Overview of McDonald’s
McDonald is the largest chain of fast food restaurant in the world operating in more than 119 countries. McDonald has over 33,000 restaurants across the world. McDonald originally served hamburgers, milkshakes, French fries and cheeseburgers. However, over the years McDonald’s corporation has added other products to its menu including but not limited to; salads, chicken, fish, breakfast sandwiches, McCafe, beverages and desserts. All this are served either as dine-in setting or as drive through services.
McDonald’s corporation also offers a range of services to its consumers. Their services include free Wi-Fi for their customers at no extra charge, gift cards and gift certificates such as the Arch card. The Arch card acts as a voucher that can be used purchase food items at McDonald’s. It is in denominations of $5, $10, $25 or $50 and can be reloaded from any participating McDonald restaurant or retailers in the US. McDonald’s also offers play places and parties where it hosts parties for kids; provide meals, cake decoration and even party favours.
McDonald’s main customers are children, youth and young urban families. McDonald’s corporation marketing strategy seeks to provide goods and services that are tailored to satisfy the needs of this market niche. For instance McDonald’s provides a playground in most of its outlets, it has eliminated hard plastic chairs replacing them with lounges, provided Disney characters toys and it offered free Wi-Fi in over 11,500 outlets.
Order qualifiers are those benchmarks which a company needs to achieve so that a customer considers it as a possible supplier. Order winners are those benchmarks that make a company win a possible order. Order quantifiers in the case of McDonald’s are; sandwich varieties, staffing based on customers traffic,24 hour operations, promotional packaging among others . Order winning factors are acknowledged by customers as the major reasons why they made an order. In the case of McDonald’s its order winning factors are; great taste, low prices, speed and diversity and globalization as it tailors an outlet’s menu the culture of the region in which it is located
McDonald’s Operational Process
The production process is a step by step plan of how goods/services are created from the time the raw materials comes to the business, through transformation and finally as finished goods/ services. It must be appreciated that McDonald’s consists of a chain of fast food restaurants. Therefore, the operational process involves converting raw material into fast food. This paper will use French fries to illustrate the operational process.
The production process begins with inputs stage. Inputs are all components that are combined to develop the finished product or service. It consists of materials, packaging and customers. Materials are the ingredients that are used in food production including; beef, buns, fish, chicken, milk and salad ingredients among others. The ingredients are delivered to McDonald’s outlets in three sections; chilled, frozen and ambient. FIFO is the inventory system that is used to manage materials. Since most of them are perishable FIFO ensures that they remain fresh. McDonald ensures that its products are 100 per cent natural.In processing French fries the ingredient are Irish potatoes, cooking oil and salt. McDonald’s uses various packaging techniques. Burgers are packed in boxes, drinks are packed in tumblers and French fries are packed cardboard bags. McDonald’s prefers using cardboard because it is clean, safe and it ensures products remain fresh. Besides, cardboard is recyclable hence paints McDonald as ecological and environmentally friendly company. Customers of McDonald are from all ages and families. However, the bulk of its customers are urban working middle class. McDonald’s incorporates the feedback it receives from its customers in its production process to ensure that the final product fully satisfies the needs of its customers. A customer may also specify how they need the ordered item prepared. For example, a customer may indicate that he needs his/her French fries deep fried for a longer period. Employees are also part of the input resources since they need to take customers’ orders in order to ascertain their expectation of the product they have ordered.
The transformation stage is next and it involves adding value to the inputs so as to come up with the finished product or service. At this stage the resources required are facilities and staff. Facilities comprises of kitchen equipment used in transforming the inputs into a final products that will satisfy consumer needs. Examples of facilities are equipment for food processing, food concession and packaging. Employees also play an integral role in ensuring that McDonald’s uses the existing resources to deliver high quality products and services to customers. It is the employees who cook and package the final product, assemble meals according to a customer’s order and serve the customer. In the example of French fries, the Irish potatoes are delivered to restaurants when they are already peeled and chopped into pieces. Therefore, the transformation process is deep frying for some time until the chopped potatoes are changed into French fries. The French fries will then be packed into a cardboard bag and then assembled according to the customer’s order. The customer will then be served by staff.
The final is output. Outputs are the food items and beverages that are sold and served to consumers to satisfy their needs. The final products include; hamburgers, milkshakes, French fries and cheeseburgers, salads, chicken, fish, breakfast sandwiches, beverages and desserts. The available final products are listed in the menu in each outlet. McDonald provides informs consumers on the ingredients and nutritional value of its products through various media. McDonald aims at providing a stress-free and fun environment for customers to eat. For example McDonald’s provides provided toys Disney characters and free Wi-Fi in its outlets.
Inputs Transformation Final Product
Literature Review, Concepts, Frameworks, and Application of TQM
At one point or the other, each and every individual experiences poor quality from employees who are less careful. Poor quality can be in form of late deliveries, wrong orders, or poorly prepared meals. Such experiences make one to shift his or her loyalty from one firm to another. As such, most firms end up losing customers unknowingly due to poor quality of services or goods produced. One may wonder what exactly makes one firm better than the other in terms of service delivery. Well, a myriad of factors including employment of better technology may lead to improved quality and efficiency at large. Nonetheless, it is essential to appreciate the fact that an organization has numerous departments that depend on each other. As such, in order to improve quality at large, there is a significant need to employ an approach that would address all the challenges. Total quality management is one such approach that has been successfully employed towards organizational improvement. Total quality management refers to a management approach that seeks to ensure good organizational performance through satisfying customers. Through total quality management, an organization is viewed as a collection of numerous processes. The management of an organization seeks to ensure continuous improvement of these processes with a main aim of improving the quality of goods and services at large. Total quality management is a management philosophy that enjoys a wide range of research from many people. This is due to the fact that firms that employ TQM have proved successful over years. In this section, this paper seeks to review literature written by various authors while describing at length the applications, concepts, and frameworks of TQM available in general business, and most appropriate for organizations similar to McDonald. Further, this section seeks to discuss the operational benefits that one would expect to see from introducing the concept of TQM in an organization. Lastly, this section seeks to describe the ways in which I feel TQM concepts might develop in the next five years.
Literature Review
, conducted a research with a main aim of assessing whether total quality management is a predecessor of ERP. ERP refers to enterprise resource planning systems which is applied in organizations with an objective of ensuring streamlining business processes so as to facilitate information flow within and outside the firm. Enterprise resource planning, just like total quality management, involves changes in all processes within an organization. Additionally, TQM advocates for a flatter organizational structure that enhances efficient communication within an organization. Similarly, ERP facilitates direct communication which in turn ensures quick reaction to both market and customer needs. According to , total quality management is based on three main principles. These principles include employee involvement, customer satisfaction, and process improvement. , assert that through total quality management, customer satisfaction is deemed as the main objective within a firm. As such, all processes are designed in such a way that customer satisfaction will be realized through production of good quality of services and products. Nonetheless, improved quality cannot be realized without the involvement of employees. As such, employee involvement is also considered as a key principle of total quality management. The management should work hand in hand with organizational development staff members to ensure employee involvement. This can be done through motivation, and continuous training and development.
, points out the kind of leadership that manager s should embrace in order to enforce total quality management. According to , productivity includes a continuous performance improvement which is brought about by team work, creativity, amicable problem solving, dedication, and immense individual creativity. As such, in order to ensure a successful TQM approach, the management at large should ensure behaviour modification and change of attitude among all employees. , argues that while enforcing total quality management, leaders should focus more on corporate performance rather than individual performance. As such, leaders should strive towards achieving human resource development, strategic quality planning, customer focus and satisfaction, and quality operational results. On the other hand, , demonstrates that total quality management is mainly based on customer satisfaction which can be realized through increased innovation and knowledge creation among employees. Accordingly, , points employees empowerment which can be achieved through open communication and sharing of ideas as the main framework behind total quality management. Studies conducted by , indicate that improved performance can be achieved through implementation of 5-S based total quality management. , conducted a research with an aim of verifying the effects of implementing 5-S based TQM in a health care institution. They found out that customer feedback, employee participation, and good leadership are some of the key concepts of total quality management. , argues that a strong evaluation system should be set up in order to keep employees on track. Additionally, they state that continuous training and development is essential in managing change and improvement. , argues that TQM is a top down management approach that is geared towards enhancing flexibility and increased employee commitment. Kirk asserts that extensive training; quality structure and customer identification should form the main framework of total quality management. , argue that there are three main sources of improved performance. These include motivation, information and resources. Therefore, while implementing TQM, managers should focus of the three main sources of improved performance. This will not only ensure employee participation, but also improved quality of goods and services produced. , used a 3-D model to explain how total quality management can be employed. The 3-D model is based on various assumptions which include change of attitude among employees due to motivation, feedback, and acquisition of skills. Lastly, , asserts that TQM considers the effects of individual quality contribution towards the organizational performance at large. Other assumptions include quality improvement which is deemed to be a process of continuous change. From the above cited studies, it is clear that TQM includes a myriad of elements, principles, or rather concepts. These concepts and principles include employee empowerment, customer satisfaction, team work, strategic planning, recognition, and commitment from both managers and employees.
Operational Benefits that may arise from Implementing TQM
Implementation of total quality management leads to numerous operational benefits within an organization. First and foremost, I would expect to see an increase in revenues due to increased sales. Through total quality management, a firm will be able to attract new customers while maintaining the existing ones. As such, there would be increased revenues due to increased sales. Secondly, I would expect to see reduced costs of operation through implementation of total quality management. TQM advocates for continuous training and development of employees. This would in turn lead to less wastage of resources through carelessness which in turn leads to reduced operational costs. Lastly, I would expect to see reduced customer complaints. Customers complain when offered poor goods and services. Nonetheless, TQM seeks to ensure customer satisfaction.
Ways Through which Total Quality Management concepts might develop during the coming 5 years
Total quality management concepts are bound to change over years. This is due to the fact that businesses operate within an ever changing environment which is characterized by numerous changes. In a bid to keep abreast with such changes, firms may be forced to reconsider different approaches to quality management. Firstly, I feel that TQM will shift from the concept of continuous improvement to innovation. I believe that innovation will form the centre stage of TQM since consumers will be more attracted to brand new things which can only be made out of new ideas. Lastly, I feel that total quality management would focus on individual`s contribution rather than group contribution within the next five years.
TQM concepts that can be implemented in McDonalds
Total quality management involves implementation of a range of concepts. These concepts include employee empowerment, customer satisfaction, strategic planning, team work, reduced costs of goods and services, benchmarking, just in time productions, and commitment from both managers and all employees. In this section, this paper seeks to discuss how employee empowerment, team work, and customer satisfaction can be observed in action within McDonalds.
Employee Empowerment
McDonalds is a firm that operates within the fast food industry. There are many other firms that offer similar products such as those of McDonalds. It is, therefore, essential to ensure production of quality goods and services. This can be achieved through employee empowerment. Employee empowerment involves different things such as continuous training and development, motivation through good working environments and better pays, recognition, and sharing of ideas. At McDonalds, employee empowerment can be put into action through training and development. Employees such as cooks and chefs can be trained on new methods of preparing burgers, chips, and other products. This can be done through refresher courses. Additionally, employee empowerment can be enforced at McDonalds through recognition of outstanding employees. Employees who actively contribute to the organization`s success should be rewarded with gifts or better pays. Further, employee empowerment can be enhanced through provision of good working conditions. At McDonalds, this can be put into action through following a strict schedule of work plan. Working in a fast food restaurant can be cumbersome due to the long standing hours one has to endure. It is, therefore, essential to ensure employees have a good rest after work.
Team Work
Teamwork is an essential concept of total quality management. It involves working in groups with a sole purpose of ensuring quality performance. At McDonalds, employees can be made to work as a team. Employees should be divided into different groups within various departments. Each and every group should focus on improved performance through hard work. Consequently, each team should be monitored and evaluated every now and again. Team work not only builds trust among employees, but also facilitates communication and sharing of ideas among employees.
Customer Satisfaction
Customer satisfaction is achieved through production of quality services and goods. It also involves availing goods and services on a timely basis. At McDonalds, customer satisfaction can be realized through production of quality burgers, chips, and other products. Waiters should also be trained on the essence of good listening skills while serving customers. This reduces the chances of serving customers with wrong orders. Moreover, customer satisfaction at McDonalds can be facilitated through provision of quick services. This will prevent unnecessary irritating delays.
Challenges that would have to be overcome for the implementation of these three concepts to succeed at McDonalds
Resistance from Employees
Implementing employee empowerment through continuous training and development may be resisted by some employees. This poses a challenge to the success of total quality management at large. Employees may resist due to lack of motivation and fear of the unknown. It is, therefore, essential to make the employees understand the essence of training and development.
Lack of Corporation
Corporation and commitment should be from both managers and employees. Employees may fail to corporate thus making the implementation of team work impossible. On the other hand, managers may fail to corporate and thus fail to offer a good working environment and motivation to other employees.
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