Question

McDonald’s When a customer drives up to the speaker box at some McDonald’s drive-throughs, their order is placed with an employee located in a distant call center. The order, along with a photograph taken to the match the customer with the order, is then instantly displayed on a video screen in the food preparation area of the restaurant where the order is placed. Brainerd, Michigan – Ellie Feld pulled into the drive-through lane at McDonald’s the other day, craving a double cheeseburger. As she leaned out of the window of her Chevy Blazer to place her order through a speaker box, Feld was greeted by the friendly voice of an order taker she thought was working inside. Not even close. Four states away in a Colorado Springs, CO call center, “Linda” recorded Feld’s order and flashed it onto a computer screen inside the kitchen of the Brainerd McDonald’s. Less than 2 minutes later, Feld drove away, a smile on her face and a burger in hand. In these McDonald’s test sites, the drive-through turnaround time improved by 20 seconds and orders contained fewer mistakes. “In most McDonald’s you’ve got someone to take the order, make the change, and go get the food – you’ve got somebody doing three things,” said Glenn Cook, owner of Brainerd McDonald’s. “Here, someone is sitting at the call center and they have nothing else to do. They are not multi-tasking.”

Question-1 (40 pts) What aspects of McDonald’s production process are tradable?

Answer 1

What aspects of McDonald’s production process are tradable?

Customers form a significant part of McDonald’s production process. Customer insights, preferences, suggestions, and recommendations are taken seriously. For example, customers are allowed to make modifications to the standard burgers sold at McDonald’s outlets. They can request to have more cheese or lettuce. Thus, the output matches the specific needs of every customer. To increase efficiency, employees have been trained on how to quickly respond to customized orders. They can quickly make the modifications and have the product ready in a matter of seconds. This aspect of McDonald’s production process is tradable in that it increases customer satisfaction. Customers are allowed to participate in product development, and they create products that meet their demands. Customers are also involved in the development, testing, and implementation of operational systems. Customer service, specifically, is a core function at most of McDonald's outlets. A lot of time is taken to streamline operations at customer service, and the input of customers is valued.

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