Operations Management
01 Activity
Jollibee
Jollibee is founded by Tony Tan Caktiong. It is one of the largest fast-food
chains in the Philippines. They have more than 1,500 stores globally. Jollibee began
in 1975 as an ice cream shop in Quezon City but they switched to fast food like
burgers and fried chicken. They grew quickly and became one of the largest
fast-food restaurants in the Philippines.
1. How does the company utilize operations management to improve efficiency and
productivity?
● Integration of Technology – Jollibee integrated technology into their business
to achieve efficient production. Jollibee established technologies in their
stores such as Kiosks and Conveyor belts to enhance the production process.
They also use digital technology to expand their services through mobile
apps. This allows customers to purchase their products online, bringing the
Jollibee through their homes.
● Inventory Management - Jollibee also uses exact time inventories so that the
company can see how many products they need at that exact time. This
reduces the storage expenses and ensures the efficient use of all raw
materials. They also ensure the safety of their products from raw material to
the finished products.
● Supply Chain Management - Jollibee has also good supply chain
management. As we observed, Jollibee always has a good stock of products
and services, which means they have a good relationship when it comes to
their suppliers. Aside from the in-time supplies, their products are all in good
quality.
● Facility layout and design - Jollibee’s facility layout is the same as other
fast-food chains but still it provides an efficient and productive production
process for employees to make and serve the best quality of their products.
The facilities enable crews to perform well at work within their respective
areas.
● Maintenance management - This is common especially in the hospitality
industry since most restaurants use equipment to have a more efficient and
effective production. Jollibee ensures that the equipment used in the
production of the foods served is performing well. They ensure that there will
be no downtime in the middle of the operation by having a maintenance
schedule to check whether machines and equipment are still in good
condition.
● Waste Management - Jollibee also has a waste management where they
simply promote saving the environment and using recyclable materials in
serving their products and services. Paper bags and paper straws are being
used as well as the cartons that are used for taking outs. Also, by observing
their stores they have the proper management system which aims not just to
teach but also to set proper waste management as an example for their
customers.
2. Identify at least three specific strategies or techniques the company employs to
minimize waste and reduce costs. Justify how these strategies have contributed to
the company’s efficiency and productivity.
● Energy-saving system - They use energy-saving equipment or systems like,
for example, solar panels to reduce their electricity and water consumption.
By using this, it enables them to reduce their operational costs and also be a
company with sustainability goals. According to Jollibee Food Corporation,
there has been a 21.5% reduction in energy and use ratio in the Ph
manufacturing sites. By applying the energy-saving systems, they can reduce
costs and invest in some other things that they can improve.
● Packaging Sustainability - They implemented strategies to reduce single-use
plastic packaging. They are recycling their plastic packages to use as plastic
bins. Aside from that, Jollibee has been reducing the use of plastic by using
alternatives such as paper bags and strawless drinks, and also they prioritize
reusable wear to promote sustainability. Through sustainability, they will be
more efficient.
3. What challenges or obstacles does the company face in applying these management
principles, how do they address them?
Even though Jollibee is a successful business and even expanded
internationally, there are still challenges that they are facing. Jollibee is still having a
struggle, especially with other global brands. Since the fast food chain is a large
industry, it remains competitive by providing high-quality products and being
consistent in serving its customers. They also are adaptive to changes in demand
which helps them to remain its customers. Recently, they adapted mix n matched
and brought back the Jollisavers as competitors are ahead with Jollibee because of
the market trends but Jollibee had quickly adapted and brought back its loyal
customers.
4. What certification or recognition did the company receive related to its operations
management and total quality management.
1. Halal Certification - Jollibee receives a Halal Certification by the Islamic
Development Department.
2. ISO 9001 Quality Management Systems certification - They got the certificate
as they ensure maintaining food safety standards in the transport, storage,
and distribution of food products.
3. 7-star rating for its best practices on Food Safety and Quality (FSQ) - They
won with their title “One JFC End to End Food Safety and Quality
Management Strategy”. They are also cited as the strongest best practice in
the Process Management and Improvement category.
References:
● N. A. (n.d.). Jollibee History and Milestones. Retrieved from
https://jollibeegroup.com/history-milestones/
● N. A. (n.d.). About Jollibee. Retrieved from https://www.jollibee.com.ph/about/
● N. A. (2019, November 21). Jollibee is leveling up the customer experience by
rolling out self-order kiosks. Retrieved from
https://www.rappler.com/brandrap/announcements/245476-jollibee-self-order-
kiosks/
● N. A. (2023, September 20). JFC Bags Highest Rating for Food Safety,
Quality. Retrieved from
https://www.philstar.com/business/2023/09/20/2297507/jfc-bags-highest-rating
-food-safety-quality
● N. A. (n.d.). Jollibee Group Reinforces Environmental Sustainability Across its
Supply Chain. Retrieved from
https://jollibeegroup.com/news/jollibee-group-reinforces-environmental-sustain
ability-across-its-supply-chain/
● N. A. (2019, September 15). Jollibee receives official halal certification.
Retrieved from
https://www.theborneopost.com/2019/09/15/jollibee-receives-official-halal-certi
fication/
● N. A. (n.d.). Jollibee Group Strengthens Commitment to Food Safety.
Retrieved from
https://jollibeegroup.com/news/jollibee-group-strengthens-commitment-to-food
-safety/
