JIT and Process Standardization Paper

Just in time is a strategy used by companies to improve efficiency and decreasing waste by receiving goods only when necessary which results in reduced inventory costs and to employ this strategy, a company must have the ability to accurately forecast demand. Benefits of using this strategy include cost reduction, delivery improvement, quality improvement, performance increases and increased innovation. Waste is eliminated through minimizing over production, reduced transportation, over processing, product defects, wait time, and minimal inventory. Costs of materials are reduced as the number of suppliers a particular company deals with is minimal. Fast food franchises use this strategy as food is cooked to order so there is not a large inventory of cooked food on hand. In accordance with the just in time (JIT) philosophy, McDonalds cooks food to order so that the customer receives fresh food within a very short amount of time. There are many benefits this company receives when adhering to this philosophy in terms of cost, quality and fluctuating demand adaptation. When a customer orders their food from a McDonald’s franchise, the food Is prepared shortly thereafter which results in lower costs as the customer would likely depart if the food took longer to cook. This company also saves in holding costs as the company is not required to precook food in order to keep up with high demand. This fast food franchise also adapts to fluctuating demand very well because of the ability to cook any food item in a short amount of time. Prior to a franchise incorporating the JIT philosophy and cooking food to order, each franchise must first receive the ingredients and supplies necessary as part of the production process. Each franchise requires a distribution network due to the mass production processes. Centralized warehouses store what all restaurants need including food, paper products, utensils and cleaning supplies. These centralized warehouses ship what is ordered by the managers of each store as the managers are responsible for tracking inventory. Food is mass produced in a factory and stored in walk in freezers until it is ready to be cooked via processes standardized by McDonalds.

Process Flowchart Diagram

All cooking equipment within each franchises kitchens are set to cook all food for the same amount of time, and employees are required to follow specific instructions to prepare each food item. These standardized processes ensure that each food item ordered has the same taste from one franchise to the next. These processes were implemented and standardized so that they would adhere and create a solid base so that any improvements, if necessary could be made if quality or cost reduction was necessary. McDonalds did not only standardize the food cooking process but has standardized its food safety processes over the years as well.

Mass production of food involves sending a large amount of food through a factory in a very short amount of time which means that if one bad piece of meat or waste is sent through, it could contaminate a very large amount of time and very quickly. In 1993, 700 people fell ill after eating hamburgers that contained Ecoli at Jack in the box franchises located in four different states (Wilson, Tracy V., 2015). This resulted in 200 hospitalizations, four casualties and the company nearly went out of business (Wilson, Tracy V., 2015). In response to this unfortunate event, the chain hired food scientist David Theno to help the company prevent similar fiascos by creating a standardized system referred to as the “Hazard Analysis Critical Control Points” or HAACP (Wilson, Tracy V., 2015). This standardized system identifies the steps during the food production process that food is considered unsafe to consume and once this was implemented, many restaurants and suppliers began to use this to ensure food safety. Overall, it appears as though the standardized food cooking and safety processes are effective. Any McDonalds franchise a person walks into whether its locally or abroad, that person can expect the same taste of a Big Mac or double cheeseburger. That same person can also expect that their food is being handled in a safe manner as there are specific food safety guidelines that employees must adhere to. There have been minimal food safety related issues associated with McDonalds with the exception of an Illinois McDonalds shutting down temporarily because of an investigation of individuals who reported being contaminated by salmonella (Newsdesk, 2012). After the investigation, it was discovered that the illness was not linked to McDonalds and the franchise reopened.

Recommendations for improving the processes involved specifically related to the just in time philosophy are for the staff to predict demand fluctuations so that they have the necessary ingredients to prepare food in a manner that effectively meets demand. If the staff is prepared for these demand fluctuations, they can prepare food as it is ordered to avoid customer dissatisfaction which may lead to waste. When food products are wasted, it may be of significant cost to the company and especially if food product is continuously wasted. Additionally, staff should follow safety regulations without fail to avoid costly mistakes as what occurred with Jack in the Box in 1993.

REFERENCES:
Manufacturing Planning and Control (5th ed.) Thomas Vollmann, William Berry, D. Clay Whybark, and F. Robert Jacobs McGraw-Hill, 2005 New York, NY
News Desk. (2012). After salmonella investigation, Illinois mcdonalds reopens. Retrieved from internet at http://www.foodsafetynews.com/2012/12/after-salmonella-investigtion-illinois-mcdonalds-reopens/#.VZsOLnpViko
Wilson, Tracy V. (2015). How fast food works. Retrieved from internet at http://science.howstuffworks.com/innovation/edible-innovations/fast-food2.htm