04 Layout - Layout Strategy Innovation at McDonald's Indoor...

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Layout Strategy Layout Strategy
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Innovation at McDonald Innovation at McDonald s s Indoor seating (1950’s) Drive-through window (1970s) Adding breakfast to the menu (1980s) Adding play areas (1990s) (three out of the four are layout decisions)
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McDonald McDonald s s - - New Kitchen Layout New Kitchen Layout Fifth major innovation - kitchen design No food prepared ahead except patty Elimination of some steps, shortening of others New bun toasting machine (11 seconds vs 30 seconds) Repositioning condiment containers (one motion, not two) Sandwiches assembled in order Production levels controlled by computer Discard only meat when sandwiches do not sell fast enough Savings of $100,000,000 per year in food costs
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Types of Layouts Types of Layouts We will pay particular attention to the items in bold: Fixed-position layout Office layout Retail layout Warehouse layout Process-oriented layout Product-oriented layout
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Warehouse Layout Warehouse Layout Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked
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Warehouse Layout Floor Plan Warehouse Layout Floor Plan Zones Zones Conveyor Conveyor Truck Truck Order Picker Order Picker
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Cross Docking Cross Docking Transferring goods from incoming trucks at receiving docks to outgoing trucks at shipping docks Avoids placing goods into storage Requires suppliers provide effective addressing (bar codes) and packaging that provides for rapid transhipment In In - coming coming Outgoing Outgoing © 1984-1994 T/Maker Co.
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04 Layout - Layout Strategy Innovation at McDonald's Indoor...

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