Introduction
Since the inception of McDonalds to its market dominance, the McDonald brand has grown formidably and sustained a reputable name across the globe. The company has invested highly towards the generation of a formidable band to date. McDonalds is acclaimed for its unrivaled quality products. As a dominative figure in the burger industry, the company has been steadfast in its expansionary mandate with over 1650 stores globally. Hence, through its strong brand name, the company has taped into its core competency in sustaining its marketing initiatives. However, customer service has become an aspect of concern for the organization. Incorporation of a formidable and fast service approach to its client mandate has led to the incorporation of more effective strategies. Thus this paper will evaluate the varied strategies that could be incorporated by the organization to sustain its operations to sustain efficiency.
Problem statement
McDonalds operates a very formidable model which is based on both drive through coupled with cafes situated strategically. Through the strategic location of the various restaurants, the company has sustained impeccable revenue yield. However, it is imperative to note that within the recent years, the drive through McDonald’s strategy has faced significant backlash in regards to their efficiency. Pundits assert that incorporation of faster service delivery is bound to catapult the organization to greater levels of performance. Hence, the aim of this paper is to evaluate the varied tactics that can be incorporated to sustain faster delivery of services;
Performance evaluation;
- Burger customer flow time
- Ordering time; making an order, paying for the order, waiting for the order
- Activity time- burger preparation and receipt of the order made
- Numbers of customers driving through the various restaurants
Need for improvement
- Burger customer flow time 10 minutes
- Ordering time; making an order, paying for the order, waiting for the order 5 minutes
- Activity time- burger preparation and receipt of the order made 2 minutes
- Numbers of customers driving through the various restaurants
Economy
As an ever evident concept, economy is commonly utilized as a concept in ascertaining the level of price, amount, place and time in the production process. In the operational mandate of any organization, standards set have ever been incorporated in the measuring of economy. As such, there are varied economic standards and theorems that are incorporated in measuring economy aspect of production. Thus as an operational manager at McDonalds, it is imperative to choose the right technique in measurement.
Effectiveness
Effectiveness denotes an organization meeting the various objectives and policies set. Effectiveness entails the degree to which an organization meets the various objectives set. Operational managers in McDonalds have an integral role in ensuring that activities and policies made are met, evaluated and proper control measures are incorporated.
Efficiency
Efficiency is incorporated to denote the degree or level to which an organization utilizes its various resources within their operational mandate. Efficiency is a clear description of the level to which an organization maintains its productivity ratio. An organization that is highly efficient has an increased productivity ratio. An increased productivity ratio as aforementioned denotes that the organization uses minimal inputs for the increased outputs. Efficiency within Tesco has been enhanced through investment into sustainability approach in operation.
However, the above aspects of operation have not been incorporated at McDonalds with proper incorporation of stringent measures to enhance faster service delivery being deemed imperative. From client perspective the following prevails;
Time taken by a customer in a drive through café at McDonalds
Flow time efficiency = total value add time of a unit/ total time a unit is in process
= Drive to the café, make an order= 1 minute, wait for the order receive packaged burger= 3 minutes or choice made, pay and drive away=1 minute517 =29.4%517 =29.4%
Process flow diagram
Enter drive through café wait for burger exit
Customer burger making pay for order
Primary bottleneck secondary bottleneck
McDonald’s KPI tree
Profit
Key metrics for evaluation within McDonald’s performance
- Demand per hour chart
- Burger wait time chart (per hour)
- Register wait time chart (per hour)
- Total flow time chart (per hour)
Collect data and analyze status quo
McDonalds has lagged behind in regards to the operational customer service. From the evaluation of the performance trend in the organization, it is imperative to note that between the periods of 12 to 2 pm, significant time wastage is evidenced. Accordingly, it is important that the organization incorporates the right strategies construed towards sustaining operational success suited to meet its targets set. Admittedly, there seems to prevail inefficiencies among its various staffs is highly evident. Furthermore, there seems to be evidenced the notion of inefficiencies especially in receiving the order made for a given burger. Hence, it is imperative that the organization instills proper measures construed towards improving its service delivery. Major problems or bottlenecks were evidenced in three main avenues of operation at McDonalds. Firstly, it is imperative to note that;
- Majority of the time was wasted at making the order and awaiting its processing
- The organization is witnessed by significant bottlenecks especially in waiting for the order to be processed.
Creating opportunities for improvement
It is imperative that McDonalds incorporates strategic measures construed towards sustaining a faster service delivery mandate. The company requires extensive investment into staff reward scheme. Accordingly, the company should make imperative investment into a performance enhancement mechanisms construed towards sustaining a performance success. Thus, the company should;
- Extensively increase remuneration
- Reduce bottlenecks through precooking its burgers in the previous night and refrigerating them for warming and sale to customers
- Emphasizing on changing infrastructure in the driveways to sustain a faster customer payment for their orders.
Furthermore, the organization should incorporate the cook freeze process in production of its burgers. The cook freeze process entails a process in which the meals are cooked till they are almost done. However, after food is almost done, rapid freezing is done. Accordingly, throughout the incorporation of the cook freeze method, the food will be prepared at a central location hence freezing them to a -20 degrees centigrade. The cook freeze method entails packing of the food in shallow trays which is more efficient. The process is highly advantageous due to the notion that the staff and equipment in efficiency. Accordingly, the preparation and cooking process will not be tied to the serving process hence ascertaining efficiency.
Conclusion
Operations management has molded an interrelating aspect within the different organizations resulting into a more consistent and operative business structure. Businesses that integrate successfully operations management boost both their output and productivity. Quality control departments ensure a business organization conforms to the set standards, which makes operation management key to maintaining clients. Through the introduction of the accurate strategies and measures in incorporating operations management as seen in this paper, McDonalds will uphold a resolute path to development and productivity. As such, productive mandate of operation will be pegged on effective policies of operation. The company should make extensive investments to their various drives through cafes to sustain effective and time saving initiatives of operation. A business policy based on proper reward scheme is bound to sustain effective performance among the employees.
