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Operations management is in regard to all operations within the organization Related activities include managing purchases. . quality control. These activities are also associated with Product and Service Management.Operations Management Operations management focuses on carefully managing the processes to produce and distribute products and services. production and distribution.that is. storage. development. A great deal of focus is on efficiency and effectiveness of processes. logistics and evaluations. Overall activities often include product creation. a product line. inventory control. However product management is usually in regard to one or more closely related product .
McDonalds History McDonald's Corporation is the world's largest chain of fast food restaurants. serving nearly 47 million customers daily.000 local restaurants serving 52 million people in more than 100 countries each day. It is the leading global foodservice retailer with more than 30. .
the ninth McDonald's restaurant overall. The business began in 1940. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. in Des Plaines. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee. California. Illinois on April 15. with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc." Speedee was eventually replaced with Ronald McDonald in 1963. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965 . 1955 .
Century Insurance Ltd. Express Newspaper. McDonald's Pakistan opened its doors in September 1998 at Lahore and presently operating in six major cities with a network of 20 restaurants.McDonald's in Pakistan Aiming to be the world's best quick service restaurant. With a strong belief in the Ray Krock phrase. Lakson Tobacco Co. Colgate Pakistan Ltd. Cyber Net and various others businesses. with a Head Office in Karachi and a regional office at Lahore. McDonald's Pakistan is a part of the Lakson Group of Companies. Lakson Group also owned. McDonald's Pakistan has an aggressive plan to expand in all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick service restaurant experience to our customers. . ³ When you are green you are growing´.
ORGANIZATIONAL STRUCTURE The company is basically organized in a lateral form where the CEO is at the top while management of various departments is outsource. . identifying opportunity growth for the company. For instance: Consulting: this groups looks after the financial position and anticipate future financial status of the company. It deals with development and progression strategies.
.Overview Managing a company with the size of McDonald's is a mammoth task. As a result. managing its day-to-day operations is a major challenge and that the information and communications technology requirements and infrastructure should be well placed.
it used lots of unskilled workers. Instead of using a skilled cook to make food quickly. however. and good cooks were in high demand. was completely different. The Speedee system. . some restaurants did make food pretty quickly. specific step in the food-preparation process. each of whom did one small. Being a short-order cook took skill and training.Background to McDonalds operations management Before the McDonald brothers invented their fast-food production system. These restaurants employed short-order cooks. who specialized in making food that didn't require a lot of preparation time.
the Speedee kitchen had: A very large grill where one person could cook lots of burgers simultaneously A dressing station where people added the same condiments to every burger A fryer where one person made french fries A soda fountain and milkshake machine for desserts and beverages A counter where customers placed and received their orders . Instead of having lots of different equipment and stations for preparing a wide variety of food.The McDonald brothers' changes also applied to the design of the restaurant kitchen.
Operations and managing things at McDonalds When you visit one of them and go inside. and someone hands it to you through a window The food arrives individually wrapped and in a bag or on a tray You can eat most of the food without using a knife or fork The food is relatively inexpensive Individual restaurants in the same chain physically resemble or are identical to one another When you visit different restaurants from the same chain. you almost always place your order and collect your food at a counter When you drive through. you place your order at a speaker or a window. the menu and food are pretty much the same .
The employees in different restaurants follow the same instructions for cooking. But in general. The broiler cooks the patties on both sides simultaneously. dressing and packaging the food. . walk-in freezers. There are several reasons behind this: The food itself is mass produced in a factory and then frozen. The factory adds artificial and natural flavors to the food to make sure it all tastes the same. food from a particular chain tends to taste the same no matter which restaurant you visit. Different regions might have special dishes on the menu. and different countries might have different items and recipes depending on the local culture. Cooks reheat it rather than making it from scratch. The equipment in the kitchen cooks all of the food for the same amount of time. in some chains. and the conveyor belt makes sure they're cooked for precisely the right amount of time. For example. Restaurants store this frozen food in large. a conveyor belt carries hamburger patties through a broiler.
Often. Warehouses store enormous amounts of everything a restaurant needs. The chain can keep its entire inventory in several centralized distribution centers rather than in each individual restaurant. The warehouses then ship supplies to each restaurant by truck. utensils and cleaning supplies. is centralized rather than handled by each restaurant. paper products. the chain can negotiate lower prices than restaurants could on their own. . The chain can also purchase supplies for all of its restaurants at once rather than having each restaurant find its own suppliers.The Processes The mass-production process requires each restaurant chain to have a distribution network to carry the food to every restaurant. Since it's buying in bulk. this distribution process is the responsibility of a distribution company. including food. not of the chain itself. Using this sort of network has several advantages. Warehousing and distribution. just like the management of the chain.
utensils. cleaning supplies and other necessary items. which ships it to them. They then order everything the restaurant needs from the distribution center. . In other chains. this process is automated . wrappers. In some chains. cups. or the distribution center ships the necessary items on a regular schedule instead of waiting for a request from the restaurant.a computer keeps track of what the restaurant has and should have on hand. managers track the restaurants' inventories of food.
. This have been able to decrease the constraints within the industry. This had been done with the view to increase efficiency of the supply chain in terms of capacity. The change in process of manufacturing required training as well. This system has been effective because it has been able to optimize the need of the company. One of the first steps that it proposes has been to innovate the process of manufacturing and logistics. fulfilling the work time constraints at the various outlets. McDonalds is always keen to take charge of the crucial task of turning the company around to meet customer demands. technology selection and buying policies.
The company caters to a large consumer market with varying tastes and thus cannot afford to introduce products without familiarizing itself with provincial preferences in food.Strategy McDonalds does not believe in opening its restaurants without any knowledge of the local culture and tastes. it does not create rifts between foreign governments and McDonalds officials. McDonalds distributes its products in foreign locations with the help of franchisees who are well aware of what works in their country. This is an extremely intelligent distribution method because on the one hand. For this reason. and. . on the other hand. it helps in providing people with the kind of products they desire. It is important to understand that McDonalds does not change its basic product range for any country but tries to introduce certain changes in secondary products in order to make them more suitable for local tastes.
amongst others. The increasing popularity in new markets has positioned the firm for continued growth in market share and customer buying power. with continuous increases in exposure in new markets. The McDonalds strategy map encompasses four key perspectives: 1) Financial. which is to become the most positive dining experience in the world . 2) Customer. These perspectives have evolved over time into a well-defined vision for the corporation. and 4) Learning. The firm has grown to become one of the most popular food brand names in the world.The Hype McDonalds possesses a highly visible and popular brand image around the world. such as Asia and Europe. 3) Internal Process.
companies engaged in delivering pizzas. Kroc showed the world how to apply sophisticated process management to the most prosaic endeavors. Today. and then continually reassemble and fine tune the many steps until the system works without a hitch. break the labor into constituent parts. profits may flow. To succeed the McDonald's way.Every one¶s Lovin¶ it The widely imitated success of McDonald's offers an excellent example for today's managers and executives searching for greater production efficiencies. To the degree that such operations maintain quality control. processing insurance claims. or selling toys benefit from the kinds of systems that Ray Kroc pioneered. . and cherish customer satisfaction. companies must define the basic premise of the service they offer.
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