McD vs. BK FINAL - Operations Management MBA 513 McDonalds...

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Unformatted text preview: Operations Management MBA 513 McDonalds versus Burger King Case Study Team 3: Rounan Gao, Holly Finnan, Melanie Hoekstra, Paolo Korre, Miguel Martinez, Jeff Mai, Ting Ting Wang September 8, 2010 PART A: McDonalds versus Burger King of Hillybourne While McDonalds and Burger King have fought over a piece of the same pie (or hamburger), each company has a unique strategy with which theyve approached the market. McDonalds aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu a goal reflected in their long-time slogan, Have it your way. This difference results in distinct objectives for each restaurant that resonate throughout their respective operations structure, affecting the cooking process, approach to customization, equipment and technology, staffing, order processing and pricing. Made-to-Stock Batches versus a Hybrid Process The cases show that each burger joint relies on a batch process and a made-to-stock approach to food inventory, but to different degrees. McDonalds functions as a pure batch process, while Burger King uses a hybridized system: part made-to-stock (using a batch process) and part made-to-order (using a job shop process). McDonalds batch sizes (12 burgers, 6 Big Macs, 10 Quarter Pounders) are reflected in the equipment: the increments of the grill, the size of the trays, and the speed and size of the bun toaster. By producing a regular number of identical sandwiches, this batch system helps ensure standard and predictable cycle times, consistent quality, greater predictability (less loss to error) and limits the amount of overlap activity; all of which align with McDonalds objectives. To make a custom burger, the McDonalds process ensures a level of freshness (relative to industry standards), but creates a delay for the customer. A grill sandwich is not processed until the next batch of that particular meat is cooked, and delivered to the customer as quickly as possible, with no opportunity to wait in a warming box. While this leads to fresher sandwiches, it also presents several logistical setbacks. Lead times for grill sandwiches are longer, which means that customers must wait longer, inconsistent with McDonalds process objectives. This is particularly problematic with drive through customers, who must pull up to a parking space to wait, and may cause bottlenecks. Customers inside are asked to step aside and wait, which can be unnerving for a customer on a short lunch break. Notably, though, the cycle time during rush periods is increased, so the customer will not have to wait as long as during slow times. The grill sandwiches also present problems for the cashiers/servers who must deviate from their standard operation to accommodate the waiting customer. This is either by stepping aside standard operation to accommodate the waiting customer....
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This note was uploaded on 11/07/2011 for the course ECON 101 taught by Professor Johnson during the Spring '11 term at Sciences Po.

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McD vs. BK FINAL - Operations Management MBA 513 McDonalds...

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