Mcdonalds Supply Chain

April 5, 2018 Business

There are few people in the world that do not know McDonalds, or recognize the famous Golden Arches. The success of the McDonald’s corporation is founded on the consistent quality of its hamburgers. Have you ever wondered why McDonald’s hot, fresh products taste the same everywhere in the world? It’s McDonald’s unique purchasing system and the relationship McDonalds shares with its dedicated suppliers that ensure the quality of products in every restaurant. At McDonald’s they have a saying, “One Taste Worldwide”, which is only possible because McDonalds sets strict requirements, hich are the foundation of the production standards for the entire McDonald’s supply chain. Consistency of product quality is one of the top priorities for McDonald’s and they are on the leading edge of research and development in order to set new standards in quality. In addition because the McDonalds delivery program is so highly developed, they can trace any individual meat patties back to the supplier’s specific batch. To become one of the suppliers to McDonald’s restaurants, a company has to supply proof of its high operation standards. Cleanliness, consistency nd traceability are three key factors that a supplier is judged on. Located in Linkoping, Sweden Farlo was founded ten years ago for the sole purpose of making McDonalds hamburgers. Farlo produces roughly one million hamburgers per day exclusively for McDonald’s in both Sweden and Finland. For Farlo, the need for quality, consistency and traceability influences each level of production. OVERALL SYSTEM OBJECTIVES To improve production quality and capacity while lowering operating costs by streamlining and integrating plant monitoring and business systems. Farlo is required to prove that it meets

McDonald’s high quality requirements by documenting the quality and traceability of each item produced. In the past this has proven to be costly and inefficient using the existing manual systems. The challenge was to implement a business solution that was totally integrated, with zero Farlo – Supplier to McDonald’s McDonald’s meats – 100% quality, guaranteed risk of lost or compromised data storage. Farlo also wanted to replace the manual system with a solution that would improve efficiency and provide a direct interface for employees, all the while ensuring the consistent quality of their amburgers. TRACEABILITY IS A PRIORITY Traceability was the most important requirement of the new system. Extensive quality measures and systems require that each box of hamburgers could be traced through a complex supply chain to component sources. “In our business, traceability is very important,” says Barbro Bengtsson, project leader at Farlo. “If something should happen, we need to trace all source components to ensure that only the highest quality beef reaches our customers. ” AN INTEGRATED SOLUTION CitectSCADA integrates data from a Mitsubishi PLC controlling the production process and a

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Jeeves Manufacturing Execution System (MES). Elcontrol AB, a Swedish Citect Integration Partner, presented the CitectSCADA solution. One of the reasons CitectSCADA was chosen is because it allows updates to the latest version without risk to production or quality. CitectSCADA was also very straightforward to use, and everything Farlo needed could be integrated in the CitectSCADA package. CitectSCADA and the MES work together in the same network-domain, and on the client side, the run side by side in several workstations. Farlo has linked the production process to the administation system in a completely new ay. “As we wanted to use two systems in parallel, compatibility was very important,” says Bengtsson. “The two systems and their suppliers are communicating efficiently and smoothly with each other…everything has worked very well so far. ” REAL-TIME PERFORMANCE THROUGH-OUT THE BUSINESS Data acquisition rates from the controllers are less than 1 second, as are the data transfers to the MES, effectively delivering real time data to the enterprise. CitectSCADA communicates using stored procedures – a fast and secure process that ensures the integrity of the MES database. The CitectSCADA Server nables other applications to trigger events in CitectSCADA through standardised interfaces. When an event is triggered, CitectSCADA takes a snapshot of the process data and logs it to the MES database. By using CitectSCADA to link production processes to the administration system, Farlo has achieved the highest level of traceability of all McDonalds suppliers in the world. As a result McDonalds is looking to implement systems in other plants. MONITORING THE PROCESS While the MES is responsible for stock overview, traceability, fat content registration and the recipe for the pre-blend, CitectSCADA onitors the production machines and plant temperatures. The production machine monitoring includes mixing of the meat, forming the hamburger patties, monitoring the recipe for the final mixture, and sending batch information back to the MES for traceability. Farlo places its orders for meat via the MES. This information is entered automatically into the MES and then transferred to CitectSCADA to give the grinding operator a complete overview of the raw materials available. McDonald’s requires two types of mince, each with different fat content and McDonald’s BELOW: The production lines at Farlo. equire that the fat content is only allowed to deviate by less than one percent. CitectSCADA automatically allocates the amount of fat and lean minced meats, and the correct blend ration is then calculated based on required fat content values. The two minces are combined to produce a mix with the required fat content. This mix is then run through one of two lines that forms the mince into 45 gram and 113 gram hamburger patties. CitectSCADA supervises the mixing process for each batch and transfers the batch results, including fat content and quantity, to the MES. CitectSCADA optimizes, xecutes and reports these results for each individual batch. Fat data is manually entered into the MES and sent to CitectSCADA for analysis using CitectSCADA’s Statistical Process Control (SPC) algorithms. The operator performs random size and weight checks on the patties, and enters the data into CitectSCADA. CitectSCADA updates the MES with batch start and stop times, batch number, and production time and date information. Each box of patties is uniquely marked with the time and date of the batch. This identification is used to track each patty until it lands on a customer’s bun, giving Farlo the raceability McDonalds so highly value. Leveraging the Benefits of an Integrated Process Monitoring Solution The combination of CitectSCADA and the MES operate smoothly as a single integrated solution. Farlo employees enter information and work with CitectSCADA and the MES directly, giving them more information and control in their workplace. The integrated system allows the employees to become involved at a higher level. “We gain a lot from an integrated system which encompasses the whole process,” says Barbro Bengtsson. “The information flow creates a holistic approach and increases fficiency as well as reliability in our daily work. ” CitectSCADA has been used to automate many manual operations in the plant, and as a result has improved quality by eliminating potential human errors, minimized the delays in business information systems and has significantly improved production performance. BELOW LEFT: Graphs BELOW RIGHT: Diagram of the Farlo system CitectSCADA version 5. 20 Operation system WinNT4. 0 Server & WS Network Equipment TCP/IP network (mostly 3COM hardware) Number of CitectSCADA tags 500 Number of CitectSCADA digital alarms 50 Number of CitectSCADA trends 40

Number of CitectSCADA graphics pages 15 Number of CitectSCADA IO, Trend and Alarm Servers 1 Number of Windows NT File Servers 1 Number of Windows SQL File Servers (Dual Pentium 200, 128MB RAM) 1 cluster (768 MB RAM) Number of CitectSCADA Display Nodes 11 Number of I/O Devices 1 Observed response time 0. 035 sec Observed time to call up a graphics page (with all display data) < 0. 5 sec Observed time to call up an historical trend page (with all display data) < 1 sec IO, Trend, Alarm and Report Server CPU Usage 5% Statistics ABOVE: Packing the McDonald’s hamburgers

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