Operations Management Principles and Project Life Cycle in McDonald's

This report provides a comprehensive review and critique of operations management principles, focusing on their implementation within an organizational context, specifically McDonald's. It contrasts operation and operation management, explores different approaches to operation management, and analyzes the application of Taylor's theory of Scientific Management. The report also critiques the implementation of operations management in relation to Six Sigma methodology and Lean principles. Furthermore, it presents a continuous improvement plan for McDonald's, addressing issues in digital services and data security, and analyzes the effectiveness of this plan using Kaizen theory and the Business Process Reengineering model. Finally, the report applies each stage of the Project Life Cycle (PLC) to a project aimed at maximizing the income and usage of a dance studio, producing necessary supporting documentation and reviewing the effectiveness of the PLC application.

Operations and Project Management
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Table of Contents
Introduction......................................................................................................................................3
LO1 Review and critique the effectiveness of operations management principles.........................4
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context..................................................................................................4
M1 Review and critique the implementation of operations management in relation to Six
Sigma methodology and Lean principles....................................................................................6
LO2 Apply the concept of continuous improvement in an operational context..............................6
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context............................................................6
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and/or models................................................................................................................8
LO3 Apply the Project Life Cycle (PLC) to a given context..........................................................9
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project...................................................................................9
LO4 Review and critique the application of the PLC used in a given project..............................11
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models................................................................................11
Conclusion.....................................................................................................................................12
Reference list.................................................................................................................................13
2

Introduction
In this jeopardised business environment organisations are constantly struggle to stable their
standard position. In the administrative business structure, project life cycle is an important
process in the landscape of operation management. Operation management is considered as an
important structural approach that includes production planning, demand forecasting, supply
chain collaboration as well as inventory control. It is responsible for improving and developing
process in business. In order to understand this conception, current report will enlighten the
theoretical as well as practical approach of operational management principles as well as
requirement of project life cycle. Moreover discussion will be supportive for maintaining
sustainability in Total quality management.
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LO1 Review and critique the effectiveness of operations management principles
P1 Conduct a review and critique of the implementation of operations management
principles within an organisational context
The significance of project life cycle will be discussed based on the case scenario of a
McDonald’s. Critical analysis is required to produce an information booklet for the trainee junior
manager to improve their understanding on operational management. Operation management is
the execution and planning task for achieving standard business objective. In this context,
primary aim of operation management and operation is to effectively manage the organisational
resources. Now the critical analysis is required to understand the differential parameter of
operation as well as operation management.
Operation vs. Operation management
In McDonald’s, operation is related to various purposes such as resource allocation, purchasing,
supply, production, manufacturing and delivery. These dimensional operations are important for
maintain the organisational objective, which is prioritised on standard service as well as quality.
On the other hand, Rosemann and vom Brocke (2015) argued that these operational tasks are
important to foster standard image of an organisation but it cannot be fostered if not managed in
a sequential or disciplinary manner. Operation is related to regular business tasks but the
operation management is related with the regular business performances. This performance of
McDonalds’s is prioritised to utilise resources as well as deliver the task as per consumer’s
perception. It can be said that, the operation management is the administration process of
manufacturing, production and other parameters of service operation. This comparative analysis
also narrowed down the differential parameter of strategic management as well as operation
management (Too and Weaver, 2014). Strategic management includes wide dimension of
organisational work but operation management is supervising the daily activities for maintaining
desired long-run performances.
Different approaches of operation management
In the business process of McDonald’s, operation management has different approaches to
deliver positive efficiency. In both large and small companies, managers or owners are
undertaking following approaches.
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Figure 1: Different approaches of operation management
(Source: Paquin et al., 2016)
Project management
In both large as well as small manufacturing companies, project managers are taking
considerable amount in time planning for each aspect of product line. For getting a product,
managers have to take standard initiatives on supply acquisition, task allocation for employees
(Serra and Kunc, 2015). These tasks are related with the details in regards to shipment costs and
tariff fees. In a proper time line, this process is required tracking daily organisational
performances along with the requirement of business logistics.
Equipment maintenance
In manufacturing process, organisation has to take standard principles to take care of the
machineries, which are required to maintain quality on overall production as well as
manufacturing. In this scale, McDonald’s managers are taking standard principles for
supervising incorporated machineries.
Quality control
In the manufacturing process of McDonalds quality control is an essential part. This is required
to get the outcome as per the initial project expectation. The organisational aim is to maximise
the product quality within limited cost as well as constraints. Their level of consistency satisfies
the customer’s expectation.
Operational process of McDonalds and application of theoretical approach
5
Qualitycontrol

McDonald’s goal is to take strategic decision on operation management for providing affordable
products. In this case their operational tactics is prioritised on service design. On the other hand,
they are also involved in the maximising process of space utilisation as well as kiosks. They are
not focused on the spaciousness and comfort. In addition, they have strategy for supply chain
diversification for reducing the supply chain risks. In this standpoint application of Taylor’s
theory of Scientific Management can be analysed. In the operational process, involvement of
efficient workers is required. McDonald’s has support of efficient workers, who are managing
the service quality as per consumer perception. Taylor’s theory is effective here for the
organisation for task allocation as well as scheduling (Mir and Pinnington, 2014).
These functions are interrelated with the internal as well as external business operation such as
financial parameter or budgeting. This operational purpose is required to reduce the overall
spending cost. Inventory management can be effective to reduce the spending cost (Too and
Weaver, 2014). Through allocating the resources in specific purpose as per schedule, entire
operation can be fostered as per committed objectives.
M1 Review and critique the implementation of operations management in relation to Six
Sigma methodology and Lean principles
In this section, operational process of McDonalds can be understood through criticising the
applicable way of Six Sigma approach as well as lean principles. Six sigma of managerial
approach is required to improving the quality of entire operation management approaches, which
have been mentioned in the above section. McDonalds applies these strategic approaches to
reduce the time as well as money. Through proper definition, analyse, measurement, control and
improvement organisation can take effective action on consistent methodology and process
improvement. In this context, organisation also follows optimisation methodology to improve
business effectiveness through eliminating unnecessary activities (Riol and Thuillier, 2015).
Primarily these activities are not adding any value on consumer service. Through, Lean
management, McDonald has taken standard approach on counter ordering and Dining
management. This is required to reduce the waste amount in entire service. Therefore, lean
management and six sigma approaches has been applied to maintain overall quality of operation
management
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LO2 Apply the concept of continuous improvement in an operational context
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context
It has been visualised that the current organisation has effective role in operation management in
regards to betterment of entire service quality. In order to reduce the overall spending
expenditure, organisation has to take sincere focus on inventory management. The organisation
is currently using lean principles in service to reduce the waste in manufacturing and delivery
process. However, more improvement is required in the current incorporated digital services.
Issue Improvemen
t action
Risk in plan Responsible person Outcome Review
date
 In
McDon
alds,
organis
ation
has
taken
approac
h on
orderin
g and
deliver
y
process.
 In this
context
often
data
security
is on
major
risk
because
third
party
authorit
ies can
access
the data
and
also
issue of
service
malfun
Improvement
is required in
the Enterprise
resource
Planning
(ERP).
ERP system
primarily
fails due to
company’s
reluctance to
abandon
existing
technologies
, which are
incompatible
with current
software.
 Senior
manager
 Technical
team
 Senior
engineer
Through
implementatio
n the ERP
system,
organisation
can pay sincere
action on every
particular
operation. It
includes stock-
control system,
customer
database and
order
monitoring
system. It is
effective to
resolve the
emerging
business risks
in McDonald’s
05/11/2018
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ctions
can be
occurre
d.
 Due to
wide
operati
onal
activity,
organis
ation
often
faces
issue on
invento
ry,
financi
ng,
plannin
g and
sales.
Table 1: Continuous improvement plan
(Source: Cratered by the learner)
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and/or models
Organisation is already using the Kaizen and TQM (Total Quality management) strategy for
maintain overall standard of operation management. As currently organisation has faced issue on
data management process, managers have taken decision to incorporate continuous improvement
plan. This plan will be processed through taking modification on ERP system. In this context,
Kaizen theory needs to be prioritised for improving the service efficiency as well as safety. In
this context, BPR or Business Process reengineering model need to be applied to recognise the
gap in existing incorporated technologies (Chen et al., 2016). Often issue occurred while existing
technology is not compatible with the advancement of ERP. Therefore, re-engineering process
need to be followed in the context of continuous improvement plan for maintaining the long term
safety. It is also effective to resolve the issue of cost overrun.
It can be deduced that operation management is an efficient task to improve overall business
performance. In this scale, criticism has been analysed to recognise the difference o operation as
well as operation management. Based on the case scenario of McDonalds, continuous
improvement plan has been recommended, where trainee junior managers have to understand the
required skill and theoretical concept for maintain long term organisational growth.
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LO3 Apply the Project Life Cycle (PLC) to a given context
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project
Project life cycle is a part of operation management but not similar at all level. In this case,
managers are responsible to take sincere action on project life cycle. This process includes
conceptualisation phase, execution phase, planning phase as well as termination phase. As per
the case duty manager has to create a project plan for maximising the income and usage of the
dance studio. This project management will be planned here through understanding the different
stage of project life cycle.
Problem statement Project timeline
Plan is required to maximise usage of the studio for
maximising the overall income.
06/09/2018-03/02/2019
Table 2: Project statement
(Source: Created by the learner)
As per the given scenario, dance studio has a capacity of 50 customers and this is opened from
08am-10pm. In order to improve the income, more facilities need to be introduced in the studio.
Duty manager has planned to introduce spinning class, Pilates, circuit training and dance classes
for the consumer. As per the managerial view, profit or income can be increased if consumers
can get more service opportunities in this studio. This plan is analysed based on the components
of project life cycle as follows.
Concept of Project life cycle
Project plan consists of four phases, which are initiation, planning, execution as well as
evaluation. Initiation phase refers to the scope as well as objective definition. In this stage,
managers have to mention the timescale and project structure before creating detailed project
plan. In this case, feasibility study is required to understand the level of risk. After that, planning
phase can be occurred with detailed project plan. In this case, managers primarily structure the
resource plan, financial plan, risk plan, quality as well a acceptance plan (Joslin and Müller,
2015). Now execution phase is required to take initiative on time management, cost
management, risk management as well as communication management. In the closure phase, all
actions need to be listed. In addition, the evaluation plan needs to be conducted for determining
overall project success.
Application of project life cycle in current case
Project study
Initiation In this current case, planning is required to
introduce several facilities in the dance studio. Now
the capacity of the studio is not enough for serving
more customers. Therefore floor extension,
purchase of equipment is required to serve more
customers with such facilities. Entire project will
be accomplished within 6 month.
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Planning Planning is required here in resource allocation,
stakeholder meeting, assessing the available scope
on quality management. In this scale, budgetary
analysis is required to focus on each objective with
required cost amount.
Closure Entire project tasks will be listed for
communicating with the project stakeholders
Execution Within the structured timeline, the entire tasks will
be delivered.
Table 3: Project life cycle
(Source: Created by the learner)
Project methodology
Organisation is experiencing enormous success on consumer centric business objectives through
application of Agile software development methodology. It offers iterative approach for
designing a project plan as per the components of project life cycle. A project manager spends
time to structure project milestone and resource allocation (Wang et al., 2017). In this case,
proper scheduling is required to deliver the project objectives with tactical way. In the purpose of
stakeholder, communication Agile methodology is effective to accommodate immediate changes
during project monitoring. In addition, proper team work is also required for the duty managers.
They have to undertake positive leadership strategy to motivate the involved teammates, who are
responsible to create modification in the dance studio.
Risk assessment
In this case, risks are related to the cost overrun as well as issue of deadline. Currently
organisation is not capable of providing service to more than 50 customers. Therefore, time
needs to be maintained for getting the standard project outcome.
WBS structure
Task
Number
Tasks Start Date End Date
1 Identifying aims and objectives 06/09/2018 12/09/201
8
2 Identifying Time Management 13/09/2018 16/09/201
8
3 Identifying Scope Management 16/09/2018 20/09/201
8
4 Identifying Cost Management 22/09/2018 25/09/201
8
5 Identifying Communication Management 26/09/2018 28/09/201
8
6 Identifying Quality and Resource Management 29/09/2018 03/10/201
8
7 Identifying Risk Management 03/10/2018 05/10/201
8
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8 Allocating Budget 06/10/2018 15/10/201
8
9 Purchasing Equipments 16/10/2018 02/11/201
8
10 Finalising lease agreements for floor extension 03/11/2018 05/12/201
8
11 Developing the services (staff training, decoration) 06/12/2018 03/02/201
9
Table 4: Work Breakdown structure
(Source: Created by the learner)
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LO4 Review and critique the application of the PLC used in a given project
P4 Review and critique the effectiveness of the PLC in application to the chosen project
using appropriate theories, concepts and models
Application of Project life cycle
In this given project, business case is related to enhance the profit of the organisation through
offering various services. In this case, currently organisation is not capable to offer proposed
services to wide amount of customers. Therefore, floor extension is required. It has been also
evaluated that the consumer’s perception is the major context to operate fundamental tasks in the
dance studio. Therefore, managers have to understand the stakeholder’s interest in response to
this project. As per the case study, currently organisation is not capable to foster the proposed
services. Therefore, time planning is the important task in the initiation plan, where manager can
structure the project milestone within an effective timeline (Gardiner, 2014).
The planning phase has significant role on time, cost as well as resource management. In this
case, managers have to purchase required equipments and floor lease for offering such proposed
plan. Therefore, resource needs to be identified for resolving further issue of cost overrun during
this project planning. Through analysing the plans, managers can take initiative on benchmarking
policies in regards to project risks.
After that managers will communicate with the project stakeholders about the recognised
parameter on budgeting and other scopes. After execution, evaluation has significant role to get
positive project outcome. In this case application of program theory and logic model can be
applied. In order to managing the risks, program theory refers to “if” and “then” (Svejvig and
Andersen, 2015). In this context manager can understand the risk in “if” parameter. Based on
this, duty manager can take positive support on risk management. Logic model can be applied
here on the purpose of project evaluation. In project life cycle, evaluation is an essential part to
understand project outcome (Stark, 2015). Based on the above analysis, logic model can be
applied to understand input, output as well as outcome of entire project.
It can be deduced that, project life cycle is an important factor to deliver project objectives.
Through proper planning and incorporated methodology duty manger can improve the overall
service of the studio along with management of income.
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