1. MCDONALD’S
FAST FOOD
RESTAURANT
COMPANY
IM605-705
Presented by
Aung Myo Naing
TheinThan Hein
Ei Kay Khaing
Ngu Kay Khine

2. Introduction
■ World’s leading fast food service organization
■ Founded by Richard and Maurice McDonald
■ Ray Kroc founded McDonald’s System in 1955
■ Over 80% of McDonald's restaurants owned and
operated by independent franchisees
■ Faced by tough competition, it has maintained its
position by adopting the ‘lean’ focus

3. PokaYoke
■ Helps people and processes and avoid simple human
error in the workplace
■ McDonalds had a problem of food preparation
system
■ Using PokaYoke they have designed and
implemented just in time new kitchen system named
“Made for you”
■ For simple example, McDonald’s use the French fry
scoop to measure the amount and serving of
potatoes to get the exact amount of the orders

4. One Piece Flow
■ Focuses on completing the production of one piece from start to finish in process
inventory between operations
■ The kitchen employees prepare ingredients and wait for orders to cook it then the
frontline staff serve customers faster
■ Staffs in this situation are to focus on the demand and reduce minimizing waste
■ must understand what customer needs and wants to keep changing the variety
offered on a daily basis

5. One Piece Flow

6. Kaizen
eliminating waste (non-value added activities)
■ to measure the continuous improvement of production workers
■ To perform the overly hard work and eliminate the waste in workplace
Introducing quick system & the touch screen self-service
■ To decrease the waiting time in queues
■ To finish the order in short period of time
■ To enjoy by taking order themselves without wasting time

7. Kanban
■ As a consequences, it eliminates the wastes, reducing
the waiting time, lower the cost and optimized the
customer service
■ It makes the process of preparation food not much
later than a few minutes after taking order
■ to reduce the overproduction managed by the
pull/Kanban process

8. Outcomes
■ Standardized works make the same taste and size of sandwiches in every restaurant.
■ By implementing just-in-time production system, inventory is significantly reduced to a
minimum.
■ Non-valued added activities are eliminated so that waste are decreased to a noteworthy
amount.
■ The menu becomes more customizable and flexible because of the pull system concept.
■ Maximum utilization of space and equipment impressively reduced the cost of maintaining
the unnecessary space and hiring additional employees,
■ Without raising the product prices, the profitability remarkably increases.

9. Interesting Points of McDonalds
”Made for you” food preparation system
■ It is one of the operating systems McDonalds implemented to improves the process
time, food quality and customer services.
■ The computer system can generates orders to prepare foods at advance and select the
best employee to produce certain type of product during peak hours.
■ Special toaster produces buns within 11 seconds so that the lead time is significantly
reduced.
■ Special holding cabinet which can hold different kinds of meat allows the employees
to handle difference components easily and quickly.

10. Interesting points of McDonalds
“Experience of the Future” concept
■ This concept is to improve the communication with
their customers.
■ Mobile ordering, kiosks and table service are used in
ordering process.
■ In addition, these devices could entertain the
customers while they are waiting for the orders and
allow them to pay their bill.
■ This can reduce the labor cost as there is no need of
frontline workers.

11. Interesting Points of McDonalds
“Layout Plan”
■ Since 1950s, the layout plan of McDonald’s
restaurants has been innovating.
■ These included indoor seating, drive-through
windows, adding play areas and redesign of the
kitchen, self-service kiosk.
■ The latest renovations includes separating the
restaurant into three sections: (1) the “linger” zone,
(2) the ”grab and go” zone and (3) the “flexible” zone
which are based on the age and numbers of
customers.

12. Summary
■ The combination of lean tools, pull system, just-in-time production and advanced
tech-devices makes McDonald’s to stand as one of the world leading fast food
organizations.
■ Because of the rise in demands and other organizations’ attempting to achieve the
customers’ attention, the risks and challenges will be more difficult for McDonald’s.
■ Therefore, McDonald’s needs to find new ways and ideas to maximize the efficiency
and effectiveness of its restaurants.