Borneo - Cabili - Calderon - Latorre - Manansala - Sevillano

TheNet.
Com Cyber Café

Production and Operations Management
Presented to
Institute of Accounts, Business and Finance

Far Eastern University
Sampaloc, Manila
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
By
Borneo, Hillary Ann B.
Cabili, Winalyn
Calderon, Janysse Clarence A.
Lattore, Christian Dave
Manansala, Anne Margaret L.
Sevillano, Rhenzi Kyle N.
December 2019
FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

PRODUCTION AND OPERATIONS MANAGEMENT SY 2019
TheNet.Com Cyber Café
BORNEO | CABILI | CALDERON | LATORRE | MANANSALA | SEVILLANO
TABLE OF CONTENTS
I. Introduction………………………………………………………………... 3
II. Value Chain………………………………………………………………... 4
2.1 Pre and Post Production
2.2 Sustainability
III. Measuring Performance…………………………………………………. 5
3.1 Value of a Loyal Customer
IV. Operation Strategy………………………………………………………... 6
4.1 Business Strategy
4.2 Order Qualifier
4.3 Order Winner
4.4 Competitive Advantage
4.5 Attributes
V. Goods and Service Design………………………………………………. 7-8
5.1 Service Delivery System
5.2 Service Encounter Design
5.3 Servicescape
5.4 Service Recovery and Guarantee
VI. Supply Chain Decision…………………………………………………….9-11
6.1 Break-even Analysis
6.2 Location Decision
VII. Process Selection and Design Analysis………………………………..12-15
7.1 Process Flow Chart
7.2 Table of Work and Process Flow
7.3 Job Description of Workforce
VIII. Facility and Work Design………………………………………………….16-19
8.1 Service Location and Layout
8.2 Servicescape design and layout
IX. Forecasting and Demand Planning………………………………………20
X. Capacity Measurement……………………………………………………..21
XI. References……………………………………………………………………22
XII. Student’s Profile……………………………………………………………..23-25

I. Introduction
TNC Cyber Cafe formerly known as TheNet.Com Internet Cafe is an innovative

computer shop established along N. Roxas St. Quezon City. TNC Cyber Cafe caters
primarily to web surfers and web gamers, providing prime quality services to students
and professional alike. After just a year, TheNet.Com established six (6) more
branches, located in different strategic locations in the metro. Since many of its clientele
have embraced the warm hue and ambience of the said internet cafe, not to mention
the speed and quality of every computer provided. A lot of its own client have come
forward to ask, if they could franchise TheNet.Com. That is the reason why
TheNet.Com was opened for franchise. To date, with its more than 40 branches in
operation, TNC Cyber Cafe is now among the fastest growing internet cafe in the
Philippines.

II. Value Chain
2.1 Pre and Post Production
The pre-production process started since July 12, 2010, when the first branch of
TNC Cyber Café was introduced in the Philippines. Started with their first branch at La
Loma, Quezon City they have now 140 branches nationwide. They primarily focus on
franchising TNC Cyber Café to provide comfort, convenience and fast internet
connection to its customers.
As to its post-production process, with new technology being innovated and more
competitors are appearing, aside form Cyber Café, TNC also provides services like
Premium Café, High Grounds, and Grounds Zero.
Logistics Operations Marketing Service

and Sales
-Supply -Maintenance -Provides
Schedule -High Brand Services
Identity Aside from
-24/7
-Equipment Operation Computer
Acquisition -Low Hourly
Rate Rental
-Inventory -Promotions -Customer
Control Assistance
2.2 Sustainability
Through continuous research, TNC Cyber Café doesn’t meet the three pillars of
sustainability namely, economic, environment, and social. Hence, TNC does not have
the necessity to obtain sustainability.

III. Measuring Performance
3.1 Value of a loyal customer
TNC Cyber Cafe aims to provide the best service for all, giving players an
enjoyable experience whichever branch, they go. They want to make sure that their
quality never wavers, putting the customers first. As the popularity of the Internet
continues to grow at an exponential rate, easy and affordable access to the information
superhighway is quickly becoming a necessity of life. TNC Cyber Café provides the
local community with the ability to access the Internet, enjoy a cup of coffee, and share
Internet experiences in a comfortable environment. People of all ages and backgrounds
will come to enjoy the unique, upscale, educational, and innovative environment that
TNC Cyber Café provides.
It is a critical reminder of the fact that TNC Cyber Café is a service business. The
success of their business depends upon the quality of the service they offer and
delivering that service consistently. TNC Cyber Café is dedicated to delivering this
quality service. The company also help franchisees establish their own TNC branch the
way that all TNC Cyber Cafes are set up, to ensure a great and reliable service that will
surely make customers satisfied with their experience.
The popularity of the Internet is growing exponentially. Those who are familiar
with the Internet are aware of how fun and addictive surfing the Net can be. Those who
have not yet experienced the Internet, need a convenient, relaxed atmosphere where
they can feel comfortable learning about and utilizing the current technologies. TNC
Cyber Café seeks to provide its customers with affordable Internet access in an
innovative and supportive environment.

IV. Operation Strategy
4.1 4.2 4.3 4.4 4.5

Business Order Order Winner Competitive Attributes
Strategy Qualifier Advantage
TNC seeks to TNC Among the fastest TNC has a great Experience
provide its cybercafé growing internet initiative for TNC Attributes – the
customers with provides fast café in the Esports. preferred choice
affordable Internet and stable Philippines. of thousands of
access in an Internet They hold a Filipino gamers
innovative and Connection. They have a high tournament that and business
supportive product quality in could help owners alike.
environment. TNC Cyber computer showcase the
Cafe caters equipment which talents of new
Adopting to the primarily to is the basic needs players and teams
competitive growth web surfers of every user. in the world of
in cybercafe and web esports.
industry. gamers. Provide an
advancement and Has centralized
They make sure Has many development of access such that
that their quality branches Philippine esports. Ezlink account.
never wavers, along metro
putting the manila. They offer a promo
customers first. of 10 pesos per
Offers an hour during night
By providing a affordable hour only.
novice friendly price for
environment, TNC students and
hopes to educate loyal
and train a loyal customers.
customer base.

V. Goods and Service Design
5.1 Service Delivery System

TNC Cyber Café or also known as TheNet.Com Cyber Café, aim to provide the
best service for all, giving players an enjoyable experience whichever branch they go.
They make sure that their quality never wavers, putting the customers first. TNC Cyber
Café rises above the rest, they’ve made 147 branches around the Philippines to make it
easier to visit by costumers in any locations. TNC Cyber Café also give lots of promos
just to make customers satisfied and make them visit again.
In terms of goods and service quality, ViewPaker Company who provided the computer
units giving the customers of having a fast and reliable Computers. Seats are adjustable
to let them choose what position they would like.
5.2 Service Encounter Design

TNC Cyber Café quality management is focused on consistently improvement
and keep the loyalty of many costumers. In addition, they have made a “centralized
access”, if you have an EZlink account, you can always use your account no matter
where you are and keeping your load safe.
5.3 Servicescape
TNC Cyber Café offers variety of foods and beverages in affordable cost inside
the shop, seats that will make you comfortable and monitors that has anti blue light that
helps users protect their eyes. TNC Cyber Café also gives customers (players or
researchers) a fast and stable Internet connection. They also cater customers, who are
willing to wait, a bunch of newspapers to read, a sofa to stay and relax, a cold place for
all playing and waiting customers because of three big aircons and it has also a wide
and odor-free Comfort Room.

5.4 Service Recovery Guarantee
TNC Cyber Café guarantees customers if having a trouble on pc, customers will
directly moved to another well-conditioned pc. If there’s a problem on the internet
connection and electricity malfunction, TNC Cyber Café will give a bonus extra load to
every costumers account who are involved in order to compensate them to make them
feel so important and to resolve the problem quickly. They also give a free extra load to
customers who are loyal and who reached the quota of using or by buying loads in their
accounts.

VI. Supply Chain Decision
6.1 Break-even Analysis
Breakeven Analysis
Assumptions:
Units Hrs Per day Annual
Price per Hr: 20 50 24 1,200.00 4,800.00 360 1,728,000.00

Vc per Hr: 4
CM/ Hr 16
BEP 1,290,000.00
CM/units 16.00
BEP qty 80,625.00 *The business needs to have 80,625 hrs each year to breakeven
Sales Price 20.00
Breakeven Sales 1,612,500.00
Breakeven Sales 1,612,500.00
Variable Cost 322,500.00
Contribution Margin 1,290,000.00
Fixed Costs 1,290,000.00
Contribution Income -

Assumptions:
Assumptions: Annual Monthly

Fixed costs
Rent expense 180,000.00 15,000.00
*Depreciation Expense 330,000.00 27,500.00
Salaries and wages 780,000.00 65,000.00
Total Fixed costs 1,290,000.00
Depreciation Expense:
Units Price Total Cost Types Life (yrs) Annual Dep
PCs 50.00 25,000.00 1,250,000.00 Equipment 5 250,000.00
Computer Tables and Chairs 5.00 27,000.00 135,000.00 Furniture & Fixtures 3 45,000.00
Aircons 5.00 35,000.00 175,000.00 Equipment 5 35,000.00
Total 330,000.00

6.2 Location Decision
The place is ideal because it is accessible to the public, along the highway and
the target clients are mostly students. These are plenty of competitors in this area,
however, since TNC offers quality services, high speed internet connection and above
standard hardware and software system, it will most likely attract client of all ages. And
due to its accessibility to the public, it is more visible to high foot traffic, people just
strolling the area and even passengers of public utility vehicle will see the internet cafe.

VII. Process Selection and Design Analysis
7.1 Process Flow Chart
Customer starts her rental and

advice stafff of the number of
hours needed
Customer
Enters Proceed to
Computer the Finish tasks,
Advice need
shop, tellsthe designated for saving of advice staff
service she that she's Pay Amount
station documents
needs ready to end
and printing
her rental
Station
Ask staff to
assist the
Server
customer
Greets Checkno. of hours
customer and used and atell Collects cash
advise her customer amount payment
station no. to be paid
Computershoppersonnel
Staff
Staff assist
customer to
Station
PrintingServices
Check saved
documents
and print

7.2 Table of work and process flow
Starting up and Internet Café Business
PLANNING
 Formulate and idea on how you want to run your café
 Investigate the area in which you hope to open your café, focus on the demand
and competitors in the area.
 Estimate how much money you will require as initial investment for computer
equipment, furniture, software and amenities
o Prices of equipment can be found in the internet, catalogues of office
supply stores
o Do not choose area where residents have high income level, chances are
they have their own computers at home
 Create comprehensive business plan. From short to long term operational costs
o Business concept
o Market Research
o Marketing Plan
o Operations Plan
o Financial Plan
STARTING UP YOUR BUSINESS

 Estimated how much startup capital you’ll need. Using your financial plan,
determine your projected annual expenses and gross income
 Look for Investment money if needed using outside resources
 Find a good location for your café, a place near the university are or near food
cafes or hotel
 Choose a name for your business. Make it unique in identity
 Obtain necessary permits and licenses
 Set up the Hardware and software

o Choose your preferred ISP provider
o Design the layout to fit space
o Purchase all the necessary equipment
o Set up your internet café
o Manage your software effectively
 Develop a plan for staffing your café, consider hours of operation, wages and
applicable overtime
 Interview and hire employees
 Promote your internet café in the neighborhood through fliers and more
importantly in the social media
 Listen to and incorporate feedback from your customers.

7.3 Job Description of Workforce
Internet Café Staff/Attendants

 In charge of catering customer’s request
 Knowledgeable in computers, filing, data encoding, troubleshooting
 Assist customers in basic questions of how to or where to
 Must know how to operate computers, install software, troubleshoot hardware
issues
Internet Café Supervisor

 Oversee operational activities in the internet shop
 Manage cash inventory
 Assist customers when they have trouble or questions using computer software’s
 Provide services such as encoding, printing, downloading and all other
operations
 Keep accurate records of logs and inventories
 Provide accurate report on the number of hours consumed per customer
 Report any serious problem the internet café is facing to make sure that
immediate action will be done to continuously be operational.

VIII. Facility and Work Design
8.1 Service Location and Layout
New and improved TNC Cyber Cafe believes that services strategically located at 816
R. Papa, Sampaloc, Manila, 1008 Metro Manila is implemented to attain the growth of
computer café users. TNC Cyber Café R.Papa production facilities have a highly
structured layout.

8.2 Servicescape Design and Layout
TheNet.Com was established along N.Roxas St., Quezon City. It is an internet café that
caters primarily to web surfers and web gamers, providing prime quality services to
students and professionals alike.
They aim to provide the best service for all, giving players an enjoyable experience
whichever branch they go. They make sure that our quality never wavers, putting the
customers first.

Branches of TheNet.Com Cyber Café
Currently, TheNet.Com has 147 branches nationwide and is among the fastest growing internet
café in the country.
These branches are scattered among cities of Caloocan, Manila, Quezon City, Paranaque,
Batangas, Laguna, and Tagaytay.

Events

IX. Forecasting and Demand Planning

X. Capacity Measurement
Whether it was to pass the time browsing the web, doing some work or chatting
to relatives, internet cafes are making a comeback after the internet vastly improved
through time. Back then, web 1.0 was slowly developing and access was limited and
slow. For a small fee, internet cafes provided the equipment, connection and coffee.
The demand is there; The major clientele group would be the vibrant student
population. Manila is home to a great number of educational institutions, both
neighborhood high schools as well as sprawling campus universities. All these students
need internet to research and study. By providing fast and reliable internet, the cafe
would serve as an ideal place to focus on independent study or to study as a group.
You could even jump on the recent PC bang trend and offer a multiplayer gaming area.
In terms of location, they maximize their sites near schools. This is because students
prefer travelling a short distance to their local internet café.
After just a year, TNC Cyber Café established six (6) more branches, located in
different strategic locations in the metro. Since many of its clientele have embraced the
warm hue and ambience of the said internet cafe, not to mention the speed and quality
of every computer provided. A lot of its own client have come forward to ask, if they
could franchise TNC Cyber Café. That is the reason why TNC Cyber Café was opened
for franchise.
To date, with its more than 40 branches in operation, TNC Cyber Cafe is now
among the fastest growing internet cafe in the Philippines.

XI. References
 (2019) TNC Cyber Café, Retrieved from https://tnc.com.ph/
 (2019) Pinoy Entrepreneur. TNC Cyber Café. Retrieved from https://www.pinoy-
entrepreneur.com/2010/10/31/thenetcom-internet-cafe/
 Pinoyentre(October 2010). TNC Cyber Café. Retrieved from https://www.pinoy
entrepreneur.com/2010/10/31/thenetcom-internet-cafe/.
 Ho, Robin (2018). Great initiative for TNC Esports. Retrieved from
https://scorum.com/en-us/cybersport/@robin-ho/great-initiative-for-tnc-esports
 Pinoyentre (Oct 2010). TNC Cyber Café. Retrieved from https://www.pinoy-
entrepreneur.com/2010/10/31/thenetcom-internet-cafe/
 No author. No date. TNC. Retrieved from https://tnc.com.ph/#
 Svala, Helga D. (n.d). Internet Café Business Plan. Retrieved from
https://www.bplans.com/internet_cafe_business_plan/market_analysis_summary_fc.php

XII. Students Profile
Name: Hillary Anne B. Borneo

Age: 20
Course: BSBA-IA
Birthday: May 19, 1999
Name: Winalyn Cabili

Age: 20
Course: BSBA-IA
Birthday: March 6, 1999

Name: Janysse Clarence A. Calderon
Age: 20
Course: BSBA-IA
Birthday: August 9, 1999
Name: Christian Dave Latorre

Age: 23
Course: BSBA-BM
Birthday: March 22, 1996

Name: Anne Margaret L. Manansala
Age: 20
Course: BSBA-IA
Birthday: October 17, 1999
Name: Rhenzi Kyle N. Sevillano

Age: 20
Course: BSBA-BM
Birthday: June 25,1999


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TheNet.

Com Cyber Café

Institute of Accounts, Business and Finance

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

TNC Cyber Cafe formerly known as TheNet.Com Internet Cafe is an innovative

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Logistics Operations Marketing Service

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

3.1 Value of a loyal customer

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

4.1 4.2 4.3 4.4 4.5

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

5.1 Service Delivery System

5.2 Service Encounter Design

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

6.1 Break-even Analysis

Price per Hr: 20 50 24 1,200.00 4,800.00 360 1,728,000.00

Sales Price 20.00

Breakeven Sales 1,612,500.00

Breakeven Sales 1,612,500.00

Variable Cost 322,500.00

Contribution Margin 1,290,000.00

Fixed Costs 1,290,000.00

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Assumptions: Annual Monthly

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

7.1 Process Flow Chart

Customer starts her rental and

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Starting up and Internet Café Business

STARTING UP YOUR BUSINESS

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Internet Café Staff/Attendants

Internet Café Supervisor

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

8.1 Service Location and Layout

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Name: Hillary Anne B. Borneo

Name: Winalyn Cabili

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Name: Christian Dave Latorre

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Name: Rhenzi Kyle N. Sevillano

FAR EASTERN UNIVERSITY MANILA –INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

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