McDonald’s

Assembly Line
AISHA AISHWARYA SINGH-215120009
CYRIL THOMAS-215120031
RAJALEKSHMI-215120069
PREETHI S-215120074
VILLALAN V P -215120103
 1. Introduction:
•McDonald is the global largest fast-food giant.
•May 15, 1940 – Started by Richard and Maurice
McDonald in California.
•In 1955, Ray Kroc, a businessman, joined the company
as a franchise agent and proceeded to purchase the
chain from the McDonald brothers.
•Global headquarters - West Loop , Chicago in USA.
•With more than 50 plus years of down the line, they
are the worlds largest fast food chain restaurants in 121
countries serving 69 million customers and second-
largest private employer with 1.7 million employees.
•Famous for HamBurgers and French Fries
 What is the Case??
McDonalds “Speed Service System” – Assembly line
production From
Henry Ford.
a. a self-service restaurant
b. paper wrappings and cups – no dishwasher
c. 12-person crew specialized in specific tasks
d. Food was preassembled
• They has an open system that allowed the customers to
see the process.
This allowed McDonald’s to prepare its food quickly—
and even ahead of the time—when an order was placed
Why???
•Lateral Thinking -not with playing with
the existing pieces but with seeking to
change those very pieces.
•This is an example for being creative
with your strengths can leave a lasting
image.
•Simple creative idea collaboration with
the right plan and time.
2. Service Concept:
1.Quality-
The brothers took responsibility to ensure that McDonald’s
would sell only one hundred per cent beef patties. No
compromise on quality. Similarly, they took extra efforts to
ensure that each patty would contain exactly nineteen
percentage of fat content. Their french fries were better than
any other competitor in the town.

2.New Experience –
McDonald brothers not only focused on the quality of
products, services and processes but also on the quality of
infrastructure for enabling awesome experiences. They
designed the store to enhance the quality of everything the
customers see, touch, hear, smell and taste.
3.Cleanliness –
The chances of a customer turning loyal to a brand
is high if he leaves the premises with a positive
service experience about the brand. One of the
factors that have the potential to hinder the positive
service experience is Customer’s hidden anxieties.
4. STANDARDISATION-
Ray’s team developed their own methods and
equipment in preparing the ingredients without
manual intervention. One of the examples is the
raw hamburger patties are prepared and semi-
cooked in a centralised place, without any manual
intervention in determining the texture, thickness,
density, consistency and colour.
5. SERVICE AS MANUFACTURING
When Ray Kroc took control of the McDonald’s in the
year 1955, he liked the McDonald’s idea of
comparing service and production to the concept of
car assembly line and manufacturing process. He too
began to view everything from the assembly line
perspective.
6.BUNS
Buns are such an important part of McDonald’s
business that prompted Ray’s team to devote special
attention. One of Ray’s team associate Fred Turner
saw that it would be easier and faster for a griddle
man if McDonald’s received individual buns rather
than clusters.
3. How McDonalds got its start:
•In 1940, the McDonald brothers moved their
restaurant to San Bernardino, where they
started operation under the name McDonald’s
Famous Barbecue with a 24-item menu
•Later in 1948, they tweeked their restaurant
into a drive-in model as Drive-ins were the
latest trend.
•The restaurant was doing exceptionally well
for a while with their 27-item menu, drive-in
model restaurant. But eventually, the
business’s profits began to come down and the
brothers realized the drive-in model’s flaws.
Drawbacks of the
Drive-in model
Service
•Orders took a very long time to be delivered to
the consumers.
•Even when orders were served, the orders were
usually wrong.

Payroll and Overheads

•The drive-in model had a huge staff requirement
(Car hops)
•Plates and dishes constantly being broken or
stolen

Customer base
•The drive-in model restaurant attracted mostly
teenagers while the Brothers preferred and
sought to create a family restaurant.
The rebuild

•To combat the problems they

faced, they decided to reconfigure
their entire business and to
rebuilt.
•The brothers decided to close
down their thriving business for
months to reconstruct their
business.
•The restaurant was closed for 3
months. During this time, the
brothers streamlined their
operations and introduced the
Speedee Service System.
•Thereafter they reopened with a
self-service system and a walk up
window.
4. Assembly line
Unconventional way of working
● The first businesses outside of manufacturing to adopt the philosophies
of Lean Management production systems
● When the business expanded from one little shop to franchises and
made a commitment to increase their turnaround times they needed to
find a way to do it
● Using a tennis court, a piece of chalk and a handful of employees they
started with where the business system currently was.
Assembly line
● Henry Ford revolutionized the auto industry by invented the assembly
line concept.
● Many restaurants began to add drive-through lanes so people could buy
food and eat in their cars. And boom, “fast food” was born
● Borrowing from Henry Ford, the McDonald brothers created an assembly
line in the kitchen called The Speedee system
● The whole process was automated; it became a factory.
● Little by little, complicated tasks, requiring more advanced skill sets, are
simplified and broken into much smaller steps able to be done without
skill or training.
5. How McDonald’s build its
sustainable competitive
advantage:
Production Process
●Process Streamlining:
-Every step and movement of labour is pre-arranged
scientifically to avoid any screw ups.
-well working streamlining process
●Quality Experience
-No customer waiting time.
-Food was served hot
-No issue like receiving wrong order
-Required 30 seconds to make & pack a burger as compared
to 30 minutes taken by the competitors
● Quality in Product
-As the machines handled most of the tasks,
McDonald brothers were free to work on the
quality of the product at every step.
-They took extra efforts to ensure that each patty
would contain exactly nineteen percentage of fat
content.
● Lower Price
-Reduced labour cost
-15 cent burger
Menu
● 80 percent of their sales came from hamburgers.
Materials & supplies
● They ditched their silverware and
plates for paper wrappings and cups
● freedom to either eat the food right
away or take it home.
● Branding takeaway packaging
Capital Investment
● McDonald’s doesn’t make their
money from selling burgers.
● Technically in the real estate business.
● “The only reason we sell fifteen-cent
hamburgers is because they are the
greatest producer of revenue, from
which our tenants can pay us our
rent.”
Franchising & Training
● Franchising
-Superior techniques, standardisation,
employee & operator training
programmes and frequent monitoring
● Training
-Trained to do the job right
Thank You!