McDonald's is the world's leading fast food organization, founded in 1955. It has maintained its position through adopting lean practices like poka-yoke, one-piece flow, and kanban to reduce waste. McDonald's new "Made for You" kitchen system and mobile ordering experience the future concept improve process time and customer service. Constant innovation in its layout plans, from indoor seating to self-service kiosks, helps McDonald's adapt to changing customer demands.

1. MCDONALD’S
FAST FOOD
RESTAURANT
COMPANY
IM605-705
Presented by
Aung Myo Naing
TheinThan Hein
Ei Kay Khaing
Ngu Kay Khine

2. Introduction
■ World’s leading fast food service organization
■ Founded by Richard and Maurice McDonald
■ Ray Kroc founded McDonald’s System in 1955
■ Over 80% of McDonald's restaurants owned and
operated by independent franchisees
■ Faced by tough competition, it has maintained its
position by adopting the ‘lean’ focus

3. PokaYoke
■ Helps people and processes and avoid simple human
error in the workplace
■ McDonalds had a problem of food preparation
system
■ Using PokaYoke they have designed and
implemented just in time new kitchen system named
“Made for you”
■ For simple example, McDonald’s use the French fry
scoop to measure the amount and serving of
potatoes to get the exact amount of the orders

4. One Piece Flow
■ Focuses on completing the production of one piece from start to finish in process
inventory between operations
■ The kitchen employees prepare ingredients and wait for orders to cook it then the
frontline staff serve customers faster
■ Staffs in this situation are to focus on the demand and reduce minimizing waste
■ must understand what customer needs and wants to keep changing the variety
offered on a daily basis

5. One Piece Flow

6. Kaizen
eliminating waste (non-value added activities)
■ to measure the continuous improvement of production workers
■ To perform the overly hard work and eliminate the waste in workplace
Introducing quick system & the touch screen self-service
■ To decrease the waiting time in queues
■ To finish the order in short period of time
■ To enjoy by taking order themselves without wasting time

7. Kanban
■ As a consequences, it eliminates the wastes, reducing
the waiting time, lower the cost and optimized the
customer service
■ It makes the process of preparation food not much
later than a few minutes after taking order
■ to reduce the overproduction managed by the
pull/Kanban process

8. Outcomes
■ Standardized works make the same taste and size of sandwiches in every restaurant.
■ By implementing just-in-time production system, inventory is significantly reduced to a
minimum.
■ Non-valued added activities are eliminated so that waste are decreased to a noteworthy
amount.
■ The menu becomes more customizable and flexible because of the pull system concept.
■ Maximum utilization of space and equipment impressively reduced the cost of maintaining
the unnecessary space and hiring additional employees,
■ Without raising the product prices, the profitability remarkably increases.

9. Interesting Points of McDonalds
”Made for you” food preparation system
■ It is one of the operating systems McDonalds implemented to improves the process
time, food quality and customer services.
■ The computer system can generates orders to prepare foods at advance and select the
best employee to produce certain type of product during peak hours.
■ Special toaster produces buns within 11 seconds so that the lead time is significantly
reduced.
■ Special holding cabinet which can hold different kinds of meat allows the employees
to handle difference components easily and quickly.

10. Interesting points of McDonalds
“Experience of the Future” concept
■ This concept is to improve the communication with
their customers.
■ Mobile ordering, kiosks and table service are used in
ordering process.
■ In addition, these devices could entertain the
customers while they are waiting for the orders and
allow them to pay their bill.
■ This can reduce the labor cost as there is no need of
frontline workers.

11. Interesting Points of McDonalds
“Layout Plan”
■ Since 1950s, the layout plan of McDonald’s
restaurants has been innovating.
■ These included indoor seating, drive-through
windows, adding play areas and redesign of the
kitchen, self-service kiosk.
■ The latest renovations includes separating the
restaurant into three sections: (1) the “linger” zone,
(2) the ”grab and go” zone and (3) the “flexible” zone
which are based on the age and numbers of
customers.

12. Summary
■ The combination of lean tools, pull system, just-in-time production and advanced
tech-devices makes McDonald’s to stand as one of the world leading fast food
organizations.
■ Because of the rise in demands and other organizations’ attempting to achieve the
customers’ attention, the risks and challenges will be more difficult for McDonald’s.
■ Therefore, McDonald’s needs to find new ways and ideas to maximize the efficiency
and effectiveness of its restaurants.