McDonalds Case Study

Introduction

For a large organization like McDonald's, project management affects each and every other department and function of the organization. It is essential for the smooth functioning of all other departments and functions that every project in the organization is completed in a timely manner and as per desired scope.

For example, a project such as implementation of CRM software can significantly affect marketing and sales division of McDonald's. It is very essential for the functioning of marketing and sales department that CRM implementation project gets implemented on time. Similarly, implementation of a payroll system or upgrading of an existing one can affect the functioning of the HR department.

Therefore, we see that individual projects in an organization, especially for a larger one like McDonald's that has global operations, is extremely important for smooth functioning and efficiency of various individual departments and functions. It is essential that an effective project management practice takes place throughout the organization to ensure that various departments of McDonald's function smoothly and without any interruption.

Let us take a simple example of the procurement and purchase function of McDonald. McDonald's purchase division has to daily procure fresh raw materials for preparing various items on the menu. If the process is hampered for even few hours, McDonald's will not be able to cater to its various restaurants. To ensure this smooth functioning, even minor upgradation of existing systems via special projects become very important for the functioning of the entire organization. Therefore, effective project management is necessary to ensure that individual projects get completed on time and within scope/ budget.

Limitations of implementing PERT:

It emphasizes only on time and not on cost.

Time estimates sometimes act as a major limitation to the implementation of project.

For control of project, PERT requires frequent analysis of the project. It becomes an expensive and time consuming activity.

There may be errors in time estimation.

It does not suit routine planning of recurring events.

Source: http://books.google.com/books?id=REJjANEnzVYC&pg=PA129&lpg=PA129&dq=limitations+implementation+of+pert&source=web&ots=dpVyriDuCV&sig=Brr1bRLDA-rxVFg2MWxl1vQTkuw

Limitations of CRM:

1) Sales people often do not buy into CRM for several reasons. They will tell you that you're paying them to sell, not to do administrative work. Sales people do not like sitting down at the end of day to record their activity. Many will resist and ask, "Do you want me in front of customers or

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