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Analysis of the operations management of McDonald’s
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DescriptionMcDonald's 4 V(Variety, Volume, Variation, visibility)
1. Do an analysis of the operations management of McDonald’s.
Operation management means a team or group to design the process of translation of input (raw materials, labor, proprietary information, etc) into output (goods, services, etc) that is most beneficial to business. Operation team should also to balance the costs and revenues to highest profits (investopedia, 2011). According to ( Slack, 2007), operation management is an activity to managing and planning resources which are devoted to production and delivery of product and services.
Operation Input and output of McDonald’s
Meat and fresh burger
Fryer and oven
Processing technology and facilities
Prepare food Serve customer Delivery Services Cleaning environment
Make customer happy and satisfy
‘Four Vs’ operation of McDonald
All four dimensions have implications for cost of creating the products or services. It determined by demand of market it serving (Slack, 2007), but some organization have their own direction of setting four dimensions.
The Volume of McDonald’s: High
The Volume for McDonald’s is important, it every days serve less than 1 percent of the world’s population, it derives 80% of revenue from eight countries such as Canada, Germany, France, Japan, UK, Australia, US and Brazil. (Gubman, 2007). Thus, McDonald’s are leaning to high volume of production and high job repeatability, specialization, systemization, more capital incentive and reaches economics of scale. On the other side, McDonald’s are adding new product to its menu to prevent customer sick of their food, to meet customer preferences and needs, it also add new foods for different seasons (santoshjain.com, 2010).
The variety of McDonald’s: Medium
The variety of McDonald’s is in medium, it achieve standardization of product and meet customer needs, according to Krish (2009) MacDonald’s burger and French fries are made a look, smell and taste very similar across the global, despite all the different in environment variable. The product standardization is a culture of maintaining uniformity in operations and processes through the organizational. Besides that, McDonald’s workers are work on routine and job specification, these make it enable to lowering to production cost and unit cost.
For the match customer needs, McDonald’s ...
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