Operations and Information Management

Table of Contents
Operations Management:.................................................................................................................3
Key Benefits of Effective Operations Management........................................................................3
Operational process of McDonald...................................................................................................5
Method of transformation................................................................................................................6
4V model in operational process of McDonald’s............................................................................7
Here’s a flowchart for McDonald’s operations management process.............................................9
Lean principals.................................................................................................................................9
Just -in- time (JIT) manufacturing.................................................................................................11
Analyzing 5 Performances Model for McDonald’s.......................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
OPERATIONS MANAGEMENT:
Operations management is the activity of managing the resources which produce and deliver
products and services (Dr Kostas Chaldoupis, 2020). The organizational role is the responsibility
of the organization and this role is very much needed for each organization as it helps the
business grow and move around properly.

Key Benefits of Effective Operations Management

Product Quality: Operations control is the first unit in a traditional organization that controls
durability and product reliability (Understanding Quality Control, 2020). The management of operations
sees the consistency of the goods or items that are appropriate for consumers and after distribution. It
gives you an advantage in contrast to your rivals when a product is of quality.

Productivity: Productivity implies the input-to-output ratio, which is the only way of testing the
inputs of employees. The management of the operations ensures that workers have enough tools
to produce the greatest performance. Efficient organizational management is the best way to
maintain efficiency.
Customer Satisfaction: There is no feeling of the greatest happiness for a manager or employee
as a customer (Gilad & Chussil, 2019). This, along with quality commodity, is rightly maintained
by operational management. Customers rely on organization, and they need to be well served in
every possible and appropriate way.
Reduce operating cost:  The costs incurred in product maintenance are minimized by
production, quality goods and customer satisfaction (Quality cost, 2020). This leads to higher
wages at the same time. This can only be made possible by organizational management. Waste is
also reduced to minimize running costs. As requested by proper operational management, exact
number/size of products is made.
Following the 4V model, we analyse McDonald's current operational method

Introduction of McDonald
The global fast food retailer is McDonald's. It has over 32,000 restaurants, serving more than 60
million customers per day in over 100 countries. More than 80% of McDonald's restaurants are
franchised and owned by local residents worldwide.
In opening their first restaurant with the aid of Richard and Maurice McDonald, they created the
concept of a "montage line" to cook a reduction in price and pace, resulting in increased client
turnover.
McDonald's history started with Ray Kroc, the founder. He handled the McDonald's idea of
restaurant franchising. By 1961 the entire plan had been managed by Ray Kroc. The one
restaurant the McDonald Brothers manage and 0,5% of the bigger business gets. It wasn't
something they necessarily wanted to grow the McDonald name. On the other side, Ray Kroc
had been. In every country in America, he decided to put a McDonald's restaurant – which he did
eventually. At the expense of $2.7 million, Kroc took over McDonald's corporation.
Anyone wishing to open a restaurant at McDonald's had to pay Kroc about 1000 dollars and then
1,9 per cent of the restaurant's annual profits. He then moved 0,5% of his assumptions to the
brothers McDonald and held the other 1,4%. It is estimated to have been worth around $200
million if McDonald's had managed to earn their 0.5% by 2000.
The McDonald chain was not without its difficulties. There was the legendary McLibel case –
British legal history's longest-term libel case.
The discovery also showed that some beef products were employed to prepare their French fries
and fruits, resulting in Hindus, Sikhs and vegetarians being paid compensation of 10 million
dollars.
The McDonald's Company has been highly criticized, from its meat source to the employees'
conditions in the restaurants.
The US parent company owns McDonald's Restaurants UK Limited and opened its first UK
Restaurant in Woolwich in 1974. Today there are 1200 restaurants in Britain and that makes the
UK a very significant financial market for McDonald's shareholders, even though they account
for just 4% of the world's total number of McDonald restaurants. This study presents McDonald's
operational approach and also how the organization structures processes and products.
Furthermore, this report describes the flow of materials and knowledge between McDonald's
supply chain operations, and highlights the importance of lean, just-in-time management and
other processes embedded in the business. The study also presents Complete Quality Control and
its importance in the operation phase of McDonald's.

McDonalds Performance Objectives:

The management of an organization sets success goals as guiding principles for the vision and
purpose of a business to meet the expectations set in all facets of the organization. It is built
based on the organization's unique activities and operations. They primarily define appropriate
and optimal performance and organizational practices and outcomes. They should be set to
adhere to the aims and priorities of the company. Organization and departmental success goals
should be accomplished by an organization. The performance goals should therefore not conflict,
but should rather seek to achieve the general objectives and objectives of the organization.
Performance goals are used at McDonald's to maximize organizational effectiveness. The supply
of quality fast foods at convenient prices is one of their notable achievements. Performance goals
have helped McDonald's increasing market share and revenue volume and have established the
organizational actions of employees as regards quality standards. The development and
implementation of quality improvement strategies have helped the food retail giant create a
competitive environment and made it a top player in the food retail sector.
McDonald's success goal is to increase product quality and ensure strong customer support and
relationships. In McDonald's business model, customer loyalty is key mainly because the
organization is service-oriented. They have consistently enhanced their customer service in such
a way that consumers have decreased their current waiting time substantially. Describes a fast
and effective order collection method at any McDonald's outlet. In all McDonald's food stores,
the company has worked to ensure that its consumers will experience nice. The firm has also
introduced and incorporated new technologies to improve its service supply, allowing
McDonald's workers to reach more customers every day by digitizing its operations.

The Operational process of McDonald

For customers and on the market, McDonald's manufacturing process is fully transparent. Even a
customer can see the rapid food process and can judge McDonald's hygienic requirements by
giving them a look into the process. Also the ingredients used in food can be checked by a
customer.

Inputs
Where the raw materials is used for thr final products is called input section. McDonald's arrange
all the food materials so that it can be used when it is needed.
Example: Ready all sorts of sauce, ready to serve all vegetables and salads, burgers, cheese and
extra chips.

Information

To research the market and to understand the customer's behavioral pattern information is
necessary. McDonald's keeps a record of their selling information for future market research..
Example: McDonald's Research market with selling information. Besides, Stores past experience
information and McDonald's Company data.

Facilities
McDonald has all manner of food storage and food and service services. They have construction,
machinery, plant and operating process technology. They give a successful worker service
structure. They provide warehousing and management areas. The facility is built according to
standard methods, maps, diagrams and travel costs.
McDonald's worker works, oversees, prepares and manages the operation.
The word 'workers' to identify all the personnel and all types of operations in the main operation.

Method of transformation
The steps taken to convert inputs to outputs. This is an important part of the process that ensures
McDonald's quality services through the transition process.

Output
The product and services are required by the customer for the satisfaction to grow higher is the
goal of the outputs (Becker, Kugeler & Rosemann, 2011). McDonald's performance gives
excellent customer service and satisfaction. They claim that they also provide a consumer with a
better product.

Quality Management
McDonald's maintains the effectiveness of its products and services to meet the company's
minimal requirements. To ensure that the quality of products and services is monitored and
maintained, a quality management protocol should be developed. Quality is an essential
component of McDonald's. Two key factors depend on that. That is one of the reasons why the
fast-food standard is legally needed. Secondly, to maintain the solid reputation that McDonald's
has built up over the years. It is very difficult to ensure the quality of the product and thus
McDonald's practices dual monitoring of the availability of quality foods. This includes the visit
of the Food and Food Hygiene Inspector, supervision inspection, etc.

4V model in operational process of McDonald’s

The volume of output;
The variety of output;
The variation in their output;
The visibility of their service.
The volume of output
McDonald's production of high-volume hamburger is made, serving millions of burgers
worldwide. Amount has most consequences for the organization of McDonald's jobs. The first
explanation is that the work people do repetitively and when standard processes are fixed in a
manual, the systematic method should be carried out using instructions for a large volume of
work. It is also worth designing advanced fryers and ovens. The activities are systemised and
repeated. The cost of all this is minimal. Then look at a small local cafeteria that serves some
short meals. While the menu can contain various items similar to the bigger activity, the amount
is smaller than the wide one. There's also a much smaller degree of repetition. And there's going
to be less worker’s level.
The variety of output
A wide variety of services are provided by the McDonalds company which contain its many
styles of fast food, which serve the restaurant staff. It has to be reasonably versatile to produce
this variety. Employees must be sensitive to client preferences and aversions. This allows you to
prepare and get the greatest customer satisfaction.
The variation of their output
McDonald's essentially has produced varieties, like hot meals, burgers, ice creams, cold drinks of
various kinds and hot candy. In the summer period, consumers usually prefer cold drinks than in
mid winter but in winter, customers prefer hot chocolates.
The visibility of their service
Visibility refers to how much of the operation’s activities its customers experience, or how much
the operation is exposed to its customers. (Dr. Kostas Chaldoupis).
Generally, consumer processing activities are more exposed than inventory and information
processing activities for their clients. But even customer processing activities can choose how
transparent they want to be. For example, a business could decide to act as a chain of traditional
stores in the clothes retail. It may also plan to have no shops at all, instead of running a web-
based service.

Figure 1
Here’s a flowchart of McDonald’s operations management process

Lean principles
Lean was born from development, but the world of information and management has recently
changed its path(Danese, Manfè & Romano., 2018). It facilitates quality development and it’s
based on the basic principle of respect for human beings. In his book "The machine that changed
the world," Womack and Jones described the principles of Lean's development. The ideals are
seen as a way to improve the productivity of the workplace.
Lean Principles at McDonalds
Since the middle of the 20th century, McDonalds has been a key player in the fast food market.
Since then it has faced tough competition, affecting every aspect of its organization. In spite of
all the competition, McDonald’s remained on the market with the focus 'lean.'
The following strategies were adopted by McDonalds to address the following waste sources.
The following are the most important 'lean' practices followed by McDonalds.
Eliminating Waste
Responding instantaneously to demand and simultaneously maintaining quality and reducing
waste is the key principle of the sleep philosophy. Because eliminating waste can go a long way
in reducing production costs.
Overproduction
In the past, McDonald made lots of sandwiches and kept them warm in hot containers. Operating
time was reduced, but this earned them a bad reputation as waste increased. They started making
patties, salads and other sides now and do combine them in finished sandwiches once an order is
placed and it only takes a few minutes to respond quickly to any changes to the request. This
eliminates the risk of over-production.

Waiting Time
The use of modern technology has reduced the waiting time dramatically. Once an order has
been placed by a customer, a computer system will transmit the order to the production staff. The
contemporary cooking equipment and highly qualified McDonalds workforce prepares the order
in less than a minute. It takes only three minutes to process the whole order.
Wastage Processing
Wastes are processed primarily due to the over-processing of products (Applying Lean Principles
In Process Industries, 2020). The 'Speedy System is employed at McDonalds to assemble the
order. The system that the McDonald brothers introduced remains in use.
Inventory
The company should remove the inventory, as keeping it costs opportunities, according to lean
manufacturing laws. McDonalds, however, can still satisfy demand. To satisfy these criteria, the
organization has an integrated inventory management system to monitor the operation and
minimize waste due to over-storage.
Defaults
McDonalds prevents waste due to errors by streamlining the operation. Highly educated and
motivated workers meet their high standards. The effect is a reduction in defects and a reduction
in wastage.
Involving Everyone
McDonald's focus is on full participation of workers. Working as a team is emphasized and
includes everyone. Each guy, from the supplier to the customer's staff, is involved and promotes
a lean culture. They also believe in multi-Skilling at McDonalds, which means that every person
should know every step of the operation. This leads to developing team awareness. The assembly
line system also gives everyone involved in the process a sense of control and accountability.
Striving for Improvements
The lean theory is to achieve high quality without waste (Bhattacharya, Kumar, Garza-Reyes, &
O'regan., 2020). It is impossible to assume that McDonalds has done this. As an organization,
they are always seeking to change and get closer to this principle.

Just -in- time (JIT) manufacturing

Just-in-time (IFT) inventories are a scheme that producers use only when they are required in the
manufacturing process to improve production and minimize waste and thus reduce inventory
costs (Gisario, Kazarian, Martina & Mehrpouya., 2019). Particularly, producers need to
accurately anticipate their requirements.
Implementing manufacturing of McDonald's Just-in-time (JIT)
McDonalds is a fast food company that serves nearly 68 million clients in 119 countries. Just in
time, McDonald's is introduced in order to achieve effective production at the lowest possible
cost and minimal lead time to reduce the amount of waste. It will not start to cook its order until
a customer has made a particular order and served the customer.

This system's key goals are: -

• Just build what the client needs.
• Produce high quality product.
• Reduce material, job and equipment waste to a minimum.

Value enhanced
The burgers are freshly cooked, thereby improving consistency.
Support to Customers
Since the burger is made after placing the order, it is not an issue to make a special order.
Reduction of costs
Since the waste as uncooked content is greatly reduced, it has a longer shelf life.
Waiting Reduction
Reduce waiting time from 11 minutes to just 2 minutes for the customer.
Goals of Success
Quality targets relate to organizational processes and their essential role to meet the needs of the
consumer. There are five objectives for performance:
Quality
High quality is desired by many customers. Each company needs to provide its customers with
error-free products and gain competitive advantage. The goal of quality contributes to some
organizational acts and practices in order to give the customer a service.
McDonald's serves a number of high quality and healthy foodstuffs, including salads, fruit and
vegetables.
McDonald's staff was skilled in preparing and presenting food in compliance with very particular
strict protocols, in particular the processing and handling of raw and cooked items. The ten-
minute 'keeping period' of sandwiches, for example, guarantees every customer high quality and
freshness. This ensures they are not discarded until the goods are sold within 10 minutes of
preparation. McDonalds complies with all hygiene standards, including hand washing.
McDonald's excel in continually enhancing the consistency of its customers' reviews.

Analysing 5 Performances Model for McDonald’s

Speed:
Speed means how long consumers plan to increase the availability of their goods or services
before their service organizations arrive, if the waiting period is reduced.
The business process at McDonald's is so well planned that each customer that comes is quickly
served. In order to ensure that the order is delivered within 3-4 minutes, the company must
prepare the burgers and other items. The staff guarantees that the order will be shipped to the
customer even during busy hours.
Dependability: 
The processes of a company must consistently meet the promised product or service delivery
time.
McDonald's provides consumers a more efficient meal process on time. They have trained
employees; each of them is assigned a specific job to produce goods on time. During weekdays
and weekend, McDonald's a has predictable opening hours; the items offered on the menu are
continuously available every day.
Flexibility:
This refers to process elasticity and the adjustment in the product or service spectrum to make
operations more responsive to consumer demand shifts.
McDonald's needs to widen the variety of new items it sells as customer’s appetite shifts.
McDonalds provides a wide variety of consumer flexibility. It provides a balanced range for both
adults and children of cultural menus on the market and maximizes the option. McDonalds has a
large number of qualified employees to be versatile. It establishes a shift structure between the
crew members that enables them to be sufficiently versatile in their work.
Cost:
Refers to a process cost reduction, which results in a cheaper operation. The best approach to
minimize costs is to concentrate on the requirements of the client, i.e. to satisfy both product
design as well as service efficiency goals, in order to avoid refurbishment and waste. Operations
should concentrate on correcting the service rendered. Processes like information management
that lead to error reduction should also be organized.
McDonalds' cost savings approach is well designed. There is a well-known low-cost supply
chain at the restaurant. They also implemented a just-in-time approach that eliminates needless
waste and storage costs. Food can be sold at a lower price ats the expense of non-solid food is
not absorbed into it. This implies at the end that McDonald's would have lower prices.
Conclusion:
They guarantee quality and delivery speed and ensure a very successful food processing system.
McDonalds has used a value meal strategy that encourages consumers to sell a sandwich, fries
and drink together, at a discount. "All organizational goals are therefore observed to be related.
When quality is increased, costs are therefore reduced, and time is also improved. Thus the other
goals are attacked explicitly by taking specific steps for this target, as needed, by commencing at
quality along with time reduction. Therefore, a range of such steps would bring continual
changes simultaneously to all four organizational objectives".

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