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| As discussed in Chapter 5, starting over with a
completely new design of processes is often known as reengineering.
This can sometimes be the best way to respond to shifting customer
expectations that require process changes. Few business rely on their process to provide the
level of success that McDonald's has enjoyed. Despite the ability of
their system to produce high volumes of consistent products, when
the market wants variety and your production system sacrifices
variety for high volume, something needs to change. This was
exactly the case for McDonald's. Customers wanted variety. |
VIDEOjtm1 |
| While this change may seem simplistic, the new system is a complete re-design of the old
system. It required a complete re-engineering of all existing
processes. The new system allows for a make-to-order process, in contrast to the
old make-to-stock system. |
VIDEOjtm2 |
| Customer familiarity with McDonald's meant that they
had pre-existing expectations for service time. They wanted variety,
but they wanted it as quickly as they were used to getting served at
McDonald's. The new
system would have to satisfy the customers who were used to the old
ways. That set limits on response time, quality, food
preparation, people, and profitability. |
VIDEOjtm3 |
| In the new system, customer orders, with special instructions, are
immediately transferred to the kitchen. Imbedded in this new system
is a forecasting capability which builds up a small buffer
components (not finished products) of
appropriate items immediately prior to a predicted rush. |
VIDEOjtm5 |
| The new system has eliminated the metal warming bins
that served as the "warehouse" for their old make-to-stock
system. Now, a customer order immediately triggers the assembly of a
sandwich. An increase in the use of technology has resulted in
faster processes and better communication. |
VIDEOjtm4 |
| The new process is a smooth customized assembly
process that has evolved from what used to be a mass production
focus of building hamburgers before they were ordered, and holding
them until they were consumed. |
VIDEOjtm6 |