Question

Operations at Burger King. – Have it your way

Burgers are cooked in an infrared broiler. Three continuous chains pass through the broiler. Two are for meat, which take 80 seconds to make one pass, and one chain is for buns, which moves twice as fast. Each meat chain can handle 8 burgers per minute or 5.5 Whoppers. There is a two foot loading space at the beginning of each chain. At the end of the chain patties fall into bins where they can be kept up to 10 minutes until needed.

Sandwiches are assembled on a broad table with condiments down the middle. Usually whoppers and doubles are made on one side and other burgers on the other. After assembly sandwiches are put in the microwave to ensure they are hot. Normally burgers are only assembled to order. During busy times a limited number of completed standard sandwiches are kept under the heat lamp in the chutes. Sandwiches not made to order can be kept in the chutes for up to 10 minutes. The minute at which the sandwich is to be discarded is written on the wrapper. A clock, with only a minute hand, is above the bins.

“To finish a cheeseburger, for example, a worker took a burger and bun from the steam table, pulled a cheeseburger wrapper from a dispenser, and set the sandwich on it with the crown set to one side. Two pickles were placed on the center of the patty by hand, ketchup and mustard were dispensed in a spiral pattern from plastic squeeze bottles, and a slice of cheese was positioned. The worker replaced the crown, wrapped the sandwich, and placed it in the microwave oven for a 12-second timed cycle. When the buzzer sounded, the worker removed the sandwich, marked the appropriate symbols on the wrapper and slid the completed sandwich into the cheeseburger chute.” (Burger King Corporation, Harvard Business School Case, 9-681-045, 2/27/98, p 4.)

The front counter has 3 registers with buttons labeled and a microphone at each one. The customer would place the order. Burgers and other items (fries, rings) were announced on the loudspeaker. Payment was made and the counterperson would assemble the order in a clockwise manner – drink – sandwich – fries.Usually the customer would be asked to step aside and the next customer would be started. The target was to have the customer order complete within three minutes of the customer entering the store.

Operations at McDonald’s – We do it all for you.

The counter at McDonald’s had 5 registers. Each register had a lighted display that would display the order until assembly was complete. In this way it could be used to check the order. The counterperson would take the order and key it in, assemble it, and then take payment. In busy times a backer would be assigned to the counterperson to help in the assembly. Assembly was always done in the same order – drinks – sandwiches – desserts – fries - to minimize confusion and errors. The goal was to have customers wait in line for 1 minute or less and at the counter for 30 seconds or less. If the customer wanted a special they would be asked to step aside and wait at the register. Specials were noted on a slip of paper and handed to the grill workers.

Burgers were cooked on a grill. Each of 2 grills can hold 4 rows of 6 regular burgers each. Burgers were cooked in groups, usually of 12. Burgers took 100 seconds. Quarter Pounders took 270 seconds. Each patty was seared, turned and pulled according to a schedule signaled by a system with lights and buzzers. Buns were prepared on a tray at the dressing table. A tray would hold 12 burgers, 6 Big Macs or 10 Quarter Pounders. Condiments were added in measured amounts from a specially made dispenser. Pickles, onions, lettuce and cheese were added by hand. The tray would then be moved to the grill where burgers would be removed and placed on the dressed buns two at a time. The top buns were added all together. Burgers were then wrapped and placed in the bins.

The employee on the bin managed the production flow of the back area. He or she would watch the level of burgers in the bin and, when the level was low compared to the expected business, would order new sandwiches. As a batch was added to a bin it was separated from the next batch by a plastic sign with a number on it. When the minute hand got to that number all burgers remaining in front of that number would be discarded. When business was above a certain level one person was assigned to manage the bin. One person described it:

“I’ve worked here for a couple of years now and have a pretty good sense of when our peaks occur and how big they will be. But you always get the surprises, too, as happened today when two customers in a row ordered five Big Macs and cleaned me out. I’ll build up the bin before the peak starts, and try to run it as smoothly as I can because I know it produces a lot of tension on the grill if I order four burgers one minute and twelve the next. We usually run Quarters on the turn and can do that with burgers too – the old “less product more often” idea so we have more flexibility. I’ve seen charts that tell how many of each sandwich to stock at each volume level but, in the end, I have to watch what is selling and observe the incoming traffic to judge how much to have in the bin. I’d rather have too much than keep a customer waiting. It also makes a difference to me who’s on the grill, and I’ll stock higher with new people or a slow team there. I like this job – there’s a lot of hustle.” (McDonald’s Corporation (Condensed), Harvard Business School Case 9-681-044, 2/27/98, pp 7-8.)

Questions:

McDonald’s Vs. Burger King
What is the connection between marketing and production?
What are the production ramifications of small differences in target markets?
McDonald's	Burger King
Marketing Strategy: Are they making the same thing?
Process Flow Diagram, McDonald's Burger
Process Flow Diagram, Burger King Burger
Inventory: Where is it and why?
McDonald's	Burger King
Speed: Which system is faster?
Capacity: How many burgers can they serve in per minute?
Flexibility: Which system is more flexible?
McDonald's	Burger King
Information: How is counter information sent to the kitchen?
Front Counter Operations: What is the process for a customer?
Queueing: Lets talk about lines.
McDonald's	Burger King
Quality: What does McD do to ensure quality? BK?   What is quality?
Automation: Where does each use automation?

Answer 1

Answering the first 4 sub-questions as per Chegg Guidelines:

1. What is the connection between marketing and production

Marketing and production are quite related activities. Marketing helps in generation of demand for products by promoting the product and creating awareness for the same. Production is then conducted for the evaluated demand. Hence marketing and production must maintain the alignment and must work in sync.

2. The production ramifications of small differences in target markets are:

• The variation in demand based on demographics and customer groups
• The differences in shelf life of different components of a product have considerable effect on its longevity

3. Marketing strategy at Mc Donald’s: The company understands the potential of social media and is quite active on the same. Dedicated profile of the company is maintained at famous social networking platforms where latest offers and product information is displayed. There is a direct interaction between the company and the consumers through these portals.

4. Marketing strategy at Burger King: Burger King has resorted to digital marketing techniques for promoting its products. The company sends direct newsletters and maintains an interactive company website. The company also indulges in podcasts so as to create a lasting aura of its newly launched products. The company has quite effective marketing strategy to attract millennials.