Quality Management Practices In Supply Chain: A Case Study On McDonald's Essay.

The importance of supply chain integration in the competitive economy

In the world of competitive economy worldwide, the competition is no longer between businesses, but between supply chains. Supply chain participants must learn how to effectively incorporate, grow, and enhance their company operations in order to compete. Quality management approaches have continued to solve many of these supply chain integration challenges. Current leadership thought is extending the concept of supply chain quality management in light of this. An integrated objectives of performance improvement, sustainable supply chain management incorporates supply chain partners and uses opportunities offered by upstream and downstream links to focus on producing value and satisfying intermediate and end consumers, respectively (Bastas, and Liyanage, 2018). There are a number of methods that firms use to ensure that their goods and operations are meeting their quality standards. Supply chains may be made more consistent, cycle and lead times shortened, and delivery on-times increased with this technology. It is a way of linking suppliers, producers and distributers so that things are created and supplied at the proper amounts, to the right location, at the right time, with mutual purpose of minimising system-wide costs and satisfying customer service objectives. For example, supply chain management synchronises an organization's activities with its suppliers and customers so that the products, services, and information it provides are aligned with the needs of its consumers. Product design, production, distribution, support, and supplier-customer interactions are among the most important supply chain activities (Chen et.al, 2017). The main objective of the report is to assess the aspect of quality management practices at McDonalds such that the company can gain a strategic advantage in the market.

Quality may be described as achieving or surpassing consumer expectations, even if there are numerous definitions of quality. Quality as "a subjective concept for which each individual or sector has their own meaning.". Quality has two connotations in the technological world: It is important to know how a product or service performs in terms of its capacity to meet stated or implied demands and also the same is provided with free of deficiencies (Vanichchincha, 2019).

The connection among suppliers and customers is among the most crucial aspects of business. As a matter of fact, today's managers worry whether their organisations should participate in global sourcing because many global suppliers cannot achieve quality standards. There are symbiotic linkages amongst the supply chain and quality management. Initial effects on various supply chain performance metrics come from quality management initiatives that reduce process variance. Defects, and hence process and output variance, may be decreased by on-going quality management improvement. As a result of the reduction in variance in the supply chain, cycle times (the amount of time it takes for a product to be replenished) and on-time delivery enhance (Fernandes et.al, 2021).

Furthermore, when it comes to demonstrate the concept of quality management in supply chain, then it has been depicted that for the companies like PepsiCo’s supply chain ability to handle more complicated goods to reflect consumer trends toward more healthy meals than carbonated soft drinks and processed snacks has done a wonderful job of transforming its supply network Among PepsiCo's many supply chain resilience and efficiency enhancements are its commitment to sustainability, coordinated production planning, inventory buffers, & strategic buying.

Defining quality in the technological world

Process and product decisions are made in new products concurrently through quality management strategies such as design for manufacturability, and successful product designs focused toward the ultimate customer needs resulting in reduced product and process variance. Despite the apparent benefits of reducing variation in the processes, careful evaluation of the design processes allows management to move from one product to another more quickly. Because of this, the setup time among items is reduced when products are designed for manufacturability (Hong et.al, 2019). Less cycle as well as safety stock, as well as shorter setup times, enabling organisations to lower lot sizes. Cycle times, timetables, and customer response times are all improved when quality improvements minimise faulty units. This in turn saves money on rework and helps the supply chain run more smoothly. Improved cycle times can be seen as a result of fewer faulty units in the system, as the remaining units pass through to the supply chain more quickly. Faster product movement through the supply chain means that timetables and customers' needs may be met more quickly by enterprises. As a result, the entire supply chain benefits from better synchronisation and integration (Peng et.al, 2020).

In today's competitive marketplace, companies are finding new ways to improve product quality. An important purpose is to position the brand in the eyes of customers. In today's commercial world, the focus is on the client. This is a reality that cannot be disputed. It is impossible for a brand to have an influence on the minds of consumers if the quality criteria are not met. For this reason, a growing number of companies are bringing in quality control professionals. The role of quality control in supply chain management has grown tremendously in recent years (Zhang et.al, 2020).

For a company to avoid unnecessary expenditures and minimise threats to its reputation, adherence, safety, as well as financial well-being, quality problems must be discovered as early as possible in the supply chain. A lack of supply chain quality management can lead to greater manufacturing and distribution expenses, as well as revenue losses, due to unexpected downtime, delays, and disruptions in the supply chain. Nevertheless, maintaining a high degree of quality in complicated global supply networks is difficult. Supply chain quality control becomes more difficult as companies rely more and more on complex as well as internationally spread networks of supply partners. In order to assure the quality of goods and processes along the value chain, organisations want a mechanism to get more transparency into collaborator performance and to allow seamless information sharing and cooperation (Schniederjans, 2018).

Also, there is no doubt in this, Supply chain management is an essential aspect of the economic model of global organisations like Starbucks. A lean and efficient organisation is one of the benefits of an effective supply chain management methodology. In today's global marketplace, quality control is critical. These contractors have a thorough understanding of the most recent procurement methods and are able to offer advice to businesses on how to put them into practise. Using quality control measures in the buying strategy will help the company gain more rewards. In the context of quality management, this is the management of tasks and procedures that are engaged in determining quality policy and implementing it. As a result, the applicable company, product, or service is always of the same quality. Quality planning quality control, quality assurance, and quality improvement are the four primary components of quality management. Management of quality is not only about focusing on product and service quality; it is about looking at the many ways in which it may be achieved as well (Zhang et.al, 2020).

The connection between supply chain and quality management

It was in the 1940s that McDonald's Corporation was formed. It was the only fast-food chain in the world to have its start on the worldwide market with a chain of its own. Big Quarter Pounder, French Fries, and Chicken Nuggets are some of the most popular items on McDonald's menu page. They provide a Sausage McMuffin with an egg for breakfast. Currently, it is one of the most well-known and prominent food service retailers. It is functioning in across more than 100 countries with over 35,000 local food chains (restaurants). Around 1.9 million people work for McDonald's, which serves more than 70 million customers every day. Most of the restaurants are run by independent as well as local distributors for the company. In 1940, just two brothers, Dick and McDonald, opened the first McDonald's restaurant (McDonalds, 2022). They were beginners, but now, McDonald's Corporations is a major player in the fast-food sector across the world. An appealing feature of this chain is that it offers a variety of product types and ingredients that may be customised for any country or location. In addition, new items and promotions are introduced each year in an effort to entice existing clients. Burgers & sandwiches, breakfast, salads, chicken & fish, snacks & sides, beverages and desserts & ice cream are all on the current menu. McDonald's is adopting an operational management system in order to compete in today's highly competitive international market. The McDonald's brand objective is "to be our customer's favourite venue and method of consuming food and beverages".

(McDonalds, 2022)

The McDonald's global strategy known as "The Plan to Win" guides all of the company's activities across the world. This approach focuses on providing the greatest possible customer experience. "People, Products, Place, Price, and Promotion" is the organization's guiding principle (McDonalds, 2022). They strive to be the world's top fast-food chain that serves high-quality meals and exceptional service to the customers every time they visit the restaurants. Distinction and cost leadership are two of McDonald's selected initiatives. This fast-food chain is devoted to its employees. It ensures that each employee has an equal chance to succeed. Develop and reward those who excel in leadership roles. This company thinks that a team of well-trained professionals from a variety of backgrounds and skills, working together in a competitive scenario with a high degree of devotion is the key to their success. " TQM's four key components are employee participation, benchmarking, customer focus, as well as continuous improvement. TQM may also be implemented using other management strategies, such as quality circles and Six Sigma, decreased cycle times as well as continuous improvement (Song et.al, 2017).

The willingness of McDonald's to collaborate with suppliers in the case of a crisis has been explicitly stated. In the case of catastrophic quality difficulties with product delivery, the Supplier Quality Management System necessitates a Crisis Management Plan. However, McDonald's has stipulated that in the case that a public address is required, the provider must first speak with McDonald's to determine the best path forward. McDonalds and its suppliers collaborate on this policy to establish a more cohesive approach to crisis management. When it comes to establishing and upgrading their strategic plan, top-level managers may find this approach valuable for crisis management and risk avoidance implementation. In addition, the Crisis Management Plan reveals a desire on the side of McDonald's to assist the supplier in enhancing their management competency in handling quality-related issues. This demonstrates a greater ability to produce value for relevant parties by exchanging resources and knowledge and regulating quality-related risks (Ling and Wahab, 2020).

Real-world examples of quality management in supply chain

McDonald's expects suppliers to establish a commitment to satisfying the company's basic quality standards. A food safety and quality management system must be documented, put into place, and maintained by them. Audits by recognised third-party inspection organisations confirm that suppliers are adhering to these standards on a yearly basis. Finally, the three most important QMPs examined were customer focus, process approach, as well as supplier relationship management (He et.al, 2016). The health of its consumers is a top priority at McDonald’s; therefore, they not only provide nutritional information and calorie counts, but they also go to great lengths to ensure that the food they serve is made with only the freshest ingredients possible. An enormous amount of insight into the situation may be gained by using the action-oriented theory of leadership to examine and analyse it in detail. Leading by example implies that there is harmony between the leader and the team members, which leads to a satisfactory settlement of the issue at hand. In terms of the introduction of the adjustments, flexibility would play an important part, emphasising their positive qualities. It is the leader's responsibility to identify and define the changes in the organization's success and growth, which will provide an incredible road toward the right settlement of challenges. When examining and analysing the situation at McDonald's, it is critical that the action-oriented leadership theory be utilised properly and appropriately (Kee et.al, 2019).

Considering the above discussion regarding the importance of quality management in supply chain in relation to the companies like PepsiCo and Starbucks, it has been found that their procurement process provides a lot of room for inefficiencies. This is due to the fact that Starbucks has implemented several key supply chain best practises, such as centralising their management program, utilising digital technologies, having to manage their distribution networks, rigorously vetting suppliers, going to commit to advancement, and removing waste and inefficiency.

A rise in demand for consumer products is being reported by PepsiCo and other companies in the consumer goods sector as economies throughout the world recoup from the first shock of the Covid-19 epidemic. The recovery has been hindered by shipping and production challenges.

TQM at McDonald's requires that staff arrive on time, dress impeccably, and clean up after themselves. It is imperative that personnel wash their hands often in order to maintain the safety of the food they serve to clients. Employees must also adhere to a set of Standard Operating Procedures to ensure that consumers receive the best possible service and quality. Food preparation procedures involve the use of plastic gloves by personnel while handling the cuisine, as well as correct cooking of meat and fries, as well as complete washing of vegetables used in the food. In order to ensure that customers might not have to wait long for their meals, the personnel rely on collaboration and great enthusiasm to complete their tasks. McDonald's management also stresses the need of a spotless dining environment. This means that the establishments must be orderly, sparkly, and immaculately clean. Fast, accurate, and polite service with a smile is an example of McDonald's quality (Amudan et.al, 2019).

Benefits of quality management strategies in supply chain

(Principles of TQM)

(Source: Privono, 2017)

A company's customers are those who make use of the products and services it provides. Consumers' demands necessitated that all goods and services be made available. In addition, consumers are the only ones who rank the endeavour and assess the overall satisfaction of the goods and services given by the organisations or companies that they patronise. Management and operational efforts will be ineffective if there are no consumers. As a result, whole quality management may be measured by focusing on the customer's needs. "To be our customers' favourite location and manner to dine," as depicted by the McDonald's mission statement. McDonald's operators, suppliers, and staff all work together to meet the needs of McDonald's consumers in McDonald's unique ways. Additionally, their Plan to Win is based on the most dominating combination of entrepreneurial spirit and System broad position, and so as a result, they have the greatest ideas for big scale productivity and local style. To make its customers feel happy, McDonald's gives them with high-quality meals and high quality services in a pleasant environment that is clean, safe, and sanitation (Privono, 2017).

McDonald's considers the dietary needs of its patrons. Research had been done to determine the nutritional needs of their clients and to build a menu that would meet those needs. When it comes to calorie consumption and other diet-related concerns, McDonald's is concerned because it wants its customers to keep within their daily calorie intake limits. By incorporating "it is what I eat and what I do" into its Balanced, Active Lifestyle (BAL) initiatives, McDonald's hopes to encourage and push people to live equitable, active lives. Since McDonald's launched Happy Meals, a children's nutrition meal created for young children, the company has expanded its menu to include a variety of healthy options for children of all ages.

Analyzing past building costs is a necessary step in the benchmarking process. Customer value for money may be evaluated at basic building level with details sorted out using this historical knowledge. It is only to engage with its direct competitors that McDonald's uses competitive benchmarking. For this sort of benchmarking, which is done externally, the aim is to evaluate firms that are competing in the same market (Sadik, 2018).

Burger King and McDonald's are competitors, for instance. It is possible to compare the performance of connected firms using this approach. Information is difficult to get by when dealing with a direct opponent. The information in the public domain is the easiest to get a hold of.

McDonald's has improved the quality and value it provides to its owners and consumers in order to remain competitive in the market. Such aims necessitate the establishment of a continuous improvement (CI) methodology to provide complete quality management. A sound human resources strategy and well-trained staff are among the many ways that McDonald's focuses on increasing customer happiness while also enhancing the quality of its products (He et.al, 2016).

More specifically, McDonald's connects the quality of their product to the ability of its staff by providing training to their workers. For this job, employees received specialised instruction. For instance, the cashier is taught in all aspects of cash handling, while the floor manager is sharpened in his hotel management degree. Similarly, in addition, McDonald's employees receive extensive on-the-job training and are mostly vocational in nature. More than only the aforementioned new hires received training. McDonald's other goal is to ensure that its staff are happy in their jobs by providing them with training opportunities. Because of this, the organization's reputation is boosted and its workers become more motivated to work in a professional way, which results in an increase in productivity and a better work environment for everyone (McDonalds, 2022). McDonald's philosophy places a high value on improvement. Not only do the restaurants fall under this umbrella, but so do the primary and secondary vendors. McDonald's developed the 'Supplier Performance Index' to gauge the competence of its vendors (SQI). This system can keep track of a wide range of products and services, both agricultural and non-agricultural (Kee et.al, 2019).

The role of quality control in supply chain management

The quality circle aims to identify solutions to management issues by using people. In order to foster employee innovation, management must provide a supportive environment in which employees feel comfortable sharing their thoughts. Every member of the team, like the one at McDonald's, has a vital function to perform. Crew and management work together in a team that is both busy and tough, but always tries to maintain a sense of fun and cooperation. Additionally, McDonald's employees must exhibit the McDonald's principles as well as the Global Leadership Competency Model in order to be considered for promotion.

As a human person, the employee is valued as an individual with his or her wisdom, intellect, experience and attitude. The notion of a quality circle is built on this acknowledgment. Based on human resource management, which has been shown to have a significant impact on both product quality and productivity, this strategy aims to boost both.

Critical to quality in Six Sigma refers to attributes that are most beneficial to consumers; defect refers to failing to deliver what consumers want; process capability refers to the results your process can produce; variance refers to what customers see and feel; stable management system to ensuring consistent, predictable procedures to enhance what customers see and feel; and design for six sigma refers to creating products that meet customers' needs.

McDonald's management is founded on a few fundamental principles:

McDonald's has employed the food safety management system in place, comprising GMP, sanitation, an authorised Hazard Analysis Critical Control Point (HACCP) plan, crisis response, and a food security programme, which are all critical to quality. This system is vital to McDonald's. Food safety and high standards have been included in McDonald's 2007 update of their Supplier Quality Management System. For the sake of keeping their businesses clean, McDonald's management also wants to ensure that clients who are dissatisfied with their service are given their requested items at home. McDonald's has utilised the technology to enable drive-thru customers to purchase without exiting their car and to provide a home delivery service. McDonald's offers a range of menus so that consumers may pick and choose what they want and how they want it. Customers may expect a new menu item every month from McDonald's. As a side note, With the creation of new products, McDonald's management has steadily boosted its operations year after year, resulting in a rise in sales.

(He et.al, 2016)

With respect to Six Sigma Design, McDonald's has encouraged firms to concentrate on their clients. As a result of McDonald's entrepreneurial spirit and system-wide harmony, they are able to execute the greatest ideas in the most efficient way possible. The McDonald's restaurant has been providing a simple, straightforward, and satisfying experience for customers for many years.

Defining, analysing, and controlling problems is what McDonald's calls DMAIC (Define, Measure, Analyze, Improve, and Control). Through GE's At the Customer, For the Customer programme, McDonald's is also learning about Six Sigma (ACFC). This initiative will provide McDonald's management a fresh outlook on their business, which will help the company continue to thrive. Incorporated within McDonald's are certain components of the philosophy. In other words, "it is a methodical technique to making decisions." When it comes to Six Sigma, it is all about finding ways to improve a process's weaknesses and turning them into benefits. The philosophy's proponents claim that it can save costs, reduce waste, and better understand the demands of customers.

Challenges and solutions in maintaining quality in global supply networks

In today's fast-paced environment, cycle time has become a key quality concern. Cycle time is the time it takes to complete a corporate operation, such as booking an airline reservation, completing an internet transaction, or starting a retirement fund. Reducing cycle time is one of the strategies employed by the McDonald's corporation, which has implemented 24-hour McDelivery and Drive-Thru services. An effective TQM programme relies on the elimination of unnecessary stages in the process and the elimination of work-related impediments.

Conclusion

Leaders in today's competitive, global market must incorporate their aims effectively as well as emphasis upon the consumer as the driver of changes if they are to succeed. Cost, quality, and timeliness are just a few of the competing considerations in the supply chain. Flow charts, process analysis, service blueprints, process re-engineering, link charts, multi-activity analysis, etc. are just a few of the supply chain improvement tools that may be used.

As per business experts, quality management is a far more thorough process than just defining a single, if complicated, issue such as the best plan for driving a company to desired success. As part of this process, a company's internal audit and corporate assessment are used to build specific plans to assist it reach its goals, identify opportunities and risks, and then formulate corporate goals and strategies based on those findings. An important factor in the future is whether or if a quality management philosophy of shared responsibility can be implemented more widely between the company and its employees in case of McDonalds. It is a shared duty that includes more decision-making authority and job security for the people involved. Quality management enforcement must be prepared to take chances and experiment with new methods if they want to see strong morale, engaged employees and greater economic and social fairness across regions.

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