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Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
Mc Donalds
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Mc Donalds

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Mc Donalds Operation Management

Mc Donalds Operation Management

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  • Quality – as per the standards set by Mc Donalds. Service – Fast Cleanliness – Environmental factors should also be considered. Value – Value added service
  • We live where we work and we care where we live – Director Mcd Operations EDF has expertise in waste management First of its kind collaboration of private company with an environment organization … risky tie up but turned out to be very successful … work beyond waste managemetn EDF – founded in 1967 to stop spraying spread of DDT , by 1990 one of most respected organization & 18mn revenues -------- no charge from McD
  • EDF given access to corporate information & company stores Comprehensive – covered all materials & all aspects of company operations Incremental – no single solutions but array of solutions 42 new features – reusalbe shipping containers , packaging changes , new & expanded recycle efforts , retraining employees
  • Perceived to be environment daemon because of serving in disposable containers 80% BTC – so required involving suppliers and flexibility to franchises Task Force evaluated effects on 4 parties Customers, Suppliers , Franchisees & Environment e.g. Shipping pallets were used earlier on average 1.8 times now used more than 30-40 times --- reduce cost and waste
  • Bags - , used unbleached material so brown in color Boxes - –1 of the 2 largest waste component ………… 34% of on premise waste, 300-400 boxes/week in every restaurant. Boxes – small supplier approached with a box having 21% old newsprint , with consultant they achieved 35% target Savings of 250-600 dollars in garbage collections 350 stores build every year and 1000 remodeled over 500 suppliers already registered to participate
  • Reduced volume of waste by 90% in packaging 1 st – food warm , 2 nd – food tasty , 3 rd – easy to handle , 4 th – meet standard of appearance 3 layered wrap – inside tissue , polyethylene in the middle , outer sheet of paper Reduce waste – advantage Volume of boxes in which layered was wrapped reduced when compared to clamshell
  • Less volume of boxes in which layered was wrapped reduced when compared to clamshell
  • Transcript

    • 1. McDonald’s Corporation- Operation Management
    • 2. Contents <ul><li>Mc Donald’s history </li></ul><ul><li>Competitors </li></ul><ul><li>Operations: </li></ul><ul><li>Supplier side </li></ul><ul><li>Customer side </li></ul><ul><li>Environmental Issue </li></ul><ul><li>Franchisees </li></ul><ul><li>Product innovations </li></ul>
    • 3. History <ul><li>1940 First McDonald’s </li></ul><ul><li>1952 Attempts at franchising </li></ul><ul><li>1954 Milk Shake Machine </li></ul><ul><li>1955 prototype opens in Des Plaines, IL </li></ul><ul><li>1956 14 McDonald’s </li></ul><ul><li>1961 McDonald brothers sell rights </li></ul><ul><li>1965 McDonald’s go public </li></ul><ul><li>1968 Introduction of Big Mac and shift to Network Television </li></ul><ul><li>1970 1600 restaurants </li></ul><ul><li>1980 6000 McDonald’s Restaurants </li></ul><ul><li>1990 record sales </li></ul>
    • 4. History Continued <ul><li>1994 Kuwait City, Kuwait </li></ul><ul><li>2002 Forty seven years after </li></ul><ul><ul><li>30,000 locations </li></ul></ul><ul><ul><li>2000 new restaurants </li></ul></ul><ul><ul><li>World Wide Web </li></ul></ul><ul><ul><li>McDonald’s a recognized Brand Name </li></ul></ul>
    • 5. Competition - Rivals <ul><li>Customer Service </li></ul><ul><ul><li>McDonald’s is currently ranked last amongst its top competitors in the FFHR subsector. </li></ul></ul><ul><ul><ul><li>#1 – Burger King </li></ul></ul></ul><ul><ul><ul><li>#2 – Wendy’s </li></ul></ul></ul><ul><ul><ul><li>#3 – McDonald’s </li></ul></ul></ul><ul><ul><li>- Three competitors hold 73% of the FFHR market </li></ul></ul>
    • 6. Competition - Rivals <ul><li>Burger King – 14% </li></ul><ul><ul><li>Wendy’s – 13% </li></ul></ul><ul><li>Other strong competitors </li></ul><ul><ul><li>Sonic – 6% </li></ul></ul><ul><ul><li>Jack in the Box – 4% </li></ul></ul><ul><ul><li>Hardee’s – 3% </li></ul></ul><ul><ul><li>White Castle – 1% </li></ul></ul>
    • 7. Operations: Supplier Side “ You have got to be deaf, dumb & ignorant to loose Mc Donald’s business once you have it”
    • 8. Supplier Side Contd..
    • 9. Customer Orientation
    • 10. Franchisees <ul><li>More than 30,000 resturants in more than 119 countries </li></ul><ul><li>They want to be their own boss </li></ul><ul><li>Selling a well established, high quality product </li></ul><ul><li>Excellent training </li></ul><ul><li>Continuous support </li></ul><ul><li>Benefit from national marketing carried out by </li></ul><ul><li>McDonald’s </li></ul>
    • 11. McDonald & Environment <ul><li>Tie up with Environmental Defense Fund (EDF) </li></ul><ul><li>EDF </li></ul><ul><ul><ul><li>Assess McDonald's solid waste stream </li></ul></ul></ul><ul><ul><ul><li>Suggest ways to improve it </li></ul></ul></ul><ul><li>EDF - founded in 1967 to stop spraying spread of DDT </li></ul>
    • 12. Waste Reduction <ul><li>Task Force - </li></ul><ul><ul><li>4 sr. Managers(McD) + 2 scientists + Economist(EDF) </li></ul></ul><ul><li>Action Plan </li></ul><ul><ul><ul><li>Comprehensive </li></ul></ul></ul><ul><ul><ul><li>Incremental Solutions </li></ul></ul></ul><ul><ul><ul><li>Environmental Action – Ongoing feature </li></ul></ul></ul><ul><li>Suggested – 42 new features around 3R’s </li></ul><ul><ul><li>Reduction Reuse and Recycle </li></ul></ul><ul><li>Initiatives would cut waste at 8500 US restaurants by 80% </li></ul>
    • 13. Waste Reduction <ul><li>1 McDonald generated .12pounds waste per customer , 238 pounds on premise waste per day </li></ul><ul><ul><li>OTC waste 21% , BTC waste -79% </li></ul></ul><ul><li>Stressed on reducing waste during the entire lifecycle – Acquisition , Manufacturing & distribution </li></ul>
    • 14. Lifecycle Assessment
    • 15. Initiatives <ul><li>Brown Bags – 100% recyclable </li></ul><ul><li>Corrugated Boxes - 35% recyclable mandate </li></ul><ul><li>McRecycle USA – Before EDF , spend $100mn on using recycle products </li></ul>
    • 16. Sandwich Packaging <ul><li>Abandon polystyrene clamshell packaging </li></ul><ul><li>New Packaging – 3 areas </li></ul><ul><ul><ul><li>Availability , Functionality & Cost </li></ul></ul></ul><ul><li>Perform in 4 areas – </li></ul><ul><ul><ul><li>1 st – food warm , 2 nd – food tasty , 3 rd – easy to handle , 4 th – meet standard of appearance </li></ul></ul></ul><ul><li>3 layer wrapped </li></ul><ul><li>Affected – 5 suppliers </li></ul>
    • 17. Layered wrapping <ul><li>Reduce waste </li></ul><ul><ul><ul><li>Less volume of boxes </li></ul></ul></ul><ul><ul><ul><li>Less industrial pollution </li></ul></ul></ul><ul><ul><ul><li>Layered wrapping lower in volume so less weight disposable </li></ul></ul></ul>
    • 18.  

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