Managing Business Operation: Case Study

Managing Business Operation
Case Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Approaches for capacity management by McDonald to reconcile demand and capacity...........3
Implementation of four Ds by the McDonald's restaurants........................................................4
Five performance objectives importance in operations in McDonald's......................................5
Average number of customer arriving at the till along with average time they must wait before
existing McDonald's drive Thru..................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Administration of business practices that help in creating the highest level of efficiency is
known as operation management (Bazmohammadi and et.al., 2018). This study is based on
McDonald's that makes use of effective strategies for improving customers satisfaction and
image as well. It will discuss effectiveness of JIT, TQM and other approaches.
Approaches for capacity management by McDonald to reconcile demand and capacity
McDonald serves to around 70 million customers a day but this number can be
fluctuated. For providing services to customers it is important for McDonald to have all
resources and raw materials at its store. It is found that initially as per its traditional operation, it
held raw materials and finished products at its store or warehouse as reserve and it helped this
company to make use in case of items run out of stock. But it is found that managing such
inventories are expansive and it is beneficial in cases when items run out of stock otherwise it
requires space for keeping this and also increase overall inventory cost. So, for managing
capacity as well as demand of customers, it implemented product management approach that is
known as Just in time.
Just-in-time: As per this approach of operation management, raw materials and other
materials are being acquired and purchased as per the demand of customers or when they are to
be used in production process. It reduces cost of production, warehouse space cost and overall
inventory cost (Shen and et.al., 2020). Pull strategy in the control of production is the main key
of this approach. There are several benefits that this company can take by making use of this
approach such as:
 It improves overall quality of products as it encourages employees for taking active
participation in the production process. It also helps in decreasing errors or wastes that
also lead to improved quality of final goods.
 Company can provide or deliver products to customers in a timely manner.
 Cost reduction of inventory that can increase profit.
 It prevents over production that can reduce cost and waste as well.
 It helps in performing functions smoothly and effectively.
All these benefits can al;so help this company and employees in maintaining of all
equipments as this process or approach of capacity management save time. So, they can use their
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