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The purpose of this project to know that how Operation Management Strategies & Total Quality Management Strategies are made, implemented and how they impacts on the organization. For this purpose we selected McDonalds to obtain necessary data and its analysis. With the completion of this project we have learned that how Operations Management Strategies & TQM Strategies are implementing and its impacts on the organization. Operations Management Strategies plays very important role in achieving an organizational goals. By using these strategies an organization controls and maintains all its operations. So these should make after a comprehensive marketing analysis, according to capabilities and resources of an organization. Total Quality Management enables an organization to have improved products, high and competitive product environment and customer satisfaction Operations Management Strategies in McDonalds are being made by top management. These strategies are implements in all branches under instructions of top management, which are distributed to all branches in written form. So there are operations mangers in all branches that control all operational activities. These strategies impacts positively and helps to achieve the goals.
By Naveed Aslam Gondal
By Naveed Aslam Gondal
e. Training 3. Process strategy 4. Customer Satisfaction So we will analyze how these strategies are being implemented in McDonalds. Layout 6. Design of goods and services 2. Methodology In this project we studied all the above mentioned operational strategies and tried to get the theme of these strategies. Maintenance Some features of quality management strategies are: 1. and how these strategies are implemented. Supply chain management 8. McDonalds. By Naveed Aslam Gondal 3 . Human resource 7. Continuous Improvement 4. Inventory management 9. Also got some information from internet and then by analyzing the base of these strategies we implemented our knowledge in practical working environment of the organization i. Scheduling 10. Location strategy 5. Managing quality 3. especially in McDonalds. The basic Operations Management Strategies are:1.Introduction to Project The purpose of this project is to know how the Operation Management Strategies and Quality Management Strategies occur in Fast-food sector. Product Quality 2.
By Naveed Aslam Gondal 4 .
McDonald's a Global Phenomenon Formed in 1954. new employees today are our leaders tomorrow. Ray Kroc. Ronald became recognized as “the smile known around the world. Later. and a family of great people fuel our success. McDonald's brand is the leading global foodservice retailer with more than 30. The rich history began with founder Ray Kroc's strong foundation. For starters. The same holds true today. and it’s this kind of philosophy that will launch your career. McDonald’s believed in forging new opportunities. our founder and inspiration. broad vision. he is as recognized as Santa Claus. Illinois. Ronald McDonald proved another huge idea from a set of wonderful folks. By Naveed Aslam Gondal 5 .From day one. As you can see. McDonald's vision and commitment of our talented executives is to keep the shine on McDonald's arches for years to come. Introduced in his first TV appearance.” Today. big ideas. It’s true. In yet another example of empowered big-thinking.000 local restaurants serving nearly 50 million people in more than 120 countries each day. parlayed exclusive distribution rights of an innovative milkshake maker into the first-ever franchise in Des Plaines. franchisee Jim Delligatti invented the Big Mac and changed hamburgers forever.
Values Leadership Behaviors 3.000 Pakistanis and each store is managed by Pakistani managers. 30 billion in the country and payment of taxes and duties amounting to more than Rs 10 billion Since McDonalds is doing so well in Pakistan they will continue to grow and add more stores in more cities in the future. Learning Development Personal Growth 5. Resources Recognition 2. The Team To realize the McDonald's service vision. Our strength for making our strong team players to shine under the Golden Arches lies in the People Promises. Competitive Pay Benefits 4. McDonald's started its operations in Pakistan in September 1998 and is a leading fast food service retailer for its valued customers. the response to McDonalds coming to Pakistan has been overwhelming. USA and a local partner making it a 100% owned and operated Pakistani company. In the past five years. With a strong belief in the phrase when it's green it's growing. we focus to deliver: McDonald's 5 People Promises 1. McDonald's Pakistan is growing with the focus to provide friendly and quick service experience to our customers. They have also contributed in other ways than food service. we believe in strengthening our team and ensure to deliver the right skills and knowledge to the right person for getting the right job. McDonalds has investment of over Rs. Today Lakson Group Companies has taken over McDonalds Corporation. McDonalds located in Pakistan are currently employing about 3. Resources to get the Job Done By Naveed Aslam Gondal 6 . Today millions of Pakistanis place their trust in McDonald’s everyday to provide them with food of a very high standard as well as good service.McDonald's in Pakistan Aiming to be the world's best quick service restaurant experience.
McDonald's Mission McDonald's mission is to be our customers' favorite place and way to eat with inspired people who delight each customer with unmatched quality.we invite you to be the part of this winning team and give yourself an opportunity to grow with the family of people striving to create smiles on the faces of millions of people everyday.. cleanliness and value every time . Management Development Program McDonald's Management Development Program provides with an opportunity to develop your knowledge base with hands on practical exposure to turn into a diversified business entrepreneur. And with the recent job openings McDonald's welcome you to the world of opportunities under the golden arches!!! By Naveed Aslam Gondal 7 .. service.
By Naveed Aslam Gondal 8 .
These are explained as under: Goods & Service Design The tangible goods and intangible services are provided by McDonalds and the homogeneity is maintained globally. Strategies a) Advertisement: McDonalds implements this strategy by making aware people about their products and services through advertising on TV. newspapers.Operations Management in McDonalds From our research we came up with the following operation management strategies being implemented by McDonalds: • • • • • • • Goods & Service Design Quality Location Selection Layout Design Human Resource Supply Chain Management Maintenance The McDonald has the above stated strategies out of the 10 OM strategies. brochure. compared to international level. By Naveed Aslam Gondal 9 . The goods and services are provided on in a package that’s why the company lies in 50% in goods production side and 50% in service providers. b) Customers Relationship: The personals of customer relationship department convince the people and customers about services. In Pakistan the same level of services is offered by McDonalds.
So it helps in expansion of business. Informing the customers about energy balance and fun. Outside the Organization: Improving social life: These strategies are improving quality of life as well as the social and environmental awareness in general public. including new salad. so that the customers can feel comfortable fitting any of the food products into their personal eating styles. A lot of expenditure is made in the quality maintenance and improvement researches. 2. high-quality food products and portion sizes.e. Quality The company really maintains its product quality. fruit. i. strategies. Providing nutrition information to help customers make smart choices that address their individual lifestyle needs. and the services offered to customers sharing in revenue growth of the country. By Naveed Aslam Gondal 10 .Results 1. Motivating kids to be active by engaging Ronald McDonald as ambassador for play and activity. making strengths. McDonalds maintains the following quality rules: • Maintaining strict standards of quality and safety. customers are satisfying. practical ways to incorporate physical activity into their everyday lives. So it helps to make further plans. b) Business Development: As customers become attractive therefore McDonalds opens new branches. Inside the McDonalds: a) Achieving Objectives: By implementing this strategy McDonalds is achieving its objectives. and vegetable offerings and Happy Meal choices. expansion of franchises etc. • • • • Serving a variety of nutritious. it’s earns profit.
• Sponsoring major sports competitions.e. By Naveed Aslam Gondal 11 . capture the customers in the amusement parks and in markets such as the branch in Fortress Stadium. Strategies McDonalds makes and implement its location strategy in following way: a) Business Areas: They open their branches in business areas where they target the corporate people and the working class to dine in and have their timeout for breakfast and lunch. i. b) Play Lands and Shopping Areas: They try to introduce their services according to target customers. Location Selection Generally it has been observed that McDonald follows the different locations and outlets according to the specific area. b) Customer Gaining: Due to the good environment the company has an ability to gain their customers to their locations. Results a) Convenience: Customers feel comfort ability when a branch is in near vicinity to their work place. including the Olympics and the FIFA World Cup soccer matches. Model Town link road etc.
By Naveed Aslam Gondal 12 . service and product layout. interiors and exteriors etc. It may vary according to the premises size. comfortable environment for both employees and customers. The efficiency level of personnel also leaves a good impression on the minds. b) Customer Satisfaction: Through a universal image. Strategies a) Exterior: McDonalds sets its premises in proper manner to handle any number of customers easily.Layout Design This strategy refers to the overall working and general environment offered by McDonalds. satisfy their customers. layout design and the brand image in the minds of customers results in customer satisfaction. The building design is standard world wide but it may be have some difference in size or in exterior according to the location. Results a) Brand Recognition: Homogeneity in layout design and franchise settings strikes a clear brand image in the minds of the customers. It enables them to save time. It includes the personnel level. b) Interior: McDonalds uses the same interior pattern as it’s used internationally.
Proper Utilization of Resources: As there are many experts in different areas. Separate Departments for Different Functions: McDonalds has different departments for different functions. They appoint a marketing expert for marketing. Marketing department consists of marketing experts who perform marketing analysis and finance department consists of finance experts who arrange and manage finance etc. Right Person on Right Job: McDonalds allocates its human resource in different areas according to the abilities. Competency: McDonalds trains it’s employees of all departments to enhance their capabilities and to improve their skills and therefore employees provide right product By Naveed Aslam Gondal 13 .Human Resource Being partially in pure services and goods production sector. Employee’s Job Satisfaction: McDonalds provides training opportunities to its employees to improve their skills. qualifications and experiences of employees. Trainings: McDonalds provide training opportunities for its employees who need training in a particular area. So it results in enhanced employee performance and they become more interested to work in good manner. which gives a good reputation to the organization.g. So it enables the organization to achieve its goals efficiently. accountant for accounts etc. so they use all available resources and opportunities properly. which satisfies customers and they achieve their goals successfully. McDonalds exercises a good strategy for its human resources e. They provide services to their customers efficiently.
so they can handle their customer and work as well which helps to maintain their status quotas. the human resources used within the organization. McDonalds maintain no inventory levels for perishable goods. McDonalds is among the companies which are partially involved in the production of goods and By Naveed Aslam Gondal 14 . its location and layout designs. Supply Chain Management These strategies determine what is to be made and what is to be purchased. So it enables the organization to compete in the market. They train their employees of all department6s regarding their job. So McDonalds follow these strategies and have a just-in-time inventory system. Suppliers The major suppliers of McDonald’s in Pakistan are as follows: • • • • • Dawn Breads for Buns Choudhry Dairy Limited for dairy products Walls Ice Cream Coca-Cola Ltd.to right customers on right time. Which means that the orders are placed as the raw material comes to near finish. for drinks Pakages for packing Maintenance The overall maintenance process of McDonalds is that they emphasize on the maintenance of the product quality.
By Naveed Aslam Gondal 15 .services. so a proper maintenance system within the organization strengthens the goodwill and reputation.
By Naveed Aslam Gondal 16 .
All nutrition information is based on average values for ingredients from McDonald’s suppliers throughout the world. product testing and sources of supply. Popular kid’s meal choices: • • Happy Meals Mighty Kids Meals The nutrition information is derived from testing conducted in accredited laboratories. Variation in serving sizes. Therefore McDonalds works a lot in the quality improvement of its goods by improving ingredients and nutrients of the food stuff. preparation techniques.Total Quality Management Management of an entire organization so that it excels in all aspects of products and services that is important to the customer. Product Quality The ability of a product or service to meet customer’s needs is termed as quality. training. So McDonalds also practice the strategy of total quality management and tries to enhance its efficiency & affectivity level by working in different areas such as continuous improvement. published resources. and customer satisfaction. or from information provided from McDonald’s suppliers. None of our products are certified as vegetarian. The nutrition information is based on standard product formulations and serving sizes. By Naveed Aslam Gondal 17 . This information is correct as of January 2007. Please check these listings regularly as ingredients in menu items may change. as well as regional and seasonal differences may affect the nutrition values for each product. quality of goods and services. we have consolidated all allergen information into the ingredient statement for each menu item so that you have one current source of information. In simple words we can narrate total quality management as a continuous quality improvement process. Some recent nutrient’s quality improvement information is as under: • For people concerned about food allergies.
This continuous improvement also includes some other factors like employee empowerment.Training In the next step of TQM. By Naveed Aslam Gondal 18 . Continuous improvements fulfill the needs of the customers according to their desires or requirements and also make its products more competitive. And all the other staff is trained accordingly. The improved quality standards. Continuous Improvement The quality management strategies of McDonalds for product quality improvement and employee training and development put the company on the road of continuous improvement in all its functions. The objective of training their human resources is to create a balance in the overall working of employees.g. Customer Satisfaction McDonalds pays a lot of attention on the satisfaction level of its customers. e. In McDonalds nearly every employee is given training for its work. floor manager is polished against his degree in hotel management. well trained employees and a continuous learning desire of McDonalds results in increased level of satisfaction of the customers. Like when the quality is improved and the personnel attending the customers is well trained and the overall service environment is improved then there is no room left for customer dissatisfaction. McDonalds puts it attention on its human resources. the cashier is trained for all the cash handling. benchmarking a quality standard & maintaining just in time inventory system etc. Thus they try to create a connection between the quality of a product and the ability of the employees.
By Naveed Aslam Gondal 19 .
After the analysis of our project regarding the application of Ten OM Decision and TQM we have concluded our report as under: • • • • • McDonalds is maintaining its product quality according to the international standards The customization of the product and services according to the culture of Pakistan has resulted in customer satisfaction McDonalds has properly covered the business areas with in cities e. Domestic Cricket Tournaments.g. Lahore McDonalds maintains a good environment in every premise. By Naveed Aslam Gondal 20 .g. Suggestions In the end of our report we have following suggestions: • • • • McDonalds should revise its product prices. Company should work on all of its products There is still a lot of opportunities for McDonalds to increase number of outlets McDonalds in Pakistan should follow its international trend of sponsoring mega events e. McDonalds has a learning environment for employee development and customer satisfaction.
mcdonalds.answers.References: www.com/what_is_TQM Bibliography Operations Management by Jay Heizer & Barry Render 7th Edition By Naveed Aslam Gondal 21 .com www.mcdonalds.com.pk www.
By Naveed Aslam Gondal 22 .