OPERATIONS MANAGEMENT | EXECUTIVE SUMMARY

Running Head: Operations Management
Operations Management
Name of the Student:
Name of the University:
Author’s Note

1OPERATIONS MANAGEMENT
EXECUTIVE SUMMARY
The following assignment is based on the case study of McDonalds. The report is
classified o the operational function of the management and it’s functioning in the areas of
inventory, supply chain, customer satisfaction and other aspects. The operational system of
McDonald’s caters to a form of partnership with the franchise and the suppliers with an intention
to improve the operational management innovatively and assist in launching new products. The
report provides a study of McDonald’s and its operational management, process, total quality
management which is imbedded in different process that provides its customers at the
acceptances cost.

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Table of Contents
Introduction......................................................................................................................................2
Operation contribution of McDonald’s.......................................................................................3
McDonald’s competitive advantage:...........................................................................................4
Quality management....................................................................................................................4
Supply chain management...........................................................................................................5
Process design..............................................................................................................................6
Inventory and maintenance..........................................................................................................7
McDonald’s operational strategy.................................................................................................8
Eliminating waste........................................................................................................................8
Maintenance of the quality in product and process...................................................................10
Meeting customer demand.........................................................................................................11
Evaluation of “Honesty and transparency make you vulnerable”.............................................12
Recommendation.......................................................................................................................13
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................17

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Introduction
Operation management is referred to as the administration where the industry practices
and creates the highest level of competence which is probable within the organisation (Heizer
2016). The unit is concerned with the conversion of material and labour into finished goods and
services as professionally as possible with an intention to increase the profit margin. The aim of
the report is to critically reflect on the operational management of McDonald’s organisation
performance. The operational system of McDonald’s caters to a form of partnership with the
franchise and the suppliers with an intention to improve the operational management
innovatively and assist in launching new products (Vivaldini and Pire 2016). With maximum
gains and minimal risk the business has continued to contribute in market and also in achieving
in international market. The organisation makes it a point to maintain a control by imposing rules
and standard procedures. Further in the assignment the competitive advantage of McDonald’s is
classified based on the quality management, process design, supply chain and inventory and
maintenance. In the second section of the report the operational strategy is implemented along
with several principles (Vivaldini and Pire 2016). The implementation is leaned to the practices
in McDonald’s which is identified on the source of maintain quality of the product and secondly
on meeting the demands of the customers. The report provides a study of McDonald’s and its
operational management, process, total quality management which is imbedded in different
process that provides its customers at the acceptances cost.
McDonald’s is a fast growing food chain and service retailer with an approx estimation of
more than 32,000 restaurants and it caters to more than 60 million people in more than 100
countries on a regular basis. More than 80% of the franchisee worldwide are operated by the
local people. At the time when Richard and Maurice McDonald had introduced their restaurant

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they had developed an idea on the basis of assembly line where the reduced menu could facilitate
cheaper cost (McDonald and Eisenhardt 2019). Lastly the recommendations made in the report
are based two criteria one is the organisation’s innovative and special items for the vegan
customers and secondly McDonald’s implementation on dynamic strategy for highlighting the
CSR and in order to attract environmentally conscious customers.
Operation contribution of McDonald’s
According to McDonald’s case study by Slack et.al the operational management is a
support to the company’s position as a largest fast growing food bistro chain in the world. There
are four strategic areas in which the retail chain represents the various strategic areas such as
quality management, supply chain management, inventory and maintenances and lastly its
process design (Stowell, Moore and Schumacher 2017). The global business entails a huge
variety of its strategic needs for the operation management. It is important for McDonald’s to
address the impacts of tough competition with the presences of other firms such as Subway, KFC
and Wendy’s. In order to formulate this McDonald’s needs to apply the strategies and suitable
policies in various fields. The founder of McDonald’s, Ray Kroc has managed to bring in the
concept of providing with limited amount of menu and run the entire process in restaurant
format.

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McDonald’s competitive advantage:
Quality management
The quality management of McDonald’s is the act of overseeing the activities of the
organisation and strategically estimates the task which is accomplished just to maintain a desired
level of excellence (Jensen, Cobbs and Turner 2016). It includes the determination of an amount
of quality policy, implementing quality and creating them. Keeping in mind about the
competitors in the market, McDonald’s maximizes its quality because it ensures to stay ahead of
its competitors. It is in the mindset of the customer that the retail outlet must look for high
quality products. The organisation on the other hand makes it significant for its customer to
provide with good quality products and also facilitate them with a take away policy (Jensen,
Cobbs and Turner 2016). This leads the customers to gain a competitive advantage and the
quality object leads to take certain action and policies in operating its product and service which
the customers want.
In order to keep it different and unique McDonald’s has made it a point to serve a variety
of high quality and nutritious food that includes fruits, salad and vegetables. From the case study
of McDonald’s it can be analyzed that the firm aims to concentrate more on the quality
management aspect which constrains the price and cost limits. McDonald’s utilizes a particular
production line that maintains the product quality consistency (Jensen, Cobbs and Turner 2016).
The consistency is important for the business to maintain as the brand stays focused in its
strategic decision and area of operational management.
The employees at McDonald’s are trained to prepare quality services and present the
meal according to the procedure that is specified to them in the training. The presentation and