McDonald is the largest fast food restaurant brand in the world. It provides a mass fast food service with great-tasting and high quality foods as well as speed and convenience to customers. (McDonald annual report 2013) It operates with a low variety and high volume products. Technology is used to improve operation process In order to produce standardized service to Individual customer. Thus only limited customization of service, and limited contact between customers and staffs can be made.
Greasily, 201 3) In the late 1980, McDonald began to change due to the new Hellenizing. For external, high competition of competitors, new regulation of continuous Increase in labor cost, unpredictable customer demand, Increase In social responsibility needs, and changes In climate lead to the needs of energy efficient equipment and management of energy use. (McDonald annual report 201 3) For Internal, McDonald adopted a make-to-stock strategy In order to provide speedy service to customers.
According to Greasily (2013), a make-to-stock strategy can shorten the throughput time the customer from ordering to receive the product or Irvine. As you can see in figure 1, McDonald operated the kitchen with a line layout in which the hamburger assembly process start from one end, then move in a flow from one processing station to the next. The process will go through four steps which toasting the buns, adding condiments and hot meat patty, wrapping entourage in the metal warming pad at last. Francis) After taking the order at the counter, employee will take the assembled bun, chips and drinks to the customer within 1 minute. McDonald has adopted this method for over 40 years. The management of McDonald found that unpredictable customer needs causing stock out, it can increase in the customers waiting time, and decease the service level.
Wrong forecasting caused overstock, a large amount of obsolete and wastes of foods generated every day.Buns cannot storage overnight as McDonald has to maintain quality foods and high service level. Thus McDonald adopted a new preparation system called “Made for you”. You can see the big change of McDonald is the metal warming pad is gone.
Replace by a make to order system. As you can see In figure 2, employer will follow a first in first out sequence to make the order showing on the screen once the order is made from reception. This can improve the overstock problem and minimize the waste of foods.At the restaurant peak time, part-time employees are used to maintain the service level. Two assembly lines are used.
The computer can also predict the demand before order Is place. When business Increases, the computer will generate the best Items helping employee to create buffers of product. The system can manage the employer output. It can know who Is he next person are best able to work, or automatically change to the side which Is able to produce faster to customer. McDonald also trained the staff for multi tasks.
Those can help running the overall process more efficiency, maximize productivity, reduce the labor cost and maintain the customer service level that reducing the rise of stock out at the peak time. Beside the preparation system, McDonald also changed the reception layout in order to deliver the meal faster. According to Greasily (201 3), poor layout design can reduce the capacity and productivity in overall operations, as exception layout and confused pick up path lower the speed of deliver goods and service.Now, cashier and meal taken position are separated. In where a specific person is assigned to distribute the meal set. Employee only focuses on the screen, and then distributes the meal. The separated layout design also helps minimize the employer’s movement, reducing congesting, employee can more concentrate on their work, and deliver goods and service faster.