De La Salle University - Dasmarias

BUSINESS OPERATIONS MANAGEMENT

IMPROVEMENT PROPOSAL FOR TAZA VERDE
A Final Paper
Presented to the Faculty of the
College of Business Administration and Accountancy
Business Management Department
De La Salle University Dasmarias
City of Dasmarias, Cavite, Philippines

In Partial Fulfilment for the Requirements in

MGNT301a Productivity and Quality Tools

Joseph Rafael E. Cabanglan

Course Adviser
Group Members
Amboy, Beverly
Bea, Christine Ann
Labarda, Margie Angela
Kim, Gi Moon
Nolasco, Karina
Pascual, Georjan Grace
Villanueva, John Kester
Yap, Rachelle Angela May

November 2016

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BUSINESS OPERATIONS MANAGEMENT

TABLE OF CONTENTS

I.

Introduction....p. 3

II.

Abstract......p. 4

III.

Problem Identification and Selection.....p. 4

IV.

Analysis of the Present System..p. 5

V.

Identification of the Controllable Root Causes.p. 11

VI.

Selection of Best Alternative Solution...p. 12

VII.

Solution Implementation..p. 14

VIII.

Evaluation of Results...p. 15

IX.

Standardization.p. 16

X.

Self-Evaluation and Future Planp. 17

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I. Introduction
Company Profile

Taza Verde Caf and Pasta was founded last October 2015
in the City of Dasmarias, Province of Cavite. Taza Verde
offers coffee and pasta to its common customers, which are
the students of De La Salle University Dasmarias. They
promise to their customers that they will continuously offer
good quality foods and give their customers a comfortable
place to stay in during their vacant time. They have a branch
in the Province of Laguna called Kape Hayim were both of
the store owners are related to each other.

The PQTs
The team is composed of Business Operations Management students from level and section 34
namely: Beverly Amboy, Christine Bea, Margie Labarda, Gi Moon Kim, Karina Nolasco, Georjan
Pascual, Kester Villanueva, and Rachelle Yap. The team was formed last August 2015 aiming to
help Taza Verde achieve further improvement, mass preference of students, and enhanced
competitiveness.

Top (L-R): Amboy, Bea, Kim, Labarda; Bottom (L-R): Nolasco, Pascual, Villanueva, Yap

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Role
Leader

Name
Gi Moon Kim

Beverly Amboy
Members

Christine Bea

Margie Labarda
Karina Nolasco
Georjan Pascual
Kester Villanueva
Rachelle Yap

Adviser

JB Cabanglan

Main Responsibilities

Overall Team
Management, Data
Gathering
Solution Implementation,
Data Gathering
Selection of the Best
Alternative, Data
Gathering
Standardization, Data
Gathering
Standardization, Data
Gathering
Solution Implementation,
Data Gathering
Evaluation of Results,
Data Gathering
Selection of the Best
Alternative, Data
Gathering
Overall Guidance

Project Adviser
Mr. Joseph Rafael E.
Cabanglan
Productivity,
Quality
and Tools Adviser
Team Composition

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BUSINESS OPERATIONS MANAGEMENT

II. Abstract
The study pertains to the problem of Taza Verde with regards to its market status. Customers
usually prefer prominent and well-tested coffee shops such as Starbucks. In order for Taza Verde
to make its way towards the level of the leading coffee shops, the team will do a benchmarking
analysis for the latter.
The research has been ongoing since October 2016 up to present with Taza Verde as its main
respondent. The studys primary goal is to find the root cause of the problem, analyse the
difficulties being encountered, come up with hypothetical solutions, and propose finalized solutions
in hopes of helping the company towards its betterment .

III.

PROBLEM IDENTIFICATION AND SELECTION

Project Timeline
A timeline of planned activities are established by the team as a guide to monitor the progress of
the project. The team was guided by the below Gantt that follow the PDCA steps where every
activity is observed for completion according to plan.

Taza Verde Cafe

10/15

PLAN

DO

1. Problem
Identification
and
Selection
2. Analysis
of Present
System
3.
Identification
of
Controllable
Causes
4. Selection
of Best
Solution
5. Solution
Implementat

Plan
Actual
Plan
Actual
Plan
Actual

Plan
Actual
Plan
Actual

October 2016
10/22
10/29

11/9

November 2016
11/12
11/17

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BUSINESS OPERATIONS MANAGEMENT

CHEC
K

ACT

ion
6. Evaluation Plan
Actual
of Results
Plan
7.
Standardizat Actual
ion
Plan
8. Self
Evaluation
Actual
and Future
Plan

III. Analysis of the Present System

The team would like to present one of the process flows which includes the Ordering Process Flow
of Taza Verde.

Start
Go to counter

New customer
Arrives

Should I buy coffee or

pasta?

Let the cashier

take the
order

Confirmation of
Order

Look for empty seat

Delivery of food

END

Pay
in
cash

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BUSINESS OPERATIONS MANAGEMENT

Taza Verdes operations are best represented on a Micro Process Flowchart. The delivery of
finished goods/products is the main agenda and focus on the flow since a restaurant/eaterys
marketing status is directly affected and dependent upon its products.

IV. Identification of the Controllable Root Causes

After the research, the team came up with the curable discrepancies present in Taza Verde which
hinder its way towards achieving a market status it aspires. The following root causes are:
1. Pricing Strategy
For a caf that is starting at the bottom, Taza Verdes variety of coffee prices does not seem
to have their market interested. The prices of the products are almost exactly the same as
the leading coffee shop most people go to.
2. Beverage Labels Arent Made Available
The customers might experience difficulty on identifying what kind of drink was served.
Were the beverage given accurate from what they have ordered? This problem might
worsen if their customers are in group. If they ordered many drinks to be served in a single
table, they could possibly have their orders switched.
Fishbone Diagram

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BUSINESS OPERATIONS MANAGEMENT

Below are the summaries of potential causes in terms of source of variation.

Source of Variation
Count of Potential Cause
Manpower
2
Method
1
Material
2
Machine
1
Environment
1
Total
7
Goal Statement
To maximize profit, carve its way towards popularity, and attain certain market status.

Few customers

Massive customers

V. Selection of Best Alternative Solution

The following table will present all countermeasures based on the brainstorming and the
corresponding decisions if these will be implemented or not. Decision of the team is based on the
pay off matrix.
True Cause

Alternative Solution

Payoff Matrix

Decision

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1. Poor raw material
problem

2. Many Competitors

Delivery should be twice a

week, Monday and Thursday
to be specific

High Benefit

Taza Verde should do

something for them to be
unique to other coffee shops.

High Benefit

GO

High Cost

GO

Low Cost
High Benefit

3. No Marketing
Strategy

4. Lack of knowledge
and motivations

5. Few Machines and

Equipments

Taza
should
have
marketing strategy for the
customer to know their shop.

Taza should conduct some

trainings for their employees
for them to learn something.
Taza management should
also motivate their employees
through benefits and other
ways.

Taza Verde should also have

right number of equipments
and machines for their
customers to avoid waiting
lines.

GO

Low Cost

High Benefit

GO

High Cost

High Benefit

GO

High Cost

Potential Problem Analysis

The group listed the countermeasures and analyzed if there are potential problems that may arise
during the project implementation
True Cause

Potential Problem

Recommended
Action

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It will be more costly as they should
pay twice a week for the delivery

Divide the delivery

per week into two.

Work of the management will be

doubled and they will invest more time
in working

Make a time table

so the their time
will be manage
correctly

1. Delivery of raw material will be

twice a week

2. Uniqueness

Work of the management will be

doubled and they will
invest more time in
working as they should
do it immediately

3. Develop good marketing

strategy

4. Conduct trainings and

Shop will be close as employees will

attend trainings.

Schedule the
trainings on Sunday
as the shop is close
during that day.

It will be costly since they are buying

new equipment and machines

Set budget for it

motivate employees

5. buy more machines and

equipment

Make a time
table so the their
time will be manage
correctly.

VI. Solution Implementation

Taza Verde is a coffee shop who is not that popular since they dont have marketing
strategy. To remedy the problem, the best alternative solution is to use social media and make
flyers and posters for them to be known to a lot of people.
Steps:

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BUSINESS OPERATIONS MANAGEMENT

Plan together with the employees the marketing
stategy that they are
going to do

Assess how much money time

and is needed for the
advertisement

Distribute the work to the employees

.

Creat accounts and advertisemtn to social media, print

flyers and posters

Post and share the advertisement to social media,

distribute the printed flyers and post the posters to different places

VII. Evaluation of Results

It has been assessed that Taza Verde has poor marketing strategy that causes low number of
customers who visit their shop. The researchers had chosen to benchmark Starbucks, the most
popular coffee shop in the Philippines, with regard to the marketing strategy and advertisements
used in Starbucks. Shown in the pictures below are the different marketing strategy and
advertisements of Starbucks:

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BUSINESS OPERATIONS MANAGEMENT

This
advertisements
and

marketing strategy brought a

big help to Starbucks to became one of the popular coffee
shops in the Philippines. The first advertisement shows that Starbucks used a card for their
customer to earn stars and if they gain lot of stars they can get free drinks. The second
advertisement shows the famous Starbucks planner. Customers should earn stickers by
buying drinks. If they earn 18 stickers, they can get a Starbucks planner. The third
advertisement shows a 50% discount in every drink during 3pm to 5pm as during this time is
the least number of customers who visited them.
Taza Verde has poor marketing and advertisement strategy that causes low number of
customers who visit their shop. If Taza Verde will do something about it like Starbucks, a lot of
customers will visit their shop and earn a lot of profit.

VIII.

Standardization

Taza Verde will use different kinds of advertisement.

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IX.

Self Evaluation and Future Plan

The team was able to:

Finish the project on time and gain additional knowledge
Develop skills and capabilities
Develop time management skills
Encourage critical thinking
Develop teamwork

What went wrong?

The team spent a lot of time in defending their problem statement.
Acknowledgement
Our team would like to show our deepest appreciations to the following:
-TAZA Verde Coffee for allowing us to conduct observations and survey within the stores premises.
-Mr. John Anthony Ambayec, owner of TAZA Verde Coffee, for the time you allotted in answering
our questions and for allowing us to conduct an interview with you amidst your busy schedule and
work.

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-Mr. JB Cabanglan, PQT Professor, for being patient and helping/guiding us throughout the
completion of this paper.
-To our Parents, for their unending support and love.
-And most especially to God, thank you for the knowledge and guidance. Without it we wont be
able to come up with a paper like this.