Approaches and Performance Objectives in McDonald's Capacity Management

Data analysis case
study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Approaches adopted by McDonald’s for its capacity management.......................................1
Implementation of the four D's by McDonald’s.....................................................................2
Five performance objectives mean for the operation in McDonald’s....................................2
Calculating the average number of customer which are arriving till average time................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
Data analysis can be defined as the examining, interpreting, determining and observing
the data given so that further estimation and prediction can be done to perform some task in an
organization (Chen, He and Paudel, 2018). Business operations can be defined as the
management of functioning of a business in which company performs it's major and minor
operations both for better productivity in an organization. The following discussions are based on
the company, McDonald’s, approaches adopted by the firm to maintain it's capacity
management, implementation of four D's, performance objectives of the company, analysis of
challenges and solutions with conclusion in context of McDonald’s.
MAIN BODY
Approaches adopted by McDonald’s for its capacity management
JIT – Just in time management
It is defined as the methodology which aims at reducing the time of production and
reduction in response time from suppliers to customers. McDonald’s has adopted this approach
for capacity management of inventory as per the capacity and demand of external and internal
stakeholders. McDonald’s has used this approach as they do not keep the inventories at large
scale, they acquire stock whenever needed for the particular stage of production as per the
requirement of that raw material. This approach has benefited the company in decreasing the cost
of production which has resulted in the significant savings for the firm due to decrease in
inventory levels (Heeringa, West and Berglund, 2017).
JIT system used by McDonald’s has some aspects such as it has a feature of reducing
inventory in supply chain, this helped the firm in fulfilling the demands of the customers on an
instant basis because of catering minimal quantities of deliveries in the food production chain at
McDonald’s. It has also applied the pull system using this approach which assist in control of
production and raw materials. Moreover, it has also supported in the involvement of employees
in participation in such approaches and processes.
There are some features of just in time management which has supported the company in
savings their cost of production and inventory or raw materials such as this approach helps in the
flow of production in a smooth and uniform manner without any complications associated with
it. The most important feature is the pull method which assist in coordination in stages of
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