Hospitality Operations Management || Assignment

RUNNING HEAD: HOSPITALITY OPERATIONS MANAGEMENT
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Hospitality Operations Management
McDonald

Hospitality Operations Management
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Introduction
Operations Management is defined as the process of managing business operations such as
designing, manufacturing, distribution, supply, and services. In the hospitality industry,
operations management help to solve the issue of balancing resource productivity against service
level (Reid and Sanders, 2019). Further, operations management includes facility location,
facility layout, product design, process design, scheduling, production planning, quality control,
time standards, wage payment, capacity planning and forecasting (Slack et.al,2010). In order to
understand these concepts, an organization has been selected that is McDonald's. This report
consists of the importance of speed as a performance indicator, concepts of throughput rate,
efficiency and productivity and impact of new technology on all these aspects for McDonald.
Explain why speed is such an important performance objective for restaurants like
McDonald’s.
The hospitality industry depends on the services provided by businesses to their customers.
McDonald since beginning focused on providing customer services and each restaurant gains a
strong brand image by giving good customer services and quality food. Speed is considered as
the indicator for McDonald because it ensures customer satisfaction. Operations strategies play a
vital role in attaining organizational goals. By using these operation strategies, an organization
maintains and controls all of its operations. McDonald operations strategies based on three
sections, firstly customer satisfaction and customer importance.
Speed is one of the criteria for McDonald that contributes to customer satisfaction. Most of the
customers are happy because of speedy services. McDonald has the policy to serve customers in
minimum time and with the minimum waiting time. The most significant thing on which
McDonald operational department focus is the customer’s satisfaction. Customer satisfaction can
be attained if it serves the customers with good quality food quickly with minimum price. Speed
depends on McDonald process layout or kitchen layout and in order to reduce waiting time and
ensure quick delivery McDonald has a specific type of layout. The process layout as each
process has given proper space and resources in order to ensure high productivity and efficiency
in operations. Along with that, each process is performed by skilled staff members and they
always try to contribute the best of their ability. All this collectively contributes to the delivery

Hospitality Operations Management
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speed and ensure the delivery of food to customers on time. Hence, leads to customer satisfaction
and considered as important performance indicators in restaurants.
Define and explain the concepts of throughput rate, efficiency, and productivity. Explain
why increased speed can improve all of them in the context of McDonald’s.
The throughput rate is defined as the number of flow units that includes money, customers,
services, produced and goods going through the process per unit time (Reid and Sanders, 2019).
For instance, the consumer served in an hour. Further, this indicates the movements of outputs
and inputs within the production process. It is considered as an important parameter in the
operation management of a restaurant. Further, this parameter is related to the efficiency of
operations as higher the throughput level, higher the revenue for the company.
Efficiency indicates the amount of work done in a particular period regardless of completed
products. This is related to the quality of work or generating more output with minimum waste
by using minimum resources and by investing fewer amounts (Hill and Hill, 2017). For instance,
if a staff member in McDonald's is serving 100 customers but out of that 40 customers are
dissatisfied and another employee serving 80 customers but all are satisfied than the most
efficient worker is the second one.
However, productivity is related to cost and linked to efficiency. The productivity is measured by
comparing the performance of employees, distribution channels and locations. For instance; if an
employee in McDonald is serving 90 customers in a month and another employee is serving 120
customers in a month than the second one is more productive (Reid and Sanders, 2019).
In the context of McDonald, efficiency, productivity and throughput can be improved and
dependent on speed. McDonald focuses on quick delivery due to that the company can offer its
products and services to more customers this directly impacts on the productivity as if more
customers served more products are required this leads to higher productivity and more revenues
for the company. Further, by using the same space, people and equipment the company can
provide more goods and services to customers and utilize all its resources to a greater extent.
McDonald focuses on customer satisfaction and in order to attain this emphasis on speed or
quick delivery to its customers. Due to that many aspects such as productivity, efficiency and
throughput level increase as speed related to productivity because quick delivery of products to