants. This made them introduce new systems of technology in the process. Therefore the company made the electronic payment model with the help of these skilled and talented people that really shortened the time and the ordering time, processing times as well as the time of preparation and the payment. Today McDonald’s uses the 100% of biodiesel technology that reduces the carbon emissions and helps in making the deliveries. McDonald’s also uses Nintendo DS system for the activity of e-learning tools and for recruiting the new staff as well as employees in not less than 3000 restaurants. These systems also helped in training and recruiting them on the basis of performance. Thus the new usage of new technologies creates the learning experience. This way, the technology also helps in providing better application systems and development as well as better technology with high quality assurance process. They also uses the framework of technology that provides the full range of services to the server support, networking operations, data center facilities management and also the network related functions so as messaging, end to end applications that perform the improved diagnosis and monitoring of performance related issues across the core technology. This also helps to support the development, testing and high quality, other process of assurance.
McDonald’s also uses OLAP i.e. online analytical processing helps in the manipulation of information to support the decision making activities. The use of data warehouse also helps in utilizing the software by Oracle, Micro strategy and ACS. McDonald’s also uses the data marts and other software tools and technologies that help in using the information and SQL. This way the company meets with the customer requirements and also focuses on the efficiency as well as production flexibility.
The process strategies of this organization are complying with four basic strategies such as process focus, repetitive focus, product focus and mass customization. The facilities are organized well in the form of specific activities and processes. This helps in the general purpose of equipment and skilled personnel. This also creates the high level of product flexibility and this involves high amount of costs so as the utilization of the less equipment. This also helps to make planning and scheduling the challenge. These facilities are organized with the assembly lines; these are characterized with the help of modules and different parts as well as assemblies. This has less flexibility and it is very efficient. These facilities are organized with product and carries high volume with the help of low variety of products. This has long, continuous runs of production and it enables the efficient processes. Thus it requires generally the less skilled labors and also it has low variable cost. It focuses on continuous work flow and also it is available in different sizes, shapes as well as packaging. The rapid use of products with the help of low cost production helps McDonald’s to satisfy and to increase the unique needs and the unique desires of the customer. This also combines the flexibility so as deals with the high efficiency of the product. This way, it improves the services and also offers the customers with great service quality and high designs.
Thus the layout of the service process helps in the product, exposure, education of the customer so as deals with the enhancement of product. Thus this also creates the better recruiting and training facilities so as it meets with the impacts of flexibility. There is an also better automatic identification system and machine technology that helps in the better control of the process and better vision of the system. There are different technologies in the service such as the financial services like debit cards, electronic funds transfer and internet stock trading. This involves the online patient monitoring and also the organization deals with the online medical information systems so as McDonald’s fundamental thinking of business is to deal with the improvements in the performance. The process layout describes about the indoor seating facilities, they drives through growth and innovation, they also focuses on the self-service kiosks and McDonald’s is the seventh major largest innovation and redesigning the 30000 outlets around the world. This organization has three separate dining areas and the company also focuses on comfortable chairs as well as Wi-Fi connections. The company focuses on the facility layout that is the important source of competitive advantage. Thus the major goal and objective of this organization is to develop the cost effective layout that helps to meet with the needs of the organization’s competition. This also creates the higher utilization of space, people as well as equipment. They also focus on improved flow of information and materials as well as people. This also focuses on improvements of employee morale and safer working conditions. This also focused on the improved interaction and the conversation of the customers. Thus the process layout decisions of McDonald’s deal with high amount of flexibility. Thus the different types of layout for this organization are as follows:-
The layout of office: The position of the employees, the space and the equipments, this helps to move the information from one side to another.
Retail outlet: This helps in allocating the shelf space and this responds to the behavior of the customer.
The layout of the warehouse: This helps to address the trade-offs between the handling of the space as well as the materials. (Christensen, 2007)
- 2. CAPACITY MANAGEMENT
Capacity is creating the maximum capability to produce and this is defined in terms of the units of the output so as it is affected by the mix of the products and services, the technology and the allocation of the resources. This is the long term strategic decision that helps in the overall resources, it affects the lead times of the product, it deals with the better customer responsiveness and it also creates the ability of the firm to compete in the global and the competitive world.
This is the second most important decision that helps in understanding the capacity planning of the company. Thus it helps to control and to deal with the effective capacity of the operations. This way, it respond to the demands and the operation managers focuses on the short-term, medium-term and long-term decisions of the capacity. This also is referred to the aggregate planning and control because it is important and is really necessary to deal with the various types of output from the operation. So in case of McDonald’s, the operation managers need to set the high capacity of the preparation of the food items and also it responds in a very quick manner. Thus it quickly meets the demand of the customers and makes sure that it has enough ingredients to prepare the food items and also to deal with the whole process. The layout designing is very important in McDonald’s and it is the important part of the operation. This organization ensures about the proper layout in the kitchen equipments so as it also helps to ensure the high quality and the best food in less amount of time. This way, the company designs the cost of production and it depends on the proper layout.
- 3. ORGANIZATION AND SYSTEMS DEVELOPMENT (Planning and control, JIT)
After the greater development of product, the business needs to develop the process for making and for supporting the product. The organization need to identify the appropriate process and this could also be achieved with the help of required levels of output. This also considers the traditional methods and computing, advancement of technologies so as computing and other managerial expertise. So in case of McDonald’s, the operation manager should develop and should establish the process of food items and this helps to maintain the high speed and high quality of the food. This also helps to design the health safety and other hygiene related solutions for consideration. This also brings high pace, perfection and quality in the product. With the high popularity of the fast food chains in the worldwide presence, the inventory management in the company follows the just in time delivery system of the inventory management.
JIT systems help the customers to place the orders. McDonald’s doesn’t begin to cook or to preheat the stuff till they receive the order from the customers. This organization had the different concept and different approach of the inventory management and they used to keep the foods under the lamps till they could be sold. Today McDonald’s moved to the JIT system of inventory management that helps in making the technology and to enable them with fast and easy ordering with respect to the better inventory.
This process and planning helped billions of customers to get maximum possible satisfaction and to achieve the best possibilities. This also helps the company to deal with the proper inventory management and to provide maximum customer satisfaction with this process. This makes the customer not to wait in the short period and this is the very huge factor that creates the better system of inventory management. Thus the customers are happy and this leads to huge reduction in the costs for the McDonald’s and this made the success of the just in time concept.
This improves the quality of the food and the improved quality of food made the fresh dealings with the customer and this helps with maximum satisfaction. There is no way to lead through the customer satisfaction and also there are increased sales. Higher levels of customer satisfaction lead to great retention and increased sales. This way, the customer resists with high level of brands and maximum levels of satisfaction. McDonald’s also deals with special orders for customers and they introduce the JIT systems with better customer service. This helps the company to maintain the inventory. The holding costs for the raw materials also help with the material such as bread, cheese, and chicken in a good amount of time in a proper cost. They maintained the high inventory and this leads them to the fast orders for the unsold foods and also in the low cost. (Mediawiley.com, 2009)
McDonald’s does not needed to procure the raw materials in the bulk advances and this ensures the fresh as well as high quality raw materials all the time. The use of just in time concept will help to deal with the better markets. This also helps to lower the operating costs that make the concept of just in time very feasible solutions. This also led to reduce the lead times and to deal with the safety stocks. Thus it provides an attractive and the strong mechanism to analyze and to deal with the risks. This way, JIT has become the strong option and the good concept of handling the bulk orders in the organization and by using the proper system of JIT.
- 4. LEAN PRODUCTION
Lean production is a methodology or concept that aiming to reduce the wastage in the form of overproduction, manage the lead time that involves the manufacture and cater the products and services in effective and efficient manner, reduce the defects and provide the core competitiveness to the organization. This concept introduced and established by the Toyota in Japan in the 1950s. With time the significance of the lean production application and concept increased in western culture and companies adopted this system. In conclude the Lean production is characterized by the concept of lean operations with following further characteristics inventory management, quality management, reduce the wastage and errors, just in time approach high commitment human resource policies, team working and sound relationship with suppliers. (McDonalds.com, 2012)
Mc Donald known for its efficiency services that not compromising with quality. Mc Donald also has mini manufacturing unit that prepare various components for the final products with the help of materials. There is also available assemble area or back room kitchen where all the materials assemble and fulfill the customers’ requirements. Within the Lean production concept Mc Donald using following core fundamentals:
– Standardization: The entire restaurant that have situated in different locations cater standard product in terms of taste, quality and product characteristics.
– A standard production process: To assemble the all the materials to develop the final product approach is same in all the outlets.
– Just in time production concept: Final product ready as per the customers’ order and there are very few of product be ready in stock.
– Lean production: Concept of backroom kitchen that assemble all the material for final product in effective and efficient manner.
– Flexible and multitask workforces (Thomas, 2003)
Mc Donald used all the techniques to maintain its effective and efficient services, standard products quality and many other key things present an example of lean production concept. (qfinance.com, 2012)
The finance and annual report of McDonalds’ describes about the increase in the sales and the growth. The company increased the sales of about 5% in the year 2011 when compared to 2010 in country such as US. The margins also increased of about 14$ when compared to the figures of 2010 and 2011. Also there were increases in the number of restaurants. The expenses decreased by 2%. (Mcdonalds.com, 2011)
- 5. PERFORMANCE AND IMPROVEMENT STARTEGY
Quality management deals with maintaining the high quality of goods and this contains meeting the specific requirements as well as it helps in dealing with the better focus on image and reputation of the industry. Thus it is important to manage the high quality and better services in the organization that creates the number of practices such as high quality and strong procedures etc. Quality in McDonald is very important because of different reasons such as to meet the legal requirements of the high quality of the food, the second requirement is to keep the strong concept of image and reputation so that there will be different practices for high quality and good food. (Jain, 2011)
Quality is the totality of the features and services that increases the characteristics and satisfies the needs of an individual. The use of quality control creates are implemented in the organization with the help of better work on time, the employees must follow the procedure of safe, clean and better food. They need to be dressed neatly and also they are required to focus on the clean concept and clean attitudes. Thus they receive safe food and they should wash their hands often to remain the standards of quality as well as cleanliness. Thus the employee should follow the standard operational procedures and also they should rely on teamwork and high energy to get the work done on a successful manner. Thus they should keep always smiling when they serves to the customers because this really satisfies the customers. The organization maintains quality by believing on the strategy that the meat and fries are properly fried. The use of vegetables should be done after properly washing them. (Jain, 2012)
The restaurants are always clean, tidy and sparkling. The food that delivers is fast, accurate and it helps with friendly service. Thus McDonald’s pledges to its customers and also represents the 100% commitment with safe and the fast delivery; this also continuously can improve high quality and service. This also encourages the standards of the industry and the company also offers continuous and improved technology with better services. This helps them to maintain the close network between the members on food quality and new developments. (Earley, 2004)
- 6. SUPPLIER DEVELOPMENT STRATEGY
The supplier development strategy in McDonald’s is that the organization gets the right foods with right services and also they need the supply at the right time. To manage the process and the system in an efficient manner, there is a requirement of strong relationship with the customers and suppliers because this only helps them to control the inventory and to deal with the forecasting demands so as the constant demand of the product. Thus they get the raw materials at the right time in the right quantity within the acceptable cost. The loyalty of the suppliers helps to improve the product quality. It also helps to improve the classic food items in the form of better innovation and their supplier also have technological expertise with respect to new innovations in marketing. Thus they also focuses on the more efficient fast food industry thus they reduced the managing costs effectively. (Lyne & James, 2012)
- 7. EVALUATION
McDonald’s did very well in terms of its strategies, in terms of quality and ingredients etc. This company really played the important role of safe and high quality food with respect to better affordability and better convenience. McDonald’s also focused on improved strategies in terms of fast delivery, just in time concept introduction, better performance with the help of new and advanced technology and the use of software’s helped the company to meet with the level of great services and also to meet with the customer satisfaction. The company also maintained the strong relationship with its suppliers for better quality raw materials, for better quality at the right time to deal with the high quality. This way, the company focused on different steps and strategies to meet with the important goals and to achieve high levels of success. The company managed well in capacity planning and organization systems and design. The company was weak really in terms of process technology so they introduced the new systems and technology such as Wi-Fi and other important approaches like Just in time inventory approaches and many more to deal with the business effectively that also proved the business with great values of success. They were very good in supplier management strategy. (Burns, 2012)
- 8. CONCLUSION
To conclude, McDonalds’ dealt with the operation management for very important reasons to achieve the goals and strategies of the organization.
They maintained the strong relationship with their customers and suppliers. Thus they also maintained the overall strategies in the organization that contributed great success in the organization. This also helped the organization to increase the competitive advantage and the competitive edge. Thus the planning and process in the organization deals with the competitive advantage and also this helps to effectively deals with the business as well as it will meet the strategies of the organization. Thus the company that has been chosen is dealing with the overall goals very effectively and efficiently with respect to proper success. (Valuestreamguru.com, 2012)
The company managed well in capacity planning and organization systems and design. The company was weak really in terms of process technology so they introduced the new systems and technology such as Wi-Fi and other important approaches like Just in time inventory approaches and many more to deal with the business effectively that also proved the business with great values of success. They were very good in supplier management strategy.
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