Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

NDB504 Introduction to Managing Operations

Assignment 1
 

Facilitator: Indu Peiris

Student name: Q Isaacs

Submission Date: 11 August 2021

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

Question 1: Objectives of operations

(a) Identify and explain what operational management measures EasyJet follows to operate at a
lower cost than a conventional full-service airline.

Highlighted below are a few ways in which EasyJet are able to have an operation that is able to run
at lower cost:

Quality - EasyJet uses secondary airports and fast turnaround times allowing EasyJet to save on
operating costs, while still offering high standards of service in terms of the reliability of departure
and arrival times

Speed – there is no seat allocation, so this means faster boarding. Passengers are keen to get to
board to find a preferred seat.

Dependability – EasyJet’s Airport-to-airport direct services avoids the use of large airports which are
expensive and congested hub airports. Smaller regional airports for example have lower traffic
control and landing fees and are generally less at risk of traffic interruptions.

Customisation – Only Economy class is available at EasyJet. This maximises the number of seats on
the plane and minimises cabin crew which in the end requires less training and staff specialisation.

Cost - low-cost tickets offered by EasyJet have attracted demand from people who would otherwise
not fly. This aided through the availability of online sales as a cost- saving measure.

(b) How have the measures to reduce costs affected the efficiency and effectiveness of the
service?

When assessing the Efficiency of EasyJet service, we know that they have created a product offering
using the resources they have made available incredibly wisely and with great cost-efficiency. Using
less staff than a major airline carrier and smaller planes they can do more with less.

The Effectiveness of EasyJet is displayed through how they have customized their service so that it
delivers on their objective of being “the leading low-cost airline in Europe while providing
exceptional value to its passengers”. By having smaller planes in their fleet, newer planes which are
more efficient, using 1 type of aircraft they can operate and execute their goal making them way
more effective than their competitors.

(c) Explain whether or not EasyJet and other successful budget airlines operate a more efficient
and effective service than conventional full-service airlines.

I have identified that the expenses are lowered greatly by EasyJet using key factors such as the use
of the Internet to reduce distribution costs, effort to maximize the utilization of the substantial
assets like aircraft, not offering in-flight services such as meals. A conventional full-service airliner
requires larger airports, airplanes, and support staff in order to meet its objective. EasyJet employ
less staff which means less management layers. Staff salaries are less as the airline will largely
employ less experienced staff. The use of online bookings and check-in services for convenience.

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

Question 2: Performance objectives

(a) Identify and explain how the performance objectives of companies such as McDonald’s
have changed from those that they started out with to those that they have today. Include
discussion of quality, speed, dependability, flexibility and cost in your answer.

When Ray Kroc purchased McDonalds in 1961 he believed that Quality, Service, Cleanliness and
Value was what would set McDonalds apart from any competitor. He believed in these values so
much so that he founded a training school in 1961, Hamburger University.

These values remain true today. Today these values are used to modify the performance objectives
at McDonalds from when it was first established.

- Quality – McDonalds want to satisfy its customers by providing error-free services and products
which meet the demands of their customer. Food that matches the healthier choices of todays
society.

- Speed - McDonalds still want to do things fast, time is minimised through online channels
available such as online ordering such as uber eats. Maintaining consistency is the priority of
McDonalds’s. Just as if you visited any country in the world, you would get the same McDonalds
experience, they need to increase the availability of the services and products which will provide
a speed advantage.

- Dependability - With the introduction of healthier meal options McDonalds will still need to
maintain its dependability. For example still delivering on the standards promised even with the
introduction of changing menus.

- Flexibility – Just as McDonalds needed to modify their menu in India to cater for vegan
customers, they need to continue to be flexible. Change they way they do things to meet the
customer’s needs. They have always had a localised taste based on the location wherever in the
world they find themselves based. Having the ability to vary or adapt the operation's activities to
cope with customer demands and requests dictated by society is huge.

- Cost – With so many other healthier options, McDonalds are being challenged to create
innovative menus but expected to do offer them at a cheaper rate.

(b) Identify and explain three challenges for operations managers in meeting the changed
performance objectives for a fast-food company such McDonald’s.

- Ethical Conduct – From the research completed, Ethics is defined as a subset of business ethics
that is meant to ensure that production functions or activities are not damaging to people or
society. McDonalds faces a challenge with their ethical conduct after dozens of allegations came
out in gained the interest of lawmakers. There is also a lot of work still to be done to stop sexual
harassment from occurring at McDonald's restaurants. Research shows that Unethical behaviour
has contributed to the demise of various companies around the globe - which is why combating
them is so important. By being ethical across all functions of it’s business, McDonalds will ensure
that operations internationally runs smoothly.

- Globalization – studies define Globalization as the process by which businesses interact with
people, companies, and governments on an international scale. The world we live in is more

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

connected than ever before. Trade barriers have been reduced, advancements in
information/transportation technology, and more. With information a click away McDonalds
faces competition on a global scale. Challenging for every country they are located in. Should
McDonalds want to maintain their competitive advantage, they must keep up with the trends
and software technology available to help keep them relevant globally.

- Rapid product development - Innovation is a core value for McDonalds. An example of this is
their drive-through innovation. In order to serve military members who were not permitted to
get out of their cars off-post the first McDonald's drive-through was created in 1975 in Sierra
Vista, Arizona, near Fort Huachuca, a military installation. McDonalds need to increase their
capacity to spot new opportunities and move rapidly to exploit them. This can be achieved
through and the use of digital technologies such as online ordering faster delivery methods and
using technology for tailored dining experience.

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

Question 4: Main activities of operations management

Taco Bell announced it was going to start operations in New Zealand in December 2018.

As part of the planning for the new outlets, below I have identified and explained some of the key
decisions that will need to be made for each of the five main activities undertaken by operations
management:

(a) Managing capacity – This forms part of the Planning activity the Operations managers at Taco
Bell would need to implement. They will need to forecast, plan, and adjust constantly to
optimize processes based on conditions.

(b) Setting standards – through Efficiency. It is up to the Managers to troubleshoot bottlenecks,

inadequate resources, and downtimes to create optimal efficiency. Setting optimal standards
can also be achieved through continuous Improvement. For Taco Bell to remain competitive,
they need to have processes in place to consistently seek better ways of doing things.

(c) Assembling materials and managing inventory – this can be done through Cost Control.
Production may form part of Taco Bells major cost structure; they need to manage it wisely.

(d) Scheduling when to do what – the process of how Taco Bell’s produces its services requires
having strong, repeatable processes.

(e) Controlling operations - good quality control is necessary to maintain customer satisfaction and
Taco Bell’s reputation. Taco Bell will suffer without it.

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

References

How Budget Airlines Work

Viewed 09 August 2021
(June 1, 2016.)YouTube. <https://www.youtube.com/watch?v=069y1MpOkQY>

The Learning Organization: Is Your Company Ready for the Future? (Mar 23, 2017). YouTube.
Viewed 09 August 2021
<https://www.youtube.com/watch?v=40meQNZl3KU>

What we do. (n.d.). easyJet plc.

Viewed 10 August 2021
<https://corporate.easyjet.com/about/what-we-do>

Craven, S., & The Arizona Republic. (2016, August 29).

You won't believe where McDonald's opened its first drive-thru. The Republic | azcentral.com.
Viewed 10 August 2021
<https://www.azcentral.com/story/travel/arizona/2016/08/29/mcdonalds-first-drive-through-sierra-
vista-arizona/88009974/>

Macca's story | McDonald's New Zealand. (n.d.). McDonald's New Zealand |.

Viewed 10 August 2021
<https://mcdonalds.co.nz/about-maccas/maccas-story>

Fast food in the media: The rise of the health-conscious consumer. (2020, May 8). Commetric.
Viewed 10 August 2021
<https://commetric.com/2019/01/04/fast-food-in-the-media-the-rise-of-the-health-conscious-
consumer/>

American fast food as we know it is dying -- and healthier chains may be replacing it. (2017,
November 15). Business Insider Australia.
Viewed 10 August 2021
<https://www.businessinsider.com.au/future-of-fast-food-healthy-affordable-2017-11>

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 Name: Q ISAACS Student number: 5006667 Course and Assignment: NDB504/AS1

4 challenges McDonald's new CEO must overcome. (2019, November 12). Restaurant Dive.
Viewed 10 August 2021
<https://www.restaurantdive.com/news/4-challenges-mcdonalds-new-ceo-must-overcome/567117/>

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