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Study into Total Quality

Management of McDonalds
Introduction
The father of the quality movement which is W. Edwards Deming introduced the
concept of management named Total Quality Management (TQM). This
approach management originated in apanese !ndustry in the "#$%&s and
'ecame popular in the West since early "#(%&s. TQM is a system for a customer
focused organi)ation in continual improvement that involves all employees of all
aspects of the organi)ation. Employee involvement* focus on the customer*
'enchmar+ing* and continuous improvement are the four significant elements of
TQM. ,esides* there are some management techniques which involve in the
implementation of TQM* such as quality circles* -i. -igma* reduced cycle time
and continuous improvement
Employee involvement is creating an environment for employees as to have
impact on decisions ma+ing and actions which can affect their /o's.
0ocus on the customer
1ustomer is the only element who determine the level of quality and the
worthwhile level from all the efforts which organi)ation do to foster quality
improvement* training employees* integrating quality into processes
management.
,enchmar+ing
,enchmar+ing is the process of comparing one2s 'usiness processes and
performance to industry as to learn and practice from other industry for achieving
the 'est performance.
1ontinuous improvement
The process which involve ongoing efforts to improve the system* products*
services or process to achieve improvement in an organi)ation and company.
Quality circles
3 quality circle is a group of volunteer form 'y wor+ers under their supervisor
who are trained to identify* analy)e and solve wor+ related pro'lems as to
improve the performance of the organi)ation.
-i. -igma
-i. -igma is a management strategy which use to see+ for improvement of the
quality of an organi)ation process outputs 'y identify* removing the causes of
errors and minimi)ing varia'ility in 'usiness processes.
4educed cycle time
!t is refer to the step ta+en to complete a 'usiness process.
5ur group is doing the research on McDonald&s TQM. McDonald 'eing
recogni)ed as a premier franchising company all over the world in the form of
fast food service restaurant which serve the World 0amous 0ries* 6am'urgers*
1hic+en Mc7uggets* Egg McMuffin and as well as the 0amous ,ig Mac
(ham'urgers).
!n "#8%* McDonald&s was open with the name McDonald&s ,ar9,9Que restaurant
on the 0ourteenth and E streets in -an ,ernardino* 1alifornia 'y 4ichard and
Maurice McDonald&s. 3t the 'eginning* it is a car9hop service restaurant with a
typical drive9in featuring large menu. 6owever* McDonald&s developed as an
international recogni)ed company ever since 4ay :roc* the distri'uter of
Multimi.er (Mil+ -ha+e)* who was fascinated 'y the operation of the two
McDonald&s 'rothers and acquired the franchising right from them to run
McDonald&s restaurant in Des ;laines* !!!inois in "#$$.
7owadays* e.ceed <$= of McDonald&s restaurants worldwide are operated and
owned 'y independent local men and women where serving more than >% million
people in ""< countries each day in the world largest restaurant organi)ation*
McDonald&s.
1.0 Total Quality Management (TQM) of
McDonalds
1.1 Employee Involvement
Total Quality Management (TQM) programs are an important and prominent
approach to management. 7owadays* most large corporations have a program
that incorporates some of the practices and principles of total quality
management. 5ne of the most important principles of TQM concerns employee
involvement or often called as empowerment. !t is common for a TQM program to
state that employee involvement is very important to its success.
0or McDonald2s* total quality management (TQM) involves that the employees
are at wor+ on time* are neatly dressed* and are clean. The employees must
ma+e sure that the customers constantly receive safe food* which implies that the
employees must wash their hands often to remain clean. Moreover* the
employees must follow certain -tandard 5perational ;rocedures* so the
customers always receive e.ceptional quality and service. This includes the
employees using plastic gloves when they prepare the food* that the meat and
fries are properly fried* and that the vegeta'les are thoroughly washed when
used in the food. 3nother TQM is that the employees rely on teamwor+ and high
energy to get the /o' done* so that the customers do not have to wait long for
their food. 0urthermore* McDonald2s management emphasi)es that their
restaurants should 'e clean. This involves that the restaurants are tidy* spar+ling
and spotlessly clean. 3s McDonald2s illustrates the quality is that the employees
delivers fast* accurate and friendly service with a smile.
0or TQM programs that do not have management commitment and employee
involvement are 'ound to fail. This will contri'ute to poor 'usiness results and
employee turnover. 6igh turnover rates are a challenge for any company in the
food service industry* including McDonald&s. ,oth managers and academics
'elieve that* with commitment from senior management* 'y involving employees
in pro'lem solving* decision ma+ing* and 'usiness operations* performance and
productivity will increase. Employees should 'e encouraged to control their
destiny and participate in the processes of the organi)ation. To 'e effective*
employees should 'e given power* information* +nowledge* and rewards that are
relevant to 'usiness performance. The 4estaurant ;eople -trategy is designed
to offer a compelling employment value proposition 'y providing unique 'enefits*
training and opportunities that meet the needs of today&s wor+ers. McDonald2s
'enefits program is designed to attract* retain and engage talented people who
will deliver strong performance and help McDonald2s achieve our 'usiness goals
and o'/ectives. These 'enefits include health and protection such as employee
and dependent life insurance* dental* travel and 'usiness travel accident
insurance? pay and rewards such as 'ase pay and incentive pay* company car*
profit sharing* paid holidays and vacation* educational assistance and several
other 'enefits. This will help in higher levels of employee commitment in the
countries where the company operate* which in turn* will continuously improve
employee retention rates.
The most attractive side of McDonald2s2 activity is the training that stands as
'ac+ground in every single employee. McDonald2s corporation started his fortune
training people on how to 'e +ind* fast* precise and effective. There is a world9
famous 6am'urger @niversity which is near'y the headquarters 'uilding* in 5a+
,roo+e* !llinois* and serves as a training campus for restaurant managers and
company leaders. ,ecause of McDonald2s international scope* translators and
electronic equipment ena'le professors to teach and communicate in AA
languages at one time. McDonald2s also manages ten international training
centers* including 6am'urger @niversities in England* apan* Bermany and
3ustralia. Today* more than $%*%%% managers in McDonald2s restaurants have
graduated from 6am'urger @niversity. McDonald2s 'elieves that his quic+9
service format would 'e lost if service at the order des+ was not courteous and
efficient* to avoid this pro'lem some detailed video tapes have 'een created to
train every single wor+er who had to have direct contact with the customers. The
tapes cover every aspect of dealing with the customers during his "$ seconds at
the counter. 1rewmen are instructed to initiate each order with a polite questionC
2May ! have your order* pleaseD2 The success of these service methods cannot
'e questioned.
1. !ocus on t"e customer
1ustomers are the one who consume goods and services offered 'y
organi)ations or companies. !n other words* all goods and services were
provided as to fulfill the demand and the needs of consumer. ,esides that*
customers also are the only one who ran+s the effort and measurer of the
satisfaction level of the goods and services offered 'y the organi)ations or
company. Without customers* the efforts of managing and operating the
organi)ations or company will 'e wasted. Therefore* focus on the customer is an
element to measure the total quality management of the organi)ation or
company.
McDonald&s 'rand mission is Eto 'e our customers& favorite place and way to
eatF. McDonald&s operators* suppliers as well as employees cooperate to achieve
customers& need in McDonald&s unique ways. They also have the 'est ideas with
'oth large scale efficiency and local style through the most dominant grouping of
entrepreneurial spirit and -ystem wide position around their ;lan to Win.
McDonald&s provides the customers with high quality of food and 'etter9quality
services in a friendly* hygienic and en/oya'le environment at a great value as to
ma+e their customers feel good when having McDonald&s foods and 'everages.
McDonald&s ta+es into account of the customers& nutrition. 4esearches had 'eing
carried out to measure and create a menu which match the daily nutrition of their
customers. !n this 'usy lives nowadays* McDonald&s concern with the calories
consuming and other diet9related concern from the foods they provide as they
want their customers to stay within their goals for the day. ,esides* McDonald&s
aim to inspire and motivate people to live 'alanced* active lives with their
,alanced* 3ctive Gifestyles (,3G) efforts 'y 'ring in the glo'al theme which is
Eit&s what ! eat and what ! doF. 0urthermore* McDonald&s introduced children&s
nutrition meal named 6appy Meals which were originally designed for young9age
children in suita'le portion si)es with essential nutrients such as protein* calcium*
iron and vitamins ,.
McDonald&s ham'urger patties are made with "%%= @nited -tates Department of
3griculture (@-D3) inspected 'eef in @.-. the ham'urger patties only coo+ and
prepared with salt and pepper which without added any preservatives and fillers.
,esides* McDonald&s ham'urger 'uns are made from 7orth 3merican grown
wheat flour * the world famous 0rench fries are made from potatoes and coo+ed
in a canola9oil 'lend. To ensure customers are under protection and satisfaction*
McDonald&s improve their food safety and quality standard to the highest ran+ in
the industry. They source their ingredient from suppliers that hold on to strict
standards for food safety and quality* including 'ehaves a controlled* well9
maintain and clean environment throughout their entire supply chain. They
conduct stringent procedures for handling* storage and minimi)e e.posure which
will contri'ute to the presence of microorganisms as to maintain the quality of
their food.
0urthermore* McDonald&s approach to environmental responsi'ility over the pass
thirty years* they come out with the solutions that are good for their 'usiness
system and also to the world in which they operate. The new environmental
responsi'ility of McDonald&s is The A%"% Blo'al ,est 5f Breen. This is a
progress that demonstrated on multiple fronts including energy* pac+aging* anti9
littering* recycling* logistics* communications* greening the restaurants* greening
the wor+place* sustaina'le food and suppliers leadership.
!n addition* to enhance the image identifying of McDonald&s in customers from
adults to +ids* McDonald&s introduce a representative character named H4onald
McDonald&* the 1hief 6appiness 5fficer of McDonald&s. 4onald was 'orn in "#>I
and /oin McDonald&s as goodwill officer at the same year. 4onald appearance is
a clown who wears long sleeve shirt with red and white striped* yellow /umpsuit
with matching red and white striped high stoc+ing and a 'ig red shoes. 4onald&s
/o' is to entertain the customers and 'ring fun to their lives as he 'elieves that
life is all a'out having a good time. 6e also loves to entertaining people of all
ages* especially children as he la'eled himself has a +ind of magical power to
ma+e everyone happy and laugh. This McDonald&s character&s first national
appearance is in the Macy&s Than+sgiving Day ;arade. To increase the
acceptance of customers* 4onald now is a'le to communicate in I" difference
languages.
There are also A89hour McDonald&s restaurant to serve customers as to improve
customer satisfaction. ,esides* McDonald&s introduces McJalue Gunch from
"Anoon to Ipm from Monday to -unday. 7evertheless* McDelivery is availa'le
from time to time with only a minimum charge 'ased on every delivery.
1.# $enc"mar%ing
,enchmar+ing is a process which involves o'taining historic construction cost
information collected. This historic information provides the 'enchmar+ against
which a customer can assess their pro/ects value for money at a 'ase 'uilding
level with set specifics separated out. ,enchmar+ing also can defined as the
continuous process of measuring products* services* and practices against the
toughest competitors. To successful 'enchmar+ing are lies in analysis. -tarting
with companies own mission statement* a company should honestly analy)e its
current procedures and determine areas for improvement. 7e.t* a company
carefully selects competitors worthy of copying.
4easons and 'enefits
1ompanies 'enchmar+ for many reasons. The reasons can 'e 'road for
e.ample increasing productivity. The reasons also can 'e specific for e.ample
improving an individual design. ,enchmar+ing is continuous improvement tool.
1ompanies that use 'enchmar+ing strategies achieve a cost saving of I% to 8%
percent or more. !t supports the process of 'udgeting* strategic planning and
capital planning.
,enchmar+ing also can enhance learning tool. !t is to overcome dis'elief and
enhance learning. ,y hearing a'out another company or competitors successful
processes it can ma+e the employees 'elieve there&s a 'etter way to compete.
!n addition* 'enchmar+ing also wor+ as a growth potential tool. 3fter a period
time in industry* a company may 'ecome practiced at searching inside the
company for growth. The company would 'etter off loo+ing outside for growth
potential.
,esides* 'enchmar+ing is a /o' satisfaction tool. ,enchmar+ing have developed
how to networ+s to share methods* successes* and failures with each other. The
process has successfully produced a high degree of a /o' satisfaction.
,enchmar+ing is a systematic e.amination of a company products* services* and
wor+ processes.
Types of ,enchmar+ing
There are four different types of 'enchmar+ing. ,efore deciding to 'enchmar+* a
company should determine what they want to 'enchmar+.
,enchmar+ing against operations is called internal 'enchmar+ing. This is one of
the simplest forms* since most companies have similar function inside their
'usiness units. !nternal 'enchmar+ing o'/ective is ena'ling a multitude of
information to 'e share. The 'enefits come from identifying the internal
procedures* then transferring them to other portion of organi)ation.
1ompetitive 'enchmar+ing is used with direct competitors. This type of
'enchmar+ing perform e.ternally* its goal is to compare companies in the same
mar+ets that have competing products* services or wor+ processes. 0or e.ample*
Mc Donald&s compete with ,urger :ing. ,y this strategy* its can compare a
related companies performance. With this direct competitor* information is not
easy to o'tain. ;u'lic domain information is the most accessi'le.
!ndustry 'enchmar+ing is performed e.ternally against industry leaders or
against certain company 'est functional operations. The 'enchmar+ing partners
usually share some common technological and some mar+et characteristics.
,ecause of no direct competitors are involved* the 'enchmar+ing partners are
more willing to contri'ute and share.
;rocess or generic 'enchmar+ing focuses on the 'est wor+ processes. !nstead
of focusing on a company&s 'usiness practice* similar procedures and functions
are 'enchmar+ed. This type can 'e used across dissimilar organi)ations.
1.& 'ontinuous Improvement
!n order to comprehend the need for improvement in the construction industry
and to 'etter manage our pro/ect and construction companies especially li+e
McDonald. To 'e competitive in mar+et* McDonald has provided more consistent
quality and value to their owners or customers. -uch goals demand that a
continuous improvement (1!) process 'e esta'lished to provide total quality
management. -o that McDonald give lot attention to the satisfaction level of it
customers with improve quality standards such as trained employees* improve
product quality and improve performance and e.ercises a good strategy for its
human resources.
0irst of all* to fulfill the needs of the customers according to their desires or
requirement and also to ma+e its product more competitive* McDonald has
improved their products quality. -uch as improving ingredients and nutrients of
food stuff. 0or food allergies* McDonald consolidated all allergen information into
the gradient statement. ,esides* according to the nutrition information of
McDonald* their product derived from testing conducted in accredited
la'oratories* pu'lished resources or from in formations provided from
McDonald&s suppliers. !t&s 'ased on standard product formations and serving
si)es.
More than that lot e.penditure is made in the quality maintenance and
improvement researches. McDonalds maintains the following quality rules such
as maintaining strict standards of quality and safety* so that the customers can
feel comforta'le fitting any of the food products into their personal eating styles.
-econd* is serving a variety of nutritious* high9quality food products and portion
si)e* including new salad* fruit* and vegeta'le offerings 6appy Meal 1hoices.
,eside* McDonald providing nutrition information to help customers ma+e smart
choices that address their individual lifestyle needs. 0urthermore* the company
informing the customers a'out energy 'alance and fun* practical ways to
incorporate physical activity into their everyday lives and motivating +ids to 'e
active 'y engaging 4onald McDonald as am'assador for play and activity. 0inally
McDonald sponsoring ma/or sports competitions* including the 5lympics and the
0!03 World 1up soccer matches.
More to the point* McDonald creates connection 'etween the quality of product
and the a'ility of employees 'y give training to their employees. Employees were
having training for it wor+. 0or e.ample* the cashier is trained for all the cash
handling? floor manager is polished against his degree in the hotel management.
,esides* wor+ers in McDonald consist of on9the /o'9training and largely
vocational. More than those new wor+ers were given orientation. McDonald also
has a training room for their employees. During the training* trainer is use a
series of chec+list. !t&s is important for McDonald to create quality employees. !n
addition McDonald uses the strategy Eright person on right /o'F means that
allocates resource in different areas according to the a'ilities* qualifications* and
e.periences of employees. ,eside* McDonalds has different departments for
different functions. 0or e.ample* mar+eting department consists of mar+eting
e.perts who perform mar+eting analysis and finance department consist of
finance e.perts who arrange and manage finance.
3nother strategy that McDonald use is Employee&s /o' satisfaction means that
provides training opportunities to its employees. -o it results in enhanced
performance and they 'ecome more interested to wor+ in good manner* which
gives a good reputation to the organi)ation and trains its employees of all
departments to enhance their capa'ilities and to improve their s+ills.
3 +ey part of the McDonald&s philosophy is continuous improvement* not only in
the restaurants 'ut with its primary and secondary suppliers as well. McDonald
has developed a H-upplier Quality !nde.& (-Q!) 'y which all suppliers are
measured. !t allows companies to monitor performance of suppliers across the
many agricultural and non9agricultural product and services. McDonald also
conducts regular audits each supplier including the two plants of Esca 0ood
-olution Gtd. 3ll Esca 0ood -olution -upplier in turn are su'/ect to auditC
5ne in9depth technical audit per year usually ta+ing A full days
Tracea'ility audits9unannounceal9three times each year for every supplier
including farm visits.
3nimal welfare audits
;roduct integrity audits
McDonald also introduces a sophisticated system of monitoring performance of
its meat suppliers. 3fter that 'ased on a num'er of :ey ;erformance !ndicator
(:;!&-)* system 'enchmar+s quality performance 'oth against other suppliers
and past performance that is operates in real9time. 3lso* supplier receives a
monthly summary report of performance.
.0 Quality Management $y Tec"ni(ue of
Total Quality Management
.1 Quality 'ircle
Quality 1ircle is one of the employee participation methods. !t implies the
development of s+ills* capa'ilities* confidence and creativity of the people
through cumulative process of education* training* wor+ e.perience and
participation. !t also implies the creation of facilitative conditions and environment
of wor+* which creates and sustains their motivation and commitment towards
wor+ e.cellence. Quality 1ircles have emerged as a mechanism to develop and
utili)e the tremendous potential of people for improvement in product quality and
productivity. 3 quality circle is a small group of > to "A employees doing similar
wor+ who voluntarily meet together on a regular 'asis to identify improvements in
their respective wor+ areas using proven techniques for analy)ing and solving
wor+ related pro'lems coming in the way of achieving and sustaining e.cellence
leading to mutual uplift of employees as well as the organi)ation. 1ircle mem'ers
are free to collect data and ta+e surveys. !t is Ka way of capturing the creative and
innovative power that lies within the wor+ forceK.
The quality circle focuses on ma+ing use of people to find solution for
management pro'lems. !f wor+ers are prepared to contri'ute their idea* the
management must 'e willing to create a congenial environment to encourage
them to do so. 3s on the McDonald&s team* each person plays an important role.
1rew and managers wor+ together* constantly communicating and supporting
each other in a team which are 'usy and challenging 'ut yet always strives to 'e
cooperative and fun. McDonald&s employee&s performance is assessed not only
on their wor+ plan accomplishments* 'ut also on the e.tent to which they
demonstrate the Blo'al Geadership 1ompetency Model and McDonald&s values.
The concept of quality circle 'ased upon recognition of the value of the wor+ers
as a human 'eing* as someone who willingly activisms on his /o'* his wisdom*
intelligence* e.perience* attitude and feeling. !t is 'ased on the human resource
management considered as one of the +ey factors in the improvement of product
quality and productivity. Three main attri'utedC
3 form of participation management.
3 human resource development technique.
3 pro'lem solving technique.
The o'/ectives of quality circle are multi9faced. 5ne of the o'/ectives is a change
in attitude. !t is a continuous improvement in the quality of wor+ life through
humani)ation of wor+. ,ased on McDonald 'elieves that good governance is a
/ourney* is not a destination. 3ccordingly* they commit to review their governance
principle at least annually with a view to continuous improvement. 3part from that
is self development. ,ring out people who potential 'ut never 'een develop. 0or
e.ample* in mid A%%> McDonald introduced the McDonald&s Geadership !nstitute*
a virtual learning community of guidance and resources to support and develop
employee leadership and talent. Thus* people will get to learn additional s+ills.
3ddition* o'/ective is development of team sprit. Team wor+ is much 'etter than
individualism wor+. With team wor+ its help eliminate inter departmental conflict.
Moreover* improved organi)ational culture is also the main o'/ective. !t provides
positive wor+ing environment with total involvement of people at all level. Thus*
higher the motivational level due participate management process. McDonald&s
values were recently integrated into their Blo'al Geadership 1ompetency Model*
which has in turn* 'een em'edded into their ;erformance Development -ystem
(;D-). 3s a result* every McDonald&s employee&s performance is assessed not
only on their wor+ plan accomplishments* 'ut also on the e.tent to which they
demonstrate the Blo'al Geadership 1ompetency Model and McDonald&s values.
. Si) Sigma
!n the mid9"#(%s -i. -igma was started. Motorola was started -i. -igma 'ut
populari)ed in the "##%s 'y 3llied -ignal and Beneral Electric* the approach
'etween quality management and -i. -igma were different than the previous. ,y
using different quality approach* management no need play important role when
'ring e.ternal e.perts to teach new wor+force. ,y using -i. -igma also* the wor+
'egins with management. The management has identifying and measuring the
processes of their organi)ation 'efore the wor+ is done. 3 process which means
as the activities and steps that provide 'y supplier to ta+e input add value and
provide product for customer.
Every companies want 'e profita'le. !f companies get their profita'le they can
provide /o's and pay ta.es for the community* state* and country 'enefits where
they ma+e their products or provide their services. ,y having customer who
wants your product or service it can ma+ing profit for the companies. Each
customer has their own requirements regarding the product or service. !n -i.
-igma revolves around a few +ey concepts are* critical to quality mean attri'utes
most important to the customer* defect mean falling to deliver what the customer
wants* process capa'ility mean what your process can deliver* variation mean
what the customer sees and feels* sta'le operations mean ensuring consistent*
predicta'le processes to improve what the customer sees and feels and lastly
design for si. sigma mean designing to meet customer needs and process
capa'ility.
3dapt to McDonald&s management 'ased on +ey conceptsC
1ritical to QualityC McDonald&s has used the food safety management system in
place* including Bood Manufacturing ;ractices (BM;)* sanitation program* an
approved 6a)ard 3nalysis 1ritical 1ontrol ;oint (6311;) plan* as well as crisis
management and food security program. -upplier Quality Management -ystem
that including food safety and high e.pectations for all McDonald2s suppliers
throughout the world has 'een updating 'y McDonald&s in A%%<.
DefectC McDonald2s management would also li+e to +eep the companies from
contaminated when received complaints from customers who fail to get what they
want* McDonald2s will try to deliver the desired products 'y customers to their
homes.
;rocess 1apa'ilityC McDonald&s has used the system to facilitate the drive9
through customers to 'uy without having come down from the vehicle and
provide a home delivery service.
JariationC McDonald2s has introduced a variety of menus for customers to ma+e
choices and feel the food. ,y the way* in each month of the McDonald&s will try to
introduce new menu items to customers.
-ta'le 5perationC McDonald2s management has increased its operations from
year to year with the introduction of new products to enhance customers2
willingness to dine in their restaurants
Design for -i. -igmaC McDonald2s has 'een encouraging 'usinesses to focus on
its customers. @nder the entrepreneurial spirit and harmony of system wide
a'out McDonald2s plan to win ena'les them to e.ecute the 'est ideas to the
efficiency of large9scale and local talent. With the McDonald&s restaurant have
'een giving e.perience simple* easy and please the customer.
McDonald&s referred to as DM3!1 (Define* Measure* 3naly)e* !mprove* and
1ontrol) which provide a structure way for its own to approach and solve
pro'lems. McDonald&s also are learning a'out -i. -igma through BE&s program*
3t the 1ustomer* 0or the 1ustomer (3101). McDonald&s Management will get a
new perspective on their 'usiness through this program and this can help
McDonald&s to continue grow. McDonald&s has incorporated some aspects of the
philosophy. E!t&s a disciplined approach to decision ma+ing.F -i. -igma
philosophies involve measuring wea+ness in a process and determining how to
change the wea+ness to advantages. ;roponents contend that using the
philosophy can result in cost reductions* less waste* and improved understanding
of customer needs.
McDonald2s management has minimi)e costs* the pro'lems of pollution* waste
management* water and energy conservation or that have occurred around the
world to 'uild a green restaurant in ,ra)il. 0or e.ample* the first green restaurant
was opened in -ao ;aulo* ,ra)il* in A%%(* designed and 'uilt to ma.imi)e the
latest technological innovations to minimi)e a'out a natural. The technology used
in restaurant are rainwater storage tan+ to assist in irrigation* post9central drive
through illuminated photovoltaic power generated* and smart air conditioning* all
of which contri'uted to a $% percent savings in water consumption and "8
percent in electricity for the first year of operation restaurant.
.# *educed 'ycle Time
1ycle time has 'ecome a critical quality issue in today&s fast9paced world. 1ycle
time refers to the steps ta+en to complete a company process* such as ma+ing
an airline reservation* processing an online order* or opening a retirement fund.
!n McDonald&s company* the ways they use to reduce cycle time are 'y
introducing McDonalds McDelivery and Drive9Thru for A8 hours. The
simplification of wor+ cycles* including dropping 'arriers 'etween wor+ steps and
among departments and removing worthless steps in the process* ena'les a
TQM program to succeed. Even if an organi)ation decides not to use quality
circles or other techniques* su'stantial improvement is possi'le 'y focusing on
improved responsiveness* acceleration* and effectiveness of activities into a
shorter time. 0or e.ample* 'y doing McDelivery* customers do not have to ta+e a
long time and queue up in McDonald&s restaurant to ma+e an order. ,esides* the
company can prevent wastes 'y doing such services. McDonald also introducing
Drive9Thru that will 'e opening for A8 hours. ;eople /ust need to stay in the car
instead of go inside the restaurant. ust get in queue* loo+ at the menu and place
their order. 3fter that* collect your order and en/oy your mealL This service is fast
and customers will not 'e 'ored to eat meals of McDonald. The wor+ers energy
are needed and used up all the time. Wor+ers can cooperate nicely with their
employees and will increasing the company profits. -ine McDonald felt that those
services are effective* so they will continuously use the services and +eep on
improving it. Thus* McDonald can process most order within a short time after the
order is received. 6ence* McDonald can reduce the cycle time efficiently and
effectively.
#.0 'ritical T"in%ing 'ases of McDonald+s
!n dynamic 'usiness environment* managers must constantly ma+e decisions so
mar+eters need to evaluate data and craft appropriate response strategies in fast
speed. This is to improve for 'etter preparing for the ne.t generation 'usiness
leaders. 1ritical thin+ing s+ills are essential as for evaluate the situation* identify
+ey issues* analysis and ma+e decision.
McDonald&s has the world largest fast food service retailing chain as it has over
I%*%%% restaurants in more than "%% countries. There are over $% millions people
eat McDonald&s food daily. The popular meals of McDonald&s are ,ig Mac*
1hic+en Mc97uggets* Egg McMuffin which all of them are not a +ind of healthy
food for customers 'ut popular as they are easy to prepare so call fast food. With
this* leaders of fast food 'usiness should thin+ of a way to add healthier products
such as more fruits and vegeta'les slide dishes in their menu list and e.pediting
the trans9fat9free frying medium oil rollout.
-econdly* McDonald&s has a service which named McDelivery. 5ffering a
delivery option for customers* the company will have to esta'lish a call center
with a toll9free num'er which is "I%%9"I9"I%% and have to increase the num'er
of wor+ers as scooter drivers to deliver the food products rapidly as to ensure the
freshness of the meal which ordered 'y their customers. This option is profita'le
for company as the store costs reduced and the associated clean9up costs for
dining in customer can 'e eliminate. While McDelivery will put a ris+ in the safety
of wor+ers who involve in delivery as they have to deliver in fast speed to ensure
the food 'eing deliver in the limited time or else they will 'eing penali)e.
Thirdly* McDonald&s face pro'lem during the rush time which is during the time
'rea+ for wor+ing hour. 1ustomers often complain a'out the disordered multiple
waiting lines to approach the service counter. When they fail to e.amine the
menu* customer often will 'e intent on loo+ing for ways to improve their position
in the line. The confusing menu design will cause the customer who stand a
distance 'ehind the service counter not a'le to read the menu. With this matter*
the customers will 'e undecided when is their turn to order and prolong the
ordering process which cause dissatisfaction of other customers.
'onclusion
Throughout this assignment* we learnt the real meaning of Total Quality
Management (TQM). TQM is a very important concept use to apply in an
organi)ation or company daily operations. TQM principles must 'e supported at
all levels of the organi)ation or company as to 'e effective in improving quality
from the lowest9level hourly employees to the highest managerial department.
TQM is essential to all functional areas of the organi)ation including finance*
mar+eting* production departments and information system. The process 'egin
with receive and understand customers& wants and needs then produce goods
and services 'ased on it or even improve them to fulfill customers& desires. TQM
encourage each mem'er of the organi)ation remain alert* aware and responsi'le
for their contri'ution as to stay focus on the quality.
Managers and employees are encouraged 'y the implementation of TQM as to
colla'orate across functions and departments as well as customers and suppliers
to identify areas of improvement at any possi'le areas. Teamwor+* increase the
satisfaction of customers* cut down costs are the elements which emphasi)e in
TQM philosophy. To achieve high standard of quality of the organi)ation*
employees are trained and empowered to ma+e decisions for pro'lem solving.
TQM shift from a 'ureaucratic to a decentrali)ed approach to control.
The financial 'enefits from using TQM included cut down costs* improve returns
on sales and investment and the a'ility to change higher rather than competitive
prices. ,esides* TQM increase the reputation as a quality organi)ation or
company* develop new innovations using short period of time* increase customer
retention levels and improve access to glo'al mar+ets. ,y implementing TQM*
organi)ation or company with the limited necessary resources may gain ma/or
competitive advantages in their industry.
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