Operation Management: Food Production Process in Restaurant- McDonald’s

Running head: OPERATION MANAGEMENT
Operation Management: Food Production Process in Restaurant- McDonald’s
Name of the Student:
Name of the University:

1OPERATION MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
1.0 Critical evaluation of inventories and assets in the production system are currently
managed.....................................................................................................................................2
2.0 Food production workflow of McDonald’s.........................................................................3
3.0 Food production workflow problems...................................................................................6
4.0 Lean approach utilized in the production system to reduce failings....................................8
5.0 Three findings discussed the extent to which the lean approach may assist the production
system.......................................................................................................................................11
6.0 Conclusion..........................................................................................................................12
7.0 Recommendations..............................................................................................................13
References................................................................................................................................14

2OPERATION MANAGEMENT
Introduction
For conducting this assignment work, the current food production process in a fast food
restaurant, McDonald's will be studied. In this study, the critical operations of the food
production process will be discussed by presenting logical operational flow diagram. In order
to make improvement in the business performance and increase in business efficiency,
current food production system of the restaurant will be analyzed by applying concepts of
lean approaches.
1.0 Critical evaluation of inventories and assets in the production system
are currently managed
The selected organization in this business case is McDonald's, a fast food restaurant in the
US. The organization started by two of brothers, Dick and Mac McDonald. They had started
their first restaurant in California in the year 1940 (Corporate.mcdonalds, 2016). The primary
objective of this organization is to serve food at a faster pace that will be value for money
plus proper taste and quality. For this study, the role of the operation manager is identified as
an asset in the food production system and discussed how those resources are currently
operated in business operations.
Over the last nine of financial years, revenue of McDonald's was reached its peak at 28.11
billion U.S. dollars. There is a decrease in revenue on an annual basis over the last three
years, hitting about 24.62 billion U.S. dollars in the time 2016 (Corporate.mcdonalds, 2016).
Payne-Palacio (2016) stated that the current system of McDonald's is based on maximize
efficiency to lower the customer cost, increase in the entire organization's production and
utilize economic models. McDonald's has a self-order kiosk machine such that the customer
should order the food and only have to pick it up. Therefore, the company is cutting its labour
cost and let the customers work for their orders. In this way, McDonald's raises its minimum
wage by $1 over the local mandated minimum pay for the company-owned restaurants. This
raise is not affected by franchise-owned restaurants. Raise in $1 did not bring the minimum
wage of the company to $15 per hour level. Selling in the restaurant released in the least 13
months is raised to 6% internationally in the past quarter, which makes the company as a next
ninth period of the comparable store's sales growth (Corporate.mcdonalds, 2016).

3OPERATION MANAGEMENT
2.0 Food production workflow of McDonald’s
The organization is shedding new lights on heavily criticized sourcing of food plus
food processing practices. In the face of growth in customer demands for transparency, the
organization provides a good burger to their customers as per their expectations. The
organization consisted of right materials and suppliers for their restaurants (Slack, Chambers
and Johnson, 2007). They have paper and boxes to enfold the burgers, cups for the soda, hot
beverages plus straws, bags to take the food items, cutlery and other items. The role of the
operation manager is to work on financial success for the outlet as well as maintain a better
reputation of the company. The operation manager ensured that they served a higher quality
of food, drinks and provided better customer services. It helps the manager to better flow of
their food business operations throughout the restaurant, unable to plan the cash flow and
control of stockby launching a mobile app (Amorim et al. 2016). McDonald’s launched a
new mobile application which attracts more customers. The customers use the application
and buy food through online mode by the use of attractive coupons. This application also
provides nutrition information which will help to make healthier purchases. Mobile ordering
is an advanced food technology application which can mark food production
developmentwell-organized. McDonald's creates a reward loop for the customers which keep
the guests to come back. It started with free food after ordering a certain amount of money. It
encourages customers to order food through a mobile application.
The current food production process of McDonald is that their food items such as
beef, chicken and meets are being imported and delivered from different food delivery
partnership to the restaurant. McDonald’s is partnering with Uber Eats where the biggest
burger chain started testing delivery to 200 locations last year. Due to this partnership,
delivery is available to 5000 out of chain 37000 locations. UberEats is said to take 30% of the
food delivery transaction such that they can plan for future growth. The company is changing
the perception of food delivery around the world (Wang et al. 2016). Through these growing
partnerships, UberEats is helping the restaurants to scale the business as well as reach new
customers. The restaurants are offering delivery; now it is accounted for 10% of the sales of
food in locations. Therefore, it is seen that the delivery check size of McDonald's is 50%
higher than in-store check size.
McDonald's store has been updated with modern interiors as well as Wi-Fi, but there
are significant changes in the table services. The customers can order at cashiers and digital
kiosks in which they can make an order. In the UK, new restaurants result in sales growth of