Case: McDonald's Firdaus Alamsjah and Ade Sukadis 1 In modern...

Case:

McDonald's Firdaus Alamsjah and Ade Sukadis 1 In modern management, quality is determined by the customer and not just limited to the product (quality). McDonald's translates customer satisfaction into food (product) quality, service quality, and outlet quality. The quality of the food and outlets is determined by the McDonald's headquarters and is rigorously inspected to ensure that these standards are met and this applies worldwide. Service quality, which can be divided into service time and service friendliness, is a very important critical-to-quality component, and it is difficult to maintain its consistency. In the last three months, there were almost 50 customer complaints caused by inconsistent service quality, especially service time at several outlets in Jakarta.

For solving the problem, management has decided to form a special team and immediately conduct a pilot project at two outlets in Jakarta, namely: McDonald's Pondok Indah and McDonald's Cikini. The team was given four weeks to resolve the above problem. The team that has been formed then pays attention to the service process at the counter. It started when Customers entered the queue in front of each opened counter. Customers can choose based on economical packages (Paket Hemat) that have been predefined (and given a number), custom orders based on tastes and needs, or a mix of both if ordering more than one. After the order is finalized, the counter staff is assisted by kitchen staff to prepare the order. If there is an order that cannot be fulfilled directly, the customer is given a number and the order will be delivered later. The counter staff then collects the payment and customers are now looking for empty seats to eat their warm meals. The team conducted a survey and found that service time, especially order time, is an important factor for customers (critical-to-quality). In the field review, the team noticed that there are two possibilities to define service time, it can be calculated from the time the customer enters the queue or from the time the customer orders until he receives his order. The team then agreed that the service time did not include queuing time because of the difficulty in determining the time. To determine the Performance Standard, the team again conducted a survey of 100 customers by asking the following questions: "To guarantee your satisfaction, how long are you willing to wait from the time you order until you get the order and finalize your payment?" The results are as follows: Average = 76 seconds Median = 75 Minimum = 30 Max = 120 Range = 120 - 30 = 90 Std Dev = 20 It turns out that the management is not satisfied if it only fulfills an average of 76 seconds. They want to deliver above the customer expectations and set the following targets: Customer expectation Target Min = 30 seconds Min = LSL = 30 Mean = 76 Vs. Target = 60 Max = 120 Max = USL = 90 The management intended to promise a service time of 60 seconds, but previously they asked the team to review the actual service time at the two outlets that were used as the pilot project. To determine the current service performance, the team estimates several inputs that affect service time, namely: ? Outlet location ? Service type: drive-thru or dine-in ? How to order: package or non-package (custom) The team consisted of two people each, one team took data in Pondok Indah and the other in Cikini and the results can be seen in Exhibit 1. Now the team must prepare their presentation materials to management using the six sigma methodology. They then gathered at McDonald's Bintaro to make a fact-based proposal before it was finally implemented in the field and tested in all outlets in Indonesia.

Exhibit 1

Service time [second] Outlet location [1 = Pondok Indah, 2 = Cikini] Service type [1 = Drive-thru, 2 = Dine-in] How to order [1 = Package, 2 = Non-package] Time of event [hr.min]

Please see attached picture for the detail table.

Question :

1.Quality Tools

a. please make a cause-and-effect diagram on inconsistent service quality from the case above. You may add your own assumptions if necessary. What can you conclude from this cause-and-effect diagram?

b. Aside from Cause-and-Effect Diagram, what other quality tools can be implemented to solve the problem? Explain why.

2.Control Charts

a. Develop the control charts from the measurement result.

b. Interpret the control charts and make your own conclusion. Out of the three inputs that affect the service time, which one(s) are the source of the variation?

3.Capability Index

a. Calculate the Capability Index for the two outlets and analyze the result.

b. Based on the result of No. 2 and 3, what can you propose for the management of McDonald's Indonesia? Describe your proposal for process improvement.

4. Failure Modes and Effects Analysis, Quality Metrics

a. Make and analyze an FMEA for service quality improvement in this McDonald's case.

b. Explain at least three performance measures that are necessary for service quality in this case

Transcribed Image Text:

Service How to Sub Time of No. Service time Location type order Group event 1 50 1 1 1 111 11.50 2 45 1 1 1 111 11.51 3 59 1 1 1 111 11.57 4 45 1 1 1 111 11.59 5 44 1 1 1 111 11.59 6 42 1 1 1 111 12.04 7 45 1 1 1 111 12.08 8 39 1 1 1 111 12.12 9 74 1 1 1 111 12.13 10 60 1 1 2 112 11.54 11 108 1 1 2 112 11.54 12 82 1 1 2 112 12.09 13 68 1 2 1 121 11.52 14 78 1 2 1 121 11.53 15 60 1 2 1 121 11.53 16 70 1 2 1 121 11.53 17 65 1 2 1 121 11.55 18 63 1 2 1 121 12.05 19 54 1 2 1 121 12.05 20 67 1 2 1 121 12.07 21 39 1 2 1 121 12.11 22 71 1 2 2 122 11.56 23 100 1 2 2 122 11.59 24 90 1 2 2 122 12.04 25 80 2 1 1 211 11.51 26 78 2 1 1 211 11.52 27 60 2 1 1 211 11.54 28 50 2 1 1 211 12.06 29 80 2 1 1 211 12.06 30 87 2 1 1 211 12.08 31 81 2 1 2 212 11.55 32 134 2 1 2 212 11.56 33 58 2 1 2 212 11.56 34 74 2 1 2 212 11.58 35 167 2 1 2 212 11.58 36 148 2 1 2 212 12.02 37 93 2 1 2 212 12.02 38 92 2 1 2 212 12.10 39 119 2 1 2 212 12.11 40 40 2 2 1 221 11.50 41 38 2 2 1 221 11.50 42 36 2 2 1 221 11.52 43 53 2 2 1 221 11.55 44 31 2 2 1 221 11.57 45 37 2 2 1 221 11.58 46 35 2 2 1 221 12.01 47 28 2 2 2 222 12.01 48 69 2 2 2 222 11.50 49 32 2 2 2 222 11.51 50 50 2 2 2 222 11.57 51 49 2 2 2 222 12.03 52 37 2 2 2 222 12.07 53 60 2 2 2 222 12.09 54 51 2 2 2 222 12.10 Service How to Sub Time of No. Service time Location type order Group event 1 50 1 1 1 111 11.50 2 45 1 1 1 111 11.51 3 59 1 1 1 111 11.57 4 45 1 1 1 111 11.59 5 44 1 1 1 111 11.59 6 42 1 1 1 111 12.04 7 45 1 1 1 111 12.08 8 39 1 1 1 111 12.12 9 74 1 1 1 111 12.13 10 60 1 1 2 112 11.54 11 108 1 1 2 112 11.54 12 82 1 1 2 112 12.09 13 68 1 2 1 121 11.52 14 78 1 2 1 121 11.53 15 60 1 2 1 121 11.53 16 70 1 2 1 121 11.53 17 65 1 2 1 121 11.55 18 63 1 2 1 121 12.05 19 54 1 2 1 121 12.05 20 67 1 2 1 121 12.07 21 39 1 2 1 121 12.11 22 71 1 2 2 122 11.56 23 100 1 2 2 122 11.59 24 90 1 2 2 122 12.04 25 80 2 1 1 211 11.51 26 78 2 1 1 211 11.52 27 60 2 1 1 211 11.54 28 50 2 1 1 211 12.06 29 80 2 1 1 211 12.06 30 87 2 1 1 211 12.08 31 81 2 1 2 212 11.55 32 134 2 1 2 212 11.56 33 58 2 1 2 212 11.56 34 74 2 1 2 212 11.58 35 167 2 1 2 212 11.58 36 148 2 1 2 212 12.02 37 93 2 1 2 212 12.02 38 92 2 1 2 212 12.10 39 119 2 1 2 212 12.11 40 40 2 2 1 221 11.50 41 38 2 2 1 221 11.50 42 36 2 2 1 221 11.52 43 53 2 2 1 221 11.55 44 31 2 2 1 221 11.57 45 37 2 2 1 221 11.58 46 35 2 2 1 221 12.01 47 28 2 2 2 222 12.01 48 69 2 2 2 222 11.50 49 32 2 2 2 222 11.51 50 50 2 2 2 222 11.57 51 49 2 2 2 222 12.03 52 37 2 2 2 222 12.07 53 60 2 2 2 222 12.09 54 51 2 2 2 222 12.10