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