Management Information System

of

PRESENTED BY

NAME : DHANANJAY MOKAL

ROLL NO. : 1006
SUBMITTED TO : MS. N. NANDINI

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HISTORY:-

McDonalds is the leading global food service retailer with more than 30,000 local restaurants
serving nearly 47 million people in more than 121 countries each day. Aiming to be the worlds
best quick service restaurant experience, McDonalds started its operation in India in 1996 and is
a leading fast food service retailer for its valued customers.

Mission Statement:-

To have the best employee stuff and deliver an excellent service.

Vision Statement:-

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best
means providing outstanding quality, service, cleanliness, and value, so that we make every
customer in every restaurant smile."

Product Line:-

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Management Information Systems:-

Introduction:

Mid- and upper-level managers rely on a variety of information systems to support decision-
making activities, including management information systems, decision support systems.

Management information systems involve three primary resources: technology, information, and
people, and the most important resource are people, as people are the customers and no business
would mean anything without its customers.

Management Information System is considered as one of the most important aspects of

organizations and companies in the world, due to the different impact of different aspects such as
globalization, improving communication technologies as well as the variability of the demands
of the customers.This project will focus on the different issues and aspects of McDonalds
regarding IT and Management Information System.

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Applications of Information Technology in McDonalds:-

McDonalds is considered as one of the most successful as well as famous brands in the whole
world. Improving the application of IT and Information System on the menu of corporate goals
of the company is considered as one of the priorities of the company.

The transaction processing and recording and financial management is one of the most important
aspects of the company where in IT is being applied. In addition, it can also help to improve the
customer relationship management, sales and marketing activities by having a real-time
transmittal of their restaurant inventory, point-of-sale or POS as well as financial data.

SQMS

McDonald's Supplier Quality Management System (SQMS)

The McDonalds Supplier Quality Management System (SQMS) standard applies to companies
who supply food products into the McDonalds fast food chain. This does not apply to the
suppliers of meat, who must comply with a different McDonalds standard. The standard is
intended to help McDonalds to supply consistently safe products of the highest quality that meet
their requirements, as well as all applicable laws and regulation.

McDonald's has created an apprenticeship program for prospective project managers, combining
classroom theory, on-the-job learning, and support from mentors in hopes of improving project
success rates.

How is implemented the Quality system:

The Employee

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 Are at work on time, are neatly dressed and are clean.

Must make sure that the customers constantly received safe food, which implies that the
employees must wash their hands often to remain clean.

Must follow certain standard operational producers, so the customers always receive
exceptional quality and services (like using gloves).

Employees rely on teamwork and high energy to get the job done.

"Keep the smile up" when serving.

The Food

Meat and fries have to be properly fried

Vegetables are thoroughly washed when used in the food

The restaurant

Should be clean

Have to be tidy, sparking and spotlessly clean

Food delivers fast, accurate and friendly service

Quality control

The McDonald's promise their customers by:

Quality services and Cleanliness (QSC) is our Pledge: QSC represents McDonalds 100%
commitment, that of its employees and suppliers to deliver the best and safest quality to its 47
million customers visiting over 30000 stores in 212 countries around the world.

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Information System :-

An information system (IS) collects, processes, stores, analyzes, and disseminates information
for a specific purpose. Like any other system, an information system includes inputs (data,
instructions) and outputs (reports, calculations). It processes the inputs by using technology such
as PCs and produces outputs that are sent to users or to other systems via electronic networks and
a feedback mechanism that controls the operation.

Information systems generally are classified into five categories:

Office information systems

Transaction processing systems

Management information systems

Decision support systems

Expert systems.

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POS System in McDonalds:-

It's a very useful way to finish the order quickly with less error. Also it helps the worker in front
of the screen not to forget asking customer about everything for example the size, number of
sandwiches and if making the order take away or not. Furthermore, it's all done by a system that
can save everything for the manager to check about the profits, loses or amount of order per day
at the end of each month or at the end of the year.

Transaction Processing Systems(TPS):-

Most of an organizations daily activities are recorded and processed by its transaction
processing system (TPS), which receives input data and converts them into output information
intended for various users. Input data are called transactions events that affect a business.

I think that McDonalds are using the right information systems for their companies
for example by using the TPS it let the employees have more time for their customers

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 and it also help them by saving time with applying this system , its faster and more
accurate to enter any data.

Transaction processing system also helps McDonalds in keeping track of their

suppliers as it record relevant information about suppliers such as supplier name,
address, the quality of the items purchased and finally the invoice amount. This helps
in reducing the possible complexity that the employees may face in physically
keeping contacts with all the suppliers and so eases process of ordering when in need.

A financial transaction is an economic event, it affects the firms assets, is reflected in

its accounting statements, and is measured in monetary terms. Sales of goods to
customers, purchases of inventory from suppliers, and salaries paid to employees are
all financial transactions. Everything else is a non-financial transaction. The
marketing department, for example, might add some demographic data to its
customer database. The information would be processed by the firms TPS, but it
wouldnt be a financial transaction.

Figure Transaction Processing System illustrates a TPS in which the transaction is a

customers electronic payment of a bill. As you can see, TPS output can consist not
only of documents sent to outside parties (in this case, notification of payment
received), but also of information circulated internally (in the form of reports), as well
as of information entered into the database for updating.

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IT is being applied in order to process the order and payment of their customers in efficient and
fast manners, then the data that had been gathered in their POS can be used in order to know the
flow or the trends of the customers buying behavior that can help the company to deal and meet
the demands and wants of their customers.

Decision Support System(DSS):-

By using the DSS it helps the company choose or make the right decisions based on the quality
of the data McDonalds has used WiFi in their restaurants to gather information about customer
practice and lengths of stay and sales, i think they were really brilliant with this idea with using
this system they can easily know how much the customers are staying and the more they stay
which means they are satisfied. And i think by using the MIS the managers of McDonalds can
easily look for future oriented .

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Payment System:

McDonald's is always looking for new and innovative ways to use technology to improve
customer service (www.qsrweb.com)." "McDonald is expanding its use of an electronic system
that lets customers pay for their orders using a cash-free keytag system originally developed for
Mobil gas station (www.ecommercetimes.com). The Speedpass is a transporter that can be kept
on a customers key chain." When a purchase is made, the gadget automatically sends a signal to
the credit card account,so that the purchase can be included on the customer's next monthly bill.
This process will allow McDonald's to move rapidly when dealing with orders and purchases.

In addition to that, the financial data that had been gathered from the POS will be helpful in
knowing the performance of individual store as well as the overall performance of the company
in the world that will be important in order to show the financial condition of the company to
their stakeholders.

Policies, Procedures and Systems:-

The entire management information system or MIS of the company focuses on the three different
purposes of information such as the strategic that mainly focus on the key ratios, strategic plans
and marketing analysis that can help to analyze the current situation of the company that will
help for establishments of strategies. The technical information focuses on the variance analysis
and exception reports that help to compare the development of the company, based on past data.
Above all, the operational information pertains on the current information such as the invoice,
customer orders, stock records and sales.

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Benefits of Information System:-

McDonalds used information systems to increase the productivity and provide its customer the
food with a very good quality that improved their kitchen with an advanced technology so that
the meal arrive fresher, tastier and hotter each time they order it. Also, McDonalds used the
information system to reduce the effort, cost and time they need to do their processes.
Furthermore, by using this information system, McDonalds have the ability to maintain its
customer and attract more customers. In this report I will write about systems that help
McDonalds to be one of the best restaurants in the world which are:

1- Made for you system:-

In this system the meal prepared after the person orders the meal not before [1] which mean
that while you are make the order the worker in front of the screen click on the what you order
and the order goes immediately to the kitchen where the chef made the meal just on the time he
saw the order not before so that the meal be more tastier and fresher arrives to the customer in a
few minutes.

2- Hyperactive Bob system:-

This system based on the computer vision and artificial intelligence systems employed by
robots, to manage the kitchens at so-called quick-service restaurants[2].In this system they use a
cameras on the roof of the building that monitor the entrance of the McDonalds restaurants and
the parking lots to see the number of people are coming to the restaurant when the workers are
busy to know how fast they need to be to make the meal and what amount of meats, chickens,
fries and other things they use needed and to make an expectation of meals that must be ready at
a period of time if there is lots of people to have their satisfaction.

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3- POS (point of sale) system:-

Its computer software used in a touch screen that Macdonalds restaurants use or handheld
devices. This system helps McDonalds to track the real time transaction and used to speed the
business process to ensure fast and accurate order for example sending the order to kitchen
screen and processing the credit card payment and other process that must be accurate. Also, the
cashier immediately knows what payment is due and the kitchen knows the coming up orders
and for how long a customer waited.

3 systems for McDonalds to manage records:

1. Store management system (SMS)

2. Restaurant training tracking system (RTTS)
3. People management information system (PMIS)

RTTS:-

For management team or above:

Stored information: management teams training record and system
e.g. self-study, training course in Hamburger U
Can check the level status of manager i.e. which course is suitable for this level, on-line test

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PMIS:-

Stored info: whole shops employment database

1. Payroll,
2. Training
3. Scheduling

Transfer: crew allocation

Assistance shop manager shop manager

Change info Approve info

Final Information

They have different login level

Auto analyze statistic of crew records e.g. pay leave, annual leave

In addition there are different departments that are responsible in generating the reports regarding
the MIS such as the financial department, purchasing department, Human Resource department
and sales and marketing department. The financial department focuses on the different reports
regarding accounts, debits and payroll; the purchasing focuses on the orders and stock selection;
the HR department focuses on the reporting regarding the levels of staffing, absenteeism, skills
as well as shortage; and the sales and marketing produce the reports regarding the turnover, sales
ration and market intelligence. All of the said reports can help to analyze the overall performance
of the company that can help the decision-making process.

Other interesting issues about Information System at McDonalds:-

1. First issue is to know who has access to the information system because it is important to
protect this system from potential competitors so it is better to implement a more secure
information system in the future that is more difficult to hack into it, as there is a lot of
companys would want access to the informations of McDonalds.

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 2. Second issue is to know where the data is coming from; if it is collected from the
customer, then the customer better be informed of this and they should agree to give this
information about themselves so it will mean more accurate computations of this data

3. Third issue is measurement errors, so in future it is better to implement superior ways of

presenting the information which the system provides and better ways of applying this
information to make more money, for example it would be better to have the system give
me information which I could.

4. Fourth issue is to teach or train the employees who have access to McDonald's
information system, how to use that information system in a way to benefit.

5. Fifth issue is how to make sure that the same information system is being used the same
way in every McDonald's branch all over the world.

Other Facts about McDonalds:

Using ADSL broadband connections to authorize transactions, McDonald's has been able
to reduce the time to process card payments from thirty seconds to just four.

But it's not just in the restaurants that new IT is expected to help the company's business.

McDonald's is using wireless technology to make savings in its IT infrastructure and

increase productivity.

But McDonald's has no plans to introduce radio frequency identification (RFID) tagging
into its supply chain management system.

'We've looked at RFID twice, but at the end of the day it's not worthwhile at the current
time,' says Tiley.

The high cost of specially designed tags and readers for freezer environments makes
RFID introduction unfeasible

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The Best system in McDonalds in our opinion :-

We choose the POS system "Scale of Point system" because We think this system is better at McDonald's ,
because as we know McDonald's one of the best restaurants in each place so most people deal with their meals
from McDonald's . There are many benefits of using this system such as : Time Reduction & Management using a
POS system in a restaurant can save time for servers, cooks , Error Control point of sales systems in restaurants
also eliminate, or at very least reduce, the rate of human error . Reduce Paperwork a POS system may include a
number of automated reports for features, such as payroll, marketing tools, customer data and accounting tools,
that eliminate the need for paperwork or additional systems. Faster Transactions. Using this system, the restaurant
is able to keep customers and attract customers and get what they need in the easiest way.

Suggestions and Recommendation:-

There is no doubt that McDonalds is considered as a global leader in terms of franchise

restaurants in the world. Many of the restaurants are being owned and control by owner-
operator and franchisees with the access to many of the global resources of the company
such as marketing, restaurant operations, real estate development, HR, training, learning
and development as well as quality control. Due to the said situation, the network of the
owner-operators is so huge, and the information is so intense. That is the reason why the
company is having a difficulty in developing and maintaining their Intranet that will help
to provide all the groups regarding their needs.

In order to solve that problem it will be important to redesign the intranet system of the
company that will implement the content management system of CMS that will help to
maintain in efficient and consistent manner the information across the site. Furthermore,
it is also important to consider the differences between the countries such as the language,
connection speed as well as personalized and customized information system.

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 Furthermore, it will also be important to improve the security and privacy issues of the
information of the company in order to ensure that no confidential information that can
affect the company and its stakeholders will be taken from the system of the company.
Furthermore, anti-virus and firewall must be improve and maintain in order to ensure that
there will be no illegal or unauthorized entities that will access the files and data of the
company. Above all, it is also important to ensure that there will be no viruses and the
likes that will destroy vital information of the company.

McDonalds should revise its product prices

There is still a lot of opportunities for McDonald to increase a number of outlets.

Refferences:-

http://www.mcdonaldsindia.com/our_story.html?v=2

http://mcdonaldsmis.blogspot.in/p/benefits-of-is.html

http://mcdonald11.blogspot.com/

http://www.aboutmcdonalds.com/mcd/corporate_careers/training_and_develo
pment/hamburger_university.html

http://mcdonalds-career.blogspot.com/2008/04/why-mcdonalds-is-
successful.html

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