OPERATIONS MANAGEMENT

OF MC DONALD COMPANY

By : DIASTIN YUTIKA

EXECUTIVE SUMMARY

Operations Management Strategies in McDonalds are being made by top management. These strategies are implements in all branches under instructions of top management, which are distributed to all branches in written form. So there are operations mangers in all branches that control all operational activities. These strategies impacts positively and helps to achieve the goals.

QUALITY MANAGEMENT STRATEGIES

1. Design of goods and services2. Managing quality3. Process strate

4. Location strategy5. Layout6. Human resource7. Supply chain management

8. Inventory management 9. Scheduling 10. Maintenance

FEATURES OF QUALITY MANAGEMENT STRATEGIES

Product Quality

Trainning

Continous Improvement

Customer Satisfaction

INTRODUCTION TO COMPANY McDonald's a Global Phenomenon Formed in 1954, McDonald's brand is

the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries each day. The rich history began with founder Ray Kroc's strong foundation.

McDonald's vision and commitment of our talented executives is to keep the shine on McDonald's arches for years to come.

ORGANIZATIONAL MANAGEMENT

Top Manageme

nt

Middle Management

Lower Management

TOP MANAGEMENT CEO Jim Skinner President of McDonald’s North America Ralph

Alvarez Executive Vice President and Chief Operating

Officer : Don Thompson

TOP MANAGEMENT

Ralph Alvarez as Presidentof McDonald’s North America

responsible for 15,000 restaurants in the U.S. and Canada

Promoted to highest level, decided to address the issue of career development.

TOP MANAGEMENT

Don Thompson as Executive Vise President and Chief Operating Officer McDonald USA

Responsible for restaurant operations in the U.S., with more than 13,800 restaurants in three divisions, along with the Restaurant Systems, U.S. Support, and Strategy and Planning functions.

Served as Executive Vise President and Innovation Orchestration Leader, McDonald’s restaurant Solution Group. In this capacity, he and his team were responsible for McD innovation pipeline.

MIDDLE MANAGEMENT

Representing several functions, locations, and levels, who were selected based on their interest and track record in development, and their credibility among peers. The group of 25 included 20 field managers and directors collaborating with five corporate human resources and training staff.

McDonald's recognized that middle management was integral to driving the business, both short and long term. The employees in these roles provide direction, guidance, quality control, training, site selection and construction management, restaurant management expertise, and support for over 13,700 franchisee and company-owned restaurants across the United States

LOWER MANAGEMENT

Manager is responsible for completing the plans have been set by managers is higher. At this level also have the expertise of technical expertise, that expertise which includes procedures, techniques, knowledge and expertise in specialized fields. For example: the supervisor / production supervisor, foreman.

OPERATIONS MANAGEMENT IN MCDONALDOperations Decision

Process

Quality

Capacity

Inventory

PROCESS

Good Service Design The tangible goods and intangible services

are provided by McDonalds and the

homogeneity is maintained globally. The goods and services are provided on in a package that’s why the company lies in 50% in goods production side and 50% in service providers

PROCESS Strategies a)Advertisement:

McDonalds implements this strategy by advertising on TV,newspapers,

brochure. b)Customers

Relationship: convince the people and customers about services.

 

Results 1.Inside the McDonalds: a)Achieving Objectives:

it’s earns profit, customers are satisfying, and sharing in revenue growth of the country.

b)Business Development2. Outside the

Organization: Improving social life

PROCESS

Layout Design Strategies a)Exterior: McDonalds sets to save time, satisfy

their customers, comfortable environment for both employees and customers.

b)Interior: internationallyResults a)Brand Recognition: Homogeneity in layout

design and franchise settings strikes a clear brand image.

b)Customer Satisfaction: Through a universal image

QUALITY

McDonalds maintains the following quality rules:

Maintaining strict standards of quality and safety, so that the customers can feel comfortable

Serving a variety of nutritious, high-quality food products and portion sizes,

Providing nutrition information to help customers make smart choices.

Informing the customers about energy balance and fun.

HUMAN RESOURCES Being partially in pure services and goods production

sector, McDonalds exercises a good strategy for its human resources e.g.

Right Person on Right Job: McDonalds allocates its human resource in according to the abilities, qualifications and experiences of employees.

Trainings: McDonalds provide training opportunities for its employees who need training in a particular area.

Separate Departments for Different Functions Proper Utilization of Resources: As there are many

experts in different areas, so they use all available resources and opportunities properly. Competency

CAPACITY Location SelectionGenerally it has been observed that McDonald follows

the different locations and outlets according to the specific area.

Strategies McDonalds makes and implement its location strategy in

following way:

a)Business Areas: They open their branches in business areas where they target the corporate people and the working class to dine in and have their timeout for breakfast and lunch.

b)Play Lands and Shopping Areas: They try to introduce their services according to target customers

Results

a)Convenience: Customers feel comfort ability when a branch is in near vicinity to their work place.

b)Customer Gaining: Due to the good

environment the company has an ability to gain their customers to their locations.

CAPACITY

Supply Chain Management These strategies determine what is to be

made and what is to be purchased. So McDonalds follow these strategies and have

a just-in-time inventory system. Which means that the orders are placed as the raw material comes to near finish. McDonalds maintain no inventory levels for perishable goods

CAPACITY

Suppliers The major suppliers of McDonald’s in

Pakistan are as follows: Dawn Breads for Buns Choudhry Dairy Limited for dairy products Walls Ice Cream Coca-Cola Ltd. for drinks Pakages for packing

CAPACITY

MAINTANENCE

They train their employees of all departments regarding their job, so they can handle their customer and work as well which helps to maintain their status quotas. McDonalds is among the companies which are partially involved in the production of goods and services, so a proper maintenance system within the organization strengthens the goodwill and reputation

TOTAL QUALITY MANAGEMENT

TrainningIn McDonalds nearly every

employee is given training for its work. e.g. the cashier is trained for

all the cash handling, floor manager is polished against his

degree in hotel management. And all the other staff is trained

accordingly.

TOTAL QUALITY MANAGEMENT

Customer Satisfaction

No room left for customer dissatisfaction

improved quality

standards

well trained employees

overall service

environment is

improved

It’s AllFINISH

THANK’S FOR THE ATTENTION