Production and Operation Managemne, Case of Mcdonald

Topics: Operations management, Recycling, Management Pages: 9 (3026 words) Published: January 22, 2012
This paper aims at examining the use of teams in production and operations management. Boone and Kurtz (2011) reported that ’’the purpose of production and operations management is to oversee the application of people and machinery in converting materials into finished goods and services’’ (p.356). Dr. Deming has developed fourteen principles for production and operations management, originally presented in Out of the Crisis, that serve as management guidelines. Organizations that follow that guideline should have more efficient workplace, higher profits, and increased productivity. According to Zupanc ( 2007) ,Dr.Deming’s principles are: Create constancy of purpose, Adopt the new philosophy, cease inspection and require evidence,End the practice of awarding business on the basis of price tag, Improve constantly and forever the system and of production and service , Institute training on the job , Institute leadership , Drive out fear , Break down barriers between departments , Eliminate slogans, exhortations, and targets for the work force , Eliminate work standards (quotas) on the factory floor , Remove barriers to pride of workmanship , Institute a vigorous program of education and self-improvement, Everyone must undergo transformation continuously and indefinitely. (Total Quality Management, para. 5). This paper will focus on Dr. Deming 9th principle. He has advised his client to:’’ break down barriers between departments and staff area’’. In other words, he is encouraging organizations to use team work in production and operations management.It is very important for a company to use team work. Most organizations divide themselves to several departments so that work would end faster upon splitting up and distributing to several departments. This takes the organization to better management in quality and also other profit with better planning. Thesis Statement: In discussing the use of team work in production and operation management, we shall start by describing a major global corporation ( McDonald) , next we shall describe its production or operations management, then we will describe and evaluate the company’s use of teams in production and operations management, and finally we will analyze and evaluate the company’s ability to adjust to a major economic, environmental, or natural crisis (such as the real estate crash, financial crisis, nuclear meltdown, hurricane, flood, oil spill, etc.) and communicate effectively with their employees and customers about issues caused by the crisis 1. Describe a major global corporation: (1) a leading manufacturer or (2) a major retail or restaurant business. Describe the type of business, market share, financials, size, and global presence. McDonald's is the world's #1 fast-food company by sales, with more than 32,500 restaurants serving burgers and fries in 117 countries. (McDonald Corporation , 2009). Svoboda (2007) argued that, in 1991, McDonald owned $13 billion of the $93 billion fast food industry. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of the outlets are free-standing units offering dine-in and drive-through service, but McDonald's also has many eateries located in airports, retail areas, and other high-traffic locations. About 80% of the restaurants are run by franchisees or affiliates (p.1). The sales increased by 5% in 2010, Operating income grew by 9% and the company is continuing to gain market share around the world. In addition, McDonald has returned $5.1 billion to shareholders through share repurchases and dividends paid, and has provided a 27% return to investors for the year, ranking it third among the companies comprising the Dow Jones Industrial Average (McDonald, 2011). 2. Describe the company’s production or operations management. Operations management can be defined as the planning, scheduling, and control of the activities that transform inputs into finished goods and...
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