Company Introduction

Orange & Spices is a casual restaurant

1. 2010 and was established by Mr. Harry Ong. It has only

2. one branch, right beside a De La Salle University,

3. its main target market are students and faculty

4. 9 AM to 9 PM.

5. on the process of expanding its operations around the areas of other universities,

such as University of Santo Tomas and Ateneo de Manila.

6. Branded as student friendly for its affordable rice meals
Organizational Chart
Problems

1. Slow service time

- They serve longer than they would tell their customers
(within 15 mins)
2. Substantial level of Employee Idle Time
3. Ordering System
 OM Functions & Computations
1. Service Blueprint
OM Functions, Computations & Results:
Slow Service Time
Line Balancing

-The aim of line balancing is to equalize the level of time required

across all the process needed to be able to eliminate bottlenecks and
excess capacity.

- The results produce in such function determines the level of output

units produced per cycle, the minimum number of workstations
required and lastly, the level of efficiency of the whole process
combined in producing one output.
OM Functions, Computations & Results:
Slow Service Time
Task
Immediate Predecessor
Time (Seconds)
A Take order from customer - 60
B Process Payment A 30
C Relay order to the cooks A 30
D Defrost meat (microwave) C 140
E Season meat D 40
F Saute garlic and onion D 120
G Fry meat E, F 140
H Stir fry meat G 140
I Add sauce (for flavoring) H 20
J Prepare platter (arrange plate)I 30
K Serve Food B, J 30
Total time (in seconds) 780
OM Functions, Computations & Results:
Slow Service Time
Computation
Cycle Time = Operating Time Desired Output = 12 hours 60 minutes 60 seconds300
customers=144 seconds
Nmin = Total task time Cycle Time = 780 seconds144 seconds = 6 minimum # of
stations
Efficiency Test = Total Task Time(Actual # of workstations) (CT) = 780 seconds7 144
= 77.38 %
Qm solution
 OM Functions, Computations & Results:
Slow Service Time
Productivity
Product Price Labor cost Solution Productivity

Chicken Tenders Php 99 Php 24.75 1/(0.25*99) 4.04%/Php

(Regular/Cajun)

Buffalo Chicken Php 105 Php 26.25 1/(0.25*105) 3.81%/Php

Chicken Php 105 Php 26.25 1/(0.25*105) 3.81%/Php

Parmigiana

Boneless Chicken Php 119 Php 29.75 1/(0.25*119) 3.36%/Php

Barbecue

Boneless Fried Php 119 Php 29.75 1/(0.25*119) 3.36%/Php

Chicken
OM Functions, Computations & Results:
Substantial level of employee idle time
Learning Curve

-a mathematical curve representing the relationship between

unit service time and cumulative service period is calculated.

-This method can be applied to any activity that is repeated many

times wherein tasks and units of production are used
interchangeable.
Substantial level of employee idle time
OM Functions, Computations & Results:
Ordering system
Material Resource Planning

Master scheduling
OM Functions, Computations & Results:
Ordering system
Material Resource Planning
OM Functions, Computations & Results:
Ordering system
Material Resource Planning - Product Tree
Qm Solution
 OM Functions, Computations & Results:
Substantial level of employee Idle time
8. JIT & Lean System - Kanban which is a paperless technology designed to be
efficient in communicating demand for work or materials from preceding station or
stations.

Ingredients Beginning Usage Critical Level Ending

Chicken Breast 7kg 4kg 3kg 3kg

Sauce 1L 750mL 500mL 250mL

Cheese 5 bars 4 bars 2 bars 1 bar

Pork 4kg 3 ¼ kg 1 ½ kg 750 g

Rice 120 cups 300 cups 60 cups 0

Recommendations & Conclusions

Orange & Spices could better improve their services with:

1. Learning Curve
2. Material Resource Planning
3. JIT and Lean System
Recommendations & Conclusions
1. Learning Curve
- Since cooking is a repetitive activity, the learning curve is very
effective.
- Through employee training and employee self-development,
preparation time of food could be reduced by 40% on the 8th week,
using an 80% learning factor.
- If the company used to have 5 cooks during the first week, they
could reduce this only having 3 cooks on the 8th week and assign
the other 2 employees on other activities that needs more
manpower.
- A going concern should be about operating characteristics such as the line
length, the number of customers in the system, the waiting time spent in the
line, the total time spent in the system.
Recommendations & Conclusions
2. Materials Resource Planning
- With the given data, The master production schedule, bill of materials,
and product structure tree provided a new perspective on ingredients
requisition. These tools will help the restaurant determine the minimum
level of ingredients to be kept and when to start procuring for new stocks
in order to avoid spoilage and problems of ingredients stock out.
- able to maintain low level of inventory due to the reason that most
of their ingredients and perishable, all the while maintaining enough
inventory to meet its demands.
-
Recommendations & Conclusions

3. JIT System
With the application of a “kanban” system, the company is able to utilize only
the right amount of inventory sufficient to meet its demand.
1. This allows for a lower amount inventory as compared to its current system
where the company orders in bulk twice a week to meet its demands, thus
allowing lower inventory costs and fresher ingredients.
2. Allows the company to track the usage of ingredients with the use of cards and
replenish it when needed. Certain thresholds are provided for each inventory to
determine if it is still sufficient or if the company needs to order the ingredients
already