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(JIT) in MC Donalds

n Tamil Nadu tea is mainly grown in Nilgiris district. Among the different channels, supply of tea through auction centre was prodominent. The rest of the supply was private estate cum processing units. A study was conducted to identify different supply chain and estimate cost and margins in each channel. An attempt was also made to analyze the supply of tea and channel consisted of tea producer-green tea leaves collectors/agents - through processors - retailer - consumer was found to be the most efficient channel when compare to other channels. The total marketing costs of tea producer, processor and retailer in this channel were found to be Rs. 28, Rs. 20 and Rs. 13.75, respectively. The marketing margins of these producer and intermediaries have been estimated and they were Rs. 52 for producer, Rs. 30 for processor and Rs. 30 for retailer. Similarly, marketing cost and margins for other channels have been estimated. In this channel, producer, processor and retailer were benefitted mainly because of high margin. The marketing efficiency has been found to be more in supply chain IV. In this channel number of intermediaries were less, hence retailer could directly place demand order to processor and processor supplied the same (demand based supply). In this channel only fine quality leaves are processed for direct retailing in domestic market (INDCO/Estate cum BLF). Hence, supply chain IV was found to be the most efficient. n Tamil Nadu tea is mainly grown in Nilgiris district. Among the different channels, supply of tea through auction centre was prodominent. The rest of the supply was private estate cum processing units. A study was conducted to identify different supply chain and estimate cost and margins in each channel. An attempt was also made to analyze the supply of tea and channel consisted of tea producer-green tea leaves collectors/agents - through processors - retailer - consumer was found to be the most efficient channel when compare to other channels. The total marketing costs of tea producer, processor and retailer in this channel were found to be Rs. 28, Rs. 20 and Rs. 13.75, respectively. The marketing margins of these producer and intermediaries have been estimated and they were Rs. 52 for producer, Rs. 30 for processor and Rs. 30 for retailer. Similarly, marketing cost and margins for other channels have been estimated. In this channel, producer, processor and retailer were benefitted mainly because of high margin. The marketing efficiency has been found to be more in supply chain IV. In this channel number of intermediaries were less, hence retailer could directly place demand order to processor and processor supplied the same (demand based supply). In this channel only fine quality leaves are processed for direct retailing in domestic market (INDCO/Estate cum BLF). Hence, supply chain IV was found to be the most efficient.

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0% found this document useful (0 votes)
114 views9 pages

(JIT) in MC Donalds

n Tamil Nadu tea is mainly grown in Nilgiris district. Among the different channels, supply of tea through auction centre was prodominent. The rest of the supply was private estate cum processing units. A study was conducted to identify different supply chain and estimate cost and margins in each channel. An attempt was also made to analyze the supply of tea and channel consisted of tea producer-green tea leaves collectors/agents - through processors - retailer - consumer was found to be the most efficient channel when compare to other channels. The total marketing costs of tea producer, processor and retailer in this channel were found to be Rs. 28, Rs. 20 and Rs. 13.75, respectively. The marketing margins of these producer and intermediaries have been estimated and they were Rs. 52 for producer, Rs. 30 for processor and Rs. 30 for retailer. Similarly, marketing cost and margins for other channels have been estimated. In this channel, producer, processor and retailer were benefitted mainly because of high margin. The marketing efficiency has been found to be more in supply chain IV. In this channel number of intermediaries were less, hence retailer could directly place demand order to processor and processor supplied the same (demand based supply). In this channel only fine quality leaves are processed for direct retailing in domestic market (INDCO/Estate cum BLF). Hence, supply chain IV was found to be the most efficient. n Tamil Nadu tea is mainly grown in Nilgiris district. Among the different channels, supply of tea through auction centre was prodominent. The rest of the supply was private estate cum processing units. A study was conducted to identify different supply chain and estimate cost and margins in each channel. An attempt was also made to analyze the supply of tea and channel consisted of tea producer-green tea leaves collectors/agents - through processors - retailer - consumer was found to be the most efficient channel when compare to other channels. The total marketing costs of tea producer, processor and retailer in this channel were found to be Rs. 28, Rs. 20 and Rs. 13.75, respectively. The marketing margins of these producer and intermediaries have been estimated and they were Rs. 52 for producer, Rs. 30 for processor and Rs. 30 for retailer. Similarly, marketing cost and margins for other channels have been estimated. In this channel, producer, processor and retailer were benefitted mainly because of high margin. The marketing efficiency has been found to be more in supply chain IV. In this channel number of intermediaries were less, hence retailer could directly place demand order to processor and processor supplied the same (demand based supply). In this channel only fine quality leaves are processed for direct retailing in domestic market (INDCO/Estate cum BLF). Hence, supply chain IV was found to be the most efficient.

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Prakash Kc
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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

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