jit in mc donald's
Post on 20-Jan-2015
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A Presentation on
Submitted to :-
K.K. Parekh Institute of Management Studies (Amreli)
JUST IN TIME (JIT)
Prepared by :-
Mehul Rasadiya
CONTENTS
What is JIT? Objective Concept Benefits Implementation in McDonald’s
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
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.
CONCEPT
Inventory Reduction
Quality Improvement
Lead time Reduction
Continuous Improvement
Strategic Gain
BENEFITS
Low Inventory levels
Shorter production cycle time
Improved Product Quality
Better labor utilization
IN MCDONALD’S
IN MCDONALD’S
High holding costs are the nature of the fast food industries
Wastage Time
IN MCDONALD’S
JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.
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
IMPLEMENTING IN JIT PRODUCTION SYSTEMS
Criteria for success
1. Service
2. Quality
3. People
4. Food preparation
5. Profitability
.
SUPPLY CHAIN INTEGRATION
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.
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…
Here the customer starts the process, pulling an inventory item from Final Assembly…
Then sub-assembly work is pulled forward by that demand…
Then sub-assembly work is pulled forward by that demand…
The process continues throughout the entire production process and supply chain
The process continues throughout the entire production process and supply chain
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