Operations management deals with the processes which are engaged to deliver the final products or services (Voss, 2010). Every organization in this globalized competitive economy is aiming at designing cost effective and appropriate operations management processes, which encompasses varied steps and procedures so as to extend their core competencies. The process of operations management has been revolutionized by use and application of IT, which has benefitted companies considerably. As the scope of operations management deals with all the processes starting from raw material procurement till supply chain management for final delivery of goods or services to customers, use and application of IT have resulted in cost savings and goods tracking as well (Peng & Lai, 2012). Every organization have their well-defined operations management processes however their components might differ from one another, which in turn allows to take decision making for their value chain. The scope of current analysis pertains to identifying a process map for McDonald’s burger product. Applying quantitative methodologies for decision-making is undertaken for the purpose of operations process planning, scheduling and inventory management. The role of operations management in strategic management of the organization and its value chain is also analysed (Mentzer, Stank & Esper, 2008).
McDonald’s is an American fast food chain company. The Company was established in the year 1940 by Richard and Maurice McDonald’s in San Bernardiono. The fast food chain restaurant is currently present globally, across 36,900 locations. The Chairman of the Company is Enrique Hernandez Jr., and CEO is Steve Easterbrook. It employs over 235,000 employees and has operating revenue of US$32.622 billion. The Company has professional designed and quantitatively optimized operations management processes, which provides the Company with profitability. The current scope of analyses includes designing process map for burger delivery of the Company by understanding some key components from its value chain.
Operations Management within any organization initiates from the point of procurement of raw materials reaching the product point. Raw material procurement is defined as an input process, post which raw materials goes through several transformation processes to become final products or outputs (Krajewski, Ritzman & Malhotra, 2010). The final products is stored across warehouses and then shipped to points where they are available to end consumer for their consumptions. Though at every point of the three stepped process as indicated below critical and valuable decision has to be made such that a value chain can be generated. The transformation process where operations management designs critical stages in order that final product can be delivered, needs to extensively make use of decision making models for creation of value chains. The figure below depicts the entire value chain activity for the purpose of manufacturing a product for differing organization (Jacobs, Chase & Lummus, 2014). Where operations management is concerned with only transformation process which includes produce and manufacture and develop and design. At McDonalds or any other organization, components of the operations management process play a vital role in determining success or creation of value chain or varied processes.
In order that final product is manufactured and products are designed operations management functions has to be clearly understood. Some of the key operations management functions are as;
Organizing: Once a plan for allocating resources is arranged then organization of processes has to take place. The transformation process within the organization progresses with the aid of human resources, finances, outside suppliers and technology. In absence of appropriate organization of these resources such that each can contribute at their particular time frame can lead to dysfunctional system (Harrison & Lock, 2017). Therefore, operations management has to take decision which allows organization of resources, so that they are able to contribute effectively in the value chain. At McDonalds processes, suppliers have to be organized such that they are able to provide quality meat and bread at particular time frame and at particular cost as well as quality. Employee shift need to be organised such that they are able to process the patty and serve customers within their expiry timeframe.
The below depicted process map for manufacturing of burger at McDonalds reveals the various processes that the raw material goes through to become final product.
Operations managenent processes is crucial to very organization as it allows cost control and ppanning operations in an adequate manner. There are several principles of quantitative techniques which are applied to operations management processes such as to allow firms to take effective decisions related to their porcesses (Christopher, 2016). As operations management involves varied doamin and fucntionalities key processes which are relevant to its decision making have been identified along with usage of quantitaitve models. Decision making is crucial for every business, where they have to take decision with limited information available. Decision making problems are divided into two types probabilistic and deterministic. Similarly according to the defination of the problem, various qauntitative techniques can be used for the purpose of operations process palnning, scheduling and inventory management.
Scheduling: Scheduling is a critical aspect for any operations management processes. It is done according to a format which allows one process to take place after the another. Network analysis tools as PERT and CPM is used for quantitative defination of scheduling. PERT is program evaluation and review technique where CPM is critical path method. A Critical Path Method is used for the purpose of defining scheduling function. A critical path provides an easy and fastest approach which can be adopetd for arriving at the completed product within the designated time period. The tool CPM can be used for planning, scheduling as well as for purpose of control (Melo, Nickel & Saldanha-Da-Gama, 2009). The tool allows the entire processes to be broken down into smaller activities such that they can be conducted one after the other in a planned manner.
Operations management has a role in strategy of the organization and also in its supply chain implementation. Operations management is vital to organizational strategy implementation methodology in numerous organizations and associations (Kumar & Suresh, 2009). Operations management department works with different supervisors and administrators to decide how operational arranging can add to the long haul procedure of the organization. They give the functional attribute of the key tasks of the organization by arranging the exercises that add to the general objectives of the association. This arranging can incorporate deciding objectives and arrangements for coordination’s administration, spending administration and bolster administrations administration. So, the activities administrator guarantees that all divisions in agreement about the bearing the organization is heading. To guarantee that planning is applied, operations management provides guidance to different directors under their supervision (Russell & Taylor-Iii, 2008). All offices finishing their vital capacity inside the organization by meeting efficiency objectives and budgetary rules, is a key functionality of the operations management. Operations management department might need to make remedies or changes when objectives are not being met or completed in a way predictable with organization approach.
Moreover operations management helps in the accomplishment of organizational strategy attainment by organizing the exercises between different offices inside their organizations. They enhance effectiveness and center by encouraging and enhancing relations between offices, particularly those that regularly work autonomously of each other. Operations management key role is indispensable to the proceeded with technique and vision of an organization in his part as a resource administrator (Terwiesch & Cachon, 2012). Operational administrators must have the capacity to evaluate the resources of the association, regardless of whether they be money related or something else, and guarantee that the assets are utilized as proficiently as could be allowed. A compelling activities supervisor can survey regardless of whether assets are being utilized shrewdly and increment productivity because of his evaluation. Gainfulness adds to long haul organization objectives and procedures by giving extra assets to arranging technique.
Operations management plays a crucial role in strategic management of supply chain operations within an organization. The process of supply chain is triggered once raw materials is procured from suppliers and transforms into final produce. Therefore, in absence of appropriate operational processes, supply chain functionality cannot initiate (Seuring & Müller, 2008). In strategic management of supply chain it is essential that the operations management functions operate at efficiency. As end of the supply chain processes is customer delivery and satisfaction, in absence of proper operations processes such cannot be ensured. A supply chain management encompasses steady flow of goods and processes from one end to the other; one of the crucial processes of supply chain is operations management. Both the functionalities have to remain well coordinated amongst one another in order to create value for the organization and for the business to gain profitability. Though operations management role is to push forward goods and processes into next step of the supply chain, but its core aim is to optimize processes such that profitability can be attained. Role of operations management is to keep intact supply chain processes such that scheduled flow of operations can take place.
Operation is one of the essential capacities in an organization. For a viable and proficient working, it requires a fruitful supply chain management with well-working through all over floods of the store network arrange. Operations management is regarded as the necessary element for, society, investors, workers, providers and clients. In order to make such productivity and manageability, operations management estimates the market necessities and adjust the resources, outlines the most ideal item that will be delivered in best and effective way, picks the best area where the resources and market inside achieve, designs and composes the fitting assets, procures and makes utilization of these assets in an opportune way to produce by the suitable innovation and leads talented specialists and subordinates to create proficiently.
The productivity and maintainability of the organziation is undertaken, by utilizing most appropriate data innovation and settling on the most ideal choices amid the stream in the store network system will guarantee the coveted effect. These capacities must be performed most adequately and with most elevated conceivable productivity. The part of activities and supply chain in the organization from the part of the unique necessities that need fulfilling, because of the specific mix of client, item, industry and, market; Operations and production network. Therefore it can be ascertained that operations management and supply chain management functions work hand in hand and cannot be treated as seprate.
Conclusion
Analysis of operations management theories and concepts reveal the importance of the domain. Operations management comprises of a wide range of functions, each of the components contributes towards making the process effective and efficient for the organization. For analysing role of operations management McDonald’s which has high effective systems is analysed. The role of operations management is considered to be critical in assuming ultimately goals and aims of the organization which is to deliver final products or service to end customers. Operations management in order to be an effective process takes into consideration various quantitative models for calculating effectiveness of operations. An efficient operations management process within an organization has a crucial contribution in determining profitability for the organization. Hence it can be concluded that operations management allows taking of important decisions contributing to key strategies for the organization. It also integrated with supply chain management processes to deliver value chain for the entire organization.
Reference Lists
Barratt, M., Choi, T. Y., & Li, M. (2011). Qualitative case studies in operations management: Trends, research outcomes, and future research implications. Journal of Operations Management, 29(4), 329-342.
Bozarth, C., & Handfield, R. (2008). Operations and supply chain management. Strategies, 21, 22.
Chhajed, D., & Lowe, T. J. (Eds.). (2008). Building intuition: insights from basic operations management models and principles (Vol. 115). Springer Science & Business Media.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2010). Operations management: processes and supply chains. Upper Saddle River, New Jersey: Pearson.
Kruger, D., Ramphal, R., & Maritz, M. (2009). Operations management. Oxford University Press Southern Africa.
Kumar, S. A., & Suresh, N. (2009). Operations management. New Age International.
Melo, M. T., Nickel, S., & Saldanha-Da-Gama, F. (2009). Facility location and supply chain management–A review. European journal of operational research, 196(2), 401-412.
Mentzer, J. T., Stank, T. P., & Esper, T. L. (2008). Supply chain management and its relationship to logistics, marketing, production, and operations management. Journal of Business Logistics, 29(1), 31-46.
Peng, D. X., & Lai, F. (2012). Using partial least squares in operations management research: A practical guideline and summary of past research. Journal of Operations Management, 30(6), 467-480.
Russell, R. S., & Taylor-Iii, B. W. (2008). Operations management along the supply chain. John Wiley & Sons.
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710.
Sousa, R., & Voss, C. A. (2008). Contingency research in operations management practices. Journal of Operations Management, 26(6), 697-713.
Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain management (Vol. 17). Springer Science & Business Media.
Terwiesch, C., & Cachon, G. (2012). Matching supply with demand: An introduction to operations management. Mcgraw-hill Education-Europe.
Walker, P. H., Seuring, P. S., Sarkis, P. J., & Klassen, P. R. (2014). Sustainable operations management: recent trends and future directions. International Journal of Operations & Production Management, 34(5).
Voss, C. (2010). Case research in operations management. In Researching operations management (pp. 176-209). Routledge.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download