Approaches of Capacity Management and Performance Objectives in McDonald's

MBO CASE STUDY

Contents
Introduction.................................................................................................................................................3
What approaches are used by Mc Donald to reconcile capacity and demand of company?.....................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 operations is an area associated with designing and controlling the
procedure of production & redesigning business operations within the production of products as
well as services. It is considered as one of the important function of an organization along with,
human resources, marketing and so on (Barnes, 2018). In the present report a case study of
McDonald’s is taken into consideration. It is an American fast food organization that was
established in year 1940. The report will cover different approaches of capacity management. In
addition to this there is an analysis of execution of strategies of four D's. Moreover, the five
performance objectives is evaluate in context of respective organization. In the last, there is
calculation of average customer drive through or take away for the delivery.
What approaches are used by Mc Donald to reconcile capacity and demand of company?
Capacity management is essential to meet with the demands of customers arise at market
place. In addition, it also helps to make effective use of available resources that is crucial to
maintain higher productivity as well as profitability of company. As per the given scenario, the
demand of products offered by Mc Donald are increasing rapidly so they are required to adopt
effective techniques of capacity management in order to cater the requirements of audience in an
efficient manner. It is analyzed that for fast food industry it is important to serve customers in
less time of period. So, managers of respective company are adopting effective strategies to
minimize the time between placement and delivering of an order. For this, different approaches
of capacity management are given as under:
Level Capacity: It has direct relation with the output in terms of ready goods and services
that are provided by an organization to meet with current level of demand arise at market place
(de Sousa Jabbour, 2019). For this, managers of Mc Donald first identify available resources,
level of inventory so that they can use full capacity to serve customers in better manner. It is also
helpful to make optimum use of resources that will further lead to minimize overall cost. With
the help of case study, it is monitored that organization focuses to minimize operating,
production as well as other cost to provide products to customers at lower price. And, level
capacity approach help to fulfil this aim.