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IOA Analysis, Jollibee Restaurant, Operation and Process Management Module

Technical Report · June 2019

DOI: 10.13140/RG.2.2.32347.62243

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Paula Jean Ventura Söderberg

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 Student: 1735120

Online Assignment Submission

Student ID Number: 1735120

Programme of Study: Master in Business Administration

Module: Operation and Process Management

Assignment Title: IOA Analysis, Jollibee Restaurant

Date and Time of Submission: December 19, 2016, 11:30

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Introduction

The focus of this study is specifically analyzing the service and queuing problem of a Jollibee outlet
in Negros Occidental, Philippines. This study is to provide discourse diagnoses of these problems.
The focal point of this analysis is the data from the 3rd week of October, the highlight of the
MassKara festival in Bacolod City, Philippines. Where approximately 500 customers (walked-in
transactions) dined at Jollibee during the peak period of 10am to 2pm. They received around 30
customers complain within that period. (Source: Lampon, Jollibee Bacolod Manager) We can cay
that the situation was unavoidable during the day of the highlight of festivity in one of the biggest
city in the Philippines and the outlet is full of people.

The polar diagram Performance Map

Cost of burgers
shows comparison Jollibee’s burger
price are cheaper
Cost
of Jollibee from the than Mc Donalds

top food chain Mc Donalds

is faster
restaurant in the with its
Speed Dependability
volumes
market today in and be;er
supply
order to exhibit chain.
Jollibee’s market
Market Almost the
standing. Only slight same however,
difference Mc Donalds
with the Quality
Flexibility have fewer
quality. Both menu that
are fasBood Jollibee.
chain

Organizational background:
Jollibee Restaurant, Philippines is a large company
with 2,933 stores worldwide outside the Philippines
with branches in: USA (26), Vietnam (32), Brunei
(11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1
each), “firmly establishing itself as a growing
international QSR player”. (Jollibee, 2016) Jollibee is
3-market segment, the other 2 are: Greenwich
(pizza-pasta fastfood segment) and Chowking
(Oriental Food Market). Its latest acquisition and
master franchise are: Red Ribbon (cake and pastry) Jollibee outlet. Photo from: https://insideretail.asia/wp-
content/uploads/2015/08/Jolibee.jpg Accessed: December 10,
Mang Inasal (Barbecue chicken) and Burger King, 2016

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Philippine outlets (Jollibee 2016) Filipino taste being introduced to the world with its distinct “pinoy”
taste incorporated to some of the rice menus is one of the competitive advantage of Jollibee. As
Philippines had been colonized by different races such as: Spanish, Chinese, Americans, Malay
(to name the few) it is easy to capture foreign taste buds with its richly flavored rice menus and
Americanized burgers. As of January 2015, Jollibee, with system-wide retail sales received 82.1
Four V’s
billion pesos for the fiscal year 2011.

Jollibee orders varies from outlet to

Volume
Low High outlet with volume with approximately

Variety 1,000 and more burgers a day

High Low
(Philippine outlet based) Jollibee
Variation
offers rice menus aside from the
High Low
usual burgers, pies, pasta, chicken
Visibility
High Low and beef meals. They serve different
menu during breakfast: during 6 am
Mc Donalds has
34,492 worldwide to 11 am.
While Jollibee has
3,000 stores
worldwide

Picture of Jollibee menu and prices provided by Lampon (Jollibee Bacolod Manager)

Methodology
The theory, tools, techniques and concepts that I am going to use with my analysis are: process
map, to be able to illustrate some of the main restaurant operations in both counter and kitchen,
supply chain management, in order to analyze the operational requirements and if they are being
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met. Perception mismatches, which, is also essential on how to further, improve customer’s
satisfaction and bridge the gap between Jollibee and the customers. Bullwhip effect and
bottleneck, to determine the sources of the problem and how to rectify them. Little’s law: Cycle
time and through put time is used to determine the processing period. Precedence diagram is used
together with process map to illustrate the cycle time and methods of the different processes.

ANALYSIS
Performance Objectives

Workforce: Jollibee crew works per shift basis in Bacolod oulet, here is an example:
6:00am to 10:00am Counter: 6 Kitchen: 9 Dining: 5
10:00am to 2:00pm Counter: 8 Kitchen: 11 Dining: 7
2:00pm to 6:00pm Counter: 7 Kitchen: 11 Dining: 6
6:00pm to 8:00pm Counter: 7 Kitchen: 10 Dining: 6
Jollibee Bacolod is a 24 hours outlet, schedule above selected for time of operation when most
people visits.

Service Process Map: Jollibee counter operation/receiving order process based from Six Sigma
material, 2016 and from figure 5.3, Operational Management (Slack et al) as well.

Below is the process map for kitchen. Only 3 of the many menu was selected for illustration.
The precedence diagram (Slack et. al) shows the estimated and fix cooking time of food.

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Process Map combined with Student: 1735120
Precedence Diagram Student: 1735120

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Supply Chain Management

Jollibee Restaurant is a fastfood restaurant and returns of customers are the source of the
company’s success. Sales are coefficient on the velocity of service. Jollibee’s “order qualifier”
(Shulver, 2016), which is fast service and quality product during short lunchtime at peak periods, is
the target of the daily operation. During this time as well, is when most of the customer’s complain
arises when target is not met. When the customers are rattling famished, speed of service is the
top priority and the demand focus process. The restaurant’s operation is vulnerable the most at
that period. The crucial reality of the fastfood service is that when there are alternatives, customers
have the tendency to go elsewhere next time due to the delay of orders thus increase risks of
lower dependability and affecting company’s reputation.
Jollibee’s Mission is to “To serve great tasting food, bringing the joy of eating to everyone”. Their
unique menu combination is one of the company’s strength as well as Jollibee’s prices are low,
which cost/price range from $0.9 to $2, variety of menu is high and service is good. For the fact
that Jollibee is a Philippine food chain always compared with Mc Donalds, to be able to survive the
international market and keeps on growing means that, as a whole, Jollibee fulfills its Supply Chain
Management efficient in its operations and processes. This explains the relations of the supply
chain principle (Slack et al) in this aspect that performance of the operation of this study “does not
necessarily reflect the performance of the whole supply chain” (Slack et al). On the contrary, “The
lifeblood of any restaurant is the return customer.” (Kharasch, 2010) if many are not satisfied, this
is a risk to the business. It costs a fastfood chain a lot more than the hourly rates a restaurant is
saving by cutting back one employee when one customer is not satisfied and does not return.
(Scardapane, 2010) Jollibee’s long-term plan at operation follows the same instructions daily. It is
almost the same as the other fastfood chain like Mc Donalds which in fact originated the assemble
line system that Jollibee uses as well.
The flexibility of Jollibee is low especially peak hours, as they could not cope up with changes in
circumstances such as level of demand thus affecting the dependability. (Slack et.al)
“Unsatisfactory customer relationships can be caused by requirements and fulfilment perception
gaps” (Slack et.al) In order to understand the perception mismatches, Jollibee has to understand
what the customers needs.

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Table below based from Figure 7.6 Operational Management (Slack et. al) as well as based
from customer’s complain and reactions during the focal period of this study:

Requirements
Perception gaps
Friendly Fast
service Service

Jollibee performance gap

Jollibee Customers
Jollibee improvement gap

Efficient Slow
Fulfillment
Perception gap

Customer’s wants friendly service yet at peak hours, they get

anxious when they have to wait long in both queue and orders.

Bull whip effect:

One of the difficulties Jollibee faces is high variability. (Slack et. al) Menu choices are many which
makes it difficult to project and control the unexpected increase of orders. When kitchen get
delayed in providing products at the food rack, the delay of order arise. Unfortunately, those
cooking time they can control are those, which have longer cycle time as well.
The queueing and delays of orders which are linked to bull-whip effect. (Slack et. al) The changes
in the process affecting the operation. The cashier avoids delay on his/her part by trying to avoid
wrong punch. Cashiers are trained for fast key-in technique in which they could punch a 1 menu
order in less than 5 seconds, usually, customer’s decidedness refer whether they have their orders
selected before they approach the counter, therefore, a fast service can be rendered in 3 minutes
providing all orders at the same time during counter transactions which will save a lot of time
waste. The counter’s intent of shorter throughput as much as possible is important.
In order to control the queuing situation, Jollibee deploys extra crew, to take advance ordering from
customers usually starting from the 5th or 6th person in line. If how many will depend on the
manager’s decision. The extra crew advance calls the customer’s order to the counter. This is to
notify the kitchen for food preparation and so customers can go away from the counter. The so-
called counter runners’ assists cashier in preparing drinks, relays advance call and follow-up items
from the kitchen, which could fasten the process of order preparation.

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C1 = 15
customers

Counter runners

C2 = 19
customers

C3 = 14
customers

C1 C2 C3 C4
C4= 17
customers

*Photo of a Jollibee counter

Busy arrival started at around 10am with

distribution of a wider dispersion at the time period
of 10am to 12pm with approximately 60 seconds
arrival time in between. But it is difficult to
Fixing exact “throughput time” (Slack et. al) per
customers is inefficient and undistinguishable
especially peak period due to high variability.

determine if the walk-in flow was consistent within

that period.

Throughput and Cycle time of the counter

Yet, we can assume that based on the numbers provided above, we can calculate the throughput
time per counters as follows:

Throughput time = work in process X cycle time. The work in progress here is the customer.
C1 = 15 (customers) X 3 (min) = 45 minutes for all the customers of counter 1 be served.
C2 = 19 X 3 = 57 minutes
C3 = 14 X 3 = 42 minutes
C4 = 17 X 3 = 51 minutes
We can already see that if the cycle time per customer is 3 minutes, at long queue, customers
have to wait for a long time to get their meal.

When extra crew for advance calls were deployed, let’s assume that:

Throughput time = work in process – advance call X cycle time =

C1 = 15 – 7 = 8 X 3 = 24 minutes
C2 = 19 - 9 = 10 X 3 = 30 minutes
C3 = 14 - 5 = 9 X 3 = 27 minutes
C4 = 17 - 8 = 9 x 3 = 27 minutes

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The throughput time is down to almost 45%, yet within 30 minutes of waiting is still a long time for
hungry eaters.

Variable Arrival Time: Counter

In order to show the variable arrival time within 60 seconds arrival time, here is based from figure
5.15, Operations Management (Slack et al) from Counter 1 of the first 10 customers:

C1
Customers Arrival time Start of Activity End of Activity Wait time
1 10:00 10:00 10:03 0 minutes
2
10:03 10:03 10:06 3 minutes

3 10:06 10:06 10:09 6 minutes

4
10:09 10:09 10:12 9 minutes

5 10:12 10:12 10:15 12 minutes

6 10:15 10:15 10:18 15 minutes
Already
7 10:18 10:18 10:21 18 minutes long
8 waiting
10:21 10:21 10:24 21 minutes time

9 10:24 10:24 10:27 24 minutes

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10:27 10:27 10:30 27 minutes

Kitchen
Through put and cycle time
In order to determine the cycle time of the 3 products in the process map on the page 5, we
determine the cycle time of Burger:

Burger
Throughput time = work in process X cycle time. The work in progress here is the burger.
10 pcs is 1 batch
C1 = 10 orders
C2 = 15 orders
51 orders
C3 = 14 orders all in all
C4 = 12 orders
Work in progress 51 orders X 3 minutes cycle time = 153minutes or 2.55 hours to serve all
orders

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Yet Jollibee prepare in advance and cooking continuously therefore within this figure let us say that
25 Burgers were already prepared:

25 advance cooked – 51 current orders = 26 burgers remaining, therefore: 26 customers are

informed that their burgers will be followed up.
Yet the cycle time in volume orders stretches.
As 1 griddle can accommodate 10 patties, here to illustrate as follows:
10 patties = 10 minutes or 600 sec
Buns = 10 X 17 sec = 170 sec or 2.8 min
Toppings = 10 X 10 sec = 100 sec or 1.6 min
Wrapping = 10 X 3 = 30 sec
10 X 10 sec = 400 sec or 6. 6 minutes for the remaining process
Overall total: 1300 sec or 21. 6 minutes
Buns are being toasted while patties are being cooked therefore:
1300 sec – 170 sec = 1130 sec or 18.3 minutes approximately for all 26 burgers to be finished.
Hence 1 griddle can accommodate 10 Burgers, therefore:
26/2 = 13 Burgers

10 burgers can be delivered in first come first serve basis in 9.15 minutes, therefore, the first 10 of
26 customers will get their orders within 9 minutes, the rest of the remaining could be served within
the same cycle time with a total waiting time of approximately 18 minutes.

Planning and control

Jollibee keeps track of the inventory in the kitchen requisting or the distribution center ships the
necessary items on a regular schedule instead of waiting for a request from the restaurant.
Supplies like patties, spaghetti sauce and fries are mass produced in a factory and then frozen.
Restaurants store frozen foods in big
Some of the common product shelf life:
refrigerators and re-heat to cook them when
ü Bread: 2 days
needed which requires the same amount of ü Vegetables on the working table: 2
hours
cooking time always. (Wilson, 2016) Going
ü Cooked meat: 15 minutes
back to the cooking time, there are exceptions ü Frying oil: 3 days
in food like patties which are tricky to cook as
griddles do not have built-in timers. Spaghetti sauce as well do not have a fix heating time since it
depends how frozen the sauce is. All food is FIFO basis. Jollibee follows the same instructions for
cooking, dressing and packaging the food as long term process.

Conclusion:
Lack of projection, long throughput time, uncontrolled bullwhip effect and high variability are the
causes while queuing and delays of service occur. As this study is applicable during all peak and
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unexpected rise of customers, the process became uncontrollable, therefore, leads to customer
dissatisfaction. The wide menu variety of Jollibee is an advantage yet also affects the throughput
time in all operations. When all orders being accepted at the same time during counter
transactions, there is no projectivity in advance notifying the kitchen ahead of time, therefore,
delays are unavoidable.

Recommendation:
Jollibee could invest for an automated order machine like
this one located near the entrance of Max Restaurant,
Sweden, The function is to key-in orders and skip the
queueing and wait for the number to appear on the screen
for customer’s to claim at the separate counter intended for
picking up advance orders only, therefore, customers can
just locate a seat right away providing customer options,
aside from the counter registers. This is a very effective tool
beneficiary to both counter and kitchen and will solve the
queueing and delay as well as will give the kitchen proper
projection prioritizing what to cook which will save a lot of
time. Therefore, the outlet is ready in any sudden customer
Max, Sweden order machine. Photo from
https://www.yelp.com.au/biz_photos/max-
rise up (bullwhip effect) and be able to control the situation.
stockholm-
5?select=2t3QK6hn92ZO8lYtL_uvkg
Another solution is to avoid crew in running like headless
Accessed: December 19, 2016
chickens at the counter or kitchen. Many time wasted
seeing crew crisscrossing in their stations. What I did when I was a Fastfood Restaurant Manager
similar to this, is that, I give time to know the strength and weaknesses of my crew. I put the fast
ones at the counters and kitchen, and the slow ones at the dining. As most customer’s attention is
at the counter when they are waiting for their food. I also assign example at the griddle 2 or 3 crew
where the space is more and the items are individual handling. Most of the orders are burgers,
therefore, the outlet needs more burger, so I needed more crew to cook them. I as a Manager
stays at the kitchen during peak hours. I also assist in cooking. I could see what is missing in the
kicthen and could assign tasks systematically at that moment in quick decision-making avoiding
time waste. During the hectic operation, tasks needs to adapt to the situation, therefore, I could not
state specifically since most of the decision making arise in focusing on the demand. I just needed
to know who is to where. The cooking methods with cycle time of course are the same as standard
procedures. I maximise the use of “counter runners” (the term is changeable depends on the
fastfood chains). While the customer is ordering, the counter runners listens and already prepares
the items mentioned. They also keep tracks on the ordering while notifying the kitchen right away.
My cashier almost never leaves the register unless needed. I have this notion the moment the
cashier leaves, the customer feels abandoned. So while the customer is giving out his/her orders,
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the counter runners are already working on it, therefore, when the customer is ready to pay, his
order is ready for carrying. These counter runners are also trained cashier so they can take turns
when needed. Dining crew mostly knows what to do, yet they are also flexible, I just re-assign
them in stations, which needed more workforces. One could not perfect an operation. Yet, the
target is to minimise the problem as much as possible.

References:
Not all are usage are listed in reference, most from Operations and Process Management, Slack et. al, 2015

Jollibee, (Online) Available from: http://www.jollibee.com.ph; Accessed: December 05, 2016

Little Law, (Online) Available from:
https://bookshelf.vitalsource.com/#/books/9781292017877/cfi/203!/4/4@0.00:37.9 Accessed: December 16,
2016
Process Map, Operation Strategy and Management, Slack et. al 2015
Six Sigma Process Map (Online) Available from: http://www.six-sigma-material.com/Process-Maps.html
Accessed: December 15, 2016
Max, Sweden order machine. Photo from
https://www.yelp.com.au/biz_photos/max-stockholm-5?select=2t3QK6hn92ZO8lYtL_uvkg
Accessed: December 19, 2016

Jollibee outlet. Photo from: https://insideretail.asia/wp-content/uploads/2015/08/Jolibee.jpg Accessed:

December 10, 2016

Fast food fast (Online) Available from: https://www.qsrmagazine.com/ordering/fast-food-fast Accessed:

December 17, 2015

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