Business Operations and Capacity Management: McDonald's Report

This report provides a comprehensive analysis of McDonald's business operations, addressing key aspects such as capacity management, the implementation of the four Ds (Design, Direct, Develop, and Delivering), and the evaluation of five performance objectives (quality, speed, dependability, flexibility, and cost). The report delves into McDonald's strategies for reconciling capacity and demand, using inventory appraisal and raw material acquisition. It examines how McDonald's applies the four Ds to enhance service and product standards. Furthermore, the report assesses the significance of each performance objective in relation to McDonald's operational success. The analysis includes calculations to identify potential operational challenges and proposes solutions, such as leveraging technology to improve efficiency, including AI and robotic processes. The report concludes by emphasizing the importance of a strong understanding of business operations and the strategic use of resources to achieve organizational objectives, supporting the mission and vision of the company through the five operational objectives.

MANAGING BUSINESS
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Managing business operations refer to the process managing the business operations and
its working into the organization. There are different types of dealing performed within
governance. It require to secure that efficiency of operations is well-kept. This is done by setting
of certain modular and improving process (Babar and et.al., 2019). There are a lot of
performance goals and objective of sets as well which has to be attained. This report will explain
about the case study and of McDonald and the answered of the question in it.
MAIN BODY
Q-1 What approaches does McDonald seem to take for its capacity management to reconcile
capacity and demand?
Capacity management is one of the major factor in the growth of the organization and for
that they need to make sure that they are having the best of the resources. McDonald is one of
the leading firm in the food industry and are providing the best quality in their product and
services. The capacity management refer to the process in which the management of the
organization focus in managing the entire capacity of the raw material of the product they are
making. It is important for the organizational to maintain the basic capacity of the product and
services so that they can manage the capacity demand of the product and services from audience
or customer.
McDonald have used the inventory appraisal to manage the capacity demand of the
product and service they are offering to there customer. It is important for the management of the
McDonald to make sure they are having a good amount of inventory and they keep on appraise
the inventory so that they can make a good balance with the capacity demand. McDonald used
the strategies of acquiring the raw material which help them in making the best use of capacity in
managing the demands of the product and service they are offering to their customer.
McDonald's basic factor which they followed was demand management into their
workforce, it helped them in making good decision related to the demand and a futuristic
thinking help them in making a process of working in developed way. It also helped them in
creating different sources of new business for the organization. The capacity management helped
them in creating different option and managing the balance between the work capacity.

McDonald's have use the approach of increasing the capacity by making different ways in
changing of product and services with varieties to offer to customer and make them think about
the choices and also gets benefit of making different changes into the raw material to manage the
process of capacity demand (Akhtar and et.al., 2018). It is important for the organization to make
a required or acquire a lot of raw material in advance for the better balancing into the working.
Question 2 Analyse the implementation of four Ds by the McDonald Restaurant?
McDonald is operating on a global level in the market and has a variety of products
which it is serving to its customers. The company is operating and implementing a lot of
processes so that there is going to be higher performance and standards which the organization
can have for themselves. There are for D's which are being followed and implemented by
McDonald which are as follows.
Design
The company is having speedy service system which is good for processing of a reputed
company. The standards are high of the company by having good methods and quality of
products and services. There are specific instructions which are implemented for the cooks of the
company which is going to make the customer experience be increased. The production of the
products and services of McDonald is easy which the customers can receive very quickly.
Direct
Performance objectives are set for the employees so that there is a good sense of direction
which is going to be present for the performance to be higher. The quality of the products have to
remain the same so that the company will be able to have a standard and value for the brand is
going to be present for the company in the market.
Develop
The employees of McDonald's are focused upon and are rewarded from time to time
which is going to make the company have higher productivity. There is employee of the month
for appreciations and the workforce is governed by specific procedures which are being followed
by the company and there is a good follow of scientific management principals as well making
the company have a good competitive advantage in the market.
Delivering

Just in time management for the inventory is being implemented effectively so that the
fulfilment of the demand and less wastage is going to be present (Ali, 2018). The company is
going to make the strategy be implemented effectively so that there is going to be higher
satisfaction level and make the brand value and recognition of the company be higher
Question 3 Evaluate what the five performance objectives mean for the operation in McDonald?
Performance objective refer as the objective which help the organization in achieving the
business overall objective and also improve the performance of the organization. There different
operational objective of McDonald's, here are some of the objective are as follow: -
Quality: - Quality is one of the major factor of the organization in achieving the business
objectives. It is very important and McDonald always stay focused in the quality of the product
rather then making changes and provide low quality. To maintain the quality standard it help the
organization in achieving the business goals and McDonald's overall focus is to provide the best
of the product and services.
Speed: - Speed refer to the providing the quality service in the given time to the customer so that
they does not need to wait for a longer period of time. It is important for the organization to
make strategies in making the product and services they offering need to be quick.
Dependability: - Dependability refer to the process of providing high quality technologies to the
customers. It is important to provide better services of delivery. This can change a lot to the
process of working of the organisation and can make a huge impact on business (Christopher and
Holweg, 2017).
Flexibility: - flexibility is the way of handling customer and providing a vast way of flexible
environment into the business. Flexibility of picking up the order from anytime from
McDonald's outlets and it need to be done to increase the customer satisfaction
Cost: - The strategy of costing is to make sure that the prices of the product are valuable for the
price they are asking. It is one of the major factor as the cost is the factor which can make a lot of
effect on the overall business of the organization and they need to make a low price strategy to
increase the customer audience in market.

Q-4 are encouraged to use calculations to prove any challenges if there is any and suggest any
solutions
Here, in order to find out any challenge there is need to do calculation which is explained as
below :
Average number of units in system= u/1-u
0.41/1 - 0.41
= .41/.59
= .69
Average waiting time in system = ts/1-u
= 5/ 1 - 0.41
= 5/0.59
= 4.41
Calculation of u
5*12 = 60
U = ra/rs
25/60 = 0.41
The organization can make a lot of changes which can further help them in making new
development into the process of working and it can help the organization in achieving better
business objective and goals.
 McDonald's can use the technologies to increase the performance of business and also
can use the technologies in taking orders for the business which can make developed
working and increased business performance.
 McDonald's can use the technologies and the artificial intelligance or robots in taking
order and handling the outlets so that they can manage the first working organization with
robotic process of working. They need to make new AI technologies in managing the
process of working (Kumar, Singh and Kumar, 2021).

 Organization need to have a proper data analysis system in taking orders and also need to
provide the official app so that people can apply for the order on the application on there
smartphones and utilise the product and services of the McDonald's (Roy, Patnaik and
Satpathy, 2020).
CONCLUSION
The report conclude that it is important to have a good understanding about the process of
operation of business and they need to make sure as they are making planning and utilizing of
time and resources to make the better performance for organization and achieve business goals.
Moreover, there are 5 execution objectives set by system that is supported on quality, speed,
flexibility, cost and dependability. By that they are able to reach mission and vision.

REFERENCES
Books and journals
Akhtar and et.al., 2018. Essential micro‐foundations for contemporary business operations: top
management tangible competencies, relationship‐based business networks and
environmental sustainability. British Journal of Management, 29(1), pp.43-62.
Ali, A.W., 2018. ORACLE METHODOLOGIES FOR MANAGING BUSINESS SOLUTION
PROJECTS.
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.
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.
Roy, A., Patnaik, B.C.M. and Satpathy, I., 2020. Consolidated recommendations to change GST
patterns for managing the impact of Covid-19: A case in India. Eurasian Chemical
Communications, 2(9), pp.1011-1020.
1