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Final Project
Subject Total Quality Management

Section BBA # 8

Dated 7/7/2020

Semester 8th

Summited Prof. Rahat Zaman

to

Student Name Registration Number

Bilal Hussain S2F16BBAMOOO1
Abu-Bakar Fayyaz S2F16BBAMOO13
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ACKNOWLEGEMENT

I would like to express my special thanks of gratitude to my

teacher “Prof. Rahat Zaman” who gave us the golden
opportunity to do this wonderful project on the topic Total Quality
Management Implantation In Company, which also helped us in
doing a lot of Research and we came to know about so many new
things we are really thankful to him.
Secondly, we also like to thank our parents and friends who helped
us a lot in finalizing this project within the limited time frame.
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TABLE OF CONTENTS
INTRODUCTION AND HISTORY OF COMPANY………....6
Mythology………………………………………………………………………….….6
McDonald's Pakistan……………………………………………………………...…...6
History………………………………………………………………………………....7
Mission and Vision……………………………………………………………………9
Core Values……………………………………………………………………………9
Quality Statement of Company………………………………………………………10
SWOT Analysis………………………………………………………...……………12
Major Competitor………………………………………………………………….…14

THE BASIC OPERATIONS MANAGEMENT

STRATEGIES…………………………….……………….………….………16
Design of Goods and Services…………………………………………………….…16
Managing Quality……………………………………………………………………17
Location Strategy………………………………………………………………….…17
Layout…………………………………………………………………………….….18
Human Resource…………………………………………………………….…..…...18
Supply Chain Management………………………………………………….……….19
Maintenance………………...…………………………………………………...…...19

SOME FEATURES OF QUALITY MANAGEMENT

STRATEGIES……..…………………………………………………….……19
Total Quality Management in McDonalds………………………………….……….19
Product Quality…………………………………………………………….………...19
McDonalds ISO Certification………………………………………….…………….20
Major Award and Achievement by McDonalds In Pakistan………….……………..22
TQM Tools and Techniques Adopt by McDonalds…………………………………22
Training………………………………………………………………………………25
Benchmarking……………………………………………………………………….25
Continuous Improvement…………………………………………………………….26
Customer Satisfaction……………………...………………….……………………..26
Suggestions……………………………………...…………………………………...27
Reference………………………………………………………………………...27
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Executive Summary

The purpose of this project to know that how Operation Management Strategies & Total
Quality Management Strategies are made, implemented and how they impact on the
organization. For this purpose, we selected McDonalds to obtain necessary data and its
analysis.

With the completion of this project we have learned that how Operations Management
Strategies & TQM Strategies are implementing and its impacts on the organization.

Operations Management Strategies plays very important role in achieving an

organizational goal. By using these strategies an organization controls and maintains all
its operations. So, these should make after a comprehensive marketing analysis,
according to capabilities and resources of an organization.
Total Quality Management enables an organization to have improved products, high and
competitive product environment and customer satisfaction
Operations Management Strategies in McDonalds are being made by top management.
These strategies are implements in all branches under instructions of top management,
which are distributed to all branches in written form. So, there are operations mangers in
all branches that control all operational activities. These strategies impact positively and
helps to achieve the goals.
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Introduction to Project

The purpose of this project is to know how the Operation Management Strategies and
Quality Management Strategies occur in Fast-food sector, especially in McDonalds, and
how these strategies are implemented.

1. INTRODUCTION AND HISTORY OF COMPANY

 Mythology
 McDonald's Pakistan
 History
 Mission and Vision
 Core Values
 Quality Statement of Company
 SWOT Analysis
 Major Competitor

2. THE BASIC OPERATIONS MANAGEMENT

STRATEGIES
 Design of Goods and Services
 Managing Quality
 Location Strategy
 Layout
 Human Resource
 Supply Chain Management
 Maintenance

3. SOME FEATURES OF QUALITY MANAGEMENT

STRATEGIES
 Total Quality Management in McDonalds
 Product Quality
 McDonalds ISO Certification
 Major Award and Achievement by McDonalds In Pakistan
 TQM Tools and Techniques Adopt by McDonalds
 Training
 Benchmarking
 Continuous Improvement
 Customer Satisfaction:
 Suggestions
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INTRODUCTION AND HISTORY OF COMPANY

1. Methodology:
In this project we studied all the above-mentioned operational strategies and tried to get
the theme of these strategies. Also got some information from internet and then by
analyzing the base of these strategies we implemented our knowledge in practical
working environment of the organization i.e. McDonalds. From day one, McDonald’s
believed in forging new opportunities. The same holds true today, and it’s this kind of
philosophy that will launch your career. For starters, Ray Kroc, our founder and
inspiration, parlayed exclusive distribution rights of an innovative milkshake maker into
the first-ever franchise in Des Plaines, Illinois.
Later, Ronald McDonald proved another huge idea from a set of wonderful folks.
Introduced in his first TV appearance, Ronald became recognized as “the smile known
around the world.” Today, he is as recognized as Santa Claus.
In yet another example of empowered big-thinking, franchisee Jim Delligatti invented the
Big Mac and changed hamburgers forever. As you can see, broad vision, big ideas, and a
family of great people fuel our success. It’s true, new employees today are our leaders
tomorrow.
McDonald's a Global Phenomenon
Formed in 1954, McDonald's brand is the leading global foodservice retailer with more
than 30,000 local restaurants serving nearly 50 million people in more than 120 countries
each day. The rich history began with founder Ray Kroc's strong foundation. McDonald's
vision and commitment of our talented executives is to keep the shine on McDonald's
arches for years to come.

2. McDonalds In Pakistan:

Aiming to be the world's best quick service restaurant experience, McDonald's started its
operations in Pakistan in September 1998 and is a leading fast food service retailer for its
valued customers. With a strong belief in the phrase when it's green it's growing.
McDonald's Pakistan is growing with the focus to provide friendly and quick service
experience to our customers.
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Today millions of Pakistanis place their trust in McDonald’s every day to provide them
with food of a very high standard as well as good service. In the past five years, the
response to McDonalds coming to Pakistan has been overwhelming. Today Lakson
Group Companies has taken over McDonalds Corporation, USA and a local partner
making it a 100% owned and operated Pakistani company. McDonalds located in
Pakistan are currently employing about 3,000 Pakistanis and each store is managed by
Pakistani managers. They have also contributed in other ways than food service.
McDonalds has investment of over Rs. 30 billion in the country and payment of taxes and
duties amounting to more than Rs 10 billion Since McDonalds is doing so well in
Pakistan they will continue to grow and add more stores in more cities in the future.

3. History Of McDonalds:
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants,
serving more than 58 million customers daily. The business began in 1940, with a
restaurant opened by brothers Richard and Maurice McDonald in San Bernardino,
California. Their introduction of the "Speedee Service System" in 1948 established the
principles of the modern fast-food restaurant.

The original staff of the McDonald's brothers hamburger restaurant.

The present McDonald's corporation dates its founding to the opening of a franchised
restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. Kroc later purchased
the McDonald brothers' equity in the company and led its worldwide expansion.
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Ray Kroc took over a small scale McD's and turned it into the global phenomenon it
is today.

The first McDonald's restaurant opened in Des Plaines Illinois on April 15, 1955.  Their
first day sales were $366.12.  By 1965 there would be over 700 McD's throughout the
United States.

The first McDonald's, Des Plaines Illinois, 1955.

In 1967 McDonald's went international with restaurant openings in Canada and Puerto
Rico.   

McDonald's today:
Number of Global Restaurants:
More than 32,000.
Number of Countries:
117.
Number of worldwide employees:
1.7 million.
Percentage of franchised restaurants around the world:
More than 75%.
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With the expansion of McDonald's into many international markets, the company has
become a symbol of globalization and the spread of the 'American way' of life. Its
prominence has also made it a frequent topic of public debates about obesity, corporate
ethics and consumer responsibility.

The Team
To realize the McDonald's service vision, we believe in strengthening our team and
ensure to deliver the right skills and knowledge to the right person for getting the right
job. Our strength for making our strong team players to shine under the Golden Arches
lies in the People Promises, we focus to deliver:

McDonald's 5 People Promises

1. Resources Recognition
2. Values Leadership Behaviors
3. Competitive Pay Benefits
4. Learning Development Personal Growth
5. Resources to get the Job Done

4. Mission and Vision Statement:

McDonald's mission
McDonald's mission is to be our customers' favorite place and way to eat with inspired
people who delight each customer with unmatched quality, service, cleanliness and value
every time ...we invite you to be the part of this winning team and give yourself an
opportunity to grow with the family of people striving to create smiles on the faces of
millions of people every day.
McDonald's vision
To move with velocity to drive profitable growth and become an even better McDonald’s
serving more customers delicious food each day around the world.

5. McDonalds Core Values

McDonald’s mission is evaluated 2.2 points out of 4.5, indicating an average level. The
statement lacks following components: products and services, technology, concern for
public image and concern for employees. McDonald’s mission doesn’t mention any of
the values used in our evaluation framework, but provides their values separately.

McDonald’s core values that guide company’s actions and decisions are:

 We place the customer experience at the core of all we do

 We are committed to our people
 We believe in the McDonald’s System
 We operate our business ethically
 We give back to our communities
 We grow our business profitably
 We strive continually to improve
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The statement is customer-oriented, which means that the company is focused on

satisfying customer needs, which is exactly what McDonald’s stress in its mission.
Nonetheless, McDonald’s statement doesn’t fully reveal company’s ‘reason for being’
and poorly communicates primary business information to its stakeholders.

6. Quality Statement of Company

At McDonald’s, we take great care to ensure that what we serve every day is safe, great
quality and produced in a responsible way. That means we use 100% real beef patties
seasoned with just a pinch of salt and pepper. It means our Egg McMuffin® is made with
a freshly cracked egg. And, in the U.S., our Filet-O-Fish® sandwich made with 100%
whitefish sourced from sustainably managed fisheries. It means we use real buttermilk in
our Buttermilk Crispy Chicken and our Chicken McNuggets® are made with white meat
chicken. Simply put, it means real, quality ingredients and always evolving what matters
to you.

Pride in Preparation
Every day, our kitchens work to prepare your food just the way you like it. That’s why
we introduced fresh beef in all Quarter Pounder* burgers, cooked when you order, then
served hot and deliciously juicy. We’ve also begun toasting our buns for burgers and
sandwiches 5 seconds longer for a little extra crisp.

*Weight before cooking 4 oz. At participating McDonald's. Fresh Beef available at most
restaurants in contiguous US. Not available in Alaska, Hawaii, and US Territories.
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Milk From Cows not Treated with rbST

The milk we use in our low-fat white Milk Jugs and Yoplait® GO-GURT® Low Fat
Strawberry Yogurt comes from cows that are not treated with rbST, an artificial growth
hormone.
No significant difference has been shown between milk derived from rbST-treated and
non-rbST-treated cows.

Making Nutrition Information Accessible

It’s been a longstanding practice to provide you with relevant nutrition information so
you can make informed food choices. We’re continuing to develop ways to provide this
information to you such as our Nutrition Calculator and our Mobile App. We work to
ensure that nutrition information for our menu items is available and accessible through
all owned websites and mobile apps used for ordering.
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7. Swot Analysis
On the basis of environmental analysis of McDonald's, the structural analysis of fast food
industry, and the assessment of internal resources of the company, following strengths,
weaknesses, opportunities and threats are there for McDonald's:

STRENGTHS
McDonald’s in Pakistan is inherited by a lot of strengths which includes:
 A strong image well reputes organization.
 No compromise on quality of products.
 Self-service criteria save a lot of cost.
 Different incentives and packages for children.
 Quality raw material (ingredients) in all the products.
 McDonald's strong financial position, growing cash flow, solid international
presence makes McDonald's one of the consumer products with a high growth
rate.
 Working environment in McDonald's is very friendly and all the employees of the
company are treated as members of McDonald's family.
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 McDonald's has menu, which has more breadth and depth than any other fast food
franchisee in Pakistan.
 Well documented fair and strict criteria for recruitment of employees.
 Updated training programs of employees.
 Flexible workforce, which can work on more than one job at a time.
 Skied and motivated workforce.
 Sufficient funds to invest in marketing efforts.
 Excellent relations between management employees.
 Secured jobs.
 Good working conditions.
 Career opportunities for employees.
 Care for the thoughts and moods of customers.
 Celebrations of main events e.g. Independence Day etc.

WEAKNESSES
Along with a lot of strengths there are some weaknesses also by which McDonald’s
suffers:
 Management of McDonald’s does not consider other fast-food chains or outlets in
Lahore as its competitor e.g. KFC Pizza Hut & local burger market which are
their competitors in real sense.
 With the passage of time the expenses of McDonald’s are increasing. The reason
is the big part of fixed costs e.g. fixed overheads & fixed salaries of all the
employees, which increases directly with the decrease in “production.”
 Dominant class in Pakistan is middle- income class for which it is difficult to
afford the menu – items of McDonald’s or at least middle-class cannot enjoy
McDonald’s product more frequently.
 McDonald's has product portfolio (menu) of greater width and depth; this broad
array of products allow attacks from niche players.
 Some of the products of the company are not competitively priced.
 All the raw materials are imported from different countries; this increases their
cost of production.

OPPORTUNITIES
The marvelous growth in stores outlets all over the world in the result of great
opportunities granted to McDonalds.
 McDonald’s is the single international quality- burger chain operating in Pakistan,
so it has more profit potential in Pakistan until now?
 By Increasing consciousness about low fatty foods which are being provided
McDonald's (using vegetable oil).
 Increasing disposable income in upper and upper-middle social classes of urban
areas, which are target market of McDonald's.
 By strengthening the marketing efforts, company can have more sales as
compared to existing sales.
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THREATS
McDonald’s people say that there is no threat for them and it can also be a big
threat for
them.
 Threat of new entrants is also working there because industry is growing at a
rapid speed and a lot of attraction is there for new- comers. Entry barriers are also
low in Pakistan so this threat really works for McDonald’s.
 Double digit inflation prevailing in the country, which in turn increases the cost of
 production.
 Continuous devaluation of rupee that has increased the import bill of raw
materials.
 Imposition of heavy taxes on fast food industry including Sales Tax and
Entertainment Tax.
 Complex rules and regulations imposed by government.

8. Major Competitor:
Potter’s Five Forces Model

Rivalry among competing firms

• There is price competition among McDonalds and its direct competitors like Kfc and
indirect competitors like Pizza Hut.

• McDonalds is engaged in an intense advertising battle with its competitors who include
both advertisement promotion and price competition.

• McDonalds is in an intense product competition with its competitors as all are striving
to introduce innovative products at any time period possible.

• Above all these, they are trying to improve their service and operations efficiency in
order to attract more customers.

• The competition is still not very intense as the industry is still in the growth stage as
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McDonalds has a upper hand in few areas whereas as its competitors has in others.

• Currently fixed costs for each competitor in the industry is high which the only entry
barrier is for any new comer.

Potential entry of new competitors

• The capital requirement to enter into the middle-class segment of the industry is very
large as the industry is already penetrated by giants as McDonalds.

• In the fast food industry there is no or very less product differentiation. So new
competitors can come up with innovative products into the market which may pose a
threat to McDonalds.

• The most important factor that constitutes a barrier of any potential entry into the
market are the economies of scale that McDonalds currently have?

• There is lack of adequate distribution channels for new entrants as no new entrants
would have enough funds to either join a distribution channel or create their own whereas
McDonalds has an adequate distribution channel.

• Potential development of Substitute Products

• Threat of substitute products is always present in the industry as all the competitors of
McDonalds have more or less same products in terms of burgers and other junk food they
offer.

• But this threat is currently present only in some specific burgers and products which
have result on the prices on these products with limited differentiation.

• Burgers have the highest substitutability so there are price ceilings on this specific
product.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the fast food industry for McDonalds is very low
as there are a number of local suppliers from whom McDonalds buy few ingredients
whereas their major ingredients come from foreign suppliers.

• There are a number of foreign and local companies who would at any time be willing to
supply McDonalds the ingredients.

• Also, the fast food industry importance to the suppliers is much more as it is very
profitable and also McDonalds always has the option to switch suppliers.
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Bargaining Power of Customers

• The bargaining power of customers in the fast food industry is growing with the
availability of substitute products and the increasing number of competitors.

• There are also the small vendors and indirect competitors in the local fast food industry
which increase the bargaining power of customers?

• McDonalds is also facing the same problem of relatively high bargaining power of
customers for which they have to rely on aggressive marketing, lower price and products
schemes and well trained and efficient operational staff.

THE BASIC OPERATIONS MANAGEMENT

STRATEGIES

Operations Management in McDonalds

From our research we came up with the following operation management strategies being
implemented by McDonalds:
● Goods & Service Design
● Quality
● Location Selection
● Layout Design
● Human Resource
● Supply Chain Management
● Maintenance
The McDonald has the above stated strategies out of the 10 OM strategies. These are
explained as under:

1. Goods & Service Design:

The tangible goods and intangible services are provided by McDonalds and the
homogeneity is maintained globally. The goods and services are provided on in a package
that’s why the company lies in 50% in goods production side and 50% in service
providers. In Pakistan the same level of services is offered by McDonalds, compared to
international level.
Strategies
a) Advertisement: McDonalds implements this strategy by making aware
people about their products and services through advertising on TV,
newspapers, brochure.
b) Customers Relationship: The personals of customer relationship department
convince the people and customers about services.

Results
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Inside the McDonalds:

a) Achieving Objectives: By implementing this strategy McDonalds is
achieving its objectives, i.e. it’s earns profit, customers are satisfying, and the
services offered to customers sharing in revenue growth of the country. So it
helps to make further plans, strategies, making strengths, expansion of
franchises etc.
b) Business Development: As customers become attractive therefore
McDonalds opens new branches. So it helps in expansion of business.
Outside the Organization:
Improving social life: These strategies are improving quality of life as well as the social
and environmental awareness in general public.

2. Managing Quality:
The company really maintains its product quality. A lot of expenditure is made in the
quality maintenance and improvement researches. McDonalds maintains the following
quality rules:
● 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.
● Serving a variety of nutritious, high-quality food products and portion sizes,
including new salad, fruit, and vegetable offerings and Happy Meal choices.
● Providing nutrition information to help customers make smart choices that
address their individual lifestyle needs.
● Informing the customers about energy balance and fun, practical ways to
incorporate physical activity into their everyday lives.
● Motivating kids to be active by engaging Ronald McDonald as ambassador
for play and activity.

● Sponsoring major sports competitions, including the Olympics and the FIFA
World Cup soccer matches.

3. Location Strategy
Generally, it has been observed that McDonald follows the different locations and outlets
according to the specific area.
Strategies
McDonalds makes and implement its location strategy in following way: -
a) Business Areas: They open their branches in business areas where they target the
corporate people and the working class to dine in and have their timeout for
breakfast and lunch.
b) Play Lands and Shopping Areas: They try to introduce their services according
to target customers, i.e. capture the customers in the amusement parks and in
markets such as the branch in Fortress Stadium, Model Town link road etc.
Results
a) Convenience: Customers feel comfort ability when a branch is in near vicinity to
their work place.
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b) Customer Gaining: Due to the good environment the company has an ability to
gain their customers to their locations.

4. Layout Design:
This strategy refers to the overall working and general environment offered by
McDonalds. It includes the personnel level, service and product layout, interiors and
exteriors etc.
Strategies
a) Exterior: McDonalds sets its premises in proper manner to handle any number of
customers easily. The building design is standard world wide but it may be have
some difference in size or in exterior according to the location. It enables them to
save time, satisfy their customers, comfortable environment for both employees
and customers.
b) Interior: McDonalds uses the same interior pattern as it’s used internationally. It
may vary according to the premises size.
Results
a) Brand Recognition: Homogeneity in layout design and franchise settings strikes
a clear brand image in the minds of the customers. The efficiency level of
personnel also leaves a good impression on the minds.
b) Customer Satisfaction: Through a universal image, layout design and the brand
image in the minds of customers results in customer satisfaction.

5. Human Resource:
Being partially in pure services and goods production sector, McDonalds exercises a
good strategy for its human resources e.g.
Right Person on Right Job: McDonalds allocates its human resource in different areas
according to the abilities, qualifications and experiences of employees. They appoint a
marketing expert for marketing, accountant for accounts etc.
Trainings: McDonalds provide training opportunities for its employees who need
training in a particular area. So it enables the organization to achieve its goals efficiently.
Separate Departments for Different Functions: McDonalds has different departments
for different functions. Marketing department consists of marketing experts who perform
marketing analysis and finance department consists of finance experts who arrange and
manage finance etc.
Proper Utilization of Resources: As there are many experts in different areas, so they
use all available resources and opportunities properly. They provide services to their
customers efficiently, which satisfies customers and they achieve their goals successfully.
Employee’s Job Satisfaction: McDonalds provides training opportunities to its
employees to improve their skills. So it results in enhanced employee performance and
they become more interested to work in good manner, which gives a good reputation to
the organization.
Competency: McDonalds trains it’s employees of all departments to enhance their
capabilities and to improve their skills and therefore employees provide right product to
right customers on right time. So, it enables the organization to compete in the market.
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6. Supply Chain Management:

These strategies determine what is to be made and what is to be purchased. So
McDonalds follow these strategies and have a just-in-time inventory system. Which
means that the orders are placed as the raw material comes to near finish. McDonalds
maintain no inventory levels for perishable goods.
Suppliers
The major suppliers of McDonald’s in Pakistan are as follows:
● Dawn Breads for Buns
● Choudhry Dairy Limited for dairy products
● Walls Ice Cream
● Coca-Cola Ltd. for drinks
● Packages for packing

7. Maintenance:
The overall maintenance process of McDonalds is that they emphasize on the
maintenance of the product quality, the human resources used within the organization, its
location and layout designs.
They train their employees of all department6s regarding their job, so they can handle
their customer and work as well which helps to maintain their status quotas. McDonalds
is among the companies which are partially involved in the production of goods and
services, so a proper maintenance system within the organization strengthens the
goodwill and reputation.

FEATURES OF TOTAL QUALITY MANAGEMENT

STRATEGIES

1. Total Quality Management in McDonalds

Management of an entire organization so that it excels in all aspects of products and
services that is important to the customer. In simple words we can narrate total quality
management as a continuous quality improvement process.
So, McDonalds also practice the strategy of total quality management and tries to
enhance its efficiency & affectivity level by working in different areas such as continuous
improvement, quality of goods and services, training, and customer satisfaction.

2.Product Quality
The ability of a product or service to meet customer’s needs is termed as quality.
Therefore, McDonalds works a lot in the quality improvement of its goods by improving
ingredients and nutrients of the food stuff.
Some recent nutrient’s quality improvement information is as under:
For people concerned about food allergies, we have consolidated all allergen information
into the ingredient statement for each menu item so that you have one current source of
information. Please check these listings regularly as ingredients in menu items may
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change.

Popular kid’s meal choices:

● Happy Meals
● Mighty Kids Meals

The nutrition information is derived from testing conducted in accredited laboratories,

published resources, or from information provided from McDonald’s suppliers. The
nutrition information is based on standard product formulations and serving sizes. All
nutrition information is based on average values for ingredients from McDonald’s
suppliers throughout the world. Variation in serving sizes, preparation techniques,
product testing and sources of supply, as well as regional and seasonal differences may
affect the nutrition values for each product. None of our products are certified as
vegetarian. This information is correct as of January 2007.

3.Mcdonalds ISO Certification:

Why ISO certification counts?
Increased credibility.
Manufacturers that ship their products overseas.
Company has met every requirement of the standard.
ISO certification broadens marketplace as a certified supplier to leading manufacturers.

ISO 14001
 ISO 14001 was first published in 1996 and specifies the actual requirements for
an environmental management system.
 It applies to those environmental aspects which the organization has control and
over which it can be expected to have an influence.
This standard is applicable to any organization that wishes to:
1.Implement, maintain and improve an environmental management system.
2.Ensure compliance with environmental laws and regulations.

McDonalds ISO 14001 certification

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1) In 2004, McDonald’s Poland validated all company-operated restaurants to the

internationally recognized standard ISO 14001.
2) The certification has been successfully renewed twice since 2004.
3) The certificate confirms that McDonald’s company-operated restaurants comply with
the highest standards of environmental management and legal requirements.
4) The ISO certification greatly contributed to the strengthening of McDonald’s
leadership position.

McDonalds ISO 90001 certification

McDonald Modular has certified all the operations of the company to the ISO 9001:2000
standards for Quality Management Systems as outlined by the International Organization
for Standardization.

 Certification standard is the assurance and commitment:

 Continuously monitor,
 Correct and Improve processes

4. Major Award and Achievement by McDonalds In Pakistan:

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All Pakistan Restaurant Association presented APRA Awards 2019. Pakistan’s first-ever
Customer Choice Food Award Show that took place on Monday, 9th December at
Marriott Hotel in Karachi. It was a fun, food and performance packed night where awards
were given to deserving recipients.  McDonald’s Pakistan was recognized and awarded as
the “Best Restaurant of the year” and “Delivery on time.” The brand has always put
the needs of their customers first, going above and beyond and providing the highest
quality of food and service.

McDonald’s Pakistan has recently scored yet another achievement by winning “Press on
Award” for the third year in a row. The prestigious award was presented to Asif Ghaffar,
Assistant Director Supply Chain & Quality Assurance, McDonald’s Pakistan in the recent
McDonald’s MEDC Supply Chain meeting held in Dubai.

The award was given to Supply Chain & Quality Assurance Team for showing an
outstanding performance in the areas of Compliances, Quality improvement, Food Safety
& Hygiene and Suppliers Compliance in the country.

5. TQM Tools and Techniques Adopt by McDonalds:

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. Quality Circles have emerged as a
mechanism to develop and utilize the tremendous potential of people for improvement in
product quality and productivity. 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 using proven techniques for analyzing and
solving work related problems coming in the way of achieving and sustaining excellence
leading to mutual uplift of employees as well as the organization. Circle members are
free to collect data and take surveys. It is “a way of capturing the creative and innovative
power that lies within the work force”.
The quality circle focuses on making use of people to find solution for management
problems. If workers are prepared to contribute their idea, the management must be
willing to create a congenial environment to encourage them to do so. As on the
McDonald’s team, each person plays an important role. Crew and managers work
together, constantly communicating and supporting each other in a team which are busy
and challenging but yet always strives to be cooperative and fun. 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.
The concept of quality circle based upon recognition of the value of the workers as a
human being, as someone who willingly activisms on his job, his wisdom, intelligence,
experience, attitude and feeling. It is based on the human resource management
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considered as one of the key factors in the improvement of product quality and
productivity. Three mains attributed:

 A form of participation management.

 A human resource development technique.

 A problem-solving technique.

The objectives of quality circle are multi-faced. One of the objectives is a change in
attitude. It is a continuous improvement in the quality of work life through humanization
of work. 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. For example, in mid-2006
McDonald introduced the McDonald’s Leadership Institute, a virtual learning community
of guidance and resources to support and develop employee leadership and talent. Thus,
people will get to learn additional skills. Addition, objective is development of team sprit.
Team work is much better than individualism work. With team work its help eliminate
inter departmental conflict. 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.

Six Sigma
In the mid-1980s Six Sigma was started. Motorola was started Six Sigma but popularized
in the 1990s by Allied Signal and General Electric, the approach between quality
management and Six Sigma were different than the previous. By using different quality
approach, management no need plays important role when bring external experts to teach
new workforce. By using Six Sigma also, 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.

Every companies want be profitable. If companies get their profitable they can provide
jobs and pay taxes for the community, state, and country benefits where they make their
products or provide their services. By having customer who wants your product or
service it can making profit for the companies. Each customer has their own requirements
regarding the product or service. In Six Sigma revolves around a few key concepts are,
critical to quality mean attributes most important to the customer, defect mean falling to
deliver what the customer wants, process capability mean what your process can deliver,
variation mean what the customer sees and feels, stable operations mean ensuring
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consistent, predictable processes to improve what the customer sees and feels and lastly
design for six sigma mean designing to meet customer needs and process capability.

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.
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McDonald’s management has minimized 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. For example, the first green restaurant was opened in
Sao Paulo, Brazil, in 2008, designed and built to maximize the latest technological
innovations to minimize about a natural. The technology used in restaurant are rainwater
storage tank to assist in irrigation, post-central drive through illuminated photovoltaic
power generated, and smart air conditioning, all of which contributed to a 50 percent
savings in water consumption and 14 percent in electricity for the first year of operation
restaurant.

Reduced Cycle Time

Cycle time has become a critical quality issue in today’s fast-paced world. Cycle time
refers to the steps taken to complete a company process, such as making an airline
reservation, processing an online order, or opening a retirement fund. 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.

6. Training:
In the next step of TQM, McDonalds puts it attention on its human resources. The
objective of training their human resources is to create a balance in the overall working of
employees. Thus, they try to create a connection between the quality of a product and the
ability of the employees. In McDonalds nearly every employee is given training for its
work. e.g. the cashier is trained for all the cash handling, floor manager is polished
against his degree in hotel management. And all the other staff is trained accordingly.

7. Benchmarking:
Benchmarking is a process which involves obtaining historic construction cost
information collected. This historic information provides the benchmark against which a
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customer can assess their projects value for money at a base building level with set
specifics separated out. Benchmarking also can defined as the continuous process of
measuring products, services, and practices against the toughest competitors. To
successful benchmarking are lies in analysis. Starting with companies own mission
statement, a company should honestly analyze its current procedures and determine areas
for improvement. Next, a company carefully selects competitors worthy of copying.

Reasons and benefits

Companies benchmark for many reasons. The reasons can be broad for example
increasing productivity. The reasons also can be specific for example improving an
individual design. Benchmarking is continuous improvement tool. Companies that use
benchmarking strategies achieve a cost saving of 30 to 40 percent or more. It supports the
process of budgeting, strategic planning and capital planning.

Benchmarking also can enhance learning tool. It is to overcome disbelief and enhance
learning. By hearing about another company or competitors successful processes it can
make the employees believe there’s a better way to compete.

In addition, benchmarking also work as a growth potential tool. After a period time in
industry, a company may become practiced at searching inside the company for growth.
The company would better off looking outside for growth potential.

Besides, benchmarking is a job satisfaction tool. Benchmarking have developed how to

networks to share methods, successes, and failures with each other. The process has
successfully produced a high degree of a job satisfaction. Benchmarking is a systematic
examination of a company products, services, and work processes.

8. Continuous Improvement:
The quality management strategies of McDonalds for product quality improvement and
employee training and development put the company on the road of continuous
improvement in all its functions. Continuous improvements fulfill the needs of the
customers according to their desires or requirements and also make its products more
competitive. This continuous improvement also includes some other factors like
employee empowerment, benchmarking a quality standard & maintaining just in time
inventory system etc.

9. Customer Satisfaction:
McDonalds pays a lot of attention on the satisfaction level of its customers. The
improved quality standards, well trained employees and a continuous learning desire of
McDonalds results in increased level of satisfaction of the customers. Like when the
quality is improved and the personnel attending the customers is well trained and the
overall service environment is improved then there is no room left for customer dis-
satisfaction. After the analysis of our project regarding the application of Ten OM
Decision and TQM we have concluded our report as under:
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● McDonalds is maintaining its product quality according to the international

standards
● The customization of the product and services according to the culture of
Pakistan has resulted in customer satisfaction
● McDonalds has properly covered the business areas with in cities e.g. Lahore
● McDonalds maintains a good environment in every premise.
● McDonalds has a learning environment for employee development and
customer satisfaction.

10. Suggestions:
In the end of our report we have following suggestions:
● McDonalds should revise its product prices.
● Company should work on all of its products
● There is still a lot of opportunities for McDonalds to increase number of
outlets
● McDonalds in Pakistan should follow its international trend of sponsoring
mega events e.g. Domestic Cricket Tournaments.
● To make a line of organic food in their menu and take a look what is more
popular and healthier for their customers. If it is going more popular than
usual menu food, it is more worth to make all food in organic way, even it is
more expensive. First of all, people like what is natural, and then they are
interested in the price.
● To make big advertisement companies declaring organic food pluses and
make it more popular in such way. Many people loves McDonald’s food, so
it has an authority and can show good example of necessity of organic food
in people life and compare how organic and usual McDonald’s food effect
customers’ health and all the nature about them.

References:
www.mcdonalds.com
www.mcdonalds.com.pk
www.answers.com/what_is_TQM
Bibliography
Operations Management by Jay Heizer & Barry Render 7th Edition