Just-in-Time in McDonalds
Transcript of Just-in-Time in McDonalds
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Just in Time (JIT)
in Mc DonaldsPrepared byM8A StudentsTKMCE, Kollam
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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
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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.
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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.
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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.
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IMPLEMENTATION OF JIT Criteria for success
● Service
● Quality
● People
● Food preparation
● Profitability
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SUPPLY CHAIN INTEGRATION
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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.
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Thank You