OPERATIONS MANAGEMENT

Use of Teams in Operations Management Improve Processes: A Case on McDonalds

[Name of Professor]

[Name of Course]

Abstract

The topic under discussion is use of teams in operations management. A global organization was chosen to analyze the use of teams in their operations management processes. In this paper, McDonald's has been used as a case study. It has been deduced that using teams proves beneficial for operations management. It further goes hand in hand with the organization's strategy.

Table of Contents

Abstractii

Introduction1

Discussion1

Background1

Market Share and Financials2

Global Presence2

Operations Management3

Product Planning3

Capacity Planning3

Location Planning3

Process Planning4

Layout Design4

Job Design4

Supply Chain Management5

Inventory Management5

Quality Management6

Economic, Natural, or Environmental Crisis6

Conclusion6

References8

Appendices9

Financial Press Release11

Use of Teams in Operations Management Improve Processes: A Case on McDonalds

Introduction

“Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want” (MITSSM, 2011, pp. 01). Operations management concerns making the most efficient use of whatever resources an organization has so as to provide the finished goods or services that its customer need in a timely and cost effective manner. Operations management is related with the strategy of the organization. In this paper, the relation between operations management and use of teams will be discussed. Use of teams in an efficient and effective manner helps improve the processes in operations management. This, in turn, helps the strategy of the organization. The global organization chosen for this paper is McDonald's Corporation.

Discussion

Background

McDonald's Corporation is the world's largest chain of fast-food restaurants. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established principles of the modern fast-food restaurant. Today McDonald's restaurants are found in 120 countries and territories around the world and serve nearly 54 million customers each day.

Market Share and Financials

McDonald's is doing fairly well according to the financial highlights of this year. Surprisingly, they have recovered their same store sales growth rate; reported in its third quarter earnings. “The market had been anticipating same store sales growth of approximately 3.8% in the third quarter ending 30 September. Instead, McDonald's surprised analysts when it reported growth of 6.0% worldwide. Especially encouraging was the 5.3% increase in US same store sales growth, demonstrating an improving trend throughout the year” (MC, 2011, pp. 01). The world's largest burger chain is rising in their gain of market share with changes in their menu. Due to their efforts to controls, the corporation has managed to earn higher margins.

The burger franchise has reported an increase of 19% in consolidated operating income, which highlights that it is managing its operations well. In addition to this, Board of Directors announced a quarterly cash dividend of $0.61 per share of common stock.

Global Presence

In all its restaurants around the globe, there are a number of operations that has a relationship with the overall strategy of the organization. Their global sales are increasing with a good ...