Sustainable Operation - Management
A Wendy’s hamburger fast food restaurant in Tocoa,
Honduras. Wendy’s strategic decisions emphasize operations
management for stability and productivity in all areas in its
current markets, mostly in North America. (Photo: Public
Domain)
Wendy’s applies the 10 strategic
decisions of operations management
(OM) to address needs in various
business areas. These 10 strategic
decisions are aimed at streamlining
Wendy’s activities. As the third biggest
hamburger restaurant chain in the world,
Wendy’s must streamline its operations
to effectively compete against aggressive
rms like McDonald’s and Burger King.
Wendy’s operations management efforts
are indicative of the company’s
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BUSINESS, MANAGEMENT
Wendy’s Operations Management, 10 Decisions, Productivity UPDATED FEB 7, 2017 | LAWRENCE GREGORY
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prioritization of business stability rather than international expansion. Nonetheless, the
10 strategic decisions of operations management are applied in a way that supports
Wendy’s potential expansion in more market areas.
Wendy’s operations management (OM) covers all of the 10 strategic decision areas for its
business. Wendy’s strategies are directed toward productivity and business stability, and less at
expansion in the global hamburger restaurant market.
Wendy’s Operations Management, 10 Decision Areas 1. Design of Goods and Services. Wendy’s emphasizes high output quality. This decision
area of operations management pertains to the design of the company’s products and
how it addresses business and market needs. In this regard, Wendy’s strategy is based
on product innovation to maintain product competitiveness.
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2. Quality Management. In this strategic decision area, Wendy’s objective is to maintain
high quality standards to match outputs and consumer expectations. The company
ensures that its operations managers are prepared to apply these standards at larger
scales when expansion starts. Wendy’s mission and vision statements emphasize high
quality.
3. Process and Capacity Design. Wendy’s operations management strategy involves
production lines. Many of the ingredients are prepared in the company’s production line
facilities. Also, even at Wendy’s hamburger restaurants, this system is used to maximize
process ef ciency and capacity utilization in all areas.
4. Location Strategy. Wendy’s strategy for this decision area of operations management
is typical in the fast food restaurant industry. For instance, the company maintains
strategically located Restaurant Support Centers as support hubs for its franchisees. On
the other hand, Wendy’s restaurant locations are based on proximity to town and city
centers.
5. Layout Design and Strategy. In this strategic decision area of operations
management, the goal is to ensure that layouts facilitate ef cient movement of people,
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materials and information. Wendy’s does so through standard layouts for its restaurants
and their kitchens. Total Quality Management is also used as basis for the layout design
and strategy of Wendy’s operations management in Restaurant Support Centers and
supply chain facilities.
6. Job Design and Human Resources. Wendy’s Restaurant Support Centers provide HR
training support for franchisees. In this way, the company satis es its operations
management objective of standardization in this strategic decision area. Wendy’s
corporate control is applied through these centers, ensuring optimal human resource
performance.
7. Supply Chain Management. This decision area of operations management involves
the adequacy of the supply chain. In this regard, Wendy’s strategic objective is to
diversify its supply chain. Even though most of its operations are in North America,
Wendy’s operations management approach maintains suppliers outside North America
for a stable supply chain.
8. Inventory Management. Wendy’s uses a combination of centralized and
decentralized approaches for this strategic decision area of operations management.
The company applies centralized inventory management to minimize stockouts
throughout the inventory. On the other hand, decentralization ensures that Wendy’s
operations management is capable of responding to uctuations in markets. For
example, Wendy’s restaurant managers are given considerable autonomy for managing
the inventory for day-to-day operations.
9. Scheduling. This strategic decision area of operations management focuses on
implementing schedules that address customers’ needs. Wendy’s uses automation for
scheduling many of its activities in the supply chain. However, majority of operations in
Wendy’s hamburger restaurants involve manual and semi-automated scheduling.
10. Maintenance. Wendy’s operations management strategy for this decision area is to
use localized maintenance teams. Franchisees access local maintenance teams and
services from the Wendy’s Restaurant Support Centers. The company’s operations
management also includes in-house maintenance teams for some areas, such as supply
chain facilities.
Wendy’s Productivity Measures Wendy’s productivity is measured through a wide variety of criteria. Variations among
franchisees’ operations management also lead to differences in the productivity
measures used. The following are some of the most notable productivity criteria
considered at Wendy’s:
1. Stockout rate (inventory management productivity)
2. Orders ful lled per hour (Wendy’s restaurants’ productivity)
3. Rate of problems solved (Wendy’s Restaurant Support Centers’ productivity)
References
Lawrence, K. D., & Weindling, J. I. (1980). Multiple goal operations management
planning and decision making in a quality control department. In Multiple Criteria
Decision Making Theory and Application (pp. 203-217). Springer.
Liu, S., & Jiang, M. (2011). Providing Ef cient Decision Support for Green Operations
Management: An Integrated Perspective. INTECH.
Najdawi, M. K., Chung, Q. B., & Salaheldin, S. I. (2008). Expert systems for strategic
planning in operations management: a framework for executive
decisions. International Journal of Management and Decision Making, 9(3), 310-327.
Schrunder, C. P., Galletly, J. E., & Bicheno, J. R. (1994). A fuzzy, knowledge‐based decision support tool for production operations management. Expert Systems, 11(1),
3-11.
The Wendy’s Company, Form 10-K, 2013-2014.
Verdaasdonk, P. (1999). De ning an information structure to analyse resource
spending changes of operations management decisions. Production Planning &
Control, 10(2), 162-174.
Verdaasdonk, P., & Wouters, M. (2001). A generic accounting model to support
operations management decisions. Production Planning & Control, 12(6), 605-620.
Wendy’s International, LLC, Form 424B3, 2001.
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