Quality Management of McDonald’s

Introduction

The International Organization for Standardization defines quality management principles (QMPS) as “a
set of fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis
for quality management”(ISO, 2015). The role of QMPS can be identified as an avenue to foster an
organisation’s performance improvement. Quality management main objective is not only emphasize on
product and service quality, but to implement various methods to achieve the overall goal. The seven
quality management principles defined by International Standard for Quality Management are:

QMP 1- Customer focus

QMP 2- Leadership/ Top Management Commitment

QMP 3- Engagement of People/ Employee Involvement

QMP 4- Process Approach

QMP 5- Improvement/ Continual Improvement

QMP 6- Evidence -based decision making

QMP 7 – Relationship Management/ Supplier Relationship Management

This blog aims to analyze three main quality management principles (QMPs) that shows significance
importance within McDonalds, namely; Customer Focus, Process Approach and Supplier Relationship
Management.

McDonald’s History

“From drive-thru restaurants to Chicken McNuggets to college credits from Hamburger U, they
had quite a journey” (McDonald’s, 2014). Dick and Mac Donald originally resided in New England,
however, in the 1940s they migrated to California to explore business opportunities as they previously
were unsuccessful in the movie industry. Consequently, the brothers proved successful in operating
drive-in restaurants. McDonald’s first menu consisted of Big Quarter Pound, French Fries and chicken
nuggets. Their main meal for breakfast is known as the Sausage McMuffin with egg.

The renowned success of the restaurants allow McDonald’s to hold the title as one of the most famous
and leading food service retailers globally. This success resulted in the brothers franchising their
business. McDonald’s has more than 35,000 local restaurants in more than 100 various countries
(McDonald’s, 2014). This food chain serves more than 70,000 million customers daily around the world
and employees an approximate total of 1.9 million persons (McDonald’s, 2014) (Steve, Dudley, Hazen,
2012). McDonald’s has been able to main competitive advantage as they not only sell their products but
they also change the product type and its ingredients according to the local country or region
requirement. For example, they have expanded their menu to wide range of Burgers & Sandwiches,
Chicken & Fish, various Breakfast options, Salads, Snacks & Sides, Beverages, and Desserts & Shakes
(McDonald’s, 2014). In 1939, Ray Kroc became the only distributor of Multimixer (a milkshake mixing
machine). He visited the McDonald brothers in 1954 which led to him becoming their franchise agent.
Ray Kroc wanted to build a restaurant system that would be famous for providing food of consistently
high quality and uniform methods of preparation.

QMP – Customer Focus

A customer can be defined as an individual or organization that purchases another company’s goods and
or services. An effective way to interpret how best to meet the needs of your customers can be stated as
closely monitoring the relationship customers have with your brand. Customers are vital to the survival
of any business as they bolster revenue; without them, the business has no purpose. Hence, customer
focus is a pivotal element when measuring the total quality management of an organization.

McDonald’s mission statement is “to be our customer’s favorite place and way to eat and drink”
(McDonald’s, 2014). By this statement, it can be identified that McDonald’s reflects the importance of its
customers and strive to exceed the demands and needs of their customers and not only satisfy them.

The health of its customers is one of McDonald’s main priorities and as a result they implemented
various strategies that focus on serving food at the highest quality level.

One such strategy carried out by McDonalds is their antibiotics policy as they are under the impression
that antibiotics should be utilized in a responsible manner to conserve their effectiveness for human and
animal health in the future. They achieved this goal in 2016 where the chickens they sourced in the U.S.
were not treated with antibiotics but only with ionospheres which assist the chickens to remain healthy.
Also, this was established across their global chicken supply chain and beef supply chain in 2017 and
2018 respectively. As burgers are an integral aspect of their menu, McDonalds employs a global
commitment to sustainable beef, meaning that they use 100% real beef patties seasoned with just a
pinch of salt and pepper and most importantly no artificial preservatives, flavors and colors. With this in
mind, the company takes pride in preparation and created a policy, “burger cooked when you order” to
assure that nothing is left to chance where quality in concerned (McDonald’s, 2019). It is also identified
that McDonald’s pledge to only source cage-free eggs by 2025 in the US and Canada. Additionally, they
aim to use milk from cows that are not treated with artificial growth hormones like RBST in their milk
and dairy products and by 2020 they should roll out the use of sourcing 100% of ground and whole bean
coffee.

Furthermore, the quality management members in McDonald’s focus on the dietary contributions for
items on their menu. McDonald’s takes pride in creating a menu which focal point is the daily nutrition
of their potential and existing buyers. Calorie consumption is a major concern within this organization as
they seek to promote and encourage individuals to live a balanced lifestyle. Simultaneously, ‘Happy
Meals’ were developed for kids smaller portion sizes to provide the necessary nutrients, namely;
protein, vitamin B, iron and calcium. Designed just for young-children, the serving of fries will be less
than half the size of the normal portion, apple slices will be added to all Happy Meals instead of being a
replacement for fries, and a fat-free chocolate milk is also included instead of a Coca-Cola drink.
Moreover, to connect with customers and enhance the image of the brand from adults to children,
McDonald’s introduced their first mascot in 1963, named ‘Ronald McDonald, the Chief Happiness
Officer. Ronald McDonald portrayed a clown wearing a long sleeve white and red striped shirt, a yellow
jumpsuit with matching white and red striped high socks with huge, funny-looking red shoes. This
mascot’s main purpose is to entertain customers and bring joy and excitement to their lives as he is
under the impression that ‘life is all about having a good time’ (McDonalds, 2019). To further relate with
customers, Ronald is capable of communicating in 31 various languages.

Concurrently, McDonald’s taps into the emotions of their environmentally sustainable customers by
including energy, packaging, anti-littering, recycling, logistics, communications, greening the restaurants,
greening the workplace for the past thirty (30) years. This is also demonstrated by McDonald’s
responsibility of The 2010 Global Best of Green.

QMP- Process Approach

Process approach is one of the eight principles of the ISO 9001:2015 Quality Management. The process
approach looks at a company’s inputs (raw materials) and activities (internal practices) that leads to
their outputs (product). The focus of the process is to improve the quality of an organization’s outputs
through continuous improvement of internal practices. (Carson 2015) “Organizations enhance their
performance when leaders manage and control their processes, as well as the inputs and outputs that
tie these processes together.” Mc Donald’s has frequently updated and improved many of their
processes over the years, the company aims for sustainability and as such have incorporated activities to
improve their position.

Food

Mc Donald’s being the world’s largest fast food franchise holds the food they produce to very high
standards. The company aims to serve foods that are of good quality , that follows and meets food
safety standards and that offers customers choice. The company states “We are passionate about our
food and take great care that what we serve every day is safe, great quality, offers choice and is
produced in a responsible way. We use real, quality ingredients to elevate the taste of our food and the
spirits of people who enjoy it all over the world.” The company has improved the safety of the food they
sell by working with leading food companies, academia, and regulatory agencies on advancing food
safety standards and practices globally, including serving on the board of the Global Food Safety
Initiative since 2008. McDonald’s implements science and risk based food safety standards. The
company understands that behaviors and attitudes of employees, suppliers and restaurant operators
towards food safety is very important as such the company hosts ongoing programs to educate and train
persons

Quality food is at the core of their strategy, the company has taken several steps to ensure this. They do
this by sourcing fresh ingredients to enhance the taste and flavors of their signature meals. To maximize
the quality of their iconic burgers they use 100% fresh ground beef sourced from ethical farmers. Their
burgers are made only when ordered to ensure freshness. The company also source their fruits and
vegetables from various verified sustainable farmers. When describing their ingredients they often say
that it is “from farm to fork.” The company also invests heavily on training staff on their food
preparation to establish consistency and great taste among their products.

McDonalds over the years have also added several seasonal options to their menu in efforts to give
customers variety and choice. The company has expanded their menus from burgers and fries adding
deserts, coffees, salads and breakfast items. They have also customized their menus to suit various
regions and countries.

Packaging

McDonalds has also improved their packaging over the years in efforts to achieve more environmentally
friendly options. Packaging is a very important part of their output as it keeps customers food safe, fresh
and warm. Their aims are to “source 100% of packaging from renewable, recycled, or certified sources
by 2025. This includes an interim goal to source 100% of primary fiber-based guest packaging from
recycled or certified sources where no deforestation occurs by 2020.” They also want to “Recycle guest
packaging in 100% of McDonald’s restaurants by 2025. We understand that recycling infrastructure
varies from city to city and country to country, but we plan to be part of the solution and help influence
powerful change.” In Trinidad the company has changed from plastic to paper bags, Styrofoam to paper
cups. The company has also opted for less packaging for some of their items in efforts to minimize
waste. In some branches around the world they have launched initiatives to go green by using mostly
paper packaging.

QMP – Relationship Management/ Supplier Relationship Management

“McDonald’s takes great pride in serving its customers around the world every day with safe and high
quality food. The ability of McDonald’s suppliers to deliver safe and high quality products that
consistently meet our requirements, as well as all applicable laws and regulations, is of critical
importance to the continued success of the McDonald’s System,” according to McDonald’s (2016).

Mc Donald’s has taken the initiative to develop and continuously improve its Supplier Quality
Management System. The Supper Quality Management System is a system, “intended to identify
McDonald’s expectations with respect to our suppliers’ food safety and quality management systems
inclusive of McDonald’s policy/ procedures/guidelines, etc…” according to McDonald’s (2016).

The ISO posits four key benefits that companies should strive to achieve in managing their relationships
with suppliers. These are:

· Enhanced performance of the organization and its interested parties through responding to the
opportunities and constraints related to each interested party

· Common understanding of goals and values among interested parties

· Increased capability to create value for interested parties by sharing resources and competence
and managing quality-related risks
· A well-managed supply chain that provides a stable flow of goods and services

Seven key elements of the Supplier Quality Management System are outlined: Food Safety and Quality
Systems, Management Responsibility, Crisis Management, Fundamental Requirements, Food Safety
System, McDonald’s Product Requirements and Verification & Continuous Improvement.

Food Safety and Quality Management Systems

McDonald’s believes that in order to deliver quality, quality must be the focus on all levels of business
operation and procedure. McDonald’s requires its suppliers to implement, maintain and continuously
update strong food safety and quality management systems. The effectiveness of such systems should
be demonstrated in documented processes, control measures and audits. Such systems must be audited
regularly, at least yearly. Documentation about the food safety and quality management systems must
be proactively managed with all records being stored safely and easily retrievable upon request. All such
documentation must reflect the most recent policy and procedural changes to date. The use of audits
and record keeping function as evidence that the company is able to stick to its intended food safety and
quality management system. Supplier management must also be sufficiently trained to manage the
regulatory inspection process. This objective is in keeping with the key benefit outlined in the Quality
Management Principles of the ISO (2015) where, “A well-managed supply chain that provides a stable
flow of goods and services.”

Management Responsibility

The Supplier Quality Management System requires supplier management to emphasize an internal
culture of food safety and quality management that is aligned with the objectives of the company to
meet the quality need of the company’s own quality standard as well McDonald’s. McDonald’s has
clearly stated its need for quality and has made recommendations to suppliers through continuous
updates of its managerial documentation, by virtue of audits and customer feedback to better assist the
supplier in improving the consistency and quality of their supply. This shows a proactive approach on
McDonald’s part to sustain a mutually beneficial relationship between itself and its suppliers.

Crisis Management

McDonald’s has clearly expressed that they are willing to work with suppliers in the event of a crisis. The
Crisis Management Plan is a requirement of the Supplier Quality Management System in the event that
there are catastrophic quality issues with the supply of product. However, they have provided
stipulations where in the event that public address is needed, the supplier is needed to consult with
McDonald’s firstly to decide upon the best course of action. Such a policy shows collaboration between
McDonald’s and its suppliers to achieve a more synergistic approach to dealing with crises. It also
provides suppliers with a framework to implement crisis management and risk aversion into their
deliberate strategy, a key concept that top level management may find useful when designing and
updating their strategic plan. Further, the Crisis Management Plan shows interest on McDonald’s part to
assist the supplier in developing their competence for dealing with quality-related risks at the
managerial level. This shows increased capability to create value for interested parties by sharing
resources and competence and managing quality-related risks.

Fundamental Requirements for Suppliers

McDonald’s requires suppliers to demonstrate a commitment to meeting fundamental quality

requirements. They are required to document, implement and maintain a food safety and quality
management system. Supplier commitment to these requirements is supported by annual food safety
compliance audits, conducted by approved third party inspection agencies.

An overview of some of these fundamental requirements supports the company’s statements on

supplier quality standards. Facility Security and Food Defense plans are enforced to ensure that only
authorized persons have access to the facility, that they comply with all local fire and safety codes and
that they investigate fully all reported/suspected breaches of security. All facility stakeholders must
comply with Good Manufacturing Practice (GMP) requirements as per all laws and regulations.

Supplier processes and procedures must ensure training and implementation of employee hygiene
practices. Such practices must include the sanitary handling and delivery of safe and quality products to
McDonald’s restaurants. The supplier is also required to identify and provide training by qualified
individuals for all employees including contract workers at the facility. Records of training and
assessment are to be made available for review at any time by McDonald’s.

Supplier facilities shall be constructed to assure production of safe and quality products. The building
shall be maintained to prevent pest entry and to prevent pest harborage. A strong pest management
system is expected to be implemented and maintained. This is to ensure a work environment that
produces safe and quality products. Manufacturing equipment are to be of hygienic design: located to
allow proper maintenance and cleaning to protect the food product from allergen cross-contact and
contamination of food; to protect food contact surfaces or food packaging materials. Equipment shall be
in good repair to assure that production of product meets food safety and quality requirements.

Food Safety Management System

The McDonald’s company insists that all its food suppliers implement the fundamental Prerequisite
Program which includes personal hygiene requirements. The Hazard Analysis and Critical Control Points
(HACCP) plan shall be validated and implemented at all facilities. The HACCP plan shall also be reviewed
at least annually with proper revisions being made and documented as product or processes change. A
strong safety plan that includes physical hazards, chemical hazards and microbiological hazards shall
take in consideration all hazard analysis.

Suppliers shall ensure that food, food ingredients and food contact packaging comply with the
microbiological, chemical and physical criteria set McDonald’s. This will include microbiological,
chemical and physical testing as necessary in order to meet McDonald’s requirements and applicable
laws and regulations. Suppliers shall implement procedures to prevent any potential allergen cross-
contamination at the manufacturing facilities.

Policies and procedures must be documented to ensure that all ingredients, finished product and
product packaging (inner and outer) can be traced throughout their entire history from production to
distribution. A risk analysis must be conducted and documented on ingredients and raw materials to
assure compliance to food safety and quality requirements and avoid the threat of Food Fraud.

Product Requirements

The McDonald’s company commits its suppliers to ensure that all of their vendors of raw
materials/ingredients and primary packaging (that which comes in contact with food) comply with the
suppliers’ and McDonald’s requirements as well as applicable local laws and regulations. Vendor
processes will be assessed and must be made available for review upon request. The
materials/ingredients and primary packaging shall identify the critical quality product attributes, test
frequency and methods. Suppliers are required to establish, implement and demonstrate processes and
procedures that products released to the McDonald’s System meets the requirements specified in the
product specifications.

Verification and Continuous Improvement

In an effort to improve product quality, suppliers shall have processes and procedures in place for
measuring customer satisfaction including McDonald’s staff and distribution centres. Customer
complaints shall be analyzed to identify improvement opportunities before being shared with the
appropriate contact at McDonald’s.

Suppliers must establish and implement a process that incorporates: verification of their food safety and
quality management systems; methods, frequencies and responsibilities for the verification activities;
the conduct of routine inspection by trained and competent personnel to ensure standard operation
procedures and processes are followed; internal self-audits to determine food safety and quality
management systems compliance; external audits in alignment with McDonald’s expectations and the
evaluation of the results of planned verifications objectively and within timeframes required by
applicable laws and regulations. The results must be documented and communicated and preventive
and corrective actions taken shall be maintained to improve the effectiveness of its food safety and
quality management systems continually.

McDonald’s has been able to enhance the performance of its own organization and that of external
companies by providing the Supplier Quality Management System. Being a very cohesive and well-
rounded system, it is clear that quality is key in the McDonald’s Supply Chain. They have divided this
construct into seven guiding principles that are mutually beneficial for them and suppliers who provide
food for the McDonald’s restaurants. All of which have been in keeping with the key benefits of the ISO
in relation to Relationship Management.
Conclusion

In conclusion, Customer Focus, Process Approach and Supplier Relationship Management are the three
main QMPs analyzed. McDonald’s prioritize the health of their customers by indicating daily nutrition
and calorie consumption not limiting themselves to that only, McDonald’s also went through the
procedure to use the most natural products used in the food.

The second QMP, process approach, allowed the quality of the food to be the core strategy for the
company by implementing food safety standards by using fresh ingredients. The company also train
their employees for the proper food preparation. In addition, part of the company’s process approach is
focused on the emotions of environmentally sustainable customers by including “green packaging.”

Mc Donald’s supplier relationship management benefits the company by enhancing performance,

common goals and values, increased capability to create value and well managed supply chain. By
extension, Mc Donald’s food safety and quality management systems, in order to deliver quality, the
focus must be quality at all levels of business operation and procedure i.e with company records.
Management responsibility would be to always update its documentation to by audits and customer
feedback. McDonald’s Crisis Management Plan would be for a public address however, the supplier
would need to consult with Mc Donald’s firstly. The fundamental requirement is to document,
implement and maintain a food safety and quality management system complying with all safety codes.
Additionally, Mc Donald’s insist on food safety i.e. a strong safety plan that includes physical hazards;
chemical hazards and microbiological hazards shall take in consideration all hazard analysis. Suppliers
shall ensure that food, food ingredients and food contact packaging comply with the microbiological,
chemical and physical criteria set McDonald’s. Mc Donald’s also focuses on product requirements by
ensuring that all vendors of raw materials and packaging comply with the suppliers’ and McDonald’s
requirements as well as applicable laws and regulations. Lastly, as Mc Donald’s strive to improve
product quality suppliers shall have to follow processes in place for measuring customer satisfaction.

https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/food-quality-and-sourcing.html