Operational Management at Mcdonald
One aspect of facilities layout for McDonald's is that when customers come into the building, they line up in one of several lines and wait to be served. In contrast, customers at Wendy's are asked to stand in one line that snakes around the front of the counter and to wait for a server to become available.
a) What is the rationale for each approach?
b) Which approach do you favour from (1) a customer's perspective and (2) management's perspective? Explain.
A Rationale for McDonald approach McDonald's success had been built on four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and demands for a wider menu drive-through and sit-down meals - encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain. McDonalds use assembly line procedures in their kitchen for mass production so as to keep prices low. Speed, service and cleanliness is one of the critical success factors of the business.
Lining up in one of the several lines tied into McDonald’s capability statement on speedy service, efficiency and good customer service. Each staff at McDonald is trained to change roles within shifts and this makes resource management during peak and off peak hours manageable. At all times there is enough staff on hand to take care of business and overall effectiveness is improved
Drawback to this approach includes huge rental space to accommodate large operational facility. It could also become very costly on staff training. Workforce productivity are not usually related to the number of staff working on a task, and productivity variance may tilt negatively for McDonalds on this. Operating cost are very high and unless this is well managed, it may not necessarily be profitable.
Rational for Wendy’s approach
The rationale for Wendy's "old fashioned" hamburgers could be traced to the history of unsuccessful attempts to outperform the competition which created the low
a) What is the rationale for each approach?
b) Which approach do you favour from (1) a customer's perspective and (2) management's perspective? Explain.
A Rationale for McDonald approach McDonald's success had been built on four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and demands for a wider menu drive-through and sit-down meals - encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain. McDonalds use assembly line procedures in their kitchen for mass production so as to keep prices low. Speed, service and cleanliness is one of the critical success factors of the business.
Lining up in one of the several lines tied into McDonald’s capability statement on speedy service, efficiency and good customer service. Each staff at McDonald is trained to change roles within shifts and this makes resource management during peak and off peak hours manageable. At all times there is enough staff on hand to take care of business and overall effectiveness is improved
Drawback to this approach includes huge rental space to accommodate large operational facility. It could also become very costly on staff training. Workforce productivity are not usually related to the number of staff working on a task, and productivity variance may tilt negatively for McDonalds on this. Operating cost are very high and unless this is well managed, it may not necessarily be profitable.
Rational for Wendy’s approach
The rationale for Wendy's "old fashioned" hamburgers could be traced to the history of unsuccessful attempts to outperform the competition which created the low