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Rather than a strategy or program for cost reduction, a lean is a form of thinking and acting for the organization in general. The concept of Lean production was introduced following a comparative study of Japanese automobile industries and other parts of the world. The lean supply model concept was introduced to describe the practices of supply chain management that are grounded on lean thinking. The early work of Toyota is also worth mentioning with respect to the origins of lean thinking (Love, 23).
The basic definition given to lean production is a system that entails the creation of outputs by the use of less of every input. It can be compared to the conventional mass-production system that offers an increased choice for the consumer or end-user. Waste can be defined as activities that do not add value, from the end user’s or customer’s viewpoint. A lean technique has recently been implemented at McDonald’s. One of the key observations that one can make upon arriving at McDonald’s is stacks of cheeseburgers, quarter ponders, hamburgers, and other products stacked in burger chutes located at the front counter.
The products have been organized in batches ready to be delivered to respective customers. This system works efficiently so long as there are enough customers in need of the prepared burgers (Love 34). One of the philosophies in Mcdonald's is Just in Time. This can be defined as a technique that entails the production and delivery of products in the amount needed when customers need them and not before they require the products. Just in time has not only benefited McDonald’s but it has also added to organizational value.
The key benefit of the application of just in time (JIT) at McDonald’s is better food at minimized costs. Any given company should consider implementing a strategy that would increase quality and at the same time reduce costs. With respect to improved quality, the company offers better tasting and fresh burgers. JIT burger assembly signified high-quality customer service. The company waits until the customers place their orders. This means that there are no challenges or problems regarding special orders for its customers.
The company has the ability to offer quality customer service at a fast rate while offering low ordering costs to its customers (Lai & Cheng, 49). This is mainly because the costs linked to order would result in losing customers who would grow tired of ordering fast food that is actually not fast. Lean supply is another concept worth noting. It refers to a strategic model that involves the relationship between suppliers and customers.
The concept of partnership as a form of collaboration is the main point of lean supply. The lean supply model defined seven types of wastes that a company such as Mcdonald's should aim at eliminating (Lehtinen & Torkko, 63). Overproduction is among the key forms of waste. This refers to the production of too much information, resulting in surplus inventory and poor quality. Defects should also be minimized. These refer to frequent mistakes in product quality, paperwork, or even poor delivery performance.
Unnecessary motion, referring to the poor organization in the workplace is another waste. Also waiting is another waste, often resulting from a long period of inactivity for information, products, or employees. Inappropriate processing and excessive transportation should also be avoided. Inappropriate processing may result from the use of inappropriate tools, systems, or procedures. Excessive transportation refers to excessive movement of goods or information, hence leading to wasting of effort, time, and cost.
Finally, unnecessary inventory is considered a waste, which arises from information delay and surplus storage (Lai & Cheng, 78). Consequently, this leads to poor customer service and excessive costs. Companies in the fast-food industries need to realize that finding waste can be a challenging task. It is, therefore, essential for various tools to be used in analyzing the information environment and the physical product. One of the most useful tools is referred to as process activity mapping.
The major role of this tool is to identify productivity opportunities and lead time for both information flows and physical product flows. The Supply chain response matrix is another tool worth noting. This tool is used in the evaluation of the lead and inventory times that a supply chain incurs in the maintenance of a given customer service level (Harrison, Alan & Remko, 42). This mapping has a fundamental objective of improving or maintaining the service level of the whole chain at minimal costs.
Production variety funnel is another tool worth noting. This refers to a mapping technique that gives a map of the product variant number at each manufacturing process stage. Quality-filter mapping is a tool that is used to identify various forms of quality defects associated with the value stream. Demand-application mapping refers to a graph where quantity is plotted against time. This plays a role in illustrating a product’s batch sizes at different production stages. Finally, there is the value-analysis time profile, which is used in mapping the points where there is money wastage.
In conclusion, McDonald’s, which is among the leading companies in the fast-food industry, has applied lean thinking in its processes, and this has resulted in lowering of costs and improved quality of products and customer service. It is therefore essential for other companies to follow McDonald’s example.
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