Managing Business Operations

This report discusses the approaches used by McDonald's for capacity and demand management, analysis of four D's in relation to McDonald's operations, evaluation of performance objectives, and calculating average customer arrival time.

Managing Business
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
What are the approaches that can be used by Mc Donald for reconciling capacity and
demand?......................................................................................................................................3
Analysis of four D's in relation to McDonald’s..........................................................................4
Evaluation of five performance objectives which mean for the operation in McDonald’s........5
Calculating the average number of customer which are arriving till average time.....................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Management business operation is defined as the area in which designing and controlling
of production and redesigning processes takes place. This is the dimension in which production
of product and services takes place along with examining the same. This signifies as one of the
most important function existed within business which is helpful for the organisation in order to
manage human resources, marketing and other functions as well (Wibisono and et. al., 2016). In
this report case study related to McDonald's which is an American food organisation founded in
the year of 1940. The report is going to cover various approaches related to capacity
management adopted by McDonald's. Besides this an examination related to four D's strategies is
also being included in order to provide quality within business. Along with this the company is
keeping five objectives for evaluation of overall performance which is analysed in this report. At
last calculation of average customer drive from drive thru and take away will be calculated.
What are the approaches that can be used by Mc Donald for reconciling capacity and demand?
Capacity management is highly significant in order to meet demands of potential and
target customer existed within market. This is helpful in utilising resources in effective manner
so that productivity and profitability of overall business can be enhanced. In the given scenario
as McDonald's is offering products which are heavy in market demands so this is imperative that
the company adopts prominent techniques of capacity management so that to meet needs of their
customers in appropriate manner. In the industry of fast food for every organisation this is very
essential that they minimise time gap of order and delivery in order to gain high customer
footfall. In the context of McDonald's the company is using various capacity management
techniques and the same are elaborated as under:
Level Capacity: This technique is associated with direct output in which customer
demands are aligned with food and services rendered by an organisation. Under this management
of McDonald's is trying to recognise resources which are helpful for them in using fuller capacity
of resources available in the organisation which may lead in meeting expectations of customers
in direct manner (Smoliy and et. al., 2019). This aspect is helpful for McDonald's in minimising
their overall cost and reduce time gap between order and deliveries. This is being examined that
McDonald's is wholly focused over minimising their cost of operations and production in order

to make their product reach to customer in minimal cost and price as well. This can be said that
level capacity approach is able to solve out purpose of McDonald's in direct manner.
Chase Demand: This is also regarded as a significant strategy which can be used by
business in order to align their production as according to market demands. In this aspect
production is associated with meeting current market demand of business offerings without
keeping any inventory of product and dealing with supply shortage as well. In this aspect the
managerial head of McDonald's is required to anticipate future demands of their output so that
they can arrange required amount of raw material at early stage (Mendi and Costamagna, 2017).
In order to keep appropriate control this is very necessary that they manage stock with just in
time approach.
Demand Management: In this aspect McDonald's is adopting effective strategies in order
to manage their supply level in order to meet level of expectations of customers and manage long
tenure relationship with them as well. Management department of McDonald's is analysing
market demand by using various methods so that to examine regarding future requirements in
order to align business objectives with market scenario. Besides this the company is working on
encouraging their supply chain management system by implementing pull strategy in order to
understand regarding actual market demand existed (De Anca and Vega, 2016).
This can be concluded by above mentioned information that different approaches can be
used by McDonald's in order to manage their capacity such as level of capacity, demand
management and chase demand. These approaches are having direct implications on minimising
cost of the business so that product can be reached out to customer in economic manner and by
utilising resources in effective manner.
Analysis of four D's in relation to McDonald’s
Managing operations is regarded as the process which is associated with taking decisions
related to process, structure and practices adopted. The four D's analysis in relation to
management are design, develop, direct and deliver. In the context of McDonald's these aspects
are elaborated as under:
Design: This is one of the prominent aspect which is included with providing services
and delivering product in appropriate manner (Ganguly, Chatterjee and Rao, 2018). Product
designing plays significant role in attracting population in impactful manner due to which they
can take decision regarding buying. In the context of McDonald's the company is examining

design of their products in order to provide varied quality and variants in products. This is the
manner in which McDonald's is creating demands in market and enhancing their customer base
as well. The process design is one of the major dimension which is helpful in minimising cost
and attaining high profitability as well.
Direct: For performance of various activities this is highly essential that direction process
executed in primal manner. In this manner all the authorities are required to provide appropriate
instructions so that all the activities can be executed in effective manner. These directions are
helpful in attaining higher productivity and formativeness within business. These activities may
lead in minimising challenges that could help in enhancing performance in overall manner
(Bruninx and et. al., 2017).
Develop: This is the aspect which is helpful in assisting such business strategies that may
help in gaining success and growth options (Pawar and et. al, 2016). In this manner
brainstorming is one of the prominent aspect through which execution of various
responsibilities can be performed. This is highly imperative for McDonald's that all the
prominent strategies can be adopted by them in such a way that the same can be aligned in
effective manner.
Deliver: This is the step production of the product get finished and after this the whole
concentration of McDonald's is emphasised over meeting customer expectations. In this manner
inventory management can assist the company to meet expectations and needs of their customers
(Zhang and Grossmann, 2016).
Evaluation of five performance objectives which mean for the operation in McDonald’s
Quality: As quality is the main element where McDonalds focus as high quality standard
is adopted by it so that it can manage performance of organisation easily. Relates to standard
quality services and products Mcdonalds established effective policies and guidelines and it also
specifies that it is compulsory to adopt and follow regulations and policies at every branches of
organisation (Zurich and Documentation, 2018). As daily inspection is perform by company and
time to time it check food items quality. All their objectives provide effective contribution to
serve the purpose of performance improvement and it also support to maintain healthy customer
relation & services. Mcdonalds consider those objectives that are useful to generate positive
impact on company productivity so it effectively get customers loyalty.

Speed: Quick delivery system is adopted by the brand to attract large audience. If items
are deliver on time than it gives satisfaction to customers (Jogaratnam, 2017). The brand said
that many of the issues with order speed are result to add new items quickly in the menu. Since
adding new product is core to growth strategy to Mcdonald's , it tends to reason the company
would make its efforts on eliminating obstacles that inhibit the ability to do so.
Dependability: If Mcdonalds offer their product with great quality at affordable prices as
compare to their competitor that it capture large market area . It also tends to increase customer
dependence on their products (Islami, Mulolli and Mustafa, 2018). company processes have
consistently meet promised product or service delivery time . McDonald's has dependence
process for audience by providing meal at accurate time. The brand has well skilled and qualified
employees who deliver food item on time and every individual has assigned some specific job.
Flexibility: As it is considers as first objective in this it covers such factors that
determine overall performance of operations of Mcdonalds. Brand try to follow all those
principles that help to obtain all the three element vision, mission as well as goals of organisation
(Lisowska, 2018). Good flexibility is also provided by company to their workforce in terms to
working condition and it provide more flexibility to customers which helps to take benefit of
brand items and service at any time.
Cost: Mcdonalds always concerned regarding the product cost because in every business
cost consider as important aspect that help to deal with large population. The main objective of
brand is to charge convenient and pocket friendly to their consumers so brand can take
competitive advantage in comparison to their competitors (Doménech and Martorell, 2016). It
supports to increase profit upto maximum level so that brand can generate easily more revenues.
It is observe that lower cost tends to increase productivity and performance of the brand
Mcdonalds (Gabriel and et. al., 2016).
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
Using advance technology and online platform help in getting order and support to
deliver as per customer arrival that tends to save waiting time and also present there for some
time to get the delivery on some limited period of time (Direction, 2016). It may be a challenge
to get the delivery in that limited time that can help to get high level of audience satisfaction as it
can help in high productivity generation as it also can help in earning large profit (Tabouli
2016).
CONCLUSION
After deep analysis and study it is conclude that operation management plays an
important role for development of the organisation. In this assignment company consider
various different approaches that help to maintain as well as control capacity management of the
organisation. The report also identified that JIT< production and inventory management are
important main approach that company contained. 4 D's operations management importance are
also discuss in this project. And it also explained that in what manner brand design and to deliver
their various products. At last the respective assignment also determine goals and objectives that
helps to increase performance level of organisation.

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