How JIT implemented in Mcdonald'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
 What is JIT?
 Objective
 Concept
 Benefits
 Implementation in McDonald’s

3. 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

4. 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.

5. CONCEPT
 Inventory Reduction
 Quality Improvement
 Lead time Reduction
 Continuous Improvement
 Strategic Gain

6. BENEFITS
 Low Inventory levels
 Shorter production cycle time
 Improved Product Quality
 Better labor utilization

7. IN MCDONALD’S

8. IN MCDONALD’S
 High holding costs are
the nature of the fast food
industries
 Wastage
 Time

9. IN MCDONALD’S
 JIT system wherein
McDonald's doesn't begin to
cook its orders until a customer
has placed a specific order.

10. IMPLEMENTATION OF JIT
 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

11. IMPLEMENTING IN JIT
PRODUCTION SYSTEMS
Criteria for success
1. Service
2. Quality
3. People
4. Food preparation
5. Profitability
.

12. SUPPLY CHAIN INTEGRATION

13. BENEFITS
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.

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