QUEZON CITY UNIVERSITY

673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

INTRODUCTION

The first American fast-food chain - KFC also known as Kentucky Fried Chicken. As of December

2018, McDonald's is the second-largest restaurant chain in the world (as measured by sales) with 22,621

locations in 136 countries worldwide. Harland became a prominent figure in Western cultural history by

branding itself as "Colonel Sanders," as well as its image stays widely seen in KFC advertising to this day.

Nevertheless, the rapid expansion of the company threatened the elderly Sanders and in 1964 he sold it to

a private equity firm led by John Y. Brown Jr. and Jack C. Massey. It endured mixed fortunes at home

throughout the 1970s and 1980s as it underwent a series of changes in corporate ownership with little or

no restaurant business experience. KFC was sold to the spirits distributor Heublein in the early 1970s,

which the R.J. took over. The food and tobacco corporation of Reynolds; the company sold PepsiCo the

chain. Nevertheless, the chain continued to expand globally, becoming the first Western restaurant chain

to open in China in 1987. Ever since, it has expanded rapidly in China, now the largest single market for

the company.

KFC was known as the famous fried chicken fast-food chain all over the country, especially here

in the Philippines. As a set of example in operations management efficiency; however, this study

compromises for inadequate services regarding the staffs/employees of the restaurant as one of the KFC

branch in Cubao, Quezon City Philippines. This case study deals with crew optimization in a particular

marketplace of KFC Cubao branch, as describes the current practice of delayed services offers to the

customers from the target service of time.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Staff scheduling was one of the reasons for the long-wait situation of services from the customers.

Such hours are typically defined only a short time in advance: in this study, non-full-time workers are

only a few on advances disclosing the available times. This effectively excludes long-term planning and

(more importantly) repetitive schedule plans; in other words, every week the schedule needs to be re-

optimized. Not all branches of KFC were truly manpower, but some branches have few staffs to process

serving foods. But with this case, it was probably depending on the management about the schedules of

the staff.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

COMPANY PROFILE

Fig.1 Logo of the Company

KENTUCK FRIED CHICKEN (KFC)

 Kentucky Fried Chicken was All American corporation

 Known for it’s famous fried Chicken

 KFC's core product offering is pressure fried, on-the-bone chicken pieces seasoned with Colonel

Harland Sanders' "Original Recipe" of 11 herbs and spices.

 KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world.

 KFC had sales of $23 billion in 2013.

 KFC has its headquarters at 1441 Gardiner Lane, Louisville, Kentucky, in a three-story colonial-

style building known colloquially as the "White House" due to its resemblance to the US president's

home.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

 Most restaurants are furnished with images of the company founder, Colonel Harland Sanders.

 KFC offers a limited delivery service in a small number of markets.

 By December 2013, there were 18,875 KFC outlets in 118 countries and territories around the world.

 there are 4,563 outlets in China, 4,491 in the United States, and 9,821 across the rest of the world.

 Eleven percent of outlets are company-owned, with the rest operated by franchise holders.

 Average annual sales per unit was $1.2 million in 2013

 Worldwide, the daily average number of food orders at an outlet is 250, with most occurring within a two-

hour peak-period.

HISTORY

 KFC’s founder, Harland Sanders, begins cooking for hungry travelers at his service station and mote

l, Sanders Court & Café in Corbin, KY.

 Restaurant owner Pete Harman becomes first Kentucky Fried Chicken franchisee in 1952

 KFC International Headquarters (later named Restaurant Support Center) opens for business in Loui

sville, KY in 1970

 In 1987 KFC opens the first western fast food restaurant in China – the Beijing Qianmen store.

 KFC, Taco Bell and Pizza Hut spin-

off from PepsiCo to form Tricon Global Restaurants, Inc., the world’s largest restaurant company, an

d YUM trades for the first time on the New York Stock Exchange.

 Yum! Restaurants International, drives international growth opening its 1000th KFC in China.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

 Yum! partners with the World Food Programme and launches World Hunger Relief fund-

raising efforts in 2007

 In 2008 Yum! Brands Issues First Corporate Responsibility Report.

 2010Yum! Brands Recognized By Black Enterprise Magazine’s “40 Best Companies For Diversity”

List For Sixth Consecutive Year.

 Yum! Brands Announces Opening of 40,000th Restaurant With KFC In Goa, India in 2013

 Yum! Brands named one of the Aon Hewitt Top Companies for Leaders in North America in 2014

 Yum! Brands Announces Intention To Separate Into Two Publicly Traded Companies; China Divisi

on To Become Independent Company Focused On Growth In Mainland China, Yum! Brands To Bec

ome Global “Pure Play” Franchisor With Three Iconic Brands.

KFC Mission, Vision & Values

Mission:

To maximize profitability improve shareholder value and deliver sustainable growth year after year

Vision:

To be leading integrated food services group in ASEAN region delivering consistent quality products

and excellent customer-focused

Values:

 Hard work

 Hospitality

 Generosity

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Goal of the Study

The major aim of this paper was to show crew scheduling; here, staff is scheduled manually, the

resulting increase in generality results in a scheduling model that applies to real-world business issues

faced in a wide range of areas.

This paper also generalized these services with some fast-food restaurants all over the country, not

only the KFC.

Problem Statement

This case study focuses on the various problem of KFC, a fast-food chain that normally meets bad

conditions of food serving to the customers. The enormous success of fast-food giants has been attributed

to their exceptional efficiency of operations. Indeed, fast food chains were among the first companies

outside the manufacturing industry that utilized modern production management principles, such as lean

production and Just-in-Time (JIT) strategy. JIT or Just-in-Time means a quick style services, this was

credited for the effective accessibility of managing and monitoring from employers to the customers. For

instance, there were some customers are getting angry for delayed orders or not meeting customer

satisfaction.

According to a recent survey, fast food drive-thrus across the country are getting slower due to a

combination of factors including a higher volume of orders and more complex items. Despite the slower

service, many restaurants have surely studied implementing changes they say will help improve customer

experiences overall.

The reason for the long wait isn’t employees are taking longer providing service, but based on

research, rather customers are demanding higher-quality food from their favorite chains. But not all the

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

time that’s would be the case, shift-scheduling for the staff instead. Crew scheduling may also affect the

fast process services from employees to customer service, there are several features on the fast-food crew

schedules that make it difficult to optimize. Maybe the most prominent is the heterogeneity of the crew.

Fast-food chains, as described above, rely heavily on part-time and/or temporary staff, some of whom are

usually underage students.

It has many implications. First, there are multiple skill levels to be considered and scheduled in

parallel; there must be at least one full-time manager at each time in our case study to monitor the current

shift. Second, there are no standard shifts, (which this is the case in some other industries, facilitating a

great extent scheduling). Different types of employees allow different shift lengths and/or require them.

Lastly, part-time staff can specify their available time, times when they can actually be on duty.

Based on research on shift scheduling, the scheduler works with part-time as well as full-time

employees, and shift types contrast with each other in the following attributes:

• duration (length)

• start times

• the number of breaks (reliefs)

• the placement of the breaks.

The scheduler must determine the shift types (and the number of each type to employ), and in

some cases determine which employee should receive which set of shifts. Union rules and company

policy. The more complex scheduling problem that we address has wide applicability, particularly in the

fast-food fields. It differs dramatically from the days-off the shift scheduling issues by including important

real-world features that resist formal analysis methods to practical solutions.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Delineates the scope of the system

This study focuses on the customers of the fast-food chain – KFC – from the branch of Cubao,

Quezon City, Philippines.

This case is designed to have a thorough knowledge of problems between the customers and

staff/management on having a long time taking up food services.

To the Workers/Staffs. The system provides the staff for proper scheduling to ensure the

important tasks that are covered at appropriate times.

To the Operation Management. The system will transform a company's goal to input provided

needs of staff into services (such as workers and managers).

To the Management. The system helps to make good general business status by having an

accurate benefit on the management and relationship with the customers.

To the Customers. The management of the restaurant will provide the satisfaction of each

customer. Customers are the factors for success (or failure) of a business.

Key Decisions

 What

The main focus of this study is to have proper scheduling for the staff/crew of the fast-food chain.

The management will take responsibility to review the availability of every employee for their

designated time of services.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

 Who

The target beneficiaries of this study are the staff and the customers of KFC Cubao Branch, Quezon

City Philippines.

 Where

The study is focused on the area of KFC Cubao Branch, Quezon City, Philippines.

 When

The researcher started the observation on Nov 2019 and expected to end in January or Feb 2020.

 Why

The researcher observed the delayed processing services of food to the customers. It took a couple

of minutes/an hour to take the orders.

 How

The researcher highly recommends to the management to review properly the time scheduling of

the staffs. Also, management needs to give more attention to the staff because without these

hardworking staffs, there’s no reason for them to run a business without these people.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

DEFINITION OF TERMS

JUST IN TIME (JIT) - A just-in-time system of manufacturing (= producing goods) is based on

preventing waste by producing only the amount of goods needed at a particular time, and not paying to

produce and store more goods than are needed.

Queuing Theory - Queuing theory is the mathematical study of the congestion and delays of waiting in

line. Queuing theory (or "queueing theory") examines every component of waiting in line to be served,

including the arrival process, service process, number of servers, number of system places, and the

number of customers—which might be people, data packets, cars, etc.

KIOSK - a small structure in a public area used for providing information or displaying advertisements,

often incorporating an interactive display screen or screens.

Single-Server Queue. - FIFO is also known as first come, first serve (FCFS) The order of arrival and

departure are the same This observation can be used to simplify the simulation Unless otherwise

specified, assume FIFO with infinite queue capacity. Service is non-preemptive.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

INVESTIGATE ALTERNATIVES

Alternative 1 – Create a new queuing model

In a fast-food chain industry waiting for service in some situation a customer. Many Restaurant owners

are not concerned about this kind of situation about the waiting time of service provided. Though they

don’t want the customers to go to the other competitors' door. There are several factors that need to be

considered especially when the restaurant has attracted so many customers. This factor is the customer

queuing time by this model it can improved the service time and waiting line in line and it can reduce

crowding the servers.

Alternative 2 – Implement JUST IN TIME (JIT)

Other Fast food chain using this system (JIT) to reduce the cost and extremely cutting down inventory

levels and wastages. Mcdonalds was the one using this system to their customers on a daily basis. By

using this it can reduce the time of making the order meals of the customers this system makes the

Mcdonalds number 1 fast-food chain if the KFC use this approach it can excel the productivity and

customer satisfaction.

Alternative 3 – Kiosk Ordering system

In Kiosk, ordering system helps to improve the average check size of the customers. It also helps the

customers navigate through the menu easily and make quick payments. It can also reduce the labor cost,

unlike the employee wages. It can reduce the chance of human errors even though the servers are trained

to repeat the ordered food, human errors are unavoidable especially during rush hour it can also

customize their meal, by the quick service provided it can increase the customer satisfaction.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Model the system

For alternative 1

Based on figure 2 it shows the current design (single Queue Single Server Parallel waiting Line)

Based on figure 3 it shows the proposed design single queue multiple server waiting lines

Overall data gathered was based on 1664 customers, who came to buy their meals (table 1) and the

fastest interval time between customers' arrival was exactly 1 minute and the longest time was 6

minutes. On the other hand, the fastest customer being served was 2 minutes and the longest time was 11

minutes.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

TABLE 1

Interval Time Time

In Frequency Serve Frequency

1 375 1 0

2 372 2 42

3 520 3 114

4 180 4 681

5 98 5 478

6 129 6 207

7 74

8 28

9 7

Total number of

customers 1664 1631

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

By using QM the data collected show the value of  which is a value for the arrival rate per hour and 

is a calculated value for service rate per hour. Therefore, based on the actual event the value of  = 11.56

and the value of  is = 12.9. In order to get the value of  and  more accurate, was used and the average

value of  and  both respectively are 11.56 and 12.90 (Table 2).

Software called QM for Windows was used to determine the efficiency for both waiting line designs since

the value of  and  was calculated. The result of the analysis for each waiting line design can be referred

to in table 3.

Table 3. The Comparison Analysis between Waiting Lines Design

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

By looking at the table, the data showed that the average time a customer had to wait in a queue using th

e Single Server (Parallel) model was 40.12 minutes and that the average time a customer had to wait in t

he process was 44.78minutes.

The average time a customer has to wait in the queue for Multiple Server layout is rising which was 12.0

2 minutes; saving around 70 percent of the waiting time in queue and for the system was 16.67 minutes

which saved 62.7 percent of the waiting time in the process. As referred to the data, the research has

evidence supporting the multiple server design that will improve the quality of the services in KFC. A

good waiting line design will provide better and more conclusive results on how to attract more customers

or even make them faithful to the organization

itself very good design of the waiting line will provide an advantage in order to achieve more advantage

s and succeed in the market even better.

Alternative 2

In order to produce effective production at the lowest possible cost with minimal lead time, reducing wa

ste with high reliability. It does not start cooking the order until a customer places a particular order and

then serves the customer.

Fig 4 process overview

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

The main objectives of the system are:

- Create only what customers watch

- Produce product of good quality

- Minimize waste of material, labor and equipment

Benefits

- Improvement of quality

- Customer Service

- Cost reduction

- Reduction on waiting

This contributes to the output of the required items within a limited time, at the required value and in

the required quantity.

It is an approach to waste disposal Some of the reasons that JIT minimizes are over output, defective

products, stock, waiting time. JIT is an enforced problem-solving system. Managers have the choice

between making enormous efforts to find and solve production problems or learning production

without interruption.

JIT quality is very important because JIT will fail without any quality program. The JIT system is ba

sed on a pull system rather than a push system, based on making items until they are required, where

the Kanban card is used as a signal.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Alternative 3

Fig 5 process overview

Based on Figure 2 the process of ordering of Kiosk machine the customer chooses their order meal and

customizes the order they want to confirm their order to payment.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

Fig 6 process overview from the customer using the app to the server thru API

Based on the fig 3 let Say a guest wants to order something to drink, so to learn what's on the menu,

click the Drinks button. The Can Tho app will respond by sending a query to the server along the lines

of What's on the drink menu? The server processes the request and sends along with their descriptions

and prices a detailed list of drinks.

The server handles the request every time a customer requests something and sends a reply.

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 QUEZON CITY UNIVERSITY
673 Quirino Highway, San Bartolome, Novaliches, Quezon City

College of Engineering
Industrial Engineering Department

REFFERENCES

https://medium.com/@SteelKiwiDev/how-to-build-a-fast-food-restaurant-self-service-ordering-kiosk-

and-payment-system-4bcaf33f6c9d

https://www.ijariit.com/manuscripts/v2i6/V2I6-1167.pdf

http://opepiimraipur.blogspot.com/2011/06/mc-donalds-fast-food-restaurant-jit.html

https://www.unleashedsoftware.com/blog/3-successful-companies-practising-jit-systems

https://www.sciencedirect.com/science/article/pii/S1877042816305237

https://www.researchgate.net/publication/220472067_The_general_employee_scheduling_problem_An_

integration_of_MS_and_AI

https://www.referenceforbusiness.com/history2/99/KFC-Corporation.html

https://www.yum.com/wps/portal/yumbrands/Yumbrands/company/about-yum-brands/milestones

https://www.researchgate.net/publication/273317551_Implementing_supply_chain_strategy

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