Data Analysis Case Study

This case study explores the approaches taken by McDonald's for capacity management, the implementation of four D's in its restaurants, evaluation of performance objectives, and calculations for average waiting time in the Drive Thru. It provides insights into managing business operations effectively.

Data Analysis Case study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Approaches that McDonald's seem for taking in context to its capacity management in order
to reconcile capacity as well as demand......................................................................................1
2. Analysing implementation of four D's through restaurants of McDonald's............................2
3. Evaluation of five performance objectives means for McDonald's operations.......................3
4. Calculations about average number of customers arriving at till as well as average time they
should wait prior exiting McDonald's Drive Thru.......................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Data analysis could be defined to a process for inspecting, cleansing, transforming along
with modelling information with the hope of discovering useful data, supporting decision making
together with informing conclusions (Barda, 2019). Managing business operations effectively
ensure successfully transforming materials into valuable commodities and timely delivery of
goods to attain project success. For data analysis, considered organisation is McDonald's which
is popular as fast food brand with nearly 36000 restaurants in about 100 countries. Key revenue
sources of the enterprise comprises of rent collection, royalties, sales at restaurants and hence
forth. It offers wider choices of food including milkshakes, French Fries, chicken and multiple
kinds of deserts.
The assessment answer various approaches that organisation seems to undertake for
capacity management so to reconcile demand and capacity. It further analyse execution of four
D's by organisational restaurants and evaluates five performance objectives mean for operations
of the company. At last, it calculates average number of people that arrives at till along with
average time that wait prior exiting Drive Thru of entity.
MAIN BODY
1. Approaches that McDonald's seem for taking in context to its capacity management in order to
reconcile capacity as well as demand
Capacity management is termed to an act of ensuring that an organisation maximises
potential practices as well as production output in all kinds of circumstances (Bocu and
Costache, 2018). Managing capacity is a continuous effort that business managers undertake
through reducing cost, meeting customer expectations, engaging new potential market and
providing quality of service. Purpose of capacity management in an organisation is to generate
and maintain an accurate capacity plan, determining requirement of capacity for meeting exiting
along with future workloads. In context to McDonald's, mentioned below are some of
approaches of capacity management that seem to be taken for reconciling capacity addition to
demand:
Demand management: It is said to a capacity management approach for forecasting,
planning as well as managing demand for offerings. In context to McDonald's, use of the
approach have higher potential to enable the organisation for adjusting capacity so to meet
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variations in demand along with managing adequate demand level with suitable tactics. With this
approach, it becomes easier to reconcile capacity through making attempt for matching demand
levels with demand expectations for products.
Just In Time: Another approach of capacity management that aims to reduce durations
in production systems along with response towards demand of customers and capacity of
suppliers (Lessing and Willis, 2019). Managers of McDonald's seems to take Just In Time for
controlling flow of stocks and reconciling demand for its various products. With this,
organisational managers gains sufficient efficacies by multiple deliveries related to minimal
quantities for catering instant demand and capacity within food production chain.
Chase approach: It is described as the notion to chase a demand set by market. The
approach assist to match production of company with demand and do not carry out leftover
commodities. In case with McDonald's, taking chase demand approach saves costs to reconcile
duration and managing shorter capacity. It requires that an organisation have potentials for
readily changing existing output level or capacity.
2. Analysing implementation of four D's through restaurants of McDonald's
Operational management in effective manner is crucial for business as it aids to manage,
control together with supervise goods, people and services. It ensures that all resources of
enterprise are converted properly that enhances values for customers and organisation. Following
is analysis of implementation of four D's by restaurants of McDonald's:
Design: It is all about planing processes of organisation that are associated to develop
strategies for betterment of entity (Sukawati and et.al, 2020). At most basic level, designing
plays key role for an organisation. In case with McDonald's, for design aspects managers focuses
on product as well as process design. They design all products along with processes in such
manner that values customers expectations and meet their demand. It have been analysed that
product design and process design benefit the organisation in creating values for customers and
successful business development in the competitive globe.
Direct: It is associated to providing guidance to employee so to ensure that they perform
activities as per decision making in designing aspect. Herein, all employees are directed for
making relevant actions with the aim of delivering values to customers that enters in the stores or
restaurants. In case with McDonald's, it is responsibility of restaurant manager to provide
directions or instructions as per processes that are effective to achieve determined goals.
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Moreover, when some processes are changed or relevant changes are made by managers in
working of people then accurate directions are provided to each workforce to deliver positive
experiences to customers and retain them.
Develop: It is related to making improvements in strategies and tactics of company for
attaining predetermined objectives. In operations management, develop is said to renewing
production strategies or techniques for serving customers in better ways. In case with
McDonald's, restaurant managers have developed Speedee Service System for epitomising
within fast food industry. Moreover, restaurant have also developed strategies in inventory
appraisal, employee management as well as Covid-19 related challenges in operations
management.
Deliver: It includes executing all operations concerned with facilities, employee
management and hence forth. In all restaurants of McDonald's, all products are delivered timely
with respect to inventory management. Moreover, for delivering products to customers, Drive
Thru, McDelivery and many more are used by the entity. Also, delivery guides the managers to
manage existing inventory and meeting demand of customers.
3. Evaluation of five performance objectives means for McDonald's operations
Performance objectives could be said to particular end outcomes which contributes
widely in success of organisation (You and Guzman, 2019). These are necessary for devising
clear objectives for employees as well as challenge manpower for attain maximum outcomes in
order to promote growth of company together with making continuous improvements. In an
organisation, performance objectives should be clear addition to guide action. Following are
performance evaluation of five performance objectives of McDonald's:
Quality: The performance objective of McDonald's raises quality of offerings as well as
ensures to maintain effective customer services. It have been evaluated that McDonald's works
well on the parameter of quality. It works on quality mechanisms for offering products at high
quality. The organisation strives for making necessary changes in its product status when they
fails to meet level of defined quality to serve customers and retain them for longer durations. It
ensures that all its restaurants maintain high standards of quality.
Speed: The domain is concerned with time taken by organisation to deliver products to
its customers. From the performance objectives of McDonald's speed domain, it have been
evaluated that the company deliver products to customers speedily and is making improvements
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in waiting time to attain drive through experiences. The entity also makes effective usage of
advanced machines along with automated technologies for performing with speed to meet
customers demand.
Dependability: The performance objective assesses the ways an organisation is
dependable on other factors. As per results of the objective, it is evaluated that McDonald's is
largely dependant on technologies and is striving for improving efficiency of its operations. It is
true that all business owners are dependent on others for performing jobs on time to achieve set
objectives promptly.
Flexibility: It involves the potential of a company to make changes in activities,
processes and strategies (Zhao, 2018). As per changes made by restaurant of McDonald's, it is
evaluated that the company designs and re-designs strategies by keeping customers in mind. The
entity have attained favourable outcomes with being flexible in devising and implementing
strategies to reach heights.
Cost: It is an essential aspect in an organisation which leads to create competitive prices.
From the performance objectives of McDonald's related to cost, it is evaluated that the entity
considers cost as a key objective for minimising cost for becoming able to sell food products in
lower prices than competitors.
4. Calculations about average number of customers arriving at till as well as average time they
should wait prior exiting McDonald's Drive Thru
Arrival rate (ra) = 25 customers per hour (as provided)
Service time (ts) = 5 minutes on an average (as provided)
Service rate (rs) = 60/5 = 12 customers per hour
Utilisation rate (u) = ra/rs = 25/12 = 2.08
Average number in system = u / (1-u) = 2.08 / (1-2.08) = 1.92
Average waiting time in queue = [u / (1-u)]*ts = [2.08 / (1-2.08)]* 5 = 9.62 minutes
Average waiting time in system = ts / (1-u) = 5 / (1-2.08) = 4.62 minutes
From the above calculation, it can be seen that average time for which a customer has to
wait in the queue is 9.62 minutes while the system shows 4.62 minutes waiting. Company needs
to reconcile both the figure to improve its efficiency. They can do so by improving their delivery
service timing in practical which will not only improve their delivery effectiveness but will also
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contribute in their expansion of operations and improved profitability. They will be able to serve
more customers in lesser time-frame and which will help them serve more customers. Prompt
delivery services are well-appreciated by customers and it will help outlet in improving their
number of loyal customers. For this restaurant needs to use its manpower in a smart way by
scheduling their operations in such a way that more customers can be served in a reduced waiting
time level. Also, in the wake of Covid-19 pandemic, it can make use of automated technology to
reduce waiting time such as improving the packaging time and order placing time. It can make
facilities for pre-order and swipe payments so that whole transaction process will take lesser time
to complete one delivery cycle on an order.
CONCLUSION
From the above information, it is concluded that data analysis comprises of diverse facets
addition to approaches which includes techniques utilised in domains of distinct business, social
science and so on. Key approaches related to capacity management that assist in reconciling
demand and capacity and demand management, just in time and chase method. For all
organisations, managing operations is essential.
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REFERENCES
Books and Journals:
Barda, I., 2019. Just about managing: dealing with the threats to industrial systems. Computer
Fraud & Security. 2019(9). pp.11-14.
Bocu, R. and Costache, C., 2018. A homomorphic encryption-based system for securely
managing personal health metrics data. IBM Journal of Research and Development.
62(1). pp.1-1.
Lessing, B. and Willis, G. D., 2019. Legitimacy in criminal governance: Managing a drug
empire from behind bars. American Political Science Review. 113(2). pp.584-606.
Sukawati, T. G. R. and et.al, 2020. Managing corporate sustainability by revitalizing Balinese
cultural identity. Polish Journal of Management Studies, 21.
You, K. and Guzman, G., 2019. Managing institutional complexity through strategy and
structure: the experience of Sri Lanka’s peak business interest associations. Review of
Social Economy. 77(4). pp.469-492.
Zhao, Y., 2018. Managing Chinese millennial employees and their impact on human resource
management transformation: an empirical study. Asia Pacific Business Review. 24(4).
pp.472-489.
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