Introduction
When opening its first restaurant in Beijing, Taiwan, McDonald’s spent a long time and a lot of money perfecting its supply chain. In those early years, the company was mostly successful due to its capacity to successfully source as many of its materials as possible from Beijing. Although McDonald’s food, in general, can be difficult to source locally, McDonald’s French fries proved especially problematic (Gansky & McDonald, 2022). The high price and scarcity of domestic supplies made the importation of potatoes impossible.
This paper utilizes lean thinking and other applicable analysis tools to address areas where efficiency may be enhanced in the Beijing supply chain, which confronts several hurdles (Afonso et al., 2021). To round out the picture, the analysis will evaluate the supply chain’s inefficiencies and problems’ underlying causes, effects, and potential for remedy.
McDonald’s in Beijing’s Baiziwan district has a well-designed service mechanism in place, as the quality of the service provided is just as crucial to the business’s success as the quality of the food. At the store, numerous customers can get help in person. Every day, McDonald’s serves a massive crowd of hungry customers (Bittencourt et al., 2019). The organization deals with a high volume of consumers regularly, and its primary objective is to ensure their happiness.
McDonald’s is ahead of the curve because of the technology it’s implementing, which allows it to efficiently handle a large client base (Hommerová et al., 2020). The company’s cutting-edge microwaves, fryers, and automatic drink makers ensure that customers can expect extremely quick service. The company’s employees are all committed to providing customers with state-of-the-art products and services. To meet the varying needs of their clientele, businesses must design their service processes with flexibility in mind.
Analysis Using Lean Thinking
Through reducing waste and increasing efficiency, lean manufacturing helps businesses save money without sacrificing product quality. Lean principles, when implemented in a production setting, boost efficiency and output. It is a useful tool for executives and business owners to evaluate their company’s performance (Gansky & McDonald, 2022). When deciding on a manufacturing or service method, every business bases its decision on several factors, the most important of which are the company’s specific requirements. The process design a company uses will affect how productively and efficiently it produces.
Many companies use lean concepts when developing their manufacturing procedures because of their many benefits. Companies now prioritize client satisfaction over merely producing a quality product. The lean concept is also known as the Toyota Production System or lean manufacturing. Many companies have adopted the principles of the lean philosophy, which were first proposed by the Japanese in the 1950s (Fiorillo et al., 2021). Industrial companies originally developed lean manufacturing and production, but it is now widely used by the service sector to improve quality.
Several service industries have successfully implemented lean principles (Gabriel et al., 2020). The service industry is where an individual will most likely see the application of lean concepts to improve the client experience. The foundation of lean has been laid by a vast number of researchers. The study covers material essential to understanding the lean concept, such as an introduction to lean principles and how they might be applied in the design of service operations at McDonald’s in Beijing’s Baiziwan neighborhood.
Lean Principles
Lean manufacturing is based on the notion of minimizing wasteful processes. The need to accomplish more with fewer resources is emphasized. Some of a company’s resources are employed for things that are not crucial because they do not contribute much. Lean approaches not only help with production and design but also with distribution and customer service (Garay-Rondero et al., 2019).
To better serve their customers, businesses are adopting lean practices to speed up the order-filling process. A product’s production cost will increase if it takes too long to produce. Shortening the production cycle is a common practice in lean manufacturing. Lean manufacturing primarily aims to reduce production delays, waste, and strategic planning.
The term process management refers to the practice of systematically planning and directing the flow of work inside an organization. Five principles at the core of the lean manufacturing concept foster this way of thinking. It applies to studying business processes as if they were factories (González Chávez et al., 2019).
Value stream mapping, constant flow, pull systems, and constant improvement are only some of the five principles that make up lean management (Lekan et al., 2020). Concepts like quality management, just-in-time manufacturing, waste reduction, and progressive improvement are central. Controlling overproduction and processing, in addition to unnecessary motion, inventory waste, production errors, waiting time, and transportation time, will make waste reduction easier.
Specify Value
Any trustworthy company will know how important its products and services are to its target market. Customers’ willingness to pay is proportional to the perceived value of a product or service. Toyota is only one of several companies that use the “top-down target costing” technique.
In target pricing, the customer plays a central role in establishing the selling price of a product, service, or set of features (McNulty et al., 2019). A final price can be calculated using a specific value method. A company’s ability to keep its profit margin from its customers high depends on how well it controls its expenses.
Integrate Value Stream
A series of steps begins with the accessibility of inputs and finishes with the supply of something of value to customers. The method is used in production to reduce waste and costs. Businesses at all value chain stages have a vested interest in effective supply chain management (Noto & Cosenz, 2020). The value stream consists of three distinct phases: the generation of an idea, the management of pertinent data, and the distribution of tangible products.
Make the Offering Flow
In a productive company, everybody knows their place and pitches forward. The workflow should be kept efficient to save time and money. If the workflow is disrupted, more waste is likely to be produced (Oliveira et al., 2019). Coordination between tasks is essential for timely completion. Planning the flow process with care is essential. The lean methodology allows for the removal of process bottlenecks and other obstacles.
Implement Pull
In this customer-centric, lean framework, their wants and requirements are prioritized. Non-lean businesses often use a push methodology, in which work is done whenever their employees have free time. Under this system, companies may produce goods that fail to meet consumer demand. Lean companies put the requirements of their customers first (Pham et al., 2019). Companies employ the process to ‘draw’ work from other locations.
In the pull system model, businesses do not start making a product until they get an order from a customer. One way to achieve this goal is to increase production flexibility and decrease delivery times. Organizations should promise to fulfill client requests within the specified time range.
Perfection
The first four lean principles focus on how to put the system into place, while the fifth and final principle is about how to improve it. Lean manufacturing seeks perfection while also inspiring new ways to improve (Mogotsi & Saruchera, 2022). For optimal user satisfaction, a system must be consistent and reliable (Fiorillo et al., 2021). According to lean production principles, every step of the manufacturing process must provide value to the finished item. The manufacturing process is essential for making high-quality products.
Applicability of Lean Principles in McDonald’s
McDonald’s Baiziwan location in Beijing had its share of problems in the middle of the twentieth century when increased competition made it hard for many businesses to thrive. The company kept its leading position by constantly innovating its offerings (Gansky & McDonald, 2022). Some lean practices could help McDonald’s in Beijing and Baiziwan even more. In some cases, using lean concepts can improve value while decreasing waste.
The service process design at McDonald’s is amenable to some lean tweaks. McDonald’s is a business that could benefit from adopting several of the core tenets of lean management, including value, pull, established flow, and excellence. Some workers at McDonald’s accept orders and bring clients their food within minutes (Garay-Rondero et al., 2019). Fries come in various flavors and textures, and the consumer can specify their preferences to the service provider, such as hot, regular, or extra cheese, in addition to making their selection. Using the value principle, a business can attract and retain customers by providing solutions to their problems and satisfying their wants and needs.
Modern consumers typically make purchases online or over the phone. If a company listens to its customers and adjusts its products and services accordingly, it can increase its value. Customers are more likely to return to a business if they are pleased with the service they received the first time around. McDonald’s has a loyal customer base in part because it consistently delivers customers’ orders quickly (Hommerová et al., 2020).
Using the value-lean methodology, McDonald’s workers can reduce customer wait times and receive orders directly from patrons. It can reduce customer wait times by making better use of today’s technology. A computerized system may be used to oversee the operation. Modern kitchen appliances mean the shop can serve customers quickly. Possessing a highly competent workforce could also speed up the delivery process.
McDonald’s once used a batch production method to make French fries. With this method, the company made a large number of fries at once and stored them in warming bins to keep them warm while they were being served. The corporation subsequently came clean about how this approach increases garbage output. Lean manufacturing principles could be useful in finding a solution to this problem.
The just-in-time strategy is supported by the lean concept and pulls (Hommerová et al., 2020). Until the service provider receives an order from a consumer, no work will be done. McDonald’s stock price will increase as a result of adopting a just-in-time strategy. McDonald’s uses the Just in Time strategy to ensure that customers always get their food as soon as possible by making significant use of automated technology. Thanks to the automated equipment, customers’ orders will be fulfilled rapidly.
Serving customers promptly without sacrificing food quality is paramount for this business. The lean idea of perfection encourages constant improvement, which has many advantages for McDonald’s. Focusing on process design excellence in service delivery can give a company a leg up on the competition since customers are drawn to businesses that are always innovating (Lekan et al., 2020). Combining CQI (constant quality improvement) with cost reductions can lead to perfection.
People have an innate desire to explore new things, so customer demand increases when new and better ideas are introduced. Successful businesses know that the secret to success is to eliminate unnecessary motion, maintain positive relationships with their suppliers and customers, minimize waste in manufacturing, and place their customers first. The business must revamp its operations to remain competitive.
However, McDonald’s competitors are developing rapidly as the fast food business grows (Hommerová et al., 2020). The likes of Starbucks, Yum Brands, Metro Panera, Burger King, and Wendy’s all pose serious threats to McDonald’s market share. Other fast-food establishments in the neighborhood compete with McDonald’s. Thus, the corporation needs to adopt appropriate lean concepts to preserve its market preeminence.
Using lean principles, the company can keep its customers and boost productivity. Successful application of lean principles requires active participation from all stakeholders. Effective communication and teamwork require that each team member understand their role and how it contributes to the whole.
Everyone participating needs to be aware of their part and play it well to prevent the entire system from collapsing (Hommerová et al., 2020). The suppliers, the service providers, and the customers make up the most important parts of the system. Everyone involved in the operation must have a thorough understanding of it. This is a great way to increase the expertise of all team members.
Conclusion
McDonald’s is one of the few major chains in the fast food sector. The quality of the firm’s offerings has earned it widespread recognition and esteem among its peers. The preceding explanation makes it very evident that McDonald’s, as one of the most well-known firms in the fast food market, may gain from implementing lean concepts to improve its customer service. Lean management principles could help McDonald’s cut costs and improve service. An organization can improve the standard of its output by adopting lean procedures.
The research delves into five core tenets of lean management: value, value stream, flow, pull system, and perfection. McDonald’s may adopt lean principles: value, a pull system, perfection, and flow. When these lean principles are followed, there is less waste, less overproduction, less waiting time, less inventory, and fewer mistakes. Organization-wide buy-in is essential for a smooth transition to lean practices.
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