PROJECT PAPER ON THE SPANISH

LATTE MAKING BUSINESS

BUSTAMANTE, JERILOU R.
MONTEMAYOR, JOSHUA
SAAVEDRA, ANDREA C.
BS ECONOMICS 3A

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 HISTORY

In the year 2020, specifically in the month of March, our humble beginnings as an online
selling business were born. With great dedication and hard work, we thrived and after a year, we
decided to expand our reach by opening a physical store at Pasonanca Park from November 2020
until March 2021. The challenges of the pandemic did not stop us from pursuing our dreams and
on August 24, 2021, we took a bold step and opened our own stall at the front yard of Pasonanca
where we continue to serve our loyal customers until today.
Our journey started with a delivery service during the pandemic, and for three months, we
worked tirelessly as delivery riders. Through our perseverance and determination, we were able to
save a substantial amount of money, totaling 20,000 pesos. This was a significant turning point in
our entrepreneurial journey as it paved the way for us to venture into the coffee business online.

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 STEPS/TASKS IN THE SYSTEM

Ingredients
• Condense
• Vanilla
• Coffee
• Milk
• Ice

Preparation
Step 1. Prepare Cup
Step 2. Measure condense.
Step 3. Pour the condense into the cup.
Step 4. Pump Vanilla
Step 5. Pour whole fresh milk.
Step 6. froth.
Step 7. Put ice
Step 8. Measure coffee
Step 9. Pour the coffee into the cup.
Step 10. Seal the cup.
Step 11. Serve

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 METHODS CHART

PREPARE CUP MEASURE CONDENSE POUR CONDENSE INTO

POUR IT IN THE
FROTH THE MIXTURE MEASURE VANILLA
MIXTURE

ADD ICE IN THE CUP POUR FRESH MILK MEASURE COFFEE

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 POUR THE COFFEE
SEAL
INTO THE CUP

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Equipment
• Bar spoon
• Measuring glass
• Frothier
• Coffee pot

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yy

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 Extremes

Prepare cups.
1. Not able to separate the cup from the other immediately
2. Not yet expert how to handle the cups
Measure Condense
1. Take time to look for the measure glass
Pour Condense
1. Wait too much for until last drop of Condense
Pump Vanilla
1. Having hard time pumping a vanilla bottle
Froth the mixture.
1. Having no control on how froth the frothing would be.
2. Trusting the instincts for frothing
Put ice on cup.
1. Having a hard time scooping the ice from the ice box.
Pour Whole fresh milk.
1. Measure the milk on her instinct only
Pour coffee.
1. Can’t handle much the hot temperature of the measuring cup.
Seal
1. Having a hard time separating cup seal from the others.
Measure coffee
1. No extremes
Serve
1. No extremes

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 ANALYSIS AND FINDINGS

The proponents observed that for two consecutive days, which were the weekend (Saturday
and Sunday), there was a consistent number of Spanish lattes sold, but the timing differed based
on customer availability. The procedures followed were systematic. The process of making the
Spanish latte was systematic, with steps that took time, such as separating the plastic cup and seal,
which tended to be compressed and hard to separate. During the frothing process, the person
tending to the coffee tended to entertain new customers, resulting in congestion during the process.

Regarding the ingredients used, the proponents noted that if there was a shortage of any
ingredient, the product was marked as sold for the day. The equipment used had spares for each to
reduce inconvenience, especially during rush orders. The proponents also observed that there were
interruptions during production and operation.

As presented on page 1 (A.2 work measurements), the worker's pace varied from faster to
slower than the normal time. The normal pace for the worker to produce and sell a Spanish latte
without any disruption was found to be 39.82 seconds, with a performance rating of 90% for each
process. The given standard time required during production and selling of products was 46.85
seconds, which included the allowance factor of 15% for the worker to clean, wipe their hands,
pick up equipment, and clean their hands. The proponents also computed the sample size of each
process and the variation within the job processes (as referred to in A.2 Work measurements).

The proponents observed that the business used measurements for accuracy except for the
whole milk, as shown in A.3 Work quality. Firstly, the proponents calculated, plotted, and
evaluated the range (R) chart to check if the data was under control. The process and range were
within the control limit. Next, they calculated, plotted, and evaluated the X chart. The sample sizes
were all under the control limit, indicating that the business produced Spanish latte of the required
weight, not below or above the standard weight.

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 RECOMMENDATIONS
1. Identify their target market per week so that they can find the right amount of ingredients to
buy so that they will not just go to waste:
It is important for any business, including food and beverage establishments, to identify their target
market to ensure that they are catering to the right demographic. By identifying their target market,
a food and beverage establishment can determine the amount of ingredients they need to purchase
for the week, minimizing waste and maximizing profit. This approach not only benefits the
establishment but also helps in reducing food waste and contributes to sustainability efforts.
Through careful market research, businesses can determine what their customers want and adjust
their inventory, accordingly, leading to a more successful and sustainable operation in the long run.
2. Look for alternative ingredients in case they run out:
A key aspect of running a food and beverage establishment is ensuring that you always have the
necessary ingredients on hand. However, there are times when certain ingredients may run out,
which can be a major setback for the business. In such situations, it is important to have alternative
ingredients that can be used in place of the original ones. This requires careful planning and
research, as well as a willingness to experiment with different recipes and ingredients. By doing
so, businesses can avoid unnecessary downtime and continue to provide their customers with
quality food and beverages.
3. Invest into more efficient tools:
In today's fast-paced world, efficiency is key to the success of any business. This is especially true
for food and beverage establishments, where time is of the essence. Investing in more efficient
tools, such as commercial-grade kitchen equipment, can help businesses streamline their
operations and improve their overall efficiency. Not only do these tools save time, but they also
increase the quality and consistency of the food and beverages being served. By investing in more
efficient tools, businesses can improve their bottom line and provide a better experience for their
customers.
4. Keep a recipe book as a basis of measurement of ingredients:
A recipe book is an essential tool for any food and beverage establishment. It serves as a reference
for the ingredients and measurements used in each dish, ensuring consistency in taste and quality.
By keeping a recipe book, businesses can minimize errors and waste, while also providing a
reliable basis for training new staff members. Additionally, a recipe book can be used to track the
popularity of certain dishes and adjust the menu, accordingly, leading to increased customer
satisfaction and profitability.
5. Invest in a lesson for the barista to improve his/her skills:
The quality of coffee served can make or break a food and beverage establishment, which is why
investing in the training of baristas is crucial. Providing baristas with the necessary skills and
knowledge to prepare high-quality coffee can significantly enhance the overall customer
experience. Investing in training programs, workshops, or courses can also lead to increased staff
morale and job satisfaction, which can have a positive impact on employee retention and customer
loyalty.

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6. Calibrate for hot coffee:
Serving hot coffee is a basic expectation of any food and beverage establishment. However, serving
coffee that is too hot or too cold can lead to dissatisfaction among customers. Calibrating
equipment, such as coffee machines and thermometers, to ensure that the temperature of the coffee
is consistent can greatly improve customer satisfaction. By providing hot coffee at the ideal
temperature, businesses can improve their reputation and customer loyalty.
7. Rethink of an alternative way of marketing so that they will improve their sales:
Marketing is an essential aspect of any business, including food and beverage establishments.
However, traditional marketing methods may not always be effective, especially in today's digital
age. Businesses need to think outside the box and explore alternative marketing strategies that can
help them reach a wider audience and increase sales. For example, leveraging social media
platforms, influencer marketing, or implementing a loyalty program can be effective ways to
attract and retain customers.

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 SUMMARY AND CONCLUSION

The study conducted by the proponents aimed to analyze the production and operation
process of a Spanish latte business. The observations showed that the sales of Spanish latte were
consistent during weekends, but the time of sales depended on the availability of customers. The
procedures for making Spanish latte were systematic, but there were interruptions during the
production process. The normal pace for producing a Spanish latte without any disruption was
found to be 39.82 seconds, while the standard time required for producing and selling the product
was 46.85 seconds. The proponents also observed that the business used measurement for
accuracy, except for the whole milk. The evaluation of the range and X charts showed that the
business produced Spanish latte that were not below or above the required standard weight.

In conclusion, the study provides insights into the production and operation process of a
Spanish latte business. The findings suggest that the business is systematic and uses measurement
for accuracy, but there are still areas for improvement in terms of managing interruptions during
the production process. The study also highlights the importance of using statistical tools such as
range and X charts to evaluate the quality of the products. Overall, the study provides useful
information for business to optimize its production process and improve its operations.

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