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McDonald’s Corporation’s operations management (OM) supports the company’s position as the largest fast food restaurant chain in the world. The 10 decisions of operations management represent the various strategic areas of operations that must be coordinated for optimal productivity and performance. McDonald’s global business entails a wide variety of strategic needs for its operations management, such as strategic HRM and supply chain development. McDonald’s also needs to address the impacts of tough competition with firms like Subway, KFC and Wendy’s. To do so, McDonald’s must apply suitable policies and strategies in all the 10 decision areas of operations management.
“McDonald’s proclaims a commitment to racial equality, profits from its Black customers, yet places Black franchisees in locations that are destined to fail, with low-volume sales and high operating costs, leading to consistent profit shortfalls or losses, impeding Black franchisees’ efforts to grow as they acquire other stores, necessary. Usa today In the latest nod to how the coronavirus is disrupting Americans' daily rituals and patterns, McDonald's said Monday that it is closing all seating and play areas in its company-owned U. McDonald's Corporation and McDonald’s USA, LLC (“McDonald’s”) are committed to a policy of Equal Employment Opportunity and will not discriminate against an applicant or employee on the basis of race, color, sex, religion, national origin, citizenship status, age, disability, veteran or military status, sexual orientation, gender identity/expression, genetic information, or any other.
McDonald’s maintains effective policies and strategies for the 10 strategic decisions of operations management to maximize its productivity and performance as a global leader in the fast food restaurant industry.
McDonald’s Operations Management, 10 Decision Areas
1. Design of Goods and Services. McDonald’s goal in this strategic decision area of operations management is to provide affordable products. As such, the serving sizes and prices of its products are based on the most popular consumer expectations. However, some McDonald’s products are minimized in size to make them more affordable.
2. Quality Management. The company aims to maximize product quality within constraints, such as costs and price limits. McDonald’s uses a production line method to maintain product quality consistency. Consistency satisfies consumers’ expectations about McDonald’s and its brand in this strategic decision area of operations management.
3. Process and Capacity Design. McDonald’s process and capacity design is centered on efficiency for cost-minimization that supports the company’s strategies. This strategic decision area of operations management focuses on maintaining process efficiency and adequate capacity to fulfill market demand. At McDonald’s, the production line method maximizes efficiency and capacity utilization.
Mcdonald's Procedure Manual
4. Location Strategy. McDonald’s goal in this strategic decision area of operations management is to establish locations for maximum market reach. McDonald’s marketing mix includes restaurants, kiosks, and the company’s website and mobile app as venues. Through these locations/venues, McDonald’s reaches customers in traditional and online ways.
5. Layout Design and Strategy. McDonald’s uses practicality for this decision area of operations management. The strategy involves maximizing space utilization in restaurants and kiosks, rather than focusing on comfort and spaciousness.
6. Job Design and Human Resources. McDonald’s human resource strategies involve training for skills needed in the production line in restaurant kitchens or production areas. For this decision area of operations management, individual and organizational learning are also emphasized to support McDonald’s organizational culture.
7. Supply Chain Management. The firm’s global supply chain supports its various locations around the world. McDonald’s has a strategy of supply chain diversification for this decision area of operations management. Such strategy involves getting more suppliers from different regions to reduce McDonald’s supply chain risks.
8. Inventory Management. McDonald’s goal for this strategic decision area of operations management is to minimize inventory costs while supporting restaurant operations. The company does not directly sell products and ingredients to its restaurants. Instead, local and regional intermediaries and distributors coordinate with McDonald’s restaurant managers to manage their inventory.
9. Scheduling. McDonald’s uses corporate conventions for scheduling, based on local market conditions and laws, as well as supply chain needs. For example, the company’s strategy involves regular and seasonal schedules to address fluctuations in local market demand. Thus, in this decision area of operations management, McDonald’s is flexible and adapts to local market conditions.
10. Maintenance. McDonald’s lets restaurant managers or franchisees select maintenance service providers. However, for kitchen/production equipment, McDonald’s Corporation also has certified/approved maintenance providers. Thus, the company addresses this strategic decision area of operations management through local and corporate control.
Productivity at McDonald’s
In the 10 strategic decisions of operations management, McDonald’s works toward maximum productivity in all of its business areas. The following are some notable productivity measures or criteria used in McDonald’s business:
- Order fulfillment rate (McDonald’s restaurant productivity)
- Stockout rate (Intermediary/distributor productivity)
- Timely delivery rate (McDonald’s delivery productivity)
References
- Lawrence, K. D., & Weindling, J. I. (1980). Multiple goal operations management planning and decision making in a quality control department. In Multiple Criteria Decision Making Theory and Application (pp. 203-217). Springer.
- Liu, S., & Jiang, M. (2011). Providing Efficient Decision Support for Green Operations Management: An Integrated Perspective. INTECH.
- McDonald’s Corporation Form 10-K 2014.
- Najdawi, M. K., Chung, Q. B., & Salaheldin, S. I. (2008). Expert systems for strategic planning in operations management: a framework for executive decisions. International Journal of Management and Decision Making, 9(3), 310-327.
- Schrunder, C. P., Galletly, J. E., & Bicheno, J. R. (1994). A fuzzy, knowledge‐based decision support tool for production operations management. Expert Systems, 11(1), 3-11.
- Verdaasdonk, P. (1999). Defining an information structure to analyse resource spending changes of operations management decisions. Production Planning & Control, 10(2), 162-174.
- Wild, R. (1983). Decision-making in operations management. Management Decision, 21(1), 9-21.
Published 11:56 AM EDT Mar 26, 2020
McDonald’s is temporarily pulling its coveted all-day breakfast menu to streamline operations as the coronavirus pandemic continues to strain day-to-day affairs.
'We are working with our franchisees and local restaurants to focus on serving our most popular choices and will begin temporarily removing some items from the menu over the next few weeks,” Bill Garrett, the senior vice president of McDonald’s U.S. operations, said in a statement obtained by USA TODAY Wednesday.
The fast-food company made the menu alteration to 'simplify operations in our kitchens and for our crew, and ensure the best possible experience for our customers.'
But, don't fret: The change is only temporary.
Shortly after the announcement, McDonald’s U.S. President Joe Erlinger tweeted, 'All day breakfast’s response to this news: 'I’ll be back.' Easy rent pro standard crack.
More: Starbucks giving free coffee to first responders, healthcare workers dealing with coronavirus
Garrett added: 'We will regularly evaluate the situation and look to move back to our regular menu as soon as possible.'
McDonald’s rolled out its all-day breakfast menu, including its popular Egg McMuffins, sausage biscuits and hashbrowns, in October 2015.
Mcdonald's Operations And Training Manual
The fast-food chain's limited menu follows the closure of all seating and play areas in its company-owned U.S. restaurants last week, mirroring changes seen by restaurants, schools and businesses forced to shutter to limit the spread of the coronavirus.
Mcdonald's Operations Manual Pdf
'To align with increasing regulations throughout the country…McDonald’s USA company-owned restaurants will close seating areas, including the use of self-service beverage bars and kiosks,' the company said in a statement on March 16.
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McDonald's is still serving customers 'through take-out, Mobile Order & Pay, Drive Thru or McDelivery at the majority of our restaurants,' Garrett added.
Contributing: Charisse Jones
More: McDonald's to shut seating, play areas amid COVID-19 pandemic