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    Adarsh Pandey
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    The document analyzes operations at a McDonald's outlet in Pune. It identifies 5 gaps in quality, customer service, variety, and price compared to customer expectations. These gaps can be addressed by improving order preparation speed, collecting customer feedback, better understanding local cuisine, providing nutrition information, and expanding vendor partnerships to control costs. The analysis also finds issues with technology use, employee collaboration, and a lack of big picture perspective that limit efficiency and effectiveness. Finally, it applies Little's Law to calculate the outlet's process cycle time and efficiency, finding room for further improvement.

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    MCDONALD'S ANALYSIS

    Original Title

    Mcdonalds

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    The document analyzes operations at a McDonald's outlet in Pune. It identifies 5 gaps in quality, customer service, variety, and price compared to customer expectations. These gaps can be addressed by improving order preparation speed, collecting customer feedback, better understanding local cuisine, providing nutrition information, and expanding vendor partnerships to control costs. The analysis also finds issues with technology use, employee collaboration, and a lack of big picture perspective that limit efficiency and effectiveness. Finally, it applies Little's Law to calculate the outlet's process cycle time and efficiency, finding room for further improvement.

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    © All Rights Reserved
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    79 views5 pages

    Advanced Operations Management: Operation Analysis Organization

    Uploaded by

    Adarsh Pandey
    The document analyzes operations at a McDonald's outlet in Pune. It identifies 5 gaps in quality, customer service, variety, and price compared to customer expectations. These gaps can be addressed by improving order preparation speed, collecting customer feedback, better understanding local cuisine, providing nutrition information, and expanding vendor partnerships to control costs. The analysis also finds issues with technology use, employee collaboration, and a lack of big picture perspective that limit efficiency and effectiveness. Finally, it applies Little's Law to calculate the outlet's process cycle time and efficiency, finding room for further improvement.

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    © All Rights Reserved
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    of 5

    ADVANCED OPERATIONS MANAGEMENT

    OPERATION ANALYSIS
    ORGANIZATION

    MCDONALD’S E-SQUARE QSR OUTLET, PUNE

    SUBMITTED TO: MR. SANDEEP KHEDKAR

    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

    PRODUCT PROCESS COMBINATION

    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

    QUALITY CHEAPER PRICES


    COMPETITORS'
    EDGE

    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

     Inability to use technological advances.


     Lack of alignment and collaboration between employees.
     The particular outlet is missing a valuable chance to take a step back and look at their
    overall effectiveness from a big picture perspective.

    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/ RESOURCES/ COST/ RESULTS

    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.

    RESULTS: McDonald’s primary generic strategy is Cost Leadership. As a low-cost provider,


    McDonald’s tries to offer products that are relatively cheaper compared to its competitors.
    However, the company also uses Broad Differentiation as a secondary strategy. This secondary
    generic strategy involves developing the business and its products to make them distinct from
    competitors. For example, through McCafé products, McDonald’s applies the broad differentiation
    generic strategy.

    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).

    Flow Rate(R): Average discharge rate is 45 Receipts (Orders) per hour.

    Inventory(I): No. of Orders at any given point of time: 5 Orders

    Process Cycle Time: T= I/R


    => Process Cycle Time = No. of Orders at any given point of time / Flow Rate

    =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

    Process Cycle Efficiency= Tva / T * 100 = 3/6.67 * 100 = 44.97 %


    NOTE: Process cycle efficiency is not the standard efficiency, It is time-based.

    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.

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