Detailed Analysis of McDonald's Operations Management: A Case Study

This case study provides a detailed analysis of McDonald's operations management, focusing on capacity management strategies to reconcile capacity and demand. It examines the implementation of the four D's (volume, variety, variation, and visibility) within McDonald's restaurants, evaluating how the company adapts to challenges. The study identifies the five key performance objectives, including customer satisfaction, cost control, quality, speed, and technological advancements. Furthermore, it calculates the average number of consumers arriving at the drive-thru and the average waiting time, utilizing exponential distribution formulas. The analysis highlights the use of the Just-in-Time (JIT) approach and the impact of external factors like COVID-19 on McDonald's operations. The case study draws on academic sources to support its findings, offering a comprehensive overview of McDonald's operational strategies and performance metrics. The study concludes with the calculation of average consumer arrival and wait times using relevant formulas.

DATA ANALYSIS CASE STUDY
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Contents
Questions.........................................................................................................................................3
What approaches does McDonald’s Seem to take for its capacity management to reconcile
capacity and demand....................................................................................................................3
Analyse the implementation of the four D’s by McDonald’s restaurants...................................4
Identify the five performance objective which means for operation in McDonald’s..................5
Calculate the Average number of consumers arriving at till and average time...........................7
REFERENCES................................................................................................................................8
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Summarize-
This documentation is mainly focused on the McDonald’s and also analysis the operations
management overview of enterprise. The company was founded in 1940s, established a strong
business position in global marketplace. Nowadays, many consumers have been preferred to
select the McDonald’s product as well as service. This can possible because organization also
including innovation in their business to attract more consumer towards fast-food brand. As per
case study, McDonalds is a leading fast food brand in global world with over 36,000 restaurants
in 100 nations (Anaf and et.al., 2017). McDonald’s serve 70 million customers a day. The
organization has been franchised the majority of its restaurants.
Questions
What approaches does McDonald’s Seem to take for its capacity management to reconcile
capacity and demand.
In traditional operation management, different kind of inventories related finished items, raw
materials which held as reserve as per needed. As a result, McDonald’s should have included the
specific methodology or approaches in order to handle the overall business capacity and
production management (Anaf and et.al., 2017).
McDonald’s has been implemented as different strategies or approach in order to control
the flow of food processing within different stages.
Just-in-time (JIT) Approach-
It is based on the management approach that is used to control or manage the entire flow
of inventory and business to reduce level of inventory, also continuously improve its efficiency
in context of manufacturing processes. This type of JIT approach is helping to arrange the order
of raw materials in which suitable to organise in proper manner (Mathur, 2017). That’s why,
McDonald’s can use Just-in-time approach and aligning with orders placed by potential
consumers. So, implementation of JIT approach which makes actual raw material level that will
be used effectively and efficiently. McDonald’s has been used the JIT approach and focus on the
reduce time intervals which taken between placing of order by organization. Therefore,
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McDonald’s only purchase raw materials, when needed to deliver the finished goods to the
consumers.
On the other hand, Just-in-Time (JIT) refer to the approach or technique that can help to
acquire all essential resources. In this way, it helps to improve McDonald’s production process.
Therefore, company will save the price or cost of production because of minimise inventory
levels.
By using Just-in-time approach, McDonald’s have been consider some essential aspects
which will improve the overall business performance and efficiency in marketplace.
 It can reduce the inventory in term of supply chain. The overall system of inventory
management which gained appropriate amount of substantial efficiencies through
different deliveries to minimise quantities (Mathur, 2017). For instance, it would support
for handling the demand within production chain.
 In general, it applies a pull strategy system which is mainly referred to as kanban which
help to control or manage the overall production of raw materials.
 In McDonald’s, including the commitment of staff members in regards of their
participation or involvement within business growth and development (Anaf and et.al.,
2017).
 Since, Adoption of Just-in-time (JIT) approach, the organization has to be managed with
significantly and also reduce the price or cost of production.
Analyse the implementation of the four D’s by McDonald’s restaurants
As per analysis, it has been determined that McDonald’s face challenges in context of
operations management at McDonald’s.
 Variety of overall output
 Varying the demand for end products
 Degree of visibility of its end item to their potential consumers
 Volume aspects
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McDonald’s is a leading enterprise but its inexpensive price, regularly face the problem
regarding long term queues. In context of fast food restaurants, it can measure as fast queuing
time, short queuing lines which are consider as important aspect to attract more consumers.
Besides inexpensive price, positive attitude of workers and standards food quality.
Nowadays, it has been rapidly increasingly the consequence of health related issue because
of COVID-19. This is not only affecting the individual health condition but it also affecting
overall business operational management for organization (Vieira and Henderson, 2017).
McDonald’s also face multiple issues but needs to be handled through effective strategic
approaches.
Initially, it was known that consumer avoid to visit in restaurant, trying to place online
order and always prefer to choose home delivery services. With consideration of new social
distancing measure in place across UK, Ireland. McDonald’s had to adjust their day to day
business operations in proper manner. In recent times, The Restaurants are usually closed seating
areas and temporarily move towards offering take away. McDonald’s continue their business by
launching “My McDonald’s App”, which provide the various offer as opportunities to order,
pay ahead for collection & Drive Thru.
After lockdown, it was analysed that expected to increase the demand of “My McDonald’s
App” and also estimated at around 123k vehicle in the branch of McDonald’s in Dorchester. In
UK, McDonald’s draw as largest number of potential consumer over one weekend in particular
table (Yang, 2018). As per analysis, it become easier for identifying the demand of online
business in which automatically increasingly profitable rate across global world. At initial stage,
McDonald’s face challenge which occurs due to COVID-19. Because there are completely
affecting the overall business performance and efficiency.
Identify the five performance objective which means for operation in McDonald’s
McDonald’s have been developed the performance objective which seems to take for its
overall management capacity and reconcile on the demand. In this way, McDonald’s can sever as
guiding principle for organization’s mission, vision to accomplish its specific objective in all
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necessary aspects. Basically, McDonald’s has been developed on the basis of different activities,
operations performed by organization.
McDonald’s performance objectives are helping to enhance the quality of product as well
as services. It must ensure the maintenance of good consumer service and their relationship.
Customer satisfaction is one of the important aspect in McDonald’s business model, which is
mainly consider service based enterprise. It will help to improve the consumer service and extent
that current waiting time for people.
McDonald’s also focuses on the cost as one of performance objectives. Price or cost is an
essential aspect of business that aim to maintain competitive pricing (Vieira and Henderson,
2017). Sometimes, enterprise can loss cash on the employee wages, purchase of tool or
machinery which reduce their profits.
Quality is another performance objective which means that McDonald’s has established a
measures and regulations to ensure that will maintain high quality of standard food items.
Speed is also consider important performance objective which can help to the McDonald’s
for delivering the item in quickly manner. The primary aim of McDonald’s is to reduce the
waiting time approximately 95 seconds.
The advancement of modern technology is also consider as performance objective that
can utilise to increase the overall efficiency for McDonald’s business. Sometimes, it also
supports for McDonald’s to achieve their desirable goal or objective.
Additionally, Employee management in quality control business operations which is
primarily based on the different principles. Usually, different principles are suggested that each
and every worker should be rewarded for accomplishing their set objectives and goals (Vieira
and Henderson, 2017). Sometimes, it also rewarded with promotions for achieving certain degree
of academic level.
McDonald’s has entered in market as long term success, which was included as “Speedee
Service System”- an operational process that are given as more prioritised within standardised
process. in order to remain constantly maintain the high quality, food preparation method,
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especially when designed attractive equipment’s. in particularly different operating procedures
were specified in few minutes. Through this way, it will be increasing the number of fast food
brand in compete with marketplace. McDonald’s is always focused on the innovative idea when
delivering the best consumer services.
Calculate the Average number of consumers arriving at till and average time.
The exponential distribution is often concerned about the amount of time until some other
specific event occurs (Vieira and Henderson, 2017). In order to calculate the length, in minutes
and long distance business. Generally, values for exponential random variables which become
distributed in proper manner. Basically, exponential distribution can be calculated and use in the
specific field of reliability. Therefore, it deals with total amount of time and product list.
As per given, Cars arrives at Drive-Thru at rate of 25 hours per.
Also open drive thru till
Average time taken in particular order = 5 minutes
Calculate- average number of consumers arriving at till=?
Average time, it must wait before existing McDonald’s Drive-thru.
Let us assume
 Ra= arrival rate
 Rs=service rate
 Ws=Average service time
 Rs= ts X 12
Formula- Average no of unit within system = q/(1-1)
0.41/1 - 0.41
= .41/.59
= .69
Average waiting time- Ws /(1-q)
= 5/ 1 - 0.41
= 5/0.59
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= 4.41
As per calculating the q
5*12 = 60
U = ra/rs
25/60 = 0.41
According to the calculation, it has been identified the average no of consumers, they arrive at
till or wait before Drive-thru. The challenges occurs in order to identify the initial time intervals
where a particular consumers complete their procedures. Sometimes, it is very difficult to
analyse the accurate result or outcome in proper manner.
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REFERENCES
Book and Journals
Anaf, J. and et.al., 2017. Assessing the health impact of transnational corporations: a case study
on McDonald’s Australia. Globalization and health. 13(1). p.7.
Mathur, S., 2017. Glocalization in Fast Food Chains Glocalization in Fast Food Chains: A Case
Study of McDonald's. In Strategic Marketing Management and Tactics in the Service
Industry (pp. 330-347). IGI Global.
Vieira, R. and Henderson, R., 2017. Dynamic modelling of n-of-1 data: powerful and flexible
data analytics applied to individualised studies. Health Psychology Review. 11(3).
pp.222-234.
Yang, Q., 2018. Young People’s Perspectives on Self-service Technology and Hospitality: A
Mcdonald’s Case Study (Doctoral dissertation, Auckland University of Technology).
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