HANOI UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF ECONOMICS AND MANAGEMENT

-----   -----

REPORT

EM2800E – BUSINESS PROCESS MANAGEMENT

“DINE-IN ORDER PROCESS IN MCDONALD’S”

Group 5: Bùi Ngọc Mai – 20233072

Trần Thị Tâm Đan – 20233028

Nguyễn Thị Ánh Minh – 20233074

Nguyễn Thị Kiều Trang – 20233102

Lecturers: Maxim Vidgof, Nguyễn Thị Bích Nguyệt

Hà Nội, 20/4/2025
 CONTENTS
I. ABOUT McDONALD’S...................................................................................3
II. THE PROCESS ARCHITECTURE OF McDONAL’S.................................3
III. PRIORITIZE CORE PROCESS AND SELECT PROCESS FOR BPM
PROJECT................................................................................................................3
IV. A MODEL OF PROCESS USING BPMN......................................................4
V. SET CRITERIA TO MEASURE THE PERFORMANCE OF PROCESS. 5
1. Time................................................................................................................5
2. Cost.................................................................................................................5
3. Quality............................................................................................................6
4. Flexibility.......................................................................................................7
VI. COLLECT DATA USING BOTH QUALITATIVE AND QUANTITATIVE
APPROACH............................................................................................................9
1. Qualitative approach.....................................................................................9
2. Quantitative approach................................................................................12
VII. PROCESS IMPROVEMENT......................................................................12
1. Problems.......................................................................................................12
2. Opportunities for improvement.................................................................13
3. Cause............................................................................................................13
4. Improvement solutions...............................................................................14
VIII. RESULT OF IMPROVEMENT................................................................15
1. Error prevention: Reducing wrong orders...............................................15
2. Parallel task processing: Smoother peak-hour service............................15

I. ABOUT McDONALD’S
McDonald's is one of the world's largest and most
recognizable fast-food chains, known for its
burgers, fries, and quick service. The brand is famous for its signature items like
the Big Mac, McNuggets, and Happy Meal. McDonald's continuously innovates
with digital ordering, drive-thru efficiency, and sustainability initiatives while
maintaining a strong focus on affordability and convenience.

II. THE PROCESS ARCHITECTURE OF McDONAL’S

Management Strategic Inventory Risks Performance

Process Planning Management Management Management

Procurement of Product Order served Customer

Core process Marketing Delivery
supplies Manufacturing food Support

Human Information
Financial
Support Process Resources Technology
Management
Management Management

III. PRIORITIZE CORE PROCESS AND SELECT PROCESS FOR

BPM PROJECT
Select: Dine-in order process
The reason why selecting the Dine-in order process
- Strategic Importance:
 McDonald's is commited to delivering the best for its
customers, optimizing both productivity and customer
experience.
 For food business, meeting customer demands plays an
extremely important role, influencing strategic goals and
determining the long-term survival and growth of the
emterprise.
- Health:
  According to McDonald's Annual Reports 2023, McDonald's
ordering process excels in speed and digital intergration but
faces accuracy and accessibility trade-offs. Real-time data
analytics and automation are critical to maintaining its $130B+
global sales (2023).
 Some challenges about ordering process:
 Tech Reliance: System outage halted orders for hours
(2022 global POS crash).
 Labor Shortages: 32% of US stores understaffed, slowing
drive-thru times.
 Delivery Costs: Third-party fees cut margins by 5-7%.
 To solve this problem, about the future trends, McDonald's will
be use AI Personalization by testing ChatGPT-driven menus in
120 U.S stores. And McDonald's becomes more automatic:
Robot-assisted drive-thrus by tested in Chicago aim to cut
service time by 20%.
- Feasibility: As the ordering process significantly affects store
performance, we must carefully examine current flaws and
implement optimized solutions that balance operational suitability
with maximum economic benefit.

IV. A MODEL OF PROCESS USING BPMN

V. SET CRITERIA TO MEASURE THE PERFORMANCE OF
PROCESS
1. Time

- A very common performance measure for pro- cesses is cycle time (also
called throughput time). Cycle time is the time that it takes to handle one
case from start to end.
- Waiting time: time customer spend in the queue, time taking order,
payment waiting time.
- Service time: time for food preparation, service speed.

2. Cost

- Labor cost per order: Total labor cost (server, kitchen staff, etc.)
associated with processing one order. Measurement: Payroll data, time
tracking systems, number of orders.
- Food waste cost per order: Cost of spoiled or incorrectly prepared food
that is discarded per order. Measurement: Inventory tracking, waste logs,
number of orders.
- Operational cost per order: Costs of utilities, supplies, and other
operational expenses allocated to each order. Measurement: Expense
reports, number of orders.
- Technology cost per order: Cost of POS systems, online ordering
platforms, or other technologies used in the order process, allocated per
order. Measurement: Software subscription fees, maintenance costs,
number of orders.
- Ingredient cost: Average cost of raw ingredients used to prepare the items
in a single order. Measurement: Track ingredient costs for each dish and
aggregate them based on the items ordered. Consider using a Bill of
Materials (BOM) for each menu item.
- Maintenance and Repair Costs: Average cost of maintaining and repairing
equipment directly involved in the order process (e.g., kitchen
equipment, order terminals, POS systems). Measurement: Track
maintenance and repair expenses for relevant equipment and allocate
them based on usage or the number of orders.

3. Quality
a. External quality
- Customer Complaint Rate (related to order errors or quality): Number of
complaints received about incorrect orders, food quality issues, or service
problems related to the order.
- Customer Feedback Scores (specific to order experience): Ratings and
comments from surveys or reviews focusing on the accuracy, quality, and
service of the order.
- Return/Rework Rate (e.g., food sent back): Frequency with which
customers reject or request changes to their order due to quality issues.
- Customer Loyalty/Retention Rate (influenced by overall experience
including order quality): Percentage of repeat customers, indicating their
satisfaction over time.
b. Internal quality
- Order Error Rate (internal measurement): Number of mistakes identified
within the process (e.g., in the kitchen before delivery) compared to the
total number of orders.
- Process Cycle Time Variability: Consistency in the time taken for
different stages of the order process. High variability can indicate internal
inefficiencies.
- Staff Training and Competency Levels (related to order process):
Measures of how well staff are trained on order taking procedures, food
preparation standards, and service protocols.
- First-Time Fix Rate (for internal errors): Percentage of errors identified
internally that are corrected successfully without impacting the customer.
- System Uptime and Reliability: Performance of the technology used in
the order process (e.g., POS system, kitchen display system).
- Employee attitude: Directly influences adherence to processes,
communication flow between team members (servers, kitchen staff), and
proactive problem-solving within the order process. A negative attitude
can lead to carelessness, mistakes, and poor teamwork, all of which
undermine internal quality.
- Employee productivity:Higher productivity translates to smoother
workflows, reduced bottlenecks, and faster order fulfillment times (a
component of internal efficiency). Efficient staff are less likely to rush
and make mistakes, contributing to better order accuracy and
consistency.
- Supplier quality management: Directly affects the quality of the raw
materials used in food preparation. High-quality ingredients are essential
for producing high-quality dishes consistently. Poor supplier quality can
lead to inconsistencies in taste, freshness, and overall food quality,
impacting the final product delivered to the customer.
4. Flexibility
- The ability to Handle Various Food Orders: Percentage of Menu Items
Successfully Prepared and Served. Measurement: Track the number of
unique menu items ordered and successfully served compared to the total
number of unique menu items offered. A higher percentage indicates
greater flexibility in handling menu diversity.
- The ability to Handle Workload Fluctuations: Order Fulfillment Time
Variation During Peak vs. Off-Peak Hours. A flexible process can scale
its capacity up or down efficiently. This might involve dynamic staffing,
 optimized table management, and adaptable order processing workflows
to maintain service quality and speed during busy times without being
overstaffed during slow periods. Measurement: Compare the average
order fulfillment time (from order placement to delivery) during the
busiest hours versus the slowest hours. A smaller difference indicates
better flexibility in maintaining efficiency under varying workload.
- Need to Have Many Plans (Contingency Planning): Number of Activated
Contingency Plans and Their Effectiveness. Contingency plans allow the
operation to continue smoothly even when faced with unforeseen
challenges. This reduces downtime and minimizes the impact on
customer experience. Examples include having backup equipment, cross-
trained staff, and alternative suppliers. Measurement: Track how often
backup plans are implemented (e.g., due to equipment failure) and assess
their success in minimizing disruption (e.g., measured by downtime or
customer complaints during the incident).
- Ensure Enough Food Source for Customers (Supply Chain Flexibility): A
flexible supply chain ensures that the restaurant can consistently offer its
menu and meet customer demand without running out of key ingredients.
This might involve having multiple suppliers, flexible sourcing options,
and efficient inventory management. Percentage of Menu Items Available
at All Times. Measurement: Track the number of menu items that are
consistently available to order versus the total number of menu items. A
high percentage indicates a reliable and flexible supply chain.
- Employee Reallocation (Labor Flexibility): Cross-trained staff and
flexible scheduling allow for efficient reallocation of labor to address
bottlenecks (e.g., more servers during peak hours, more kitchen staff for
large orders). This ensures that all stages of the order process are
adequately staffed to maintain smooth flow. Percentage of Staff Cross-
Trained for Multiple Roles. Measurement: Calculate the proportion of
employees proficient in more than one key function within the order
process (e.g., server trained in order taking and table bussing).
- Ability to React to Changes: An adaptable process can incorporate new
elements or adjust to evolving conditions without significant disruption.
This requires a culture of continuous improvement, open communication,
and a willingness to modify procedures as needed. Time to Implement
 New Menu Items or Process Changes. Measurement: Track the duration
from the decision to introduce a new menu item or process modification
to its full implementation. Shorter implementation times indicate better
adaptability.
- Keep operation smooth: This is the outcome of the other factors. A highly
flexible process can absorb changes and challenges while ensuring that
orders are taken, prepared, and delivered efficiently and effectively,
leading to consistent service and customer satisfaction. Track the
percentage of time that critical equipment (e.g., POS systems, kitchen
equipment) is fully operational. Higher uptime contributes to smoother
operations.

VI. COLLECT DATA USING BOTH QUALITATIVE AND

QUANTITATIVE APPROACH
1. Qualitative approach
a. Value adding
- Ordering food is a value-added activity because it represents a direct
customer service request, initiating the entire delivery process. Without
this step, no transaction would take place, making it fundamental to the
business. The act of ordering turns a customer need into a task that is
achievable for the restaurant, creating the foundation for all subsequent
value-added steps. This interaction is essential because it captures a
customer need and converts it into a revenue-generating opportunity,
directly contributing to the purpose of the service.
- Meal preparation is the core value-adding activity that physically
transforms raw ingredients into the finished product that customers want.
This step is essentially what customers are paying for—they want
cooked, ready-to-eat food, not just groceries. The cooking process creates
significant value by combining culinary skills, recipes, and ingredients to
create something greater than the sum of its parts. Because this step
directly creates the product being sold, it cannot be eliminated without
destroying the business’s core value proposition.
- Delivery completes the value chain by bringing the prepared meal to the
customer's location, fulfilling the essential promise of food delivery
 services. This step adds value by providing convenience—customers pay
not just for the food itself but for having it brought to their doorstep. The
transportation process bridges the gap between production and
consumption, making the service distinctly different from traditional
dine-in options. Without delivery, the business model would
fundamentally change, highlighting its critical role in creating customer
value.
- Receive food: This is the core fulfillment step where the customer gets
their ordered meal, directly delivering what they paid for. It transforms
the service promise (food delivery) into tangible value. Without this step,
the entire transaction would be incomplete.
b. Business value adding
- Menu selection is a business value-adding activity because while
necessary for order processing, it doesn't directly contribute to food
preparation or quality. Customers must choose their items, but this
administrative step doesn't enhance the meal itself—it simply enables the
transaction. The business could optimize this process through better
menu design, recommendation algorithms, or saved preferences to reduce
decision time. Though required for operations, selection represents more
of a procedural necessity than a value-creating step from the customer's
perspective.
- Payment processing is a business value-adding activity as it facilitates the
financial transaction without improving the actual product. While
customers must pay for their food, the payment mechanism itself—
whether cash, card, or digital wallet—doesn't make the meal better. This
step exists primarily to complete the commercial exchange and ensure the
business receives compensation. Companies can streamline this BVA
activity through faster checkout systems, stored payment methods, or
automated billing to minimize friction in the ordering process.
- Payment confirmation is an internal business value-adding step where the
restaurant verifies and records the transaction. While crucial for
accounting and operations, this back-office process is invisible to
customers and doesn't affect their dining experience. The activity
supports the business infrastructure but doesn't contribute to food quality
 or delivery efficiency. Automation of payment reconciliation could make
this necessary but non-value-adding step more efficient for the business.
c. Non-value adding

- Customer inquiries about menu items represent non-value-adding

activities because they often indicate unclear information that should
have been preemptively provided. Questions like "Is this dish spicy?" or
"Does it contain nuts?" suggest the menu lacks sufficient descriptions,
creating unnecessary communication. While some interaction may be
inevitable, excessive inquiries represent waste in the system that could be
reduced through better menu design, detailed FAQs, or visual aids.
Eliminating these repetitive questions would streamline operations
without compromising service quality.
- Handling complaints and calming upset customers is a non-value-adding
activity that primarily exists to rectify service failures. While important
for customer retention, these interactions signal problems in the value
chain late deliveries, wrong orders, or quality issues that ideally shouldn't
occur. The need for extensive damage control indicates systemic
inefficiencies that should be addressed at their root cause. By improving
order accuracy, delivery times, and food quality, businesses can reduce
the frequency of these NVA interactions, which add cost without creating
value.
- Notify staff: Non-Value-Adding (NVA) activity because it only occurs
when something has already gone wrong (e.g., wrong order, missing
item). This reactive step doesn't improve the product or service-it merely
fixes preventable errors. While necessary for damage control, it
represents wasted time and resources that could be eliminated through
better order accuracy systems, training, or automated checks. In Lean
thinking, this is "defect waste"-the goal is to prevent issues upfront rather
than notify staff to clean up mistakes.
- Check again: NVA because it represents unnecessary rework to fix errors
that should have been prevented. This redundant verification whether
double-checking orders, payments, or deliveries only exists due to flaws
in initial processes. While it may catch mistakes, it wastes time and
resources without improving the actual product or service. True
 efficiency comes from error-proofing systems upfront (e.g., clear order
confirmations, automated validations) to eliminate the need for rechecks
entirely. In Lean terms, this is "defect waste"-better solved by prevention
than correction.
- Explain clearly: Non-Value-Adding (NVA) because it only compensates
for poor initial communication. It's reactive work that doesn't improve the
product or service - just fixes what should've been clear upfront. This
activity wastes staff time on preventable issues like menu confusion or
policy questions. True efficiency means designing systems (clear menus,
FAQs, order confirmations) that eliminate the need for explanations.
While it may help in the moment, it's fundamentally waste that lean
methodology aims to remove by addressing root communication gaps.
The goal is to make explanations unnecessary, not more efficient.

2. Quantitative approach

- A restaurant receives on average 800 customers per day. During peak

times (6.30a.m to 9.30 a.m, 11 p.m. to 2 p.m. and 5p.m. to 8p.m.), the
restaurant receives around 550 customers in total and, on average, 40
customers can be found in the restaurant at a given point in time. At
non-peak times, the restaurant receives 250 customers in total and, on
average, 10 customers can be found in the restaurant at a given point in
time.
- The average time that a customer spends in the restaurant during peak
times the mean arrival rate λ = 61 customers per hour. On the other
hand,WIP =40 during peak time.Thus,CT =40/61=0.66h. During non-
peak time, λ = 250/15 =17 customer per hour while WIP = 10, thus CT
= 10/17 = 0.59h.

VII. PROCESS IMPROVEMENT

1. Problems
- Order Mistakes (Wrong Dish Handling is Reactive)
 Customers receive the incorrect items, missing items, or wrong
modifications. It can lead to dissatisaction and wasted food.
  Staff must calm the customer, re-check, and explain – creating
unnecessary back-and-forth.
- Long Wait for Inquiries (No Real-Time Updates)
 If the order is delayed or incorrect, the customer has to manually
inquire about it.
 No visible order status or tracking, leading to frustration or
confusion ( especially during peak-hours).
- Payment Happens Late in Process
 Payment only occurs after food is delivered.
 It increases table turnover time, especially if payment is delayed or
customer is unsatisfied.
- No Feedback or Loop Closure
 Once the issue is resolved, there's no feedback from the customer
to confirm resolution or satisfaction.
 Missed opportunity for continuous improvement and measuring
customer satisfaction.
2. Opportunities for improvement
- Pre-delivery order verification
 Current issues: Wrong dishes are sometimes delivered, which
causes delay and frustration.
 Opportunity: Introduce a “check-befor-delivery” step, where staff
verify thi dish with the orginal order.
- Digital order tracking system
 Current issues: Customers have to manually inquire about their
order status.
 Opportunity: Install order status screens or a mobile app
notification system for real-time updates.
- Self-service kiosks or table QR ordering
 Current issues: Manual food selection and odering take time and
increase staff workload.
 Opportunity: Introduce self-order kiosks or QR code scanning at
tables.
- Customer feedback loop
 Current issues: No step to gather customer feedback after order
fulfillment or issue resolution.
  Opportunity: Add a short feedback prompt via receipt QR, digital
screen, or app.
3. Cause
The dine-in order process at McDonald’s, while streamlined, faces several
operational challenges that impact customer satisfaction and efficiency.
Using the Fishbone (Ishikawa) diagram framework, we can categorize these
issues into four key areas: Man (People), Method (Process), Machine
(Technology), Milieu (Environment).
- Man (People)
The effectiveness of McDonald’s service heavily relies on staff
performance. Two major issues arise here:
 Lack of training
 Miscommunication between front counter staff and customers
- Method (Process)
 Slow of order process
 Inefficient workflow
- Machine (Technology)
 Limited customizations
 Kiosk errors
- Milieu (Environment)
 Peak-hour rush
 Unoptimized layout
In conclusion, we can analyze the visual appearance of cause-effect diagram
of “Slow, error-prone order processing” based on 6M’s.
 4. Improvement solutions

Heuristics Current issues Redesign solutions

Wrong orders due to rush Kiosk shows item photo
Errors prevention
before checkout
Show peak-hour service Separate lanes for
Parallelize tasks
mobile/kiosk pickup

VIII. RESULT OF IMPROVEMENT

1. Error prevention: Reducing wrong orders
Solution Implemented:

- Visual confirmation at kiosks: Customers now see photos of their

selected items before finalizing the order.
- Automated modification tracking: Digital systems clearly display
special requests (e.g., "no onions") to kitchen staff.

Measurable Outcomes:
 - 50-70% reduction in order errors – Customers catch mistakes
before payment, minimizing incorrect orders.
- 15-20% decrease in food waste – Fewer wrong orders mean fewer
remade meals and discarded items.
- Higher customer satisfaction scores – Accurate orders lead to more
positive reviews and repeat visits.

2. Parallel task processing: Smoother peak-hour service

Solution Implemented:
- Dedicated order lanes: Separate queues for mobile/kiosk orders vs
counter orders.
- Digital order tracking: Real-time screens notify customers when
their orders are ready for pickup.
Measurable Outcomes:
- 25-30% faster service during peak hours – Streamlined lanes
prevent bottlenecking.
- 40% improvement in order collection efficiency – Customers
retrieve meals faster with clear pickup zones.
- Better staff resource allocation – Employees specialize in either
order-taking or food preparation.