MCDONALD’SFAST FOOD

RESTAURANT COMPANY

IM605-705

Presented byAung Myo NaingThein Than Hein

Ei Kay KhaingNgu Kay Khine

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

Poka Yoke

■ Helps people and processes and avoid simple human error in the workplace

■ McDonalds had a problem of food preparation system

■ Using Poka Yoke 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

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

One Piece Flow

Kaizeneliminating waste (non-value added activities)■ to measure the continuous improvement of production workers■ To perform the overly hard work and eliminate the waste in workplaceIntroducing 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

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

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.

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.

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.

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.

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.