Using Teams in Production and Operations Management: McDonalds



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Abstract

The topic under discussion is use of teams in production and operations management. A global organization was chosen to analyze the use of teams in their production and operations management processes. In this paper, McDonald's has been used as an organization for studying its production and operations management processes. It has been assumed that using teams proves beneficial for production and operations management. It further goes hand in hand with the organization's strategy.

Table of Contents

Abstract2

Introduction3

Discussion4

Market Share and Financials4

Global Presence5

Production and Operations Management5

Product Planning5

Capacity Planning6

Location Planning6

Process Planning6

Layout Design7

Job Design7

Supply Chain Management8

Inventory Management8

Quality Management8

Economic, Natural, or Environmental Crisis9

Conclusion9

References10

Using Teams in Production and Operations Management: McDonalds

Introduction

“Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want” (MITSSM, 2011, pp. 01).

It is the duty and responsibility of operations management to make an effective use of an organization's resources in order to produce final products and services and to fulfill the customer needs in an effective manner in terms of time and cost.

This paper highlights the relation between production and operations management by using teams. Use of teams in an efficient and effective manner helps in improve the processes of operations management. This, in return, helps an organization in achieving its goals and objectives. The global organization chosen for this paper is McDonald's Corporation.

Discussion

Identification

One of the world's major fast food restaurants chain is Macdonald's Corporation. It started its business in 1940, by opening a restaurant in his siblings name Mac and Dick. That restaurant was opened in San Bernardino, California. They introduced “Speedee Service System” in 1948, which helped in establishing principles that directly links with modern fast food restaurant. Currently, McDonald's is serving almost fifty-four million consumers every day in around 120 countries. (Thomas, 2004)

Market Share and Financials

McDonald's is doing fairly well according to the financial highlights of this year. Surprisingly, they have recovered their same store sales growth rate; reported in its third quarter earnings. “The market had been anticipating same store sales growth of approximately 3.8% in the third quarter ending 30 September. Instead, McDonald's surprised analysts when it reported growth of 6.0% worldwide. Especially encouraging was the 5.3% increase in US same store sales growth, demonstrating an improving trend throughout the year” (MC, 2011, pp. 01). The world's largest burger chain is rising in their gain of market share with changes in their menu.

Global Presence

There are number of operations that link an organization like McDonald's to its overall business strategy. The key operations decisions of McDonald's can be accessed through its relationship strategy. Its universal comparable sales amplified by 5.6%, in US up by 4.5%, Europe up by 5.9% and Middle East, Africa, and Asia up by 5.2%.

Production and Operations Management

Product Planning

In McDonald's Restaurants, product planning is a key operation. It has to keep on adding new products to its menu so as ...