S. S.

Dempo College of Commerce & Economics

PRODUCTION AND OPERATION MANAGEMENT

ITA 2

GROUP 1
Bakhita Figueiredo D-20-315
Joel Leitao D-20-323
Sarah Baig D-20-302
Ishita Goel D-20-317
Divya Fatarpekar D-20-330
Kadisha Barreto D-20-351
Rahul Rathod D-20-336

QUESTION
Identify a process that you encounter on a daily basis, such as lunch / cafetaria/ restaurant on a journey
from your home to your work / college. What are the bottlenecks that limit the throughput of this process
and how could its efficiency be improved.? Make necessary assumptions and if required include a
pictorial representation for better explanation.

INTRODUCTION
McDonald's is the world's largest fast-food chain, with over 38000 restaurants across 120 countries. It is one
of the world's most well-known and valuable brands and holds a leading share in the globally branded quick
service restaurant segment of the informal eating-out market in virtually every country in which they do
business. Founded in the US in 1940 as a standalone barbeque
restaurant before the founders Richard and Maurice
McDonald revolutionized the company’s business model
using production line principles to set up hamburger stands.
In 1955 business man Ray Kroc joined the team and started
franchising restaurants and improving the companies
return on capital. McDonald's opened its first
international restaurant in Richmond, British
Columbia, Canada outside the United States in 1967.
Today it serves nearly 17 million global customers
daily. All the markets in which McDonald's operate have
different cultures and taste preferences. It one size fits
all strategy thus it necessary works in the restaurant industry.
Even the having a strong capture in the market now the start was not that great. They faced a crossroads in
the early 1990s.
Domestically, sales and revenues were flattening as competitors like Burger King, Wendy's, and Taco Bell
encountered new challenges
Sonic and Rally's competed using a back-to-
basics approach of quickly serving up
burgers, just burgers, for timeless
consumers.
McDonald's was gathering flak from
environmentalists who decried all the litter
and solid waste its restaurants generated each
day
To counter some of the criticism, McDonald's
partnered with the Environmental Defense
Fund (EDF) to explore new ways to make
its operations more friendly to the environment.
Together, EDF and McDonald's considered its impact on a wide range of stakeholders-customers, suppliers,
franchisees, and the environment. The company gave its franchisees much autonomy in finding ways to
eliminate environmental blight

PRODUCT BOTTLENECK
MacDonald’s have A BAD PRODUCT FOOD IMAGE, most of us have probably been in this situation
where we want to grab a quick tasty meal from mac but our parents or friends reminding us about how
unhealthy it is. So, to defend the image of its food, McDonald’s launched a social media campaign inviting
customers to ask questions about the ingredients it uses. Showing just how bad perceptions can be, among
the first questions McDonald’s addressed were “Why
doesn’t your food rot?” and “Do you use real chicken in your
Chicken McNuggets?” Smita Jatia, MD, McDonald's India
West and South say the brand has been evolving with the
times, the consumer and technology in the age of the post-pandemic customer that’s concerned with health,
fitness and clean eating, how does the burger the very definition of ‘junk food’ keep up. “There isn’t much
of a difference between a Vada pav, pav bhaji, a masala dosa, and other Indian versions of junk food and a
burger. These are myths that need to be busted. Since 2016, we’ve reduced 40% of oil from our mayonnaise
that brings down calorie content by 11%, introduced whole wheat buns, reduced sodium content and added
more fiber in the patties of our burger,” Jatia explains.
There were some challenges, or opportunities, in building the MacDonald chains in India in first place as
Bringing in a brand that was globally known for its beef burgers to a culturally sensitive market like India
was tricky, no beef or pork, plus the creation of separate veg and non-veg kitchens. the biggest challenge
was bringing consumers a taste that was familiar but in a uniquely McDonald’s way, and hence created a
menu especially designed to match the taste of Indians.
CONSISTENCY has long been one of McDonald’s attractions, people like knowing exactly what they’ll
get when they order a Mac. But now people are gravitating
toward places like subway etc., that let people tailor their
orders. To offer greater customization down the line,
McDonald’s recently rolled out prep tables in its kitchens
that can hold more toppings and sauces. The company is
also testing a “Build-Your- Own-Burger” offering in
Southern California that lets people pick the bun, patty and
toppings they want. In Australia, McDonald’s has
already said it plans to roll out the format nationwide. And
might take some time to make its way to India. And since personal personalization might take a while to fill
in the gap MacDonald are coming up with celebrity customized meals like the Mariah Carey Meal in the
US, and is now making its way to India with ‘The Rashmika Meal’, McDonald’s India (South and West) has
curated a special meal ‘The Rashmika Meal’, in collaboration with Superstar

PEOPLE’S BOTTLENECK

Peoples bottleneck Refers to when the people in the organisation do not work efficiently, leading to problems in the
food making process. People bottlenecks can be caused by insufficient training. They can also be affected by a
remote management style, meaning that there is poor
visibility from management of what is happening on
the production line. Adding more people to a problem is not
necessarily the right solution. Where systems are overly
complex or vulnerable to error, automating them can both
solve the bottleneck and free up staff to perform more
valuable tasks.

Some Types of people’s bottlenecks are as follows:

Lack of Flexibility:
McDonald’s lack of flexibility to adapt to modern times is a bottleneck.
The top-level management do not want to innovate new ways of attracting
customers and hence this a people’s bottleneck at the top level of
management. For example, customers are moving away from McDonald and
towards many other brands such as chipotle and subway cause these brands
are now offering the customers the ability to alter or customise their meals according to how they want it, which you
do not get at McDonald’s.

Slow, Inaccurate Service:

McDonald’s have dropped their standard in the past few years when it comes to serving the customers. The
service many a times has been slow, whether that be to inadequate number of staff or too many orders at one
time, it’s proving to be a big bottleneck for them. McDonald’s (At Miramar or Porvorim) take too long to
serve people’s orders, and if the order hasn’t taken an eternity to come to your table it’s wrong. This
bottleneck is driving people away from McDonald’s and towards their rivals.
Eliminating Bottlenecks:
Resource Management:
Resource management does not only mean managing resources but also means managing the employees or
personnel in the organisation.
McDonald’s need to manage their employees to overcome the people’s bottleneck. They need to see that
adequate people are present at every station, be it ordering, making of the food or orders or serving. If there
are less staff or over staff it causes confusion as employees begin to get in other employees’ way and that’s
why McDonald’s should see that there is adequate resource management when it comes to employees.

PROCESS BOTTLENECKS

Bottlenecks caused due to machinery

Efficient manufacturing requires every process to be working as expected. Breakdown of equipment can be
a significant cause of bottlenecks in production processes. If poorly
maintained machines are performing poorly or even malfunctioning,
there is going to be an underlying issue that needs resolving.
Often, we find out that at McDonald's the ice cream machine or the
softy machine is under repair or not working which delays the order
process as the number of people ordering for a softy or soft serve is 1 out
of 5 so the cancellation of the order or. Also, during heavy rush if any of
their deep fryer or soda machine stops working or malfunctioning
then this can become a bottleneck in the process of filling up the orders.
To elaborate we will take up the example of McDonald's French fries-
among 4 out of 5 customers order for French fries. They usually use 3
fryers to fry their fries, each fryer fills up 4 orders for large fries and requires 3 minutes for the same. During
rush hours even if their only one fryer is malfunctioning or not working then this can possibly create a huge
load and result in a lag in filling up the orders for fries.

Bottlenecks caused due to raw materials

Unfortunately, with food and beverage production, raw ingredients
can be unpredictable, causing them to perish before expiry, often resulting
in shortages. Manufacturers can also end up with excess inventory that
expires before sale when inaccurate sales forecasting is sent to the
shopfloor. Almost all the raw materials for e.g., burger patties,
French fries, nuggets, etc. used by McDonald's at stores are frozen. If there is a power breakdown and there
is no substitute then the refrigerators would fail to keep the frozen food fresh and since it is a perishable
good it will get spoiled much faster resulting in a shortage or raw material. Whereas for non-frozen foods
like burger buns, muffins, coffee, etc. The goods have a chance to get spoiled even before expiry date or if
kept under unfavourable conditions. The spoiled raw material can cause shortages and become a bottleneck
in the further process.

Solutions:
Taking care of the machinery
● If the order filling process requires more of the machinery input, then care must be taken that the
machines are well maintained and repair is done in time.
● Preventative and predictive maintenance will be the most significant help to keep equipment running.
Having well-trained people to manage this is the most critical part of the process.
● The company should list down all the issues and determine which of these issues are causing the
most significant losses or causing unacceptable
bottlenecks and these issues will be given the highest
priority.

Taking care of the raw material

● Ensure that your refrigeration levels are always
correct. Install sensors that trigger alerts when levels
drop to an unstable level.
● Check expiration dates and if they are nearing the
end of life.
● Raw materials loss due to damage and spoilage is inevitable and will happen. But if you monitor
your product damage by collecting and analysing the data to determine the most frequent cause of
damage then you can put measures in place to manage the issue.
THANK YOU