McDonalds Restaurant.

BUSINESS SUMMARY
McDonalds Company franchises and operates McDonald’s restaurant serving local menu of
quality food and beverages in over 100 countries with 93% of its restaurants are franchised.

Products offered by McDonald’s restaurants contain similar menu, with geographic variations
to suit local consumer restaurants. It’s menu includes hamburgers and cheeseburgers, Big Mac,
Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets,
wraps, McDonald's Fries, salads, oatmeal, pies, soft drinks, coffee, McCafé beverages and other
beverages.
Customers
Its customer’s value quality and nutrition that makes them to continuously transform their
products such as product testing. It can differentiate its product from competitor’s products
through marketing, promotion and public relations.
Competitors:
McDonald’s main competitors are international, national and local retailing in food products. It
competes using price, effective services, experience, menu variety and quality.
The Company has over 200,000 employees as at 2019, indicating a very large organization
Project Description
The Company is partnering with Franchisees to decrease greenhouse emission of gas by
McDonald’s restaurants and offices by 36%. McDonald is currently constructing a restaurant at
the Pictou Rotary that is expected to be completed in Summer.The contractor is the Canadian
CMG constructions which has been working with McDonalds for many years (Saltwire,2020).
(202 words)
1.0. Project Risk Management
1.1. Definitions
Project risk is an uncertain event or condition that affects the project objective if it occurs,
these project objectives include scope, time, cost and quality (Eldash, K .2012).
Defining risk management
Wright, W (2017) defines project risk management as using intelligence, experience and
research to find practical strategies to deal with risks, preferably as a preventive measure.
1.2. Risk Management process.
The project manager of CMG construction has to lead the five stages of risk management
process:
1 Identification of all potential risks that might affect the project by using a risk register (or risk
log).
2 Appraise each risk in terms of the potential impact on the project.
3 Appraise each risk in terms of the likelihood of occurrence.
4 Devise, document, implement and monitor an appropriate response for each risk.
5 Review stages 1–4 on a continuous basis.

1.2.1. Risk identification

Risk identification plays an important step in the risk management process.This will enable CMG
construction to list the probable risks before they begin constructing the McDonalds’ restaurant
at Pictou rotary in Canada.The risks can be identified in the following ways:
Identification participants:
Eldash,K (2012) ,all project team members should attend this identification meeting. The people
can attend the meeting includes project manager and project team project sponsors and site
representatives, health, safety and environmental specialists; users of the project outcomes
among others.
In McDonalds case the project is carried out by CMG construction that will be represented by
its project manager, engineers, franchisee, Franchisor among others (CMG,2020).
Information collecting techniques
With the presence of different stakeholders, CMG construction can gather information in the
following ways:
I. Documentation reviews:
This entails reviewing project plans, assumptions, and historical information from a total project
viewpoint together with the individual deliverables or activities level. This review helps the
project team of CMG construction to identify risks connected with the McDonalds restaurant
construction project objectives (Eldash ,K .2012).
II. Brainstorming
 Eldash,K (2012) states this is a group creativity technique designed to generate a large number
of thoughts from a group to solve a problem. This can be used bt CMG construction to
motivate the team and improve teamwork.
III Interviewing
This is question-and-answer sessions held with other project managers, experts, stakeholders,
customers, the management team, project team members, and users. They can give possible
risks based on their past experiences with similar projects (Eldash, K .2012). CMG construction
has done similar projects with McDonalds (CMG.2020).

SWOT analysis
SWOT Analysis is a strategic planning method that can be used by CMG constructions to
evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in the McDonalds
restaurant project. It entails stating the objective of the project and identifying the internal
and external factors that favor or does not favor the achievement of that objective (Eldash ,K .
2012).
Risk Register
According to Eldash,K (2012),the risk register contains
• List of risks.
• List of potential responses.
•Main causes of risks previously examined, and are now documented.
• Updated risk types
Risk Documentation
This entails the numbering of each element and risk to ease storage and recovery of
information. Each risk should be described in terms of the assumptions and causes of risk
(Eldash,K .2012).
1.2.2.Ranking each risk with a matrix
Wright, W (2017), argues that, a high impact risk but with low probability should be given more
or less the same attention as a risk of relatively low impact but high probability. The risk
management matrix is a simple grid with one axis representing the potential impact of a risk
and the other the likelihood (probability) of the risk occurring. The figure below represents the
5 × 5 risk matrix whereby the red represents risks of the greatest concern (significance) and
green the least, allowing you to prioritize the risks. A risk placed into the upper
right cell (high likelihood and high impact) would be of high importance and demand immediate
attention, while risks in the lower left cell would be of less immediate interest. The colours are
assigned by multiplying the likelihood by the impact, with the largest resultant values being red,
and so on.

5x5 Risk Matrix

Risk probability & impact assessment
The tool is used by CMG constructions to identify events that are risky that will occur and their
impact’s effects on the McDonalds restaurant construction project objectives such as time,
scope ,cost and quality i.e it should be delivered before summer of 2020(Eldash,K.2012).
This tool is used to evaluate the probability that the identified risk events will occur, and it also
establishes the effect of their impacts on the project objectives, including time, scope, quality,
and cost. Eldash ,K.(2012 ),argues that analyzing risks in this method allows CMG construction
to determine the risks that require immediate management.
Probability is the likelihood that an event will occur. The typical example is flipping a coin. There
is a 0.50 probability of getting heads and a 0.50 probability of getting tails on the flip. Therefore
the probability that an event occurring plus the probability that the event not occurring all the
time equals 1.0.
Impact is the amount of pain (or the amount of gain) of the risk event to the project. The risk
impact scale can be a relative scale that assigns values such as high- medium-low (or some
combination of these) or a numeric scale known as a cardinal scale. Cardinal scale values are
actual numeric values assigned to the risk impact (Eldash ,K.2012 ).
1.2.2.CMG Construction Risk Management Process
Avoid the Construction Project Risk
This entails not venturing in the project or negotiating the contract in order to remove the risks.
This is achieved by walking away from the project if the risks are more than the returns.
Transfer the Project Risk
McDonalds has transferred this project of building restaurants to the franchisees . Jones, K
(2020), they have to discuss with stakeholders. The organization can transfer the risk to
insurance company. This is because it might not be the right fit to manage a particular risk
Mitigate the Project Risk
 This entails to eliminate, reduce and accept risks by taking proper planning. Breaking down
each risk into actionable items. The company should not overcommit its resources to handling
several risks. Though McDonalds contractor CMG may be required to bring in extra resources to
manage its risks properly (Jones, K .2020).
Accept the Project Risk
Jones, K (2020), this is a decision that should be taken with seriousness. A few low probability,
low impact risks can be accepted. The company needs good management and mitigation in
order to undertake (accept ) a high probability, high impact risk refer to appendix 1.

(1102 words)

2.0 Network diagra

Project management network diagrams are used for schedule preparation and analysis of
schedule. It entails the pictorially show project activities and relationships amongst the
activities using both nodes and arrows (Malik,P.2020).
Function of a Network Diagram.
Sinnapps (n.d.) notes that the network diagram plays an important role in project as it shows
how different components interact; it can help the CMG construction to perform the following:
I. Network Diagrams help authenticate the time estimation for the McDonald’s restaurant
project.It enables the estimation of project time as it shows a clear picture of how different
tasks depend on each other, this can be communicated to the stakeholders
II. Management of the project for CMG construction is possible through proper planning
,organizing and controlling by understanding the importance of each task.
III. The project manager of CMG construction can easily define task interdependency,this
facilitates project workflow and performance of each activity to meet the project objectives.
IV. The definition of activity workflow by knowing completed and pending activities, this will
enable the CMG construction project Manager to ascertain the project’s effectiveness and
status of workflow.
V. Opportunities to compress the schedule can be identified on the Network diagram, the project
manager can identify activities that needs to be shortened
Kenton, W (2020) defines Critical path analysis (CPA) is a project management method that
requires mapping out each main task that is essential to conclude a project. It entails identifying
the amount of time needed to conclude every activity and the dependencies of every activity
on others. It identifies the progression of critical and mutually dependent steps that
encompass a work plan from start to finish. It also identifies non-critical tasks.
CGM Network Diagram
Schedule of Activities.

TASK DESCRIPTION DURATION (Weeks) PREDECESSOR

A Excavation
B Lay Foundation
C Rough Plumbing
D Pouring Concrete
E Finish exterior
F Install HVAC
G Rough Electric
H Sheet rock
I Install Cabinets
J Paint
2 -
5 A
3 B
12 B
8 D
5 D
6 D
8 C,E,F,G
4 H
5 H
 K Final Plumbing 2 I
L Final Electric 3 J
M Install floor 5 K,L
K

I 2 weeks
4 weeks

H
8 weeks
A B C M
3 weeks 5 weeks 3 weeks 5 weeks
G
6 weeks

J
E 5 weeks
D
8 weeks
12
weeks
L
F 3 weeks
5 weeks

A-B-C-H-J-L-M=32 weeks

A-B-D-G-H-J-L-M=50 weeks-Critical path

A-B-D-E-H-I-K-M=47 weeks

A-B-D-F-H-I-K-M=44 weeks

Target the critical path

For the project manager to reduce the overall duration ,time savings is on the critical path
tasks.
Or there is little or no benefit in finding savings on non-critical tasks as if that is all you have,
the critical path will remain exactly identical, and the overall duration of the project will be the
same.
 K

I 2 weeks
4 weeks

H
8 weeks
A B C M
3 weeks 5 weeks 3 weeks 5 weeks
G
6 weeks

J
E 5 weeks
D12
8 weeks
weeks

L
F 3 weeks
5 weeks

The critical path runs through A-B-D-G-H-J-L-M and the total duration of the tasks on this path
is 50 days, which is the planned duration of the project.
Suppose the project manager has found a way to save 2 weeks on Task J and a way to save
another 2 weeks on Task L. A total of 4 weeks.
Now the network diagram has changed and the critical path runs through A-B-D-E-H-I-K-M and
gives planned project duration of 75 weeks (Figure 14). This is a significant saving on the
original plan (50 − 46 = 3 weeks saved) but not as much as the 4 weeks saved on Tasks J and L.

(607 Words)
3.0. Project Resources
3.1. Definition of resources:
What Is Resource Management?
Hartney, J (2016), defines resource as anything used to implement a project. This includes
equipment, tools, supplies, materials and people. Resource management is a technique used by
project managers to effectively manage the project resources. It entails planning to make sure
resources are in the hands of those who require them, when they require them.
3.2.Categories of Resources
There are four man types of resources such as human resource, Tools & equipment, Material &
supplies, Fixed cost items like subcontractors, etc.
Labor
In accounting labor is divided into three categories:
Direct.  Work resulting in production units.  The hourly unit rate of a laborer, or a salary divided
into the number of days or hours they work on the project.  This include benefits, retirement
contributions, bonuses, and other expenses related with the employee.
Indirect.  Work that doesn’t directly translate to production though its used to prodce
deliverables for example quality control, production supervision, and project management. 
To get an accurate project cost these categories of labor should be included in estimation
Overhead.  These includes organizational administration, the organizational administration
(non-project) expense is calculated annually and divided among the number of employees to
get a unit rate which is added to the direct labor rate (Hartney, J .2016).
Tools & Equipment
Hartney, J (2016), notes that this category contains all of the items that do not go into the final
product for example equipment such as software, forklifts, and excavators.
Materials & Supplies
These are items that are part of the final product for example timber for construction which
have to be quoted properly by the unit like per foot. Hartney, J (2016),argues that one must
calculate extra quantity and include a little extra.
Other Resources
Hartney, J (2016), notes that for larger projects, or where greater project management effort is
necessary, the following resources can also be used.
Organizational/ Administration.  The fraction of the organization’s administration cost that the
project must pay for.
Facilities.  The purchase or rental of buildings to do the work.
Financing costs.  The interest cost for loans needed to carry out the project.
Overtime pay.  This applies to people as well as to equipment that’s rates increase after a
certain point in time.
3.3. Quantification of resources

The following table shows the quantification of resources used by CMG construction to deliver
the McDonald’s restaurant construction, from excavation all through to completion. It indicates
the activity , type ,average use and total:
Activity Type Average Use Total

A –Excavation Excavation Contractor 30 hrs @ $160/hr $4,800

John 10 hrs @ $40/hr $ 400

Total $5,200
B- Lay Foundation Concrete Forms Lump Sum $1,500
John 20 hrs @ $40/hr $ 800
Paul 40 hrs @ $30/hr $1,200
Peter 40 hrs @ $30/hr $1,200

Total $4,700

K& L Electrical Contractor Lump Sum $ 8,000

Electrical & Plumbing
Plumbing Contractor Lump Sum
$10,000
John 15 hrs @ $40/hr
Total $ 600

$18,600
M Floor contractor Lump Sum $18,000
8 hrs @
Install floor John $ 3,200
$40/hr
Total $21,200
The total cost for the restaurant is:

Tasks Budget for CMG constructing the restaurant

TASK ACTIVITY COST

A Excavation $ 5,200
B Lay Foundation $ 4,700
K&L Electrical & Plumbing $18,600
M Install Floor $21,200
Total $49,700

(548 words)
4.0.Project Monitoring and Control

What is project control?

Projectmanage(2019) defines project control is a “project management function that entails
comparing actual performance with planned performance and taking appropriate corrective
action to correct the deviation.”
The control keeps the project on schedule and ensure the right decision making
According to Wright, W (2017),n terms of process/theory, tracking a project in terms of process
is a five-step process:
1 Creation of a baseline plan in the form of a Gantt chart .
2 Occasionally update the plan with task-based progress by recording all the costs incurred
(e.g. weekly).
3 Initiate a programme of formal quality reviews to ensure the quality of project deliverables.
4 Compare the baseline with the updated plan to determine how closely current progress and
costs match the original plan this is important for Step 5.
5 Implement appropriate strategies and tactics to address real and projected deviations outside
selected tolerances.
4.1. Tracking progress with a Gantt chart
Wright, W (2017) defines a gantt chart as a tool used by the project manager to present and
track tasks over time. It is a horizontal bar chart (one bar per task) with the timescale
at the top of the chart.
The project manager of CMG construction can use a Gantt chart to track the progress of the
McDonalds restaurant construction. This is by having a target for a given period of time and
finding out f this has been achieved
Projects can be represented and understood with a minimum of effort.

Tas Module Wee Wee Wee Wee Wee Wk Wk Wk Wk Wk Wk k wk

k k1 k2 k3 k4 k5 6 7 8 9 10 11 12 13

A Excavation

B Lay Foundation

C Rough Plumbing

D Pouring
Concrete

E Finish exterior

F Install HVAC

G Rough Electric
 H Sheet rock

I Install Cabinets

J Paint

K Final Plumbing

L Final Electric

M Install floor

4.2. Comparing planned spending with actual spending

The budget for the project is equally provided and the relevant financial resources and the
manager needs to be accountable for all the resources given for example how much should we
have spend by week 3 represented using the red line above. How much money has been spent
by now?
The variance is simply calculated as Actual % minus Planned %.
TASK Planned % Actual % Variance
Excavation 100 100 0
Lay Foundation 100 100 0
Rough Plumbing 80 60 -20
Pouring Concrete 80 70 -10
Finish exterior 80 60 -20
Install HVAC 90 75 -15
Rough Electric 70 10 -60
Sheet rock 0 0 0
 Install Cabinets 0 0 0
Paint 0 0 0
Final Plumbing 0 0 0
Final Electric 0 0 0
Install floor 0 0 0

The project manager is supposed to know the amount that should have been spent. He needs
to multiply the budget value for each task by the Actual % value for each task
The money spent for the first 3 weeks of the project
TASK Budget ($m) Actual % Expected spend
Excavation $ 5,200 100 $ 5,200
Lay Foundation $ 4,700 100 $ 4,700
Electrical & Plumbing $18,600 70 $13,020
Install Floor $21,200 0 0
Total $49700 $22,929

4.3.Recovering Lost Progress.

Wright, W (2017)recommends, the project manager after using the Gantt chart to track the
project ,its very important to close the variance and this entails recovering lost progress in the
following ways:
i) Deploying additional resources:
This entails throwing additional resources to the project (crashing a task), these resources are
brought in on a short tie contract basis.
ii) Redeploy talented resources
This entails assigning existing talented resource to a given task that can be completed faster.
The staff can also be given longer working hours n for of overtime.
iii) Reduce or change the project work scope
This may entails renegotiating the complexity or scope of the project deliverables at the same
time still being acceptable to the client, sponsor and other key stakeholders.
iv) Outsourcing work packages
The project managers can get the solution to the problem externally with experienced
subcontractors and yet he is concentrating only in house. This is a good approach though it may
result in substantial transaction costs (e.g. the paperwork required to engage with a
subcontractor and monitoring thereafter) though its beneficial in terms of time saving
(719 Words)
References
Projectmanage(2019) Project monitoring and control techniques[Online]Available at:
https://www.projectmanagementqualification.com/blog/2019/10/21/project-monitoring-
control/

Hartney, J (2016) Determining Project Resources [Online] Available at:

https://www.projectengineer.net/determining-project-resources/ (Accessed:15.10.2020)
Malik,P (2020) Network diagram examples [Online]Available at:
https://www.pmbypm.com/project-network-diagram/ (Accessed: 14.10.2020)

Eldash,K (2012) PROJECT RISK MANAGEMENT (COURSE NOTES)[Online]Available at:

https://www.researchgate.net/publication/271909639_PROJECT_RISK_MANAGEMENT_COURS
E_NOTES/link/54d66b130cf24647580f83ec/download (Accessed:13.10.20)
McDonalds (2019) Sustainable Restaurants [Online] Available at :
https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-planet/sustainable-
restaurant-design.html (Accessed:12.10.2020)

McDonalds (2019) Annual report [Online] Available at:

https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_MCD_2019.pdf
(Accessed:13.10.2020)

Saltwire(2020)McDonalds restaurant expected at Pictou Rotary by Summer 2020

https://www.saltwire.com/news/mcdonalds-restaurant-expected-at-pictou-rotary-by-
summer-2020-346417/?location=nova-scotia

https://cmgconstructionservices.com/about/

Wright, W (2017) Project Management ,ABE.UK

Jones , K (2020) Identifying and Managing Construction Project Risks[Online]Available at:

https://www.constructconnect.com/blog/identifying-managing-construction-project-risks
(Accessed:12.10.2020)
 
Sinnaps (n.d.) WHAT IS NETWORK DIAGRAM IN PROJECT MANAGEMENT?[Online]Available at:
https://www.sinnaps.com/en/project-management-blog/network-diagram-project-
management (Accessed:14.10.2020)
Kenton,W (2020) Critical Path Analysis (CPA) [Online]Available at:
https://www.investopedia.com/terms/c/critical-path-analysis.asp (Accessed:15.10.2020)
Appendix 1: Risk Assesment by CMG Construction

Risk Statement Impact Proba bility Risk Response

Material Quality Required material Cost, Scope 20% Backup supplier
does not match has been
the quality needed identified
Availability Increase in the Cost Time 30% Reserve some
price of materials extra money for
this risk
management
Labour strike Labour strike due Time, Scope 10% Give good pay and
to any problem benefits so that
this risk can be
manage
Natural disaster Earth quake, flood Cost, Scope, Time 2% Start the project
etc again
Stakeholder Change the Quality, Time, Cost 15% Taking notice on
requirement, or their requirements
may be the project and work again to
progress is not up fulfil their new
to their requirements
expectations
Software failure System does not Cost, Schedule 10% Purchase new
work system
Machinery failure Machinery does Cost, Quality, 25% Purchase new
not work properly schedule machinery, or
backup machinery
Load shedding Electricity work Cost, Schedule 20% Purchase
affected and generator
machinery does
not work due to
load shedding