Analyzing McDonald's: Capacity Management, 4Ds, Performance Goals

This report analyzes McDonald's capacity management strategies, focusing on real-time data-driven approaches, match strategy, and Just-in-Time (JIT) implementation. It explores the application of the four Ds (Discovery, Dream, Design, and Destiny) in McDonald's strategic planning for problem-solving and improved business thinking. The report also identifies and evaluates five key performance objectives for effective operations: speed, cost, quality, dependability, and flexibility. Furthermore, it includes a calculation of average customer arrival rates and waiting times. The conclusion emphasizes the effectiveness of match strategy and JIT in demand-capacity coordination and the importance of the 4Ds for problem-solving. Desklib offers additional resources, including past papers and solved assignments for students seeking further assistance.

Business Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Q1) Approach(es) McDonald Takes for its effective capacity management.........................1
Q2) The implementation of Four Ds by the McDonald’s restaurants....................................2
Q3) Five performance objective means for the operation in the McDonalds........................3
Q4) Calculation of the average number of customers arriving at the till and the average rime
they must wait before existing................................................................................................4
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
The concept of the Business Operation Management is mainly reacted and associated with
the administration of the business practise in an efficient manner with the main aim and objective
of creating a highest level of efficiency that is possible within a firm (Yorulmaz and Karabacak,
2021). The current study is based on McDonalds that is a well-known American fast food
company founded in the year 1940 with main headquarter in California, US. The current report
comprises of a discussion about the main approaches of capacity management along with
analysis 4Ds and main objectives of McDonalds.
Main Body
Q1) Approach(es) McDonald Takes for its effective capacity management
The effective Approach(es) that can be adopted by McDonald Takes for its better
capacity management are discussed as below:
 Real time data driven- It is an effective approach that can be adopted by McDonald as it
supports wide visibility of the resource capacity and bridge a balance between the
capacity and demand and fill the gap in advance to secure better capacity management.
During the current times of the Covid-19, adoption of the real time data driven street
work support an increase within the profitability level by the way of enquiring effective
forecasting of the demand and also secure better billable utilisation of the resources to
ensures improved reconciliation between the demand and capacity through effectively
reducing the bench time along with support of an advance strategic planning.
 Match strategy of capacity management- Another effective approach that must be
adopted by the McDonalds to effectively reconcile its capacity and demand level
comprises of match strategy which leads to the increase in the capacity when the demand
starts to increase and also supports remaining a step ahead the prevailing trend. Adoption
of the match strategy is seemed most appropriate and useful for the McDonald at the
prevailing time of coviod-19 when a high level of fluctuation in demand and supply has
been seen as it ensures a better reconciliation and effective match between the current
capacity and demand along with meeting the set business trend (Wang, 2021). Apart from
this, it has been also seen and observed that the Match strategy provides a mid-way for
the McDonalds between the lead and lag strategies that tend to instead on the boosting of
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demand ahead of the time along with ensuring increase within the demand after the
existing capacity is exhausted while it also supports an incremental change in the
capacity based on the prevailing trend and demand.
 JIT- Adoption of JIT approach also supports an improved reconcile of the capacity and
demand through setting effective inventory management along with ensuring the labour,
material and all the needed goods should be re-filled and scheduled to arrive and present
on place exactly at the time when they are needed to meet the set demand. Further, it has
been also seen and analysed that the JIT is an effective capacity management approach
for the McDonalds as it helps in reducing the inventory within the supply chain along
with leading a pull system and commitment of employment to set effective coordination
between the capacity and demand. Thus, implication of JIT approach offers a uniform
and more smooth production flow for the McDonalds along with setting a pull method
and effective coordination in demand and capacity for better production and smooth flow
of activity to meet the demands in improved manner (Miriasl and Ozcam, 2021).
Q2) The implementation of Four Ds by the McDonald’s restaurants
The four Ds of better strategic planning and that support an improved problem solving
approach and effective business thinking for the McDonald are discussed and explained as
below:
 Discovery- This phase of the planning comprises of the characterised of the discipline
and rigour within in the firm in order to have and support positive core within the
organisation to support better and improving fixing and identifying of the demand and
solving and discovering the associated problem (The four D’s of better strategic
planning, 2018). It has been discovered and observed by the McDonalds that the
situation of the covid-19 is disturbing and creating random changes within the supply
and demand that need to fix by this organisation to set a better coordination between
the capacity and demand.
 Dream- At this phase the organisation tend to effectively analysis and evaluate the all
the possible possibilities and ways that can be adopted as a solution for the identified
problem. Such as in current situation and context, the Macdonald is needed to have
improved strategic planning and capacity management that need to involve thinking
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beyond the customary boundaries to set an improved coordination between the
capacity and demand.
 Design- This the phase where the ideas and energy are prioritised based on above two
phase and creates and leads to highest scale that is important for improved structure
and better decision making process to meet the overall market strategies. At this
phase, the McDonalds need to take best of the approach such as JIT or match strategy
to overcome and ensure better solution and reconcile of the capacity and demand to
overcome and mould the current problems in an effective manner (Huang, Zhang and
Jin, 2021).
 Destiny- This tend to be the last phase which comprises of the series of the I spired
action and ongoing where the firm made the thinking beyond the set boundaries and
repeats itself. The adoption of JIT and match approach lead an improved management
of capacity and ensures a better future for McDonalds through supporting higher level
of productivity.
Apart from the above discussed 4Ds, implication of digital technology has been also seen
and taken as vital for McDonalds in current business scenario for better capacity and demand
management. The adoption of the digital technology tends to support the higher and improved
way of advertising and promotion to cater larger number of customers along with ensuring better
information and resource management through automation and digitalisation of business
operations.
Q3) Five performance objective means for the operation in the McDonalds
The five key performance objectives that means and valuable for the effective operation
within the McDonald’s are discussed and evaluated as below:
 Speed- It reflects the time that is taken by the McDonalds to deliver the goods and
services to the buyer. The Macdonald is having an objective and committed
towards increasing its speed of production and aim at reducing its wait times by
90 seconds.
 Cost- It forms out a vital and most competitive aspect for McDonalds as it has
been mastered in the art of minimizing its operating cost through effective buying
of tools and equipment along with better management of the resources. The main
objective of McDonalds is focused towards having further reduction in its cost to
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attract and cater larger number of the customers (Lima, McMahon and Costa,
2021).
 Quality- Providing improved quality food and drinking products to its customers
is also a top priority of McDonalds to effectively meet the expectation and high
quality standards of the customers. It is also one of the main objective of the
McDonalds to provide top quality services and product to its customers through
making sue of fresh material and better quality ingredients to serve a hot and tasty
food product to customers.
 Dependability- It comprises of the operational performance objective of the
McDonalds that aim and focaus in timely delivery of the product to the customers
in accordance with the planned level of the price and costs. The Macdonald is
having an objective to effectively measure and enhance its dependability level
through leading improved ability to function in an intended way to support timely
delivery of the product and services for the customers.
 Flexibility- To maintain a high level of flexibility within the business operation
and planning to effectively respond the changes going place within the market is
also a key objective of McDonalds to attain the electricity in demand based on
generation and prevailing trend.
Q4) Calculation of the average number of customers arriving at the till and the average rime they
must wait before existing
The rate of the car arrival is= 25 per hour
The expected arrival rate per min= 25/60 per min
Thus, the average number of customers arriving at the McDonalds are= (60*60)/150= 24 cars per
hour.
Further, the Ideal drive thru time = 30 seconds
Pick delivery seconds= 120
Ideal experience level of customers= 150 seconds
McDonald average number of cars checkout = y= (25/12)x= 2
And the waiting time before exiting the McDonalds Drive Thru= 4.3 minutes.
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Conclusion
From the above mentioned and analysed detail a conclusion can be made that the adoption
of match strategy and JIT approach are effective in setting improved coordination and reconcile
the demand and capacity with a form. Further, adoption and implication of the 4Ds also supports
better solution of problem. Along with this, a summarisation about the main objective of a firm is
also made that consist of speed, quality, cost, dependability and flexibility.
REFERENCES
Books and journal
Yorulmaz, M. and Karabacak, A., 2021. The Effect of Business Operation Period on the
Relationship Between Knowledge Management Applications and Ship Performance.
Miriasl, H. and Ozcam, A., 2021. A factor model of family involvement in a business: familiness
manifested in ownership, management and operation. European Journal of International
Management, 16(2), pp.260-275.
Lima, E.S., McMahon, P. and Costa, A.P.C.S., 2021. Establishing the relationship between asset
management and business performance. International Journal of Production
Economics, 232, p.107937.
Huang, Y., Zhang, P. and Jin, Z., 2021, February. Improving business operation efficiency by
using Smart Contract. In 2021 2nd Asia Service Sciences and Software Engineering
Conference (pp. 34-40).
Wang, Y., 2021, June. Evaluation System of Scientific and Technological Innovation Talents
Benefit Based on Cloud Operation Management and Optimization. In International
Conference on Applications and Techniques in Cyber Security and Intelligence (pp. 463-
467). Springer, Cham.
Online:
The four D’s of better strategic planning. 2018. [Online] Available Through:< https://www.fm-
magazine.com/news/2014/apr/201410038.html>.
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