Operational Management in McDonald's

Operations
management

Contents
INTRODUCTION...........................................................................................................................3
Operation management in McDonalds........................................................................................3
Operational Strategies..................................................................................................................4
Critical analysis on Make/ buy decision......................................................................................6
Working model of a McDonald’s restaurant:..............................................................................7
Critical analysis on Technological strategies..............................................................................8
3-D of operational strategy process...........................................................................................10
Improvement in the Operations outcomes due to buy/do decision and use of technology.......10
Recommendations..........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operation management is considered as essential department of organization that plays
key role in producing goods and services. There is significant impact on various activities of
organization. Operation management is mainly dependent on the operating system where
integration of resources is done with goods and services (Chandra and Wella, 2017). It is the
integration of the goods and services which makes the management part to be more interesting
and transformational. For any organization, there are two main objectives that are performed by
this department that is customer services and resources utilization. All the activities of the
operational management are performed by Operation’s manager and on their decision resources
utilization and customer services for their satisfaction are provided. In order to provide desired
utilities to the customer and to fulfill the organizational goals they convert the input raw
resources into output effective, efficient and adoptive products. There are various activities and
function that are performed by operational management such as location of facilities, product and
process 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 an
international fast food company expended over many countries.
Here critical analysis is done on the operational management of the firm where
understanding and application of make/ buy and technology strategy in McDonalds is shown.
Operation management in McDonalds
According to Azcárate, Mallor and Mateo, (2017) operation management in McDonald is
completed by top management. The instruction and policies are implemented by all the branches
as-well-as restaurants of the company. To achieve the organizational goals, they have operation
managers that perform all the operational activities for controlling and maintaining the raw
resources. The company is internationally expanded and serves fast food to over 70 million
people across world (Alrhaimi and Mugableh, 2017). They are expended over 100 countries and
have around 36900 restaurants. It started in 1955, having 1.5 million employees and has a
revenue collection of US$24.622 billion. Being the largest fast food restaurant chain there are 10

major decision performed by the operations management. They develop strategies over various
areas and their restaurants coordinate equally to serve for better productivity and performance.
Effective operational management helps them to provide tough competition towards firm
like KFC, Subway and Wendy’s (Alrhaimi and Mugableh, 2017). Moreover, it influences their
finance, marketing and production. In the organization it is used for managing inventory,
optimum allocation of resources and reducing costs. They have reduced their all their
unnecessary activities of Global Fast Food Supplier. For the optical allocation of resources, they
have used different tools, mathematical and statistical techniques such as linear integration and
transportation, 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 they
wanted to provide cleanliness, outstanding quality, values based services and zeal customer
experience so that every person entering the restaurants have smile (Mission & Vision - Analysis
of McDonald's. 2017.).
Additionally, they mission statement is to provide great value for money, outstanding
services and top-quality products so that firms become customers first choices (Mission & Vision
- Analysis of McDonald's. 2017.).
Operational Strategies
Chang, Wong and Chien (2017) technology and do/buy decision has made their
production process so effective so effective. Further, they have made development through the
reducing cost, improvising product quality, delivery system, and response speed and product
flexibility. As stated by Bortoluzzi, Ensslin and Ensslin, (2017) McDonalds have implemented
advanced technology and excellent customer service that helped them in improving their
production process and provided them measurable competitive advantage. Though the company
is globally, they still operate locally. To achieve these objectives McDonald's become service
orientation and improved its competitive advantages through Business Process Re-engineering
(BPRE), Computer Integrated Manufacturing (CIM), Just-in-Time (JIT), Flexible Manufacturing
Systems (FMS), Total Quality Management (TQM), Time-Based Competition, and the Virtual
Corporation (Helmreich, Klinect and Wilhelm, 2017). Improvement in the service orientation
was made by them through providing constant interpretation, intangible and consumable