COURSE OF ACTION AND SOLUTIONS

1.0 Using Total Quality Management (TQM) to solve for Issues and Challenges Facing by McDonald’s

1.1 Employee Involvement

            For McDonald's, total quality management (TQM) involves that the employees are at work on time, are neatly dressed, and are clean. The employees must make sure that the customers constantly receive safe food, which implies that the employees must wash their hands often to remain clean. Moreover, the employees must follow certain Standard Operational Procedures, so the customers always receive exceptional quality and service. This includes the employees using plastic gloves when they prepare the food, that the meat and fries are properly fried, and that the vegetables are thoroughly washed when used in the food. Another TQM is that the employees rely on teamwork and high energy to get the job done, so that the customers do not have to wait long for their food. Furthermore, McDonald's management emphasizes that their restaurants should be clean. This involves that the restaurants are tidy, sparkling and spotlessly clean. As McDonald's illustrates the quality is that the employees delivers fast, accurate and friendly service with a smile.

            For TQM programs that do not have management commitment and employee involvement are bound to fail. This will contribute to poor business results and employee turnover. High turnover rates are a challenge for any company in the food service industry, including McDonald’s. Both managers and academics believe that, with commitment from senior management, by involving employees in problem solving, decision making, and business operations, performance and productivity will increase. Employees should be encouraged to control their destiny and participate in the processes of the organization. To be effective, employees should be given power, information, knowledge, and rewards that are relevant to business performance. The Restaurant People Strategy is designed to offer a compelling employment value proposition by providing unique benefits, training and opportunities that meet the needs of today’s workers. McDonald's benefits program is designed to attract, retain and engage talented people who will deliver strong performance and help McDonald's achieve their business goals and objectives. These benefits include health and protection such as employee and dependent life insurance, dental, travel and business travel accident insurance; pay and rewards such as base pay and incentive pay, profit sharing, paid holidays and vacation, educational assistance and several other benefits. This will help in higher levels of employee commitment in the countries where the company operate, which in turn, will continuously improve employee retention rates.

1.2 Focus on the customer

            McDonald’s brand mission is “to be our customers’ favorite place and way to eat”. McDonald’s operators, suppliers as well as employees cooperate to achieve customers’ need in McDonald’s unique ways. They also have the best ideas with both large scale efficiency and local style through the most dominant grouping of entrepreneurial spirit and System wide position around their Plan to Win. McDonald’s provides the customers with high quality of food and better-quality services in a friendly, hygienic and enjoyable environment at a great value as to make their customers feel good when having McDonald’s foods and beverages.

            McDonald’s takes into account of the customers’ nutrition. Researches had being carried out to measure and create a menu which match the daily nutrition of their customers. In this busy lives nowadays, McDonald’s concern with the calories consuming and other diet-related concern from the foods they provide as they want their customers to stay within their goals for the day. Besides, McDonald’s aim to inspire and motivate people to live balanced, active lives with their Balanced, Active Lifestyles (BAL) efforts by bring in the global theme which is “it’s what I eat and what I do”. Furthermore, McDonald’s introduced children’s nutrition meal named “Happy Meals” which were originally designed for young-age children in suitable portion sizes with essential nutrients such as protein, calcium, iron and vitamins B.

            McDonald’s hamburger patties are made with 100% United States Department of Agriculture (USDA) inspected beef in U.S. the hamburger patties only cook and prepared with salt and pepper which without added any preservatives and fillers. Besides, McDonald’s hamburger buns are made from North American grown wheat flour , the world famous French fries are made from potatoes and cooked in a canola-oil blend. To ensure customers are under protection and satisfaction, McDonald’s improve their food safety and quality standard to the highest rank in the industry. They source their ingredient from suppliers that hold on to strict standards for food safety and quality, including behaves a controlled, well-maintain and clean environment throughout their entire supply chain. They conduct stringent procedures for handling, storage and minimize exposure, which will contribute to the presence of microorganisms as to maintain the quality of their food.

            Furthermore, McDonald’s approach to environmental responsibility over the pass thirty years, they come out with the solutions that are good for their business system and also to the world in which they operate. The new environmental responsibility of McDonald’s is “The 2010 Global Best of Green”. This is a progress that demonstrated on multiple fronts including energy, packaging, anti-littering, recycling, logistics, communications, greening the restaurants, greening the workplace, sustainable food and suppliers leadership.

            There are also 24-hour McDonald’s restaurant to serve customers as to improve customer satisfaction. Besides, McDonald’s introduces McValue Lunch from 12noon to 3pm from Monday to Sunday. Nevertheless, McDelivery is available from time to time with only a minimum charge based on every delivery.

1.3 Continuous Improvement

            In order to comprehend the need for improvement in the construction industry and to better manage their project and construction companies especially like McDonalds. To be competitive in market, McDonald has provided more consistent quality and value to their owners or customers. Such goals demand that a continuous improvement (CI) process be established to provide total quality management. So that McDonald give lot attention to the satisfaction level of their customers with improve quality standards such as trained employees, improve product quality and improve performance and exercises a good strategy for its human resources.

                        More than that lot expenditure is made in the quality maintenance and improvement researches. McDonalds maintains the following quality rules such as maintaining strict standards of quality and safety, so that the customers can feel comfortable fitting any of the food products into their personal eating styles. Second, is serving a variety of nutritious, high-quality food products and portion size, including new salad, fruit, and vegetable offerings Happy Meal Choices. Beside, McDonald providing nutrition information to help customers make smart choices that address their individual lifestyle needs. Furthermore, the company informing the customers about energy balance and fun, practical ways to incorporate physical activity into their everyday lives and motivating kids to be active by engaging Ronald McDonald as ambassador for play and activity. Finally McDonald sponsoring major sports competitions, including the Olympics and the FIFA World Cup soccer matches.

            More to the point, McDonald creates connection between the quality of product and the ability of employees by give training to their employees. Employees were having training for it work. Besides, workers in McDonald consist of on-the job-training and largely vocational. More than those new workers were given orientation. McDonald also has a training room for their employees. During the training, trainer is use a series of checklist. It is important for McDonald to create quality employees. In addition McDonald uses the strategy “right person on right job” means that allocates resource in different areas according to the abilities, qualifications, and experiences of employees. Beside, McDonalds has different departments for different functions.

            Another strategy that McDonald use is Employee’s job satisfaction means that provides training opportunities to its employees. So it results in enhanced performance and they become more interested to work in good manner, which gives a good reputation to the organization and trains its employees of all departments to enhance their capabilities and to improve their skills.

            A key part of the McDonald’s philosophy is continuous improvement, not only in the restaurants but with its primary and secondary suppliers as well. McDonald has developed a ‘Supplier Quality Index’ (SQI) by which all suppliers are measured. It allows companies to monitor performance of suppliers across the many agricultural and non-agricultural product and services. McDonald also conducts regular audits each supplier including the two plants of Esca Food Solution Ltd.

            McDonald also introduces a sophisticated system of monitoring performance of its meat suppliers. After that based on a number of Key Performance Indicator (KPI’S), system benchmarks quality performance both against other suppliers and past performance that is operates in real-time. Also, supplier receives a monthly summary report of performance.

2.0 Quality Management by “Technique of Total Quality Management”

2.1 Quality Circle

            Quality Circle is one of the employee participation methods. It implies the development of skills, capabilities, confidence and creativity of the people through cumulative process of education, training, work experience and participation. It also implies the creation of facilitative conditions and environment of work, which creates and sustains their motivation and commitment towards work excellence. A quality circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas. It is "a way of capturing the creative and innovative power that lies within the work force". McDonald’s employee’s performance is assessed not only on their work plan accomplishments, but also on the extent to which they demonstrate the Global Leadership Competency Model and McDonald’s values.

            Based on McDonald believes that good governance is a journey, is not a destination. Accordingly, they commit to review their governance principle at least annually with a view to continuous improvement. Apart from that is self-development. Bring out people who potential but never been develop. Moreover, improved organizational culture is also the main objective. It provides positive working environment with total involvement of people at all level. Thus, higher the motivational level due participate management process. McDonald’s values were recently integrated into their Global Leadership Competency Model, which has in turn, been embedded into their Performance Development System (PDS). As a result, every McDonald’s employee’s performance is assessed not only on their work plan accomplishments, but also on the extent to which they demonstrate the Global Leadership Competency Model and McDonald’s values.

2.2 Six Sigma

            By using Six Sigma, the work begins with management. The management has identifying and measuring the processes of their organization before the work is done. A process which means as the activities and steps that provide by supplier to take input add value and provide product for customer.

 

Adapt to McDonald’s management based on key concepts:

Critical to Quality: McDonald’s has used the food safety management system in place, including Good Manufacturing Practices (GMP), sanitation program, an approved Hazard Analysis Critical Control Point (HACCP) plan, as well as crisis management and food security program. Supplier Quality Management System that including food safety and high expectations for all McDonald's suppliers throughout the world has been updating by McDonald’s in 2007.

Defect: McDonald's management would also like to keep the companies from contaminated when received complaints from customers who fail to get what they want, McDonald's will try to deliver the desired products by customers to their homes.

Process Capability: McDonald’s has used the system to facilitate the drive-through customers to buy without having come down from the vehicle and provide a home delivery service.

Variation: McDonald's has introduced a variety of menus for customers to make choices and feel the food. By the way, in each month of the McDonald’s will try to introduce new menu items to customers.

Stable Operation: McDonald's management has increased its operations from year to year with the introduction of new products to enhance customers' willingness to dine in their restaurants

Design for Six Sigma: McDonald's has been encouraging businesses to focus on its customers. Under the entrepreneurial spirit and harmony of system wide about McDonald's plan to win enables them to execute the best ideas to the efficiency of large-scale and local talent. With the McDonald’s restaurant have been giving experience simple, easy and please the customer.

            McDonald’s referred to as DMAIC (Define, Measure, Analyze, Improve, and Control) which provide a structure way for its own to approach and solve problems. McDonald’s also are learning about Six Sigma through GE’s program, At the Customer, For the Customer (ACFC). McDonald’s Management will get a new perspective on their business through this program and this can help McDonald’s to continue grow. McDonald’s has incorporated some aspects of the philosophy. “It’s a disciplined approach to decision making.” Six Sigma philosophies involve measuring weakness in a process and determining how to change the weakness to advantages. Proponents contend that using the philosophy can result in cost reductions, less waste, and improved understanding of customer needs. McDonald's management has minimize costs, the problems of pollution, waste management, water and energy conservation or that have occurred around the world to build a green restaurant in Brazil.

2.3 Reduced Cycle Time

            In McDonald’s company, the ways they use to reduce cycle time are by introducing McDonalds McDelivery and Drive-Thru for 24 hours. The simplification of work cycles, including dropping barriers between work steps and among departments and removing worthless steps in the process, enables a TQM program to succeed. Even if an organization decides not to use quality circles or other techniques, substantial improvement is possible by focusing on improved responsiveness, acceleration, and effectiveness of activities into a shorter time. For example, by doing McDelivery, customers do not have to take a long time and queue up in McDonald’s restaurant to make an order. Besides, the company can prevent wastes by doing such services. McDonald also introducing Drive-Thru that will be opening for 24 hours. People just need to stay in the car instead of go inside the restaurant. Just get in queue, look at the menu and place their order. After that, collect your order and enjoy your meal! This service is fast and customers will not be bored to eat meals of McDonald. The workers energy are needed and used up all the time. Workers can cooperate nicely with their employees and will increasing the company profits. Sine McDonald felt that those services are effective, so they will continuously use the services and keep on improving it. Thus, McDonald can process most order within a short time after the order is received. Hence, McDonald can reduce the cycle time efficiently and effectively.