Operations Management (McDonalds Case Study)
INTRODUCTION - OPERATIONS MANAGEMENT:
Operations management can be defined as the planning, scheduling , and control of the activities that transform inputs into finished goods and services. In other words, it is ‘a field of study that focuses on the effective planning , scheduling, use, and control of a manufacturing or service organisation through the study of concepts from design engineering, industrial engineering, and management information systems, quality management, production management, accounting, and other functions as the affect the operation.’ (APICS Dictionary, 1995) Operations management concerns making the most efficient use of whatever resources an organisation has so as to provide the finished goods or services that its customer need in a timely and cost effective manner. (Barnett ,1996). Operations management is related with the strategy of the organisation. In this coursework, we will demonstrate the relationship between the operations management and the strategy of the organisation with the help of a corporate entity. The corporate entity chosen is McDonald's Corporation.
McDonald's Corporation is the world's largest chain of fast-food restaurants. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. Today McDonald's restaurants are found in 120 countries and territories around the world and serve nearly 54 million customers each day. ( Source: http://en.wikipedia.org/wiki/McDonald's)
In all its restaurants around the globe, there are a number of operations that has a relationship with the overall strategy of the organisation. Let us know discuss the key operations decisions and its relationship with the strategy. Operations Management: An Active Learning Approach By John Bicheno PRODUCT PLANNING
Organisations exists to provide products and services which can be purchased by other organisations or an individual. Therefore planning of products and services is one of the most important operation of any organisation. It involves designing products with both economy and quality in mind, which a customer will find attractive, be able to understand and quickly able to use with minimum risk and which delights him or her by its performance or flavour or durability etc. (Bicheno, 2002; p51) In McDonald’s Restaurants, product planning is a key operation. It has to keep on adding new products to its menu so as to meet the needs of the customers as their needs and preferences are constantly changing. For instance, the increasing preference of consumers towards healthy food made the restaurant add healthier food items to its menu. Similarly it has to add new products for different seasons, for examples hot coffee in winter and milkshakes in summer. CAPACITY PLANNING
The second operation decision important for organisations is capacity planning. Capacity planning and control is the task of setting the effective capacity of the operation so that it can respond to the demands placed upon it. This normally means determining how the operation should respond to fluctuations in demand. Operations managers usually distinguish between short, medium and long-term capacity decisions. For short- and medium-term capacity planning, the capacity level of the operation is adjusted within the fixed physical limits that are set by long-term capacity decisions. This is also referred to as aggregate planning and control because it is necessary to aggregate the various types of output from an operation into one figure. (source: http://www.mas.dti.gov.uk/content/resources/categories/fact/FACT_Capacity_planning.html) In McDonalds Restaurant, the operations managers have to set its capacity of making food items in such a way that it responds quickly to the demands of those items in...
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