Executive summary
Lean operations are one of the major aspects that organisation adopts in order to enhance its performance and further smoothly run its operations at the same time. Here, the report intends to discuss about the lean process of McDonald’s by focusing on the business objectives of the organisation. In association with the analytical tools like 4V analysis, polar diagram and important performance matrix, it is observed that the organisation has been effectively delivering good performance in terms of global expansion, customer satisfaction and cost control. The GIT system has also been discussed in terms of manifesting the lean process adopted by the organisation and how the organisation has been delivering a clear quality of customer service in the fast-food industry.
Lean operation refers to have a significant influence over, Performance and other operations of an organisation. Here McDonald’s has been adopted as the case company to discuss its lien operation using different strategic framework, or analytical tools. Founded in 1955 by Ray Kroc McDonalds corporation has become a global icon in the fast-food industry (Bonaccorsi et al., 2011). With headquarters in Oak Brook, Illinois, McDonald’s operates over 40,000 restaurants in more than 100 countries, and serves millions of customers on daily basis. The company’s golden arches are synonymous with convenience, affordability and the famous Big Mac. Mcdonalds has not only revolutionised the new way people eat, but has also set industry standards for efficiency and consistency.
The case study evaluation in line with the lean operation focus McDonald’s operation management and a critical aspect of the company’s success to be highlighted as well. McDonald’s Operation management involves designing controlling and improving the processes that in transform inputs into the final products. Efficiently consensus inconsistently, the organisation has been setting a new scale and complexity of marginal operations (Deblois and Lepanto, 2016). The case study explores how the company manages its supply chain production process and service delivery to meet customer demands. In this regard, the operation and technology management would also be discussed as the organisation focuses on delivering seamless services to its customers.
Clear articulation of business objectives is important for any organisation and McDonalds is no exception in this regard. McDonald’s primary business objectives can be summarised into three aa areas such as global expansion and market leadership, Customer satisfaction and brand loyalty, And operational efficiency and cost control (Gładysz et al., 2020). The organisation aims to maintain and strengthen its position as a global leader, while it is also continuously working behind the expansion of global market. Moreover, the company is dedicated to providing a positive and consistent customer experience while focusing on high quality food, excellent services and welcoming environment to foster brand loyalty (Haddud and Khare, 2020). On the contrary, McDonald’s tribe for operational excellence by optimising its supply chain production processes and workforce to ensure cost effectiveness while delivering quality products.
Importance of business objectives could be analysed through using different analytical tools. Therefore, the polar diagram, 4vs analysis, importance performance matrix will be discussed.
Element | Score (1-5) |
Global Expansion | 4 |
Customer Satisfaction | 5 |
Operational Efficiency | 4 |
Market Leadership | 4 |
Cost Control | 5 |
Figure: Polar diagram
Sources: Self-created
The above pullout diagram has indicated the diagram where it illustrates the balance performance across global expansion A customer satisfaction and cost control, along with operational efficiency. The high scores in customer satisfaction and cost control reflect the company’s dedication to provide excellent services while maintaining operational efficiency (Haddud and Khare, 2020). The well-rounded approach positions McDonalds as a global leader in the fast-food industry, effectively meeting its business objectives.
4Vs Analysis Table:
Element | Description |
Volume | McDonald's deals with a high volume of transactions globally, serving millions of customers daily in over 40,000 restaurants. |
Variety | While the menu offers a variety of items, the focus is on a standardized set of products to maintain operational efficiency. |
Variability | Operational processes are designed to minimize variability, ensuring consistency in food quality and service across locations. |
Visibility | McDonald's maintains high visibility through its iconic golden arches, global marketing campaigns, and strategic location |
The 4V analysis refers to MacDonald’s being the high volume, globally efficiently managing millions of daily transactions across the vast network of 40,000 restaurants. While offering a variety of menu items, the company strategically maintains standardisation to enhance operational efficiency. Rigours processes minimises variability, ensuring consistent food quality and service at every location (Jones et al., 2021). McDonald’s achieve high visibility through its iconic golden arch, global marketing Campaign and static locations, contributing to prominent presence and brand recognition in the competitive fast-food industry.
Importance-Performance Matrix:
The important performance metric helps assess the priorities element based on their importance and performance. For McDonald’s, the matrix would look like the table below.
Element | Importance (High/Medium/Low) | Performance (High/Medium/Low) |
Global Expansion | High | High |
Customer Satisfaction | High | High |
Operational Efficiency | High | High |
Market Leadership | High | High |
Cost Control | High | High |
The importance performance matrix has manifested a clear aspect related to the elements where all the elements are dimmed highly important as they directly contribute to McDonald’s business objectives (Orynycz et al., 2020). Apart from this McDonald’s consistently performs at a high level across these elements, reflecting its commitment to global excellence.
Operation management plays a pivotal role in aligning with and contributing to the achievement of an organisation business objective. Most importantly, at the heart of this connexion lies the efficient and effective utilisation of resources to produce good or deliver services. Firstly, the operation management ensures that the production processes are in sync with the broader business goals (Rahamneh et al., 2023). For McDonalds one of the global leaders in the fast-food industry. The operational strategy alliance with the business objectives of go global expansion, customer satisfaction and cost control. Operations are designed to facilitate the rapid opening of new outlets globally, ensuring a consistent customer experience and reinforcing the brand image. Apart from these strategic decisions in Operation Management involve a careful balance between standardisation and customization. Most importantly for McDonalds, maintaining a standardised menu globally contributes to operational efficiency. The focus on core products allows for economist of scale, centralised supply chain management and streamline training processes (Setiawan and Ellitan, 2023). Moreover, operations management strategically implements technology and automation to enhance efficiency in service delivery and order processing, contributing to the overall goal of customer satisfaction.
Figure: MacDonald’s operation management
Source: (Setiawan and Ellitan, 2023)
The supply chain management is another critical aspect where operations management decisions impact the achievements of business objectives. Mcdonald’s operations management focuses on establishing robust supplier relationship, ensuring a steady supply of quality ingredients and mitigating risk associated with any disruption in the supply chain (Setiawan and Ellitan, 2023). Furthermore, initiatives in sustainability and environmental responsibilities such as waste reduction and energy efficiency are integrated into the operation strategy. These decisions not only contribute to cost control, but also align with broader corporate social responsibility objectives.
In the tactical implementation of operations management at McDonalds, several specific actions are taken to ensure efficiency, quality and customer satisfaction. These actions can be analyzed using various operations management concept and tools. One key concept employed by McDonalds is the use of just in time inventory management. This approach minimizes waste by ensuring that ingredients are delivered to the restaurants, precisely when needed for reducing excess inventory and associated holding costs. JIT contributes to operational efficiency cost control and sustainability (Setiawan and Ellitan, 2023). For example, McDonald’s relies on advanced forecasting and algorithms and data analytics to protect customer demand accurately. This enables the company to optimize inventory levels and minimize the risk of food wastage.
Another crucial element is standardization of process. McDonald’s operation management ensures that each external follows standardized procedure for food preparation, service and cleanliness (Setiawan and Ellitan, 2023). Therefore, McDonald’s tactical implementation of operations management concepts such as JIT standardization and technology integration has resulted in improved efficiency. Cost effectiveness and enhance customer experiences, contributing to companies continued success in highly competitive fast-food industry.
Operations management at McDonald’s consistently strays for operational excellence through the adaptation of principles and continuous improvement methodologies (Haddud and Khare, 2020). The company embraces lien processes, a management philosophy derived from the Toyota production system focuses on eliminating waste, improving efficiency and delivering value to customers.
Figure: lean concept at MacDonald’s
Source: (Sharma, 2013)
In the context of McDonald’s, the implementation of lean process involves streamlining operations to enhance speed, minimize errors and optimize resource utilization. Most importantly, the company employs initiatives such as the ‘Made for You’ system, where food is prepared upon customer order, reducing excess inventory and waste (Sharma, 2013). This approach aligns with the core lean principle of git production. Technologically, McDonald has incorporated innovations like kitchen display systems, automated order fulfilment processes to enhance operational efficiency. The implementation of these technologies not only improves the speed of service, but also contributes to other accuracy and overall customer satisfaction (Bonaccorsi et al., 2011). Looking forward operations management at McDonald’s is likely to continue leveraging technology and data analytics to predictive maintenance, demand forecasting and personalized customer experiences. The integration of artificial intelligence and automation may play more significant role in optimizing various aspects of the supply chain and service delivery.
In conclusion, the report has focused on discussing McDonald’s and its lean operation by properly eval the business objectives with the help of analytical tools like 4V analysis, Polar diagram and important performance matrix. These analytical tools have manifested that the organization have excelled in its lien operation, while the aspects like customer satisfaction, global expansion and cost control are effectively managed. Most importantly, the lean principal application is also highlighted with the help of Justice in time production concept and how technologically McDonald’s strengthens itself to deliver better services to the customers.
Bonaccorsi, A., Carmignani, G. and Zammori, F. (2011) Service Value Stream Management (SVSM): Developing Lean Thinking in the Service Industry. Journal of Service Science and Management, 04(04), pp.428–439. doi:https://doi.org/10.4236/jssm.2011.44048.
Deblois, S. and Lepanto, L. (2016) Lean and Six Sigma in acute care: a systematic review of reviews. International Journal of Health Care Quality Assurance, 29(2), pp.192–208. doi:https://doi.org/10.1108/ijhcqa-05-2014-0058.
Gładysz, B., Buczacki, A. and Haskins, C. (2020) Lean Management Approach to Reduce Waste in HoReCa Food Services. Resources, [online] 9(12), p.144. doi:https://doi.org/10.3390/resources9120144.
Haddud, A. and Khare, A. (2020) Digitalizing supply chains potential benefits and impact on lean operations. International Journal of Lean Six Sigma, ahead-of-print(ahead-of-print). doi:https://doi.org/10.1108/ijlss-03-2019-0026.
Jones, J.A., Cordell, L., Blaylock, G.C., S. Marcrom, Jacob, R., McDonald, A.M. and Boggs, H. (2021) Utilization of Process Improvement Methodologies to Optimize Simulation Operations. International Journal of Radiation Oncology Biology Physics, 111(3), pp.e501–e501. doi:https://doi.org/10.1016/j.ijrobp.2021.07.1380.
Orynycz, O., Tucki, K. and Prystasz, M. (2020) Implementation of Lean Management as a Tool for Decrease of Energy Consumption and CO2 Emissions in the Fast Food Restaurant. Energies, 13(5), p.1184. doi:https://doi.org/10.3390/en13051184.
Rahamneh, A.A.A., Alrawashdeh, S.T., Bawaneh, A.A., Alatyat, Z., Mohammad, A., Mohammad, A.A.S. and Al-Hawary, S.I.S. (2023) The effect of digital supply chain on lean manufacturing: A structural equation modelling approach. Uncertain Supply Chain Management, [online] 11(1), pp.391–402. doi:https://doi.org/10.5267/j.uscm.2022.9.003.
Setiawan, V.N. and Ellitan, L. (2023) Supply Chain Management and Supply Chain Performace: The Case of Mcdonald’s. ULIL ALBAB : Jurnal Ilmiah Multidisiplin, [online] 2(3), pp.1255–1269. doi:https://doi.org/10.56799/jim.v2i3.1425.
Sharma, K. (2013) A Case Study On Mcdonald’s Supply-Chain In India. [online] ResearchGate. Available at: https://www.researchgate.net/profile/Kshitiz-Sharma-2/publication/276881546_A_CASE_STUDY_ON_MCDONALD.
