BA 105

Group 1 l Basa, Bernal, Fernandez, Gomez, Lim, Lucas, Ogremin, Raymundo

Activity No. 1​: Operations Management Overview

The table below summarizes and differentiates the operational procedures and
strategies implemented by two selected nearby milk tea outlets/ restaurants:

Operational Factors Pasta and Pani Wittea Moonleaf Tea

Order Taking On average: 1 minute; order is On average: 1 minute; order is

written on a prepared sheet
entered into a computer system;
codes are written on cups to
identify customer’s flavor and
variation choice; employees
encourage customers to take
certain flavors and/or discount

Customer Payment The shop uses a lock box for The shop uses an electronic cash
payment collections; cash basis machine to receive payments;
mode of payment cash basis and G-cash modes of
payment

Drink Preparation Most of the time, the one who
takes the order also prepares
the drink; on average it takes 3
minutes to prepare a drink;
preparation visible to customers
Most of the time, the one who
takes the order also prepares the
drink; sometimes two employees
split the function; on average it
takes 3 minutes to prepare a drink;
preparation visible to customers

Drink Serving The customer will get the order The customer will get the order at
at the counter once called the counter once called

Delivery Not capable of delivery Capable of delivery

Menu Diversity Also offers food such as pasta Diverse flavor selection for the
and rice meals; has diverse milk milktea; food served were mostly
tea flavors (traditional, pastries
innovative mixes)

Availability of Some ingredients and milk tea Almost all variants are available
Ingredients/ Variants flavors were not available on on any given day
selected days

Employee On most given days, 1 2-3 employees running the whole

employee can run the whole store
stall
 Facilities 1 table, 4 chairs; relatively
tightly spaced; fancy lights as
decoration; electronic cup
sealer; small menu board
Established shop; multiple tables
and chairs; comfort room; air
conditioned; electronic cup sealer;
large menu board; stockroom;
security cameras

Inventory No personalized cups; No information

inventories are purchased
mainly by the store owner

Others Location: inside UP; customers Location: along Maginhawa Street;

are mostly UP dormer students variety of customers from students
to workers; store hours from 10
am to 12 mn

Conclusion
The difference in operational decisions and strategies between the two milk tea shops
most likely lies in the fact that the shops differ in terms of scale (size-wise). Pasta and Pani
Wittea is a small stall located in Area 2, UP Diliman, while Moonleaf Tea has many branches in
Metro Manila, the subject branch being strategically nestled along Maginhawa Street (a famous
food street which is in proximity to big universities as well). This difference in scale, in one way
or another, affects the operational decisions that they implement.
As can be seen from the table above, for example in order taking, Moonleaf Tea utilizes
a computer system, while Pasta and Pani Wittea still uses a system of manual writing. One
might say that the use of electronic system is more superior than the other; however,
cost-benefit analysis might reveal that it may not be that worthy for a small shop like Pasta and
Pani Wittea. Another aspect of interest is the availability of certain variants on a given day in the
two milk tea shops of comparison. Due to its size and capability, Moonleaf can offer several
flavors and add-ons on any given day. Their menu board is lush with a list of drinks to choose
from to suit the taste buds of even the most dainty customers. On the other hand, Wittea could
only afford to serve a limited number of flavors on a given day.
Despite the gap in the quality of serving, it is worth noting that the price of the products
of the two shops are almost shoulder-to-shoulder. Wittea is the only milk tea shop within the
campus, and students will still buy their milk tea even if it would often mean taking out the order
due to limited seats and even if they are the only flavors available and even if the pricing is
slightly off-key. In the case of Moonleaf, making the prices affordable, coupled with a nice
location, a preened store layout and design, and a refined serving system translate to a
constant influx of customers, which means more revenues to cover their higher expenses.
Overall, we can see how certain factors or instances tailor the operational decisions and
strategies of a specific business entity. The two shops presented above illustrated that certain
strategies and procedures work best for a specific business condition. Thus, we can conclude
that operational decisions aren’t one-size-fits-all, which means businesses must realize what
factors to work with and which situations must be most prioritized.
galing ganda output
Other factors to consider:
Sa moonleaf constant yung customers, unlike Wittea na pwedeng matumal sila in a day----
pwede dahil limited lang yung market ng Wittea dahil UP students lang sila; moon leaf strategic
malapit sa universities tapos yung mahihilig pa magfood trip, so parang large customer
“database”??

In some operational procedure, hindi naman nahuhuli yung Wittea; parang nakaframe naman
siay sa usual milktea shop
I guess yung ibang decisions niya ay beneficial sa kanya given yung size niya; for example wala
yung ibang variants na costly yung ingredients kasi nga di ba hindi naman sure kung may bibili
nun sa isang araw, I guess maganda din itanong whether they strategically consider which
flavors ang mabenta on a given day/month; konti lang employees kasi di naman need na
maramig.

Si wittea nag ooffer ng slush or iced na choice tho pero si moonleaf nagooffer naman ng size
option

Pasta & Pani Wittea

- Nagseserve din sila ng food
- Not all add ons are available (black pear, egg pudding)
- Di na nagdedeliver, kulang sa tao (2 lang sil
- Order taking: 1 minute
- cffhhrepszlslsxlxlxkPay as you order
- 1 table and 4 chairs
- 3 minutes: already served, average
- Walang sariling design ng cup, bumibili lang
- Serving: customer picks it up
- Current manpower only works for small orders. Can’t handle sudden surge of orders
within the same time frame as relatively smaller orders
- They have all the proper equipment to speed up and complete the processing fffv vbbb.
- They don’t update their menu on which menu items aren’t available atm

Moonleaf Tea
● Order taking
○ less than 1 minute
○ has menu board (most probably categorized, hindi ko kasi nalapitan)
○ hindi mandatory na umorder once you enter the store; pwede tambay muna
○ does the cashier/vender guide the customer with varieties to choose from, o
bahala na lang magsabi ang customer? If mag-ask yung customer, but if not,
then wala din
○ does the cashier/vender ask if the customer would like to have add-ons after the
latter has stated his/her order? YES
 ○ sa ibang branches ba ng moonleaf eh babae rin ang cashier/vender? nooo
● Customer payment
○ pay as you order
○ doesn’t accept credit cards
○ has cash register
○ GCash
● Drink preparation
○ 1 - 3 minutes preparation time
○ separate worker who prepares the drink
○ may equipment din to speed up the process
○ preparation visible to the customer
○ hindi ko sure kung press and flow lahat ng ingredients or kung may ingredient na
kailangan pa ng konting transformation
● Serving
○ the customer will have to stand and get his/her order sa counter when his/her
name is called out/pwede ring hintayin na lang sa counter
○ sinusulatan ng code plus name ng customer yung cup
○ walang tissue
● Delivery
○ nagpapa-deliver din daw

Additional:
- location is adjacent to other food shops, with free wi-fi, pwede rin yatang mag-charge
- store layout = homey decorations, medium-spaced mga tables, airconditioned and
scented, with cr, may stockroom/personnel’s room yata behind the counter (hindi ko
sure)
- 6+ tables (hindi ko nabilang)
- hindi lahat ng tables and chairs magkakamukha
- store opens at __ and closes at __