What did you, personally, learn from this assignment, including the case analyses, the field trips and your experiences working in your Team? only McDonald CORP (Limit: 3 Pages – double spaced- plus Exhibits)
PART A: Analyze the McDonald CORP. and BURGER KING CORP. CASES –Map the process sequence and the physical ‘Layout’, identify the ‘Bottleneck’ and analyze the design, operational, and cost, differences between the McDonald and Burger King Outlets in Hillybourne; as described in the cases. How do these differences relate to each company’s method of competing in the marketplace? How well positioned are the operating systems for changes in product design or market demand? What implications do the different operating systems and technologies have for the management of these operations and their future strategies? Pay specific attention to the “man-machine” interfaces, the production rates, the Human Resource Policies and capacity vs. demand. What is the role/location of Inventory at each? How does the inventory location affect the producer – customer relationship? What is the difference between a ‘Make to Stock’ and a ‘Make to Order’ system? How does this choice affect the customer? What impact does it have on profitability?
Calculate the costs and profits as a function of variation in demand level over the course (by the hour) of a typical day. What happens? Why? What are the implications for the business strategy? (Hint: Map the processes at each. Work the numbers-capacity, WIP, cycle time, cost and profits). How do costs and profits vary at each with the hourly variation in demand? Discuss the implications of grill vs. broiler technology and ‘make-to-stock’ Vs ‘make-to-order’ operations strategy decisions. How does the location of inventories affect the productivity and flexibility of each process?
How does it differ from the “old” system described in the case? (Batch vs. Continuous Flow; Job Shop vs. Production Line; Make-to-Order vs. Make-to-Stock; Fixed vs. Variable Costs, Human resource Management; Technology & Process Design; Etc.?) Is it better? How? Why? Diagram (map) the process and the layout. Use Google to find more recent articles/videos about the changes at McDonalds since 2001. How have these more recent process and product innovations changed the 4 V’s and the capability for service speed, customization, new product introduction and profitability? Evaluate the economics of the system? What are the competitive advantages of the new system vs. the old system? Was the change a good idea? Why? What happens next? Why has McD’s undergone so many process and product and ‘Business Model’ changes since 1980 and 2,000?
Discuss the results of your analysis of the ‘old’ McD and BK Cases; then describe, analyze and discuss the ‘Operating System’ at the ‘NEW’ McDonalds and at the ‘Other’ Restaurant. How is the current ‘Process System’ at McD’s different from the ‘Original’ system described in the cases written about the Hillybourne McD’s and BK in 1980? Is it better than the ‘old’ system? HOW? WHY? (Process Map, Layout, Facilities, $ V’s, Flows and Stocks of materials and People, Product Design, Role of the Customer, Cycle time and Capacity, Lead time, etc.) (HINT: There is a lot of information on McD on the Internet.)
How is the ‘Other’ Restaurant you visited similar or different as compared to McD’s (and if you wish, BK)? What did you learn from this ‘Other’ venue visit?
What does your comparison of the old and new systems and McD vs. its rivals or other facilities teach us about Process Design and Operations Strategy; as they relate to Business Success and the concept of ‘Sustained Competitive Advantage’? (Pay particular attention to the location and role of ‘Inventory’.)
How might McDonalds further improve its current (2016) ‘operating system’? What impacts would you expect your suggested improvements to have on McD’s PROFITABILITY?Based on your analyses of the Old vs. New McD and what you learned from the BK case and your visit to the ‘Other’ restaurant: Make one or more recommendations for change/action to the CEO of McDonalds. Justify your recommendation with analyses and evidence and suggest how this change will improve McD’s ‘Competitive Advantage’ and profitability.
HINTS ON OPERATIONS MANAGEMENT CASE ANALYSIS:
- READ THE CASE – AT LEAST TWICE – ONCE BACKWARDS. LOOK FOR IMPORTANT NUMBERS. IDENTIFY THE ‘PROBLEM(S)’ THAT NEEDS TO BE SOLVED. See what the ‘Exhibits’ tell you. Look for the cause/problem – effect/symptom relationships.
- MAP (draw) THE PROCESS (ES) – IN DETAIL. Identify the sequence of tasks that need to be performed to produce the product (goods or services or both) and map out which must be done in series and which may be done in parallel. Remember there may be more than one ‘process’ going on; either in series or parallel. For each process; identify in detail each task (design/equipment/people/knowledge, time standard and capacity) and identify the ‘bottleneck’ in any multi-stage process sequence.
- Work the numbers!! Analyze each process for Cycle Time and Lead time and don’t confuse the two. Consider capacity, scheduling and productivity/asset utilization for each task and for the process as a whole.
- Step back – look at the product/service the process is designed to produce and ask if there is a good ‘fit’. What ‘business’ is the organization in? Who is the Customer? What Problem does the ‘process’ solve for that customer/market segment? Why do they come to us (we are either ‘better’ or lower cost/cheaper priced) and how does the process support that ‘sustainable competitive advantage’?
- Identify the ‘4 V’s’ – See the Slack book. How many products/services is the process trying to produce and do they conflict? Is the process trying to support more than one ‘business’ and do they conflict with or support each other?
- Work the Economics and Financial numbers. Is this process profitable? Will recommended changes improve profitability? How? Why?
- Think again about the fundamental problems that need to be fixed. Will fixing those help the customer and/or make the SBU more profitable?
- Create solutions to the problems identified – be creative. Then go back and redo d – g. More than once if necessary.
- ‘Step back’ again and look for ‘fit’ between your process changes, other functions, and the organization structure and strategy of the SBU.
- FINALLY, review for logic, proper use of ‘evidence’, ‘fit’, flow of ideas, persuasiveness of your ‘argument’, proper grammar/vocabulary/organization of ideas.