SG5011 - McDonald's Sustainable Operations and IT Integration

This report assesses the sustainability of McDonald's operations and supply chain management, focusing on the integration of information technology to enhance performance. It begins by outlining McDonald's products and services, including delivery systems, quality standards, and supply chain processes. The analysis uses diagnostic tools like QSDFC and quality audits to evaluate the organization's performance, comparing it with theoretical models like PDCA and Six Sigma. The findings reveal inefficiencies in waste management and high energy consumption, suggesting the adoption of green technology to improve sustainability and reduce environmental impact. The report concludes by emphasizing the need for continuous improvement and the implementation of sustainable practices within McDonald's operations.

Sustainable
Operations and
Supply Chain
Management

Table of Contents
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Section 1: Outline the product and service.............................................................................1
Delivery.............................................................................................................................1
Quality standards...............................................................................................................2
Supply chain and an associated process............................................................................2
The usage of ICT...............................................................................................................2
Section 2: Analysis of the organisation..................................................................................3
Using diagnostic tools........................................................................................................3
Comparing with theory......................................................................................................4
Continuous improvement and change...............................................................................4
Theoretical model of good practice...................................................................................4
Section 3: Explain the findings...............................................................................................5
Conclusions......................................................................................................................................5
References........................................................................................................................................6

Introduction
Mcdonalds is one of the leading international fast food company establishes in 1940 and
headquartered in United States. It has the features of self servicing which is operated in several
countries with varieties of fast food dishes. Mcdonalds has key operational plan such as it uses
the method of production line to maintain the quality of consistency of the product. Its key
activities includes the marketing and selling food and beverages. Stakeholders and their
requirements are identified by the organisation by adopting the strategies of identifying the
stakeholders and their engagement as well. Requirements are identified by conducting the
brainstorming process using the conference or virtual meetings among the stakeholders in order
to share the ideas. Report purpose is to use the theory demonstrated in these to assess the
sustainability of the organisation and demonstrate how the use of information technology can
help maximise performance. Structure outlined as the following discussion is based on the
outline of the product and service and analysis of the organisation along with the explanation of
the findings with proper conclusion.
Main body
Section 1: Outline the product and service
Delivery
There is a delivery system through which the company uses to deliver their products and
services to the customers. They operate the information system in order to handle the records and
payments of the customer so that it can reviews back for further analysis. Moreover, the
company also has the option for online delivery services where customers can order to food and
make payments either using payment on delivery or online mode of payment. It also benefits
with the several offers and discounts to the customers in order to attract more number of
customers. Talking about the store delivery system, it is a self service system where customers
order food and make payments at the counters by themselves (Matos, Schleper, Gold and Hall,
2020).
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Quality standards
According to the study and surveys conducted by the customer, Mcdonalds is stated as
the lowest quality food delivery as compared to all the top rated fast food restaurants. This is a
chain which is ranked number 12 to Mcdonalds out of 12 by the review conducted by the RBC
capital markets which is a global investment bank. Therefore, Mcdonalds has developed and
introduced the arrangement of administration groups in order to investigate about the products
and servicing quality and also their control so that they can achieve the fruitful business. This is
a group who is majorly responsible for the quality administration and quality control that are
checked by the the group within the organization (Langert, 2019).
Supply chain and an associated process
The process used by the company in its supply chain management is first they purchase
the raw materials which are associated with the finished products then it is transformed into the
final finished food. It is then transported and again modified as per the needs and requirements of
customers and then finally distributing to the end customers. Production line method is the
process which is used by the firm in order to maintain the product quality consistency so that the
customers can be satisfied while fulfilling their expectations and also its helps in the area of
strategic decision making under operations management domain. This is the entire process of
supply chain used by the firm and its related method as well (Khemka, 2019).
The usage of ICT
Mcdonalds is using the information and communication technology in its management
and operations along with the customer servicing as well. Company make use of the advanced
technology of artificial intelligence and big data in order to optimise the supply chain
management. It helps in tracking the information in a quick manner. Moreover, they also focuses
on the development of the global mobile application and mobile order and pay services along
with the pay to self order kiosks as well. They are targeting on the technology which can make
the customer experience rich while entering into the restaurant and availing the services for the
same. They also use the drive-thru menu boards in order to save the time of the customers
(Schramade, 2019).
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Section 2: Analysis of the organisation
Using diagnostic tools
Performance Measures-QSDFC
QSDFC is a framework which is used by Mcdonald's in order to measure its
performance. Q stands for quality which is measured and uses production line method for the
same. Mcdonald's has low quality. S stands for speed which calculates the duration of order time
and delivery time so that it can be reduced if taken long. Mcdonald's has an average speed. D
stands for dependability which is measured in order to calculate the dependency of the raw
materials on suppliers and demand on the customers. Mcdonald's has high dependability. F stand
for flexibility which measures the level of rigidity within the firm. Mcdonald's has an average
flexibility. C stands for cost which measures that how much the cost is less than the selling price
for calculating the profits. Mcdonald's has high cost. Moreover, 360 degrees system is also used
by the firm which helps the managers to assess the performance of the employees and action
taken after the generation of the result (Raj and Singh, 2021).
Quality audit
Mcdonald's uses two types of quality audit such as the process and the product quality
audit. It follows steps in its auditing process such as planning is the first step in which the
elements are combines which are to audited. Conducting the fieldwork is the second step in
which personal opinions are gained from the staff. Reporting the results is the third step in which
results are contented out and analysed accordingly. Then finally the following up on the
corrective action plans is the final step followed by the Mcdonald's in which actions are planned
and implemented along with the risk recognition and mitigation of it as per the issues identified.
It mainly faces the issue of sustainability in terms of waste mismanagement and high energy
consumption through ICT usage (Hamza and Karabulut, 2021).
Service scape
Mcdonald's has the service scape in which the actual interaction of the customers and the
staff is done with proper operations and in the physical environment of the business. Mcdonald's
has a store and a restaurant for a service scape in which there is a self service process done by the
customers. Staff stands at the back of the counter and screen is placed on the top of the counter
which displays the menu and several offers and discounts provided to the customers. Customers
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visits the counter and places the order and make payment to the staff either online or cash. This
is how the interaction is done (Meredith and Shafer, 2019).
Comparing with theory
PDCA is a theory which is compared with the basic process of Mcdonald's. It stands for
plan, do, check and act. This is the steps which must be adopted for better enhancement of the
company's entire procedure. Plan is to plan the new requirements and conducting the feasibility
study of the firm so that investments can be made without any losses. Do is the starting of the
execution of the plan which is planned in the previous step in a strategic manner. Check is to
monitor the entire things so that any risk can be controlled in an effective manner. Act is the final
implementation of what is actually being implemented (Luo, 2020).
Continuous improvement and change
Continuous Improvement process which can be adopted by the firm in order to
maintaining the sustainability and reducing waste mismanagement and also the high energy
consumption because of the ICT usage. Defining the problem is the first stage where
sustainability issues are specified. Identifying the possible solutions such as inventory
management and six sigma along with the usage of green technology. Selecting out the possible
solutions that are the six sigma and green technology. Implementation of such processes and then
evaluating them for the continuous improvement is being done within Mcdonald's (Russell and
Taylor, 2019).
Theoretical model of good practice
Six sigma used as a theoretical model for good practice. It provides several tool for the
continuous improves and also the stages to quantify and mitigate the issues. Moreover, it is
important for the firm to use the green technology so that the waste can be reduced and low
consumption of energy must take place. Green technology is a sustainable tool used by the firms
for eliminating the unnecessary raw materials and reduction in the final goods as well. It works
on the low energy power because it is sustainable in nature (Bode, Macdonald and Merath,
2022).
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Section 3: Explain the findings
The current process which is used by the Mcdonald's is not that much efficient and
therefore it highly needs improvement. Company is mainly lacking in the sustainability issues
they are facing in context with waste mismanagement and high energy consumption in ICT
systems. Hence, it has been found out that the firm must use the green technology in their
organization for operations and management along with the supply chain and many other
domains as well. This can help the company in reducing its wastes along with the low
consumption of energy.
Conclusions
Briefing about the tasks completed in the above report is based on the overview of the
company and its plans and activities along with the stakeholder identification and purpose of the
report while outlining the structure. Moreover, operations and management process is discussed
in the main body sections with further sections involved in it. It states that the company uses the
production line method and 360 degrees process in its processes and quality. Main body
describes the delivery of the products and services along with the quality standards and supply
chain and an associated process. Moreover, the usage of ICT and using diagnostic tools and also
the continuous improvement and change are also specified. It covers models like PDCA,
continuous improvement and change along with the six sigma implementation. Furthermore, it
has been found out that the firm is lacking in its current operations and processes so therefore,
green technology is suggested to maintain the sustainability issues faced by the company in order
to manage the wastes and energy consumption while using the ICT.
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References
Books and Journals
Bode, C., Macdonald, J.R. and Merath, M., 2022. Supply disruptions and protection motivation:
Why some managers act proactively (and others don't). Journal of Business Logistics.
Hamza, S. and Karabulut, A.T., 2021. Global or Local Strategies? McDonald’s Turkey
Example. International Journal of Commerce and Finance, 7(2), pp.101-121.
Khemka, M., 2019. Business Sustainability–Case Study of HUL and McDonald’s. Sustainable
Engagement in the Indian and Finnish Business, p.70.
Langert, B., 2019. The battle to do good: Inside McDonald’s sustainability journey. Emerald
Group Publishing.
Luo, S., 2020. Global Logistics and Supply Chain Management.
Matos, S.V., Schleper, M.C., Gold, S. and Hall, J.K., 2020. The hidden side of sustainable
operations and supply chain management: unanticipated outcomes, trade-offs and
tensions. International Journal of Operations & Production Management.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
John Wiley & Sons.
Raj, S.K. and Singh, N.K., 2021. Strategizing of fast food industries using a balanced scorecard
approach: A case study of Mcdonald’s corporation. Raj, SK & Singh, NK (2020).
Strategizing of fast food industries using a balanced scorecard approach: A case study of
McDonald’s Corporation. International Journal of Humanities, Arts and Social
Sciences, 6(6), pp.258-273.
Russell, R.S. and Taylor, B.W., 2019. Operations and supply chain management. John Wiley &
Sons.
Schramade, W., 2019. McDonald's: a sustainable finance case study. Erasmus Platform for
Sustainable Value Creation.
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