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2. Analyse the implementation of the four Ds by the McDonald's restaurants? Assessment 2: Data Analysis Case Study Instructions Please refer to the given case study and answer the four questions given at the end. You are encouraged to refer to external sources and references to back up your arguments. McDonald's Corporation Case synopsis Operations Management Overview of McDonald's Founded in the 1940s, McDonald's is the best-known fast-food brand in the world with over 36,000 restaurants in 100 countries. McDonald's serves approximately 70 million customers a day. The company has franchised majority of its restaurants, and this serves as one of their main revenue sources. Other revenue sources include royalties and rent collection (Vignali 2001). Additional revenue comes from the sales at the restaurants directly run by the company. The company offers a wide range of foods such as French fries, cheeseburgers, chicken, milkshakes as well as a variety of deserts. The food retail giant has continually recorded high sales and profits such as the record sale of 100 billion hamburgers in 1993. According to Gilbert and Veloutsou (2006), one of the reasons behind the company's success is their policy of introducing new items in their menu to attract new customers. McDonald's has come to epitomise the "fast-food' industry. Central to its early success was the Speedee Service System' - an operations process that prioritised a standardised process that prescribed consistently high quality, exact preparation methods, specially designed equipment and strict product specifications. In particular, operating procedures were specified in minute detail with prescribed specific cooking instructions and operating procedures, defined to ensure a required customer experience. With the increasing number of recently established 'fast food' brands in the market competing in various ways, has forced McDonald's to become more innovative when delivering its quick service. Quality operation (management) at McDonalds has been considered as one of the main factors which has catapulted the company to the top of the food retail industry. The organisation has digitised its information systems as well as implementing it with an objective of facilitating revolutionising how customers pick up their food. McDonalds prioritises the improvement and maintenance of the provision of high-quality products and services. Their business model's focal point is service based, and they have continually improved their customer services to the extent that the current waiting time for customers has been significantly reduced. Thus, resulting in the process of pick-up orders at any McDonald's outlet being fast and efficient. Inventory Appraisal In the traditional operation management, inventories of finished products and raw materials are held as a reserve in case needed items run out of stock. However, in the recent years, management has realised such large inventories are expensive. As a result, majority of organisations have changed their methodology in inventory and production management (Patton et al., 2011). McDonald's has also implemented strategies in the control of flow of food processing in a multistage process of production. This inventory and production management approach is referred to as Just-In-Time Management (JIT), in which goods and raw materials are acquired when they are to be used in a certain production stage. This type of production and inventory has brought significant savings to the cost of production due to decreased inventory levels. The key aspect of JIT is its use of the "pull" strategy in the control of production (Patton et al., 2011). The JIT system at McDonald's has some essential aspects which includes the following: 1. It reduces inventory in the supply chains. This system of inventory management gains substantial efficacies through numerous deliveries of minimal quantities to cater for the instant demands in the food production chain. II. It applies a "pull" system which is referred to as Kanban in the control of production and raw materials. III. It also involves the commitment of employees regarding their involvement and participation. Since its adoption of the JIT system, McDonald's has managed to significantly reduce the cost of production. The following important characteristics of the JIT approach are behind these cost savings: I. Uniform and smooth production flow The pull method of stage coordination during production