Measures of Operational Performance: McDonalds

Measures of Operational Performance: McDonalds 

 

Introduction

 

Operational performance of McDonalds will be the focus of this essay particular on certain measures of the operational performance, as indeed there will be discussions on the supply chain performance measures and customer satisfaction performance measures as ideally functioning for McDonald’s business environment. There can be process of choosing appropriate supply chain performance measures which can be due to the complexity ofMcDonalds measures of performance. There research integration of the measuring of supply chain like, Beamon (1996), presented number of characteristics as found within effective performance measurement as analyzing the measures based on McDonald’s effectiveness, the operational performance measurement have changed over the years and that McDonalds will need to always consider the basis of performance operation measurement as there places a factor for supply chain and customer satisfaction performance that can be necessary in order to present relevant measures as McDonalds need upon Iimproving world class restaurant business performance.

 

Main Points: The two measures

A.    Supply chain performance measure for McDonalds

Supply chain management, analysis, and improvement for McDonalds is becoming important of which sector the company belongs as the measuring of supply chain depends on the supply chain logistics management at McDonalds as well as the measuring of supply chain process affecting McDonalds real world applicability. The customer responsiveness measures include lead time, stock out probability as well as the fill rate as corresponding to the operational performance measures used by McDonald as appropriate for supply chain analysis, the measuring of customer satisfaction (Christopher, 1994) with ample base pointing to supply chain performance measures (Johnson and Randolph, 1995). The use of single performance measure is attractive for McDonalds because of the simplicity and the company must ensure that if a single performance measure is utilized, the measure is being adequately describes the McDonalds system performance. Thus, Beamon (1996), have identified and evaluated various individual supply chain performance measures noted that, significant weaknesses were present into the performance measures evaluated, based on measurability and consistency. Aside, Maskell (1991) suggests that the type of performance measures required for McDonalds can be directly related to the customer service strategy chosen by the company and determine if McDonalds operational performance is meeting strategic goals and that, the performance measure will steer McDonalds business direction. For example, product quality at McDonalds can be measured in many different ways. Although it may be difficult to choose the individual performance measures, it is vital that the performance measures are related to the strategic goals of McDonalds. Consequently, important supply chain characteristics at McDonalds thus measure better customer related resources, as an integral part of McDonalds supply chain. Furthermore, flexibility is vital to the success of McDonalds supply chain, since the supply chain exists in an uncertain environment (Slack, 1991). For example, a reduction in McDonalds system resources may negatively affect their supply chain’s flexibility as McDonalds supply chain measure may be currently utilizing its resources efficiently, producing in desired output, but will McDonalds supply chain be able to adjust to changes in, for instance,  McDonalds product demand, customer service unreliability, the introduction of innovative products and or supply shortages, truly flexibility serves as an important consideration in McDonalds supply chain performance measure.

B.     Customer satisfaction measures for McDonalds

The customer relations manager at McDonalds is responsible for collecting the customer satisfaction information from the fast food, restaurant areas in order to access guest satisfaction information and take appropriate operational performance measures as well as impeding positive action for satisfaction performance. The McDonalds manager may routinely circulate through the restaurant and the need to talk to their customers as they are receiving performance services at its best. This is perceived to be the most critical measure for operation performance at McDonalds placing in certain solution to customer problems and improving McDonald’s current level of satisfaction. The McDonalds managers believe that observing at the time of service and talking to the customers on real-time serves as crucial element of monitoring satisfaction level of McDonald’s customer. McDonalds believe that great customer satisfaction as well as information is a valuable decision making tool as the McDonalds customer remains on the restaurant premises, encourages McDonalds  employees and managers to be responsive and communicative with customers. Amiably, feedback from McDonald’s customers after their visit, such as fax and letters is also considered as an important indicator of guest satisfaction. The real-time decision-making is implemented by McDonalds operating departments that have large degree of customer interface such as fast food services and the customer relations, as there is service delivery at McDonalds involving high degree of customer interface as McDonalds managers prefer to monitor customer satisfaction using ways of communication and observation by personal presence. As Fisher (1992, p. 21), argue that setting standards for performance measures may impose conflicts with continuous improvement at McDonalds as he noted that, ‘if standards were not carefully set, they had the effect of setting norms rather than motivating satisfaction improvement” (p. 22). However, although McDonalds has wealth of services and products that can be measured and assessed, the most critical aspect is seen to be the overall impression gained by the customers during their use of the place to dine and other reasons. McDonalds operational performance management are required to strike in strong balance between providing an overall customer satisfaction experience and operating in to several restaurant product and services and McDonalds  will achieved the success in satisfaction measure through continuous observation and real time supply chain measures by McDonald heads. The main effort of McDonald’s performance management and McDonald’s employees is to satisfy their customers on a real time basis (Fitzgerald and Moon, 1996) and essential for customer satisfaction measures at McDonalds to talk constantly to their loyal customers and receiving their reactions and responses are seen as key satisfaction measurement indicators, helpful in gaining an awareness of problems and possible complaints.

Conclusion

In conclusion therefore, operational performance measures for McDonalds supply chain and customer satisfaction performance integrates a solid weight in keeping the restaurant intact into the business arena despite several economic crisis that the companies face today as McDonalds current supply chain performance measurement serves an adequate measure and are being consistent with McDonalds the strategic goals and does consider the value placed by customer satisfaction grounds although the use of McDonalds supply chain performance measures may be commonplace in real restaurant settings but, not common within supply chain modeling. The next step for McDonalds can be to develop framework for measuring supply chain performance linking to satisfaction modes of customers that can be in terms of McDonald’s decision process and operational performance pattern which requires real time performance measures during operation and communication within McDonald’s operation areas  Thus, performance measurement practice in the case of McDonalds implies to customer satisfaction from within there indicates performance operation levels and McDonalds financial measures from the effective management stature.

References

Beamon, B.M (1996), “Performance measures in supply chain management”, Proceedings of the 1996 Conference on Agile and Intelligent Manufacturing Systems, Rensselaer Polytechnic Institute, Troy, New York, NY

Christopher, M. (1994), Logistics and Supply Chain Management, New York, NY

Fisher, J. (1992), “Use of non-financial performance measures”, Journal of Cost Management, Vol. 6 pp.31-8.

Fitzgerald, L., Moon, P. (1996), Performance Measurement in Service Industries: Making it Work, CIMA, London

Johnson, J.B. , Randolph, S (1995), “Brief: making alliances work – using a computer-based management system to integrate the supply chain”, Journal of Petroleum Technology, Vol. 47 No. 6, pp.512-13

Maskell, B.H. (1991), Performance Measurement for World Class Manufacturing, Productivity Press, Portland, OR

Slack, N. (1991), The Manufacturing Advantage, Mercury Books, London

 

 

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