I.

Background of the Study

McDonalds is the worlds leading global food service retailer with over 36,000

locations in over 100 countries. Its first store was opened on May 15, 1940 in United

States of America. McDonalds expanded its business in the Philippines in September

27, 1981. Its first store was in Morayta, Sampaloc Manila. Philippines was the 29th

country to franchise McDonalds. It was George T. Yang who first franchised and

opened McDonalds here in the Philippines. More than 80% of McDonalds

restaurants worldwide are owned and operated by independent local business men

and women.

Until today, McDonalds is one of the remarkably fast food chain in the

Philippines. There are currently more than 500 McDonalds branches nationwide.

McDonalds is now a multibillion-Peso company that continues to serve Filipinos all

over the country with Kenneth S. Yang as the President and Chief Executive Officer.

Since McDonalds is well expanded within the country, McDonalds has a

standard system which applies to all branches. In the present ordering system of

McDonalds, when customer enters the store, the customer goes directly to the

counter where they need to give their orders. There are only three counters that

receive the orders of the customers. If there is long queue for the three counters, other

McDonalds crew will help getting the orders through writing it in a piece of paper

and giving it to the customer. When its the customers turn for ordering, the

customer will just present the paper with their order for the McDonalds crew to enter

in the monitor. After getting the order, customer will pay for the balance and wait

beside the counter to get their orders.

 The researchers gathered the data for simulating in Mcdonalds Bayleaf

Intramuros, Manila branch. The simulation model for Mcdonalds will focus on the

lunch time starting from 11 am until 1:00 pm, since it is the peak hours of the fast

food chain.

Flow chart is presented to clearly visualize the system of McDonalds.

 Table 1.1 Process Flow Chart of the Current System

RESPONSIBLE PROCESS REMARKS

START

Customers enter the

store

Is there a long
No
queue in the
counter?

Yes

Orders will be asked

McDonalds
Crew and written in a piece
of paper

Customers wait for

their turn
Cashier will
receive their
Cashier Customers give their orders and
orders to the payment, and
counter give exchange.

A
 A

McDonalds Orders are

Crew processed

Customers wait at
the side of the
counter

Customers get
their orders

Customer leaves
the counter

END

II. Statement of the Problem

McdonaldsBayleaf customers during 11:00 am to 1:00 pm experienced 332 failed

arrivals because of long queue and no available seats.

III. Objective/s of the Study

1. To assess the current ordering system of McDonalds Bayleaf.

2. To know whether three counters are enough to accommodate all customers.

 3. To use ProModel simulation to simulate the current and proposed system.

4. To propose a solution to accommodate all customers.

IV. Assumptions

The assumptions for this study are:

Customers Inter-Arrival Time is Normally Distributed.

Service Time is Logarithmic-Normally Distributed.

The probability of customers going to counter 1, 2 and 3 are 0.2, 0.4, and 0.4,

respectively.

Customers will order upon entering the system.

V. Analysis of the Present System

a) Model Description

The researchers use stopwatch to time the three (3) processes:

1st lap the waiting of customers in queue

2nd lap the ordering of customers

3rd lap the waiting of customer for order

At the same time, researchers are recording the total number of customers

entering during that time frame. It resulted to 404 customers for 2 hours.

Upon entering, customers have three (3) counters to choose from. The first two

(2) counters are for 2 or more orders while the 3rd counter is the fast lane counter which

means only 1 order. The three (3) counters are represented by a solid conveyor line. As

for the entrance and exit, it is represented by an entity spot.

b) Task

The task of the model is to determine if Mcdonalds can accommodate all its

customers from the hours 11:00 am up to 1:00 pm. The model will simulate the original

model using the gathered data by the researchers. The result of this will be the basis for

the proposed actions whether to add another counter or removed a counter, etc.

c) Model Diagram

Figure 5.V.1 Model Diagram

Figure 5.V.2 Model Diagram (Simulation)

 Three brown tables are considered as counters 1, 2 and 3. The lines on the

left of the tables are the queues where customers fall in line. The entity spot on

the left is the entrance and the entity spot on the right is the exit.

d) ProModel Simulation of the Present System

i. Location

Figure 5.V.3 Locations

There are three counters with one capacity each counter. Since

there are three counters, there will also be three queues with infinite

capacity since customers are not limited to a certain number. First come,

first served is used because the policy observed in all fast food chains.

ii. Entities

Figure 5.V.4 Entities

There will only be one entity which is the customer. It has a speed

of 50fpm because customer walks through the system.

iii. Arrival

Figure V.5 Arrivals

There will be 1 customer per arrival with 404 occurrences because

the population is 404. The arrival of the customers is normally distributed

with 0.29 min as mean and 0.012 min as standard deviation.

iv. Processing and Routing

Figure 5.V.6 Processing and Routing for Entrance

The first one will have an entity of Operator which will come from

the Entrance of Mcdonalds then no operation. For its routing, there three

(3) routes 1. Operator will go to Queue 1 with a probability of 20%

because this counter is seldom open 2. Operator will go to Queue 2 with a

probability of 40% 3. Operator will go to Queue 3 with a probability of

40%.
 Figure V.7 Processing and Routing for Queues

For Queue 1, 2, and 3, they all have to wait a logarithmic-normal

distribution of mean 2.59 minutes and standard deviation of 1.76 minutes.

The output will still be Operator then destination will be Counter 1, 2, and

3. The rule is always First 1.

Figure V.8 Processing and Routing for Counters

For Counters 1, 2, and 3, they all have to wait a logarithmic-

normal distribution of mean 1.06 minutes and standard deviation of 0.89

minutes. The output will still be Operator then destination will be Out. The

rule is always First 1.

 Figure V.9 Processing and Routing for Out

For the Out or the Exit, they have to wait a logarithmic-normal

distribution with a mean of 1.73 minutes and standard deviation of 1.55

minutes. The output will still be Operator then the destination is Exit the

system. The rule is always First 1.

e) Results and Analysis

Figure V.10 Simulation Result

The simulation time is set by 2 hours because the study is only limited to 11:00

am until 1:00 pm. After performing the simulation, there was a note that says there were

entity arrival failures due to insufficient capacity. This means that based on the gathered

data, Mcdonalds was not able to accommodate all its customers during the time frame.
 Figure V.11 Entity Summary

Based on the Entity Summary, the total exits of the system is only 57

customers. This is low considering that the population of customers going in

Mcdonalds is 404 customers for 2 hours.

Figure V.12 Failed Arrivals

For the Failed Arrivals, there are a total of 332 customers who changed

their minds and just dined in to other fast food chains.

Figure V.13 Location Summary

The figure above shows the summary of each location. It shows that the

longest time that the customer spends are in the Queues. Customers also fall in

line often in Queue 3 because its total entries is 33 customers with a percent
 utilization of 35.35%. On the other hand, Queue 1 shows the least number of

customers falling in line and it also has 7.34% utilization.

VI. Plan of Action

Model Design of the Proposed System

a) Model Description

Since the Mcdonalds Bayleaf originally has 4 counters in the chain, the researchers

recommend to open the other 1 counter to accommodate all the customers going in, especially

between the peak hours 11:00 am to 1:00 pm.

The simulation model is just the same as the present system, the only change was the

addition of the last counter that is always close.

b) Task

The task of this model is to simulate if the Mcdonalds can now accommodate all its

customers from 11:00 am tp 1:00 pm if four (4) counters were open. The model will still

simulate using the gathered data by the researchers.

 c) Model Diagram

Figure VI.1: Model Diagram of the proposed system

As seen in the figure, it is just the same as the original model but only with 4

counters open. It can also be seen that the customers had a long queue every counters.

d) ProModel Simulation of the Proposed System

i. Location

Figure VI.2: Locations

Adding an additional counter in the proposed simulation model needs extra queue line

and a counter in the model. There are a total of four counters, four queues and an entrance and
exit entity spots. The researchers have also reached the maximum number of locations set by the

ProModel.

ii. Entities

Figure VI.3: Entities

There is only one entity even in the proposed system and that is the customer.

iii. Arrival

Since the entity is only the customer, it is the only one that has the arrival with the

frequency of normal distribution that is the same with the original system, as well as the

occurrences.

iv. Processing

Figure VI.4: Processing and Routing

 The processing and routing is just like the original model with an additional counter. The

entity (customer) will enter the system and will go to the counter with the shortest queue. The

customer has four choices because the system has already four counters.

e) Results and Discussion

Figure VI.5: Simulation Results

It can be seen that after running the proposed simulation model, there are no more

failed entity arrivals in the system, meaning that the system accommodated all the

customers arriving in the system.

Based on the entity summary and failed arrivals as well, it can be inferred that the

system accommodated all the ongoing customers because there are zero arrivals and the

total exits were increased.

Figure VI.6: Failed Arrivals

 Figure VI.7: Entity Summary

VII. Conclusion

After creating two simulation models using the data gathered by the researchers. After

simulating the original system of the McDonalds Bayleaf Intramuros branch, it is concluded

that there are failed entity arrivals meaning that the current system could not accommodate

all the customers arriving in the peak hours which is from 11:00 am to 1:00 pm. Hence, the

three counters is not sufficient to serve all the incoming customers within the two hour

simulation time.

The researchers proposed a system that could accommodate all the customers arriving in

McDonalds. The McDonalds branch in Bayleaf Intramuros originally has 4 counters but

three counters were only being utilized during peak hours and only two counters if it is not.

With this, the researchers decided to simulate a model that will utilize all the four counters

and check if it can accommodate all the customers entering the fast food chain.

After simulating the proposed model, there are no more failed entity arrivals which mean

that the proposed system can suffice all the entities that entered the model. Also, the total

exits were increased by a certain amount which adds up to the proof that the proposed system

is really better than the McDonalds current system.

VIII. Appendix

(mins) Entrance to Queue Ordering Waiting to Getting the Order Total Elapsed time
1 1.47 0.78 0.97 3.22
2 0.8 0.55 1.28 2.63
3 0.31 0.9 0.77 1.98
4 4.17 0.45 1.32 5.94
5 3.4 0.55 1.2 5.15
6 1.64 0.92 3.1 5.66
7 0.27 1.02 1.15 2.44
8 0.54 0.47 1.27 2.28
9 1.38 0.42 0.93 2.73
10 0.29 1.14 0.35 1.78
11 1.84 0.57 0.93 3.34
12 1.24 0.72 1.14 3.1
13 0.88 1.05 1.12 3.05
14 1.13 0.75 1.32 3.2
15 1.08 0.92 1.27 3.27
16 0.3 0.98 1.2 2.48
17 0.8 0.95 0.78 2.53
18 0.25 0.75 0.62 1.62
19 2.45 1.52 1.32 5.29
20 4.37 1.6 0.72 6.69
21 2.67 0.65 1.75 5.07
22 0.48 0.32 0.92 1.72
23 0.88 1.1 0.92 2.9
24 3.27 0.75 0.32 4.34
25 1.79 2.25 4.07 8.11
26 4.01 0.77 1.3 6.08
27 1.46 0.57 1.29 3.32
28 0.87 0.57 0.22 1.66
29 0.59 0.59 1.35 2.53
30 1.74 0.84 1.15 3.73
31 3.12 0.34 1.78 5.24
32 2.8 0.8 3.43 7.03
33 5.46 0.35 0.64 6.45
34 4.53 1.95 3.48 9.96
35 3.35 1.1 4.63 9.08
36 4.28 0.6 0.65 5.53
37 0.9 0.73 1.8 3.43
38 3.65 0.42 3.2 7.27
39 1.07 1.38 0.59 3.04
40 7.51 0.72 1.84 10.07
41 2.73 0.61 0.68 4.02
42 1.7 1.4 1.29 4.39
43 4.93 1.32 0.82 7.07
44 1.15 1.94 2.44 5.53
45 1.43 0.58 1.37 3.38
46 4.87 0.4 7.08 12.35
47 1.7 1.22 0.67 3.59
48 2.58 0.45 0.75 3.78
49 0.32 0.92 2.38 3.62
50 0.47 0.52 1.75 2.74
51 4.58 1.43 1.08 7.09
52 1.05 0.67 1.32 3.04
53 2.13 0.4 1.62 4.15
54 5.95 1.1 2.52 9.57
55 2.5 1.58 1.62 5.7
56 5.92 0.85 0.28 7.05
57 0.87 2.63 2.78 6.28
58 0.37 0.48 1.32 2.17
59 1.99 0.53 1.19 3.71
60 0.87 0.47 1.4 2.74
61 1.06 1.05 3.11 5.22
62 0.3 0.79 1.37 2.46
63 3.52 0.63 1.25 5.4
64 2.68 0.84 0.99 4.51
65 3.26 0.53 0.79 4.58
66 2.98 0.81 0.92 4.71
67 1.08 0.81 1.23 3.12
68 3.35 0.67 0.91 4.93
69 2.54 0.88 1.24 4.66
70 0.98 0.62 1.65 3.25
71 1.44 0.92 1.88 4.24
72 1.78 1.07 1.52 4.37
73 3.43 0.65 1.5 5.58
74 5.6 0.54 1.26 7.4
75 2.22 1.11 0.94 4.27
76 2.17 1.66 0.44 4.27
77 2.09 1.06 0.67 3.82
78 1.88 0.58 1.43 3.89
79 0.87 0.69 1.33 2.89
80 4.9 5.83 9.67 20.4
81 3.58 4.53 5.65 13.76
82 3.71 4.06 5.35 13.12
83 2.51 3.21 4.05 9.77
84 1.53 1.87 6.17 9.57
85 1.18 0.63 2 3.81
86 2.2 2.41 2.48 7.09
87 3.6 1.06 0.72 5.38
88 8.87 0.72 1.22 10.81
89 3.82 1.28 1.03 6.13
90 4.75 0.55 0.86 6.16