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 EXECUTIVE SUMMARY
 Operations Management Strategies in
McDonalds are being made by top management.
These strategies are implements in all branches
under instructions of top management, which are
distributed to all branches in written form. So
there are operations mangers in all branches that
control all operational activities. These strategies
impacts positively and helps to achieve the goals.
ÔUALITY MANAGEMENT STRATEGIES
1. Designof goods and services
2. Managing quality
3. Process strate
4. Location strategy
5. Layout
6. Human resource
7. Supply chain management

8. Inventory management
9. Scheduling
10. Maintenance
 YEATURES OY ÔUALITY MANAGEMENT
STRATEGIES

Product Ôuality

Trainning

Continous Improvement

Customer Satisfaction
 INTRODUCTION TO
COMPANY
 McDonald's a Global Phenomenon
Yormed in 1954, McDonald's brand is the
leading global foodservice retailer with
more than 30,000 local restaurants
serving nearly 50 million people in more
than 120 countries each day. The rich
history began with founder Ray Kroc's
strong McDonald's
foundation.
vision and commitment of our
talented executives is to keep the shine on
McDonald's arches for years to come.
ORGANIZATIONAL MANAGEMENT

Top
Management

Middle
Management

Lower Management
TOP MANAGEMENT
 CEO
Jim Skinner
 President of McDonald·s North America Ralph
Alvarez
 Executive Vice President and Chief Operating
Officer : Don Thompson
TOP MANAGEMENT

Ralph Alvarez as Presidentof McDonald·s North

America
Ñ responsible for 15,000 restaurants in the U.S.
and Canada
Ñ Promoted to highest level, decided to address the
issue of career development.
TOP MANAGEMENT

Don Thompson as Executive Vise President and

Chief Operating Officer McDonald USA
Ñ Responsible for restaurant operations in the
U.S., with more than 13,800 restaurants in
three divisions, along with the Restaurant
Systems, U.S. Support, and Strategy and
Planning functions.
Ñ Served as Executive Vise President and
Innovation Orchestration Leader, McDonald·s
restaurant Solution Group. In this capacity, he
and his team were responsible for McD
innovation pipeline.
MIDDLE MANAGEMENT
Ñ Representing several functions, locations, and levels,
who were selected based on their interest and track record in
development, and their credibility among peers. The
group of 25 included 20 field managers and directors
collaborating with five corporate human resources and
training staff.

Ñ McDonald's recognized that middle management was

integral to driving the business, both short and long
term. The employees in these roles provide direction,
guidance, quality control, training, site selection and
construction management, restaurant management
expertise, and support for over 13,700 franchisee and
company-owned restaurants across the United States
LOWER MANAGEMENT
 Manager is responsible for completing the plans
have been set by managers is higher. At this level
also have the expertise of technical expertise,
that expertise which includes procedures,
techniques, knowledge and expertise in
specialized fields. Yor example: the supervisor /
production supervisor, foreman.
 OPERATIONS MANAGEMENT IN
MCDONALD
m erations Decision

Process

Ôuality

Capacity

Inventory
PROCESS
 Good Service Design
The tangible goods and intangible services are
provided by McDonalds and the
homogeneity is maintained
globally. The goods and services are
provided on in a package that·s why the company
lies in 50% in goods production side and 50% in
service providers
PROCESS
 Strategies  Results
a)Advertisement: 1.Inside the McDonalds:
McDonalds implements a)Achieving Objectives: it·s
this strategy by earns profit, customers
advertising on are satisfying, and
TV,newspapers, sharing in revenue growth
brochure. of the country.
b)Customers b)Business Development
Relationship: convince 2. Outside the Organization:
the people and Improving social life
customers about
services.
PROCESS
 Vayout Design
Strategies
a)Exterior: McDonalds sets to save time, satisfy
their customers, comfortable environment for
both employees and customers.
b)Interior: internationally
Results
a)Brand Recognition: Homogeneity in layout design
and franchise settings strikes a clear brand
image.
b)Customer Satisfaction: Through a universal
image
ÔUALITY
McDonalds maintains the following quality rules:
 Maintaining strict standards of quality and
safety, so that the customers can feel comfortable
 Serving a variety of nutritious, high-quality food
products and portion sizes,
 Providing nutrition information to help
customers make smart choices.
 Informing the customers about energy balance
and fun.
HUMAN RESOURCES
 Being partially in pure services and goods production
sector, McDonalds exercises a good strategy for its
human resources e.g.
 Right Person on Right Job: McDonalds allocates its
human resource in according to the abilities,
qualifications and experiences of employees.
 Trainings: McDonalds provide training opportunities
for its employees who need training in a particular
area.
 Separate Departments for Different Yunctions
 Proper Utilization of Resources: As there are many
experts in different areas, so they
use all available resources and opportunities properly.
 Competency
p P p

 Vcatin Selectin
Generally it has been observed that McDonald follows
the different locations and outlets according to the
specific area.
Strategies
McDonalds makes and implement its location strategy in
following way:

a)Business Areas: They open their branches in business

areas where they target the corporate people and the
working class to dine in and have their timeout for
breakfast and lunch.
b)Play Lands and Shopping Areas: They try to introduce
their services according to target customers
p P p

Results

a)Convenience: Customers feel comfort

ability when a branch is in near vicinity to
their work place.

b)Customer Gaining: Due to the good

environment the company has an ability
to gain their customers to their locations.
p P p

 Su ly phain Management
These strategies determine what is to be made
and what is to be purchased. So McDonalds
follow these strategies and have a just-in-
time inventory system. Which means that the
orders are placed as the raw material comes to
near finish. McDonalds maintain no inventory
levels for perishable goods
p P p

Suppliers
The major suppliers of McDonald·s in Pakistan
are as follows:
Ñ Dawn Breads for Buns

Ñ Choudhry Dairy Limited for dairy products

Ñ Walls Ice Cream

Ñ Coca-Cola Ltd. for drinks

Ñ Pakages for packing

MAINTANENCE
 They train their employees of all departments
regarding their job, so they can handle their
customer and work as well which helps to
maintain their status quotas. McDonalds is among
the companies which are partially involved in the
production of goods and services, so a proper
maintenance system within the organization
strengthens the goodwill and reputation
TOTAL ÔUALITY MANAGEMENT

Trainning
In McDonalds nearly every employee
is given training for its work. e.g. the
cashier is trained for all the cash
handling, floor manager is polished
against his degree in hotel
management. And all the other staff
is trained accordingly.
TOTAL ÔUALITY MANAGEMENT
 Customer Satisfaction

well trained
employees

improved
quality
standards

No room left
for customer
dissatisfaction
 It·s All
YINISH

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