Just in Time (JIT)

in Mc DonaldsPrepared byM8A StudentsTKMCE, 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