Studied Total Quality Management at McDonalds (2023)

introduction

The father of the quality movement, W. Edwards Deming, introduced the management concept called Total Quality Management (TQM). This management approach originated in Japanese industry in the 1950s and has become popular in the West since the early 1980s. TQM is a system for a customer-focused organization for continuous improvement involving all employees. of all aspects of the organization. Employee involvement, customer focus, benchmarking, and continuous improvement are the four essential elements of TQM. In addition, there are some management techniques that involve the implementation of TQM, such as the Quality Circle, Six Sigma, Reduced Cycle Time and Continuous Improvement.

Employee participation creates an environment for employees to influence decisions and actions that may affect their jobs.

non-client focus

The customer is the only element that determines the level of quality and the level of reward of all the efforts of the organization to promote quality improvement, train employees and integrate quality into process management.

comparative evaluation

Benchmarking is the process of comparing one's business processes and performance with the industry in order to learn and practice with other industries to get the best performance.

continuous improvement

The process that involves continuous efforts to improve the system, products, services or processes to achieve improvements in an organization and business.

quality circle

A quality circle is a group of volunteer workers under their manager who are trained to identify, analyze and solve work related problems to improve the performance of the organization.

six sigma

Six Sigma is a management strategy designed to improve the quality of an organization's process results by identifying the causes of failures, eliminating them, and minimizing variability in business processes.

Reduced cycle time

Refers to the step taken to complete a business process.

Our group conducts research on McDonald's TQM. McDonald's is recognized worldwide as a leading fast food restaurant franchise, serving French fries, hamburgers, Chicken McNuggets, Egg McMuffins and the famous Big Mac (hamburger).

In 1940, Richard and Maurice McDonald's opened McDonald's as McDonald's Bar-B-Que Restaurant on Fourteenth and E streets in San Bernardino, California. It begins as a restaurant with car hop service and a typical drive-in with an extensive menu. However, McDonald's has become an internationally recognized company since Ray Kroc, the distributor of the Multimixer (Milk Shake), who was intrigued by the business of the two McDonald's brothers and acquired the franchise rights to them, the McDonald's restaurant in Des Plaines, III. , to lead in 1955.

Today, more than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women serving more than 60 million people daily in 117 countries in the world's largest restaurant organization, McDonald's.

1.0 McDonald's Total Quality Management (TQM)

1.1 Employee commitment

Total Quality Management (TQM) programs are an important and prominent management approach. Today, most large companies have a program that incorporates some of the practices and principles of Total Quality Management. One of the most important principles of TQM concerns employee involvement or is often referred to as empowerment. It is common for a TQM program to find that employee engagement is very important to its success.

For McDonald's, total quality management (TQM) means that employees arrive at work on time, are well dressed and clean. Staff must ensure that customers receive safe food at all times, which means staff must wash their hands frequently to stay clean. In addition, employees must follow certain standard operating procedures to ensure that customers always receive exceptional service and quality. This includes making sure employees wear plastic gloves when preparing food, making sure meat and French fries are fried properly, and washing vegetables thoroughly if they are used in food. Another TQM is that employees use teamwork and a lot of energy to complete their tasks, so customers don't have to wait long for their food. Additionally, McDonald's management emphasizes that its restaurants must be clean. This includes that restaurants are neat, clean and spotless. As McDonald's exemplifies, quality comes from staff who provide prompt, accurate and friendly service with a smile.

TQM programs that lack management commitment and employee involvement are doomed to fail. This will contribute to poor business results and employee turnover. High turnover rates are a challenge for any hospitality business, including McDonald's. Managers and academics alike believe that by involving employees in problem solving, decision making, and business operations, performance and productivity will increase with the involvement of top management. Employees should be encouraged to determine their own destiny and participate in the organization's processes. To be effective, employees must be given power, information, knowledge, and rewards relevant to business performance. The restaurant people strategy is designed to provide a compelling employment value proposition by providing unique benefits, training and opportunities that meet the needs of today's workers. The McDonald's Benefits Program is designed to attract, retain, and engage talented, high-performing employees and help McDonald's achieve our business goals and objectives. These benefits include health and protection measures such as life insurance for employees and dependents, dental, travel and work accident insurance; Compensation and rewards, such as referral and performance-based pay, company cars, profit sharing, paid holidays and vacations, student scholarships, and various other benefits. This will contribute to greater employee engagement in the countries where the company operates, which in turn will continually improve employee retention rates.

The most attractive side of McDonald's work is education, which is considered the individual training of each employee. McDonald's Corporation made its fortune by training people to be friendly, fast, accurate, and efficient. There is a world-renowned University of Hamburg located in Oak Brooke, Illinois near the main building, which serves as a training campus for restaurant managers and corporate executives. Due to McDonald's international reach, translators and electronic devices allow teachers to teach and communicate in 22 languages ​​simultaneously. McDonald's also operates ten international training centers, including Hamburg Universities in England, Japan, Germany and Australia. Today, more than 50,000 McDonald's restaurant managers have graduated from the University of Hamburg. McDonald's believes its quick-service format would be lost if service at the order counter was not courteous and efficient. To avoid this problem, some detailed videotapes were made to train all employees who needed to have direct contact with customers. The tapes cover every aspect of dealing with customers during your 15 seconds at the counter. Crew members are instructed to begin each order with a polite question: "Can I have your order please?" The success of these service methods cannot be questioned.

1.2 Non-customer focus

Customers are those who consume goods and services offered by organizations or companies. In other words, all the goods and services were provided to satisfy the demand and needs of the consumers. In addition, customers are also the only ones who evaluate the effort and the level of satisfaction with the goods and services offered by organizations or companies. Without customers, efforts to manage and operate organizations or businesses are wasted. Therefore, customer orientation is an element to measure the overall quality management of the organization or company.

The McDonald's brand mission is "To be our customers' favorite place and way to eat." McDonald's operators, vendors and employees work together to meet customer needs in a unique McDonald's way. They also present the best ideas with great efficiency and local flair through the most dominant grouping of entrepreneurship and the system-wide position around their Plan to Win. McDonald's provides customers with quality food and better services in a pleasant, hygienic and comfortable environment at a good price, so that customers feel comfortable consuming McDonald's food and beverages.

McDonald's takes customers' diet into account. A survey was carried out to measure and create a menu that corresponds to the daily diet of its clients. In today's busy life, McDonald's deals with the calorie intake and other nutritional issues of the food it offers because it wants its customers to meet their daily goals. In addition, McDonald's aims to inspire and motivate people to lead active and balanced lives with its Balanced Active Lifestyle (BAL) efforts, bringing the overarching theme, It's What I Eat and What I do. In addition, McDonald's introduced an infant formula called Happy Meals, originally designed for young children in appropriate portions with essential nutrients such as protein, calcium, iron, and B vitamins.

McDonald's hamburgers are made in the United States with 100% USDA-inspected beef. The burgers are freshly cooked and prepared with salt and pepper, with no added preservatives or fillers. Additionally, McDonald's hamburger buns are made from all-purpose flour and the world-famous French fries are made from potatoes and cooked in a canola oil blend. To ensure customers are safe and happy, McDonald's raises its food safety and quality standards to the highest in the industry. They source their ingredients from suppliers who adhere to strict food safety and quality standards, including maintaining a controlled, careful and clean environment throughout the supply chain. They implement rigorous handling, storage, and exposure minimization procedures that contribute to the presence of microorganisms to maintain the quality of their food.

Additionally, for more than thirty years, McDonald's has developed environmentally responsible solutions that are good for both its business system and the world in which it operates. McDonald's new environmental responsibility is the Global Best Of Green 2010. This is clear progress on many fronts, including energy, packaging, fighting waste, recycling, logistics, communications, greening restaurants, greening the workplace, sustainable food and supplier leadership.

To enhance the image of McDonald's among customers from adults to children, McDonald's also introduces a representative character named "Ronald McDonald", McDonald's Chief Happiness Officer. Ronald was born in 1963 and joined McDonald's the same year as a Goodwill Officer. Ronald's appearance is that of a clown who wears a long-sleeved shirt with red and white striped socks, a yellow jumpsuit with matching red and white striped socks, and large red shoes. Ronald's job is to entertain customers and bring fun to their lives as he believes that life is fun. He also loves to entertain people of all ages, especially children, as he himself has some kind of magical power to make everyone happy and laughing. The first national appearance of this McDonald's character is in the Macy's Thanksgiving Day Parade. To increase customer acceptance, Ronald can now communicate in 31 different languages.

There is also a 24-hour McDonald's restaurant to serve customers and improve customer satisfaction. McDonald's also offers McValue Lunch Monday through Sunday from 12:00 p.m. m. to 3:00 p.m. m. Despite this, McDelivery is available from time to time with only a minimal fee for each delivery.

1.3 Benchmarking

Benchmarking is a process of collecting historical information on construction costs. This historical information provides the metric by which a client can assess the profitability of their projects at the base-build level with specifics separated. Benchmarking can also be defined as the ongoing process of measuring products, services, and practices against their closest competitors. Successful benchmarking involves lying in the analysis. Starting with the company's own mission statement, a company must take an honest look at its current processes and identify areas for improvement. Next, a company carefully selects competitors worth copying.

reasons and benefits

Companies measure benchmarks for many reasons. The reasons can be varied, for example, to increase productivity. The reasons can also be specific, for example to improve a custom design. Benchmarking is a tool for continuous improvement. Companies using benchmarking strategies realize cost savings of 30-40% or more. Supports the process of budgeting, strategic planning and capital planning.

Benchmarking can also enhance the learning tool. It is designed to overcome disbelief and enhance learning. Hearing about the successful processes of another company or competitor can lead employees to believe that there is a better way to compete.

In addition, benchmarking also works as a growth potential tool. After a period of time in the industry, a company can become proficient in pursuing growth within the company. The company must look outside for growth potential.

Benchmarking is also a tool for job satisfaction. Benchmarking has evolved as networks can share methods, successes, and failures. The process successfully resulted in a high level of job satisfaction. Benchmarking is a systematic examination of a company's products, services, and work processes.

types of benchmarking

There are four different types of benchmarking. Before a company decides to compare, it must determine what it wants to compare.

Benchmarking with the company is called internal benchmarking. This is one of the simplest ways, as most companies have similar functions across all of their lines of business. The objective of internal benchmarking is to exchange a large amount of information. The benefits come from identifying internal procedures and transferring them to other parts of the organization.

Competitive benchmarking is carried out with direct competitors. This type of benchmarking is carried out externally, its objective is to compare companies in the same markets with products, services or work processes of the competition. For example, McDonald's competes with Burger King. This strategy allows you to compare the performance of a related company. With this direct competitor, information is not easy to obtain. Information in the public domain is the most easily accessible.

Industry benchmarking is done externally with industry leaders or the best functional processes of specific companies. Benchmarking partners often share some common technology and market characteristics. With no direct competitors involved, benchmarking partners are more willing to contribute and share.

Process or generic benchmarking focuses on the best work processes. Instead of focusing on a company's business practice, compare similar processes and capabilities. This type can be used in different organizations.

1.4 Continuous Improvement

Understand the need for improvement in the construction industry and better manage our construction projects and companies, especially like McDonald's. To be competitive in the marketplace, McDonald's offers more consistent quality and value to its owners or customers. These objectives require the establishment of a continuous improvement (CM) process to guarantee comprehensive quality management. For McDonald's to pay close attention to the satisfaction level of its customers, improve quality standards, such as trained staff, improve product quality and improve performance, and adopt a good strategy in its human resources.

First of all, McDonald's has improved the quality of its products to meet the needs of the customers according to their wishes or requirements and also to make its product more competitive. How to improve the ingredients and nutrients in food. For food allergies, McDonald's has consolidated all allergen information into the gradient statement. Additionally, according to McDonald's Nutrition Facts, the product is derived from testing by accredited laboratories, published resources, or information provided by McDonald's suppliers. It is based on standard product lineups and serving sizes.

More than this amount is invested in research to maintain and improve quality. McDonald's adheres to the following quality guidelines, such as: B. Adhering to strict quality and safety standards so that customers feel comfortable customizing each food product to suit their personal eating style. Second, it serves a variety of quality, nutritious foods and portion sizes, including Happy Meal Choices new salads, fruits and vegetables. In addition, McDonald's provides nutrition information to help customers make smart choices that meet their individual lifestyle needs. In addition, the company educates customers on energy balance and fun, practical ways to incorporate physical activity into their daily lives, and encourages kids to be active by hiring Ronald McDonald as a games and activities ambassador. Finally, McDonald's sponsors major sporting events, including the Olympic Games and FIFA World Cup soccer matches.

More specifically, McDonald's makes the connection between product quality and employee skills by training them. The team was trained for the job. For example, the teller is trained in all aspects of cash handling; Floor Manager perfects his degree in Hotel Management. Additionally, McDonald's employees consist of on-the-job training and, for the most part, vocational training. More of these new employees received orientation. McDonald's also has a training room for its employees. During the training, the trainer uses a series of checklists. It is important for McDonald's to create qualified employees. In addition, McDonald's uses the “Right Person in the Right Job” strategy, which means that resources in different areas are allocated based on employees' skills, qualifications, and experience. Also, McDonalds has different departments for different functions. For example, the marketing department consists of marketing professionals who perform marketing analysis, and the finance department consists of finance professionals who organize and manage finances.

Another strategy McDonald's uses is employee job satisfaction, which provides training opportunities for its employees. This leads to better performance and they are more interested in working well, giving the organization a good reputation and empowering its employees from all departments to upskill and improve their skills.

A fundamental part of the McDonald's philosophy is continuous improvement, not only for restaurants, but also for their primary and secondary suppliers. McDonald's has developed a "Supplier Quality Index" (SQI) against which all suppliers are measured. It allows companies to monitor the performance of suppliers of many agricultural and non-agricultural products and services. McDonald's also conducts regular audits of each supplier, including the two Esca Food Solution Ltd plants. All Esca Food Solution suppliers are in turn subject to audit:

One comprehensive technical audit per year, usually lasting 2 full days

Traceability audits - without prior notice - three times a year for each supplier, including factory visits.

Animal welfare audits

Product integrity audits

McDonald's is also introducing a sophisticated system to monitor the performance of its meat suppliers. From there, based on a set of key performance indicators (KPIs), the system compares quality performance both against other vendors and against past performance in real time. The provider also receives a monthly performance summary report.

Quality management 2.0 through the total quality management technique

2.1 Circle of quality

The quality circle is one of the methods of employee involvement. It involves developing people's skills, abilities, confidence and creativity through a cumulative process of education, training, work experience and participation. It also involves creating favorable working conditions and environments that create and maintain your motivation and commitment to excellent work. Quality circles have become a mechanism to develop and use the enormous potential of people to improve product quality and productivity. A quality circle is a small group of 6-12 employees with similar jobs who meet regularly and voluntarily to identify improvements in their respective areas of work, using proven techniques to analyze and solve work-related problems that contribute to achieving and maintain quality. in Ways stand that leads to a mutual appreciation of the employees as well as the organization. Circle members are free to collect data and participate in surveys. It is "a way to capture the creative and innovative power that resides in the workforce."

The quality circle focuses on using people to solve management problems. If employees are willing to contribute their ideas, management must be willing to create a comfortable environment to encourage them to do so. As with the McDonald's team, everyone has an important role to play. The team and manager work together, constantly communicating and supporting each other in a busy and challenging team, but always striving to be collaborative and fun. The performance of McDonald's employees is measured not only by performance against their work plan, but also by their ability to demonstrate the Global Leadership Competency Model and McDonald's Values.

The concept of Circle of Quality is based on recognizing the value of the worker as a human being, as someone who acts with will for his work, wisdom, intelligence, experience, attitude and feeling. It is based on the management of human resources, considered one of the key factors to improve the quality and productivity of products. Three main duties:

A form of property management.

A staff development technique.

A problem solving technique.

The objectives of the quality circle are diverse. One of the objectives is to change attitudes. It is the continuous improvement of the quality of life at work through the humanization of work. Based on McDonald's belief that good governance is a journey, not a destination. Thus, they undertake to review their governance principle at least once a year with a view to continuous improvement. In addition, there is self-development. Bring in people who have potential but were never developed. For example, in mid-2006, McDonald's launched the McDonald's Leadership Institute, a virtual learning community with guidance and resources to support and develop people's leadership and talent. In this way, people learn additional skills. The aim is also to develop team spirit. Teamwork is much better than individual work. With teamwork, it helps eliminate conflicts between departments. Furthermore, an improved organizational culture is also the main goal. Provides a positive work environment with the full participation of people at all levels. Therefore, the level of motivation is higher due to participation in the management process. McDonald's values ​​were recently integrated into its Global Leadership Competency Model, which in turn was incorporated into its Performance Development System (PDS). As a result, the performance of each McDonald's employee is assessed not only on compliance with their work hours, but also on their ability to demonstrate the Global Leadership Competency Model and McDonald's Values.

2.2 Sechs-Sigma

Six Sigma was introduced in the mid-1980s. Motorola started with Six Sigma, but Allied Signal and General Electric popularized it in the 1990s. The approach between Quality Management and Six Sigma was different than before. By using different approaches to quality, management does not have to play a major role when outside experts are brought in to train new employees. With the use of Six Sigma, the job begins with management. Management needs to identify and measure their organization's processes before they work. A process that refers to the activities and steps provided by the supplier to add value to the input and deliver products to the customer.

Every business wants to be profitable. When businesses become profitable, they can create jobs and pay taxes to the community, state, and country where they make their products or provide their services. By having customers who want your product or service, businesses can benefit. Each customer has their own requirements for the product or service. Six Sigma revolves around a few key concepts: critical quality means the attributes most important to the customer, failure means not delivering what the customer wants, process capability means what your process can deliver, variation means what the customer sees, and feels, stable operations means ensuring consistent and predictable processes to improve what the customer sees and feels and finally, designing for Six Sigma means that the design meets customer requirements and process capability.

Adapt to McDonald's management based on key concepts:

Critical to Quality: McDonald's used the current food safety management system, including Good Manufacturing Practices (GMP), hygiene program, an approved Hazard Analysis Critical Control Point (HACCP) plan, and the crisis management and food safety. McDonald's updated the Supplier Quality Management System in 2007, which includes food safety and high expectations for all McDonald's suppliers worldwide.

Shortage: McDonald's management also wants to protect companies from contamination. If there are complaints from customers that they don't get what they want, McDonald's will try to deliver the products they want to customers' homes.

Processing capability: McDonald's used the system to make it easy for customers to shop at a drive-thru without having to get out of their vehicle and to offer a home delivery service.

Variation: McDonald's introduced a variety of menus to allow customers to choose and experience the food. By the way, McDonald's will try to introduce new menu items to customers every month.

Stable Operations: McDonald's management expanded its operations year after year, introducing new products to increase customers' willingness to dine at its restaurants.

Design for Six Sigma: McDonald's encourages companies to focus on their customers. Under the entrepreneurial spirit and system-wide harmony of Plan to Win, McDonald's enables them to implement the best insights into efficiency from the best local talent. McDonald's restaurant offers a simple, easy and satisfying customer experience.

McDonald's is labeled DMAIC (Define, Measure, Analyze, Improve and Control), which provides a structured way to approach and solve problems. McDonald's is also learning about Six Sigma through GE's At the Customer, For the Customer (ACFC) program. This program gives McDonald's management a new perspective on their business, which can help McDonald's continue to grow. McDonald's has adopted some aspects of the philosophy. "It's a disciplined approach to decision making." Six Sigma philosophies involve measuring weaknesses in a process and determining how to turn weaknesses into strengths. Proponents claim that using this philosophy can lead to reduced costs, less waste, and a better understanding of customer needs.

McDonald's management minimized costs, pollution problems, waste disposal, water and energy savings that occurred worldwide to build a green restaurant in Brazil. For example, the first green restaurant opened in São Paulo, Brazil in 2008, designed and built to maximize the latest technological innovations to minimize some natural ones. The technology used in the restaurant is a rainwater storage tank to help with irrigation, a post-central unit powered by illuminated photovoltaics and smart air conditioning, which have contributed to saving 50% in water use and 14% in electricity for the first restaurant. year of operation.

2.3 Reduced cycle time

Cycle time has become a critical quality issue in today's fast-paced world. Cycle time refers to the steps it takes to complete a business process, such as: B. booking a flight, processing an online order, or opening a pension fund. At McDonald's, cycle times are shrinking with the introduction of McDonald's McDelivery and 24-hour Drive-Thru. Simplification of work cycles, including the removal of barriers between work steps and between departments and the elimination of useless process steps, enables a successful TQM program. Even if an organization chooses not to use quality circles or other techniques, significant improvements can be achieved by focusing on greater responsiveness, acceleration, and effectiveness of activities in less time. For example, with McDelivery, customers don't have to wait long or queue at McDonald's restaurant to place an order. In addition, such services allow the company to avoid waste. McDonald's is also introducing a 24-hour drive-thru. People just need to stay in the car instead of going to the restaurant. Just stand in line, look at the menu, and place your order. After that, pick up your order and enjoy your meal! This service is fast and customers won't get bored eating McDonald's food. The energy of the workers is constantly needed and consumed. The workers can work well with their employees and increase the profit of the company. Sine McDonald found these services effective and will continue to use and improve them. As a result, McDonald's can process most orders within a short period of time after receiving the order. As a result, McDonald's can efficiently and effectively reduce cycle time.

3.0 Cases of Critical Thinking at McDonald's

In a dynamic business environment, managers are constantly making decisions, requiring marketers to analyze data and quickly develop appropriate response strategies. This is to better prepare us for the next generation of business leaders. Critical thinking skills are essential to assess the situation, identify key problems, analyze and make decisions.

McDonald's is the world's largest fast food retailer, with more than 30,000 restaurants in more than 100 countries. More than 50 million people eat McDonald's food every day. Popular McDonald's dishes are Big Mac, Chicken Mc-Nuggets, Egg McMuffin, all of which are not healthy food for customers but are popular because they are easy to prepare, known as fast food. As a result, fast food leaders need to think of a way to add healthier items, like more fruits and vegetables.