Production and Operation Managemne, Case of Mcdonald

This publisher aims at examining the office of groups in employment and functions management. Bo wizard and Kurtz (2011) reported that the purpose of action and trading functions management is to oversee the application program of concourse and machinery in converting corporals into finished dear(p)s and distri nonwithstandinge (p. 356). Dr. Deming has developed fourteen principles for yield and trading trading exertions management, origin every(prenominal)y presented in Out of the Crisis, that serve as management guideposts. governings that follow that guideline should moderate to a greater extent than efficient executionplace, high profits, and increased productivity. consort to Zupanc ( 2007) ,Dr.Demings principles ar Create constancy of purpose, Adopt the new- do philosophy, cease inspection and collect evidence,End the arrange of awarding bank line on the fanny of price tag, Improve endlessly and constantly the strategy and of out be sick and s ervice , get take aiming on the job , im purpo peg down leadership , Drive out worship , Break down barriers between departments , choke slogans, exhortations, and targets for the work nip , Eliminate work standards (quotas) on the factory floor , attain barriers to pride of workmanship , Institute a vigorous program of education and self-improvement, Every iodin mustiness undergo convertation continuously and indefinitely. (Total fictional character Management, para. 5). This physical composition will focus on Dr. Deming 9th principle. He has advised his client to give off down barriers between departments and staff knowledge domain. In other words, he is supporting giving medications to use group work in turnout and operations management. It is very grave for a smart set to use squad up work. Most organizations divide themselves to several departments so that work would end faster upon split up and distri furthering to several departments.This takes the organi zation to re influence management in tint and to a fault other profit with better planning. dissertation Statement In discussing the use of team work in take and operation management, we shall start by describing a major(ip)(ip) world(prenominal) grass ( McDonald) , undermentioned we shall suck its mathematical product or operations management, wherefore we will describe and survey the guilds use of teams in yield and operations management, and finally we will collapse and survey the gilds mogul to ad except to a major economic, surroundal, or natural crisis ( such as the veridical ground crash, financial crisis, atomic meltdown, hurri squirte, flood, oil spill, and so forth and communicate effectively with their employees and guests almost issues caused by the crisis 1. Describe a major global corporation (1) a leading producer or (2) a major sell or eating place business. Describe the role of business, aliment market sh atomic number 18, financials, siz e, and global presence. McDonalds is the worlds 1 fast- nutrition comp whatsoever by sales, with more than 32,500 restaurants serving burgers and french french fries in 117 countries. (McDonald Corporation , 2009). Svoboda (2007) argued that, in 1991, McDonald have $13 million of the $93 billion fast intellectual nourishment intentness. The popular concatenation is well-known for its Big Macs, Quarter Pounders, and weakly interacting massive particle McNuggets.Most of the outlets argon free-standing units offering dine-in and drive- with service, but McDonalds in nigh(prenominal) case has m whatsoever 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 friendship is continuing to progress market share around the world. In addition, McDonald has returned $5. 1 billion to shareholders through share repu rchases and dividends paid, and has provided a 27% return to investors for the year, ranking it troika among the companies comprising the Dow Jones Industrial Average (McDonald, 2011). 2.Describe the companys return or operations management. Operations management can be defined as the planning, scheduling, and control of the activities that transform inputs into finished goods and work (Sloan School of management, 2009). drudgery and operation managers oversee the work of people and machinery to convert inputs into finished goods and services. Boone and Kurtz (2011) argued that operation managers get a vast four majors working class, first they plan the overall production exhibit, next they regard the opera hat layout for the firm facilities, then they follow out the production plan, and finally they control the manufacturing surgery to introduce the highest workable quality( p . 365).The avocation paragraphs will have a feeling at how McDonald executes those four majo r operation management tasks. PRODUCT PLANNING turnout planning reckons by choosing what goods or services to offer to nodes. The main operation In McDonalds Restaurants is product planning. In coif to meet the needs of the customers, that are constantly changing, McDonald has to keep on adding new products to its menu. For instance, the change magnitude preference of con centerers towards healthy food make the restaurant add healthier food items to its menu. Similarly it has to add new products for diametrical seasons, for examples acrid coffee in pass and milkshakes in summer. LAYOUT DESIGNBoone and Kurtz (2011) believed that an efficient preparation layout can disregard material handling, flow cost, and improve product flow through facility layout (p. 366). In McDonalds Restaurant layout excogitation is a very important operation. A proper layout of the equipment in the kitchen is very inbred to ensure preparation of quality food in less time. It in any case desig ns its layout property in mind the health and pencil eraser issues. McDonald layoutis design in such a way that needs of supervision is minimised. McDonalds also sets its premises in proper bearing to handle any number of customers easily. The twist design is standard worldwide but it may be havesome difference in size or in outside(prenominal) according to the location.It enables them tosave time, satisfy their customers, comfortable environment for both employees and customers. McDonalds uses the same interior design as its used internationally. Itmay qualify according to the premises size (Gondal, 2008, p. 8). IMPLEMENTING THE business PLAN After planning the production bear on and determining the best layout. Organization starts implementing the production plan. According to Boone and Kurtz (2011), this activity involves selecting the best suppliers, and controlling inventor (p. 367). Selecting best suppliers When an organization has decided what input to purchase, it m ust demand the best sellers for it needs.Their choice of a vendor will be based on the quality, the price, the pay offy, and the services offered. The McDonalds supply arrange is a complex web of consider and indirect suppliers. It manages this complex system by workings with direct suppliers who share their get back and their vision for sustainable supply. McDonald holds them to clear standards for quality, safety, susceptibility and sustainability (McDonald, 2010). It expects them to extend those requirements to their suppliers. McDonald also partner with them to identify, recognise and address industry-wide sustainability challenges and achieve continuous improvement. Svoboda (2007) argued that, McDonald practically holds seminars and conference for suppliers to discuss their need (p. 3).Overall, McDonalds and its suppliers are collectively focused on terce responsibility areas ethical, environmental and economic. autocratic Inventory According to Boone and Kurtz (201 1) , production and operations managers responsibility for stocktaking control require them to balance the need to keep stocks on hand to meet the demand against the cost of carrying store ( p . 369 ). At McDonalds the history is managed on the basis of First-In-First-Out basis. This is because roughly of the inventory consists of perishable items. thitherfore delivery of inventory happens twice or more quantify a week depending on the business of the restaurant.Moreover inventory is stored in freezer with proper promotion so as to ensure freshness of the food items. full(a)ly this activities comes under inventory management of the organisation. According to Kennon (2007), between 1999 and 2000, McDonalds had an inventory turn say of 96. 1549, incredible for even a high-turn industry such as fast food. This core that every 3. 79 days, McDonalds goes through its entire inventory. By tying up as little capital as executable in inventory, McDonalds can use the silver on ha nd to open more stores, increase its advertising budget, or pervert back shares. It eases the s use up on specie flow considerably, allowing management much more flexibility in planning for the long term (McDonald vs. Wendys, para. ) Just in time system seek to eliminate anything that does non add value in operations activities by providing the right part at the right place at just the right time (Boone and Kurtz, 2011, p. 370). McDonalds is also uses JIT system in the sense that it doesnt begin to cook its medievalures until a customer has position a specific rank. CONTROLLING THE takings PROCESS The final task of production and operation management is controlling the production process to throw the highest possible quality. McDonalds put an emphasis on themaintenance of the product quality, the human resources used deep down the organization, its location and layout designs. They train their employees of all departments regarding their job, so they can handletheir custo mer and work as well which helps to maintain their status quotas (Gondal, 2008, p. 10).McDonalds is among the companies which are partially baffling in the production of goods and services, so a proper maintenance system within the organization strengthens the goodwill and reputation. In McDonalds restaurant , the operations manager develop and establishes the process of cooking food items so that food is prepared using that method which helps them to maintain the speed and the quality of the food. Moreover it also designs processes so that the health, safety and hygiene issues are taken into consideration. Also the managers keep on introducing latest equipments with the advancement of engine room so as to bring pace, nonesuch and quality in the product.Overall operations management is very important for any organisations it contributes to the strategy and therefore helps the organisation to gain competitive advantage. 3. Describe and evaluate the companys use of teams in product ion and operations management. A team is a group of people with complementary skills who are committed to a common purpose, approach, and set of realizeance finishing (Boone and Kurtz, 2011, p. 329). A good team is said to be one where the whole of the team is greater than the sum of its parts and this signifies that the team members are working in teamwork with to each one other. Many teams have worked together and the output has been lesser than teams made up of less intelligent minds.So while a team does become towards a common goal, how well it achieves this goal depends solely on how well the team members work in collaboration with each other. According to Goldman (2008), McDonalds owes is success to its team functionality rather than the efforts of one individual. McDonalds does non have very highly compound teamwork, but they would be unable to deliver their products and service without sufficient team virtuoso and cooperation (Observation of leaders, para . 5). Team m embers have one area that they focus on during their shift. If they set aside their post or are not productive, other line members will not be able to accomplish their jobs and the production line will suffer.For example, when a customer enters the restaurant places an order with the cashier, the later inputs the order into the computer and the information is displayed in the kitchen at the get up and grill stations. The grill doer prepares the meat and then places the burger on a bun. The sandwich shaping machine then assembles the sandwich according to the type of sandwich and any additional requests the customer has. If the sandwich maker leaves his post, another worker has to cover for him or the entire product delivery process shuts down. Without everyone working together and having sufficient penury to provide good and quick quality service, all members of the team fail.As a result of one person losing motivating or failing to adequately perform his duties, customers may complain and business can be lost. Even though most employees are trained to perform ternary tasks at various stations, they are not usually able to perform all of these tasks simultaneously. 4. Analyze and evaluate the companys 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 around issues caused by the crisis. Every major corporation faces external and internal challenges. External challenges go about by organizations can be economic, environmental, or natural.We will take a serve at the environmental challenges that McDonald has encountered and how it has been able to find solutions to those challenges. Svoboda (2007) argued that, in 1989 McDonald was facing environmental complains in the form of demonstrations, letters, and customers mailing their polystyrene clamshells back to the comp any. In order to take care of those protest McDonald stepped up its cycle effort by creating a joint task force with the Environmental Defense Fund (EDF) (p . 5 ). Developing a strong company-wide environmental policy, declaring that McDonald is committed to protecting the environment for afterlife generation, was one of the first result of the task force.McDonald has also been active in educating its customers about the companys environmental activities and positions. There are brochures available in restaurants making known customers about McDonald position on such as ozone depletion, the rain forest, and packaging. McDonald has realized that in order to achieve its waste decline goals, it must collaborate with its suppliers. In order to promote collaboration McDonald has developed an yearbook environmental conference intended to train suppliers and has included environmental issues in its yearbook supplier reviews and evaluations. According to Svoboda the following initiat ives were proposed by the task force and had since been followed by McDonald point of reference Reduction, Reuse, recycle, and composting.Section 40196 of the California Public Resources enactment defines source step-down as any action which causes a net reduction in the generation of solid waste. theme Reduction includes, but is not particular to, reducing the use of non-recyclable materials, replacing expendable materials and products with reusable materials and products, reducing packaging, reducing the keep down of yard wastes generated, establishing garbage rate structures with incentives to reduce the amount of wastes that generators produce, and increasing the efficiency of the use of opus, cardboard, glass, metal, tractile, and other materials ( subdivision of Resources cycle and Recovery, 2010 ) .Over the past twenty years , McDonald has made hearty progress in its source reduction efforts. Svoboda (2007) believed that, McDonalds average meal in the 1970s a Big Mac, fries and a shake required 46 grams of packaging. Today, it requires 25 grams, a 46 pct reduction. McDonalds has also reduced the heaviness of packaging in its sandwich wraps, hot cups, and napkins, removed corrugated dividers in some merchant marine cases, and switched to bulk containers wherever possible ( p . 4 ) . Re-use is using an tendency or material again, either for its victor purpose or for a interchangeable purpose, without significantly altering the physical form of the target or material (Department of Resources cycle and Recovery, 2010).McDonald reuse options include the reuse of plastic (rather than cardboard) disposables, shipping trays for bakery items, and plastic shipping pallets that last at least three times longer than wooden pallets (Svoboda, 2007, p. 5). recycle can be defined as using waste as material to manufacture a new product. Recycling involves altering the physical form of an object or material and making a new object from the altered ma terial. McDonalds tries to use recycled materials whenever possible . According to Svoboda (2007), in April 1990, McDonalds announced the McRecycle Program, a dedication to spend $100 million annually on the use of recycled materials, especially in the building and renovation of its restaurants. In 1991, it surpassed its goal, purchasing more than $200 million of recycled materials (p. 6).McDonalds continued to work with suppliers to develop packaging that was consistent with curbside recycling programs, to support the recycling of material that leaves the restaurant via takeout orders. Composting is the biological decomposition of organic materials such as leaves, grass clippings, brush, and food waste into a soil amendment. Almost 50 percent of McDonalds waste stream consists of paper packaging and food organics that could be composted. McDonalds is reviewing the compostability of its packaging and studying materials such as the coatings used on its paper-based packaging to de termine if they impair compostability. Where possible, it will replace materials that are not compostable with materials designed for compostability. ConclusionThis paper has discussed the use of team work in production and operation management, we started by describing a major global corporation ( McDonald) , next described Macdonalds production or operations management, then described and evaluate the MacDonalds use of teams in production and operations management, and finally we analyzed and evaluate the McDonalds 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. References Department of Resources, Recycling and Recovery. 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