McDonalds is one of the major companies in the fast food market. The main encounter facing this company is a severe competition from other fast food businesses. The McDonald Company has managed to uphold its place in the market by implementing lean thinking. The important impression of lean thinking is to capitalise on the client value and to diminish wastes. This is attained by making more customers worth using the scarce resources. Most of the fast food companies need to realise that finding waste can be a challenging task(Womack, & Jones,2010). It is, therefore, significant for various tools to be used in analysing the information environment and the actual product. McDonalds implemented the following strategies to deal with the following sources of waste
The lean supply model defined overproduction as a form of waste that a company such as McDonalds should aim at eliminating. Overproduction as an important form of waste refers to the production of too much material, resulting in surplus inventory and reduced quality. Initially, McDonalds used to prepare snacks and keep the final products in the warming cases. This was aimed to reduce the serving time, but it earned them a bad reputation as it led to an increase in wastage (Melton, 2005). The company then decided to keep all the ingredients used in making the snacks ready such that when a customer makes an order, it can be prepared within the shortest time possible. This enabled to eliminate overproduction as products are only produced when demanded by the customers.
This refers to the duration from when the customer places an order and the time the time the order is executed. Initially, the company before installing the modern technology could have their customers wait so long to get served. The waiting time has reduced due to the use of modern technology. It is the computer method that communicates the order placed by a customer on the production staff during the time the customer makes the request. The modern cooking equipment and the highly skilled labour at McDonalds prepare the order within the shortest time possible(Womack, & Jones,2010).
According to the lean manufacturing principles, the organisation should reduce the holding cost if stock by getting rid of it, as holding inventory would incur the opportunity cost. McDonalds would guarantee that it meets demand at all the times. To deal with this requirement, it has refined stock mechanism which helps to manage the process and eliminate wastage due to overstocking.
Just in time
The significant advantage of the application of just in time at McDonald’s is better food at minimised prices. It is an obligation for an enterprise to consider implementing a strategy that would increase quality and at the same time reduce costs. The business would have to wait until the clients place their orders. This means that there are no challenges or problems regarding special orders for its customers. The company can offer excellent customer service at a fast within a very short time. McDonald’s ordering costs would be excessive without this capability. This is because the expenses linked to ordering would result in losing customers who would grow tired of ordering fast food that is not fast(Womack, & Jones,2010).
The defects are as a result of failing to employ adequate production resources and well-qualified personnel. McDonalds Company has sidestepped waste due to deficiencies by shortening the process. The high standard products by McDonalds are achieved by highly skilled and enthused staff on duty. This has led to defects and wastage getting reduced. By removing the faults, it would mean increased quality productivity and reduced production overheads.
McDonalds found it significant to place lots of importance on the entire employee participation. It is of importance to include everyone in the process as a team. The people involved in the process include the suppliers; staff attending to the customers; everyone is participating in the process, nurturing a lean culture. Besides, McDonalds Company greatly believed in multiskilling. It has also helped to build knowledge and experience in the team (Melton, 2005).
Striving for improvement
It is every company’s motive to achieve high-quality products with no wastage. McDonald is not an exceptional in making that principle. This has enabled them to work hard continuously towards doing high-quality service to customers within the shortest time. Also, McDonalds striving for improvement would mean reduced waste. So they constantly try to improve as an organisation and get closer to achieving this principle.
In conclusion, McDonald Company, one of the leading companies in the fast food industry has applied lean thinking in its developments. This has resulted to dropping of costs and improved value of products and customer service. Also, there has been the reduction in time wastage due to the application of modern know-how. It is, therefore, essential for other companies to follow the example of McDonalds to ensure that they achieve high quality with reduced wastage.
Melton, T. (2005). The benefits of lean manufacturing: what lean thinking has to offer the process industries.Chemical Engineering Research and Design, 83(6), 662-673.
Womack, J. P., & Jones, D. T. (2010).Lean thinking: banish waste and create wealth in your corporation. Simon and Schuster.