Jit in mc donald's

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How JIT implemented in Mcdonald's

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Jit in mc donald's

  1. 1. A Presentation onSubmitted to :-K.K. Parekh Institute of Management Studies(Amreli)JUST IN TIME (JIT)Prepared by :-Mehul Rasadiya
  2. 2. CONTENTS What is JIT? Objective Concept Benefits Implementation in McDonald’s
  3. 3. WHAT IS JIT ????? A corporate system designed to produce outputwithin the minimum lead time and at the lowesttotal cost by continuously identifying andeliminating all forms of corporate waste andvariance. A corporate strategy Focus of JIT:• variance & waste
  4. 4. OBJECTIVE OF JIT Produce only the products the customer wants. Produce products only at the rate that the customerwants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customerwants. Produce with no waste of labor, material or equipment --every movement must have a purpose so that there iszero idle inventory.
  5. 5. CONCEPT Inventory Reduction Quality Improvement Lead time Reduction Continuous Improvement Strategic Gain
  6. 6. BENEFITS Low Inventory levels Shorter production cycle time Improved Product Quality Better labor utilization
  7. 7. IN MCDONALD’S
  8. 8. IN MCDONALD’S High holding costs arethe nature of the fast foodindustries Wastage Time
  9. 9. IN MCDONALD’S JIT system whereinMcDonalds doesnt begin tocook its orders until a customerhas placed a specific order.
  10. 10. IMPLEMENTATION OF JIT sophisticated burger-making technology(including a record-breaking bun toaster) McDonalds is able to make food fastenough to wait until its been ordered. Reduction in wastage
  11. 11. IMPLEMENTING IN JITPRODUCTION SYSTEMSCriteria for success1. Service2. Quality3. People4. Food preparation5. Profitability.
  12. 12. SUPPLY CHAIN INTEGRATION
  13. 13. BENEFITSImproved Quality – The burgers are prepared freshlyand hence the quality has improved.Customer service – As the burger is made only afterthe order is placed, making special orders is not anissue.Cost Reduction – Due to significant reduction inwastage as uncooked material has a higher shelf life.Reduction in waiting – Customer’s waiting time reduce11 min. to just 1 and half min.
  14. 14. JIT DEMAND-PULL LOGICCustomersSubSubFabFabFabFabVendorVendorVendorVendorFinalAssemblyHere the customer startsthe process, pulling aninventory item fromFinal Assembly…Then sub-assembly work ispulled forward bythat demand…The process continuesthroughout the entireproduction process andsupply chain

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