This report evaluates the operational management of Burger King, focusing on aspects such as process management, lean management, and capacity management. It discusses the role of operations managers and the alignment of the organization with industry standards. The report also includes a process chart and recommendations for effective operational management.
Running head: OPERATIONS MANAGEMENT: BURGER KING
OPERATIONS MANAGEMENT: BURGER KING
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Executive Summary
The report is concerned with the essential evaluation of the operational management. Burger
King, the American restaurant chain was selected as the organization in focus for the study. The
operations management, process management, lean management and capacity management
aspects were highlighted through the study. The study focused on understand the aspects that are
crucial towards operational management. The implications point towards the effective
operational management of Burger King but important recommendations were provided.
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Table of Contents
Introduction . 3
Scene of the Study . 3
Purpose of the research . 4
Outline . 4
Operations Management in the organization (Part Ai) . 5
Industry standards and alignment of organization . 5
Role of Operations Manager in Burger King . 6
Process Management in Burger King and Process Chart (Part Aii) . 8
Description of process chart . 8
Analysis of the process . 11
Process improvement . 11
Customer Service Strategies . 13
Inventory management . 15
Scheduling operations . 16
Burger King Lean Management (Part Aiii) . 16
Lean management model: . 17
Application in the organization . 18
Capacity Management (Part B) . 20
Conclusion and Recommendations (Part C) . 24
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Introduction
Scene of the Study
The study is focused towards analyzing all the essential aspects that govern the
operational management of organizations. Operational management functionalities of the various
organizations are focused towards creating a balance between the production processes of
organizations and the needs of their customers. The operational processes are aligned with the
required market functionalities to guide productive performances of organizations. There are
mainly three essential levels at which the operational management of organizations take place.
They are the strategic levels, tactical levels and operational levels. The effectiveness of
organizational management depends on that abilities of the organizations to integrate separate
departments of organizational management like finance, marketing, HR and procurement and
management of supply chain. The roles of the operations managers become very important in
creating, implementing and managing processes that help to integrate all the major operational
functions towards achieving productive effectiveness. One factor that should be essentially
considered is that the needs of the customers are changing constantly. Hence it becomes a
difficult task altogether to align the most important areas of operations management with the
ever changing needs of the customers. Hence, the feasibility of completely aligning the
operational aspects of the organization with the demands of the market is questionable. Industry
standards tend to guide the operational environments of organizations. These standards become
important as failure of the organization to function in accordance of the same can result in facing
significant business risks (Pulles et al. 2016). Balancing of the operations with the changing
organizational environments becomes a tough task in view of all the factors that are identified.
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The operations of Burger King Company are considered to analyze effectively the operational
management aspects. The current operations of the company would be considered for the study.
The company is a large organization with multifaceted operations that can facilitate the
understanding of the subject matter.
Purpose of the research
Currently organizations are finding it difficult to perform according to the industry
standards and market requirements. Burger King being a multinational organization constantly
focuses on living up to the expectations of the customers. The research is being done to
understand the present operational management in the organization and find and evaluate
essential information concerning the same.
Outline
The beginning of the study would consider evaluating the operational functions and the
operational manager roles in the organization of Burger King. Burger King is a US based
multinational restaurant chain (Burger King 2019). It was originally founded in Jacksonville,
Florida and its current headquarters are in Florida as well. The standard operating procedures of
Burger King would be considered in the study. The operational standards would be evaluated in
the light of Burger King being a restaurant centered organization the operational factors that
would be considered would be the various factors related to restaurant and food business
management. A problem issue would be selected concerning the organization whose solution the
research would focus on finding through the essential analysis of the operational management of
the organization. The second part of the work would provide a process chart and discuss process
management. The third part would concern the investigation of the lean management systems in
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Burger King. The following part would cover the exploration business application forecasting in
the organization. The last part would be the conclusion and recommendation that would be
gathered from the findings that would be gathered from the above stages of research.
Operations Management in the organization (Part Ai)
Industry standards and alignment of organization
Burger King operates with a large number of restaurants across the US and the world.
The product variety and continuous product improvement has helped the organization to perform
well considering its operational effectiveness. The company focuses on Burgers as its primary
and most important products. Hence, significant emphasis is provided towards enhancing the
various types of burgers offering to the customers to live up its garnered reputation in the
restaurant market. The company offers various types of burgers to the customer. They constantly
focus on changing their product varieties from time to time. Hamburgers are the signature dishes
offered by the Burger King. However, the products of the company are not limited to
hamburgers alone. The company offers salads, breakfast foods, beverages, coffee, sweets and
various forms of combo value menu. However, the organization still relies on the larger much
more popular products like the Angry Whopper and the Stacker king (Burger King 2019). The
close analysis of the products offered by the organization point towards the fact, that the
organization promotes the specialty products among the fast food loving consumer base. The
company focuses more on fried foods and tastier burgers. Consumer demand in the fast food
market is ever increasing with companies essentially focusing on constantly evolving their
product offerings. The operational environment of Burger King is very competitive with other
companies sharing the large brand status that BK currently has. The operations of BK relies
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much on acquiring franchise fees from the various restaurants franchises across the USA and the
world. The industry standards in the food business in the US is maintained by the FDA
(Kotsanopoulos and Arvanitoyannis2017). The FDA maintains the food guidance documents that
determines the regulations that are to be followed by the organizations in the food sector. The
fast food industry of the country has been recently affected by some strict regulations due the
recent criticism from the health oriented communities. The alignment of the operations are hence
done by the organization with these laws and regulations. The organization is focused on
improving its products by making it healthier as it is one of the largest organizations in the
country. The company is currently using healthier oils and raw food products to make their
products healthier than before. In this case there is a significant difference between customer
expectations and the expectations of the FDA. Hence, the organization essentially focuses
towards making its operations effective enough to maintain the balance between customer
expectation and food regulation requirements. The company sets organizational standards for the
kitchens and the production areas of the different franchises around the world. There are specific
departments vested with responsibilities to inspect the kitchens of the various branches. The
operations of the organization have to be always effectively aligned with the food standards and
the food regulation of the country and change in accordance with the evolution of the food
standards of the country. Similarly, the food standards of the world are also accounted for (3G
Capital 2019).
Role of Operations Manager in Burger King
On the basis of the discussion above the role of the manager of the operations becomes
very significant toward governing the operational processes of the organization. The role of the
operation manager at the Burger King becomes very important towards determining the
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effectiveness of the operational processes. The role of the operations managers, range between
managing the various operational processes and regulating the flow of the processes for
production. The operations are focused much essentially towards the alignment of the
operational processes with the needs and want of the customers. In doing so it also becomes very
much important that the regulations of the food authorities are abided by the organization. The
company has set organizational standards for the kitchens and the production areas of the
different franchises around the world (Harrington, Ottenbacher and Fauser 2017). These need to
be maintained by a large number of operational managers. There are specific departments vested
with responsibilities to inspect the kitchens of the various branches. This is also an important
lookout for the managers of the organization. The most significant areas of operational
management roles are financing, customer management, human resources and risk management.
The board of directors of Burger King consisting of the members from 3G capital control the
operational management of the organization (Burger King 2019). There are around 40 global
subsidiaries of the organization that oversee the operations of the franchises. These are the areas
where Burger King is actually focused towards the effective operational management of its
subsidiaries. The operational managers are focused towards the essential development of the
processes such that the consumer demands can be well balanced through the operational
procedures for production. The organization also has to align the operational functional aspects
with the legal and regulatory requirements. Hence, the focus of the operations manager is
towards achieving a balance between customer demands and regulatory requirements. The
operations manager has to take all the necessary decisions in regards to the production
procedures that would be utilized across the franchises and outlets of Burger King. The entire
process from the preparation of food to the presentation is to be overseen by the managers.
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However, the role of the operations manager at Burger King is greatly influenced by the higher
management of the organization (3G Capital 2019). The various factors that go on to determine
the managerial role are knowledge of the processes, communication, risk aversion, cost
effectiveness, production capabilities, coordination between production and higher management
levels, understanding of customer requirements and other essential aspects as required by the
organization. It is important that the operational feasibilities are considered as well. More
production cost can cause great discrepancies in meeting the demands of the consumers. Burger
King relies on essential analysis power of the operations managers to move forward their
essential production processes. The effectiveness of the operations management made sure that
Burger King earned revenue of 1.27 billion US dollar with 1% growth in sales than 2018
(Harrington, Ottenbacher and Fauser 2017). This was because the operations management had
effectively planned the operational functions of the organization towards improving productivity
in accordance with the corresponding consumer demands.
Process Management in Burger King and Process Chart (Part Aii)
Description of process chart
The process chart that is provided below focuses on the operational process of the
organization form the first customer interaction till the time the customer actually gets what is
ordered. The diagram that is provided shows that the process concerns the effectively integrating
the customers within the production process (Rosemann and vom Brocke 2015). It essentially
also consists of the customer feedback mechanisms that help to make the product offering and
also the production procedures better. The crucial service factors that are related to maintaining
effective customer relationships are also focused through the work. It is important that the
