Reference no: EM132677139
McDonald's Competitive Advantage Through Layout Design
In its half-century of existence, McDonald's revolutionized the restaurant industry by inventing the limited-menu fast-food restaurant. It has also made seven (7) major innovations. The first, the introduction of indoor seating (1950s), and the second are the drive-through windows (1970s). The third involves adding breakfasts to the menu (1980s). The fourth is the company initiative to add play areas to their stores (late 1980s). In 1990s, McDonald's completed its fifth innovation, a radically new redesign of the kitchens in its 14,000 North America outlets to facilitate a mass customization process. Dubbed the "Made by You" kitchen system, sandwiches were assembled to order with the revamped layout. In 2004, the chain began the rollout of its sixth innovation, a new food ordering layout: the self-service kiosk. Self- service kiosks have been infiltrating the service sector since the introduction of ATMs in 1985. Alaska Airlines was the first airline to provide self-service airport check-in, in 1996. Most passengers of the major airlines now check themselves in for flights. Kiosks take up less space than an employee and reduce waiting line time.
Now, McDonald's is working on its seventh innovation, and not surprisingly, it also deals with restaurant layout. The company, on an unprecedented scale, is redesigning all 30,000 eateries around the globe to take on a 21st century look. The dining area will be separated into three (3) sections with distinct personalities: (1) the "linger" zone focuses on young adults and offers comfortable furniture and Wi-Fi connections; (2) the "grab and go" zone features tall counters, bar stools, and plasma TVs; and (3) the "flexible" zone has colorful family booths, flexible seating, and kid-oriented music. As McDonald's has discovered, facility layout is indeed a source of competitive advantage.
Questions:
1. What is/are the type/s of layout present in the given case?
2. How can McDonald's improve their layout strategies using the different approaches in layout design?
3. How can McDonald's maintain their competitive advantage through layout design based on the advantages of work cells?
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