Operation Management Analysis : Gardenia Bakeries,

Jollibee Commissary and Monde Nissin Corporation

A Research Paper Presented to

Professor Villanueva
Mapua Institiute of Technology

in partial fulfillment
of the requirements in
Operations Management
(MGT131)

By:
Claudine Espidillon
Dann Monsour Landingin
Jonathan Ray Marcos
Elizabeth Rivera
Denniel Senato

Gardenia Bakeries
Brief History
Just like some of the big companies today, Gardenia started as a small business.
It is only an in store bakery in Singapore. Fortunately, due to their high demands and
market share, they had opened a commercial bakery at Pandan Loop in March 1983.
Gardenia today is already the market leader on baking industry in different countries like
Singapore, Malaysia, Thailand and Philippines. Gardenia started operating here in the
Philippines in 1997. With the help of the QAF Limited and Gardenia International Ltd,
they had its first bakery plant in the Biñan Laguna, Philippines. Year after, they started
its operations using the modern-automated equipment come from well-known bakery
equipment suppliers from Germany, Holland, UK and USA. Today, Gardenia is the
largest and leading manufacturing company of bread in the Philippines. Gardenia
already created a top of mind awareness to everyone.
Mission
Our mission is to serve consumers with the best quality assortment of great-
tasting bakery and related food and beverage products, with world-class manufacturing
facilities and an efficient nationwide distribution network, thereby providing a fair return
on shareholder investments.
Vision
Our vision is to become the premier company in the baking industry and the
related food and beverage industry, known and emulated for our best quality products
that delight the consumer. It is the pride of every employee, investor, trade partner and
stakeholder.
Core Values
Customer Driven- We always put the customer first in everything we do.
Innovation- We constantly initiate change and encourage creativity
Teamwork and Professionalism- We are one company, one team working together
professionally.
Integrity- We uphold honesty and objectivity in the things that we do.
Excellence- We relentlessly pursue continuous improvement and aim for the highest
standard in our work.
Stewardship (Malasakit)- We treat company resources with pride as if they are our own.
Gardenia’s mission and vision statement is well and clearly defined. Having
efficient network and modern technology they want to give people variety of high-quality
bread products. Gardenia wants to satisfy their stakeholders and also its shareholders.
Moreover, Gardenia wants to be in the top of the minds of people. Gardenia wants to
position in people’s mind that they are the best in the baking industry. In making
decisions and operation they always think of its customers first. Gardenia wants to
achieve their mission and vision with integrity, excellence, innovation and with their
teamwork, professionalism and stewardship. From our point of view, we believed that
Gardenia already achieved its mission and vision. In spite of that, they still continue to
pursue improvement that will lead to more customer satisfaction.
Organizational Chart

Quality Management
Gardenia has its own Quality Policy:
” We, at Gardenia Bakeries Philippines, are committed to delight consumers by
providing best quality bakery products.
We aim for excellence through innovation and continuous improvement of our
processes, products and services, ensuring compliance with our customers’ and
applicable statutory and regulatory requirements.
We are steadfast in our commitment that quality begins with each and every one of us. “

Quality is one of the major factors that customers consider on buying a product.
Usually the product that has the greatest quality is the best in the eyes of everyone. In
Gardenia’s policy, they use their knowledge and excellence to continue to improve and
innovate their products, processes and services. They do research and development to
improve their internal processes in order to meet customer expectations and
satisfactions. Moreover, in order for them to have high quality products they conform to
the standards set by different regulatory requirements.
In addition, Gardenia is the first manufacturing company to use G-Lock. It is a
unique resealable and reusable plastic that seals the bread´s freshness. It has
information written to it like “best before” and the suggested retail price of the product. It
does not only maintain the quality of the product but it also helps the consumer
choosing the best product to choose. It is already known worldwide that Gardenia’s
products are fresh, has nutritive value, taste good and soft. It even exceeds the
Department of Health’s recommendations about their product. In their production, we
have noticed that before the loaves go to the slicer, there is a machine that separates
loaves that are not perfectly shaped or molded. They really make sure that only the best
loaves are delivered and sold to the market. Another proof that they serve quality
breads is their metal detector. It detects products with defects before it will go to delivery
department.

Lastly, Gardenia already received excellent achievements from different award

giving institutes. Gardenia has been awarded with International Organization for
Standardization ISO 9001: 2000 certifications from 2003 to 2009 and has now upgraded
to ISO 9001:2008. It is an award given to a company that has world class Quality
Management Systems (QMS). Part of the Quality management systems are the design,
development, manufacturing and the distribution of the products. This certification
further assures that consumers only get the highest quality products in the market. They
also receive an award for adherence to the systematic approach in the identification,
evaluation, and control of food safety standards from HACCP (Hazard Analysis and
Critical Control Point). Another award given to Gardenia is the Annual National
Consumers’ Award (ANCA) as the “Outstanding Bread Manufacturer” for five straight
years. It was given to Gardenia because they continually strive for excellence in the
products that they make, and render the best service at all times.

Potential Problems and Solutions

There are only two potential problems that can be stress with regards to
Gardenia’s Quality management. First, their workers do not wear gloves. With that,
there is a big chance that their breads will be contaminated. Second, their workers keep
on having a group conversation. The problem with that is they don’t use their mask
while talking. As they talk, maybe some of their saliva can get through their breads.
 To improve their quality management, Gardenia must provide their workers the
right gloves that must be used inside their production. Those gloves must fully cover
their hands in order to prevent contamination. They must also give rules to their workers
that when they do conversations with each other, they still must use their mask to cover
their mouth. If their breads got contaminated, it affects the life of many people with
regards to their health.

Human Resource Management

Gardenia’s production site has only few workers. Their total workforce for their
production is 72 while in sales is 18. Majority of the work is being done by their high
technology machines and equipment. The workers are just there to operate the
machine. In addition, it is their job to monitor efficiently the process done by their
equipments and machine. Even though those machines are controlled by computer, it’s
still capable of making defective products. For example, Queenie Comple, Gardenia’s
Quality Assurance Assistant, make sure that only loaves that are in good condition can
go through the slicer section. In order to maintain their efficient and effective process,
Gardenia only hires professional individuals. Their human resource management is
headed by Ms. Leth G. Catalan. Every individual who work in their company are well-
trained.
Potential Problems and Solutions
There are potential problems that can be cited in Gardenia’s production with
regards to its human resource management. First is that some of their worker’s are not
utilized. They don’t maximize the capabilities and abilities of their workers. For example,
in their production, some of the workers just transfer the tray of dough from one
machine into another. Second, their some of their workers are like making a group
conversation while they are working. If they are talking about their products, then it is
alright. But if they are talking about things unrelated to their work then that’s not an ideal
employee. In order for them to be efficient, they must be really focused and committed
to their work and also they must learn to avoid distractions.
Gardenia can solve those potential problems in order for their production to be
more efficient. First, if the job of their workers does not maximize the benefits it can get
from their workers then they must do job expansion. Gardenia must add more variety to
their job. Secondly, Gardenia must give incentives and work motivation to their workers.
That can boost up their commitment to work. With that, they can easily do their jobs
efficiently and effectively.

Inventory Management
The process below shows the flow on how bread produced. But it just only a few
processes for the inventory of the product (bread), the whole process in making a
product discussed on the topic of process design. Process below starts from
packing/packaging on which their packaging system included the color coded, price,
and batch no. and expiration date of the bread. Normally, breads expire within 1 week to
10 days. After of packing, it goes to metal detector to ensure that the bread does not
include any iron while it is being cooked. Employees put the finished product on the tray
and bring it to dispatch area. Dispatch area is not far away to the production area. In
fact, it’s just only a wall with a small hole square shaped separated the two areas.
Production area starts at 3’oclock in the morning. Finally, breads can now be distributes
to the designated area by the truck with designated truck code. See dispatch area
layout. Truck code signifies the area on which the bread delivers. Generally, breads
deliver to retail stores and supermarkets.

Gardenia normally used first in, first out method in distributing their product
(bread). In fact, Gardenia can produce 650,000 loaf breads everyday and can distribute
it all. In case that they do not distribute it all, excess breads will be give as food for
fishes. They are the number 1 bread factory who led to making of bread here in our
country, Philippines.
DISPATCH AREA LAYOUT

The layout above was the dispatch area of the Gardenia looks like. Each tray
consists of 8 loaf breads. It has a signage of truck code for employees to know where
they will put the tray of breads.

Process and Capacity Design

Gardenia as we know it is one of the leading bread producers in the country. As a part of
the Ten Decisions of Operations Management, the Process and Capacity Strategy, let’s
take a closer look in Gardenia.
The over-all process inside Gardenia is done not by man but by the computers from
making the bread to packaging. Through this technology, the whole process follows a
continuum. There are three factories in Gardenia that are based on their capacity in
production namely: 2k for 2000 breads, 4K for 4000 breads and 6K for 6000 classic
breads. Classic breads are made on day-shift while flavored breads are made on night-
shift. This paper delves deeply on the 6K plant of Gardenia.
There are 18 processes that raw materials undergo until they are distributed as a final
product. These are the following.
1. Preparation of Ingredients- Basically, this stage is the preparation of the
ingredients needed to form a finished product. This first stage is managed by
computer in order to have the exact amount of the ingredients to be used such as
flour, water and yeast. Flour that came from barley, as a major ingredient is
exported from Germany.
2. Sponge Mixing- The mixed ingredients are then transferred to rectangular
trailers.
3. Fermentation – This is the most important stage because it is where the quality
like texture of the bread starts. The sponge made from the previous stage is then
fermented by 4 hours in a temperature and humidity controlled room supervised
by a computer. The dough is allowed to rise to release the carbon monoxide.
4. Dough Mixer- In this stage the fermented sponge is then mixed with other
ingredients to form dough. The ingredients are based from what flavor or type
bread must be produced.
5. Divider- The mixed dough is then transported through a conveyor belt to be
divided to the mass of a loaf.
6. Rounding- The dough then is rounded by kneading the dough first to trap the
carbon dioxide.
7. Checkweigher – The divided and rounded dough is then weighted by a computer
in order to check the right weight needed for each bread loaf.
8. Intermediate Proffer – This stage allows the dough to rest for 10 minutes.
9. Baking Oil Spray – While doing the stages above the pans that are to be used in
the baking process is sprayed with oil to prevent bread from sticking to pan.
10. Moulding – This stage removes gas from the dough and then shaped it to a
flattened circle and then cut to final form and then proceeds to the pan. The pans
are then lidded in order to control the rectangular shape of the bread.
11. Final Proofing – The pans are proceeding to a giant overhead box in which the
dough inside the pan is allowed to rise furthermore at a controlled temperature
and humidity by a computer. After this, the dough is ready for baking.
 12. Oven-Baking – a tunnel like oven with a length of 33 meters bakes the dough at
even heat of 200 Celsius for 20 minutes.
13. De-lidding – as the pans are conveyed, the lids are removed magnetically. The
breads are then released from the pans and the pans are then cooled to be used
again.
14. Spiral Coolers – The twin enormous towers are the coolers of the bread freshly-
baked. The breads starts from the base of the first tower going upward then
transferred to the second tower going downward. The capacity of each tower is
3000 loaves. Each rotations of each level of a tower takes 2 minutes per round
thus making it 96 minutes per cooling of the loaves.
15. Packaging System – after the loaves are cooled, the partially finished products
undergo quality control then to an automatic bread slicer. After slicing the loaves,
they are packed and put with G-lock, where the batch number and expiry date
are printed. The packed products are then placed to a metal detector to ensure
the safety of the consumers. The Finished products are then placed to dispatch
area to be deliverer at 3 o’clock in the morning with more than 150 trucks.
As a whole, the process inside Gardenia uses a Product-focus strategy. The ideas
concerned in this strategy are Changes in Attributes such as grade, quality, size and
thickness. This idea is present in the production of the loaves of breads. Gardenia
ensures the quality of each product. Also, Gardenia has a Long run process in which, it
can only be achieved by a product-focused strategy. Another idea is that Gardenia, as a
result of the research and development, gained the Mass Customization because of the
variety of their products ranging from classic breads to flavored rolls.
As observed, the facilities are specialized to each stage of the product form raw
materials to finished products. But through this, each of the specialized equipment, the
planning and controlling of the production is easier added to it the computerized system
that is why there are only 16-20 personnel are needed in the production. Also the
specialized equipment’s utilization is maximized because the equipment is repetitively
doing the process for each product. Added, the whole process has another strategy that
can be observed and that is the Repetitive Strategy wherein we can relate to the
process of transportation of the product through a conveyor belt.
The distribution of the finished product is transported through delivery trucks all-over the
country but the company was not able to clearly state whether those places from
Visayas and Mindanao are delivered by land or water. The assumption in this situation
is that the delivery trucks travel by water because of Low cost.
Service and Product Design
The popular classic white bread of garedenia has a net weight of 600 grams. It is
big to make a lot of servings. It is enrich with vitamins, minerals, high protein flour, fine
granulated sucrose, purified water, , pure vegetable shortening, skimmed milk powder,
common salt, dextrose, baker’s yeast, dough conditioners, and yeast nutrient .Made
from Uncle Slocumm’s American recipe that’s really soft, great tasting,smells good and
nutritious. Contains essential vitamins such as Vitamin A, B1, B2, B3, C and minerals
like Calcium, Iodine, Iron and Folate. Plus it’s zero transfat and cholesterol free,do not
contain artificial flavoring or coloring so everyone can enjoy theclassic bread without
feeling of guilt , it is healthy , good for all people of all time ages.
Gardenia guarantee the quality and freshness of Jumbo 600 assuring us that they
exceeds the minimum requirement of phillipine food regulation. Jumbo 600 also has
other certificates such as ISO 9002 proving the quality of the product and the “halal”
stamp stating that the Muslims can eat this bread means this product do not contain
pork and pork related product. About the package, on this bread package, we can find
all the nutrition information, ingredients, guarantees, the contact information, stamps
and certificates. The consumers can easily know about the product by just looking at the
package. The package has bright and contrast colors (red, blue and white). These three
colors represent the American flag showing the appreciation for the American baker
Horatio “Sye” Slocumm. There is also the barcode so that the producer can keep track
of stocks.
Gardenia also has different allied products. These allied products are grouped in
their respective categories. First is the Healthy Licious Bread. It has six varieties that
mainly promotes health benefits with our well. This is compose of the High Fiber Whole
Wheat Bread ( available in 600g and 400g packs), Honey Oat Loaf (400g), Slim ‘n Fit
Wheaten Bread (350g), High Calcium Milk Bread (400g), Sugar Free 12-Grain Loaf
(260g), Whole Wheat Bun (350g) and High Fiber Wheat Raisin Loaf (400g).
Second category is the flavor-licious bread. It is compose of the Classic Flavored
Breads from Chocolate Chip Loaf to California Raisin Loaf, Amazing Flavored Breads
only available in 400g from Blackforest Loaf to Butterscotch Loaf, Double Delights
Flavored Breads also available in in Ubelicious-Cheesy Twirl and Choco Ripple-Mocha
Marble, and Mini Wonders Flavored Breads for 225g in Mongo and Ube Loaf and Mini
Wonders Double Ubelicious and Cheesy Twirl Loaf and Mini Wonders Double Delights
Choco Mocha only available in 200g. The Classic Flavored breads and Delight
Flavored Breads are only available for 400 grams. The third category is the Buns. It is
compose of Pandesal (350g), Soft-Delight Pandesal (250g & 300g), Whole Wheat Bun
(350g), Hotdog Bun (330g) and Hamburger Bun (330g).
Next is the snacks category. It compose of Twiggies Yellow Cake and Choco Cake
(25g), Twiggies Choco Filled Cake and Choco-Vanilla Filled Cake (40g), Cream Roll
(75g), Fun Bun (80g), and Muffins (30g). The last category is the Crunchy Licious
Toasts. It compose od the regular Butter Toast available in 150g and 60g, Garlic Toast in
110g and Cinnamon Toast in 150g. All of their products are ensured with freshness.

Supply Chain Management

Gardenia Bakeries Philippines Incorporation started in 2002.Gardenia bakeries
also the country’s biggest bread maker. In Gardenia they continue to improve their
supply chain by raising consumer awareness and consumer demand. Gardenia uses
the traditional American Sponge and Dough bread-making method to bake you that soft-
textured loaf with a tender crust and distinct taste. This unique method ensures that
Gardenia's bread stays fresh longer and tastes so good you can even eat it on its own.
The main ingredients or raw materials for the Gardenia bread are flour, sugar, milk, and
whey powder. They also offer a wide array of superior bakery product including white,
wheat and health breads, flavoured loaves, pandesal and snack items like snack cakes,
muffins and toasts. They also hire some endorser to make a TV commercial so that
there product will be known by the consumer .They have their product slogan “so good
… you can even eat it on its own”. They also receive an award annual national
consumer’ awards (ANCA) by the consumers union of the Philippines (CUP)
“outstanding bread manufacturer 2004-2008”
The gardenia production and sales team works throughout the night to ensure that only
the freshest bread reaches you. Nothing is rushed. The entire process takes 8 hours to
complete. They distribute breads through 150 trucks that go to different supermarkets
per day. The minimum bread that is delivered per day is 650,000 and during the peak
season of September to February their delivery per day are 2.4million. They also
delivered to some 3000 retail outlets throughout Singapore.

Jollibee Commissary
Brief History
The Jollibee Commissary located in Canlubang, Laguna is just one of the 3
Commissary systems sites of the Jollibee Foo`d Corporation. The 2 other system sites
can be found in Santolan, Pasig and Mandaue City, Cebu. Jollibee Foods Corporation
started operating in 1978 with only one store in Quezon City. Today, Jollibee is the
largest fast-food chain in the Philippines, with 440 outlets within the country, 30 stores
overseas, employing about 40,000 people. The success of Jollibee Food Corporation
was made possible by its Jollibee Commissary by ensuring the manufacture and
distribution of safe and high- quality food in the most cost-efficient manner is made
possible. The Laguna Commissary is the best commissary in Philippines. It is operated
Zenith Food Corporation, a full subsidiary of Jollibee Food Corporation. There are 8
production lines that can be found in Laguna Commissary: Chicken Joy, frozen patties
and pies, breads, sauces, hotdogs and other meat products, and dry blended goods.

Mission – Zenith Food Corporation

To serve great tasting food, bringing the joy of eating to everyone.
Vision – Zenith Food Corporation
To be the center of Supply Chain excellence that ensures dominance of Jollibee Foods
Corporation in Asia Pacific.
Core Values – Zenith Food Corporation
Customer Focus, Excellence, Respect for the Individual, Teamwork, Spirit of Family and
Fun, Humility to Listen and Learn, Honesty and Integrity, Frugality, Innovation and
Social Responsibility.
 Zenith Food Corporation is the one that operates Jollibee Commissary. It is
obvious in their mission statement that they are focus on their customer. ZFC wants to
ensure their customer with full satisfaction by serving them great tasting food. ZFC aims
to be the center of supply chain excellence. As stated earlier, ZFC distributes its
products to different Jollibee Stores inside and outside of the Philippines. Both Jollibee
Food Corporation and Zenith Food Corporation share the same mission and core
values. Those core values serve as a pathway to success. It serves as a guide on how
ZFC can achieve their mission and vision.

Organizational Chart

Quality

Management
Quality is a fundamental
factor for a fast food chain to
have much customer demand
and market share. With
Jollibee Commissary, Jollibee Food
Corporation serves the best high-quality products to
their customers. For example, in the their different production lines like Frozen Patty
Lines and Hotdog Lines, the production site must maintain a cold temperature needed
by their products. For the Hotdog lines, it must maintain a temperature of about 16 ᵒC` to
make the hotdogs frozen solid. While for the Frozen Patty Lines, it must maintain a
temperature of about 19ᵒC to make the patties frozen.
For Jollibee Commissary to produce high quality products, they professionally
trained their Technical Services Team that supports the maintenance of their quality
management system that further ensures the quality and safety of the commissary
manufactured food products.
Quality is not only applicable to products; it is also can be applied to service.
Jollibee Commissary is strict and dedicated to have high standards as symbolized by
“F.S.C.”: Food(F) served to their customers must have high quality and standards.
Service(S) rendered must be efficient and effective. Cleanliness(C) must be maintain
always in their kitchen and working environment and also it must also be seen in their
utensils.
There is a proof that the Jollibee Commissary produces high quality products. It
is the award given by to Zenith Foods Corporation, the one that operates the Jollibee
Commissary, was awarded as the National winner of Meat Processing Plant AAA
category in the search for Best Meat Establishment of the National Meat Inspection
Service.
Potential Problems and Solutions
Even though they make sure that they only deliver high quality products, there
are still potential problems that can be seen. First is their wet floor inside their
production site. These wet floors can go through their products if their workers step on
it. That water that will go to the product can affect their product’s quality. That water on
the floor is dirty and has full of germs. If those products will be intake by their
customers, there is a great chance that their customers will have stomach problems.
Another thing is that they have a canal in inside their production site. Canals are known
for having dirty and smelly water. The smell of the canals can also affect the quality of
their products. Moreover, their workers used their hands in the production of their pies.
They don’t even use gloves to protect the quality of their products.
 Zenith Food Corporation or Jollibee Commissary can enhance their quality
management by maintaining a clean environment. Their production site must be free
from germs that come from their wet floors and canals. They must be aware of the
effects of wet floors and canals to their products in order for them to response to these
problems. Also, their workers of pie must always wear gloves or else their pies might be
contaminated because of their direct contact to their pies.

Human Resource Management

Jollibee Commissary’s Human Resource Management is headed by John Victor
Tence, VP – Human Resource and Robert Poblete, VP Human Resource Development.
Since Jollibee Commissary has eight different production lines, each production line
must have enough workforces to conduct the process efficiently. Jollibee is known for
their reputation that their company works through its people. Jollibee Corporation and
Zenith Corporation make sure that their core values are well communicated to
employees. In order for them to be consistent in producing quality products, their
employees are evaluated based on their performance. Those who have good
performance evaluation will receive rewards. With that, their employees will be
motivated and that will result to better products,
Potential Problems and Solutions
It is obvious that the abilities and capabilities of Jollibee Commissary are
maximized. The only problem that can be stress with their human resource is their
suspicious actions. Some of their workers throw water to their windows. The reason is
not clear why they do that. Maybe they want us to see clearly their production or maybe
they are hiding something from us. Another problem with their human resource
management is that their working environment is always wet. Their workers might get
slip on their floors. In short, their working environment is not that safe.
Those issues must be resolved immediately by their human resource
management. They must restrict their workers on doing such suspicious actions in order
to have good reputation. It must be done for their visitors to stop thinking bad about their
actions. Also, their human resource management must always maintain their floors dry
to ensure the safety of their workers,
Inventory Management
Jollibee have different production lines (frozen patty, sauce, hotdog, pie, blending
and buns). Frozen patty line is for their real beef burgers (cheeseburger, champ, regular
yum, etc.).Sauce line is for sauces of their spaghetti, macaroni and palabok (Jollibee),
lasagna, baked mac, ala king and beef mushroom (Greenwich) and spaghetti (red
ribbon). Greenwich and Red Ribbon are sister company of Jollibee. Meat processing
line is for their hotdogs, meatballs and sausage. Pie line is for their peach mango pie.
Dry blending line is for measurement of ingredients. Bread line is for buns of regular
yum and champ and hotdog roll for hotdog. There are other production lines, marinating
line for chicken joy and meat and vegetable operation (i.e. cutting of vegetables and
meat). Not all of their products are being produce by their company. In fact, it is being
produce by their co-processor.

The flows of process above are process for the inventory of Jollibee products
(patty, pie, buns, chicken joy, hotdog, buns, etc.). Normally, Jollibee can produce
100,000 pies everyday, 450,000 buns daily, 300,000 marinated chicken joy a day and
490,000 spaghetti sauces yearly. Every fixed season, they produce of their products that
would be for 2-3 weeks stocks. It increased their production every fixed season.
Inventory of their products is for 2 days only. All of their products have a stock indicator
to monitor how many products are sold and remain for inventory.
The process starts to packaging on which employees put the products in the box
and store it to finished good storage. It will deliver to their factory warehouse on which it
is far away from their production area. Jollibee have several warehouse here in our
country, Philippines. Finally, it will distribute to their designated store which warehouse
is nearer.
Process and Capacity Design
Jollibee is one of the busiest fast-food chains in the country. The process strategy and
capacity planning of Jollibee in this paper is focused on its emphasized 8 Production
Lines namely the following with their corresponding processes:
1. Frozen Patty Line – The patties for Jollibee and Red Ribbon are processed here.
a. Beef Stripping
b. First Grinding
c. Mixing with other ingredients
d. Final Grinding
e. Forming
f. Freezing
g. Case Packing
h. Final Good storage
Cubes of beef are stripped and then undergo the first grinding. The ground beef are
then mixed with other ingredients as seen by observers as a yellowish substance.
Then, the ground beef are grinded more for the forming of circles as the patties
would look. Then the formed patties are frozen through a large freezer by a conveyor
belt and then workers will select and dispose those with defects. The products are
then cased and stored until further request of delivery from the warehouse. The 40
tons of meat came from Australia, New Zealand and Brazil.
2. Sauce Line – The sauces for Jollibee spaghetti, Palabok and Pie Fillings are
made here. Also the sauces of Greenwich and Red Ribbon are processed here.
a. Raw Materials Preparation
b. Sautéing
c. Steam Kettle Cooking
d. Packaging (Form-Fill-Seal)
e. Freezing
f. Case Packing
g. Finished Good Storage
The sauce line looks is composed of three large kettles for cooking. First, the raw
materials are prepared for sautéing in the steam kettle cooking. There is a large
mixer in the kettle that automatically mixes the product evenly. After cooking for a
while, the product are packed and then frozen. The packs are grouped together and
then stored. The process produces 56 tons of sauces for 490000 spaghetti servings.
3. Meat Processing Line – Hotdogs, meatballs, sausage and spiced ham are
processed here.
a. Beef Stripping
b. Grinding
c. Bowl Cutter Operation
d. Emulsification
e. Stuffing and Linking
f. Smoking/ Cooking
g. Water Chilling
h. De-Linking
i. Packaging
j. Freezing
k. Case Packaging
l. Finished Goods Storage
The meat processing line is somewhat very cloudy. Literally the meat processing is
full of steam due to low temperature. The only processes can be seen is the de-
linking stage wherein the cooked meats are cut in their linkages like sausages. Then
the products are froze and packed for storage.
4. Pie Line – Pies of Jollibee and Red Ribbon are processed here.
a. Preparation of Crust and Filling
b. Fold-over/Forming
c. Preparation of Glaze and Freezing
d. Glazing
e. Surface Drying
f. Packaging
g. Case Packing
h. Finished Goods Storage
The Pie line’s first simultaneous processes are crust and filling preparation wherein
the crust and filling are prepared and then placed together to form the pie. Then a
fold-over is done in which the shape of the pie is formed. Then, the raw pie is then
glazed and dried for packaging. 100000 pies are served every day.
5. Dry Blending Line – The processes here are spices blending and the making of
the bread for the pies.
a. Raw Materials Preparation
b. Batch Weighing
c. Blending Operation
d. Packaging
e. Case packing
f. Finished Goods Storage or Issuance to Production
The raw materials are prepared and checked by batch weighing in order to
rationalize the mixing of ingredients. The ingredients are then blended in a kettle like
the one in the sauce line. After the blending, the mixed ingredients are packed and
then stored or issued for production.

6. Bread Line – This is the bakery of Jollibee where the buns and hotdog buns are
made.
a. Raw Materials Preparation
b. Sponge Mixing
c. Sponge Fermentation
d. Final Dough Mixing
e. Dividing/ Make-up
f. Intermediate Proofing
g. Baking
h. Cooling
i. Packaging
j. Finished Goods Storage
The largest room for production is the Bread line. As observed, the bread line is
somewhat like the traditional Filipino bakery because the “panaderos” manually
 knead the dough to form the hotdog buns. The whole process from baking to storage
is carried by a 4000 ft. conveyor belt. There are 300000 buns baked every day.
7. Marination Line – Process of marinatingchicken, barbeque and other meat
products are done in this line.
8. Meat and Vegetables Preparation
The last two production lines were not able to be seen by the observer.

Jollibee’s process after the storage is the distribution to the warehouse and from
warehouse to stores such as Jollibee, Red Ribbon and Greenwich. The commissary
has cold storage facilities from storage to transport. The frozen products can only be
contained in the warehouse, the management called “stock level”, for 2 to 3 weeks.
The Commissary logistics ensures that the distribution has a legal compliance.
Using the Product-focus strategy, Jollibee ensures that they produce in high-volume
to supply their large number of stores all over the country. Due to some instances
the quality of the products is degraded because the observer was staggered by
while overlooking the production lines. Still, the commissary follows a product-
focused strategy because of specialized equipment that serves only for one stage of
production line such as freezing for patties only. Also, the management can easily
see the disruption of production because the Production line is easier to control and
plan due to individual stages of equipment. The whole processes of each of the
production line are supported by conveyor belt which states the Repetitive Strategy
of the commissary. Also, the delivery process of the frozen goods is a repetitive
strategy due to compilation of the previous strategies.
Service and Product Design
The products offered by Jollibee capture the taste of the Filipinos. Jollibee has been
able to serve localized dishes that are unlike any found other fast-food chains in the
Philippines. Listed below are some of the products of Jollibee that are being made in
Jollibee Commissary :
Chicken- When chickens from commissary are fried, it becomes crispy and tender
juicy inside and out. Their commissary uses only the best marination ingredients to
make their products love by every people.

Frozen patty- Their patties are made with high quality beef, eggs and spices. It weighs
normally for about 50 grams. It has only fourteen percent Fat content.

Pie- The crust of their pie when baked was very crunchy, which is one of the factors why
it is very delicious. It was served hot, which is a good thing. The mango filling inside was
a bit hot, which made it difficult to eat. Nevertheless, it really was delicious. So, you
wouldn't mind it if it's hot. Peach Mango Pie is one of those Jollibee products that is
loved by their customer.

Spaghetti Sauce- It’s consists of a sweet, cheesy mixture with hot dogs and ground
meat. Jollibee spaghetti is far sweeter than other varieties due to the addition of
sweetened milk and sugar.

Bread- Tasty hamburger buns topped with tasty toasted sesame seeds perfect to match
with Jollibee delicious patty. This buns was mage traditionally or handmade without
using machine. But, that process was changed since they discover new equipments and
machines that makes their process efficient.

Hotdogs- Jolly Hotdog is is available in Classic, Chili, and Bacon and Mushroom Tops.
It is served with tomato ketchup and mustard. You can also find cheese on the top of the
hotdogs.

Other meat products- Jollibee Grilled Pork Tenders and tocino are example of this.
They used special barbecue sauce. It is grilled to perfection to satistfy the taste of their
loyal customers. Consistently tender and juicy pork slices are served with the right blend
of sweetness and peppery taste.

Supply Chain Management

Jollibee Food Corporation was founded by Chinese-Filipino Mr. Tony Tan Caktiong
(TTC) as the ice-cream parlor at Cubao City in 1975. Gradually, it grew up to a
reasonably large fast food chain in Philippines.Jollibee Food Corporation is the country's
largest fast food chain operator with 1,490 local and 228 foreign stores and they are
recognized for its strategies in reducing cost, optimizing lead times, collaborating with
suppliers and partners, and increasing customer satisfaction and market share.
The product of Jollibee is being supply by zenith Food Corporation. They have the
commissary that has 1.5 billion peso state of art manufacturing and logistics facility.
Thanks to the Jollibee Commissary System, they ensure the manufacture and
distribution of safe and high- quality food in the most cost-efficient manner is made
possible.There are three Commissary System sites: Santolan, Pasig City; Mandaue
City, Cebu; and the central site in Canlubang, Laguna. The System, which operates
24/7, manages Jollibee’s total supply chain process.
In Canlubang, Laguna commissary sites they have eight production lines. These are the
seven production line , frozen patty line, sauce line, meat processing line, pie line, dry
blending line, bread line, and marinating line. Some of their raw materials are come
from in Australia, New Zealand and Brazil like the beef for patties. They produce 40 tons
of patties per day. 56, 000 tons of combined sauces and 100, 000 pies are also
produced.. The Commissary Logistics ensures all are in supply chain in time and also
they delivered the finish product in there different Jollibee branches nationwide.
JFC started scouting avenues for expansion internationally. Thus it opened its
franchises in countries like U.S.A., Brunei, Hong Kong, Guam, Middle East,and other
country they ensure the productivity of their supplies and they ensure that they have the
products and to know when do they need these products. The Company maintains the
productivity of suppliers for its raw and packaging materials to ensure a steady supply of
quality materials at competitive prices.
The Jollibee receive an award In 2008, for being Asia Pacific’s biggest multinationals as
it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM
Logistics Excellence Award held in Singapore”

Monde Nissin Corporation

Brief History
Monde Nissin Corporation has been already operating in the market for almost 31
years. Since 1980, Monde Nissin Corporation has been providing us high quality
products and services. Its first manufacturing plant is in Laguna. Monde Nissin
Corporation’s first few fast selling products are Nissin Butter Coconut and Nissin Wafer.
After 9 years, Monde Nissin Corporation ventured into instant noodles in November
1989. The ventured in instant noodles came to success and that leads to production of
new products like Lucky Me! Pancit Canton, first noodle in pouch without soup, and
Lucky Me! Supreme La Paz Batchoy, the first bowl noodle available in that flavor. Today,
Monde Nissin Corporation has already evolved into premier food company. They
consistently be a part of Top 100 Companies since year 2000.
Mission
We are an organization of happy and creative people striving for excellence and
committed to uplift the lives of all whom we serve.
Vision
We are a food company most admired for its agility and innovation for being number
one.
Core Values
Teamwork- There is respect for one another and fun in working together for a common
goal. With this, more and better results are achieved.
Learning Continuously- Monde Nissin believes that each one should aim for constant
self-improvement by always striving to acquire new and relevant knowledge and
experience for learning is an exciting adventure.
Caring Service- Being helpful and useful in looking after the rightful needs of others is a
practiced decorum. Everyone feels good when customers are served well. Monde
Nissin believes that successful and happy employees are key to the company's
continuous and unparalleled success.

Just like any other companies, Monde Nissin wants to be the NUMBER ONE food
company that strives for the best and a company that’s willing to strengthen people.
They can achieve that using their selected core values. They view their organization as
one team with one goal. Each member of the team are well trained locally and abroad.
Moreover, each team member must have the values needed to be successful. They will
never be contented with their knowledge; rather they will continuously conduct research
about their product and their market.

Organizational Chart

Quality Management
Monde Nissin developed different quality programs in order for their products to have
the best quality a product could have. For example, its processing and manufacturing
facilities are efficient to produce high quality biscuits and noodles. Also, their systems
and internal processes are continuously studied and improved. They also use computer
technology to detect quality defects and problems. Another important factor in quality is
its employees. Monde Nissin makes sure that their employees are well trained to
maintain hygiene and safety on their jobs.
Moreover, Monde Nissin is a member of WINA (World Instant Noodles Association). The
purpose of that organization is to “improve the quality of instant noodles increase its
consumption through the mutual exchange of information by manufacturers around the
world, to discuss environmental and technical issues, and to promote mutual friendship,
thereby enhancing diets worldwide and contributing to the development of the industry.”
With WINA, Monde Nissin can have immediate information from different corporations
on how to improve their products’ quality.
Since 2008, Monde Nissin Lucky Me becomes NAPA (No Artificial Preservatives
Added.) It is a way to improve the quality of their noodles by using only the natural
preservatives to maintain its freshness for a long period of time. Just a year ago, Monde
Nissin already uses Green Tea to improve the freshness of all its noodle products.
Monde Nissin also received awards for producing high quality products. Two of their
best awards for product quality are National Consumer Quality Award for Instant
Noodles category and Gold Award MONDE SELECTION Bruxelles - WORLD
SELECTION OF QUALITY – 2007. The manufacturing plant of Monde Nissin is ISO
9001-2000 certified. Meaning, Monde Nissin practices a world class Quality
Management System.

Potential Problem and Solution

There is only one problem about the quality of their products. It has been
observed that some of their noodles go into the small spaces of their machines. These
small spaces are the spaces in the machine that is hard to clean. In short some of their
noodles pass through the dirty parts of their machines. These pieces of noodles are
included in the packaging of noodles that are clean.
Monde Nissin Corporation must always make sure that all parts or spaces of their
machines are cleaned regularly. With that, it doesn’t matter whether those pieces of
noodles passed through small spaces of their machines because those spaces are also
free from germs.
Human Resource Management
Human Resource Management is very important to Monde Nissin Corporation. They
promote 3 things to their employees namely, spirit of enthusiasm, creativity at work and
passion for excellence. They believe that when their employees achieved those three
things, they will be more efficient and effective. They will treat their job as a commitment
rather than compliance. Another great thing about the human resource management of
Monde Nissin is that they give their employees competitive benefits. Also, they make
sure that all of their employees receive equal treatment from their management. Monde
Nissin invoke to their employees that their company is a learning organization, a place
where a culture of happy people and creative people lives. In short, Monde Nissin helps
their employees to bring out the best in them.
Moreover, Monde Nissin offers a Cadet Supervisor Training Program for fresh
engineering graduates who will be assigned as supervisors in Monde Nissin eight
production lines. This will help their new employees to have new technical and
functional proficiencies. It will also help them to improve their leadership and
supervision skills.

Potential Problems and Solutions

One potential problem of the Human Resource Management of Monde Nissin
Corporation is the working environment of their workers. Their working environment is
not a comfortable place to work because of its high temperature. Another thing is that
their workers are fully covered to prevent contamination of their products. It is hard to
work when you are fully covered in a high temperature room. They even can’t wear light
clothes because the waters that come from their body due to perspiration can go to their
products.
Even though Monde Nissin can’t control the steams that come from their machine,
they easily control the temperature in their production site. Monde Nissin can do that by
enhancing the exhaust fan that they use. The exhaust fan must easily take away the
heat in their production site. Moreover, they must provide proper ventilation inside their
production site.
Inventory Management
The flows of process below are the process for inventory of lucky me product
(noodles). It starts to packaging of noodles on which employees put the product in the
box and bring it to their factory warehouse. The layout arrangement of the products on
warehouse is according to the flavors (chili-mansi, spicy, plain, sweet and spicy) of the
product. Factory warehouse is relatively near to the production area of the product. In
fact, lucky me produced 720 pieces per minute and produced between 6 million and 10
million a day. Normally, noodles expire within 6-8 months. Products will be distributed to
designated area. Lucky me usually used first in, first out in distributing their product.
Generally, they deliver their product to retail stores and supermarkets.

The process of lucky me and gardenia for the inventory of their product looks the same.
The only difference was gardenia has a metal detector after the breads were packed
while lucky me doesn’t have. The inventory starts when products start to pack, of
course, at that time products will now going to put on the warehouse on which it also
starts of counting of products that will be distribute to their customers and products that
will remain on the warehouse.
Process and Capacity Design
Lucky Me’s process of production is indeed one of the most intriguing questions in
life. The production of curly noodles is really fascinating. Among the plants visited,
Jollibee and Gardenia, Lucky Me has the shortest Production process of the three
and this includes the following:
1. Mixing
Flavorings and flour are mixed in a large bowl to form the dough
2. Flattening
 The dough is then flattened. The dough is then long and slim.
3. Curling
This process is not seen on the move. The dough enters a tunnel like machine
and then presto, it is curly.
4. Steaming
The curly dough is then steamed by hot water that comes from a beam.
5. Cutting
The steamed dough is then cut into smaller portion the size of the packed
noodles.
6. Frying
The cut dough is then fried.
7. Cooling
The almost finished product is cooled
8. Packaging
The crispy noodles are then packed with their corresponding flavorings and
packaging.

The whole process of Lucky Me is Repetitive Strategy because of the processing from
raw materials to packaging due to a continuum usage of conveyor belt. Also, the long
line of the process for each flavor of noodles represents the Repetitive Strategy of being
assembled in the end for delivery.

Supply Chain Management

Monde Nissin Corporation has been providing Filipino consumers high quality
product and excellent service for almost 29 years. The first Nissin biscuit was rolled out
of the Laguna plant. Since June 1980 monde biscuits have been top player in the
market industry. There Nissin butter coconut and Nissin wafer was the fast selling
biscuits that time. In year 1989 they ventured into instant noodles. Now the Monde
Nissin Corporation (Lucky Me) remained the leading brand in the year 2009, accounting
for a 64% share of retail value sales. The company led both pouch instant noodles and
cups/bowl with retail value shares of 48% and 71% respectively.
Monde Nissin Corporation manufactures, distributes, and markets food products in the
Philippines. It offers wet and dry instant and specialty noodles in beef, chicken, egg,
seafood, and vegetable flavor’s; and biscuits. The company provides its products
through its distribution network. Monde Nissin Corporation expected sales to grow by
double digits to PHP 30 billion in 2011 with exports seen to start accounting for an
increasing share of the total revenues.
Monde Nissin corporation also use a lot of advertisement so that the consumer or
customer will know there product and some changes and improvement of their
products. That’s why they also bagged Gold as the Effectiveness Advertiser of the Year
for Best Family-Oriented Brand Campaign in this year.
Monde Nissin Corporation was putting up a manufacturing plant at this city's industrial
processing zone in Ilang, Tibungco district. The factory, which will complement existing
facilities in Luzon and Visayas, is expected to come on stream in 2012 to improve the
company's ability to serve the mass market in Mindanao. The amount of investment for
the project is yet to be finalized since it is still on the physical design stage. They ensure
proper stock allocation to customer orders and Coordinates with export clients and
domestic sales teams for order delivery and customer stock requirements.

Service and Product Design

Some of the popular products of Lucky Me! Monde Nissin are listed below:

Wet Noodles
Beef na Beef - it is a noodles with the taste of popular filipino dish called “ Nilagang
Baka”. It already comes with potatoes and cabbage.

Chicken na Chicken - it is a noodles that captures the true taste of chicken.

Chicken and Egg (Itnok) -the combination of Itlog (egg) plus Manok (chicken) equals
itnok.
Native Chicken – Chicken here are spiced with ginger and capsicum leaves. It is rich
with the true flavor of Native Chicken.

Spicy Hot Beef- flavored mami noodles with a hot twist. Spicy Hot has Lucky Me!'s
signature authentic beef goodness spiked with hot capsicum.

N-Rich with Malunggay - Each pack contains powdered Malunggay. It comes in

delicious in Chicken Tinola flavor -- a light and tasty broth of slowly simmered fresh
chicken, chili leaves, ginger and onions made even more special with malunggay instant
noodles.
Specialty Noodles

Sotanghon Lite – It is a low fat and cholesterol free food to lite up the life of health
conscious people.

La Paz Batchoy - the classic Ilo-ilo delicacy, La Paz Batchoy specialized to pa.
Complete with pork crackling and meat bits, Special La Paz Batchoy lets you enjoy the
taste of the Philippine South everyday.

Bulalo –It has the alluring taste of slow simmering beef meat, bones and marrow.
Bulalo. Inspired by the Batangas specialty, and made heartier with firm-to-the-bite
noodles.

Lucky Me! Seafood - It's so good to fall in love with Special by Lucky Me! Seafood.
With the deliciousness of crabmeat, corn and real vegetables. Enjoy the experience of
eating Special Seafood is fresh, light and naturally sea-licious!

DRY NOODLES
Pancit Canton – Their pancit canton is offered in many flavors. First is the Original
Flavor.it is rich with flavor of sautéed onion, garlic and savory chicken. Second is the
Kalamansi. It is a pancit canton with a sour taste because of kalamansi. Next is Chili
Mansi. It’s mixed with kalamansi and hot chili. Also, it contains39 grams of
carbohydrates and 270 calories. Next is the Extra Hot. It is made with the most spicy
chili that can be found in the world. Another flavor is the Sweet & Spicy . It is a mixture
of sweet soy sauce and mild chili.

Specialty Noodles Dry – Other noodles that Monde Nissin offer are Pancit Bihon, Curly
Spaghetto, Baked Mac and Mac and Cheez.

CUP NOODLES – Lucky Me! Is known for their La Paz Batchoy noodles that is
complete with pork crackling and meat bits. Another noodle is the Bulalo that is sold with
simmer of beef meat. They also offers International Flavors like Jjampong that has bits
of cuttlefish, and wakame seaweeds in a spicy seafood broth.

Potential Problems concerning Inventory Management – In General

Inventories were obsolete due to fire, floods, etc.
- I suggest to pick a location that will not be affected by the floods (for example,
high land place) and add strictly rules inside the warehouse like strictly no
smoking inside the warehouse to avoid fire.
- Use FIFO method to avoid obsolescing of product.
Inventories can lose because of thief employees.
- Add more hidden camera inside the warehouse to know who are the employees
stolen the products.

Conclusion
It is the goal of every company to have an efficient and effective operation
management. The mission and vision of Gardenia Bakeries, Jollibee Commissary and
Monde Nissin Corporation varies in their own ways. One thing that makes their mission
same is that those 3 companies want to serve the best high quality products in order for
them to satisfy their customer. Those three companies are committed to serve their
customer through their products and services. It is clearly defined in their visions that
they want to be the best in their own fields. Gardenia wants to be the “Premier
Company in Banking Industry.” Jollibee Commissary wants to be the “Center of Supply-
Chain Excellence.” Monde Nissin Corporation wants to be the “Most Admired Company
and Number One Company.” Those three companies can only achieved their missions
and visions using their own core values. Those core values will guide them to achieve
their organizational goals.
Those three companies strive to produce high quality products. Their awards
from different organizations and institutes are already proofs that they produce only the
best products. Each company aims for a continuous improvement for their internal
processes. They continue to search for the best technology and equipments needed in
order for them to have an efficient and effective processes.
Each company also aims to manage labor and design jobs so their workforce are
effectively and efficiently utilized. Gardenia is the least among the three companies in
regards of maximizing the benefits they can get from their workers. While, in regards in
maximizing the benefits they can get from their workers, Jollibee is the best. Those
three companies promotes different programs to motivate their employees to be
committed in their works.
In order to improve their inventory management, each company uses the FIFO
method in distributing their products. They can succesfully use FIFO method because
they have already designated area on where the products would be delivered. Between
Gardenia, Monde Nissin Corporation and Jollibee Commissary, only Gardenia is has a
metal detector to ensure their product does not include any iron while it is being cooked.
In regards on warehouse of every factory, between the three, only Jollibee has a distant
warehouse. The reason why it is far away, it is because only Jollibee has a designated
store. Gardenia and Monde Nissin Corporation distributed their products to retail store
and supermarkets.
The three companies visited manifested complex production line yet they were
able to ease the strain by using such strategies. As what we can observe, the three
companies’ focus is on their product and for the continuous production. The decision on
Process Strategy and Capacity Planning is indeed critical to the survival of not only
product oriented companies but also those of service oriented. Process Strategy and
Capacity Planning affects the production of the company in many aspects such as the
preparation of raw materials, the flow of the whole production line, and the distribution of
the finished products. As a whole, the three companies generated a keen sense on the
flow of their production to utilize their processes at a maximum rate.
Group Learnings
Every company strive in order to meet their organizational goals. In line with
competiting with their competitors they still manage to have and efficient and effective
managements. Each company that we visited showed to us that every products that
they make are produce using only their best equipments and workforces. One important
lesson that we learned is that we can help those companies to improve their internal
processes. We discovered many potential problems about their operations. We must let
them hear our voices in order for them to be aware that there are problems in their
operations. It is in their mission that they work hard in order to satisfy us, their customer.
In return, we must also help them to be aware of the issues we noticed. Lastly, we
learned that the job of an Operation Manager is really hard. Each of the 10 critical
decisions is very sensitive to their operations. Meaning, one mistake in their critical
decisions can affect the whole operations.
General References
• http://www.gardenia.com.ph
• http://www.mondenissin.com/main.php
• http://www.jollibee.com.ph/about-us
• http://luckymenoodlefactory.multiply.com/
• http://www.youtube.com/watch?v=qYyqlhpEGzQ