Professional Documents
Culture Documents
In-N-Out Burger
Jeff Tolonen Tom Sobelman
Why In-N-Out?
Everybody likes
In-N-Out. Part of Southern California Culture. Its a thriving Mom & Pop chain in today's corporate dominated Mc World. In-N-Out is always crowded and for some reason people dont mind waiting. They have a unique business model.
In-N-Out Burger
Family owned California, Nevada, Arizona only Accountable to customer, not shareholder $1.8 million average annual revenue per restaurant (2005) Rivals top chains: McDonalds & BK Limited menu (Burgers, fries, sodas, shakes) Consistent McDonalds has added 37 items since 1955 Made to order business model No freezers, heat lamps, or microwaves Produce delivered fresh every other day
Inventory Management
Delivered fresh Daily or every other day, depending on location Minimize holding cost Own distribution system Private butchers, warehouses, truck lines Must improve system to expand beyond west coast and maintain strategic position EOQ & ROP Too hard without insider info: cost per order, vendor info, holding cost, etc
Customer Service @ In-N-Out, Im finding your response, below, a little confusing. If the information that I was looking for was published- I wouldnt have contacted you, rather, I would have had it already. I would much rather prefer a yes we can or a no we cant. I am not competitor nor am I requesting specific information. I find the fact that you wouldnt have time to talk to a student from a school of 35,000, that is central to 2 of your San Fernando Valley locations, difficult to fathom. If In-N-Out is unwilling to speak to me- thats fine, however, I would like a less condescending reason as to why. Is it because the information that I am requesting is too sensitive is it because In-N-Out doesnt have time for students?
Tom Sobelman Operations Data Analyst Care Level Management Mobile: (818) 665-9851 Office: (818) 595-8251 E-mail: tsobelman@carelevel.com
Response
get your food more than twice as fast at McDonalds & Burger King.
Variety: Limited to burgers, fries, soda, and shakes. Quality: In-N-Out is the gold standard for fast food. All the
ingredients are fresh and everything is made to order. Nothing is pre-made.
Flow
compared to the competition. You get your food more than twice as fast at McDonalds & Burger King.
Responsiveness
Quality
10
Process Architecture
Process Flexibility
High
JOB SHOP
(Commercial Printer, Architecture firm)
BATCH
(Heavy Equipment, Auto Repair)
FLOW SHOP
Connected Line Flow (assembly line) (Auto Assembly, Car lubrication shop)
CONTINUOUS FLOW
Low
(Oil Refinery)
Low
Few Major Products
High
Product Variety
11
Drive through
Order in queue
Prepare Fries
(Batches)
Load fries Cook fries In oil Unload fries
Note: assemble order consists of making the burger with the grilled patty, boxing the fries, getting any drinks/cups (including shakes), box/tray order 12
Ri, walk-in(t)
Ro (t)
R= -11.0
R=1.0
R=3.0
12:30pm
1:00pm
1:30pm
12:30p NA NA NA NA 15+2=17
Drive-through + walk-in
4
5 6 7
9:15
6:52 13:02 7:18
17:10
15:10 13:12 12:15
8
9 10 Average (T)
5:46
7:41 7:36 8:02
13:45
11:35 10:40 13:07
15
I=RxT
16
Unit Load (min per order) 0.5 min 0.5 min 3.5 min 3.5 min
0.5 min
5.5 min 0.25 min 0.25 min
0.25 min
0.25 min
17
Worker (cashier) * Register Worker (flipper) * Grill Worker (fry cook) * Fryer (baskets) Worker * (burger assembly) Counter workstations Worker * (order assembly) Counter workstations
(5/0.25) x 1 x 60 = 1200
18
Bottleneck Analysis
Levers for fixing the bottleneck Take processes off critical path
Adjust strategic position
Is the bottleneck a problem? Ri = 114 orders x 85%* = 96.9 orders of fries per hour Effective capacity = 261.0 orders per hour
*Based
on observation
19
Flow Time As is
Assemble Burger
Assemble Order
Cook Fries
Unload
-t
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0
Time (min)
20
Unload
-t
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0
Time (min)
21
Assemble order
Unload
-t
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0
Time (min)
22
Select Takes McDonalds fast food strategic position and focus it to only a few items Eliminates customer initiated wait time (ie gimme a minute)
Customers know what they want before getting into queue secret menu off regular menu to avoid wasted time
23
Drive through management Avoid blockage (ie drive through line into street) & abandonment (customer gets frustrated and leaves) Bring the window to the customer (PDA guys)
Possible without a mobile menu due to limited product variety
24
Cultivate walk in business Assign priorities (balance inflow sources) Drive through Walk in
25
26