Table of Content

No. Title Pages

1. Executive Summary 2

2. Introduction 3

3. Activities Table 4

4. AON Diagram 5-8

5. Findings 9-10

6. Opinion 11-18

7. Recommendation 19-22

8 Conclusion 23

9. Bibliography/sources 24

10. Appendices 25-

Executive Summary

Project management and layout decision will be the significant items for a guideline
to a company. If the company follow properly in this two components will help company to
take project within time frame, reduce costs, increase profits and improve customer
satisfaction for a long term.

Our team is focus on teamwork. We want to make sure all the members are
understand clearly about the report required, we are encourage everyone to give suggestion in
order to make the report perfectly. In our team, after we decided McDonald’s as our reference
company. We started with conduct an activity chart based on Activity on Node (AON) within
35 days. This diagram must consist of forward and backward pass, slack time and critical
path. When we clarify with the project process, we can follow the guides. So we able to finish
this report in efficiency and effectively without wasting times.

Next, this report concern on layout decision, we need to observe whether McDonald’s
have proper followed the layout decision. In utilisation of space for equipment, McDonald’s
is not fully utilising the space. Because the layout provided brings inconvenience to
customers. For signages and flow of information layout, McDonald’s has simple and bigger
sign inside and outside the store. McDonald’s has not provided good safer working
conditions to the staff as the safety procedures are not clearly stated and provided.
McDonald’s does not having an interaction between customers and staff due to lack of
service management. The servicescapes given by McDonald’s overall is good. The
environment provided is suitable for customers.

We have given some recommendations for the overall performance. In short,

McDonald’s Corporation still need to improve in their services.

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Introduction

McDonald’s Corporation is an American fast food. McDonald’s manage to be as one

of the largest fast food chain in the world. McDonald’s headquarters are in Oak Brook,
Illinois. Brothers Maurice and Richard Mcdonald was started the first McDonald's restaurant
located at San Bernardino, California in 1948. McDonald’s Corporation is incorporated on 21
December 1964. The company’s restaurant serve relevant menu of food and drinks sold at
various price in different currency over 100 countries.

McDonald’s franchised restaurant operates using various strategies involve

developmental license or affiliate and conventional franchise. The company is using franchise
arrangement and generally as a franchisor. Land and building or long term lease own by
company for the restaurant location. The franchisee need to pay for the equipment, seating,
signs and decoration. In the US division is concern on provide a platform for authentic
component that allows customers to customise their meals. In High Growth Markets division
operate its business in different market such as Netherlands, Switzerland, Spain, Russia,
Poland, Korea, Italy, China and related market. It division focused on creating satisfaction of
customers by through menu, value and promotion, and carry out a digital strategy by using
specific mobile solutions and actions. The International Lead Market segment perform in
various markets, such as United Kingdom, Germany, France, Canada, Australia and related
markets. The Foundational markets and corporate division is focused in operating restaurants
and improve the convenience to customers, which is including through delivery service and
drive-thru.

McDonald’s menu provide hamburgers and cheeseburgers, Filet-O-Fish, Big Mac,

Bacon McDouble, chicken sandwiches, sausage McGriddles, chicken McNugget, french
fries, salads, oatmeal. Desserts include McFlurry, soft serve cones, pies, softdrink, sundaes,
McCafe beverages and other beverages.McDonald’s has sell limited-time promotion
products. McDonald’s also provides full or limited breakfast menu in United States and many
international markets. Breakfast menu offers Hotcakes, sausage biscuit with egg, sausage
McMuffin, Fruit & Maple Oatmeal, and McGriddles.

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Activities Table

Cod Activity Time (Days) Immediate Predecessor

e

A Group Forming 1 -

B Discussion 4 A

C Decide company 1 B

D Assign task to members 2 C

E Information research 12 D

F Visit McDonald's layout 1 D

G proposed new company layout 6 E,F

H Accomplish Final Report 7 G

I Submit Report 1 H

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5
 In the beginning of this project, our team that consist of 5 members were set up by our
team leader, Ms Bang Wan Qi, and the rest of the 4 members in our group is Ms Tin Cai Xia,
Ms Lai Jin Li, Ms Tey Jia Yee and Mr Lai Poi Xuan. The purpose of our group are form is to
analyse the layout in the existing market used and create our own layout plan for our
company’ fast food outlet at a minimum cost while satisfy the requirements and needs of the
client and customers better. Through this, our company can provide more comfortable
environment to the customers, at the same time company also generate more customer
satisfaction by using a minimum cost.

After the group are form by our team leader, we are focus on discussion about what is
the weaknesses that our company need to be improve and also which fast food outlet
company could be use as a reference company for us to study their strong point or advantage
of layout in order to help us to improve our company weaknesses. During these days, our
team had done the preliminary research on 10 similar company which are consider, strong
and successful company in the market, which is Kenny Rogers Roasters, Nando’s Malaysia,
Texas Chicken Malaysia, Secret Recipe Cakes & Cafe, Pizza Huts, McDonalds, KFC,
PappaRich, Old Town Coffee and Starbucks. We had study and discuss all of these 10
companies’ specialist and characteristic that are most similar to our company fast food outlet
in order to get the most accurate information and statistic that we required. It will assist us a
lot for us to acknowledge our weaknesses can be improve and provide a wider range of view
for us to generate our own layout.

After our team complete the preliminary investigate about those company, our team
had made a general conclusion and therefore our team had realize that the McDonalds
company is the most suitable for our company to study as our reference company. It is
because McDonalds Company is having the similarity compare to our company. On top of
this, McDonalds company is suitable for us due to the strong point of this company could be
a great reference for us to further improve the weaknesses in our company. Thus,
McDonald’s provide us with a more useful information and statistic for us to generate our
own layout plan to our company.

Furthermore, after we decided McDonald's be our reference company, we are

assigning the task to each member in the group including our team leader. Our team leader,
Ms Bang Wan Qi, need to be the supervisor and timekeeper to ensure that the project and the
task be assign to each member can be complete at time. Also, she will need to combine every
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parts of the member had done to become a complete report and analysis. Ms Tin Cai Xia is
responsible for the information research and explain the information for the rest of the
member in order give a clear picture and understanding on the information that they search
and analysis. Ms Tey Jia Yee and Mr Lai Poi Xuan are the persons who responsible for
further analysis for the information and data that provide by Ms Tin Cai Xia and form a
report for the information and data that had been investigate to Ms Bang Wan Qi in order to
convenient her to combine and understand more in detail. The other member which is Ms Lai
Jin Li is responsible for the design on the new outlet for the company and refer to the
reference company outlet and define the advantage that can be learn and improve in the
company. It can provide a more effective and minimum the cost to generate the largest
benefit for the company and also gain the customers satisfaction toward the company.

After our team assign task to each of the member, our team is started to collect and do
further investigation about the McDonalds company information that our team need. We also
were searching about the factor that may affect the satisfaction of the customers to the
company services and performance including the company’s policy, working process and
working environment and the most important thing, the layout of the business. According to
our research and analysis, the layout of the business is very important to the business because
the layout of the business is directly face toward the customer and our client. It is the first
image of our company to the customer. We found that if the first image is satisfy by the
customers, the customers will more prefer to continue come back again and keep consuming
at there and the staff are also likely to be motivate during the working hour.

After the information research had been done, our team had decided to visit the
McDonalds which allocate in Alpha Angle Mall that near to the LrtWangsaMaju, Setapak,
Kuala Lumpur. During the day of visit the McDonalds, we have taken some photo for
reference purpose and provided us a realistic feeling to the layout arranged by the
McDonalds. These photo taken at that day of visit was assisted a lot during Ms Lai Jin Li
design the new layout because we can base on the layout perform by the McDonalds had
done and do some improvement and rearrange the layout in a more efficient way to fully
utilise the space provided in our company.

Originally we were estimate the design of the new layout need a duration of 10 days
but due to the information and data support is nicely done by the other team member the real
duration spend is reduced to 6 days in design the new layout for our company. The new
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design done by Ms Lai Jin Li was fully fulfil the needs and requirement of the customers or
client and also provided the minimum cost that the project can be afford and required by the
company. According to the new design, the spaces of the shop lot are fully utilised to place
the table, chair and other necessary equipment and the layout is arranged in a comfortable
manner.

When the new design of layout is done by Ms Lai Jin Li, Ms Bang Wan Qi are
combining all the information and generate complete report for submission to the company
CEO, Mr Alan Smith. During the time to accomplish the report, all the team member are
corporate together to assist our team leader to generate the final report in order to reduce the
error and speed up the process. It is because the final report consist of to many of element and
it may lead to the misstatement, thus, our team member have voluntary to assist out team
leader to generate the final report to reduce the burden of our team leader.

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Findings

(a) Utilisation of space for equipment

Utilisation of space means how the company is managing to fully utilise the storage
space. Company having a good equipment layout helps to the employees for clearly identified
and classified the equipment efficiency. Some errors might be avoided especially when
emergency situations. So the equipment must be placed in the optimum location depends on
its purpose. The location placed ensure that will bring accuracy and convenience to
employees. Company have to set which equipment is priority to be used. Any important or
frequently equipments used shall locate in a convenient and easy to be seen places. Important
means the items might be in terms of helping in achieving the goal or task to the company.
For comfort environment, company may give tasks that will allow employees to move their
posture in working day. This will help to reduce muscular fatigue from the employees. If the
company have fully utilised their equipment, it allow company to reduce costs and improve
the efficiency and will increase the customer satisfaction.

(b) Signages and flow of information layout

Signage means anything or anywhere in stores, both interior and exterior signage will
help the product and a brand can be easily recognised to the potential and existing customers.
The objective of signages is helping Company to increase sales and interaction with clients.
Signages are allowing company to provide publicity and advertising to customers. A signage
will make customers to get more impression and catch attention in your company. Company
must ensure the sign is visible all the times. The signages of the company can be advertised in
day and night. Company can place the light signs when dark still can function well to advertise.
The signages can be shown in animation and action to get attention from the customers.
Company should show the signages in simple and effective text, this may catch attentions of
drivers. A good signage will well in promote the company’s brand.

(c) Safer working conditions layout

Company must ensure the working conditions are in well safer layout. Make sure your
restaurant is operating safety for everyone. Restaurant must install fire safety equipment such as
fire extinguisher, emergency lights and exit signs.  Company can arrange short talk about the
safety procedures and practices in order to maintain well safety working environment.

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Restaurant should implement fire safety procedures such as keep flammable items away from
flames, know how to grease fire and have an evacuation plan. Have to ensure the employees will
be calmed when fire happened. Company can teach employees to placed the equipment in
proper way, try to avoid electrical hazards and prevent appliance failure. If the company conduct
in proper safer working conditions, the most common injuries able to be prevented. Company
must analyse any injuries happened before and try to minimise the problem.

(d) Customer/client interactions layout.

Customer interaction layout will gain more businesses from existing and potential
clients. Employees must understand the menu and able to communicate with customers.
Company need to know any weaknesses stated from customers and try to improve it.
Restaurant can offer more menu and dining options such as take-away, delivery and drive-
thru. Customers can having the meal in their favour. This allow company to reduce labour
cost and increase profits. Company can using technology advance method in ordering, so that
enable to reduce the time consume in ordering. Employees can always listen to the problems
from customers about the services of restaurant.

(e) Servicescapes

Servicescapes means how the renovation of the restaurant. Restaurant must operates a
pleasant servicescapes and provide excellent service to clients. It is include some elements
such as lighting, layout, scent, music, colour and design in physical environment. There are 3
types of dimensions of servicescape. Social factor is the interaction between customers and
staff. Make sure they have pleasant communicate with each other. Next, design factor means
how the layout and colour of restaurant. Ambient factor is concern about sign, symbol, music,
artefacts and lighting. Company can show their sign at interior and exterior environment to
attract customers.

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Opinion

(a) Utilisation of space for equipment

At the first glance, the arrangement of the equipment is simple and wide. But when go
inside to order, pick up the foods and place the foods, in these steps can find out some
inconvenient. Because, when customer already pick up their foods, some of them will directly
go to take the sauce and stand at there, and some customer will take the foods through there
to find the seat. Actually that distance can walk only two persons, but if the person that stand
for taking sauce and they are not feeling someone else in behind, they will smash together
and the foods will fall down and wasted.

Not only that, some distances of table to table is far away and some will very closed.
If the customer not has taking anything, they will be easily to pass and take a seat. If the
person who negligently colliding the table, they maybe injury or waste the food.

                                     

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(b) Signage and flow of information layout

The customer can easily to find the location of McDonald’s because the shop signs is
easily recognised. It represents the image of that company. The shop sign need to be clean
and tidy, bigger and undamaged. McDonald’s has meet all these conditions. Moreover, inside
also has put the ‘no smoking’ sign and when wiping the floor, they will put the sign about
‘Caution, Wet Floor’ to caution customer need to be careful.

The location of menu also is the point to get bonus points because the menu is hung
behind the counter. This can let the customer easily to see what the food they want to select
and when new flavour foods put on sale the menu will immediately renew to attract
customers to buy.  

But, that also has something lack, such as sign of hand washing area not stated at
there. The customer needs to walk near to ensure that is the place to wash and drying their
hands.

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(c) Safer working condition layout

Be the fast food restaurant, the customer is important. But, worker is also important
too. If without worker, the whole fast food restaurant will no function and will not have
customer patronages. So, need to guarantee the workers are staying in the safety space and
have some basic safeguard procedures. Like McDonald’s kitchen only has limited space to
the worker to walk when preparing the food and there is only one gate to allow worker
access. If an accident happen, workers will difficult to escape. This will cause the workers get
in trouble.

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(d) Customer/client interactions layout

Customers are source of income for the fast food restaurant. The customers will
continue to patronage not just only of the food delicacy, also because the services from the
workers and the interacting of the customer and worker is well. However, in this
McDonald’s, the interaction of both party are low. Sometime, when the customers finish
taking their foods, the worker not have immediately go to clean up the remnant, until the next
customers reaching. Furthermore, the garbage collection area of there is also not so natty
because when worker cleaning the remnant on the table, they just put the rubbish on the
cabinet not throw it into the cabinet. When customer go through there, they will dislike and
avoid close to there. There also will have the lack of counter. When there is only one counter
open to take order, the customers will boredom and thinks the customer services is not be up
to the mustard.

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(e) Servicescapes

In there, the customer not only enjoying the food, they will also abandon oneself to
the element of the restaurant. Such as the music, colour, design or lightning. The music that
play in the McDonald’s is very suitable and comfort to the customer. Because the volume is
moderation that is not affect the customer chatting with other. Beyond that, there also have
some meaningful sentences and some simple picture that show at the wall to let customer
thinking what is meaning of the sentences, merely appreciate the picture and to allow the
customer to take a picture with that wall.

The music, colour and design are very perfect for the customer, on the other hand, the
lightning of there is not appropriately for customer to be enchanted in that place. The
lightning of there is yellow colour, this is a colour that can protect the eye of customer, but
that type of lightning also will let the customer emotion downward and easily fall to sleep.
Because that yellow not look bright, it is deflecting to the dull.

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(f) Others

Inside that McDonald’s has the wash basinand a dry hand machine for customers to
wash and drying their hands. But the doubts point is that only got one lavabo. There have the
area to set up the other one wash basin that suitable for children height but there is empty.
Only one wash basin is more difficult for child because they need to stand on tiptoe.

The important item that does not have is toilet. Even the mall already provides toilet
in same floor, but customer need to go out the McDonald’s to find the toilet. That is the
problem if the customer just receive their order and they wish to go toilet.

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Recommendation

(a) Utilisation of space for equipment

Our group will fully utilise the space of the equipment through the change of the
arrangement of the seats and the place that set to take the sauce. The distances of the place to
take the sauce and the seats will measure precision, can let the person through and also stand
at there to take the item, no matter how large the movement, they will not affect each other.
And also will rearrange the seats because to let some seat do not too close to each other, need
to have the space that one person can easily pass and take a sit. This will not cause the
colliding problem, potential conflict, injuring and wasting the food.Besides that, we also will
install the screen for the customers to know their order is being prepared or already for pick
up. Not only that we also will install some order machine for customer to self-select the food
or the set they want. So that if counter has too many customers, remaining customer can go to
the order machine to place order. The payments for use the order machine have two choices,
one is pay by card and another is pay by cash.

(b) Signage and flow of information layout

The shop sign of McDonald’s is very suitable for customer to remember. And this is
the point our group can be learn and can be do it better like more colourful and more bigger
to attract customer attention. In addition, not only the menu hung behind the counter, put the
big poster at left and right side at counter and also use the animation and action menu to catch
customer’s sight and arouse customer’s curiosity in how the taste about the food. Moreover,
in a specific place, we will put the conspicuous sign to mention clearly what place is that.

(c) Safer working condition layout

To basically protect the workers, our group decided to give the workers training about
how to properly use the machine in the kitchen according to the instructions to avoid
misunderstanding and the small mistakes. And also need to enlarge the space of the kitchen
for workers easily to take the food and use the machine, to avoid bump against each other to
cause injuring or the other seriously problem. Moreover, to build more gates when the
accidents happen, the worker can easily take flight and avoid the stampede.

(d) Customer/client interactions layout

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 We will do the segregate of duties that is the daily quantity of workers in the kitchen,
the workers to clear up the remnant to throw to the garbage collection area and clean that
area. And arrange the alternant worker to fulfil the all counter to let the customer can make
order as faster as possible. And we will make sure the workers will understanding the
customer services is very important. Because if not have customer, we will not earn any
profit and will going to liquidation. In addition, we will train our worker to always smile to
customers to improve the image of our restaurant. We also need to collect the customer’s
feedback when they think about the services are lack or something wrong. We can improve
our customer services according to the feedback and know what can be correcting to bring us
to the new level.

(e) Servicescapes

The first item will change by us will be the lightning. We could change them to the
white or the bright yellow colour to let the customer more mind in enjoying the food and can
chat with other more delightfulness, not feeling want to go to sleep. The music, colour and
design will like the McDonald’s. McDonald's can try to play the music in the befitting
volume, to put the more attractive picture and the interesting and make sense sentences and to
increase the lighting at the wall to let the customers to take picture in there.

(f) Others

Really need to be increase the wash basin for the child to make sure they no need to
stand on tiptoe because if they incaution fall over, that will let them be wounded. So we need
to make sure has one wash basin is for child and one is for other. The toilet is very important
because if the customer wants to go to toilet, and that time he just received his order, and he
is go to McDonald’s alone, he will go to toilet or continue to finish his food? If go to toilet,
cannot confirm his food is still at there. So need to build a toilet to bring convenience for the
customers.

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Conclusion

From this report we done, we are able to know clearly the important of the project
management and layout decision. If a company having this 2 components, will help company
to reduce costs, increase profits and improve customer satisfaction.

In project management, we are given 35 days to complete the task. We learn to finish
the report within time frame and act as efficiency and effectively. This encourage us do not
simply waste up the time. If any extend of time will affect whole the time frame and may
hard to finish on time. This also will cause the company revenue dropped and costs increased.

In layout decision, there are 5 sectors that we use as guidelines to observe the layout
toward McDonald's. Some of the decisions that McDonald's is done well, but others sectors
are encouraging McDonald's have to improve their services in order to attract more customers
for long term.

In conclusion, McDonald's Corporate had brought a lesson to our company for

helping us to improve our services and performance in different layouts.

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Bibliography/sources

References
F.Robert , J. & Richard, B., 2018. Operations and Supply Chain Management. Fifteenth Edition ed.
s.l.:McGraw-Hill Education.

JAY, H. & BARRY, R., 2005. Operation Management Flexible Version. Seventh Edition ed. s.l.:Pearson
Education, Inc.

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Appendices

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