Managing for Quality and Performance Excellence 9th Edition by James Evans,William Lindsay

Exercise 53

McDonald's used to make food to stock, storing sandwiches in a large tray used to fulfill customer orders. When sales went flat in the mid-1990s and independent market testing showed a widening gap with competition in food quality, McDonald's recognized that the make-to-stock process was not meeting customer demands. After five years of lab and market testing, McDonald's rolled out the new "Just for You" system, which began in March 1998, to create a make-to-order environment. This shift required a massive change in technology with computers to coordinate orders; food production equipment using "rapid toasters" and temperature controlled "launching zones" to replace the old heat lamps and holding bins; new food preparation tables, and retraining efforts for the entire domestic food production organization of more than 600,000 crew members. However, this system has apparently backfired. Sales did not improve as expected and customers complained about slow service. The new system increased the average service time 2 to 3 minutes per order, and 15-minute waits were not uncommon. McDonald's stock price decreased, and rivals such as Wendy's captured additional market share.58 What lessons does this experience suggest for process management? What might McDonald's have done differently?