The document outlines the Just-In-Time (JIT) system implemented by McDonald's, which focuses on minimizing lead times and eliminating waste to enhance production efficiency. JIT allows McDonald's to prepare food only upon order, leading to improved quality, reduced wastage, and shorter customer wait times. Key benefits include lower inventory levels, enhanced product quality, and better labor utilization.

1. Just in Time (JIT)
in Mc Donalds
Prepared by
M8A Students
TKMCE, Kollam

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. 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. 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. 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. IMPLEMENTATION OF JIT
Criteria for success
● Service
● Quality
● People
● Food preparation
● Profitability

7. SUPPLY CHAIN INTEGRATION

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. Thank You