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Just in Time (JIT)

in Mc Donalds
Prepared by
M8A Students
TKMCE, Kollam
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
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.
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.
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.
IMPLEMENTATION OF JIT
Criteria for success
● Service
● Quality
● People
● Food preparation
● Profitability
SUPPLY CHAIN INTEGRATION
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.
Thank You