McDonald's Capacity Management, Performance Objectives, and Operations

This report provides a comprehensive analysis of McDonald's business operations, focusing on its capacity management strategies and performance objectives. The report examines how McDonald's utilizes the just-in-time management approach to reconcile capacity and demand, improve supply chain efficiency, and enhance employee commitment. It further analyzes the implementation of the four Ds—Design, Direct, Develop, and Deliver—and how these elements contribute to McDonald's brand development and customer experience. The report evaluates the five key performance objectives, including quality, cost utilization, and time management, highlighting how McDonald's strives to achieve these goals through operational improvements and technological advancements. Additionally, the report includes a calculation of the average number of customers and waiting times, providing insights into service efficiency. The conclusion summarizes the key findings, emphasizing the importance of effective business operations in McDonald's success. The report references several academic sources to support its analysis.

Business operations

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question 1........................................................................................................................................3
What approaches does McDonald seem to take for its capacity management to reconcile
capacity and demand?.............................................................................................................3
Question 2........................................................................................................................................4
Analyse the implementation of four D's by the McDonald Restaurant?................................4
Question 3........................................................................................................................................5
Evaluate what the five performance objectives mean for the operation in McDonald?........5
Question 4........................................................................................................................................6
Calculating the average number of customer which are arriving till average time................6
CONCLUSION ..............................................................................................................................7
REFRENCES ..................................................................................................................................8

INTRODUCTION
Business operations refers to as those activities which makes engagement of business
possible over daily basis that helps in increasing value of an organization by earning profit. Such
activities deals over optimizing sufficient revenue generation possible that makes expenses to be
generated. Such activities makes accomplishment of goals and objectives possible through
various functions involved within processes of business. These operations are related to
employees, product and management. As it helps in relating there functioning with each other
through providing guidelines which makes both profit and revenue generation possible. Business
operations can vary as they are dependent upon nature of business. In this file organization taken
is McDonald that is an American based fast food company as an restaurant operated by
Richard and Maurice McDonald established in the year 1940. It has its headquarters in Chicago,
United States. This file is based on case study related to the given organization and questions has
to be answered.
MAIN BODY
Question 1
What approaches does McDonald seem to take for its capacity management to reconcile capacity
and demand?
McDonald is one of the most popular brand in fast food sector that is known all over
world. Main reason for its popularity based upon management with practices shown by them. As
it has helped in enhancing both capacity and demand. This has been achieved with the helps of
just in time management approach. It is an methodology which aims upon reduction of time
involved within production system of an organization. Further the approach has helped the
company in reduction of inventories in supply chain by making it gain substantial efficiency
through making delivery possible over demand in food production system (Korauš and et. al.,
2019). This makes applicability of “pull” system which made production and raw material to be
controlled. Also it made employees to be more committed of employees increase by making
there participation possible. This made McDonald enhance its various processes like
Level Capacity: It has been improved by using of pull system that enhanced production
capacity and making raw materials supply to be controlled. This resulted in increasing capacity

of employees to work. Approach applied made capacity to enhance as time taken inventories
were removed which made McDonald to increase its production capacity in smart manner.
Chase Demand: Through increasing of commitment within employees participation
increased of employees that made demand targets to be achieved by using just in time
management. Employees were able to manage task in better manner with the help of approach as
discipline increased and proper framework was formed for demand to be analysed.
Demand Management: This was possible with the help of just in time management as it
helps in managing of work within time and also made raw materials to be used in more efficient
manner. Just in time management made demands in McDonald managed with more fluency in its
work by making raw materials and delivery chain to be more impactful and fine.
Question 2
Analyse the implementation of four D's by the McDonald Restaurant?
McDonald has been working upon its various structures that has helped in developing it
as a brand (Hsu and et. al., 2017). This has been done with the help of managing operations these
are those operations which makes development of organization like McDonald possible from all
aspects. Under these operations company developed its four D's which are design, direct, develop
and deliver. Further it has been explained as follows:
Design: As McDonald has been improved in its design through 'Speedee Service System'
which made operations process to be prioritised with standard process that made increase in
quality, preparation method become faster. Also this made designing of equipments possible
only according to product specification. Operating procedures has helped in covering of minute
details possible that enhanced customer experience. This helped McDonald in developing its
customer base within particular market (Korauš and et. al., 2019).
Direct: In this an relationship has been developed with customers which made quality in
operations to be attained. It made direct approach possible with the customers. All of it is done
by quality management which is made by digitalizing the delivery and food pick up process. This
made company analyse about taste of customers and develop products according to it. It made
sales to be enhanced and revenue generation possible (Hsieh and et. al., 2020).
Develop: In this development of various objectives has made organizations like
McDonald to achieved its goal. Various objectives like enhance the quality of products and
services, assurance of enhancing good customer services with cost efficiency possible. In these

objectives management has played an important role as strategies applied by makes objectives to
be accomplished in more easy and affective manner.
Deliver: McDonald has improved its delivery system with the help of its management
that used approach like just in time management that makes delivery speed to be improved and
made management of raw materials possible. Using of such techniques lead over making
employees efficiency to be improved which eventually made task of demand and supply to be
improved.
Question 3
Evaluate what the five performance objectives mean for the operation in McDonald?
Performance objectives of McDonald has been developed within an organization through
its management which made pathway towards developing of objectives through principles and
vision possible. This make development of specific objectives possible by performing activities
related to them possible. In performance objectives the very first thing is quality of products
which makes enhancement of services and product possible. It made satisfaction to be achieved
within its customers by building strong relationship with them. There has been significant
improvement within reduction of waiting time for customer possible which eventually made
takeaway facility to be improved. McDonald has make sure that customers experiences become
more effective for this purpose only another objective of enhancement in technology has been
done by introducing of digitalization within its different operations that made employees
accuracy to be improved. (Butner and Ho, 2019).
Another objective that is focused within performance objective is costs utilization. This
is another important thing for an business organization like McDonald to be achieved as it makes
competitive advantage to be achieved in market. Such objective has been mastered by McDonald
by minimizing operations costs (Tarkhanova, Chizhevskaya and Baburina, 2018). It has made
selling of food to be done in much lower level through competitors. Such objective made it stay
ahead of its competitors by making optimum utilization of money possible. Food quality is
another objective to be achieved that makes standard regulation of food and beverages to be
achieved within its store or outlets. Different operations makes quality management operations to
be done in smooth manner. Due to reduction waiting time delivery is done in faster and better
manner which makes time management objective to be achieved. These objectives has been
achieved because of experiences and challenges faced by company at various times. During the

time of COVID-19 the objectives were achieved despite of problems like communication,
accountability and delivery options.
Question 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
In this 20 people is there according to the delivery over products that is there in order to
minimize waiting time that is needed for showing improvement and has helped in making high
delivery services to be made that makes customer base for improved within limited period of
time. Utilization of technology online delivery method id improved through making delivery to
be faster and better. This made profit to be increased and revenue to be generated in better
manner.

CONCLUSION
From the above file it can be concluded that business operations are those process that
has made organization to develop effective process in management of an organization. This file
talks about just in time management which made McDonald develop supply chain process in
speedy manner. Also in this performance objectives accomplished by organization like
McDonald is discussed.

REFRENCES
Books and journals
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de Sousa Jabbour and et. al., 2019. Circular economy business models and operations
management. Journal of cleaner production. 235. pp.1525-1539.
Hsieh, I.Y.L and et. al., 2020. Recharging systems and business operations to improve the
economics of electrified taxi fleets. Sustainable Cities and Society. p.102119.
Hsu, P.Y and et. al., 2017. Using contextualized activity-level duration to discover irregular
process instances in business operations. Information Sciences. 391. pp.80-98.
Korauš, A and et. al., 2019. Using quantitative methods to identify insecurity due to unusual
business operations. Entrepreneurship and Sustainability Issues. 6(3). p.1101.
Luo, S., Lin, X. and Zheng, Z., 2019. A novel CNN-DDPG based AI-trader: Performance and
roles in business operations. Transportation Research Part E: Logistics and
Transportation Review. 131. pp.68-79.
Tarkhanova, E., Chizhevskaya, E. and Baburina, N., 2018. Institutional Changes and
Ditigalization of Business Operations in Financial Institutions. Journal of Institutional
Studies. 4. pp.145-155.