Jit in mc donald's
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How JIT implemented in Mcdonald's
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Jit in mc donald's
- 1. A Presentation on Submitted to :- K.K. Parekh Institute of Management Studies (Amreli) JUST IN TIME (JIT) Prepared by :- Mehul Rasadiya
- 2. CONTENTS ï„ What is JIT? ï„ Objective ï„ Concept ï„ Benefits ï„ Implementation in McDonaldâs
- 3. WHAT IS JIT ????? ï¶ 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. ï¶ A corporate strategy ï¶ Focus of JIT: âą variance & waste
- 4. OBJECTIVE OF JIT ï„ Produce only the products the customer wants. ï„ Produce products only at the rate that the customer wants them. ï„ Produce with perfect quality ï„ Produce with minimum lead time. ï„ Produce products with only those features the customer wants. ï„ Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory.
- 5. CONCEPT ï„ Inventory Reduction ï„ Quality Improvement ï„ Lead time Reduction ï„ Continuous Improvement ï„ Strategic Gain
- 6. BENEFITS ï„ Low Inventory levels ï„ Shorter production cycle time ï„ Improved Product Quality ï„ Better labor utilization
- 8. IN MCDONALDâS ïŒ High holding costs are the nature of the fast food industries ïŒ Wastage ïŒ Time
- 9. IN MCDONALDâS ï„ JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.
- 10. IMPLEMENTATION OF JIT ï„ sophisticated burger-making technology (including a record-breaking bun toaster) ï„ McDonald's is able to make food fast enough to wait until it's been ordered. ï„ Reduction in wastage
- 11. IMPLEMENTING IN JIT PRODUCTION SYSTEMS Criteria for success 1. Service 2. Quality 3. People 4. Food preparation 5. Profitability .
- 13. BENEFITS Improved Quality â The burgers are prepared freshly and hence the quality has improved. Customer service â As the burger is made only after the order is placed, making special orders is not an issue. Cost Reduction â Due to significant reduction in wastage as uncooked material has a higher shelf life. Reduction in waiting â Customerâs waiting time reduce 11 min. to just 1 and half min.
- 15. JIT DEMAND-PULL LOGIC Customers Sub Sub Fab Fab Fab Fab Vendor Vendor Vendor Vendor Final Assembly Here the customer starts the process, pulling an inventory item from Final Assembly⊠Then sub- assembly work is pulled forward by that demand⊠The process continues throughout the entire production process and supply chain