Operations Management

Operations Management

Operations Management

Introduction

Operations management is responsible for the production of goods and services of the organization, from being responsible for decision-making or in the operations function and processing systems that are used. Operations managers make decisions regarding the operations its relationship to other functions. As discussed earlier, the provision of the operation management range from the strategic, to the tactical, as well as, the operations stages or levels.

With respect to the operations management, the domain of the strategic arena, essentially takes into account the determination of the desired location, as well as, the size of the manufacturing plants where the processing of the goods will take place. Moreover, the determination of the respective telecommunication services and the formulation of the technology required or employed in the supply chains, are equally significant and critical in the operations management (Hill, 2003, p20).

As far as the domain of the tactical aspect is concerned, this arena pays utmost heed to the suitable layout of the plant and its structure, the appropriate and correct methods of project management, and most importantly the correct and timely decision of the selection of the equipment and machinery and its timely replacement from the plant. Moreover, the domain of operational matters is related to the right policies and plans of the equipment maintenance, the production scheduling and control, the effective handling or management of materials and its traffic, the inspection and quality control, and inventory management.

As discussed earlier, operation management itself is a rather broad and extensive domain; therefore, it encompasses numerous other sub domains or sections within itself, which look after distinct, yet critical operations and processes. Amongst those numerous sub domains, regarding operations management is the inventory control. This, in turn, helps the strategy of the organization. The global organization chosen for this paper is McDonald's Corporation.

Discussion

Background

McDonald's Corporation is the world's largest chain of fast-food restaurants. 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.

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 world's largest burger chain is rising in their gain of market share with changes in their menu. Due to their efforts to controls, the corporation has managed to earn higher margins.

The burger franchise has reported an increase of 19% in consolidated operating income, which highlights that it is managing its operations well. In addition to this, Board of Directors declared a periodical cash dividend of $0.61 per share of common stock. There are number of operations that link an organization like McDonald's to its overall business strategy. Their global sales are increasing with a good ...