Operations Management is defined as the administration of different business practices to create the optimum efficiency within an organization. The main focus of operations management is connected to converting all possible materials and fixed labour to services and goods for the maximization of business profits (Miši? & Perakis, 2020). The main functions in operations management are mainly in planning the development and designs of services and products. Business practices are implemented to balance operating business costs to maximize business profits. It controls the entire planning, controls, and manufacturing service delivery procedures. The primary objective of operations management lies mainly in fulfilling the main organizational resources in various services and products in fulfilling customers’ requirements. The Operations management process helps compute total demand and planning as per business requirements.
The main elements of operations management for making MC Donald’s a success model are mainly as follows:
|
Inputs |
Transformation |
Output |
|
|
Materials |
Raw Materials, capitals of labors |
Goods and services |
Optimized business productivity. |
|
Information |
Information of organization |
Information and data of the organization |
Customer feedback |
|
Customers |
Inputs of customers |
Feedback of customers |
Maximizing quality transformation procedure in fulfilling customer requirements. |
The triple bottom line concept helps measure both social and environmental implications in financial performance in MC Donald’s. The main addition of financial performance for maximizing profits is divided into three main sections: planet, people, and profit. The objectives of the triple bottom line have aims like measuring the social, environmental and financial performance of MC Donald’s over a while.
The main concept of Triple Bottom line aims to measure the organization’s social, financial, and environmental impacts for some time. The theory of the TBL framework is used in advancing the main sustainable goals in various business aspects and in measuring the entire costs of business. The theory helps focus more attention on environmental and social challenges like financial problems.
Two main ways of MC Donald’s operations management in social, environmental and Economic Bottom Line performance
Five performance objectives of the Operations Manager for McDonald’s are mainly dependability, flexibility, costs, speed and quality.
The objective of costs plays an important role in operations management. As an Operations Manager, the restaurant charges cheap prices of Kid’s Meals and receives profit from it. The finished services and products help fulfil customers’ requirements in a planned and effective way.
The speed performance objective is vital for the restaurant as the new system provides a detailed personalized one to one service for enhancing accuracy. Mc Donald needs to be more friendly and organized as an operations manager. The main speed performance objective lies in delivering products in sales generation. In evaluating business performance, it is highly important in both productivity and efficiency. The business helps in emphasizing a wide range of performance for employees and management.
Quality is the main performance objective in provisions of fast foods at convenient prices. The main aspect of the food industry is to serve all daily customers. Process quality food is the main characteristic of McDonald’s (Howse et al., 2018). The commitment of Mcdonalds’ is to ensure quality foods for all individuals. The prime focus will be mainly more on food quality and operational efficiency.
The dependability performance objective is the main property that needs to be focussed more as operations manager of McDonald’s. Dependability is proved to be more vital in delivering products and services. The main process is to track the main performance objectives of importance.
Increasing the overall operational efficiency requires the arduous effort of the restaurant for proper commitment and learning. Both cost and speed help make the system more organized and understand day-to-day operations. The cost of meals is usually affordable at a much cheaper price. It helps the restaurant serve more customers daily in improving the organization’s efficiency. A properly planned decision is taken into account to increase the overall profit margins, and hence the price of the product is eventually cheaper.
The company implemented a new ordering system for one-to-one service to enhance accuracy. The company established a proper balance between customers’ requirements and reduced waste to accomplish the business objectives. The forecasted demand and the stock is controlled properly. The effectiveness of the restaurant needs to be perceived as mainly taking care of meals for all age groups. Cost is one of the main elements of business competition and reduces indirect and direct costs.
The operational efficiency needs to be improved by improving the customer services and eliminating the main success barriers. Managers need to audit the metrics and business intelligence tools for operational evaluation. Proper systems training both in management and in studying the operational demands in analyzing the relationships. The service-oriented industry is used to track problems and detect the main opportunities for improvement. For operational efficiency, customer service needs to be improved, and orders are fulfilled in the review of the process (Lim & Arumugam, 2019). The change in inputs and outputs provides a lot less input for the same output.
As the company is expanding its outlets in rural and urban areas, there are huge accomplishments in delivering fast foods at a lot more convenient prices. It is one of the main players in the retail food industry, thus serving more customers (Hosseini et al. 2020). The performance objectives have helped the restaurant increase market performance that has changed for a couple of years. It has received phenomenal success with the quality of fast foods at a much cheaper price. The employees of Mcdonald’s serve a lot of customers daily. The main goal of McDonald’s is mainly in serving good and quality food to all customers. It is the main notable accomplishment of Mc Donald’s over some time.
Five different operational activities that need to be addressed for effective and efficient operation of Mc Donald’s outlet are as follows:
Mc Donald’s uses the concept of digital, print, and advertisements to communicate their products and targets to a large audience. Relevant content is posted for the audience in connecting with both followers and customers (Amalia & Putra, 2021). The prime business resources lie mainly among the employees and restaurants across locations. Mc Donald’s distributes its products all across the restaurants.
The restaurant focuses its customers on services and sales vital across the food businesses. The availability of fast food is available at a cheaper price and is one of the main global players in the food business. The collaborative approach helps in connecting all the global franchises worldwide. The main functions of customer service workflows help analyze customer service performance and delivery of data to improve the overall customer experience levels. Proper assistance is provided to the customers in using the products and services.
Mcdonald’s makes more revenue by providing more leverage to products, fast food franchises, and large markups. According to the strategy, McDonald’s remains more promising to business growth and deployment of large markups (Shcherbakova, 2020). The restaurant earns revenue mainly from its outlets and marketing activities. The main operating activities resulting in revenue generation are sales shares and overall income from investments. Mcdonald’s generates revenue by leasing properties and from franchises. The main operations strategy has a concern in decision making activities and in accomplishing roles and objectives.
The main business strategy of the restaurant is dependent on cost leadership. The strategy involves the reduction of costs at a lot less price. Mc Donald’s provides quality food products at a lot less price. The low cost of McDonald’s offers products that are quite cheaper in comparison to the competitors (Vallance & Edwards, 2021). The restaurant’s business strategy is to provide superior value in formulating customers’ requirements in terms of cost exchange. The strategies act as an overall amalgamation of international market expansion strategies.
The organization sells hamburgers, cheeseburgers, chicken Mc Nuggets and Soda products (Lim, G & Arumugam, 2019). Decision activities like inventory management and location strategy are the main aspects of operations management.
The main key challenges that are observed as an operational manager are mainly as follows:
Branding problems act as an important challenge in the organization’s operations management. There is a rapid enhancement of strong competitors of McDonald’s like Starbucks. The brand experience brings the culture, metrics and employees together in the business expansion of the outlets globally. As a result, there are challenges like evaluating customers’ main needs and preferences (Panwar et al., 2019). There are several other challenges like downsizing employees due to less demand for products and reeling under huge losses. The organization fires their workers due to a lack of customer loyalty. The treatment of customers needs to be proper, which will help expand the organization’s business globally.
Customers’ perceptions vary due to proper reviews and public relations in creating a proper response to the audience. Mcdonald’s are mainly moving away from the next generation customers (Fatorachian & Kazemi, 2021). The organization is losing all next generation customers due to a lack of choices and preferences. Most of the customers are giving more priority to the competitors of Mcdonald’s (Lim, G & Arumugam, 2019, June). The sudden decline of a strong customer base is the main challenge that acts as a challenge of operations management. Operational management helps allocate resources that are available for finished services and products in a more effective way.
Ineffective communication proves to be quite challenging for any position within an organization. The main challenge of operations managers is the lack of communication effectively for both internal and external stakeholders (Amalia & Putra, 2021). Operations managers take a lot of time developing communication skills which act as the main challenge. Due to ineffective communication, there lie problems in ineffective communication and problems in optimization and performance.
Total productivity= Total output/total input= $20,280/$13528
=1.499
Single productivity formula
= 46/8
=5.75 per hour
Labor Factor productivity
=36/4=9
=9/4=2.25 per hour
Total costs= ($680+$400+$750)=$1830
For computing the costs of ladder= (46*155)=$7130
Multifactor productivity of Bunda Stainless steel= 7130/1830=3.896
i> From the problem statement it is observed that
Labor Factor for week’s productivity
Total gas toasters=120
Damaged gas toasters=36
Undamaged gas toasters=(120-36)=84
Total labor hours = 80
Damaged toasters sold= 36*80=2880
Undamaged toaster sold=120*50=6000
Labor productivity= (2880+6000)/80=8880/80=111
ii> Total labor productivity= $60 *80=4880
Percentage change=(4880-111)/4880*100
=0.97*100
=97%
References
Amalia, L., & Putra, P. (2021). The Effect of Service Quality, Product Quality, Experimental Marketing and Location by Intervening Consumer Satisfaction on McDonald’s Repurchase Interest in the Green Garden Kedoya Branch. Journal of Management and Leadership, 4(1), 53-67.
Fatorachian, H., & Kazemi, H. (2021). Impact of Industry 4.0 on supply chain performance. Production Planning & Control, 32(1), 63-81.
Hosseini Imani, M., Zalzar, S., Mosavi, A., & Shamshirband, S. (2018). Strategic behavior of retailers for risk reduction and profit increment via distributed generators and demand response programs. Energies, 11(6), 1602.
Howse, E., Hankey, C., Allman-Farinelli, M., Bauman, A., & Freeman, B. (2018). ‘Buying salad is a lot more expensive than going to McDonalds’: young adults’ views about what influences their food choices. Nutrients, 10(8), 996.
Irawan, M. I., Wijayanto, R., Shahab, M. L., Hidayat, N., & Rukmi, A. M. (2020, March). Implementation of social media mining for decision making in product planning based on topic modeling and sentiment analysis. In Journal of Physics: Conference Series (Vol. 1490, No. 1, p. 012068). IOP Publishing.
Lim, G. N., & Arumugam, P. V. (2019, June). Environmental Corporate Social Responsibility Management and Strategy to Reshaping Consumer Behaviour. In IOP Conference Series: Earth and Environmental Science (Vol. 268, No. 1, p. 012122). IOP Publishing.
Minashkina, D., & Happonen, A. (2020). Decarbonizing warehousing activities through digitalization and automatization with WMS integration for sustainability supporting operations. In E3S Web of Conferences (Vol. 158, p. 03002). EDP Sciences.
Miši?, V. V., & Perakis, G. (2020). Data analytics in operations management: A review. Manufacturing & Service Operations Management, 22(1), 158-169.
Mosteanu, N. R., Facia, A., Torrebruno, G., & Torrebruno, F. (2019). Fractals–A Smart Financial Tool to Assess Business Management Decisions. Journal of Information Systems & Operations Management, 45-56.
Panwar, D., Anand, S., Ali, F., & Singal, K. (2019). Consumer decision making process models and their applications to market strategy. International Management Review, 15(1), 36-44.
Shcherbakova, E. (2020). Importance of Diversified Marketing Strategies for Fast Food Restaurant Chains. Available at SSRN 3738461.
Valaskova, K., Bartosova, V., & Kubala, P. (2019). Behavioural aspects of the financial decision-making. Organizacija, 52(1), 22-31.
Vallance, S., & Edwards, S. (2021). Charting New Ground: Between Tactical Urbanism and Strategic Spatial Planning. Planning Theory & Practice, 1-18.
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