Report on Operations Management in McDonalds
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Added on 2020-07-22
Report on Operations Management in McDonalds
Added on 2020-07-22
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Operations management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Operation management in McDonalds...................................................................................1Operational Strategies ...........................................................................................................2Critical analysis on Make/ buy decision.................................................................................3Working model of a McDonald’s restaurant: .......................................................................5Critical analysis on Technological strategies ........................................................................63-D of operational strategy process........................................................................................8Improvement in the Operations outcomes due to buy/do decision and use of technology. ..8RECOMMENDATIONS...............................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONOperation management is considered as essential department of organization that playskey role in producing goods and services. There is significant impact on various activities oforganization. Operation management is mainly dependent on the operating system whereintegration of resources is done with goods and services (Chandra and Wella, 2017). It is theintegration of the goods and services which makes the management part to be more interestingand transformational. For any organization, there are two main objectives that are performed bythis department that is customer services and resources utilization. All the activities of theoperational management are performed by Operation’s manager and on their decision resourcesutilization and customer services for their satisfaction are provided. In order to provide desiredutilities to the customer and to fulfill the organizational goals they convert the input rawresources into output effective, efficient and adoptive products. There are various activities andfunction that are performed by operational management such as location of facilities, product andprocess design, plant layouts and material handling, material and maintenance management,production and planning control and at last to assist the quality of the products (Osei-Kyei and et.al., 2017). Following report is about the operational management in McDonald’s which is aninternational fast food company expended over many countries. Here critical analysis is done on the operational management of the firm whereunderstanding and application of make/ buy and technology strategy in McDonalds is shown. Operation management in McDonaldsAccording to Azcárate, Mallor and Mateo, (2017) operation management in McDonald iscompleted by top management. The instruction and policies are implemented by all the branchesas-well-as restaurants of the company. To achieve the organizational goals, they have operationmanagers that perform all the operational activities for controlling and maintaining the rawresources. The company is internationally expanded and serves fast food to over 70 millionpeople across world (Alrhaimi and Mugableh, 2017). They are expended over 100 countries andhave around 36900 restaurants. It started in 1955, and now they have 1.5 million employees andhas a revenue collection of US$24.622 billion. Being the largest fast food restaurant chain thereare 10 major decision performed by the operations management. They develop strategies overvarious areas and their restaurants coordinate equally to serve for better productivity andperformance. 1
Effective operational management helps them to provide tough competition towards firmlike KFC, Subway and Wendy’s (Alrhaimi and Mugableh, 2017). Moreover, it influences theirfinance, marketing and production. In the organization it is used for managing inventory,optimum allocation of resources and reducing costs. They have reduced their all theirunnecessary activities of Global Fast Food Supplier. For the optical allocation of resources, theyhave used different tools, mathematical and statistical techniques such as linear integration andtransportation, etc. Following are the mission and vision statement of the company: Their brand vision is to the best quick serve and service restaurant experience where theywanted to provide cleanliness, outstanding quality, values based services and zeal customerexperience so that every person entering the restaurants have smile (Mission & Vision - Analysisof McDonald's. 2017). Additionally, they mission statement is to provide great value for money, outstandingservices and top-quality products so that firms become customers first choices (Mission & Vision- Analysis of McDonald's. 2017). As McDonald have major objective is to deliver high quality of product and services tothe customer and attract them in the large manner. Thus, for attain this objective, it is veryimportant to cited venture to understand the actual needs and wants of the customers. In order todelivers effective services and product to the customer supply chain management is verysignificant aspect in the company. It is a process under which flow of good and servicesincluded. In a general meaning it can be said that it is a procedure of movement, storage of rawmaterial, work process of inventory and finished good. With help of supply chain management,company can easily transfer the commodity and services from manufacturer to final customers.McDonald supply chain is based on the three logical drivers that are inventory, transportationand facilities. In this aspect includes raw material, work in progress and finished good within thesupply chain. In the dubai distributors keep and save the stock for the 1 month and 45 days. Inthe other cities of United Arab Emirates there are 2 ware houses. On the other hand in thecontext of transportation, inventory moving from the place to place. Cited venture usedrefrigerated vans under which it maintains a good fleet for containers. It transferring containerfrom port to their ware house. In addition to this, it has also reefer express fleet which they usefor transferring food ingredient to their retail outlet in order to keep good food at 22 degreetemperature. In this aspect, Dubai delivers all goods to cited venture from the port of their ware2
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