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Just-in-Time in McDonalds

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Lavesh sethia just in time
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Just-in-Time in McDonalds

  1. 1. Just in Time (JIT) in Mc Donalds Prepared by M8A Students TKMCE, Kollam
  2. 2. WHAT IS JIT ? ❖ A corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance. ❖ A corporate strategy. ❖ Focus of JIT : variance & waste. Benefits ◎ Low Inventory levels ◎ Shorter production cycle time ◎ Improved Product Quality ◎ Better labor utilization
  3. 3. OBJECTIVE OF JIT ◎ Produce only the products the customer wants. ◎ Produce products only at the rate that the customer wants them. ◎ Produce with perfect quality ◎ Produce with minimum lead time. ◎ Produce products with only those features the customer wants. ◎ Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory.
  4. 4. IN MCDONALD’S ✓ World’s leading foodservice retailer. ✓ World's second largest private employer (BBC, 2012). ✓ Founded in 1940 by Richard and Maurice Mc Donald. ✓ Around 36,615 restaurants in over 119 countries. ✓ Serving 68 million customers daily. Why JIT..? ◉ High holding costs are the nature of the fast food industries. ◉ Wastage. ◉ Time.
  5. 5. IMPLEMENTATION OF JIT ◎ JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order. ◎ Sophisticated burger-making technology (including a record-breaking bun toaster). ◎ McDonald's is able to make food fast enough to wait until it's been ordered. ◎ Reduction in wastage.
  6. 6. IMPLEMENTATION OF JIT Criteria for success ● Service ● Quality ● People ● Food preparation ● Profitability
  7. 7. SUPPLY CHAIN INTEGRATION
  8. 8. THE RESULT..? ◎ Improved Quality – The burgers are prepared freshly and hence the quality has improved. ◎ Customer service – As the burger is made only after the order is placed, making special orders is not an issue. ◎ Cost Reduction – Due to significant reduction in wastage as uncooked material has a higher shelf life. ◎ Reduction in waiting – Customer’s waiting time reduce 11 min. to just 1 and half min.
  9. 9. Thank You

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