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MacSigma - McDonald’s To Adopt Six Sigma - Do you want fries with that?

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Old 11th March 2005, 03:44 PM
Sidney Vianna's Avatar
Sidney Vianna

Posts: 8,049
MacSigma - McDonald’s To Adopt Six Sigma - Do you want fries with that?


McDonald’s To Adopt Six Sigma

SOURCE: The Stamford Advocate (Connecticut newspaper)

McDonald’s is working with General Electric (GE) to learn about the Six Sigma management philosophy GE has found success with.

A group of McDonald’s management, including staff from finance, U.S. restaurant operations and U.S. business research, is taking part in the GE Commercial Finance’s Franchise (GEFF) program called, “At the Customer, for the Customer (ACFC).”

“The ACFC program does more than share knowledge,” said Tom Quindlen, president and chief executive officer of GEFF in Scottsdale, AZ. “It allows our customers to actively look at the GE processes and apply them to their own businesses to help them grow. More than 30 GEFF customers have benefited from the ACFC program since 2002. It’s been a home run for us.”

GEFF has given McDonald’s management a new perspective on their business, said Matthew Paul, senior executive vice president and chief financial officer of Chicago based McDonald’s. “Gaining access to GE’s management knowledge will help McDonald’s to continue to learn and grow,” Paul said.

“The two organizations are filled with smart people who like to learn from each other in service to our customers. That’s what Six Sigma is,” said Karin Teglia, corporate vice president in finance. McDonald’s has already incorporated some aspects of the philosophy. “It’s a disciplined approach to decision making.”

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Old 11th March 2005, 05:10 PM

Posts: 130
Clown So it goes

This just confirms what I have always believed about 6 sigma.

Why couldn't I have invented this useless but tremendous money making program!? (instead of Dogbert).

True story. One of my clients told me that the only improvement they got out of a similar program was to save money by reducing the number of deodorant cubes in the urinals.

After 12 Months of intensive training for all executives the Vice President of Restaurant Re-Engineering was pleased to announce the first improvements due to the MacSigma program.

"We have found a way of reducing the variation of our fries by having the growers send us only square potatoes. (this now matches the square fish that go into the MacFillet-O-Fish)

After 23 minutes 99.7% of our customers have finished their meals so our seats automatically tilt back after this time to drop them on the floor and let the next customers sit.

We now have the same number of "in" doors as "out" doors as studies have confirmed that as many people leave our restaurants as enter it.

Our recycling program now includes the toys in the MacHappy Meals which are retreived from the bins out the back."
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Old 11th March 2005, 07:28 PM
Marc's Avatar

Posts: 24,324
GE is making money where the money is - Training...
Old 11th March 2005, 07:32 PM
Wes Bucey's Avatar
Wes Bucey

Posts: 10,959
Come on, Sidney. It's a couple more weeks until April Fool's Day. You are starting too early!
Old 11th March 2005, 08:21 PM
Howard Atkins's Avatar
Howard Atkins

Posts: 2,914
IS it because
The move in the U.K., where McDonald's has operated for 30 years, came after its 770 restaurants saw their profits drop 71% to GBP23.6 million in 2003.
Old 12th March 2005, 08:12 AM
Marc's Avatar

Posts: 24,324
I see they're reducing 'serving size'. I wonder if the meals will be cheaper...

It's been so long since I've eaten at a McDonalds I can't even remember when I last was in one (or at a drive-through). I have never been a big 'fast food' fan, but I particularly disliked McDonalds. In part that is because of their marketing strategy towards kids.

With respect to six sigma at McDonalds, I wonder how and where they will apply six sigma. What processes and measureables. Or - What part of six sigma (as a 'package') they will adopt.
“The two organizations are filled with smart people who like to learn from each other in service to our customers. That’s what Six Sigma is,” said Karin Teglia, corporate vice president in finance.
Well, now I know what Six Sigma 'is'...
Old 12th March 2005, 10:46 AM
Jennifer Kirley's Avatar
Jennifer Kirley

Posts: 5,543
My impression of McDonald's decision-making is from reading about the infamous hot-coffee lawsuit. This lawsuit is a target of endless derision, but I recall reading McDonald's quality manager had testified his employer had received over 700 complaints about the coffee's temperature--about 10 degrees over industry standards. The customer received 3rd degree burns and three reconstructive surgeries, and sued only when McDonald's Inc. refused her requests to help with the medical bills.

Given that and, for example, its failure to respond to public pressure to switch its cooking oils in a timely way, I'm not surprised if "Micky-D's" believes a big effort like 6S is necessary to respond to customers effectively and increase demand and market share.

Old 12th March 2005, 10:51 AM
Wes Bucey's Avatar
Wes Bucey

Posts: 10,959
In Reply to Parent Post by Marc

I see they're reducing 'serving size'. I wonder if the meals will be cheaper...

Well, now I know what Six Sigma 'is'...
Does your knowledge of Six Sigma derive from the fact they will "create value from the 6S initiative" by giving the customers less for the same price? It certainly could reduce costs - I wonder if the customers will be smart enough to see they've been duped? Hersheys and Mars continue to shrink the size of the candy bars - do they have 6S guys, too?

I knew Ray Kroc and sometimes drank camel's milk (beer) with him after Shrine meetings. He really was not comfortable with targeting kids - he just wanted to offer cheap, simple, fast meals and not have to worry about complicated instructions for the workers. I do know he preferred steak to hamburger when we ate. What a shame his original premise of burgers and shakes got so complicated.

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