Swami Keshvanand Institute of Technology, management &

Gramothan (SKIT), Jaipur, Rajasthan (India)

Assignment of Operational Management-II

Title of Case Study: Total Quality Management

Name of Student: Bhavit Jain

University Roll No: 21MSKXX608

Group No: 02

Group Member: Tushar sharma, Kuldeep , Jiya , Nikhil, megha , dolly.

Semester: II

Course: Operational Management-II

Course Code: M-207

Session: 2021-2022

Submitted to the course faculty: Dr. Achin Srivastav

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
Japanese Industry in the 1950's and became popular in the West since early 1980's. TQM is a system
for a customer focused organization in continual improvement that involves all employees of all aspects
of the organization. Employee involvement, focus on the customer, benchmarking, and continuous
improvement are the four significant elements of TQM.
Besides, there are some management techniques which involve in the implementation of TQM, such as
quality circles, Six Sigma, reduced cycle time and continuous improvement Employee involvement is
creating an environment for employees as to have impact on decisions making and actions which can
affect their jobs.
Focus on the customer is the only element who determine the level of quality and the worthwhile level
from all the efforts which organization do to foster quality improvement, training employees, integrating
quality into processes management. Benchmarking

Benchmarking is the process of comparing one's business processes and performance to industry as to
learn and practice from other industry for achieving the best performance. Continuous improvement

The process which involves ongoing efforts to improve the system, products, services or process to
achieve improvement in an organization and company. Quality circles

A quality circle is a group of volunteer form by workers under their supervisor who are trained to identify,
analyze and solve work related problems as to improve the performance of the organization.
Six Sigma

Six Sigma is a management strategy which use to seek for improvement of the quality of an organization
process outputs by identify, removing the causes of errors and minimizing variability in business
processes.
Reduced cycle time

It is referred to the step taken to complete a business process.

Our group is doing the research on McDonald's TQM. McDonald being recognized as a premier
franchising company all over the world in the form of fast-food service restaurant which serve the World
Famous Fries, Hamburgers, Chicken McNuggets, Egg McMuffin and as well as the Famous Big Mac In
1940, McDonald's was open with the name McDonald's Bar-B-Que restaurant on the Fourteenth and E
streets in San Bernardino, California by Richard and Maurice McDonald's. At the beginning, it is a carhop
service restaurant with a typical drive-in featuring large menu. However, McDonald's developed as an
international recognized company ever since Ray Kroc, the distributer of Multimixer (Milk Shake), who
was fascinated by the operation of the two McDonald's brothers and acquired the franchising right from
them to run McDonald's restaurant in Des Plaines, IIIinois in 1955.
Nowadays, exceed 75% of McDonald's restaurants worldwide are operated and owned by independent
local men and women were serving more than 60 million people in 117 countries each day in the world
largest restaurant organization, McDonald's.
Total Quality Management (TQM) of McDonalds
Employee Involvement

Total Quality Management (TQM) programs are an important and prominent approach to management.
Nowadays, most large corporations have a program that incorporates some of the practices and
principles of total quality management. One of the most important principles of TQM concerns
employee involvement or often called as empowerment. It is common for a TQM program to state that
employee involvement is very important to its success.
For McDonald's, total quality management (TQM) involves that the employees are at work on time, are
neatly dressed, and are clean. The employees must make 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 Standard Operational Procedures, so the customers always receive
exceptional 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 vegetables are thoroughly washed when
used in the food. Another TQM is that the employees rely on teamwork and high energy to get the job
done, so that the customers do not have to wait long for their food. Furthermore, McDonald's
management emphasizes that their restaurants should be clean. This involves that the restaurants are
tidy, sparkling and spotlessly clean. As McDonald's illustrates the quality is that the employees deliver
fast, accurate and friendly service with a smile.
For TQM programs that do not have management commitment and employee involvement are bound
to fail. This will contribute to poor business results and employee turnover. High turnover rates are a
challenge for any company in the food service industry, including McDonald's. Both managers and
academics believe that, with commitment from senior management, by involving employees in problem
solving, decision making, and business operations, performance and productivity will increase.
Employees should be encouraged to control their destiny and participate in the processes of the
Organization. To be effective, employees should be given power, information, knowledge, and rewards
that are relevant to business performance. The Restaurant People Strategy is designed to offer a
compelling employment value proposition by providing unique benefits, training and opportunities that
meet the needs of today's workers. McDonald's benefits program is designed to attract, retain and engage
talented people who will deliver strong performance and help McDonald's achieve our business goals
and objectives. These benefits include health and protection such as employee and dependent life
insurance, dental, travel and business travel accident insurance; pay and rewards such as base pay and
incentive pay, company car, profit sharing, paid holidays and vacation, educational assistance and
several other benefits. 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.
Company leaders. Because of McDonald's international scope, translators and electronic equipment
enable professors to teach and communicate in 22 languages at one time. McDonald's also manages ten
international training centres, including Hamburger Universities in England, Japan, Germany and
Australia. Today, more than 50,000 managers in McDonald's restaurants have graduated from
Hamburger University. McDonald's believes that his quick-service format would be lost if service at
the order desk was not courteous and efficient, to avoid this problem some detailed video tapes have
been created to train every single worker who had to have direct contact with the customers. The tapes
cover every aspect of dealing with the customers during his 15 seconds at the counter. Crewmen are
instructed to initiate each order with a polite question: 'May I have your order, please?' The success of
these service methods cannot be questioned. Focus on the customer

Customers are the one who consume goods and services offered by organizations or companies. In other
words, all goods and services were provided as to fulfil the demand and the needs of consumer. Besides
that, customers also are the only one who ranks the effort and measurer of the satisfaction level of the
goods and services offered by the organizations or company. Without customers, the efforts of managing
and operating the organizations or company will be wasted. Therefore, focus on the customer is an
element to measure the total quality management of the organization or company. McDonald's brand
mission is "to be our customers' favourite place and way to eat". McDonald's operators, suppliers as
well as employees cooperate to achieve customers' need in McDonald's unique ways. They also have
the best ideas with both large scale efficiency and local style through the most dominant grouping of
entrepreneurial spirit and System wide position around their Plan to Win. McDonald's provides the
customers with high quality of food and better-quality services in a friendly, hygienic and enjoyable
environment at a great value as to make their customers feel good when having McDonald's foods and
beverages. McDonald's takes into account of the customers' nutrition. Researches had been carried out
to measure and create a menu which matches the daily nutrition of their customers. In these busy lives
nowadays, McDonald's concern with the calories consuming and other diet-related concern from the
foods they provide as they want their customers to stay within their goals for the day. Besides,

McDonald's aim to inspire and motivate people to live balanced, active lives with their Balanced, Active
Lifestyles (BAL) efforts by bring in the global theme which is "it's what I eat and what I do".
Furthermore, McDonald's introduced children's nutrition meal named Happy Meals which were
originally designed for young-age children in suitable portion sizes with essential nutrients such as
protein, calcium, iron and vitamins B.
In addition, to enhance the image identifying of McDonald's in customers from adults to kids,
McDonald's introduce a representative character named 'Ronald McDonald', the Chief Happiness
Officer of McDonald's. Ronald was born in 1963 and join McDonald's as goodwill officer at the same
year. Ronald appearance is a clown who wears long sleeve shirt with red and white striped, yellow
jumpsuit with matching red and white striped high stocking and a big red shoe. Ronald's job is to
entertain the customers and bring fun to their lives as he believes that life is all about having a good
time. He also loves to entertaining people of all ages, especially children as he labelled himself has a
kind of magical power to make everyone happy and laugh. This McDonald's character's first national
appearance is in the Macy's Thanksgiving Day Parade. To increase the acceptance of customers, Ronald
now is able to communicate in 31 difference languages.
There are also 24-hour McDonald's restaurant to serve customers as to improve customer satisfaction.
Besides, McDonald's introduces McValue Lunch from 12noon to 3pm from Monday to Sunday.
Nevertheless, McDelivery is available from time to time with only a minimum charge based on every
delivery.
Benchmarking
Benchmarking is a process which involves obtaining historic construction cost information collected.
This historic information provides the benchmark against which a customer can assess their projects
value for money at a base building level with set specifics separated out. Benchmarking also can defined
as the continuous process of measuring products, services, and practices against the toughest competitors.
To successful benchmarking are lies in analysis. Starting with companies own mission statement, a
company should honestly analyze its current procedures and determine areas for improvement. Next, a
company carefully selects competitors worthy of copying.
Reasons and benefits
Companies benchmark for many reasons. The reasons can be broad for example increasing productivity.
The reasons also can be specific for example improving an individual design. Benchmarking is
Continuous improvement tool. Companies that use benchmarking strategies achieve a cost saving of 30
to 40 percent or more. It supports the process of budgeting, strategic planning and capital planning.

Benchmarking also can enhance learning tool. It is to overcome disbelief and enhance learning. By
hearing about another company or competitors successful processes it can make the employees believe
there's a better way to compete.
In addition, benchmarking also work as a growth potential tool. After a period, time in industry, a
company may become practiced at searching inside the company for growth. The company would better
off looking outside for growth potential.
Besides, benchmarking is a job satisfaction tool. Benchmarking have developed how to networks to
share methods, successes, and failures with each other. The process has successfully produced a high
degree of a job satisfaction. Benchmarking is a systematic examination of a company products, services,
and work processes.
Continuous Improvement
In order to comprehend the need for improvement in the construction industry and to better manage our
project and construction companies especially like McDonald. To be competitive in market, McDonald
has provided more consistent quality and value to their owners or customers. Such goals demand that a
continuous improvement (CI) process be established to provide total quality management. So that
McDonald give lot attention to the satisfaction level of its customers with improve quality standards such
as trained employees, improve product quality and improve performance and exercises a good strategy
for its human resources.
First of all, to fulfill the needs of the customers according to their desires or requirement and also to
make its product more competitive, McDonald has improved their products quality. Such as improving
ingredients and nutrients of food stuff. For food allergies, McDonald consolidated all allergen
information into the gradient statement. Besides, according to the nutrition information of McDonald,
their product derived from testing conducted in accredited laboratories, published resources or from in
formations provided from McDonald's suppliers. It's based on standard product formations and serving
sizes.
More than that lot expenditure 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 comfortable fitting any of the food products into their personal
eating styles. Second, is serving a variety of nutritious, high-quality food products and portion size,
including new salad, fruit, and vegetable offerings Happy Meal Choices. Besides, McDonald providing
Nutrition information to help customers make smart choices that address their individual lifestyle needs.
Furthermore, the company informing the customers about energy balance and fun, practical ways to
incorporate physical activity into their everyday lives and motivating kids to be active by engaging
Ronald McDonald as ambassador for play and activity. Finally, McDonald sponsoring major sports
competitions, including the Olympics and the FIFA World Cup soccer matches.

McDonald creates connection between the quality of product and the ability of employees by give
training to their employees. Employees were having training for it work. For example, the cashier is
trained for all the cash handling; floor manager is polished against his degree in the hotel management.
Besides, workers in McDonald consist of on-the job-training and largely vocational. More than those
new workers were given orientation. McDonald also has a training room for their employees. During
the training, trainer is using a series of checklist. It's is important for McDonald to create quality
employees. In addition, McDonald uses the strategy "right person on right job" means that allocates
resource in different areas according to the abilities, qualifications, and experiences of employees.
Besides, McDonalds has different departments for different functions. For example, marketing
department consists of marketing experts who perform marketing analysis and finance department
consist of finance experts who arrange and manage finance.

Another strategy that McDonald use is Employee's job satisfaction means that provides training
opportunities to its employees. So, it results in enhanced performance and they become more interested
to work in good manner, which gives a good reputation to the organization and trains its employees of
all departments to enhance their capabilities and to improve their skills.
Quality Management by Technique of Total Quality Management

Quality Circle

Quality Circle is one of the employee participation methods. It implies the development of skills,
capabilities, confidence and creativity of the people through cumulative process of education, training,
work experience and participation. It also implies the creation of facilitative conditions and environment
of work, which creates and sustains their motivation and commitment towards work excellence. Quality
Circles have emerged as a mechanism to develop and utilize the tremendous potential of people for
improvement in product quality and productivity. A quality circle is a small group of 6 to 12 employees
doing similar work who voluntarily meet together on a regular basis to identify improvements in their
respective work areas using proven techniques for analysing and solving work related problems coming
in the way of achieving and sustaining excellence leading to mutual uplift of employees as well as the
Organization. Circle members are free to collect data and take surveys. It is "a way of capturing the
creative and innovative power that lies within the work force".
The quality circle focuses on making use of people to find solution for management problems. If workers
are prepared to contribute their idea, the management must be willing to create a congenial environment
to encourage them to do so. As on the McDonald's team, each person plays an important role. Crew and
managers work together, constantly communicating and supporting each other in a team which are busy
and challenging but yet always strives to be cooperative and fun.
McDonald's employee's performance is assessed not only on their work plan accomplishments, but also
on the extent to which they demonstrate the Global Leadership Competency Model and McDonald's
values. The concept of quality circle based upon recognition of the value of the workers as a human
being, as someone who willingly activisms on his job, his wisdom, intelligence, experience, attitude and
feeling. It is based on the human resource management considered as one of the key factors in the
improvement of product quality and productivity. Three mains attributed:
A form of participation management.

A human resource development technique.

A problem-solving technique.
The objectives of quality circle are multi-faced. One of the objectives is a change in attitude. It is a
continuous improvement in the quality of work life through humanization of work. Based on McDonald
believes that good governance is a journey, is not a destination. Accordingly, they commit to review
their governance principle at least annually with a view to continuous improvement. Apart from that is
self-development. Bring out people who potential but never been develop. For example, in mid-2006
McDonald introduced the McDonald's Leadership Institute, a virtual learning community of guidance
and resources to support and develop employee leadership and talent. Thus, people will get to learn
additional skills. Addition, objective is development of team sprit. Team work is much better than
individualism work. With team work its help eliminate inter departmental conflict. Moreover, improved
organizational culture is also the main objective. It provides positive working 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 Global Leadership Competency Model,
which has in turn, been embedded into their Performance Development System (PDS). As a result,
every McDonald's employee's performance is assessed not only on their work plan accomplishments,
but also on the extent to which they demonstrate the Global Leadership Competency Model and
McDonald's values.
Six Sigma

In the mid-1980s Six Sigma was started. Motorola was started Six Sigma but popularized in the 1990s
by Allied Signal and General Electric, the approach between quality management and Six Sigma were
different than the previous. By using different quality approach, management no need plays important
role when bring external experts to teach new workforce. By using Six Sigma also, the work begins with
management. The management has identifying and measuring the processes of their organization before
the work is done. A process which means as the activities and steps that provide by supplier to take input
add value and provide product for customer.
All companies want be profitable. If companies get their profitable, they can provide jobs and pay taxes
for the community, state, and country benefits where they make their products or provide their services.
By having customer who wants your product or service it can making profit for the companies. Each
customer has their own requirements regarding the product or service. In Six Sigma revolves around a
few key concepts are, critical to quality mean attributes most important to the customer, defect mean
falling to deliver what the customer wants, process capability mean what your process can deliver,
variation mean what the customer sees and feels, stable operations mean ensuring consistent, predictable
processes to improve what the customer sees and feels and lastly design for six sigma mean designing to
meet customer needs and process capability.

Adapt to McDonald's management based on key concepts:

Process Capability: McDonald's has used the system to facilitate the drive-through customers to buy
without having come down from the vehicle and provide a home delivery service.

Variation: McDonald's has introduced a variety of menus for customers to make choices and feel the
food. By the way, in each month of the McDonald's will try to introduce new menu items to customers.

Stable Operation: McDonald's management has increased its operations from year to year with the
introduction of new products to enhance customers' willingness to dine in their restaurants
Design for Six Sigma: McDonald's has been encouraging businesses to focus on its customers. A Under
the entrepreneurial spirit and harmony of system wide about McDonald's plan to win enables them to
execute the best ideas to the efficiency of large-scale and local talent. A With the McDonald's restaurant
have been giving experience simple, easy and please the customer.
McDonald's referred to as DMAIC (Define, Measure, Analyze, Improve, and Control) which provide a
structure way for its own to approach and solve problems. McDonald's also are learning about Six Sigma
through GE's program, At the Customer, For the Customer (ACFC). McDonald's Management will get
a new perspective on their business through this program and this can help McDonald's to Continue
grow. McDonald's has incorporated some aspects of the philosophy. "It's a disciplined approach to
decision making." Six Sigma philosophies involve measuring weakness in a process and determining
how to change the weakness to advantages. Proponents contend that using the philosophy can result in
cost reductions, less waste, and improved understanding of customer needs.

McDonald's management has minimized costs, the problems of pollution, waste management, water and
energy conservation or that have occurred around the world to build a green restaurant in Brazil. A For
example, the first green restaurant was opened in Sao Paulo, Brazil, in 2008, designed and built to
maximize the latest technological innovations to minimize about a natural. A The technology used in
restaurant is rainwater storage tank to assist in irrigation, post-central drive through illuminated
photovoltaic power generated, and smart air conditioning, all of which contributed to a 50 percent
savings in water consumption and 14 percent in electricity for the first year of operation restaurant.

Reduced Cycle Time

Cycle time has become a critical quality issue in today's fast-paced world. Cycle time refers to the steps
taken to complete a company process, such as making an airline reservation, processing an online order,
or opening a retirement fund. In McDonald's company, the ways they use to reduce cycle time are by
introducing McDonalds McDelivery and Drive-Thru for 24 hours. The simplification of work cycles,
including dropping barriers between work steps and among departments and removing worthless steps
in the process, enables a TQM program to succeed. Even if an organization decides not to use quality
circles or other techniques, substantial improvement is possible by focusing on improved
responsiveness, acceleration, and effectiveness of activities into a shorter time. For example, by doing
McDelivery, customers do not have to take a long time and queue up in McDonald's restaurant to make
an order. Besides, the company can prevent wastes by doing such services. McDonald also introducing
Drive-Thru that will be opening for 24 hours. People just need to stay in the car instead of go inside the
restaurant. Just get in queue, look at the menu and place their order. After that, collect your order and
enjoy your meal! This service is fast and customers will not be bored to eat meals of McDonald. The
worker’s energy is needed and used up all the time. Workers can cooperate nicely with their employees
and will increasing the company profits. Sine McDonald felt that those services are effective, so they
will continuously use the services and keep on improving it. Thus, McDonald can process most order
within a short time after the order is received. Hence, McDonald can reduce the cycle time efficiently
and effectively.

3.0 Critical Thinking Cases of McDonald's

In dynamic business environment, managers must constantly make decisions so marketers need to
evaluate data and craft appropriate response strategies in fast speed. This is to improve for better
Preparing for the next generation business leaders. Critical thinking skills are essential as for evaluate the
situation, identify key issues, analysis and make decision.
 McDonald's has the world largest fast food service retailing chain as it has over 30,000 restaurants in
more than 100 countries. There are over 50 million people eat McDonald's food daily. The popular
meals of McDonald's are Big Mac, Chicken Mc-Nuggets, Egg McMuffin which all of them are not a
kind of healthy food for customers but popular as they are easy to prepare so call fast food. With this,
leaders of fast-food business should think of a way to add healthier products such as more fruits and
vegetables slide dishes in their menu list and expediting the trans-fat-free frying medium oil rollout.

Secondly, McDonald's has a service which named McDelivery. Offering a delivery option for
customers, the company will have to establish a call center with a toll-free number which is 1300-13-
1300 and have to increase the number of workers as scooter drivers to deliver the food products rapidly
as to ensure the freshness of the meal which ordered by their customers. This option is profitable for
company as the store costs reduced and the associated clean-up costs for dining in customer can be
eliminate. While McDelivery will put a risk in the safety of workers who involve in delivery as they have
to deliver in fast speed to ensure the food being deliver in the limited time or else they will being penalize.
Thirdly, McDonald's face problem during the rush time which is during the time break for working hour.
Customers often complain about the disordered multiple waiting lines to approach the service counter.
When they fail to examine the menu, customer often will be intent on looking for ways to improve their
position in the line. The confusing menu design will cause the customer who stand a distance behind
the service counter not able to read the menu. With this matter, the customers will be undecided when
is their turn to order and prolong the ordering process which cause dissatisfaction of other customers.

Conclusion

Throughout this assignment, we learnt the real meaning of Total Quality Management (TQM). TQM is
a very important concept use to apply in an organization or company daily operations. TQM principles
must be supported at all levels of the organization or company as to be effective in improving quality
from the lowest-level hourly employees to the highest managerial department. TQM is essential to all
functional areas of the organization including finance, marketing, production departments and
information system. The process begin with receive and understand customers' wants and needs then
produce goods and services based on it or even improve them to fulfil customers' desires. TQM
encourage each member of the organization remain alert, aware and responsible for their contribution
as to stay focus on the quality.
Managers and employees are encouraged by the implementation of TQM as to collaborate across
functions and departments as well as customers and suppliers to identify areas of improvement at any
possible areas. Teamwork, increase the satisfaction of customers, cut down costs are the elements which
emphasize in TQM philosophy. To achieve high standard of quality of the organization, employees are
trained and empowered to make decisions for problem solving. TQM shift from a bureaucratic to a
decentralized approach to control.
The financial benefits from using TQM included cut down costs, improve returns on sales and
investment and the ability to change higher rather than competitive prices. Besides, TQM increase the
reputation as a quality organization or company, develop new innovations using short period of time,
increase customer retention levels and improve access to global markets. By implementing TQM,
organization or company with the limited necessary resources may gain major competitive advantages
in their industry.