Total Quality Management (TQM) at McDonalds

Executive Summary
The purpose of this assignment to elaborate about Total Quality Management based on how it implements and how it impacts on an organization. For this assignment I have selected McDonalds as my main research to analysis on their TQM . Total Quality Management allows an organization to enhance their high quality, products and economical product environment and also customer satisfaction. In this assignment, I have analysed in all the operational strategies and studied on their ways for achieving their goals by providing their customer the best service with best quality. There is some information that I have found from the internet and analysed the strategies which has implemented based on my knowledge and by my observation on the working environment of McDonalds.

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INTRODUCTION.
McDonald’s Corporation is the world’s most leading food service organization. McDonald’s was introduced by two brothers named Dick n Mac McDonalds in the year of 1940’s in California. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. McDonald’s was emerged from Ray Kroc who was in the year of 1955 became one of the exclusive franchising for the whole United States of the American. Every food franchise company would have their own motto, as for McDonald’s; their motto is to focus on services, quality, value and cleanliness. In the year of 1977, the first McDonalds outlet was opened in Ireland, Dublin’s Grafton Street.
McDonalds became popular in Ireland and the second restaurant was followed on O’Connell Street. There are about 74 McDonalds restaurant around the world and opened five new outlets called Mc’cafes in Dublin as to provide more variety for their services and employed over 4,000 people in their organization. McDonalds in Ireland has achieved one of the “50th best companies to work for in Ireland”. McDonald’s has a community programs that focused on local environment that is related to current issues and as well as for family issues. McDonald’s has sponsorship of fundraising for children’s charities, environmental activities and for education. McDonald’s is the first restaurant that offers their customers with nutritional ingredient with information and these offered nutritional leaflets. This organization plays their role as promoting well balanced diet and active lifestyle for children. The Ronald McDonald House charity that was founded in the year of 1977 and this program offers scholarships; social welfare program and healthcare for children.
McDonalds has four principles such as, Service, Cleanliness, Quality and lastly Value. This combination has achieved 100 percent of customer’s satisfaction. This business is operated based on strict specifications for every products, raw materials and the responsible for implementing the systems to make sure the highest quality on the food throughout the restaurants in Ireland.
McDonald’s in Malaysia was first born in December 1980 when McDonald’s Corporation, USA introduced the GOLDEN ARCHES RESTAURANTS SDN BHD the license to operate McDonald’s restaurants in our country. Our first outlet of McDonald’s was opened at Jalan Bukit Bintang, Kuala Lumpur on 29 April 1982. There are about 185 restaurants that are located in Malaysia and its currently expanding at about 10-15 restaurants in every year. McDonald’s has formed many job opportunities for Malaysians. McDonald’s Malaysia has employs more than 8,000 local people and gave opportunities for school leaves who are meanwhile waiting for their SPM results or even for college students who wants to work as for their side income. McDonalds’ has about 120 staff to support at its headquarters to manage the day-to-day operations for the McDonald’s business. McDonalds’ have two main regional office in Penang and Johor Bahru in Malaysia.
2.1 ) McDonald’s Mission
McDonald’s has a mission that is to be in their customer’s top favourite position and the way they provide their food is to inspired their customers who are delight with each customer with quality, cleanliness, value and services. McDonalds would invite their customers to be part of this winning team and gives every customer an opportunity to grow with the family and striving to give the smiles on their faces of billions of people around the world.
Total Quality Management
There are important implications for the way people are managed in their business. Every restaurant has responsibility for quality; power and responsibility need to be given for their employees who are doing the work in the organisation. Total quality management in McDonalds’ requires continuous product improvement and the quality customer service where the needs and wants of the customers are constantly met together. Therefore, to ensure the employees in McDonalds that everyone is responsible for quality in their restaurants. The entire organization of McDonalds has excels in every part of services and products that is crucial for their customers. It can be described to total quality management as the constant quality improvement for the process. McDonalds also practice the strategy of total quality management and tries to improve its affectivity and efficiency level by working in different areas such as constant improvement, quality of goods and training, customer satisfaction, and services.
3.1 Product Quality
The skills of a service or product to meet customer’s needs are phrase as quality.
McDonalds works a lot in the quality development of its goods by improving
The Ingredients and nutrients of the food stuff. Some current nutrient’s quality improvement information is as under: For people who are concerned about food allergies, McDonalds’ have combined all the allergen information into the ingredient statement for every menu item so that customers can have one current foundation of the information. The nutrition information is derived to perform the testing in accredited laboratories, published resources, or from the information that is provided from McDonald’s suppliers. The nutrition information is based on standard product formulations and serving sizes. All nutrition information is found on average values for ingredients from McDonald’s suppliers throughout the world. Variation in serving sizes, preparation techniques, product testing and sources of supply, as well as regional and seasonal differences may involve the nutrition values for each product.
3.2 Training
In the next step of Total Management Quality, McDonalds puts full concentration on its human resources. This objective of training their human resources in McDonalds is to build a balance in the whole working of employees. Therefore they also try to create a link between the quality of a product and the skills of the employees. In McDonalds almost every employee are given training. For an example: a cashier is trained to handle cash, floor manager is practised against his degree in hotel management. And all the other staff is trained accordingly to their job description in McDonalds.
3.3 Continuous Improvement
The total quality management strategies in McDonalds are product quality improvement, employee training and development that as be places on the way of continuous improvement in all its functions in the organization. The continuous improvements have fulfilled the needs of the customers according to their desires, wants or requirements and also build its products further competitive as before. This continuous improvement also contains some other factors like benchmarking a quality standard, employee empowerment and sustain just in time inventory system.
3.4 Customer Satisfaction
McDonalds pays more attention on the satisfaction level of their customers. To improve the quality standards, the employees are well trained and continuously learning desire of McDonald’s results to increase the level of satisfaction of their customers towards their products. When the quality is improved and the workers are serving the customers is well trained and the overall service environment is improved then there is no room left for customer to fell dis-satisfaction towards the company
3.5 Human Resources in McDonalds.
Being in part of the pure services and good production divisions, as for McDonalds applied a very good strategy for their human resources. There are such divisions in McDonalds as such as Training would provide best opportunities for their own employees who actually need to be provided due to their lack of working skills in the department. This would help them to achieve its goals efficiently. Separate departments for different functions based for McDonalds it has different departments as for different parts for the marketing department that is consist with the marketing experts as they has perform marketing analysis and the financing department are consist to the finance experts who would arrange and manage the finance. Competency in McDonalds trains their employees in every department as to enhance the ability and to improve the employee’s skills and also to provide the employees to ensure that they would serve the right product to the right customer on the right time. This would enable the management to compete with the market. Proper utilization of resources: in McDonalds there are experts in different department and they would use the opportunities and the available recourses. McDonalds also provide good services to the customers more efficiently. As the last is, employee’s job satisfaction, McDonalds provide training for their employees to improve their skills in McDonalds and the results would enhanced their employees to performance even more better. It would make them even more interested to work in a well manner and this would give good reputation for McDonalds.
McDonalds Focus on the Competition
The weakness point of a business depends on the system and people involved within the organization. It begins by hiring the people who can dedicate in the business’s objectives and can a do better job in the organization. In McDonald’s, the crew can make the business achieved for success and at the same time downfall can be happen. Investing in the value chain is a simply idea but in the end it still works. Happy employees make customers happy, and it can create happy shareholders. McDonald’s value is significant to implement a good atmosphere that can invite the customers. The automation of the process can discard the corruption and manipulation inside the company. In McDonald’s the automation process of the sale are introduced to make it more proficient and straightforward than the manually operation system.
The training and re-training can leave a legacy for the future employees in McDonalds. The on-the-job training in the management of the McDonald’s is an open the door for opportunity and they can acquire the trainees to be part of the company. The leadership in McDonald’s are involvement in the business is the most prominent strategy. But if the management failed to manage the business, the problems might break the connection of the business towards the people and its customers. The strength can start in an intensive research study where they can explore for the new extraordinary service they can offer to the customers as well on their shareholders. The strength also lies on the management’s ability to analyze where they can find the solution in their problems. Improvement of some process and systems can make the problems be solved. And with further understanding, all the issues that involves inside the business whether it concerned with the people or the system.
5 ) The gaps in McDonalds.
The first gap would be between what customers want and what McDonalds thinks about their customers wants in their restaurant. This gap is the results of a misunderstanding or a misrepresentation of the customers’ desires, wants, or even their needs. An organization that does a small or customer satisfaction research is likely to experience in this gap.
The second gap would be between what McDonalds thinks about their customers want and the quality specifications that McDonald’s management develops to provide the service for their customers. Basically, this gap is the result of management’s incapability to translate customers’ needs and wants into the delivery systems within their firm.
The third gap would be between the service quality specification and the services are present in every company. If both gaps 1 and 2 have been closed, then gap 3 is due to the inability of management and employees to do what should be done. Poorly trained or poorly motivated workers can cause this gap. Management needs to make sure that employees have the skills and the proper tools to perform their jobs.
The forth gap would be between what McDonalds provides and what the customers are informed towards the providers. This gap is called communication gap. It may add in the misleading or deceiving advertising campaigns shows potential more than the firm can distribute or do “what it takes” to get the business in McDonalds. McDonalds need to make sensible customer expectations through exact communication about what firms can provide them.
Firth gap would be between the services that customers get and the services they want from McDonalds. This gap can be negative or positive and for an example, if a customer expects to wait only 2 minutes for its order, the customer’s evaluation of service quality will be high. However, a 10 minutes wait would be resulted as the lower evaluation from the customer perspective.
Recommendations
The successes of McDonald recommendation depend on the ability of the entire organisation to comprehend. These recommendations are not inflexible to handle because it will start from the initiatives of the organization or the whole team.
Reliability in McDonalds is the capability to execute the service exactly, dependably, and constantly. Reliability a way to show the service that is right the first time. This section has been established to be the one most significant to consumer’s .Responsiveness is the talent to be provided quick service. Examples of receptiveness include calling the customer back immediately, serving the lunch fast to customers who are in the rush for something, or delivering customers food to their homes or office. A declaration can be practiced when the knowledge and consideration of the employees in McDonalds and their capability to convey trust. The expert employees who treat their customers with respect and make customers feel that they can trust the organisation represent the assurance to their customers. Their empathy is the act of concern towards their customers and an individual concentration to customers. McDonald’s employee identifies their customers, recognizes them by addressing their name, and knows their customers’ exact requirements and provides empathy to their customers.
7 ) Analysis and Conclusion.
McDonalds’ are an organization that realized on the significance of customer-centred philosophies and they emphasise on how to turn the quality management approaches to help managing their businesses. An effective approach has been analysed and the differences between customer want, need and expectations and their perceptions has been highlighted with the full support with an example. These important gaps is the serious quality that associated with external customer services and this could be extend to secure other major gaps and consequently, it could be urbanized in order to be functional for internal customers as for the employees and the service providers. McDonalds has maintained their products quality accordingly to the international standard and also maintains a very good environment in every premise of theirs. McDonalds has a very good learning environment for their employees to development and provides customer satisfaction as daily life goes on for them.