All of the above discussion explains that the operations and they are the key operations in the MacDonald’s on which they run their daily base activities now if we correlate the above factors and link them with the process planning we will drive that
1) A process, which is a group of related tasks with specified inputs and out, puts
Here that is the three major operations, which I have discussed above in detail (Front, Back, and middle operations)
2) A process design is what tasks need to be done and how they are coordinated among the functions and people and the organizations
Here the process design is the daily tasks the order of the works to be executed the promotions of the day or the new product introduction is equally divides on the daily basis because now a days the competition is heading very fast and at a great pace so on daily or weekly basis the deals comes in and they will introduce the product meals with different ways.
3) Process Strategy is the one on which the organisation overall approach for the physically producing goods or the services
Here the point of great interest is that the MacDonald’s is giving a quality service which is normally intangible but it has filled out the colours of the tangibility as the customers see the quality services by there presence in the MacDonald’s.
Recommendations for kfc for processes and problem
A quality circle is one of the important tool as it will helped out many organisations problems moreover the chances of gaining the profits outline targets will also gets enhanced it is one of the important quality upgrade modules there is also one another tool which is QITs quality improvement teams but it only depends and focus on business processes rather than separate company functions but it has no relation with the other members of the organisations it is not recommended because in every business and organisations to be successful and smooth operations the part of the members and all members need to be involved in so that they will understand the current organisation problems and solve them according to their views and suggest what they want to in fact this is important because if you will give importance to every member of the team and solve the problems by sitting together it’s a good way of solving problems and the end result will be a smooth and non-problematic way of achieving the organisation goals
QUALITY CIRCLES & QITS
Problems
Identification
Training group processes, problem analysis
Organisation 8-10 members of same area
Presentation implementation monitoring
Solution problem results
Problem analysis
The cost implications for the KFC it impact&
Suggestive budget evaluation method for KFC:
PROCESS FLOW CHART
Step
product
Process
Department
Distance
Time
Cost implications/
Customer lost (new)
Budgeted analysis approximately
In a whole month
Waste food % per day unplanned food prepared&lost
1
Zinger Chicken burger
kitchen
15meters
3min
£4. 79
£ 718. 5 lost in lunch time +£718. 5 in dinner time
25% in a whole day
2
Zinger Chicken burger
kitchen
10meters
2min
——-
——–
———
3
Zinger
Chicken burger
kitchen
10meters
3min(wait
for meal to cooked)
£4. 79
———–
———
4
zinger
Chicken burger
kitchen
10meters
1min to be inspected by RGM, Team leader
———
———
———–
Total
45meters
9min
£9. 58 lost in 9 min from other customers orders
£1437
£350
A total loss of £1787 is the current loss
A process flow chart is also one of the important tool to set standards for the quality improvement it shows all the possible operative activities as shown in the above diagram that there like to timely manage and organised things in a very precise manner the first step shows the operations which involved the till operations the making of burgers and all sandwiches and third is the kitchen operations
To improved in operations lead to the next transportation improvement which of course also indicates time factor once the food materials arrived there is a step of inspection which is also a important phase where all the food is doubled checked and store into the freezers and than comes the if there is any delays and if what are the methods to avoid and overcome to improve the process of operations and finally the place where the food is to keep and store into under -18c for its quality reasons. now in the above scenario the it is highly recommended that there must be some quality mentor like six sigma black which I have discussed below as well the daily cost of losing customers is around 5-6 an average food value £4. 79 is missing and order is not going through well this will leads to the busy and peak hours in lunch and dinner time sales and an a total of £1437 has been losing on daily basis moreover the cost of wastage is also very high its around £350 we can save these costs by applying the the six sigma quality tool and also by the quality circles , a fish borne analysis also explains the reason for the delay in the order processes from where we can improve the order delay processes .
FISH BORNE DAIGRAM:
Equipment performance personnel support and flaws
Filters of machines got damaged UN availability of the servers
Any electrical cause happened non-cooperative attitude of the servers
Other over oil pours into the machines UN planned day off leaves
An unforeseen machine is not cooking properly not planned for immediate back up
Delay in due to temperature dropping in complete understanding of the food materials menu items
Reaching at sanitizer has stopped working personnel joyously
The outlet ready food reserve oven has non-provision of sufficient tills to work
Shipment late stopped working
Delayed in order serving
Food stock materials procedures improvement /delay
Major and hit food items deliver late delayed checks in procedures
Non-and UN precise stock taking non availability of six sigma mentor
Un justified stock re order levels front ill operations not explained in detail
Late food service lack of training
Supplier not provided with the updated schedule unfamilirization with the iso , quality and organization process
Control chart and scatter diagram:
A chart with the statistical upper and lower limit if the process
Stays between these limits over time it is in control
UCL
LCL
…
.. … …. .
.. . . . ..
. . . . . .. . . . .
. . .
. . . .
. . . . . . . . .
. . . . . . . .
TIME COST
A graph showing the relationship between two variables in a process identifies a patteren that may cause a quality problem. over the two main variables are time and cost as the time goes up the cost also goes upward and scatter misplacement and creates a disturbance in the quality.
SIX SIGMA:
Breakthrough strategy-DMAIC
Define measure analyze improve control
Basically the above mentioned all tools are use s for the quality improvement these processes are meant for the improvement for the operations and quality services the scatter diagram the control chart the process flow chart and the six sigma they are basically focussed on the out comes of the product and to ensure that the quality stays with the organisation a six sigma mentor is there to define measure analyze improve and to control any of the problems causing or appearing in any organization and he is the who handles that all matters timely.
KFC STRATEGIC FIT:
Here we are talking about the KFC strategic fit and its key processes operations and system in the design and the delivery of its product and portfolio well processes at the same service facility can have different competitive priorities processes for the KFC walk in customers must be more personnel than for its derive through customers, and need more personnel attention at the counter by contrast drive through customers who want even faster delivery speed and an efficient transactions are likely to be less concerned about getting personnel attention.
FRONT SERVERS OPERATIONS & SERVING CUSTOMERS
2. BURGER MANUFACTURING OPERATIONS
3. KITCHEN PREPARTIONS
These operations are currently operating in the KFC, which I have already discussed above one more thing I would like to add here and that is
SERVICE DESIGN PROCESS DESIGN KFC
Service concept
Its targeted customers service package service specifications
Walk in and derive through mixture of different physical items performance contribution overall
KFC believe in the waiting line physiology design specifications
Delivery specifications
Tools for service design as used by KFC
Service blue printing :
Line of influence has been observed
Line of interaction between customers and suppliers relationship
Line of visibility
Line of support
Service escapes
The value chain
By Michal Poreters.
MARGIN
Space and function at the ambient conditions
KFC outlets
Signs symbols ad artefacts has a strong effect on the product or service delivearance .
An important element of waiting line is important to discuss here like in any KFC when you walk in and you will see a long queue and you are standing in that queue they have put different pictures around the wall and the different menu in different colour combination will be seen there they have a huge variety of food items on their menu and it took a long time to read it all normally when u start reading those menus time flies like horse and by that time when you are about to finish you will find your self at the till moreover in many different KFC will come across that they have put some magazines and the reading stuff most of the KFC are equipped with large size of led TVs and at different angles so that the customers wound get bored and the time will pass easily for him this also one of the waiting line techniques . Moreover the packing design of the food it is also very important and it carries a huge weight age because it’s a chichi effect when customer see the beautiful packing of wrappers and it is beautifully packed it has add value in the product because now a days are of competition . The out come the crispy paper attached in the burgers and sandwiches the crystal packing of the cups the v-flow of the fries packing it add values in the strategic fit not only but also enhance the factors of sales and revenues as well . in the KFC the processes operations the customer involvement is a key element that means that when a customer walk in the contact is high , customers are more likely to be a part of the process the customer feels that the product is purely created for him and its true.
High customer contact process whiz is going in KFC it derives out
More divergence more flexible flows
More customers’ involvement
More resource flexibility.
High low
Less divergence more line flows
Less customer involvement
Less resource flexibility
(Service design and delivery)
Make an extra ordinary special effect by design
Of the product.
well KFC says our food is UNIQUE due to
Special recipe!!
Within 2 min serve the
Customers as he walks
In the kfc.
A time line of 25-30 min is set up for the defined
Distance for the delivery if order was for delivery
KFC operational management strategies
RECOMMENDATIONS AND CURRENT STRATEGY DISCUSSION:
KFC operates a rolling strategic plan that looks ahead over a five-year period and is updated every year. The five-year plan is an example of ‘ top down’ planning – it sets targets and the direction for the company’s business units. At the same time, the business units contribute to the planning process from the bottom-up through their annual business plans.
As KFC is an employee-owned company, employees help to decide what areas they would like the business to focus on. This might mean the business takes on projects that do not provide a return on investment in the short term, but which help to position the business in the market in the longer term. For example, projects in China are likely to show bigger rewards as its economy grows.
The five-year plan covers all areas of importance to the business. These include financial growth, markets, services, customers, partners, sustainability and staff development. For each of these areas MacDonald has specific business objectives.
Adding 800-900 restaurants annually
Using new menu items, low price specials, Extra Value Meals to promote frequent customer visit Being highly selective in granting franchises Choosing sites convenient to customer Focusing on limited product line & consistent quality Careful attention to store efficient Extensive advertising & use of Mc prefix Hiring courteous personnel; paying an equitable wage; & providing good training.
Strategy Making is entrepreneurial
Risk-taking & venturesome ness Innovation and business creativity Keen eye for spotting market opportunities.
Choosing among alternatives
Strategy-Making challenge is to keep strategic Fresh , Timely Responsive to changing conditions Opportunistic.
To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers. Current strategy involves Product development Increase variety on menu
Introduce desert menu Introduce buffet to restaurants Introduction on the Neighbourhood
Menu items target Europe African Americans in major cities with thefollowingitemsGreens Macaroni and cheese Peach cobbler Red beans increase its out door operations Shopping mall food courts Universities Airports Stadium.
KFC BELIEVD IN INCREASING PROFITABILITY AS:
Reduced overhead costs Increased efficiencies Improved customer service Cleaner restaurants Faster and friendlier service Continued high quality products Resolve franchise problems in the United States Implied Objectives Expansion of international operations to provide the following Increased percentage of overall sales growth
Increased percentage of profit growth Increased expansion of franchises into Mexico Expansion of franchise operation beyond Central America Continued promotion of healthier image through removal of the word “ fried” from the name
Improve menu selection of rotisserie Organizational Structure.
CORPORATE STRATEGY
COMPETITIVE PRIORITIES
NEW SERVICE
COMPETITIVE CAPABILITIES
DECISIONS
kfcis following corporate strategy and global strategy in my recommendation KFC is following the right track there are number of factors which could effect the organisations over all out flow and operations in numerous ways. First of all the factors which lead to a strategy they involve environment scanning, core compentices
, Core processes, than it will lead to a market analysis market assessment, than it will lead to competitive priorities which base on the cost, quality and time flexibility, the new service or product development is also a part of it a very important element in the end id the competitive capabilities and than it will comes to the decision level.
KFC always operates and keep that thing a head five year planning programme that it has to covered a certain or targeted market area in a specified time for this reason he needs to analyze and spot the places before the execution of its operation the environment planning is the best example of it secondly the core competencies element involved the four major sub elements which the KFC also emphasis on them they are the out standing and skilled work force for the conduction of its operations easy and smooth , in addition to this KFC believe in the facility factor that every thing is reachable in no due time like offices stores and plants it’s a very competitive advantage as well because new one needs a long lead time to build that , also the market know how an the financial know how is the key factor for very organisation and also for KFC as because it can easily attract the capital from the market sales, stocks food items and royalty and franchise and further distribute further to make money out of it easily its also a competitive advantage for the KFC a good software and data entry system is also a very competitive advantage for any organisation it not only reduce and cuts expenses but also enable KFC to communicate in a very faster manner .
From the point of global strategies the KFC also believe in the strategic alliance and locating abroad because of the today fast era every organisation will keep theses things under strong consideration of there strategies models and processes. As KFC is a global brand and to some places in the worlds it is owned by some other food companies which own KFC there the KFC has adopted the cultural things rather to implement the traditional food tastes. Where there is hard for the KFC to open a market and it wants to create a market over there it tries to create a strategic alliance with some other group or the other big company for food restaurants and when gradually it has created a market over there it will comes up with its own label and brand name. On the other hand some organisation believe in the strategic alliance modes as they need to enter and capture the foreign market there are many reasons on which basis some time the organisation cant able to allow a free and easy access into the other countries so they adopt & approach of the above stated strategies same case with the KFC that’s why KFC always capture those market where it will get the competitive advantage easily without any hindrance and problem it will gain the competitive advantage over the labour , food materials stock and local supplier relationship . One of the most key and successfully formulating driven operation strategy for the KFC is to understand what the customer wants and how to provide it . This is overall depend upon the a market analysis first divides the organisation customers into the market segments and then identifies the needs of each segment . though strategy will always derive for the best possible outcomes and sales revenue purposes and to gain maximum competitive advantage these two factors for KFC are very important as well one for the market segmentation and the second is the needs assessment which is basically depends upon the service or product needs, delivery system needs volume needs and other needs once this strategy has been made the organisation can incorporate the need of customer into the design of the service or product and supply chain that must be deliver it
A FINAL OVERVIEW AND COMMENTS & RECOMMENDATIONS IN DETAILS:
I my discussion above regarding the KFC operation I clearly mentions all the operations as it runs on daily basis it involves the till cash operations the making of burgers and sandwiches and the kitchen operations I have raised issues above regarding the kitchen operations and the problems facing the KFC due to that basically it’s a important part of the operations as well but there is a lot of the problems are associated with it and due to slow serving it has not only lost many customers but also lost the sales graph on daily basis the pressures which build up because of the unusual and unsystematic describe processes I have recommended few quality tools and recommendations which include fishbone, flow charts. Control charts, and as quality tool which is a six sigma black mentor which understands the organisational operations in sequence I have also recommend that there should be a quality mentor needed because to improve the quality and the food which wastes and expires at least it will reduce and no further waste will happen because it will directly proportional to the profits and it will cut down the income for the stake holders these all above tools and models helps in the better formation of the company operations and it will run more smoothly and profitably apart from this the other cleaning materials used in the KFC they got wasted as there quantity has mentioned regarding usage but it been wasted also because of the negligence and not proper frame works in short KFC as organisation having different operations in it must give more attention towards its kitchen operations because in a restaurants fast food means the service and its service attributes which will derive time cost and quality at the same time because theses three factors are the backbone for every organisation due to the fast competition now a days in my strategic theories it is believed that KFC needs JIT concept which is also a very important element of the operations because every
Successful business and specially in food restaurants they keep there inventories level up to the mark for efficient out come and quality standards more over the control chart, is also a very important role in the operations assessment areas in fact it alarms for every organisation as the processes are not going through in a right way that what happened actually in reality with the KFC as the process of the kitchen operations are not going through properly and because of that fact KFC not only suffer from daily lose of customers expected sales but also it has some problems in the expired food handling which will also lead to the loss which in fact effects on the turn over of the sales and the stake holders interest and profit margins. These problems are reality base and theses are the problems which the KFC are facing now a days although now a days competition has set in but these are the internal organisational problems which might over come the competitive advantage element after a deep research an analysis I have recommended theses models and tools for the efficient out put in service department and kitchen operations.
