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Operation management can be defined as a business operation related to the production of goods and services. It focuses mainly on managing products often the activities on the product manufacturing, product production& development, manufacturing, distribution and maintenance. It has the responsibility to make sure that all the processes are running effectively. Converting an input material into output is also termed as operation management. The operation management is the method useful for obtaining the whole product efficiency& effectiveness in the organisation. Examples for operation management are retail management, wholesale business, manufacturing etc.
Identifying roles and importance of operations management
From the definition above, we can clearly understand that operation management is one of the biggest back -bone to the organisation services and products. In order to be successful in this business operation management, it is very important for us to understand the roles of operations management.
The roles can be defined in three ways
All the above three roles are to support the strategy of an organisation.
Implementation- plays the important role in the operation department. All the stocks - the new ones, taking off the old stock and replacing everything should be implemented in a proper way to make the organisation effective (if this belongs to retail unit) , in general there are many implementations are done in the operation side according to the company strategy. The operation will be dependable. It will explain and understand the strategy of operation thereby this implementation will guide the staff easily for a perfect operation. The Operation implementation will also explain practical strategy method which will give ease of information for the transformation.
Support - This plays a vital role in the operation management. If there is no support then it is very difficult to organise a proper operation management. The supporting operation role should understand the strategy of the organisation and should be able to act accordingly to the decisions and also should be appropriate to the situations.
Driving - this factor is also an important role needed in the operation management. It should activate the strategy long term goals by driving it to innovative ideas in terms of operation management. Strategy of foundation should also be done by the driving factor. Thus the whole operation would be benefitted followed by the organisation.
Without these above factors, the operation management would not properly or would be organised to achieve the success in this competitive field. Thus these are the three main roles needed for the operation management.
McDonalds - Name of my chosen organisation
Mc Donald's - The reason for choosing this company for my coursework is because of the company effective operation management. I heard from my friends' view that Mc Donald's is very good place to have food and very attractive on their deals as well as for cleanliness. This made me to investigate further to find out their strategic objectives and made me to analyse further.
Strategic objectives of Mc Donald's company:
Their main objective is to create a user-friendly and fun loving environment and serve food to the customers as their wish.
Earn good profit and also make the shareholders happy
Provide fast service and good quality food.
Excellent customer service
Mc Donald's has used appropriate swot analysis method tool to analyse the strategic objective
It has created a big brand name and has got stores in around 120 countries. It is said to be one of the biggest sales store in Food Company with huge sales and profit. Also, Mc Donald's is well versed in fries and burgers in around 31500 restaurants all over the world.
Innovative techniques and implementation keeps the mc Donald's in business
Financial resources and investment are high and also more franchise given all over the network
Management team is very strong and also they possessing multi-talented staff.
The core food products (fries, cheesy bites etc) are not in line with much healthier categories according to the researchers' view.
More concentration on seasonal market than the customers' health.
Franchise quality is a bigger question mark across the network. All franchise is not able to maintain the exact quality of the McDonalds Company.
Mc Donald's has joined many supermarkets as a joint venture thereby giving opportunity and promoting the organisation.
With respect to healthier life style, mc Donald's has changed a lot and has appreciated the social change by its new introduction of snacks.
They help their franchisers to select better location for the store.
They use database technique marketing which allows them to find out the exact network for the people.
They encourage people to get into coffee shops thereby promoting the customer attraction style.
The internet system Wi-Fi has been a major attraction segment for the customers.
Doctors are encouraging a different food life style with normal meal and fruits a day.
Price increase products especially on credit crunch times are a serious threat.
Nutrition attention to the people and their healthy life styles.
Like M & S, Subway the supermarkets are introducing new offers and healthier life style products in the high streets thereby giving the pressure to the other retailers.
The pressure given by environmental groups.
Sales might be affected to a greater extent due to downfall of the current economy.
Performance operations of Mc Donald's:
There has always been an improvement of technologies or methodologies w. r. t operational performance and they are still to come in the future. The reason being the fact that exactly the organisation does not know where to start and implement the technologies or the methodologies for the development of performance management. It is very important for an organisation to find out the important factor needed in the improvement of the performance objectives of the organisation.
The mc Donald's organisation follows the famous 5 performance operation objectives model called the TQM (Total quality management)
TQM is sub-divided as
I am going to analyse the success rate of mc Donald's and finding the causes due to this implementation of performance objectives. Based on the research with respect to mc-Donald Company, I am explaining the fact of performance objectives of the respective organisation.
Speed - how much speed is the service to customers?
I have seen in the outlet in mc-Donald's drive thru 90 seconds. Practically thinking it is a question mark whether a service could be done in 90 seconds. Many customers are also given feedback that they had to wait for at least few minutes to get their meal in the drive-thru. Mc Donald's follow the drive thru management where first come first basis are served first. It becomes a bit odd for mc Donald's in a very busy time that it has to serve the second customer until the first customer is done. When we move to main mc-Donald's it is a very fast and quick service. More tills have been put in order to speed up the service and customer service has improved a lot since 2005.
Cost - Is mc Donald's too costly?
Mc Donald's foods are not costly. Indeed, it is voted to supply food (meat) in a cheap way. Mc Donald's had made offers like meal and deal offer with a drink in a cheap price. Also, compared to other food retailer's mc Donald offered food in less price. Many customers also had given feedback that the cost is more effective in mc Donald's.
Quality is one of the important objectives when it comes to food retailers. Mc Donald's is keeping the supply chain management in mind for quality has created a no of suppliers. The supplier maintain long term relationship and they make sure that proper high quality food have been supplied to Mc Donald's . It has also created some safety programmes on quality of food and quality assurance programmes with their suppliers. Thus in quality way, mc Donald's is making every step to make the organisation a high- quality food providing store.
How far mc Donald's can make their process trust worthy and reliable? The company has already took some many initiatives by introducing several customer service strategy to serve more quickly the customers and also it would be recommendable if they can go for dual line method where the customers need not wait for a longer time in queue . This process mc Donald's are trying to implement. The management team has already co-operated with the operation management team and took some different initiatives to avoid long hours waiting for customers at mc-Donald.
Flexibility is a very important objective. It is very important to know that how much flexible McDonald's is with their customers. Customer had given different views on customers service, food etc. McDonald's has taken all this into important factors and they have arranged meeting with the management. As a result they have put multi-trained staff in the store, along with expanding the tills to avoid the queue as well. They are more flexible with the customer feedback and they appreciate it.
Thus these are the performance objectives of this organisation and this is how they follow it.
Different resources should be implemented is required in a proper business process. In this sector, food resources are the main functions.
Infrastructure resource is very important for each and every store and for the business process. It only attracts the customers to get into the store. Hence this plays a vital role in the business process.
Financial resources - the company or the store should have proper stake holders and financial strong so that they can bring up new projects and offers thereby increasing the reputation of the company
Marketing resources- In food industry, the marketing strategy should sell the food items with best quality and quantity. The menus should be put in a brief way so that customers aged 12 to adults should be able to choose their own menu in style. Hence, the marketing resources are a strong tool for the development of business process.
Human resources - for every organisation human resources plays a vital role. Man power is a strong resource for the development of services. Customer service should be the vital role for the company. Every customer should be treated with equal respect irrespective of sex, religion, caste and creed. This is the way,the company should think and implement certain strategies for the development of products and services.
b) Quality Audit systems:
The quality and audit system is a must process in any organisation. The quality and audit system can be defined as a process where the audit team perform or examines the quality of the system both by internal and external auditor. It is defined as one of the key element in the organisation. It is performed by different time intervals. Quality audit system is one of the important quality management system IS0 9001. The auditing system helps to find out how process has been implemented successfully, how steps are taken to avoid or eliminate problems in the organisation, to assess the objective. The system also makes the auditor to find out the different target level achieved by the organisation. It is a powerful technique for monitoring the performance of the organisation. Many countries have been adopted quality audit system in higher education. The quality audit system is used for safety purposes. Quality audit management can be used by various software and tools for performing audit check.
There are many audit systems that can be implemented in the organisation. The key feature is being should be an ISO 9001 standard system. Basically, the audit team should create an audit plan for the organisation - audit task plan. The qualified auditor should study the organisational needs and then decide the plan. There are certain important plans an auditor needs to keep in mind before taking the audit system.
The no of skilled staff available for the audit
The risk that may be involved in the audit
The financial resources needed for the audit to be taken.
Details of audit plan should be in detail
The objective and for what purpose
Method to be employed in the audit process
The task of audit should be employed in the organisation
The selection process and their calculation.
The completion date, identification of resources needed in order to full fill the audit system.
The task plan should be checked properly. If any changes need to be done, it should be modified and should be given to the higher authorities for approval.
Thus these are the auditing techniques and plans to be kept in mind and the auditor should implement in the organisation.
Culture - there are different types of culture available now in the corporate sector. Culture is nothing but the attitude, behaviour of employees, team and how they do things.
Definition of quality culture - It is defined as the attitude, behaviour, commitment and awareness with respect to quality.
Quality culture - (Enemy Points)
We can only do this
My budget is over
No time to do it
No money resources
No understanding of customers
It is not my job
Not a big problem
Not my fault
Quality culture - (friend)
Proper measured is what managed
Process is important
Time saving can be done by training
Quality is important than time
Success key is the continuous improvement of process
In the quality culture customer is very important factor and the quality is the most important aspect for everyone. By all this implementation, the customer excited is generated and thereby attracting the organisation to develop.
Thus to implement the quality culture there are few points to be remembered and implemented in an organisation - they are as follows
By involving a different quality culture the company should be able to solve any problems which are unidentified. This solving spirit should be always there with the company.
Exciting the customers by giving them surprises - like promotional offers and so on
Satisfaction is important for every organisation but also the organisation should also focus on the customer goal. What they need in quality? What are their expectations? The organisations should be able to find out these answers and work on the goal of customers automatically once the goal is achieved customer satisfaction is achieved.
Implementing a stable organisation is a big achievement of implementing the quality culture in an organisation. A stable organisation will always deliver the stable quality product to the organisation.
The focus on process should be there in an organisation. It is also a key to the implementation of quality culture.
Thus by involving this culture proper monitoring and development can be achieved.
Monitoring the system and work activities of Mc Donald's
Mc Donald's has got a wide variety of system and work activities all over the world. They have got a strong team with dedicated employees. The team effort plays a vital role with McDonalds as it is one of the fast food retailer companies in the world. The business model of McDonalds is associated with franchise all over the network, product brand name and consistency of the quality of food. They target is to maintain firm customers understand their perception and their expectations.
They mainly concentrate on improving different factors according to their 7p principle of marketing
They are as follows
These factors that they consider are very importantly and work accordingly. They also depend mainly on international growth.
Problems for improvement
They can use a double dual line strategy where they can eradicate the queue but due to management issues they are not able to implement it.
Multi language staff recruitment can be a big relief for all the customers but Mc Donalds is still thinking about it to implement.
Many people complain that it takes a lot of time to get their food - thereby customer service is lagging somewhere which the management has to have a close look at it and solve it.
Competitive companies like Sub way, Pizzas are big problems to mc Donald's when they introduce many promotional offers on the high street shops.
90 sec drive thru concept is not really working as the second customer has to wait until the first customers have been served. Busy periods it doesn't work as they claim to be.
Mc Donald's has got different opportunities such as
International contacts - franchise network all over the world
Strong brand name - which will help McDonalds to establish more in the future.
Strong techniques and tools like swot analysis are used in order to attain the strategic objective.
Customer service skills - Strong perception with customers and their interest to excite the customers is a big opportunity for mc Donald's to excel more.
Committed employees and quick to learn attitude is a bigger bonus for McDonalds.
To improve the objective of the organisation goal the McDonalds should implement the different tools and techniques which will give a clear idea about company, products, services and the stake holders. Looking into the current scenario, the share holders expect good returns as well they expect a good brand name, good product from the organisation.
McDonalds can analyse different prospective using different tools, systems and management and can implement different methods to balance the situation so that the stake holders, the company service, products and the customer's expectations are balanced and made happy. The audit reports of the company, the business process model, customer's feedback and training oriented programmes for the employees on customer service management, franchise recruitment training based on skills should be done in order to improve and balance the situation of the organisation.
Evaluate the wider implications of proposed changes within the organisation ?
The proposed changes are done only to achieve the goal of the organisation. The involvement of new recommendation might be not accepted with the organisation but it should get involved in this as a matter of changes needed to succeed. They should analyse them with a proper team and then implement the changes. Logically, there are many implications and it can be done by different process models and tools& techniques. As an organisation, the recommendation should be evaluated in different techniques ways and also by finding the necessity of this proposed implication. The IT department, Human resources, Management and the stake holders should give proper support to accept the wider implication of changes within the organisation.
The implementation with respect to the recommendation should be done as follows
The organisation should conduct internal and external meetings within the organisation and get a clear report on all bases of the companies and then decide upon the changes to be taken
Multi-language staffs should be given training and appointed in a very busy place of McDonalds.
To avoid congestion, dual-line policy should be adopted so that the next customer need not wait for their food until the first person is served. This will dramatically reduce the queue in the busy hours.
Proper tools and techniques should be evaluated in regular intervals and changes in management should be made in focus to customer feedback and customer expectation. The whole goal of the organisation is focussed on customers' happiness.
The customer satisfaction programme survey should be conducted and a small survey about product should be taken every 2 months so as to understand where McDonalds stand in front of the busy crowd in the world.
The stake holders meeting should be conducted once in three months and the company management should explain them about their changes if any made in the plan or any new policies or plans to be updated in the future. This will give more confidence to the stake holders and more people will come to join the fast-growing food retailer McDonalds.
It is very important that McDonalds are more flexible with customers and their needs and requirements are fulfilled.
Thus these types of implementation plan recommendation can be given for the proposed changes in the organisation.
It was a great experience on researching about food retailer organisation. It gave me a lot of overall idea about the organisation principles, their way of processing and many more. Starting from operation management I have learnt the strategic objective of the organisation, its operation and the operation objectives. Performance objectives were one of the very important tasks for me as it decided mainly due to price, flexibility, quality and dependability. The next research was to analyse the tools, resources for the improvement of products and services. Swot analysis method was a good analysis for my organisation followed by auditing system. I have investigated both about external and internal audit of the system and recommendations were given in order to improve the process. Study about quality culture in organisation was a different experience. The last task was about how to improve the organisational performance by monitoring activities and also the impact of stake holders and the company organisational goals was compared and recommendation was given for the improvement of the organisation. Implementation plan for the proposed changes is also given for the organisation and a overall improvement plan is discussed. Thus the whole quality and system management of McDonalds'- my chosen organisation is discussed with general strategy process and models also. I hope in future McDonalds will implement new plans in their process and will give excellent success to the organisations and a great surprise to the customers.