Quality Management Essay At McDonalds Australia.

Perspectives of Quality Management

Question:

Describe about the Quality Management.
 

In the modern competitive world, quality has assumed more importance than ever before, The aim of this exercise is to present certain aspects of quality in the organisational context using McDonalds Australia as an example. The given blogs discuss aspects such as perspectives of quality management, contemporary issues of quality management, linkage between profitability and quality along with the need for customer centric business operations. A brief theoretical overview of the above concepts has been provided along with the practical application of these concepts at McDonalds Australia. Additionally, a chosen post entry from other students in this regard has been presented and commented at. This exercise on the whole provides a unique opportunity to the students to apply the various concepts related to quality management learnt in class to the organisational setting and also contribute to peer group learning by commenting on the posts of others.  

Discussion forum 1.2 – Quality Management

My personal posting

One perspective is the judgemental perspective i.e. to be associated with excellence or superiority. Another perspective is product perspective whereby high product attributes are made available irrespective of the consumer need. Quality from user perspective tends to ensure that the wants and needs of the targeted user group is fulfilled. Quality from value perspective is when the product is not bought solely based on price but the overall value it delivers. Quality from manufacturing perspective implies that the service consistency should be high. Quality from customer perspective implies that the product satisfies the consumer needs through its features (Evans and Lindsay, 2012).

With, regards to McDonalds Australia, following notion of quality exists.

Judgemental – Traditionally low but improving through new high end menu

Product – Medium

User – Very high (customised menu)

Value – High (reasonably priced and ambience)

Manufacturing – High (Standardised quality and product norms)

Customer – High (High customer satisfaction through product and service) 

Posts from other (Martin Alexander van Helden on January 16)

1.User Perspective- The services from VHH Accountancy is based on the needs for small and medium businesses. But to be of use to these type of customers you must have knowledge of their business and we put a lot of effort in this and develop services around the needs of our customers. We also created a knowledge center to for fill the needs of the customer and to help them with growth or stabilizing there business. (listening to your clients is essential)
 
2.Value perspective – We offered customers a total package with a fixed price this gave our clients a fixed base for their coast projection, and the guaranty that the administration was looked after.

3.Manufacturing perspective – consistency in services was guaranteed by the use of an sophisticated computer system and backups. We also had a bacon number from the Dutch tax office with this clients now that you had privileges with them.

4.Transcandent perspective- Our objective was to deliver excellence and on time. But also by having certain recognitions from the market such as The Bacon number from the TAX office and being an member of the national Dutch administration consul and being the best learning company helped us. And changing the name from VHH Administration office to VHH Accountancy made a big difference.

5. Customer perspective - For further sustained value creation is the goal of the entire company as a financial knowledge center to set up and operated. These also make TQM (total quality management) and to set up VHH visitor center .
This means that every entrepreneur can go with all his financial affairs to the VHH group from beginning to end. 
To expand knowledge and securing the continuity of the company has resulted in an intensive training program for both professional and communicative area, it is tailored to each employee and his / her competencies.

6.Intergrating quality perspective- At VHH Accountancy we had an employee handbook with the expected work quality. This detailed process specification had features as the outline of letters and annual reports / how to answer the phone and when / outfit / but also the layout of flexibility in making own decisions (with clients). 

Contemporary Issues in Quality Management

I must say that Martin has covered the various aspects of quality perspective of VHH accountancy in detail. Although I am not too convinced about the value perspective which does not state the exact value over and above the price which the organisation delivers to the customers.  Also, as per the various perspectives given in the book, the product perspective seems to be missing in the above description which should have been added. Also, in customer perspective, it would have been better if the various aspects of service that the customer demands in such services could have been stated before covering measures taken by the company to ensure the same.    

My personal posting

Major forces for McDonalds Australia are discussed below.

• Increasing rate of change – With technology in the fray, the processes and consumer lifestyle are undergoing rapid change. In such a market, the life cycle of products is increasingly getting shorter and market is increasingly becoming more competitive. In order to address them, McDonalds would need to constantly innovate not only in terms of menu but also in terms of processes. With the growth of e-commerce, the business may face significant challenge from such ventures. Hence it is imperative for McDonalds to ensure that its perceived value amongst customers remains (Robbins, et. al., 2015).
• Innovation- While the company is known for innovation particularly with regards to its menu in various geographies but the 21^st century would push this further and hence McDonalds would need to set up permanent food labs which design products based on futuristic preferences of customers in Australia (AFR, nd). 

Post of other (Alexandria Wrigley, 26^th June 2016, 19:59:06)

Schools are not just a place where children learn, they are organisations responsible for the service delivery of quality education. A schools main asset is its staff, both teaching and administrative, and without quality staff there is no delivery of quality education. ‘Quality Learning’ is identified as a key priority in the Education Directorate’s current Strategic Plan (ACT Government, 2013). Significant investment is being put in to professional development for all staff with additional opportunities for administrative staff to undertake professional certification (Evans 2014, p. 18).

‘Business innovation and improvement’ is also a key strategic priority (ACT Government, 2013) for the school and Directorate. Supporting innovation and improving business systems encourages employees to perform well and deliver a quality service (Evans 2014, p. 19). The organisation supports employees by encouraging the use of tools such as Google to generate innovative teaching methods, and as a communication tool. Initiatives such as the Chromebook program have resulted in the school leading the way in online learning within the Territory and providing quality learning opportunities. 

I agree with Alexandria with regard to the challenges identified. This is primarily because for schools, the teaching staff is arguably the most valuable asset and hence it is imperative that they should be given adequate training so as to ensure that the stated learning objectives amongst the students are met. Additionally innovation is critical especially with the advent of technology that opens up new vistas for education particularly using technology as the key enabler. This can be used to drive learning even amongst native communities in far flung corners. Another challenge would be global responsibility and the role that education would play with regards to the future. It is imperative that education should serve as a platform where the students could not only gain academic learning but also knowledge about the key issues that we as a global society are facing (Tucker and Stronge, 2015).  

My personal posting

Yes my organisation does understand the link between quality and profitability. In order to ensure that proper standards are met, there are quality checks which cover various aspects right from delivery time, quality of product to floor management. These checks are periodically conducted by the head office and stringent action such as termination of franchise agreement may also take place in case of non-compliance with the standards. Additionally, due emphasis is given on training of employee both at the entry level and also at the time of promotion to key posts. Going into the future, it is imperative that the business needs to maintain its perceived value amongst the customers which is of pivotal value. In order to ensure this, it would be mandatory for the company to constantly understand their dynamic needs and preferences and adapt accordingly (Taylor, 2015).

Linkage between Profitability and Quality

I found this a really difficult question to respond to being in a public sector role. I think I could measure my departments understanding of this a little differently. We do have to prove our value to our clients, which are largely the Government and other public sector entities. If we can ensure that our work is designed well and delivered to a high quality, we have a higher perceived value for entities, build trust with them and therefore they are more likely to partner with us as we search for efficiencies across Government spending.

This means we must always be looking at where we can add value to our conversations, whether it be through developing new policy proposals, or reviewing project business cases. If we apply the effort to ensuring that our advice (our produce) is of a high professional standard, when we play our compliance role we see better results.

My view is that we have not in the past invested in our structure to support a professional approach to our business. We have been fortunate in a way, that our workforce culture is strong, which has led to us mostly retaining respect from our clients. It could be said though that their willingness to work with us may be only due to the fact that we hold the purse strings…

I do see a shift in our business strategy though and it is about applying professional excellence to the delivery of our business. We are becoming a more joined up organisation, with cross division KPI’s and increased internal collaboration, particularly I am finding in our effort on client engagement. Applying the discipline of a quality management framework that could be rolled out at the enterprise level and then to the broader public service would see our reputation with the public improve. 

The above post is an excellent example of how things need to be tweaked for public sector organisations where the profitability is not a key parameter but at the same time efficiency should not be compromised. It is heartening to see that even when profitability is not a driven, the organisation is being driven by a strong culture which ensures that efficiency should not be compromised and quality services are delivered to the clients. Hence, efficiency and quality need to aimed for in all sectors including public sectors and not for profit sectors as it results in efficient usage of scarce resources and hence beneficial not only for the concerned industry or sector but for the whole economy (Milakovich, 1991). 

My personal posting

My organisation i.e. McDonalds Australia is an exceptionally consumer centric organisation. The fast food chain is world renowned for its customisation in menu and other business practices based upon the underlying location and Australia is no different. The company in Australia has realised the potential and consumer demand for greater personalisation and has successfully introduced “Create Your Taste” range which has become immensely successful. The consumer centric nature of the organisation is apparent from the CEO’s comment where he acknowledges that all the innovation at McDonalds Australia is driven by Australians. Additionally, the company has also introduced new initiatives such as “The Corner” to attract the customers and constantly innovate (Camoron, 2016). However, at my organisation being customer focused in an on-going activity as the company needs to constantly innovate based on changing needs and preferences of the target market. Hence, the organisation would need to continue being consumer centric in this hyper competitive market so as to ensure sustainable success (Kiran, 2016).

Medvet is a customer focussed business, who listens to its customers and continually evolves its service delivery and product offerings based upon the feedback received. This feedback is collected in a number of ways:
1. Customer surveys 
2. Customer complaints process
3. Account managers dedicated to building ongoing relationships with customers and developing relationships with new customers

Medvet like many organisations has recently faced tough economic headwinds, this is largely due to the down turn in the mining and manufacturing sectors. When times are good it is easy to become complacent or as Ranjay Gulati (2010) suggests success can breed arrogance about your service offerings. Rather than falling into the trap of inflexible arrogance, Medvet has used this opportunity to become really focussed on how to adapt the business to what the customer wants and how to deliver it to remain competitive. Medvet understands the critical importance of relationnships and has removed the barriers to forming and maintaining strong relationships as Graham Clark (2011) advises.

The above post highlights the various mechanisms deployed by Medvet to enhance the customer focus. Often when the business is going good, the focus is on minting money and hence adaptation takes a backseat. However, in time of downturn, it is imperative that the business should look to enhance its relevance especially in case of Medvet where the downturn is on account of economic factors (Mullich, nd). It is imperative that the company should enhance its value proposition for the intended customers so that when the business climate does improve, the company is in a position to leverage the same and reap rich dividends and thereby gain a competitive advantage over the peer group (Deming, 2000). 

References

AFR (nd), Addressing changing food values, Retrieved from AFR Website on 17^th July 2016 

Cameron, N. (2016), McDonald's CMO: Why we're focused on incremental customer experience improvements, Retrieved from CMO Website on 17^th July

Deming, W.E. (2000), Out of the Crisis, Boston: MIT PressEvans, J.R. and Lindsay, W.M. (2012), Managing for Quality and Performance Excellence (9^th edition), Sydney: Cengage Learning

Kiran, D.R. (2016), Total Quality Management - An Integrated Approach, New Delhi: BSP Books

Milakovich, M.E. (1991). Total quality management in the public sector, National Productivity Review, 10(2), 195-213

Mullich, J. (nd), Ready to Reengineer, Retrieved from The Wall Street Journal on 17^th July 2016 

Robbins, S., Bergman, R., Stagg, I. and Coulter, M. (2015), Management, Sydney: Pearson Australia

Taylor, K. (2015). Why the Most American Fast-Food Chain Is Using Australia as Its Testing Ground,

Tucker, P.D. and Stronge, J.H. (2005), Linking Teacher Evaluation and Student Learning, Alexandria: ASCD.