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A
Case study
On

Submitted in the partial fulfilment for the award
for degree of bachelor of business administration

Submitted To:-

Submitted By:-

Manisha Sharma

Sujeet Kumar Singh

Asst
...
)
1

ACKNOWLEDGEMENT

I would like to thank to Mr Manish Sharma ,Assistant Professor in
pratap university for extending his kind cooperation by supporting
and guiding us in successful completion of this case study on supply
chain management of McDonald’s
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Introduction of McDonald’s……………………………………………… 4
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5
3
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6
4
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5
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6
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8
7
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… 9-10
1
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11-12
2
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… 13-14
10
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…………………… 15
11
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Suggestion……………………………………
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Conclusion………………………
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Bibliography…………………………………………………………
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It has more than 30,000 restaurants in
over 119 countries, serving around 50 million people every day
...
One of the major challenges facing McDonald's is
managing stock
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Waste is
reduced by:
1
...

2
...

Stock management involves creating a balance between meeting customers'
needs whilst at the same time minimising waste
...
As customer tastes change, McDonald's needs to increase the
range of new products it offers, so the challenge of reducing waste becomes
even greater
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The idea of McDonald’s
was introduced by two brothers Mac (Maurice) and Dick (Richard) McDonalds
in California
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In 1940 the restaurant was
renamed as McDonald’s Famous Barbeque
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in 1954 a turning point came in McDonald’s brother
history
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McDonaldscorporation was build in those times
and as a result Kroc started expanding their business by opening franchises for
mcdonalds
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in 1968 McDonald open its
1000th restaurant
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in 1980 McDonalds was facing very big competition from its rival
Burger King and Wendy but McDonald with its innovation was experiencing
boost in its sales
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Taste was
improved and some new menu items were introduced
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McDonald start creating healthy image and invested heavily
on refurbishment in 2000’s
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it is the world leading brand in fast food
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they start their business in
India’s capital New Delhi
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Mcdonald India is 50-50 partnership between McDonalds USA
corporation and Two Indians (Amit Jatia Hardcastle Restaurant ltd Mumbai and
Vikram Bakshi Connaught plaza restaurant Delhi)
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majority of Indians are Hindu and cows are sacred to them
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The second majority
population is Muslim and they eat Halal food
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SoMcDonalds
changed their menu according to local community for example they introduce
Maharaja Mac instead ofBic Mac
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About 75 % of the
menu of McDonald’s has been indianite and specially designed to woo Indians
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McDonald by now
has a big presence in India and are trying to extend this ahead
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Company profile
Date of Establishment
Address

Branches

1955
Started in India in 1996
Hardcastle Restaurants Pvt
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1001 - 1002,
Tower - 3, 10th floor, Indiabulls Finance
Centre, SenapatiBapatMarg, Elphinstone Road,
Mumbai - 400013 Tel: 022 - 49135000; Fax:
022 – 49135001
Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida, Faridabad, Doraha,
Manesar, Gurgaon, Bengaluru, Chennai,
Hyderabad, Indore, Kolhapur, Nashik, Surat
and Vapi

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problems of mcdonald’s

In the past, stock ordering was the responsibility of individual restaurant
managers
...

For example, if last week's sales figures showed they sold 100 units of coffee
and net sales were rising at 10%, they would expect to sell 110 units this week
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It took up a
lot of the Restaurant Manager's time, leaving them less time to concentrate on
delivering quality food, service and cleanliness in the restaurants
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The new system
In 2004, McDonald's introduced a specialist central stock management function
known as the Restaurant Supply Planning Department
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The team
builds these factors into the new planning and forecasting system (called
Manugistics) to forecast likely demand of finished menu items (e
...
Big Macs)
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2
...
Every business
has three main types of stock:

Raw materials
The raw materials are the ingredients that will go into producing the finished
product
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These are delivered to the restaurants between
3 and 5 times a week
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The three sections are:




frozen
chilled
ambientwhich means foods that can be stored at room temperature
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Work-in-progress (WIP)
Work-in-progress refers to stocks that are in the process ofbeing made into
finished product
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The restaurant will only
combine these items just before the customer orders them so the Big Macs are
hot and fresh when served
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At
any one time, a restaurant will have a range of products ready for sale
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Using stock
At McDonald's, all raw materials, work-in-progress and finished products are
handled on a First In, First Out (FIFO) basis
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Therefore stock is always fresh because products
are sold in the order they are made
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3
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Stock management is the process of making sure there is enough
stock at all times to meet customer demands whilst minimising expensive waste
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A
mixture of specialist stock controllers and employees who previously worked in
the restaurants makes up the central team
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Anything that would affect the number of
customers visiting their restaurant needs to be logged with the team
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Supply Planners work with the new stock control system, Manugistics, to
ensure enough raw materials, e
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beef, tomatoes, lettuce, etc
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This ensures restaurants
can produce the meals required for the level of demand forecasted
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Forecasts are
calculated using:




store-specific historic product mix data from the last two years
store-specific and national causal factors
...
g
...


Causal factors
Supply Planners working for McDonald's include a range of causal factors in
the calculation of the forecasts, so that based on past performance they can
predict future demand for each restaurant
...
The planners use this
data in the forecasts for all stores that took part in that promotion
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The forecasts then become more
accurate, decreasing costs and improving customer satisfaction
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Stock control charts

A stock control chart shows the balance of orders for new stocks against sales
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For example, if sales of
burgers are going out of the system, then stocks of beef patties need to be
coming into the system
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This uses time series analysis
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Using complex calculations, the graph then
produces a forecast - seen below circled red
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Therefore, McDonald's
Restaurant Managers need to ensure that the data they enter into the system is as
accurate as possible
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They record all other items
weekly
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For example, the manager may

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have missed off a box of organic milk whilst counting them earlier on in the
shift
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This is an extra quantity of stock held to
meet unexpected higher demand
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Ordering

McDonald's store managers use a simple web-based communication tool called
'Weblog' to view and amend store Order Proposals
...
Weblog
enables managers and central planners to see what quantities have been ordered,
what the current stock levels are and exactly how much stock is due to be
delivered at a particular time
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The system now automatically
generates a delivery note that gives the exact quantities and descriptions of the
delivery
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This
saves valuable time and makes the process more cost-effective
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Many of
these are for restaurants and Restaurant Managers
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Benefits include:
1
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As a result, customers can always
receive what they order
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The system eliminates inexperience in the ordering
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3
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4
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The Restaurant Manager simply
inputs the current stock level
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Less waste means food costs are reduced
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6
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7
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8
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9
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Findings of mcdonald’s

My findings on the basis of this study are:
1
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2
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Now customers
are asked to carry their order from the counter themselves
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Changes are seen in McDonald’s supply chain management
4
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Suggestion
I suggest that McDonald’s has been changed are:1
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2
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3
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Conclusion

In the past, stock ordering was the responsibility of individual restaurant
managers
...

In 2004, McDonald's introduced a specialist central stock management function
known as the Restaurant Supply Planning Department
...

The team builds these factors into the new planning and forecasting system
...
Stock management is the process of making sure there is enough
stock at all times to meet customer demands whilst minimising expensive waste
...
mcdonald’s/supplychain
...
in
www
...
org
...
mcdonald’s

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