Report on Operations Management Practices at McDonald's: BM563 Module

This report provides a comprehensive analysis of McDonald's operations management, covering various theories, concepts, and principles. It explores the application of operations management techniques such as capacity, quality, and supply chain management within the context of McDonald's business model. The report delves into the use of technology in supply chain management, highlighting its significance for efficiency and customer satisfaction. Furthermore, it examines operational techniques including process design, project management, and continuous improvement. The report also evaluates the interactions of supporting functions, such as finance, with operations and their contribution to overall business success, ultimately aiming to recommend improvements to operations practices within the organization.

Business operational
management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Theories, concepts and principles of operational management and their application.................3
Application of alternative operations management techniques- capacity, quality and supply
chain management.......................................................................................................................5
Technological use in supply chain management.........................................................................6
Operational techniques in management of business....................................................................7
Evaluation of functions interactions with operations and aid their success................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business and organisations all run on the operations and functions with the main aim to achieve
growth and development and profits. Organisations have operations to perform, production of
goods and service the most important one. For this production of goods and services various
other functions and operations are performed, from working them to making them as finished
products. The operations are all performed under the guidance of owner or a team that looks after
all its operations. These goods and services are produced with the main motive to satisfy the
demands of costumers and operational management is one of the major functions that determine
the role and importance of how the demands and needs of the costumers will be satisfied
(Abdallah and Al-Ghwayeen, 2019). These operations are of many kinds that is it involves many
functions within it like control of quality of products, inventory management, supply chain
management that is looking after the demands of costumers and supply to them and all. For
operations management, managers are hold responsible for various activities like assets,
inventory, cost management, human resources of an organisation and many more. In this report,
operational management of McDonald’s is discussed. McDonald’s is American multinational
company that is restaurant dealing in fast food. It was founded in 1940. Operational managers
need to carry out many functions from designing to meeting all its target audience demands, with
the help of advance technologies and many other systems that improves the quality of production
of goods and services.
MAIN BODY
Theories, concepts and principles of operational management and their application
Theories of operational management:
There are many theories that are present for operational management. Some of them are as
follows that are used in McDonald’s are as follows:
Business process reengineering(BPR): with the use of business process reengineering, these
theories uses technologies for restructuring and changing the complete processing and operating
of business. Its implementation leads to improvement in operating functions of organisation
(Baker, Syarilla Iryani and Seita, 2020). This theory focuses on innovation, improvements,

redesigning the concept of process, helps in the reduction of costs, improves information
technology and working of an organisation. McDonald’s can use this theory for redesigning its
process and for incorporating new technology in producing its fast food items and can bring
innovation in its existing goods.
Six sigma theory: this theory is used for reduction in the chances of errors in the manufacturing
process. This theory uses various steps that are involves in it with defining, measurement of
inventories, analysing and controlling the process of production of goods (Elangovan, Gupta and
Sundaravel, 2022). This theory leads to the reduction and also in eliminating nearly all chances
of errors in production and other chances. For meeting all the demands of its target audience,
McDonald’s can use this theory for ensuring great quality products to their customers.
Lean manufacturing theory: this theory helps in the organisation to reduce its various costs such
as manufacturing and production costs and also improves the quality of business in providing
customer demands on proper time. This theory emphasizes on the efficient and effective
reduction in the costs and also in applying technologies for the deliveries to its customers with its
products. There is low cost in utilising technology in small and medium scaled organisations.
McDonald’s uses this theory for increasing its productivity and efficiency and also this theory
helps it in reducing manufacturing and production costs.
Concepts and principles of operations management:
There are many concepts and principles that are involved with the management of operations.
Randall Schaeffer had presented some concepts and principles as reality, causality, fundamental,
variance, changes and many more. some of them are as follows:
Reality principle: this principle is based on focusing on handling issues in operations, techniques
and all. This operations management is business specific as the organisations organises
operations in manner and way that addresses and solves problems and issues at the very early
stage (Eliseeva and Shmeleva, 2018). McDonald’s managers should see that they focus on giving
specified solutions to all the problems that they face.
Organisation concept: this concept always states that organisation processes and functions are
interrelated and for the smooth running and operating of these functions, this concept is used.
There should be complete use of this concept for great operating of all functions in a business
organisation. McDonald’s sees and looks for all matching and coordinating all the various
functioning departments in their working with the help of this concept.

Accountability principle: this concept is used by an organisation for reporting to each other with
their specific duties and responsibilities and authorities and other functioning (Goldmann, 2020).
McDonald’s uses this concept for organising all departments with reporting and being
responsible and accountable to each other with their functioning and duties and other working.
Application of alternative operations management techniques- capacity, quality and supply chain
management
Capacity management
This capacity management implements organisations in management of changes and dynamic
uncertainties that are used for maximising and controlling various production and manufacturing
costs. Managers use capacity management in business to avoid ad-hoc and other extra headache
in performing functions that has issues (Kostruba, 2020). This capacity management helps in
avoiding all extra and unforeseen contingencies costs. McDonald’s managers understand all their
operating functions and areas before considering and also implementation of capacity
management methods and ways.
Quality management
Quality management simply means managing quality of all goods and services and products with
the aim of achieving excellence to provide them to their customers. Quality management also
aims in meeting the customers’ needs and also ensuring customer satisfaction, that will result in
increasing profits and sales of Unilever. McDonald’s also uses this for designing the food items
and nature of the product and that without any errors and deficiencies in relation to that product
or service. McDonald’s uses quality management for ensuring regularly monitoring in reducing
costs and improving the quality of fast food products and also in finding defects for avoiding
different costs.
Supply chain management
Supply chain management is related with all the process that involve their processing of raw
materials that turn into finished and usable products and also with the management of the flow of
goods and services. This supply chain management is aiming for the maximisation of customer
value and for the attainment of competitive advantages in the market (Nardelli, and Scupola,
2018). McDonald’s uses this supply chain management for the improvement of its financial

records or profits by providing quality products to its customers on their desire time and also for
the reduction of different storing costs that are there if the products are not delivered on time.
Technological use in supply chain management
With the changing technologies and coming of advanced technologies, business have achieved
great heights in generating profits for their organisations. Manufacturing entities are always
dependent on their supply chain members for delivering of their products. The main and most
important stakeholders that are interested are manufacturers, retailers, suppliers and many other.
technological advanced has lead companies to get in touch with these stakeholders in an easy
way (Özsoy and Örkcü, 2021). For more market capturing, McDonald’s needs to create great and
advanced technologies and also need to have creation of digital environment for integration of
various functions and operations in the supply chain of their organisation. There are various end
to end solutions that are provided by the advancement of technologies that are used by an
organisation. These end to end solutions provide easier working and also increase the speed of all
operating functions and also leads to avoiding any issues that further are raised in supply chain of
business organisation. These advancement of technologies are made for meeting timely
requirement s of the customers along with the reduction of different extra costs that are there in
business organisation. This use of greatly advanced technology by a business organisation leads
to the greater improvement in also controlling of production of different goods and services.
Thus McDonald’s uses greatly advanced technology for the betterment of its organisation in
inventory management and increase in collaboration among all different stakeholders and also
benefits (Saggar, Tomasella, Cattaneo, and Matta, 2021). Business organisations need to develop
and have great technologies advancement and should also create digital working environment for
integrating and coordinating various other different operating functioning within and outside the
business organisation. Supply chain software technologies have lead business organisations to
achieve on demand facilities also ton the customers along with smooth running of business as
well as on proper time and schedulers. The usage of technology in supply change brings
transparency in the working and operating stage of production and it also identifies possible
future problems and issues ae well as the different delays that can be possible in operating by an
organisation in its working are also identified. Technologies are of great use in the supply chain
management in a business organisation.

Operational techniques in management of business
There are various operational techniques that are there and with the use of these operational
techniques, business can reduce their different costs, increase the satisfaction of their costumers,
can increase revenue and also improve the whole operating and other functioning of business.
This also leads to ensuring of sustainable future production of different goods and services in the
organisation. Some of the operational techniques that are useful and are used are explained
below:
Designing process: Operations management basic aim is to achievement of all the predetermined
goals and objectives of a business organisation. This involves the business to use and deal with
specific problems. Business organisation use these process for saving of time, eliminating
problems and for enhancement of the productivity of all business operations and functions (Seita,
et.al. 2020). Creating a well-defined plan that addresses the issues and problems are all dealt with
following of plan and leads to various different advantages to Unilever. Then that plan is used
regularly until it becomes a routine plan for it.
Project management: this management technique focuses on the regular and continuous
decision making that are all related with the scheduling and working assignments and tasks.
There are various factors that are needed to be considered with this project management in
McDonald’s and these factors are financial, controlling factors, social and evaluation factors.
This complete project management leads to the timely completion of all working and operations
of a business organisation. McDonald’s uses this project management for tracking and evaluating
different cost operations and also helps in the controlling of different budgets.
Continuous improvement: managers are always looking for loopholes in the work and tasks that
already have been performed, for making and also for improving the functioning of various
different working and operating. This very concept of continuous improvement involves regular
improvement in the operations and also making its employees accountable and responsible for all
the functions that they have performed (Vafin, 2021). This technique of continuous improvement
is used for saving time and also for saving different costs of the business organisation, here
Unilever. McDonald’s uses this also for this greatly and continuous improvement in every aspect
of the working and operating in their business organisation.

Evaluation of functions interactions with operations and aid their success
There are many different functions that aid the business in the success of it. Some of the various
functions are explained below in the context of Unilever:
Finance function
This is main important function in any business organisation. This functioning operation looks
after all the funding and money for all other different functions and operations for the
organisation. McDonald’s uses finance function as the main function as it helps it in procuring
different funds for the overall working and operating of the business organisation for its great
and overall smooth functioning of the business.
Strategy function
This function is mainly based with the making of different tactics and techniques that are related
to operational management. Strategy formulation leads to optimum use of resources with the aim
motive of gaining competitive advantages in the market (Wilkinson, 2022). Strategies are mostly
involved with all different functions like sales, maximising the great efforts and use of human
work force that are available in an organisation, here McDonald’s and also with the main aim of
holding revenue and profits.
Forecasting function
Forecasting simply means prediction of future and future related events. These predictions can be
made by estimating many events, in operations management, forecasting is basically done on
demands of the costumers and supply of the firm and various other related production functions
and operations. With the help of this forecasting function, operation managers and the related
team get to know what to produce, how to produce and all other related functioning operations of
McDonald’s.

CONCLUSION
From the above report it can be concluded that operational management is necessary and plays a
vital role in providing great benefits to organisations in terms of reduction in costs, smooth
running of various different functions and operations in the business and many other benefits. In
this report, McDonald’s operational management is discussed along with various theories,
concepts, principles of operational management. Various alternative operational management
techniques that is capacity, quality management and supply chain management is also discussed
along with various different operational techniques that are used in the management in business
and also different functions evaluation with operations and aid their success is also discussed in
this report. The use of different technologies by an organisation also leads to increased
productivity and also production of goods and services that are highly qualitied and are of great
use to the costumers, this is the main motive of operational management along with other
benefits and techniques that are already discussed in the report.

REFERENCES
Books and Journals
Abdallah, A.B. and Al-Ghwayeen, W.S., 2019. Green supply chain management and business
performance: The mediating roles of environmental and operational performances. Business Process
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operational administration level in association. International Journal of Future Generation Communication
and Networking, 13(3), pp.1165-1170.
Elangovan, N., Gupta, R. and Sundaravel, E., 2022. Influence of Business Analytics Usage on
Operational Efficiency of Information Technology Infrastructure Management. Asia Pacific Journal of
Information Systems, 32(1), pp.70-91.
Eliseeva, E.N. and Shmeleva, N.V., 2018. Creation of indicators balanced system as a tool of strategic
and operational management for the metallurgical enterprises. Russian Journal of Industrial Economics.
Goldmann, K., 2020. Use of Financial Analysis in Operational and Strategic Management in Practice of
Polish Business. In Eurasian Business Perspectives (pp. 115-125). Springer, Cham.
Kostruba, A., 2020. NATIONAL CULTURE-SPECIFIC PROPERTY PHENOMENA (RIGHT OF
OPERATIONAL MANAGEMENT, RIGHT OF ECONOMIC MANAGEMENT). HAL.
Nardelli, G. and Scupola, A., 2018. User involvement in business-to-business operational service
innovation. In Services, Experiences and Innovation. Edward Elgar Publishing.
Özsoy, V.S. and Örkcü, H.H., 2021. Structural and operational management of Turkish airports: a
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Saggar, S., Tomasella, M., Cattaneo, G. and Matta, A., 2021, December. Enhanced operational
management of airport ground support equipment for better aircraft turnaround performance. In 2021
Winter Simulation Conference (WSC) (pp. 1-12). IEEE.
Seita, A., Waheeb, A.U., Ahmed Hassan, H., Baker, Y.A., Samer, B. and Syarilla Iryani, A.S., 2020. The
efficiency and effectiveness of leadership in operational management level in organization.
Vafin, A., 2021. Strategic, Legal, Financial, and Operational Risks for Businesses During COVID-19
Pandemic. Empirical Quests for Management Essences, 1(1), pp.65-85.
Wilkinson, J., 2022. Operational Resilience: The Evolution of Business Continuity. Emergency
Management Review, 5(1), pp.43-56.