Managing Business Operations

This study focuses on the major approaches to capacity management and the implementation of key performance objectives in managing business operations. It discusses the case of McDonald's and analyzes the challenges faced in operations management. The study also includes the computation of average customer waiting time and suggestions for improvement. Find comprehensive study material and assignments on Desklib.

Managing Business
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Determining major approaches which organisation takes within capacity management for
reconciling capacity and overall demand:....................................................................................1
Accessing implementation of key four Ds with context to company..........................................2
Analysing key performance objectives for business operations: ................................................3
Computing average number of time taken of costumer arriving till average time:.....................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operations management term relates to set of different business tasks which enable to
achieve greater level productivity within operations. This is primarily concerned with operation
comprises transforming materials and labours into a finished product and provision of services
(Gupta and Singh, 2020). This term covers handling key operational challenges as well as
formulating a supportive framework for business operations. In this study-report, Corporation
named McDonald has been selected. Company is leading US fast-food chain and largest in
world. It is mainly known for hamburgers and operating its business through headquarter in the
Oak-Brook, Illinois. The study covers comprehensive analysis of the capacity demands
employed in the capacity management and also discussion on inventory/stock appraisal.
Moreover, study evaluates respective corporation's actual performance objectives along with
employee management. At the end of the study certain major challenges faced within context of
operations management in case of McDonald has been analysed in the study.
MAIN BODY
Determining major approaches which organisation takes within capacity management for
reconciling capacity and overall demand:
Capacity management comprises, of scheduling IT supervision and governance
conducted to manage information infrastructure and to handle data processing through the
operation. The aim of this management would be to offset the costs accrued against resources
and also to balance among supply and demands. For company McDonald's, this is crucial to
execute the framework in an efficient manner, and this contributes to the implementation of
certain tactics, since it is vital to become more inventive in terms of no. of fast-foods outlets
(Babar and et.al., 2019).
There are some considerations which required to be addressed by the company in order to
strengthen maintenance and higher-quality products/services. Here, following are aspects
wherein the organization employs capacity management for monitoring demands and supplies
within organisation-
 Demand management- In the context of McDonald's, such tactic was used to establish
an acceptable demand for the inventories of such an item and to connect it straight to the
paying customer. This strategy produces higher profits and a higher level of
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productions in food management of business and contributes to growth of the
corporation. McDonald is normally able to handle the demands with the aid of
the supply-chain management that can enable the execution of the strategy and meet the
demands of the corporation's supplies and demands.
 Just-in-management (JIT) – This corresponds to the technique to stock and production
planning which is used to minimize production costs due to a reduction in inventory
levels. The main feature of JIT is the use of a "pull" technique to manage demand and
supply. This method is used by the organization and has an important production
mechanism as it utilizes a mechanism that achieves considerable efficiencies by multiple
deliveries and contributes to spontaneous demands in food production network. By
means of this scheme, they systematically employed the tool to track demands and
supplies in the management area precisely (Christopher and Holweg, 2017). This
is acceptable way to implement and often finds it to be useful for the business as it
promotes the effective distribution of foods to the appropriate spot through the usage of
this strategy. Some essential measures ought to be undertaken to address the challenge of
fulfilling current demands with forecast and estimated availability of foodstuffs.
McDonald provides the facilities and that it's crucial that the goods and services are
provided in a manner compatible with the requirements of the consumers and that the
products and services are fulfilled.
Accessing implementation of key four Ds with context to company
It is also necessary for each organization to recognize these factors in order to research
and satisfy following consumers demands and to sustain management performance. In case
of McDonald, these are four Ds as discussed below:
 Design- This is component/aspect of product which is considered to retain the
costumers, and each company is trying to create the best concept for their respective
products and services. Here they used to sustain design processes, and a number of re-
teaching and efforts are required to settle on a memorable design. In
the context of McDonald's, this is significant decision, yet at same time agreeing on
suitable design and optimizing costs in the managerial process (Exler, Mendling and
Taudes, 2019).
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 Direct- This consideration is to instruct workforce in the path of the procedure and to
ensure that everything has been accomplished as directed. In case of McDonald's, there
are several structures which are used to comprehend the various procedures and to be
accountable for supplying to their customers and to regulate that all is going on
according to the requirements. For this large organization, that's the central mechanism
for managing the whole system and ensuring that it is effective in accomplishing the
intended goals.
 Develop- It comprises of developing productive techniques and ideologies to offer
consumers with better facilities and deliver best products to satisfy the costumer's
expectations. This is necessary to establish work effectiveness in order to achieve a new
pinnacle of success as well as come with unique food products and deals to attract more
consumer bases (Kubíčková, Morávková and Tuzová, 2017).
 Deliver- It corresponds to the supply of items to their costumers after order has been set.
This is crucial factor for McDonald's, because it reflects the success of management
within business, and that there are currently two such factors as the Drive Thru as well as
McDelivery that are utilized to distribute products and services. This is essential
for corporation to evaluate the distribution mechanism and to provide costumer with no
issues whatsoever.
Analysing key performance objectives for business operations:
The study of the McDonald's performance targets is valuable to evaluate the explanation
for its effectiveness in present business environment. Here following aims based on McDonald's
present performance are discussed as follows:
 Customer satisfaction- With respect to the McDonald, this is key component of the
business framework because it copes with service-oriented services as well as ensures
that they focus on providing best services to them. For ensuring that they try to develop
their techniques and varying systems to strengthen quality and achieve better costumer
services in a variety of ways (Kumar, Singh and Kumar, 2021).
 Quality- That's the primary justification for the achievements of the organization where
it still concentrates on accomplishing and enhancing quality of products and services
for building costumer faith. If the costumers were impressed with quality of the
company's services, they would buy stuff from that corporation. Even though it becomes
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more crucial to establish quality since this growing competition throughout the sector and
several other local and global companies are giving tougher competition.
 Speed- This takes into consideration the length of times food reaches to its end customer.
McDonald is focusing on decreasing delivery duration through the use of such techniques
and processes. The estimated duration measured is around 5 min each costumer which
they wanted to decrease in order to boost overall delivery time (Ferdows, 2018).
 Cost- These are main performance goals as McDonald aims to minimize the costs of
production through enhancing the quality level of their product. That's also important to
achieve sustainability and to reduce costs in productions and management phase.
 Technology- It is necessary/crucial to implement the best possible technologies to
enhance quality of products and services as well as to enable to reduce production costs.
This increases the productivity of overall management within business and is important to
employ this to address those issues that occur throughout the processes.
Computing average number of time taken of costumer arriving till average time:
Let’s consider average no. of units in systems= u/ ( 1 – u )
= [ 5 / ( 1 – 5 ) ]
= [ 5 / -4 ]
= [ -1.25 ]
= 1.25
Working notes :
u = ra / rs
= 25 / 5
= 5
Average waiting time = ts / ( 1 – u )
= [ 5 / ( 1 – 1.25 ) ]
= [ 5 / -0.25 ]
= [ -20 ]
= 20
Service rate = ts * 12
= 5* 12
= 60 minutes
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= 60 minutes per order
To eliminate waiting duration there is need to demonstrate advancement in attempts to
produce the item within a short span of time as well as that would be accomplished by achieving
a higher level of effectiveness. It's indeed crucial to secure a higher costumer base
within short timeframe and to fulfil costumer's requirements. Appropriate usage technologies
will enable to get delivery according to arrival of buyer, which will serve to have order as soon
as possible and also minimize the costs of deliveries of time. This is an objective as well as
challenge to accept delivery orders in a short time as well as to fulfil consumers’ requirements of
the organization and to achieve better profits and to produce higher productivity (Martinez and
Morrow, 2020).
CONCLUSION
It has been inferred from above study that the Operations Management can be described
as an essential technique that helps to achieve an improved management processes by reaching
the greater level of organizational performance. It addressed some techniques to the capacity
management which reconcile supplies and demands and also to set out five performance goals of
the business that contribute to growth. In addition to access four Ds as discussed that are pursued
by the organization as well as necessary for corporation's growth, suggestion has been required
to enhance delivery time.
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REFERENCES
Books and Journal:
Gupta, A. and Singh, R. K., 2020. Managing operations by a logistics company for sustainable
service quality: Indian perspective. Management of Environmental Quality: An
International Journal.
Babar, Z., Yu, E., Carbajales, S. and Chan, A., 2019, June. Managing and Simplifying Cognitive
Business Operations Using Process Architecture Models. In International Conference on
Advanced Information Systems Engineering (pp. 643-658). Springer, Cham.
Christopher, M. and Holweg, M., 2017. Supply chain 2.0 revisited: a framework for managing
volatility-induced risk in the supply chain. International Journal of Physical Distribution
& Logistics Management.
Exler, A. M., Mendling, J. and Taudes, A., 2019, September. The Use of Distance Metrics in
Managing Business Process Transfer-An Exploratory Case Study. In International
Conference on Business Process Management (pp. 301-312). Springer, Cham.
Kumar, P., Singh, R.K. and Kumar, V., 2021. Managing supply chains for sustainable operations
in the era of industry 4.0 and circular economy: Analysis of barriers. Resources,
Conservation and Recycling, 164, p.105215.
Ferdows, K., 2018. Keeping up with growing complexity of managing global
operations. International Journal of Operations & Production Management.
Martinez, K.F. and Morrow, J.B., 2020. Lessons learned in managing risk: Tools and strategies
for confident operations from the CLEAN 2020 Summit. Toxicology and industrial
health, 36(9), pp.736-742.
Kubíčková, L., Morávková, M. and Tuzová, M., 2017. THE CURRENT TRENDS IN
MANAGING BUSINESS RELATIONS IN MANUFACTURING. Manažment
Podnikov. 7(3-3). pp.129-140.
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