Analyzing McDonald's Operations: Capacity, Demand, and Objectives

This report offers a comprehensive analysis of McDonald's operational strategies, examining its approach to capacity and demand management, and evaluating the implementation of the "four Ds" framework (Design, Direct, Develop, and Deliver). It delves into the application of level capacity, c...Read More

Managing business
operation

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Approaches which Mc Donald seems to take for capacity management to reconcile
capacity and demand .................................................................................................................1
P2 Analysing implementation of four Ds which is by the McDonald restaurant ......................2
P3 Evaluating the five performance objectives which mean for the operation in McDonald's . 3
4 Calculating the average number of customer which are arriving till average time .................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management defined as, it is the area of administration concerned with
creating or designing, and controlling the procedure of production and redesigning the product.
Operation which is in a strategic approach to increasing the performance of the company. In this
report , there is discussion about the various operations and approaches which is there in
organisation to reconcile the capacity along with demand. There is analysis of the
implementation of plan of action of four D's there is also evaluation of five objectives which are
there in organisation. There is calculation of the average customer drive through or take away as
the delivery(Winters, salesforce com Inc, 2019).
P1 Approaches which Mc Donald seems to take for capacity management to reconcile capacity
and demand
There are many approaches which is there requirement to take the capacity administration
for reconcile the capacity as well as demand.
Level capacity: This is one of the important strategy which there can be use to supply the
product according to their demand and need which is setting up uniform level of capacity in
some specific period of time. According to the scenario there is need to have some minimum
capacity which can help getting high demand and there is require to fulfil the demand and need
which may be done done by having some capacity which is should be their deliver the products
at the instant demand time which can also help in enhance in the delivery as well as lead to
profit(A., Matten, Glozer and Spence,2019).
Chase demand: This is the one where production is taken out at constant which mean
there high level of capacity when there is low requirement and during the high demand the
inventory capacity got decrease. It shows the inventory level low during the high demand of the
product included period and vice versa. This occur to the type of strategy where modification are
there which is relates to demand where it matched the demand which is selecting and firing the
employee. In this, there is control in the position of production along with the using the
inventories which is used to control the modification which is there in level of demand(Li, Xu,
Lin, P. and Huang, 2019).
Demand management: In the relation of MC Donald there is using the plan of action
which is looking forward to pull the strategy in which there is a creation on demand which is the
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retailer need to have the stock of such goods to direct deal with the consumers. Here this
demand build the profit and the high level of operation which helps in enhancing the business.
Here, MC Donald is able to full fill the demand with the help of their supply chain administration
which can help in getting execute the plan which is through nominal delay(Foong, and Chelliah,
2020).
P2 Analysing implementation of four Ds which is by the McDonald restaurant
There are the analysis of four D's which is there through the Mac Donald restaurant
which is given below:
Design: This is the one which having its own value in the complete procedure of
delivering of services which is the m Donald restaurant. In which goods and process design play
the important role. Product design occur to the design of the product which can be helpful in the
decision making process for which mac Donald refer to food product designer which needed
there in several customer base. Professional can help in selecting the ingredient, flavour,
fragrance etc. which very presentable, attractive and delicious to build the high demand of such
product which keep help to brand to acquire the high profitability along with the high demand.
Process design is to help getting the cost minimization. Which is there support the plan of action
of the organisation which is there to fulfil the market demand which is through efficiency and
adequate capacity(Cook, Jenne, and Cross, Dell Products 2019).
Direct: Management plays their role in the whole process where all the process is done
which is as per the direction of the administration which is there can give the assure about the
quality which involves the procedure of management along. This administration play its role in
the whole process which is there in the organisation to get product till the delivery of the goods
to the consumer which is through several processes. If there is any modification in the direction
of the process or any problems and difficulties is there then the procedure of management which
is responsible for such activity which require to be under control to get the effective process ,
which is the enterprise unit in the mac Donald.
Develop: This is the only which is there can help in enterprise to get some new plan of
action which can help in growth. This includes the brain storming where desired result is
evaluated then responsibility for implementation is there given to founder and then evaluation of
budget and after that building of implementation plan is regular(Fabris and Fawcett, International
Business Machines Corp, 2020).
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Deliver: After the production process is completed then its time to delivering the
finished goods to the consumer which is there in the present time as the drive through and Mac
Donald delivery. There is role of inventory management which are there may help in managing
the stock which is there is role of the inventory. This thing gives the advantage to acquire the
product as per the demand.
P3 Evaluating the five performance objectives which mean for the operation in McDonald's
There are five performance objectives which is evaluated for the production in mac
Donald and playing their own role in managing the complete business there which is there can
help in getting more profit. These five objectives given below.
Quality: This is the one of the normal and very important characteristics which is there
in the MC Donald. The aim is on the quality product which is there may help in delivering them
to their consumer. High quality product as well as less in price attracts the customer and the main
focus on the service along with less in price attain the consumer and the main focus on the
service which is giving the high quality service as well as product which can help in getting high
business. In this organisation it is the most focus on implementing some methodologies which is
there which help in giving the best quality services (Akpan and et. al., 2019).
Speed: In relation to giving the delivery in which consumer need to wait for their
complete products which takes some time. MC Donald is there working on reducing the bringing
time of the product which also comes under the service for which organisation is working for the
deliver the best service at affordable price which is there very nominal than their competitors.
Normal calculated time is around 5 min per customer which they also want to reduce it for
minimizing it (Gamare, D'souza, Kobayashi, N., Nakamoto, and Shirasaka, 2019).
Dependability: This is the one which occur to service on the time where the delivery of
the goods is punctual on time which is the part of the services where speed plays there high level
of act in the process of delivery of goods as the service.
Flexibility: This refers to the flexible in the product as well as working hours to the
employees which gives the trust towards the organisation.
Cost: This is very important characteristic where to be in competition, the organisation is
looking forward to reducing the production cost either giving the quality products in less price
which is being top in the market which there can help in increasing(Koentjoro, and Gunawan,
2020).
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4 Calculating the average number of customer which are arriving till average time
Average number of units in the system = u/(1-u)
= [5/ (1-5)]
= [5/-4]
= [-1.25]
= 1.25
Working Note:
u=ra/rs
=25/5
= 5
Average waiting time in the system= ts/(1-u)
= [5/ (1-1.25)]
= [5/-0.25]
= [-20]
= 20
Service rate= ts*12
= 5*12
= 60 Minutes
= 60 minutes per order
There are around 20 people per hour there for the delivery of their product which is there
for the orders. To decrease the waiting time there is need to show some improvement in the
waiting time which is there can help in getting huge consumer base in such limited period of
time. Using the technology and innovations and different online platform which can help in
getting order can help order in deliver, according to the arrival of the consumer which can help in
saving the waiting time period and also it include decrease time to get delivery in such limited
time which can help in getting huge position of consumer satisfaction which there can help in
generation high productivity which gives getting large profitability.
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CONCLUSION
This report include the overall discussion which is given above, firstly it is able to get
various approaches and strategies which there can help in reconcile the capacity along with
demand and need. There is discussion about some implementation of plan of action and few
analysis on five objective along with suggestion which can help in modification or improving the
time period in delivering procedure.
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REFERENCES
Books and journals
Winters, J., salesforce com Inc, 2019. Method and system for managing business deals. U.S.
Patent 10,423,909.Crane,
A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Li, M., Xu, G., Lin, P. and Huang, G.Q., 2019. Cloud-based mobile gateway operation system
for industrial wearables. Robotics and Computer-Integrated Manufacturing, 58, pp.43-
54.
Foong, W.M. and Chelliah, S., 2020. Understanding Organizational Culture and Managing the
Effectiveness of Knowledge Transfer: A Case Study on Japanese Firms and their
Business Affiliates in Malaysia. In Contemporary Global Issues in Human Resource
Management. Emerald Publishing Limited.
Cook, W.K., Jenne, J.E. and Cross, K.E., Dell Products LP, 2019. Managing the operation of
power supply units (PSUs). U.S. Patent 10,481,663.
Akpan and et. al., 2019 Managing the Underwriting Functions and Profitability Paradoxes of
Nigerian Insurers: A Pooled Panel Model Study.
Gamare, and. et. al., Dell Products LP, 2020. Managing project status using business intelligence
and predictive analytics. U.S. Patent 10,839,326.
Kobayashi, N., Nakamoto, A. and Shirasaka, S., 2019. Proposal of an Assurance Case
Description Method Considering External Environment of Systems: Application to
Operation of an Ice-Skating Rink. Review of Integrative Business and Economics
Research, 8(3), p.87.
Koentjoro, S. and Gunawan, S., 2020. Managing Knowledge, Dynamic Capabilities, Innovative
Performance, and Creating Sustainable Competitive Advantage in Family Companies:
A Case Study of a Family Company in Indonesia. Journal of Open Innovation:
Technology, Market, and Complexity, 6(3), p.90.
Fabris, A. and Fawcett, M., International Business Machines Corp, 2020. Avoiding peak energy
demand times by managing consumer energy consumption. U.S. Patent Application
16/212,561.
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