Mcdonald's Operations Management Case Study

3964 Words 16 Pages
Task 1
a) Why business tends to give significance to the operations management? (1.1)
1.1.1 What is Operation Management (OM)?
Operation Management is an activity of organizing the resources which are linked to the production and delivery of products and services (Iris).
The mangers of operation management have a primary duty of processing the input into the output. They hold the responsibility of using the resources effectively and efficiently during production process.
1.1.2 What are the outcomes of OM?
Operation management is a vital part of an organization and holds a strong responsibility towards the progress of a business by using the resources efficiently as well as effectively so as to produce the desired products or service which
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All this is done under the supervision of the camera. McDonald aims at speeding up the order and has the policy of drive thru in 90 seconds which is very helpful for customers in car and who are in rush to go somewhere else. It follows first in first out policy which avoids many conflicts in the work place.

1.2.2 Cost
It refers to the cost of raw materials, labor and overheads aligned with the operations that are carried out. It is considered to be one of the most important factors as it is a part of a business strategy which states that providing a product to a niche marketing which the competitors does not offer. The cost of production has an important role as it helps the organization successfully compete with its competitors and increase profit. The operation management in order to maintain the competitive advantage reduces the production cost while maintaining the quality as quality matters to customers a lot.
At McDonald’s cost is considered to be the main objective. Food is very cheap at McDonald’s when compared with its competitor and offer many meal deals which increase its customers which decreases the average cost of the company. In cost cutting strategy of McDonald’s includes investing in energy saving to equipment.
1.2.3
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The most efficient plan for carrying out the activities is calculated and determines the timeline prior to starting work. Resources can be allocated accordingly so that each activity has proper assets when needed. Understanding of interdependent tasks can lead to possible reductions in project duration. Sub-critical tasks that are not on the longest timeline can be performed in parallel, also reducing the overall timeline of the project.

Reducing Uncertainty

All projects will encounter delays, unexpected issues, and surprises. In building the CPM model and timeline, managers must calculate the shortest and longest time for completion of each activity. This estimation requires that managers consider unexpected factors that may impact the duration of each task. Because problems are considered in advance this reduces uncertainty. In addition, managers can quickly react to unexpected changes, thus reducing the likelihood that a surprise during one activity will lead to more surprises in subsequent

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