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Programme: BTEC Higher National Diploma (HND) in Business Unit Number and Title: Unit 61, Facilities Operation

Unit level : Submitted to: Submitted by: H1 Abid Siddique Module Tutor Md. Sultan Mahmud Id: 11127 HND in Business.

Date: 18th January 2010.



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Synopsis: Literature review: Assess the responsibilities of the facilities manager for staff engaged in facilities operation:
Identify the responsibilities the facilities manager has to operational aspects of the buildings: Impact on facilities operation of employers or funding agencies: Assess statutory regulation that affects facilities operation: The responsibilities the facilities manager has towards customer using the facilities in McDonalds restaurant: Health and safety measures that must be implemented: Control systems required for effective facilities operation: System needed to support effective building management: Develop and deploy effective system for processing information and maintain communication: Implement evaluate and review procedures to analyse the quality & effectiveness:

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Appropriate criteria to evaluate the quality and effectiveness of facilities operations: Conclusion: References:

The Success of McDonalds Synopsis:

Type of business: : McDonald's is one the best known brand and leading global food service retailer with more than 31,000 local restaurant serving more than 80 million people in 118 countries each day. It also the leading chain of hamburger fast food restaurant. Some of those operate by the company, some of those franchisees or by affiliates operating under joint venture agreements. McDonalds brand mission is to be our customers favourite place and way to eat, to increase market share, profitability, and customer satisfaction has produced high returns of share holders. McDonalds vision is to be world best quick service restaurant. Being the best means providing outstanding quality, service, cleanliness and value, so that the McDonalds make every customer in every restaurant smile. Im lovin it is the main slogan of McDonalds. Some of its world famous foods are Fries, Bigmac, Cheese Burger, Hambuger, Quarter pounder, Chicken Nugget, Egg McMuffin etc. It has literally changed the Americans eating habits and increasingly the habits of non-Americans. History: McDonalds founded in 1940 by Dick and Mac McDonalds in San Bernardino, in California. Based on their introduction speedee service system they established the principles of modern fast food restaurant in 1948. Business Growth & Geographical Location: McDonalds is spreading its business globally. Every year they are adding many numbers of restaurants in many countries all over the world. McDonalds has more than 31000 restaurant in 118 countries. Besides it has nine major markets in Australia, Canada, Brazil, France, China, Germany, Japan, UK and USA. McDonalds opened its first Restaurant in UK on October in1974 and by December 2004there was over 1330McDonalds operating in UK; every day in the UK, McDonald's serves over 2 million customers by delivering only the highest levels of quality, service and cleanliness. Literature review: Assess the responsibilities of facilities manager for staff engaged in facilities operation: McDonald's are structured along functional lines.

Operations (equipment and franchising) Development (property and construction) Finance (supply chain and new product development) Marketing (sales marketing) Human Resources (customer services, personnel, hygiene and safety) 3

In McDonalds it is duty of Facilities manager to make sure the employments terms and conditions is meeting with the government legislation or not. Like-The national minimum wage, Working hours, Holidays, pay issues, employment condition, Training and development etc However, for an example McDonalds paying the minimum wage of 5.82 to the adult employee in UK. The organization or FM must follow all these regulations in term of employment, staff facilities and so on, there must not any discrimination based on race, colour, age gender, religion, national origin, or physical disability according to the regulations which are under mentioned Gender The Equal Pay Act1970(EPA)(amended 1983) The Sex Discrimination Act(SDA)1975(amended 1986) Disability Discrimination Act (DDA)1975 The Employment Equality(religion or belief)regulations 2003 Employment Equality (age) regulations2006. And many more We may assess it in a different ways by giving a few examples such as if there is not easy access of getting information or training and development system for staff then the organization may fail to utilise the skilled of staff or may lose the skilled staff or if there any thing does not meet with regulation then organization can be sued and will lose reputation, money and many problems can be faced and eventually all these will affect to the business performance of McDonalds. The FM of McDonalds ensures about all those regulations, and McDonalds has the great reputation about recruitment staff respecting with full legislations. There are lot of training and development proceedings McDonalds has introduced for the staff. They are offering the opportunity to develop a career which can take them to the very top. In each restaurant there is a staff room with TV for entertainment, lockers for keeping their own things, computer with internet access and specially www.ourlounge .com website for employees for gathering more information besides under the employees are also provided employee discount card, employee dress etc as an extra facilities, free employee meal. [p1]

Identify the responsibilities the facilities manager has to operational aspects of the buildings: According to the building regulation 2000, the facilities manager must has to have the approved document for using or the building in where the restaurant is. Allocation of space for the restaurant. Like where the restaurant will established the building or the place is properly located for the business or not. Making plan for restaurant space layout, for example, where should be the lobby for customer, kitchen area, front counter, office, staff room, toilet, stock room, freezer room, chiller room etc. Beside FM also set up the objectives of restaurant space lay out policy: such as provide a safe, comfortable and productive environment for all employees and visitors, ensure efficient use of building HVAC, electrical and mechanical system, ensure the new equipment, furniture, machineries does not exceed the buildings HAVC and electrical capacity etc. Ensure the essential services and supplies like- ventilation, temperature, lighting, cleaning, humidity, doors and gates, sanitary convenience, facilities of washing, drinking water, changing clothing, to eat meals, to take rest, lockers to save some

valuable things and so on, according to workplace (health, safety and welfare) regulation 1992 and their associated approved code of practice(ACoP). Carry out the work place risk assessment, fire risk assessment etc. Carry out proper maintenance and repair on time for all machineries, equipment, services and supplies like the Grill machine does not work properly needs to repair, water supply does not work, keep clean of the workplace, waste management etc . Ensure the security system of the building and so on.[p2]

Impact on facilities operation of employers or funding agencies: There are initial and ongoing costs to the ownership of facilities. The facilities manager should be cost-effective in everything he does. It is the facilities managers task to ensure that management understand that cost, a budget is a management tool. Management must understand and provides for those costs, from planning through disposal and thats why in different times, different situations management impose different rules and regulation on facilities operation and changes the rules for facilities operation which impact more or less the facilities operation. As same as for funding agencies for example if any local authority funding any McDonalds restaurant for any kind of special service then they usually impose many rules and regulation and requires much certain facilities which are sometimes impact facilities operation.[p4] Assess statutory regulation that affects facilities operation: There are different kinds of statutory regulation the FM has been carrying out in each restaurant of McDonalds and sometimes affected by those such as Building regulation 2ooo. This includes-write H&S policy, H&S training, display the poster, RIDDOR: the reporting of injuries, diseases and dangerous occurrences, basic welfare facilities, assess risk, notify health and safety executive or local authority about the business (where necessary) and so on. Employers Liability (compulsory insurance) Act 1969. Employers are required by law to insure against liability for injury or disease to their employees, Different kinds risk assessment, like fire risk assessment, manual handling risk assessment, building risk assessment regulation, checklist of risk assessment developed by HSE, building and accessibility regulation, accident or incident report book, H&S audit book. The importance and value of all statutory regulations is unenviable and indescribable for people and businesses (organizations.) Sometimes the local authority changes some regulation; expect some specific more facilities from organization or in term of health and safety audit the authority found poor H&S or something does not meet the requirements of regulation then the authority may compensate organization may take further action which will eventually close the organization.[p5] The responsibilities the facilities manager has towards customer using the facilities in McDonalds restaurant: McDonald's mission statement is to be its customers' favourite place and way to eat. The company aims to provide its customers with food of a high standard, quick service and value for money. 5

Thats why customer giving the continuer feedback which is the key point of their continuous success. Each restaurant provides a nice, comfortable, safe, secured, easy accessible and sophisticated lobby, as a customer facilities, where customers can have a nice sitting place, to take rest and eat, baby chair, toilet and washing facilities for refresh, they can enjoy listening to the music, where one or more employees always engaged to taking of customers, keeping up the cleanliness etc. Now there are lot of duties facilities manager has towards customers such as fm has to ensure health and safety issue is up-to-date, enough posters that indicate the assembly point, fire exit, even ancillary services in case of emergency, provides available information, make the easy system for getting feedback, suggestion, even complains to identify what more the organization need to cover, develop or where are the lack ness in customer service. McDonalds facilities manager survey the matter of customer service, identify and assess the new needs, expectation and reaction, for example now a days many number customer expect the each restaurant the should be automated and the Fm has been taking it very seriously.[p3] Health and safety measures that must be implemented and documents: Safety is the first concern in facilities operation. Besides COSHH 2002 regulation, RIDDOR regulation 1995 and others, the six-pack regulations introduced together in 1992 and must be implemented. This areManagement of health and safety at work regulations1999, Work place (health, safety and welfare) regulations 1992,Health and safety(display screen) regulations19992, Manual handling operation regulations 199, Provision and use of work equipment regulations1998, and Personal Protective Equipment at work regulations 1992. for example under the Work place regulation(HSW). Organization with five or more employees must prepare a health and safety policy, listing the hazards present in the workplace and the statement signed by the CEO. Must carry out all type of risk assessment, by following the proper risk assessment procedures and record the findings to take initiatives to mitigate, Making annual health and safety report book (including accident report book, incident report book.) to account for compliance with statutory regulations and health and safety measures. As McDonalds employs 5 or more people thats why it required a written health and safety documentation (policy). The Law requires that restaurants have (and display on site) a written health and safety policy statement. Linked to this statement will be the arrangements that exist within organisation for dealing with health and safety. The detailed document of occupied or owned the building [p6, p7]

Control systems required for effective facilities operation: Each McDonalds restaurant is structured as an independent business, with restaurant management responsible for accounts, operation, inventory, control, community relation, training and human resources. Budgetary control system ( to controlling and monitoring expenditure before and after commitment to prevent under-or over-expenditure.) Control system for property and premises cost this includes all types of building service maintenance, utilities, cleaning, security. Stock control system, food waste control system base on both production and employees meal Labour cost control system, machineries and equipment buy and maintenance cost control system for example working hour given for employees, control of proper scheduling system.

Control system for contributing to health safety and other statutory regulation according to the budget/ guideline of top management. Proper planning system of using manpower and some others. All above mentioned controlling system need to maintain properly and must be cost effective in all aspects by the facilities manager for effective facilities operations.[p9] System needed to support effective building management: A recommended system for this aspect is (BMS) a building management system, its a computer based control system installed in building to controls and monitors buildings mechanical and electrical equipment such as ventilation, lighting, power system, security system. There are lot of this system for building tenants, owners and in operation, tenants benefits for example: effective monitoring and targeting of energy consumption. Benefits of Buildings owner for example, effective response to HVAC- related complaints, central or remote control and monitoring of building, individual tenant billing for services facilities, higher rental value, increased level of comfort and time saving and so on. As a example in operation benefit, low operating cost, efficient use of building resources and services, high productivity, rapid alarm indication and fault diagnosis, documentation etc. Now a day many of McDonald restaurant have been taking initiative to implement this beneficial system and many of already have implemented.[p10] Develop and deploy effective system for processing information and maintain communication: McDonalds uses IT system for maintaining communication and processing information such as internet, e-mail, telephone, multimedia, VOIP, voice, text, electronic data interchange (EDI) system etc. Technologies are developing every other day and this is one of the great reasons of increasing competition for businesses. McDonald always keeps a strong eye to technologies and already has been developing fully computerized maintenance management information system The fm has chooses the CAMIS through a rigorous studying a CAFM portfolio system gathered different references from exiting user and checked the system compatibility is right as required. for getting expected benefit which is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management, which provides the information necessary to manage an organization effectively.[p8]

Implement evaluate and review procedures to analyse the quality & effectiveness: Benchmarking: For a fee, facilities manager can obtain data relating to cost and possibly performance characteristics of peer organization for benchmarking, even a number of organization exchange best practices, cost and performance benchmark targets via a club. Customer feedback: Through a survey on customer feedback an organization can evaluate the quality and performance of facilities operation of an organization. Consultancy firm: Consulting with a consultancy firm an organization can evaluate and justify the organizations facilities operation effectiveness and quality. Even independent audit can carry out as well as survey on publication of that organization.

After evaluation the effectiveness and quality of FM operations through benchmarking, customer feedback and others, organization or FM should review procedures of in term of cost effectiveness, budget, and requirements of organization. It involves auditing in relation to cost and level of performance. The objectives of facilities operation can be changed or developed before implementation. [p12] Appropriate criteria to evaluate the quality and effectiveness of facilities operations: Quantitative: Relating to characteristics of the building or business that can be readily measured for example, floor area, window area, number of covers served in restaurant. Qualitative: characteristics such as the location of the building or the specific preferences of the organization. In the respect McDonalds always prefer most busy and attractive place of cities, such as railway station, famous supermarket etc. Objective: The objective of the company is to expand their leadership position through convenience, superior values and excellent operations. [p11] Conclusion: Through best facilities operation, strategies, skilled staffs, low cost and quality foods make McDonalds strong brand name in the world. This does not come one day. Still they are popular because they always monitor effective facilities operation, the social change, economy change, technology, satisfy the customer according their needs and demands.


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