Beruflich Dokumente
Kultur Dokumente
15-05-2012
Abstract
In the age of globalisation, effective management system is very important for any organisation to provide quality product or services to the users. Quality of products and services bring lots of benefit to an organisation, it makes easier for an organisation to achieve the organisational goals. The cornerstone of quality organisation is the concept of the customer-supplier working together for their mutual benefit. The objective of the quality system management is in defining the process, which will result in the production of quality products and services, rather than in detecting defective products or services after they have been produced.
Table of Contents
Table of Contents.....................................................................................................................2 Introduction..............................................................................................................................3 Company Profile of McDonalds Restaurant.............................................................................3 Task 1 The strategic objectives of operational management............................................................4 The role played by effective operation management.................................................................5 Strategic objectives of McDonalds...........................................................................................5 Successful operation objectives in meeting organisational objectives.......................................7 Task 2 Appropriate systems................................................................................................................7 Systems to ensure the quality of products and service...............................................................7 Use of Total Quality management (TQM) and ISO9000/EN29000..........................................9 Quality culture ..........................................................................................................................9 A comparison between the view of quality in the UK and Bangladesh...................................10 Task 3 Organisational Performance.................................................................................................10 Identification of problems and opportunities for quality improvement...................................10 The report on Performance improvement program in McDonalds.................................11 Performance improvement program.........................................................................................11 Purpose of performance improvement program.......................................................................11 Aim and Objectives of McDonalds.........................................................................................11 Recommendation for performance improvement.....................................................................12 Stakeholders of McDonalds and their Interests .....................................................................13 Suggestion for their implementation........................................................................................14
Introduction
In this assignment, I am going to discuss about the strategic objectives of operation management, design and monitor the appropriate systems to ensure the quality of product and services, and improve organisational performance of McDonalds Restaurant, which is the biggest fast food restaurant in the UK. Also the main focus of this report will be the discussion on the quality control system such as Quality circle, Benchmarking, Total Quality Management (TQM) and ISO9000/EN2900 in achieving the organisational aims and objectives. And role of management has been discussed to improve the performance of McDonalds Restaurant.
Design, process and control of organisations operations that convert its resources into desired goods and services, and implements its business strategy (Source: www.businessdictionary.com/definition/operations-management.html/ 17-04-2012)
To be able produce professional managers capable of fulfilling strategic roles within business and government enterprises the need for the practice of operations management cannot be 4
forgone. Operations management is very important in business operations since it forms the heart of the organization by controlling the system of operation. Operations management deals with the design, operation, and improvement of the systems that create and deliver a firms primary products and services. Like marketing and finance, o p e r a t i o n s m a n a g e m e n t i s a functional field of business with clear management responsibilities. Quality management is also a very important aspect of operations management in every organisation. Guinness Ghana is very critical about its products developed for the customer in the market place. Quality management is crucial to effective operations management, particularly continuous improvement to match the consumers taste and preference at all times. More recent advancements in quality, such as benchmarking and total quality management, outsourcing and reengineering have resulted in advancements to operations management in Guinness GhanaLimited. The company through its reengineering and benchmarking activities has always earned the leadership in the market. Benchmarking serves as a first class internal auditing process whichthe company uses to diagnose its weaknesses and identify ways of turning them into strength to increase its customer base in the market place.
Process: In this term, physical process or facility use to produce the desired product or services and includes the practice at work place. It includes the processing equipments, technology, process flows, lay out of the facility and job design Quality: The operations function is related to the quality of goods and services produced. Quality is an important operations and it requires for total organizational support. Quality decisions must ensure the quality is designed and built into the product in all stages of operations. Capacity: It is related in providing the right amount of products at the right place at the right time. Long-range capacity is determined by the size of the physical facilities built by the organisation and its suppliers or by outsourcing the product to a reliable supplier. In short capacity of an organisation can be developed by subcontracting, extra shifts, or rental of space. Inventory: It is related to what to order, how much to order, and when to order. Inventory control systems are used to manage materials from purchasing through raw materials, work in process, and finished goods inventories.
Johnson and schools (2002) define strategy as Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations. Bruce & Langdon (2000) relate strategy to military campaigns, describing an original definition of strategy as: The art of planning and directing military movements and the operations of war In terms of a business, their definition states A strategy maps out the future, setting out which products and services you will take to which markets - and how. (Source: Quality and System Management, RDI-2008, page-1.8)
There are three levels of strategies Corporate strategy: Corporate strategy concerns the overall purpose and scope of the business to meet stakeholder expectations. It is stated explicitly in a mission statement. It also concentrates on the firms ability to focus on particular businesses that maximize the long term profitability of the organization. The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
Read more: http://www.businessdictionary.com/definition/corporate-strategy.html#ixzz1uO2rlfaU
McDonalds corporate strategy is able to meet with stake holders expectation and maintain the long term profitability because they are producing delicious and quality full fast food for its customers and improving the facility for its stakeholders. McDonalds is the market leader in the fast food restaurant. Business strategy: Business unit strategy concentrates how a business competes successfully in a particular market. It concerns strategic decision about choice of products, meeting needs of the customers, gaining advantage over competitors, exploiting or creating new opportunities etc. the porter generic strategies is very popular in business level strategy. A business manager is responsible for this unit. McDonalds uses the cost leadership strategy in the organisational segment management. McDonalds provides cheaper fast foods with good quality. It already achieved golden arch logo because of good quality food. The long term slogan of MacDonalds is im lovin it . Operational strategy: Operational strategy focus on how each part of the business is organised to deliver the corporate and business unit level strategic direction. It concerns issues of resources, processes, people etc. Basically the Ansoff matrix, BCG matrix and McKinsey matrix are used as a strategy in order to compete with the competitors. 6
McDonalds has wide range of fast food with different prices. It provides saviour menu for young generation, happy meal for children with lower price. This kind of strategies give benefit the McDonalds to compete with competitors and make barrier to enter local restaurant in the fast food business. Strategic Objectives of McDonalds McDonald's main aims are to serve good food in a friendly and fun environment, to be a socially responsible company and provide good returns to our shareholders. The company aims to provide its customers with food of a high standard, quick service and value for money. They also wish to be more eco friendly and to serve healthier food
System is the set of detailed methods, procedures and routines established or formulated to carry out specific activity, perform a duty or solve a problem. (Source: www.businessdictionary.com/definition/system.html-10/04/20102) System is a combination of some parts or units which work together for processing a particular task.
Kaizen is Japanese for improvement, or change for the better refers to practice which focus on continuous improvement of processes in manufacturing, engineering and business management. It has been applied in banking, government and any other industries. When this method use in an organisation, kaizen refers to activities that continually improve all functions, and involves all employees from the top to bottom level. Kaizen was first used in Japan after Second World War, influenced in part by American business and quality management teachers who visited the country. Toyota production system is known as kaizen.
Teamwork Personal discipline Improved morale Quality circles Suggestions for improvement
As part of the McDonalds continuous improvement philosophy, it has introduced a sophisticated system of monitoring performance of its meat suppliers. Based on a number of Key Performance Indicators (KSI) the system benchmarks quality performance both against other suppliers and past performance. The system operates in real-time, with all suppliers linked via an Internet platform known as Osi-link. It provides access to data showing the performance of each delivery, including: Meat intake analysis Temperature on arrival Chemical Lean Content Microbiological Results Physical assessment
http://www.foodchaincentre.com/FoodChainFiles/red%20meat/11%20Case%20Studies%20%20McDonalds%20Restaurants.pdf Cooper, Mary Pat (2008). Kaizen Sketchbook: The Comprehensive Illustrated Field Guide to Kaizen. Moffitt Associates. ISBN 978-0-615-19011-2.
Use of Total Quality management (TQM) and ISO9000/EN29000 to monitor quality at satisfactory level
Total Quality management (TQM) It is the philosophy of management. Total quality management includes three basic constant: quality, customer satisfaction and continuous process improvement. Quality of products is achieved by determining what customers want and exceeding their requirements. There are some steps to achieve 9
result from TQM. TQM organisations have process that continuously collect, analyse and act on customer information. Developing an intimate understanding of customer needs allows TMQ organisation to predict future customer behaviour. It includes a planning process which is the glue that holds all TQM ativities.TQM organisations have process management to develop cost control processes that are stable and capable of meeting customer expectations. Process improvement also part of TQM which help organisation for continuous improvement. The final step of the TQM is total participation, which integrate all steps to provide the result and implement TQM in an organisation. TQM also helps an organisation to make sure the employees are properly trained, capable and actively participate in achieving organisational goal. Management and employee work together to create an empowered environment where people are valued. quality is the totality features and characteristics of a product or service that bear on its ability to satisfy stated needs. Quality services in mcdonalds The employees: are at work ontime, neatly dressed, and clean. Must make sure customers receive safe food. Must follow standard operational procedures, add relay on team work to get the job done. The Foods: Meat and fries have to be cooked properly. The restaurant: Have to be tidy and spotlessly clean. Food delivers fast, accurate and friendly service.
ISO9000/EN29000 Standards: Serving as a basis of weight, measure, value, comparison, or judgment of products or services known as standard. International organization for standards promotes the development of international standards.ISO9000 addresses specially the quality standards that originated from BS 5750.It was initially developed to be advisory and for use in two- party contractual situations. In 1987, CEN, the European Standards Body adopted ISO9000 as EN29000. It became increasingly recognized as a symbol of quality. Accreditation essentially requires an organization to demonstrate its capability to meet customers requirements. To monitor the quality to a satisfactory level, ISO9000 can be used by TESCO through the below ways: Ensuring the management commitment and ultimate responsibility for quality of product and services, McDonalds may satisfy its customers. Maintaining quality systems such as benchmarking and following continuous improvement Reviewing contact Always controlling design, document and process. Product identification, inspection, testing and measurements Following statistical methods for measurements of process capability and non-conformance. 10
Taking action to control of non-conforming products. Maintaining Quality audits, reporting and feedbacks Also proper Education and training to maintain quality that fulfils customers expectation.
Quality culture
The concept of quality culture is introduced and developed for the better understanding of the way quality manifests itself in companies. Quality culture includes quality improvement mature as well as individual and collective commitment to quality maintenance and improvement. Example for Japan uses continuous quality improvement system. Taylor (1871-1958), culture or civilization, taken in its wide ethnographic sense, is that complex whole knowledge belief, art, moral, law, custom, and habits acquired by man as a member of society. In a company where all employees are keenly aware of the important of quality and continuous improvement is known as quality culture. Company cultures are usually related to the national or regional culture of the location of the company, but they vary massively beyond this. There is not a single culture which is best for all times, places and people. UK manufacturing firms which merely try to imitate a Japanese manufacturing culture within their firm will not succeed, but some positive aspects of the culture can be obtained. The culture in some UK manufacturing companies dates back to the times before about 1970 when demand generally outstripped supply, and companies could sell whatever they produced. Whilst the culture in these companies is suited to producing large quantities of goods, these cultures do not produce what the modern market-place requires: value, quality and an increasing flexibility to customers' needs. Rolls-Royce has traditionally had a very risk-averse culture: a fitting culture for a manufacturer of safety-critical products. However, Rolls-Royce are now trying to become more commercially orientated; they need to be more ready to take risks in business, though obviously not with the reliability of their products.
frame work. BSTI is the only national standard body which prescribe and test the product and maintain the quality of products in Bangladesh.
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staffs, which can be improved by employee development program and using latest technology in the restaurant.
Incorporate planning throughout the facility Provide systematic structure for the facility appropriate individuals, departments and professions. Utilise organisational data on annual basis to drive decision making and strategically focus resources. Involve the all member of staffs in performance improvement
Aim and Objectives of McDonalds To serve good food in a friendly and for environment. To be socially responsible company. To provide good returns to its shareholders. To provide its customers with food of a high standard, quick service and value for money.
Mission and Vision statement of McDonalds Mission is a formal written statement which contains purpose of an organisation. Be the best employer for our people in each community around the world. Deliver operational excellence to our customers in each of our restaurant Achieve profitable growth by expanding the brand and leveraging the strength of McDonalds system through innovation and technology. Vision statement is a formal written statement, which includes the future ideal image of the organisation. Most of vision statement is projected for a period of 5 to 10 years. To be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every restaurant smile. 13
Recommendation for performance Improvement Improve Performance by Risk Assessment, Analysing and Evaluation
Risk assessment Risk management is very important and central part of any organisations strategic management. It is the process to identify any future risk involving for achieving the organisational goals. The main focus of the risk management is the identification and treatment of risks. Its objective is to achieve maximum sustainable value to all sections of the organisation. Risk analysis Risk identification To identify the risk, it is necessary to gain the closed knowledge of the organisation, the market in which it operates, legal, political and cultural environment in which it exist. Also objectives, treats and opportunity should be known
Risk description In this process indentified risks are displayed in a structure format like as a table. The contents of this table are name, scope, nature, qualification of risk, stakeholders, risk tolerance, risk treatment, potential action for improvement and strategy and policy development. Risk estimation In terms of the profitability of occurrence and the possible consequence; Risk estimation should be quantities and qualitative. Consequences should be both in term of the opportunity and threat. These may be high, low or medium.
Risk evaluation After completing the risk analysis, it is most important to compare the estimated risk against risk criteria which organisation has established. The risk criteria include costs and benefit, legal requirements, socio-economic and environmental factors, concern of stakeholders etc.
Business process reengineering was first introduced by Michael hammer. He was a computer science professor at Massachusetts Institute of Technology. The concept of BPR has been clear around since 1990 by Michael Hammer and James. In the early, some organisations are following successful solution as BPR. An example: Wal-Mart decreases restocking time from six weeks to thirty hours. Business Process Re-engineering as a process of redesign of business to achieve dramatic improvements in terms of quality, costs, service and speed. BPR is not applicable for those companies who want 10% improvement; it is for the ones that need ten folds increase. According to Hammer and Champly it has four key words, which are fundamental, radical, dramatic, and the last but most important is process. Process includes some steps of produce some product or service. It also includes all activities that deliver particular result to customers.
PESTEL This method is very important to increase the organisational performance. A PESTEL analysis in McDonalds to be able to increase the business performance with identifying and evaluating the Political, Economic, Social, Technological, Environmental and Legal factors.
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Customers: customers are the persons, where to sell the product. They are the most important for every organisation, without customers McDonalds cannot sale any food finally business go down. Customers have interest to the McDonalds restaurant because they are expecting quality services and fast food with competitive price. Employees: person who work for the organisation. They are internally connected with organisation. Employees have interest in the organisation such as salaries, bonus, and holyday payment and so on. Supplier: an organisation or individuals who provide the raw material or any other things to the McDonalds restaurant. McDonalds UK has some suppliers they are Heinz, Cadbury, Tropicana UK Ltd, Coca Cola and so on. Government: rules and regulation is very important for every business. It can be favour and disfavour to the business activities. Pressure group: McDonalds is installing their new technology in the existing restaurant to improve the restaurant performance. Before installing those kind of technologies McDonalds should consider that whether these technologies are environmentally friendly or not.
Recommendation
McDonalds is a reputed organisation in the fast food world, which already achieved golden arch logo. The overall reputation and quality foods of McDonalds depend on the operation management. I would like to recommend the following activity for McDonalds to keep its quality performance. Crew development program Management development program Continuous monitoring Daily stock counting 16
Immediately wastage of foods counting Regular meetings with employees Communication with supplier Latest technology in the restaurant Ongoing training process Emphasis on the hospitality Recruit technical person in restaurant to repair machine and other components immediately.
Conclusion
Quality and system management refers the effective operation management, level of strategic objectives, quality systems and performance of an organisation. The effective operation management is very important for an organisation to produce or provide quality products and services. All level of management is directly or indirectly connected with operation management within an organisation. The appropriate system also plays a vital role in an organisation to ensure the quality products and services. The system helps an organisation to meet with particular standard. Performance of an organisation depends on the effective operation management and system to ensure quality.
References
Books [1] Strategic operations management, 2nd Edition, Steve Brown, Richard Lamming, John Bessant and Peter Jones. [2] Strategic Management by R. Edward Freeman, 2nd Ed, 1990 [3] Business Process Reengineering, R. Radhakrishnan, S. Baasubramanian [4] Applied strategic planning: how to develop a plan that really works/ Leonard D. Goodstein, Timothy M. Nolan, J. William Pfeiffer [5] Williams, R (1998) Performance Management. London: International Thomson Business Press (Essential Business Psychology Series) [6] Quality and System Management, Level-7, RDI Workbook. [7] Pyzdek, T, "Quality Engineering Handbook", 2003, ISBN 0-8247-4614 [8] Feldman, S. (2005, February). Quality assurance: much more than testing [9] Small business management, An entrepreneurial emphasis, 13 Edition, Justin G. Longenecker, Carlose W. Moore, J. William Petty, Leslie E. Palich
[2] www.marketingteacher.com/ 10/12/2010 [3] http://www.wisegeek.com/what-is-quality-control.htm/3/11/2010 [4] www.dti.gov.uk/quality/qms/8/12/2010 [5] http://www.businessballs.com/dtiresources/quality_management_systems_QMS.pdf/13/12/2010 [6] http://www.docstoc.com/docs/21397824/McDonalds-HRMNEW1/11/12/2010 [7] http://www.123helpme.com/view.asp?id=150350/11/12/2010 [8]http://www.voluntaryworks.org.uk/cvsmidandnorthbeds/documents/WhatQualityAssuranceSyste mIsBestForOurGroup.pdf/09/11/2010 [9] www.businessdictionary.com/definition/system.html-10/12/2010 [10] www.netmba.com/14/12/2010
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