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Advanced Operations Management: Operation Analysis Organization
Advanced Operations Management: Operation Analysis Organization
OPERATION ANALYSIS
ORGANIZATION
SUBMITTED BY:
ABHISHEK TIWARI(B:5)
ABHISHEK RAI(B:6)
ADITYA KAUSHISH(B:72)
LT. COL. VIVEK YADAV(D:)
ADARSH PANDEY(E:2)
PRODUCTS OFFERED: Classic, long-running fast-food chain known for its burgers, fries
& shakes.
FACTORS CONSIDERED:
1.Quality 2. Variety of Items Offered 3. Prices of Items 4. Customer Service
5.Serving Speed
SPEED
9
GAP
8 1
7
6
5
4
CUSTOMER SERVICE 3 VARIETY
GAP 2 2
GAP 3
1
0
CUSTOMER
EXPECTATIONS
McDONALD'S
SERVICES
We have identified following GAPS after the analysis of above Radar Graph for McDonalds
Outlet:
GAP 1: Lack of proper equipment for super-fast order preparation and delivery
GAP 2: Lack of customer feedback and query management
GAP 3: Lack of proper understanding of local cuisine
GAP 4: Lack of information regarding the nutrient value of the food
GAP 5: Inability to control Costs due to limited number of vendors for collaboration
EFFICIENCY & EFFECTIVENESS
PUSH-PULL STRATEGY
MTO
SELLER CUSTOMER
MAKE TO ORDER: All the raw materials are kept ready, assembling happens as per customer
orders.
FLEXIBILITY AND INNOVATION IN PRODUCTS: McDonald dropped mutton, beef and ham
burgers from its menu in India keeping in view the life style, religion and eating habits of the
customers, and introduced vegetarian products. In case of sauces, the company provides 100%
vegetarian sauces.
SUPPLY CHAIN MANAGEMENT: This matchless supply chain structure not only ascertain on
time raw materials and supplies delivery but also helps the company reduce its cost, resulting in
maximizing profits along with enabling the company to maintain high quality standards.
ACTORS:
SUPPLIERS: Maharashtra: Vista Foods, Mrs Bectors, Cargill, Dynamix, Packaging Suppliers,
Godrej Tyson, Venky’s, McCain
FRANCHISER: McDonald’s , Chicago, Illinois, United States
FRANCHISEE: Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd for West and South
India.
RESOURCES:
MEN: Managers, Cashiers, Cooks, Attendants
MATERIAL: Veg. & Chicken Patty, Pizza Puff, Buns, Oil, Cheese, Cups, Wraps, Straws,
Napkins, Chicken Meat, Potato Products
MONEY: Money Received from Sales, Beverage and Merchandise Sales, From Catering A Party
etc.
MINUTES: 5-10 Minutes Per Order
MACHINES: Microwave, Freezer, Coffee Machines, Bun Toasters, Grills, Food Holding Bins,
Dispensers, Frying Machines Etc.
COST: Operating Costs which includes the cost of food and beverage ingredients, wages, rent,
utilities, and insurance.
LITTLE’S LAW
A good flow unit adequately represents the output, cost and resources consumed in the process.
Hence, we take number of receipts (orders) as the flow unit for our calculation.
Assumption: Average flow remains fairly constant throughout the process.
After some research we know the following things about McDonald’s E-Square QSR:
Now as per study, the QSR is working 14 Hrs a day (11:00 AM- 1:00 AM).
=5 Orders at given point of time / 45 Orders per Hour / = 0.112 Hr = 6.67 Minutes
= 6 minutes 36 seconds
Tva (Value Added Time): Standard time for Comparison as per Assumption: 3 Mins
INTERPRETATION
Since, the Process Cycle Efficiency is 44.97 %, the process is Lean by nature, but McDonalds’
follows the Six Sigma approach. Hence, the whole process is needed to be improved upon
further.