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JIT in McDonald

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silambarasan Rajendran

on 8 August 2014

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Transcript of JIT in McDonald

JIT in McDonald
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.

Inventory Reduction
Quality Improvement
Lead time Reduction
Continuous Improvement
Strategic Gain

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

High holding costs are the nature of the fast food industries
What is JIT?

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.

Benefits (Cont...)

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
Low Inventory levels
Shorter production cycle time
Improved Product Quality
Better labor utilization

What is JIT?
A system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of waste and variance.

Just in Time Manufacturing refers to a system of manufacturing in which products are not built until the product is ordered and paid for. Some companies that have successfully implemented JIT include Toyota, Dell, Harley Davidson and McDonald

Implementation in McDonald
JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.
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