an analysis of McDonald's Operation Managment

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1. Introduction

This report will explore the arena of Operations Management and its design, along with evaluating its importance, impact and future implications. The organization that will be used to carry out this analysis is McDonalds Cooperation, as it will serve as the center-point through which this report will critically evaluate the impact of operations design. 

Operations Strategy can be defined as a system of actions and decisions that form the basis of the long-term vision, mission and objectives of these operations and how these impact an organization’s strategy and planning (Slack & Lewis, 2017, as cited by Slack & Brandon-Jones, 2018). The importance of this operations strategy can be evaluated by how successfully they lead to advantages for an organization in the areas of sales and supply of their products (Slack & Brandon-Jones, 2018).

2. The determinants of Operations Strategy and Design 

This section will elaborate what Operation Strategy constitutes of and what are the determinants that are important in understanding the concept.

2.1 Four Stages of the Operations Model

Hayes and Wheelwright describe the four stages of the Operations Model. Stage 1 deals with correcting and working on the worst problems. Stage 2 involves the adoption and implementation of the best mode of practice. Stage 3 requires the linking of operations with the required strategy and lastly, Stage 4 focuses on operational advantages. With the help of these four stages both the impact of strategies and capabilities of the operations are bolstered. (Hayes & Wheelwright, 1984, cited by Slack & Brandon-Jones, 2018).  

2.2Five Operations Performance Objectives 

While talking about the determinants of operational performance, it is important we talk about the five performance objectives paramount to operations. These are quality, dependability, speed, flexibility and cost. These become the foundation of operational management as the element of trade off comes in, when an organization chooses between which objective to focus as per their needs. It is also really important for an organization to understand how to apply these objectives as they determine the performance of these operation strategies. (Slack & Brandon-Jones, 2018).

3. McDonald’s Operation Design and Strategies

3.1 Main determinants of McDonald’s Operation Design

McDonald’s is one of the biggest multinational food chains in the world and is always in the spotlight for their management and operation structures catering to such a huge customer base all over the world. An article highlights ten important decision areas McDonald focuses on under operations management, which are, design of their goods and services, quality of management, process and capacity design aimed at efficiency, location with maximum market reach, layout and space design, human resources and training, supply chain diversification, inventory management aimed at minimizing costs, scheduling addressing fluctuations in demand and maintenance (Gregory, 2017). By continuously focusing on and adopting these strategies, McDonald’s has not only achieved increased productivity, but made sure that effectiveness and efficiency are maintained at each operational level. These clear-cut strategies also link with the five key performance objectives we touched on in the previous section, and thus makes sure that strategies align with the targets and goals of the organization.

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