5.1  McDonalds Completes Kitchen Makeover to Meet Changing Customer Expectations

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As described in Chapter 5, process are the means by which value is created.  When customer perceptions of value change, however, processes must also change. Like most businesses that thrive over a long period of time, McDonalds had avoided a complete re-design of processes and merely evolved by adding new processes to old ones. VIDEOpi1

Changes in the market required McDonald’s to make a dramatic change in their processes to transition their kitchens to a new “made for you” operating system.  The capability they missed, and desired was to be able to produce a variety of sandwiches prepared to order rather than making them ahead of time as in the old system.

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McDonalds plan was to convert the entire business rapidly, at the rate of 160 restaurants per week.  I quickly became obvious, however that they could not meet their deadline.  A decentralized structure of implementation did not take into consideration the coordination needed to deal with a limited number of equipment suppliers. VIDEOpi3
A centralized team was organized to re-structure .the implementation and make .it succeed.   Coordinating the restaurants’ conversion involved all functional areas.  Once working, 200 to 250 stores per week were converted. VIDEOpi4

The centralized coordination, combined with kitchen equipment and cash register suppliers, worked together to make the implementation work.  Implementation was tracked in a common database that allowed access by suppliers and schedulers of trainers.  The team also created a library of all documentation related to the transition.

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With the new system the process is much quieter, more organized, and communication has become as important as the transfer of the food in the kitchen.  The layout of the kitchen is now more open for better communication.   VIDEOpi6