THE 7 P's Of Mc DONALDS

• PRODUCT• PRICE • PROMOTION • PLACE• PEOPLE • PROCESS • PHYSICAL EVIDENCE

OBJECTIVES• Study and analyze input and output in process.

• Value addition.

• Cycle time of production process.

• Quality Assurance

• Scope of productivity improvement.

• Type of layout.

History/ Introduction

• McDonald’s Corporation grew from a single drive-inMcDonald’s Corporation grew from a single drive-in restaurant in San Bernardino, California, in 1948, to restaurant in San Bernardino, California, in 1948, to thethe largest food-service organization in the world.largest food-service organization in the world.

• McDonald’s owned $13 billion of the $93 billion fast-McDonald’s owned $13 billion of the $93 billion fast-food.food. Introduction of the "Speeded Service System" in Introduction of the "Speeded Service System" in 1948 established the principles of the modern fast-1948 established the principles of the modern fast-food.food.

McDonald's India opened its first family restaurant McDonald's India opened its first family restaurant at Basant Lok in Oct, 1996.at Basant Lok in Oct, 1996.

McDonald’s has 132 restaurants in India of which McDonald’s has 132 restaurants in India of which 79 are in North & East India and 53 in 79 are in North & East India and 53 in West & South West & South India.India.

McDonald's operates over 31,000 restaurants McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people.worldwide, employing more than 1.5 million people.

Functions of material management in Mc Donald1. Materials planning and programming1. Materials planning and programming

2. Raw material purchase2. Raw material purchase 3. Receiving, store keeping and warehousing3. Receiving, store keeping and warehousing 4. Issuing of material4. Issuing of material 5. Inventory control5. Inventory control 6. Transportation of materials6. Transportation of materials 7. Vendor development7. Vendor development

8. Vendor rating8. Vendor rating 9. Disposal of scrap and surpluses9. Disposal of scrap and surpluses 10. Just in time10. Just in time

Procurement of raw materials

• Vegetables from Ludhiana (Punjab)

• Chicken from Mumbai (Maharashtra) • French fries from USA • Valla Mine fish from New Zealand • Ketchup from

PROCESS

The food manufacturing process at Mc Donalds is completely transparent and the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

VALUE ADDITIONThe Primary VALUE- CHAIN Activities are:

• Inbound Logistics: The receiving and warehousing of raw materials and their distribution to manufacturing as they are required.

• Operations: The processes of transforming inputs into finished products and services.

• Outbound Logistics: The warehousing and distribution of finished goods.

• Marketing & Sales: The identification of customer needs and the generation of sales.

• Service: The support of customers after the products and services are sold to them.

• Technology development: Technologies to support value-creating activities.

QUALITY ASSURANCE Quality can be defined in the terms of:

(1) INTRINSIC QUALITY – Quality of Product(2) EXTRINSIC QUALITY – System of Production & Process. Quality Assurance Team is responsible for

monitoring the quality of Food both in Restaurants as well as the Supplier Warehouses.

Consideration:

(1) Hazard Analysis and Critical Control Point. (HACCP) (2) Good Manufacturing Practices (GMP) (3) Sanitation Standard Operating procedures (SOPs)

Cycle- Time of Production Process

• BUN Toasting (11 Seconds) – A new machine toasts the BUNS at 545 degrees Fahrenheit for 11 Seconds, Eliminating the need to Pretoast. This Process use to take 20 to 30 Seconds.

• ASSEMBLY (20 Seconds) – The Sandwich use to be completely assemble at this point.

• Wrapping (14 seconds)-A hot chicken patty is placed on the assemble bun and the sandwich is wrapped. This is the point when sandwich is micro waved.

• This order is supposed to be picked up immediately to keep it fresh.

• Customer service (45 seconds)-Time to take the order handle the payment and assembled the meal.

TYPE OF LAYOUT

• PROCESS LAYOUT• Raw material are arranged or grouped

according to the requirement.• This layout deals with low volume and high

variety production output.

OUTPUTS• McChicken burger• Filet-o-fish• Veg pizza McPuff• McVeggie burger• McVeggie burger with cheese• McCurryPan Veg• McCurry non-veg• Wrap-veg• Wrap non-veg• McAloo tikki burger• Crispy Chinese • Beverages and hot beverages• Finger food

INPUTS• Breaded vegetable patty (peas, carrots ,green beans, red capsicum,

potatoes) • Breaded chicken patty.• Breaded Filet-O-Fish.• Spicy bread with continental vegetables • Spicy bread with seasoned chicken cubes• Tortilla bread filled with spicy salsa • Lettuce• Special sauce• Tartar sauce• Spicy sauce • Egg less sauce • Italian tomato sauce • Bun • Sesame seed bun • Processed cheddar cheese• Mexican fried chicken • Tomatoes • Onion • Vegetable Oils

PROCESSRequirements for Stuffed burgers:

1. Ground chicken that is not too lean 2. A good spatula 3. A grill with fuel 4. Something to stuffing burgers

We can put anything that fits in to stuffed burgers like bacon and cheese etc.

Steps Involved in chicken burger : 1. Chicken patty cooked for 45 sec on extremely hot grill. 2. Temperature of 360 degree F is maintained. 3. Salt and peppered 4. Taken off grill 5. Put bun in toaster for 8 sec. 6. Squirt of ketchup, squirt of mustard, pinch of small onions

(dehydrated), one pickle, slice of processed cheese and one piece of chicken patty.

PROCESS Steps involved Vegetarian Burger:

1. Vegetable patty cooked for 30 sec on extremely hot grill.

2. Temperature of 360 degree F is maintained 3. Salt and peppered 4. Taken off grill 5. Put bun in toaster for 8 sec. 6. Squirt of ketchup, squirt of mustard, pinch of

small onions (dehydrated), one pickle, slice of processed cheese and one piece of vegetable patty.

Equipments

• FRY MASTER • GRILLER • TOAST MASTER • NON VEG FREEZER • VEG FREEZER • CHILLER • SANITIZER

EQUIPMENTS

EQUIPMENTS

RECOMMENDATION1. Increase and Provide Delivery Services to

every Potential Customer-Potential Segment.

2. Increase Drive Through Branches.3. Remove U.S. Branding Consciousness.4. More Awareness to remove Obesity link

with McDonald’s.5. Understand Local Tastes.