McDonalds Approach to Process Design and Product Development - Case Study Example

McDonalds Student’s name Code & Course Professor’s name University City Date Contents 1.0 Background 3 2.0 McDonald’s Lean Production 4 3.0 Elimination of Waste 4 3.1 Overproduction 4 3.2 Waiting time 5 3.3 Motion 5 3.4 Defectives 6 4.0 Team Management 6 5.0 Pursue Perfection 6 6.0 Identification of value Stream 7 7.0 Customer Value 7 8.0 Conclusion 8 Reference List 9 McDonalds 1.0 Background McDonalds has dominated the food industry. Given its history, market phenomena and performance, the restaurant chain has sustained effective management performance throughout its practice. What draws McDonald’s attention is its characterization of dispensing service and products typified by the application of Taylorist principles of scientific management. It has furthered the organization's industrial assembly line, attuned to Fordist concepts (Taylor, 2009). In both phenomena, the core orientation rests on the simplifying and standardizing the maximum procedures of McDonald’s end product. All its procedures are based on speed, repeatability and objectivity. Evidently, uncertainty and errors are avoided as much as possible. The process dictating the company’s success are essentially linear in nature and parallel the algorithms of step by step management rules (Moeller, 2010). In essence, when a service or product attains a point where it is defined as an algorithm, it is viewed as definitive. Accordingly, it is viewed as a divergence in technique and procedures that offer reproductive results, predictability that can be simplified into statistics and numbers. Evidently, quantification and measurement parallels a company’s reductionisms and predictability. The strategic management process seeks to satisfy the important building blocks to attain competitive advantage. It consolidates four major steps namely; analysis, formulation, implementation and evaluation (Wei, 2009). As such, McDonald effectively employs strategic management in its evaluation process. These necessitates for a careful consideration of the firm’s external and internal opportunities. Hence, McDonald effectively uses SWOT analysis in assessing a customer’s preference. Such analysis offers an insight into the customer’s preference for new products. 2.0 McDonald’s Lean Production Increased competition and the consumers demand on value and quality in the fast food industry has compelled McDonald to implement effective process designs sustainably. Given the amplified recession, the organization has increased its mutual need to reduce the cost through adopting a ‘lean’ strategy (Ridpath, 2008). Moreover, principles of lean production necessitates for an inclusion in teamwork, efficient use of resources, communication and continuous improvement (Seddon, 2009). As suggested by Taylor (2009), McDonalds has increasingly utilized this approach with respect to key factors of lean production. 3.0 Elimination of Waste At the focus of lean philosophy, otherwise known as in-time, is a strategy aimed at meeting customer’s demand instantaneously, with perfection and waste reduction (Seddon, 2009). Sawyer (2012) defines waste as any activity that does not contribute to the overall operations and lacks value addition on all operational aspects. In striving to achieve lean business, McDonald’s effectively eliminates time wasting, overproduction, inventory, motion, process, transport and defectives. 3.1 Overproduction Overproduction occurs in the case when the production occur ahead of time resulting to high inventory and lengthier storage periods (Womack & Jones, 2003). Historically the restaurants could prepare its food products, such as sandwiches, in different batches ahead of time and store them in warming bins. Hence, it ensured a reliable and quick service which furthered in earning them a poor reputation for waste and quality. As a result of diminished market share, a new system was introduced. This system necessitated a limited stock of patties, ingredients, sides and salad which are combined into finished products after a subsequent order is placed. As such, a three-minute preparation time is attained which facilitates a quick response given the unexpected change in demand. Eventually, risk in production is considerably reduced (Suárez-Barraza, 2012). 3.2 Waiting time Present technologies have facilitated the “made to order” that enables the reduction of waiting time for customers and production. Essentially, lean processes strive at establishing a continuous flow through reducing waiting time in the restaurant’s internal operations, production management and supply management (Belfrage and Hedberg, 2006). In principle, the organization improves on each design; product and order specification hence reducing the waiting time (Suárez-Barraza, 2012). McDonalds created a multi-skilled workforce which can effectively assemble different parts of orders concurrently. Its facilitation was realized through standardized routines for preparing all food products. Effective product development consolidated the use of advanced technology such as grills that cooked hamburgers in half the time. Tentatively, new equipment for bacon slicing, effective moisture and temperature controlled cabinets and high tech fryers. 3.3 Motion Unwarranted movements in an organization affect production ergonomics which result to lower quality and productivity (Tepsich, 2010). McDonalds has championed in the fast food kitchen layout which conforms to a speedy system. From V-shaped aluminum scoops to affiliated operations, the systems unite all the operations in such a manner where workers are assigned specific tasks. The double-drive through services significantly increased the delivery of the food and attract more customers. 3.4 Defectives Lean production necessitates for the zero defects (Slack, 2007). McDonalds has intensively invested in equipment and staff in creating a proffered management practice. Evidently, it used over $ 26.9 for its field operation in determining proffered strategies for training and equipment use. 4.0 Team Management Assigning products families to qualified teams, enables an end-to-end responsibility that facilitates the handling of responsibility and completion (Consultus, 2011). Improvement suggestion are designed from within the teams that offer substantial support for decision-making processes. McDonalds has emphasized on effective teams from the suppliers to the assembly line; from the training of proffered products by suppliers to the production of the final product. 5.0 Pursue Perfection Organizations pursuing perfection needs a continued alignment to the organization’s processes and value stream, robustness and flow’s speed (Singh, 2010). McDonald’s operating systems was fashioned in such a manner which ensured quality, speed and uniformity. Suppliers are compelled to present high-quality food standards such as fish and potatoes. 6.0 Identification of value Stream McDonalds has pioneered in comprehension of value stream in its field operation. An organization’s product family and products necessitates for the identification of the whole value stream (Singh, 2010). Fundamentally, the value stream consolidates various actions essential in the realization of quality product. This principle significantly grasp and eliminates waste along the value stream (Bonaccorsi, 2011). In this regard, McDonalds has emphasized on the need for quality products throughout its supply. Quality of product significantly determines the propensity to offer quality services for its customers. In response, therefore, the company initiated these strategies in pursuit of value across its supply chain. In its initial research stages, McDonald monitored the quality of potatoes used in the production of French fries. Thus, it discovered the need to cure the potatoes three weeks prior to production of perfect fries. McDonald responded by training the affiliated groups on the procedure that offered the best starch amount in the potatoes. Hence, the suppliers needed to maintain a high-quality production of the food produce. Consequently, selected suppliers needed to meet the specified quantity of produce 3,000 pounds of meat and 1800 pounds of hamburger. 7.0 Customer Value With the aim of offering great value for its food products, it ensures that the products are prepared in a clean environment that promote healthy consumptions. Evidently, these promote hygienic conditions for food preparation. McDonalds holds its customers in high esteem, hence employ stringent measures in the production of its foods. Specific starch content (21%) and 83 % percent lean chunk are enumerated for all the potatoes and meat respectively. These enhances the quality of products supplied in its outlets. As such, its French fries were about 9/32 of an inch with a holding time of less than 10 minutes. Precise quantities of available nutrients in the vegetable products are significant. Verhoef (2009) suggests that precise considerations of co-creation are essential in meeting the customer’s emotional expectation. In this regard, McDonald oversees the implementation of strategies where food products are created using the same procedure in all its outlets. In essence, the customers experience the same taste of food without variations on all outlets. Verhoef (2009) furthers by suggesting that customer’s influence is essential in the empowering loyalty. On the other hand, 8.0 Conclusion Conclusively, McDonalds has championed in its process and production capabilities given the need to maintain and produce quality products. McDonald’s entire design and production process have facilitated a robust system that satisfy the customer demand in the market. Its sustainability in ensuring the supply chain’s effectiveness and waiting time reduction has greatly contributed to its success. Reference List Belfrage, J., & Hedberg, P., 2006. Are you lean or just mean? - A study of the application of lean principles in face-to-face service operations. Stockholm: Stockholm School of Economics. Bonaccorsi, A., Carmignani, G., & Zammori, F., 2011. Service Value Stream Management (SVSM): Developing Lean Thinking in the Service Industry. Journal of Service Science and Management, 4, 428-439 Singh, B., Garg, S. K., & Sharma, S. K., 2010. Value Stream Mapping: Literature Review and Implications for Indian Industry. The international Journal of Advanced Manufacturing Technology, 53 (5-8), 799-809 Consultus. 2011. Lean Services - How service organizations meet future challenges. ACE. Moeller, S., 2010. Characteristics of services – a new approach uncovers their value. Journal of Services Marketing, 24 (5), 359 - 368 Seddon, J., O'Donovan, B., & Zokaei, K., 2009. Rethinking Lean Service. Management Services, 54, 1-15. Sawyer, N. J., & Williams, B., 2012. Lean for dummies. Hoboke, New Yersey: John Wiley & Sons, Inc. Suárez-Barraza, M. F., Smith, T., & Dahlgaard-Park, S. M., 2012. Lean Service: A literature analysis and classification. Total Quality Management & Business Excellence, 23 (3-4), 359-380. Tepsich, C., 2010. Process improvements in after sales quality management -Lean principles implementation in a service context. Milano. Taylor, G. M. 2009. Lean Six Sigma Service Excellence. Fort Lauderdale: J. Ross Publishing. Wei, J. C. 2009. Theories and Principles of Designing Lean Service Process. ICSSSM '09 - 6th International Conference on Service Systems and Service Management 2009, (pages. 821 - 826). Verhoef, P, Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L., 2009. Customer experience creation: Determinants, dynamics and management strategies. Journal of Retailing, 85, 31 – 41. Read More