11 Feb Case Study McDonalds Assignment Instructions Please follow the instructions provided in the attached PDF document. AI (ChatGPT) must not be used to create your report, or par
Case Study McDonalds Assignment
Instructions
Please follow the instructions provided in the attached PDF document.
AI (ChatGPT) must not be used to create your report, or parts of it!
———————————————————————————————
1) Introduce the company of your choice.
2) What similariJes does this company have with McDonald’s, what is unique or sets them
apart from McDonald’s?
3) What is the unique selling proposiJon or compeJJve advantage of your selected
company? How is it presented and maintained?
4) Field invesJgaJon: Visit at least one restaurant of McDonald’s and one of your selected
company. InvesJgate their operaJons and report your observaJons in regards of:
a. Layout of the restaurant and how it serves the purpose of the operaJonal goals; b. Customer wait Jmes, number/type of staff, variaJons throughout the day;
c. Service performance and observed customer saJsfacJon;
d. Stocked items & cleanliness;
e. ProducJvity, JIT, and how it is achieved;
f. Quality tools, such as Lean or TQM; how are they uJlized?
g. Summarize the overall operaJonal processes observed.
5) Analyze if and to what extend the value proposiJon and compeJJve prioriJes were met in reality. Assess the operaJons strategy of McDonald’s and the company of your choice in the compeJJve environment. What challenges do they face, what opportuniJes do you see for their future development of operaJon strategies?
Structure your report according to the the reader can easily follow your logic with about 2,500-3,000 words of text, you apply the APA formaUng.
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1. Attached is the McDonalds Case Study. pdf
2. Screenshots of rubrics for score acceptance
3. PPT study material for reference (Be thorough and relatable to work in class)
CASE STUDY: McDonalds Dr. C. Guckel
Assignment1-OP-Strategy-Winter2024.docx 2024-01-23 – 1 –
Opera&ons Management
OPMT 620 Winter Term 2024
Assignment Paper 1 Topic: Opera4ons Performance, Opera4ons Strategy, Quality McDonald's, founded in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, played a pivotal role in revoluJonizing the restaurant business and creaJng the fast- food industry as we know it today. McDonald's revoluJonized the restaurant business by introducing efficiency, standardizaJon, and a focus on speed of service. Their model of franchising, markeJng, and menu diversificaJon paved the way for the modern fast-food industry, which has become a significant part of global food culture. The McDonald brothers pioneered a service system which emphasized efficiency and consistency in food preparaJon and service. They streamlined the menu to focus on a few items like hamburgers, cheeseburgers, fries, and milkshakes, making the process faster and more efficient than tradiJonal dine-in restaurants. Further, they introduced a high degree of standardizaJon in its operaJons. Every restaurant used the same cooking methods, ingredients, and equipment, ensuring consistency and quality across the enJre chain. McDonald's introduced the first drive- thru in 1975, providing even greater convenience to customers and seUng a trend that many other fast-food chains would adopt. Over the years, McDonald's expanded its menu to include items like salads, chicken, and breakfast opJons, catering to a broader range of tastes and preferences. McDonald's success and innovaJve business model influenced countless other fast- food chains and restaurants, leading to the spread of the fast-food industry as a dominant force in the global food business. When you walk through town, you see various fast-food restaurant chains or coffee shops with fast-food opJons, such as Burger King, KFC, A&W, Tim Hortons, or Subway. For this assignment, select one of the other fast-food chains and prepare a study comparing your selected chain with McDonald’s. Feel free to choose any chain you like. For the comparison, you
CASE STUDY: McDonalds Dr. C. Guckel
Assignment1-OP-Strategy-Winter2024.docx 2024-01-23 – 2 –
are expected to focus on aspects of both restaurants’ operaJons from an operaJons management perspecJve. Cover the following aspects:
1) Introduce the company of your choice. 2) What similariJes does this company have with McDonald’s, what is unique or sets them
apart from McDonald’s? 3) What is the unique selling proposiJon or compeJJve advantage of your selected
company? How is it presented and maintained? 4) Field invesJgaJon: Visit at least one restaurant of McDonald’s and one of your selected
company. InvesJgate their operaJons and report your observaJons in regards of: a. Layout of the restaurant and how it serves the purpose of the operaJonal goals; b. Customer wait Jmes, number/type of staff, variaJons throughout the day; c. Service performance and observed customer saJsfacJon; d. Stocked items & cleanliness; e. ProducJvity, JIT, and how it is achieved; f. Quality tools, such as Lean or TQM; how are they uJlized? g. Summarize the overall operaJonal processes observed.
5) Analyze if and to what extend the value proposiJon and compeJJve prioriJes were met in reality. Assess the operaJons strategy of McDonald’s and the company of your choice in the compeJJve environment. What challenges do they face, what opportuniJes do you see for their future development of operaJon strategies?
Structure your report according to the content you want to present and opJmize the flow, so that the reader can easily follow your logic and arguments. You should be able to accomplish the task with about 2,500-3,000 words of text, there is no upper or lower limit though. It is expected that you apply the APA formaUng. Reference Grades and Topics (refer to tasks described above):
Topic Incomplete Sa4sfactory Very Good Excep4onal IntroducJon of selected business (1) 6 7.5 9 10 Comparison with McDonald’s (2) 6 7.5 9 10 USP of selected business (3) 6 7.5 9 10 Findings from visits (4) 18 23 27 30 Analysis, conclusions and assessment (5) 6 7.5 9 10 Logic, flow & criJcal thinking 9 11 13.5 15 Format and overall presentaJon 9 11 13.5 15 SUM 60 75 90 100
,
1
Sam Lampropoulos George Brown College
Introduction to Operations Management
Chapter
© 2021 McGraw-Hill Education Limited.
2
Define the term operations management
Identify the three major functional areas of organizations and describe how they interact.
Describe the scope of operations management, including differentiating between design and planning/control decisions.
Compare production of goods and services.
Discuss the operations manager’s job.
Describe key aspects of operations management decision making.
Briefly describe the historical evolution of OM
Identify major trends that affect operations management.
Learning Objectives
© 2021 McGraw-Hill Education Limited.
3
Service Operations Examples
Learning Objectives
© 2021 McGraw-Hill Education Limited.
What is operations management (OM)?
Three basic functions within organizations
The scope of operations management
Differentiating goods and services
Operations manager’s job
Operations managers and decision making
The historical evolution of operations management
Major trends
Chapter Outline
‹#›
© 2021 McGraw-Hill Education Limited.
OM is the management of processes that create goods and/or provide services.
What is Operations Management?
Companies use OM to improve:
Efficiency (operating to minimize cost and time)
Effectiveness (achieving intended goals: quality & timeliness)
5
© 2021 McGraw-Hill Education Limited.
| OM Activities | Airline company (services) | Bicycle factory (goods) |
| Forecasting | ||
| Capacity planning | ||
| Scheduling | ||
| Managing inventories | ||
| Assuring quality | ||
| Motivating employees | ||
| Where to locate facilities |
Detail the following OM activities for each company
6
What is Operations Management?
© 2021 McGraw-Hill Education Limited.
From Page #2
Airline:
Forecasting demand for flights, the growth in air travel, and weather and landing conditions.
Capacity planning, deciding the number of planes and where to use them.
Scheduling of planes for flights and for routine maintenance; scheduling of pilots and flight attendants; and scheduling of ground crews, counter staff, and baggage handlers.
Managing inventories of such items as food and beverages and spare parts.
Assuring quality, essential in flying and maintenance operations, where the emphasis is on safety. Also important in dealing with customers at ticket counters, check-in, telephone and electronic reservations, and in-flight service, where the emphasis is on efficiency and courtesy.
Employee motivation and training in all phases of operations.
Location of facilities according to top managers’ decisions on which cities to provide service for, where to locate maintenance facilities, and where to locate major and minor hubs.
Buying materials such as fuel, food, bags, and spare parts. Buying aircraft and maintaining it.
bicycle factory. This might be primarily an assembly operation: buying components such as frames, tires, wheels, gears, and other items from suppliers, and then assembling bicycles. The factory might also do some of the fabrication work itself (forming frames, making the gears and chains) and buy mainly raw materials and a few parts and materials such as paint, nuts and bolts, and tires. Among the key operations management activities in either case are scheduling production, deciding which components to make and which to buy, ordering parts and materials, deciding on the style of bicycle to produce and how many, purchasing new equipment to replace old or worn-out equipment, maintaining equipment, motivating workers, and ensuring that quality standards are met.
Why Study Operations Management?
A large percentage of a company’s expenses occur in OM area (more efficient operations = more profits).
A large number of all jobs are in OM area (purchasing, quality, planning, scheduling, inventory, etc.).
Activities in all other areas( finance, human resources, marketing, ) are interrelated with OM activities.
Operations innovations lead to marketplace and strategic benefits (Toyota Production System, Dells’ direct shipping of personal computers).
Opportunity!
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© 2021 McGraw-Hill Education Limited.
7
Careers and Professional Certifications in OM
Supply Chain Management Association (SCMA)
Canadian Institute of Traffic and Transportation (CITT)
Canadian Supply Chain Sector Council (CSCSC)
American Production and Inventory Control Society (APICS), now known as the Association for Supply Chain Management
American Society for Quality (ASQ)
Project Management Institute (PMI)
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© 2021 McGraw-Hill Education Limited.
Page #5
8
Functions Within Organizations
A typical organization (manufacturing or service) has three basic functions.
Operations: creates goods and services.
Finance: provide funds and the economic analysis of investment proposals.
Marketing: assess customer wants and needs and communicate them to others.
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Figure 1-1
© 2021 McGraw-Hill Education Limited.
Figure 1-1 Page #5.
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Three Basic Functions Interact
The functions must interact to achieve the goals and objectives of the organization.
Each functional area makes an important contribution to organizational success.
Finance
Marketing
Operations
10
© 2021 McGraw-Hill Education Limited.
For instance, unless operations and marketing work together, marketing may promote goods or services that operations cannot profitably deliver, or operations may turn out goods or services for which there is no demand. Similarly, unless finance and operations work closely, funds for materials, building expansion, and new equipment may not be available when needed.
Three Basic Functions : Airline
This shows how the operations function relates to an airline company.
Note: this is an example of how operations applies to a service based business.
Operations
Finance/
Accounting
Marketing
Ground
Support
Flight
Operations
Facility
Maintenance
Catering
Airline Company
11
© 2021 McGraw-Hill Education Limited.
Operations Function
12
Figure 1-2
© 2021 McGraw-Hill Education Limited.
Figure 1-2 Page#6.
Types of Operations
Operations
Examples
Goods Producing
Farming, mining, construction
,
manufacturing, power generation
Storage/Transportation
Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange
Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment
Films, radio and television,
concerts, recording
Communication
Newspapers, radio and television
newscasts, telephone, satellites
Services
13
© 2021 McGraw-Hill Education Limited.
Transformation Process at a Food Processor
14
Table 1-2
| Food Processor | Inputs | Process | Output |
| Raw Materials | Cleaning | Canned Vegetables | |
| Metal sheets | Making cans | ||
| Water | Cutting | ||
| Energy | Cooking | ||
| Labour | Packing | ||
| Building | Labelling | ||
| Equipment |
© 2021 McGraw-Hill Education Limited.
Table 1-2 Page#6
Transformation Process at a Hospital
15
Table 1-2
| Hospital | Inputs | Process | Output |
| Sick patients, doctors, nurses | Examination | Healthy patients | |
| Building | Surgery | ||
| Medical supplies and drugs | Monitoring | ||
| Equipment | Medication | ||
| Laboratories | Therapy |
© 2021 McGraw-Hill Education Limited.
Table 1-2 Page #6
The Goods-Service Continuum
16
Figure 1-3
© 2021 McGraw-Hill Education Limited.
Figure 1-3 Page #7.
It is important to note that goods and services often occur jointly. For example, having the oil changed in your car is a service, but the new oil is a good. Similarly, house painting is a service, but the paint is a good. The goods–service package is a continuum.
16
Operations Interfaces
17
Figure 1-4
Operations interfaces with a number of supporting functions.
© 2021 McGraw-Hill Education Limited.
Figure 1-4 Page#8
There are many supporting functions that interface with operations.
The Scope of Operations Management
18
© 2021 McGraw-Hill Education Limited.
Page# 8
System design is vital because many of the parameters (and limitations) of the system operation are decided by design.
We have already noted that operations management is responsible for the creation of goods and services. This encompasses acquisition of resources and the conversion of raw material into outputs using one or more transformation processes. This involves designing, planning, scheduling, executing, and controlling the activities/operations that make up the processes.
Designing Decisions
Capacity
Location
Equipment
Planning/Control Decisions
Inventory
Scheduling
Quality assurance
Personnel
| Decision area | Basic question | Chapter |
| Forecasting | What will the demand be? | 3 |
| Product/ service design | What customers want? How to improve products/services? | 4 |
| Capacity | How much capacity will be needed? | 5 |
| Process | What processes should be used? | 6 |
| Layout | What is the best arrangement for the departments? | 6 |
| Work/Job Design | How to improve work methods? | 7 |
| Quality | How to define quality? How to improve it? | 9 |
| Supply Chain Management | Which supplier to choose? | 11 |
| Inventory Management | How much to order? | 12 |
| Aggregate planning | How much capacity will be needed over the medium term? | 13 |
| JIT systems | How to coordinate production and purchasing? | 15 |
| Scheduling | How to schedule jobs, staff? | 16 |
Which decision is design type and which is planning/control type?
The Scope of Operations Management
19
Table 1-3
© 2021 McGraw-Hill Education Limited.
Table 1-3 Page# 9 Text has complete list of chapters
| Differences | Goods (Produce a car) | Services (Teach a class) |
| Output | Tangible | Intangible |
| Customer contact | Low | High |
| Uniformity of input | High | Low |
| Labour content | Low | High |
| Uniformity of output | High | Low |
| Measurement of productivity | Easy | Difficult |
| Quality assurance | Easy | Difficult |
Goods vs. Services
20
© 2021 McGraw-Hill Education Limited.
Page #10-#11
Production of goods and performance of services are often similar in many design and planning/control decisions. However, they differ in:
1. Customer contact, use of inventories, and demand variability.
2. Uniformity of inputs.
3. Labour content of jobs.
4. Uniformity of outputs.
5. Measurement of productivity.
6. Quality assurance.
Goods or Service?
Tangible
Act
Most systems are a blend of both good & service.
Service sector accounts for > 79% of jobs in Canada.
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© 2021 McGraw-Hill Education Limited.
Page#11
Goods vs. Services in Canada
22
Percentage of total labour force by industry.
Figure 1-5
© 2021 McGraw-Hill Education Limited.
Figure 1-5 Page #11
Both service and the goods-producing industries are important to the economy. However, services have been growing faster and now account for more than 79 percent of jobs in Canada
The Operations Manager’s Job
23
The operations manager must coordinate the use of resources through the management activities of planning, organizing, directing, and controlling.
Table 1-4
| Planning | Organizing |
| Capacity | Degree of centralization |
| Location | Departments |
| Mix of products | Subcontracting |
| Production process | Suppliers |
| Layout | Staffing |
| Controlling | Directing |
| Inventory Control | Scheduling |
| Quality control | Issuance of work orders |
| Production pace | Job assignments |
| Motivation | Purchasing |
| Cost control | Logistics |
© 2021 McGraw-Hill Education Limited.
Table 1-4 Page #12
The operations manager has the ultimate responsibility for the creation of goods or performance of services. Note that the person performing this job may have a different title. For example, a fast-food chain’s restaurant manager is essentially the restaurant’s operations manager. At the district level, the district manager is essentially the operations manager, and at the executive level there is usually a vice-president of
