Local Improvement Project
LOCAL IMPROVEMENT PROJECT
OPERATIONS MANAGEMENT
SUBMITTED BY:
Jussi Mäkelä
Eduardo Silva
DATE: June 3, 2013
Identify target:
McDonalds is well known for its main target to be the fastest serving family restaurant in the world. Even though McDonalds is a fast food restaurant it has difficulties during the rush hours. Lines are usually long during the peak hours, which affects their sales while people are walking to another fast food restaurant such as Subway. We decided to go into that problem and evaluate ways of solving it.
Identify performance objectives:
Performance objectives consist of five competitive objectives: Quality, Speed, Dependability, Flexibility, and Cost. In order to be competitive companies have to meet these five components and keep strengthening them. In case of McDonalds speed is the most important objective, which is affected mostly by queues. Since speed is the number one objective to McDonalds, they should pay attention to the problems that are occurring in this area. Other important objective is cost.
Order-winning, qualification and less important factors
The importance of different factors regarding company’s success is divided into three groups: Order-winning factor, qualifying factor, and less important factor. Order-winning factors are things, which directly and significantly contribute to winning business. Those factors are the main reason for customers to buy company’s products. In case of McDonalds order-winning factors would be the speed of serving the food to customers as well as the low cost of meals. In order to get more customers and expand the business McDonalds needs to improve its order-winning factors. The aim of this project is specifically improve these factors.
Qualifying factors are not as important as order-winning factors to the company’s competitive success but are important for the company’s existence. Qualifying factor is simply the level of quality that the product or service
OPERATIONS MANAGEMENT
SUBMITTED BY:
Jussi Mäkelä
Eduardo Silva
DATE: June 3, 2013
Identify target:
McDonalds is well known for its main target to be the fastest serving family restaurant in the world. Even though McDonalds is a fast food restaurant it has difficulties during the rush hours. Lines are usually long during the peak hours, which affects their sales while people are walking to another fast food restaurant such as Subway. We decided to go into that problem and evaluate ways of solving it.
Identify performance objectives:
Performance objectives consist of five competitive objectives: Quality, Speed, Dependability, Flexibility, and Cost. In order to be competitive companies have to meet these five components and keep strengthening them. In case of McDonalds speed is the most important objective, which is affected mostly by queues. Since speed is the number one objective to McDonalds, they should pay attention to the problems that are occurring in this area. Other important objective is cost.
Order-winning, qualification and less important factors
The importance of different factors regarding company’s success is divided into three groups: Order-winning factor, qualifying factor, and less important factor. Order-winning factors are things, which directly and significantly contribute to winning business. Those factors are the main reason for customers to buy company’s products. In case of McDonalds order-winning factors would be the speed of serving the food to customers as well as the low cost of meals. In order to get more customers and expand the business McDonalds needs to improve its order-winning factors. The aim of this project is specifically improve these factors.
Qualifying factors are not as important as order-winning factors to the company’s competitive success but are important for the company’s existence. Qualifying factor is simply the level of quality that the product or service
References: The operations function of restaurant chain MCDONALD’S. 2013. The operations function of restaurant chain MCDONALD’S. [ONLINE] Available at: http://www.ukessays.com/essays/marketing/the-operations-function-of-restaurant-chain-mcdonalds-marketing-essay.php. [Accessed 02 June 2013]. Interbrand - Best Global Brands 2012 - 2012 Report (Brand View) . 2013. Interbrand - Best Global Brands 2012 - 2012 Report (Brand View) . [ONLINE] Available at: http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012-Brand-View.aspx. [Accessed 02 June 2013]. Home :: McDonalds.com. 2013. Home :: McDonalds.com. [ONLINE] Available at: http://www.mcdonalds.com/us/en/home.html. [Accessed 02 June 2013]. Why do you not have a single queue system? :: McDonalds.co.uk. 2013. Why do you not have a single queue system? :: McDonalds.co.uk. [ONLINE] Available at: http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/questions/running-the-business/queuing/why-do-you-not-have-a-single-queue-system.html. [Accessed 02 June 2013].