Presented to the Decision Sciences and Innovation Department

De La Salle University-Manila
TERM 3, A.Y. 2020-2021

A Quality Improvement Plan for Twenty Four Bakeshop

In partial fulfillment of the course

Total Quality Management (COBQUAL K38)

Submitted by:
Abella, Jeremy Ryan G. (11928859)
Chua, Sean Allison D. (11926090)
Francisco, Arnel Jorge II N. (11908688)
Peralta, Jean Christian C. (11922907)
Sy, Czarina Mikaela C. (11929383)

Submitted to:
Mr. Paul Anthony Rodriguez

September 2021
 Table of Content
I. Introduction
A. History and Background of Organization…………………………………………1
B. Products and Services Offered…………………………………………………….1
C. Competitive Advantage…………………………………………………………1-3
1. Demographic………………………………………………………………2
2. Psychographic…………………………………………………………...2-3
3. Behavioral…………………………………………………………………3
4. Geographic………………………………………………………………...3
II. Problem Identification
A. Initial Flowchart………………………………………………………………...4-5
B. Check Sheet……………………………………………………………………..5-8
C. Pareto Diagram………………………………………………………………...8-10
D. Affinity Diagram……………………………………………………………..10-12
E. Ishikawa Fishbone Diagram………………………………………………….13-14
F. 5-Why Technique…………………………………………………………….14-15
G. Main Problem Establishment………………………………………………...15-18
III. HOQ Presentation and Analysis
A. Customer Requirements……………………………………………………...20-21
B. Competitive Profile Matrix…………………………………………………..22-23
C. Technical Responses…………………………………………………………24-25
D. Relationship Matrix………………………………………………………….25-28
E. Technical Correlations……………………………………………………….28-29
F. Technical Matrix……………………………………………………………..29-32
IV. Quality Improvement Recommendations
A. Alternative Courses of Action……………………………………………….32-38
V. Cost of Quality……………………………………………………………………...38-40
VI. Evaluation of Alternatives
A. Decision Matrix……………………………………………………………...40-43
B. Process Decision Program Chart…………………………………………….43-45
C. Improved Flowchart…………………………………………………………45-47
VII. Quality Improvement Time Table………………………………………………..47-50
References………………………………………………………………………………….51-53
Appendix…………………………………………………………………………………...54-57
 I. Introduction
A. History and Background of Organization
Twenty Four Bakeshop is the brainchild of Ms. Anne Janelle Francisco, a juvenile
entrepreneur and zealous baker (Sy, 2019). It began as a home-based online bakeshop, known as
Tiny Bakeshop in 2012 that captivated mostly Lasallians. In June 2019, the organization
rebranded to its current name and in September 2019, they opened their first baking studio at
One Bonifacio High Street Mall, Bonifacio Global City (BGC) (Merced, 2019). Due to popular
demand, Twenty Four Bakeshop was able to open another physical store in Estancia at Capital
Commons before the pandemic.
B. Products and Services Offered
The organization primarily offers 2 types of cookies, which are classified as 1) Core
Flavors and 2) Premium Flavors. The Core Flavors include the 1) Chocolate Chip, 2) Campfire
S’mores and 3) Triple Chocolate, all of which were being served from the beginning of business
operations. In order to promote the element of surprise among its customers, Twenty Four
Bakeshop is able to continuously develop new flavors according to the preference of its
consumers. As of today, the organization has been able to constantly offer 3 premium flavors,
which are 1) Chocolate Walnut, 2) White Chocolate Macadamia and 3) Reese’s Peanut Butter.
Cookies can be purchased in 2 sizes, wherein consumers can choose between 1) palm-sized (125
grams) or 2) party-sized cookies (60 grams). Cookie dough is also sold, wherein it is packaged in
600 grams vacuum packs. Another area of baked goods that the organization ventured out on was
cakes, wherein Twenty Four Bakeshop was able to debut Burnt Basque Cheesecake in mid-June
2020 and Spiced Carrot Cake in February 2021. The flavors of the Burnt Basque Cheesecake
include 1) Vanilla, 2) Ube, 3) Uji Matcha and 4) Sugar-Free Black Sesame, wherein it can be
purchased as 1) small (4 inches) or 2) big (8 inches).
C. Competitive Advantage
The competitive advantage of Twenty Four Bakeshop is that 1) they serve their products
freshly baked and 2) have a strong online presence. Since their physical stores are designed to
have an open kitchen set up, customers are able to have a multi-sensorial experience of the
baking process which encourages them to engage with the organization (Ronquillo, 2019).
Moreover, customers have the option to have their baked goods delivered to their doorsteps, in
which the organization was already able to implement the procedure before the pandemic. This
has guided them to continue having fruitful business operations despite the numerous challenges
brought upon by the uncertainty of the times.

Demographic Psychographic

● Age - (12-30 years old) Primary ● Individuals seeking to satisfy dessert

Market cravings
● Age - (45-60 years old) Secondary ● Explorative Customer Base
Market
● Gender - All Gender Preferences
● Income Class - Socio-Economic Class
(SEC) A to D

Behavioral Target Market

● Presence of Repeat Customers ● Geographic Scope: Metro Manila and

● Increased Engagement during Special Greater Manila Areas
Occasions and Promotional Periods
Table 1: Target Market Analysis of Twenty Four Bakeshop
1. Demographic
The age group of the intended market can be subcategorized into 2 age brackets, wherein
their primary target are students and young professionals (12-30 years old) and
parents/grandparents (45-60 years old). The organization has informed the researchers that the
primary target market has been fond of consuming their product, whereas the secondary target
market has the purchasing power to acquire the products being sold by Twenty Four Bakeshop.
The socioeconomic status of these clients ranges between section A-D, wherein their monthly
income can range from PHP 25,000 and above. In order to satisfy both groups, the organization
tries to formulate premium product offerings that are not so sweet, with the presence of dark
chocolate callets in their cookies to be enjoyed by the older demographic.
2. Psychographic
Twenty Four Bakeshop aims at a consumer base that is composed of individuals who
would like to satisfy their dessert cravings. Timonina (2021) states that indulging in desserts
provides a positive impact on the human body, wherein it constitutes additional happiness for the
consumer. Moreover, the organization has also indicated the presence of an explorative customer
base, wherein their customers want to enjoy different cookie flavors that they consider unique
and scrumptious. In order to reciprocate this manner, Twenty Four Bakeshop strives to release
limited edition flavors on special occasions, in which cookie flavors like Chocolate Peppermint
Crunch and Very Berry were included in their lineup last Christmas and Valentine’s Day
respectively.
3. Behavioral
Customer behaviors identified by the organization is the presence of repeat customers, in
which they have been satisfied with their past orders and engagements, prioritizing the
organization against their customers. Moreover, during promotional periods, Twenty Four
Bakeshop experiences a high volume of orders and engagements in social media sites, wherein
the organization has informed the researchers that the increase is 3 times more from ordinary
operating days.
4. Geographic
The pandemic has played a vital role in the geographical positioning of Twenty Four
Bakeshop, in which the organization believes that with the low foot traffic at shopping centers,
they should be the one striving to bring their products at the doorstep of the consumer. Before the
pandemic, walk-in customers have been the norm in sales generation, wherein it constituted 90%
of sales. However, with the numerous government restrictions at play, many people have decided
to order online and have it delivered to their stated addresses, in which the organization uses a
third party delivery service to transport their products to any location in Metro Manila and the
Greater Manila Area (GMA).
 II. Problem Identification
To identify the main problem, the researchers have decided to utilize different quality
tools to help them further analyze the challenges being faced by Twenty Four Bakeshop. These
assessments can help them understand the initial operations of the organization, affecting
externalities and customer expectations that are necessary in highlighting certain challenges. The
researchers incorporated both primary and secondary data towards data collection, wherein they
would like to gather opinions from the sample on their viewpoints regarding this research. Both
qualitative and quantitative data will be used to strengthen the identification of the problem
aimed to be solved.
A. Initial Flowchart
According to Lynch (2021), a process flowchart is a visual representation that showcases
the arrangement of actions needed to complete a business process. From this, standardization can
be achieved, wherein better employee training, process understanding and quality control can
result from simplifying operations. Through this analysis, the researchers can point out
unnecessary procedures that can be eliminated to further increase workflow efficiency in a
transparent manner (Siderova, n.d.). The flowchart presented in figure 1 highlights the
operational process of Twenty Four Bakeshop, wherein it focuses on how the organization
delivers its product to their customers.
 Figure 1: Initial Process Flowchart of Twenty Four Bakeshop
To begin, the customer will need to visit their selling channel, wherein they can
physically go to their baking studios located in Bonifacio Global City (BGC) and Estancia at
Capital Commons. Even before the pandemic, Twenty Four Bakeshop has already set up online
channels to capture orders, wherein media platforms such as Facebook, Instagram and the
company website can be explored by customers to view the various product offerings. Once
decided, the customer would be asked about their potential order, in which they can select from
the menu list provided. After this, an employee would confirm the order to the customer to make
sure that it is correct. Weir (2017) states that confirmation processes can benefit both parties as
the organization minimizes error in the note taking process while increasing customer
engagement. After the order enters the point-of-sale (POS) system, payment would be
immediately asked so that staff can proceed in preparing the items. Customers can choose from
the various payment options available, wherein online methods such as 1) BDO Bank Transfer,
2) Paymaya, 3) Gcash, 4) BDO Pay Checkout and 5) Paypal are offered upon checkout from the
website. Cash is only accepted as a mode of payment for walk-in customers as the organization
strives to increase security in financial transactions, especially from fraudulent and bogus
customers. The customer would need to show a proof of payment, wherein the employee would
record and verify the transaction before proceeding to the order preparation process. Once the
order is ready, 2 trains of processes can endure, whether the order will be 1) delivered or 2)
picked up. If the customer plans to have it delivered, Twenty Four Bakeshop will be the one
responsible for booking a courier from their baking studio to the delivery address. If dispatched,
the organization will inform the customer that the order is on the way so that they can anticipate
its arrival. On the other hand, if the pick-up option was selected, the organization will provide its
contact details and meet up place within the vicinity of their baking studio so that they can
dispatch the order to its intended recipient. Through this chart, the ordering system of Twenty
Four Bakeshop is placed in chronological order to anticipate and inform its employees on its
intended actions in each process. Improvements in the current flowchart will be presented in the
quality improvement portion of this organizational analysis.
B. Check Sheet
A check sheet is a simplified quality tool that aims to record and present data findings in
a systematic manner, wherein analysis of frequencies of each input will be accounted for within
the span of the data collection period (Neyestani, 2017). The check sheet presented in table 3a
aims to understand the customer requirements of Twenty Four Bakeshop, wherein it was ranked
according to their perception of importance. The data collection period observed in this analysis
began last August 19, 2021 (Thursday) until August 25, 2021 (Wednesday), spanning a time
frame of 7 days. A total of 56 respondents participated in the survey provided by the researchers.

Customer Requirements Rank Number of Respondents

Food Quality 1 49 out of 56

Price Level 2 26 out of 56

Accessibility 3 17 out of 56

Speed of Service 4 16 out of 56

Accommodating Staff 5 19 out of 56

Table 3a: Check Sheet Summary of Respondents about Customer Requirement Importance
To begin, a large majority of the respondents believe that “Food Quality” is the most
important customer requirement that they expect from cookie shops. Out of 56 respondents, 49
of them believe that the quality of food is a central topic in food economics, wherein it should be
placed in high relevance due to revolving consumer trends (Petrescu et al., 2019). The other 7
respondents reasoned out different priorities, wherein 6 of them stated that “Price Level” is the
most important factor while 1 said that “Accessibility” is the prevailing factor for choosing a
cookie shop. Kindly refer to table 3b to view the breakdown of responses for the first priority.

Food Price Level Accessibility Speed of Accommodating

Quality Service Staff

TOTAL 49 6 1 - -
Table 3b: First Priority Breakdown of Responses
Moreover, “Price Level” has become the second most important factor prioritized by
customers towards looking for a cookie shop, wherein 26 respondents believe in this statement.
Compared to table 3b, diversification of respondents were observed, in which many place great
importance on “Food Quality”, garnering 17 responses. Criterions such as “Accessibility”,
“Speed of Service” and “Accommodating Staff” consisted of 13 responses, wherein the customer
requirements received 7 responses, 5 responses and 1 response respectively. Kindly view table 3c
to see the breakdown of responses for the second priority.
 Food Price Level Accessibility Speed of Accommodating
Quality Service Staff

TOTAL 17 26 7 5 1
Table 3c: Second Priority Breakdown of Responses
Furthermore, “Accessibility” is listed in the middle ground, in which 17 responses place
importance on this factor to acquire items from cookie shops. This was followed by “Food
Quality”, garnering 25% of the responses. By integrating this customer requirement, Twenty
Four Bakeshop can increase its reach to more people, earning them potential clients that can
prioritize the brand (Scott, 2018). Kindly refer to table 3d to view the breakdown of responses
for the third priority.

Food Price Level Accessibility Speed of Accommodating

Quality Service Staff

TOTAL 14 10 17 8 7
Table 3d: Third Priority Breakdown of Responses
In addition, “Speed of Service” and “Accessibility” garnered the highest frequency for
the fourth priority, wherein both criterions received a frequency of 16. Since “Accessibility” has
already been chosen as the third priority of customers, “Speed of Service” will be designated to
fill the position. Kindly refer to table 3e to view the breakdown of responses for the fourth
priority.

Food Price Level Accessibility Speed of Accommodating

Quality Service Staff

TOTAL 8 8 16 16 8
Table 3e: Fourth Priority Breakdown of Responses
In conclusion, 19 respondents believe that “Accommodating Staff” is the least important
criterion out of the five requirements stated (refer to table 3f). Due to the limited customer
interaction initiated by the pandemic, many of them might think of this as a delighter rather than
a necessity. Despite this, Twenty Four Bakeshop should consider training their employees to
always be courteous to their customers as this establishes positive public relations, increasing
their competitive advantage especially against organizations that are well-established in the field.

Food Price Level Accessibility Speed of Accommodating

Quality Service Staff
 TOTAL 8 10 12 7 19
Table 3f: Fifth Priority Breakdown of Responses
A graphical representation was constructed using a bar chart for easier analysis of the
survey results. Kindly refer to figure 2 to view the chart constructed by the researchers.

Figure 2: Bar Chart of Customer Requirements

C. Pareto Diagram
Towards constructing a Pareto chart, the researchers will be guided towards identifying
the root focus, wherein analysis of these requirements can aid in prioritizing what criterions have
a greater weight (Hayes, 2021). This thorough investigation can also help organizations,
especially in the food and beverage industry to build a unique proposition because of the rise of
intensive competition in the market. Table 4 showcases a check sheet that was utilized in creating
the diagram, wherein it tries to highlight what customer requirements should Twenty Four
Bakeshop focus on to maintain their presence in the saturated market.

Rank Customer Number of Weight Cumulative Percentage Cumulative

Requirements Responses Weight Percentage

1 Food Quality 49 5 245 54.32% 54.32%

 2 Price Level 26 4 104 23.06% 77.38%

3 Accessibility 17 3 51 11.31% 88.69%

4 Speed of Service 16 2 32 7.10% 95.79%

5 Accommodating 19 1 19 4.21% 100.00%

Staff

Total 451 100.00%

Table 4: Pareto Diagram Computation for Customer Requirements

The computation presented considers the weight of the customers requirement, which
was given a ranking based on priority. In order to derive the cumulative weight, the number of
responses was multiplied by the weight given to each criterion. Moreover, the percentage
computation was derived by dividing the cumulative weight of the criterion with the total
cumulative weight. Kindly refer to figure 3 as it highlights a graphical representation of the
Pareto diagram.

Figure 3: Pareto Diagram of Customer Requirements

The chart incorporates 2 types of graphical tools, which are 1) bar charts and 2) line
charts. The bar chart presents the frequency of each criterion while the line chart showcases the
cumulative percentage from the data set (Lamarre, 2019). Based on this diagram, “Food Quality”
and “Price Level” should be the priority requirements focused by Twenty Four Bakeshop as it
constitutes 77.38% of the sample data gathered. By improving business processes in both
aspects, a large majority of customers will be satisfied with business operations if these priorities
are met and are at par with personal standards. Despite this, the other customer requirements,
which comprises 22.62% of the sample data should also be considered towards quality
improvement as they may also have an impact in the major criterions.
D. Affinity Diagram
Affinity diagrams are utilized to help the researchers connect the various points of
information given by the respondents, wherein they are collected to start brainstorming
initiatives (Dam, 2020). The tool organizes data into groups, in which they are clustered
according to their commonalities. Connections are also listed to generate a wider point of
thinking that can guide the research towards further analysis. Kindly refer to figure 4 to view the
affinity diagram constructed by the researchers.

Figure 4: Affinity Diagram

 The diagram aims to assess the different factors affecting Twenty Four Bakeshop,
wherein they have informed the researchers that they experience a decrease in sales overtime.
Despite the pandemic being at play, deficiencies in the various business functions also hinder the
organization from going in its intended direction towards progress and success. The researchers
highlighted that challenges in 1) Marketing, 2) Production, 3) Distribution and 4) Finance
aspects contribute to the main problem, wherein they should understand the problems pointed out
to improve the current state.
To begin, marketing activities can contribute to sales decline, in which the organization is
placing minimal effort to reach out its customers and maintain an engaging relationship. The lack
of a marketing strategy plan creates a rough road for Twenty Four Bakeshop to sail properly
because of their unawareness on concrete activities that can lead them to fulfilling organizational
objectives. Market segmentation may also become a factor, wherein Twenty Four Bakeshop is
relaying its message to the wrong target audience, thus failing to capture the intended market
they should be catering. A declining online engagement is also felt by the organization due to the
rise of competition, in which other organizations are trying to entice their customer base. These
activities are severely experienced because of the lack of a sustainable marketing budget,
wherein Twenty Four Bakeshop should maximize the minimal investment given to advertising in
order to widen its reach. Despite intensive initiatives in social media marketing, customers
believe that the intended message of the organization is yet to be received, which constitutes the
target market to prioritize competitors.
Moreover, activities in the production phase can also lead to the prevalent effects of the
main problem, wherein the heart and soul of the process flowchart heavily relies on this stage.
Insufficient amount of resources is a prevalent problem that Twenty Four Bakeshop experiences,
wherein delays in the process occur since they would need to purchase the lacking ingredient
first before proceeding in production. Since all products are standardized, customization to
dietary requirements cannot be accommodated. However, the organization has begun offering
keto-friendly items like the Sugar-Free Black Sesame Burnt Basque Cheesecake to customers
who are concerned with their health, in which Stevia is used as sweetener. The variety of
products is also a concern, wherein customers have a limited number of options to choose from.
Delays in the production phase can be segregated into 2 categories, which are 1) tardiness of staff
and 2) time consuming processes. As Twenty Four Bakeshop strives for better operations, they
should consider improving this stage as it is vital in the consumer perspective.
In addition, deficiencies in the distribution side of the business may lead to decreasing
sales as customers will have an unpleasant experience with the organization. Lockdowns
mandated by the Philippine government limits the foot traffic of people, wherein sales from
walk-in customers decreased by approximately 80%. This limitation has forced Twenty Four
Bakeshop to strengthen its online presence to stay afloat in the competitive market. Some
delivery orders experience damage in transit, wherein the delivery rider recklessly operates the
vehicle. As Twenty Four Bakeshop partners with 3rd-party same-day delivery logistics
providers, some of their riders are discourteous to our clients, in which the client associates the
negative experience in the ordering process. Weather conditions can also hurt daily sales, in
which rainy seasons can be associated with less foot traffic and delays in the ordering process of
Twenty Four Bakeshop. Though these experiences are externally controlled, the organization can
continue to innovate new ideas while maintaining traditional values in this process so that
customers can regain their confidence and let the organization bounce back.
Furthermore, the financial performance Twenty Four Bakeshop has been experiencing a
downturn, in which inefficient maximization of resources and rising costs continue to challenge
the organization from being profitable. The low rate of product turnover means that it takes a
relatively longer amount of time before products get sold, wherein it hinders the organization to
stay true to its motto of preparing freshly baked goods. Staggering cost structures also hinder the
profitability of Twenty Four Bakeshop, wherein the organization needs to spend on protective
equipment and daily salaries of their staff despite low sales. Being in the industry for almost 2
years, the organization is constrained on a minimal investment that is solely funded by the
proprietress. As the owner is not well-versed in the accounting sector of the business, utilization
of poor accounting practices are prone, which can lead them to not account additional expenses
incurred on a daily basis. The organization should keep an eye on financial metrics as these will
be indicators of positive business operations. With the different challenges affecting the decrease
of sales, Twenty Four Bakeshop should initiate strategies that can minimize its effect while
maximizing their resources to strengthen the organization to sail across the pandemic.
 E. Ishikawa Fishbone Diagram

Figure 5: Ishikawa Fishbone Diagram

A cause-effect diagram is a visual tool used to logically organize possible causes for a
specific problem or effect by graphically displaying them in increasing detail, suggesting causal
relationships among theories. (Juran, 2018). This cause and effect diagram is sometimes called
an "Ishikawa diagram" because it was invented by Kaoru Ishikawa, or a "fishbone diagram"
because of the way it looks. In order to identify the root causes for the problems of Twenty Four
Bakeshop, the researchers constructed a fishbone diagram in order to sort out the main problem
and relate some of the interactions among the factors affecting a particular process or effect. In
this diagram, the main problem highlighted is the decreasing sales of Twenty Four Bakeshop.
There are many possible reasons that caused this problem, wherein the first two reasons that the
researchers identified is because of lacking marketing activities and the targeting of the wrong
audience. Both of these are related to marketing and possible causes of these are lack of budget,
weak segmentation, low engagement and the limitations brought upon by COVID-19 pandemic.
Especially now, it is challenging to initiate different effective advertising strategies that the
business can utilize. The third reason is because of distribution challenges, wherein
unavailability of courier services, bad weather conditions and government-mandated lockdowns
have been experienced. During rainy days, only few drivers opt to work because of the unsafe
road conditions. The fourth reason is the ineffective payment control measures utilized by the
organization, wherein the current process is slow, thus incurring delay. The organization cannot
begin with production if the customer is not yet paid, which also affects the different business
activities listed in the flowchart. The fifth reason is because of the multiple enhanced community
quarantines or ECQ’s experienced Manila. Because of this, people are limited to go out of their
respective homes, resulting in a drastic decrease of customers. Despite the influx of orders
gathered from media platforms, it still cannot be compared to the number of orders gathered
pre-pandemic. The last reason highlighted is the increase of competition, wherein Twenty Four
Bakeshop is threatened because of the low barriers to entry, meaning bakers can easily enter the
industry. Moveover, since people are getting bored at home, some opted to bake in the
convenience of their homes as a new hobby.
F. 5-Why Technique
The 5-why technique is a questioning method for getting to the bottom of an issue or a
solution and stripping away the layers of symptoms. Sakichi Toyoda coined the strategy,
claiming that "by repeating why five times, the nature of the problem as well as its solution
becomes clear." (American Society for Quality, n.d.). Kindly refer to figure 6 below to view the
5-whys technique constructed by the researchers.

Figure 6: 5-Why Technique

In making the diagram above, the researchers first understood the main problem and
established 5-whys on why Twenty Four Bakeshop is experiencing high production delays;
wherein it then concluded a solution that can help with the main problem. The first established
 why is the lengthy and time consuming payment process at Twenty Four Bakeshop, since all their
payment processes are online. Which makes customers go to their website and scan the code to
pay, after doing so the customer would need to send their proof of payment through email. This
is now why there is a delayed response by the associate, in which the next why is because of the
follow-up messages being directly classified in the spam folder. This is where the next why is
established which is the constant follow-ups of customers whenever they send in late payments.
The last why is then established which is that the payment options of customers are down which
causes the constant follow-ups of customers when they are sending late payments. In order to
alleviate the problem, the researchers then recommended that Twenty Four Bakeshop should
build a system wherein it could immediately alert the bakeshop if a customer's payment is
complete to start their production.
G. Main Problem Establishment
Based on the interview conducted with management, the organization has pointed out that
despite their initiatives to simplify the business process for both internal and external
stakeholders, problems still arise that continue to delay different business activities stated in the
flowchart (refer to figure 1). Towards creating a thorough examination of the main problem
establishment, the researchers have decided to utilize the Failure Mode and Effect Analysis, in
which it highlights potential failures in the business process (Ghosh, 2010). Through this, the
researchers can help the organization in lowering the presence of these process failures while
providing contingency plans to combat the challenge. Kindly refer to table 5 to view the analysis
conducted by the researchers.

Process Potential Potential Severity Potential Occurrence Detectability RPN Recommended

Failure Effect of Rating Causes Rating Rating Action
Mode Failure

Payment Payment Production 6/10 Follow 7/10 4/10 168 Recommend

Confirmation Option is Delay Up Other Payment
Down Messages Options
are Available
Late Send classified
of Payment under Follow Up
by Spam Clients about
Customer Folder Proof of
Payment
Delayed
Response Constantly
by Check Spam
Associate Folder for
 Customer
Inquiries

Table 5: Failure Mode and Effect Analysis (FMEA) of Payment Confirmation Process of Twenty Four Bakeshop
Based on the diagram, the process that can be subject to failure is payment confirmation,
wherein the organization would not proceed in preparing the order unless it has been fully paid
by the customer. This control mechanism was initiated for online transactions, wherein it aims to
protect the organization from fraud. Some of the failures experienced in this activity include 1)
Down System of Payment Option, 2) Late Send of Proof of Payment by Customer and 3)
Delayed Response by Associate. Due to system improvement, some of the online payment
options are not functioning on their scheduled maintenance, which hinders the customer from
paying her order. Furthermore, a manual system of payment verification is currently being
implemented, wherein the customer would select a payment method, manually scan the QR code
from the website and send the proof of payment to the company email address. With this
laboring process, delay can be initiated by the customer or the organization, wherein payment
can be sent or acknowledged late. As payment confirmation has not yet been made, the
production process also incurs a delay, in which frustrates the customer to lose their patience if
expected waiting time is exceeded. The rate of severity garnered a score of 6 points, in which the
effects of this failure has provided serious consequences in the reputation of Twenty Four
Bakeshop. One of the potential causes listed is the direction of follow up messages in the
“Spam” folder, wherein the associate is not able to see the customer responses immediately, thus
incurring additional delay in the process. Occurrence received a score of 7 points, in which a
high number of failures has been experienced by the organization. The organization stated that in
the month of August, around 19 cases involving the same process failure were observed, wherein
they noticed that the potential cause was the primary concern towards late acknowledgement.
The detectability criterion received 4 points, wherein the rate of problem detection is moderately
high. By multiplying all the scores, the Risk Priority Number (RPN) received from this analysis
amounted to 168 points.
The COVID-19 pandemic has become a vital factor in the decrease of sales, Twenty Four
Bakeshop should continue to improve each process present to simplify the customer perspective
of doing business. With the Failure Mode and Effect Analysis (FMEA) conducted, the
researchers can provide recommended actions that can help remedy the exact dilemma being
experienced by Twenty Four Bakeshop. Organizational figures can also attest to this deficiency,
wherein despite the actual time (2.34 minutes) being lower than the acceptable time (2.5
minutes), 38% of online orders received in the month of August exceeded the acceptable time of
payment confirmation. Kindly refer to figure 7 for a Statistical Process Control Chart that
showcases the actual movement of the data sample gathered regarding the time needed for
payment confirmation.

Figure 7: Statistical Process Control Chart of Payment Confirmation Time

Based on the behavior of the data points, random trends can be observed, in which
several up and down movements can be observed. The average actual time (2.34 minutes) has a
black colored horizontal line, wherein hitting it will be the optimal targeted time Twenty Four
Bakeshop is allotted to respond to the customer about payment confirmation queries. Two broken
lines can also be seen, wherein it accounts for the one-sigma and two-sigma limits. The red solid
lines represent the three-sigma limits, more known as the maximum Upper Control Limit (UCL)
and Lower Control Limit (LCL). Between observations 31-37, a purple dot can be viewed near
the two-sigma limit, wherein it means that 4 to 5 data points are outside the one-sigma limit.
With the high frequency of occurrences falling out the one-sigma and two-sigma limits, the
researchers are concerned with the speed of payment confirmation as it is not in line with the
standard they initiated (2.5 minutes). Kindly refer to appendix A1, A2 and A3 for the detailed
analysis on deficiencies in the payment confirmation process.
The problem highlighted severely disrupts important activities in the process flowchart,
wherein production and dispatch activities will be delayed. Understanding the complete
situation, the researchers strive to create quality improvement recommendations that aim to
increase efficiency in the process, in which the organization will need a shorter amount of time to
verify the transaction so that they can immediately proceed to the production process. Short-cuts
are not advised to be altered in the production cycle as it will hurt the quality of products offered,
which is the first priority of 54.32% of the sample.
III. HOQ Presentation and Analysis
 A. Customer Requirements
Customer requirements refer to the specifications or features of a product or service that
are deemed necessary by customers. These requirements motivate customers to buy a product or
service. To determine customer requirements, companies can research their target market to
understand their desires and needs (“20 Common Types of Customer Requirements“, 2021). As
seen above, the house of quality our researchers have laid out 5 customer requirements on their
wants. These customer requirements are all based on consumers and what they want in from
Twenty Four Bakeshop, currently the consumers' wants are Food Quality, Price Levels,
Accessibility, Speed of Service, and Accommodating Staff.

Figure 8a: Customer Requirement of Twenty Four Bakeshop

The researchers ranked their importance on a scale of 1-5, wherein 1 is the lowest while 5
is the highest. This was gathered from the survey questionnaire released, in which the
respondents were asked about their expectations towards looking for cookie shops. Table 6
showcases the different customer requirements enumerated and its location in the RATER model
of customer service.

Customer Requirements RATER Model Factor

Speed of Service Reliability

 Food Quality Assurance

Accessibility Tangibles

Accommodating Staff Empathy

Price Levels Responsiveness

Table 6: RATER Model of Customer Service Factors for Twenty Four Bakeshop
Food Quality received a score of 5.0 because it will truly affect the entire customer
experience, whereas if customers are not satisfied with the product offering, it can lead them to
shift away to potential competitors. Next, the Price Level also affects the decision making of
customers as they want to receive more value in their products. If a cookie is priced too high or
showcases minimal value, customers can choose to go to different organizations as they can
produce more value. Moving on to the third factor, Accessibility refers to the interaction made
between stakeholders, wherein channels are maintained so that customers can reach out to the
organization. The pandemic has shifted customer trends and spending patterns to integrate the
use of digital technologies, in which this avenue is utilized towards the purchase of goods and
services. On the other hand, a score of 2.0 was given to the speed of service, wherein many
customers are lenient with transportation time due to the intensive traffic congestion experienced
in Metro Manila. Though it minimally affects the overall experience, Twenty Four Bakeshop
should conduct improvement activities to maximize its time. The survey results state that the
most unimportant factor is Accommodating Staff, since consumers usually order online which
entails minimal face-to-face interaction. This analysis can help Twenty Four Bakeshop prioritize
the different developmental strategies it aims to achieve and its impact to the primary and
secondary customer base.
 B. Competitive Profile Matrix
The analysis of competitors is done to understand the strengths and weaknesses of the
different players in the industry. It is important for Twenty Four Bakeshop to analyze its
competitive environment as it can recognize on how to improve its business strategies. With this,
a competitive advantage can prevail against other rival organizations. Kindly refer to figure 8b to
view the Competitive Profile Matrix conducted by the researchers.

Figure 8b: Competitive Profile Matrix of Twenty Four Bakeshop

The scores displayed in the table below are the average scores gathered from the survey
conducted. The factors that were taken into consideration are food quality, price levels,
accessibility, speed of service, and accommodating staff, which are usually the aspects customers
look at to rate the performance of cookie shops. Moreover, the matrix shows a side-by-side
comparison of 6 bakeshops namely, Twenty Four Bakeshop, Mo's Cookies, Ben's Cookies,
Scout's Honor, Mood Bake and The Kind Cookie. At the bottom row, the overall average score
of each bakeshop is shown. Kindly refer to table 7 as it showcases the scores received by
different organizations from the survey conducted.

Twenty Mo’s Ben’s Scout’s Mood The Kind

Four Cookies Cookies Honor Bake Cookie
Bakeshop
 Food Quality 5.11 4.47 3.70 3.72 3.44 2.96

Price Levels 4.74 3.98 3.68 3.77 3.67 3.33

Accessibility 4.82 4.81 3.58 3.91 3.84 3.12

Speed of Service 4.65 4.53 3.82 3.89 3.84 3.60

Accommodating 5.05 4.47 3.70 3.93 3.91 3.37

Staff

Average 4.87 4.45 3.70 3.84 3.74 3.28

Table 7: Computation for Competitive Profile Matrix
Each value corresponds to the average of scores respondents gave for each criterion. On
the survey, respondents rated each bakeshop from 1-6 (6 being the highest) based on each factor.
From this, Twenty Four Bakeshop scored the highest across all aspects, with its overall score of
4.87. This indicates that the overall performance of the company is superb. It has a very good
competitive advantage over its rivals. Mo’s Cookies scored very well also with its score of 4.45.
Out of all the factors, accessibility scored (4.81) the highest which indicates its prevalent
presence in the market. With its many branches across NCR and its large support from the
Moment Group, customers find it convenient to reach out with the organization. It also scored
well for its accommodating staff and food quality (both 4.47), which are very important factors
for a successful business. On the other hand, The Kind Cookie scored (3.28) the lowest across all
factors. Since it is an online store, customers may not be yet aware about this brand which may
have negatively impacted the results received. Unlike its competitors that have a big brand and
physical branches, the Kind Cookie is at a disadvantage.
In conclusion, Twenty Four Bakeshop received the highest overall score especially with
regards to Food Quality. This signifies that the goods produced are made of premium ingredients
, ensuring freshness in product offerings and providing great value to their items. Next to Twenty
Four Bakeshop, Mo's Cookies also had very high ratings, specifically in the accessibility portion.
This is because of its prevalent presence within the market which makes it easy for customers to
order. Despite the high results, Twenty Four Bakeshop should constantly monitor its processes to
continually satisfy the demands of its consumers.
 C. Technical Responses
Technical requirements are the technical issues that must be considered to successfully
complete a project, wherein these can include aspects such as performance, reliability, and
availability. It describes the technical aspects and issues that an organization needs to address for
the project to have a successful execution. Implemented solutions are also listed in detail to
create an understanding on the backbone and expected target the organization aims to achieve
(“Technical Requirements”, 2021). In this scenario, Twenty Four Bake Shop was able to point
out 5 technical responses and the direction of improvement needed so that they are guided on the
materialization of courses of action. .

Figure 8c: Technical Responses of Twenty Four Bakeshop

To begin, Standardization of Size, Weight and Thickness of products refers to the
consistency of product results, wherein Twenty Four Bakeshops aims towards consistency. The
direction of improvement leans on the target aspect since Twenty Four Bakeshop highlights this
technical requirement to be the focal point in their operational model, affecting the outcome of
its products. The second technical response is the creation of Appealing Media Platforms and
Channels, wherein the organization plans to maximize these platforms to add credibility,
increasing Facebook and Instagram post engagements in hopes of gaining more viewers and
followers. The third technical response refers to the creation of a Functional Store Design, in
which the organization would strive to maximize the small stores space they have to complete
the different business activities. The fourth technical response is the Delivery Time and Product
Transport, in which the organization attempts to minimize the time required so that customers are
able to receive their items in the shortest time possible. The last technical response is the
Production Cost, wherein the organization aspires to minimize costs, without sacrificing product
quality so that they can incur more profit that can help Twenty Four Bakeshop rise from the
disastrous effects of the pandemic.
D. Relationship Matrix
The matrix compares the customer requirements and technical responses, wherein it will
assess the relationship between each of the variables presented. A rating will be given, in which
these symbols will indicate if both statements have a 1) weak relationship, 2) moderate
relationship and 3) strong relationship. Kindly refer to figure 8d to view the relationship matrix
conducted by the researchers as part of the House of Quality.

Figure 8d: Relationship Matrix of Twenty Four Bakeshop

The first customer requirement listed in the matrix is “Food Quality”, in which it touches
on the standard of ingredients used by Twenty Four Bakeshop in the production process. It also
focuses on the main output, wherein the end product should satisfy the taste buds of its customer
and match their expectations. It garnered the largest weight of importance, receiving a score of 5
points or 33% of the relative weight. The said requirement can identify a relationship with 2
technical responses, wherein both received a strong relationship. To emphasize, “Food Quality”
and “Standardized Size, Weight and Thickness” received the highest symbol as both experience a
two way causality. If the functional requirement is to be followed, the tendency is that “Food
Quality” offered by Twenty Four Bakeshop will also increase since it follows a procedure that
releases consistent results. Furthermore, “Food Quality” and “Production Cost” also experiences
a positive linear relationship, wherein quality ingredients cost more. To increase the level of
“Food Quality”, Twenty Four Bakeshop does not mind spending more on their ingredients,
especially if it will increase customer engagement. The organization conducts quality
improvements in their products to ensure that consistency and satisfaction is met in high
frequencies.
The second customer requirement listed is “Price Levels”, wherein it tackles on the
pricing mechanisms utilized by Twenty Four Bakeshop. Being located in the metropolitan area,
the organization makes sure that their pricing strategies are in line with market standards. “Price
Level” received 4 points based on the check sheet conducted by the researchers, accounting for
26.7% of the relative weight. To begin, “Price Level” has a significant impact on “Standardized
Size, Weight and Thickness” because it affects the amount received by the technical requirement.
As the organization needs to maintain a profit, management might decide to lower the weight of
the products to produce more, offsetting the staggering costs. “Price Level” also has a strong
relationship with “Production Cost” because it is the basis on estimated cost to produce the
product. Thirdly, a moderate relationship is experienced between “Price Level” and “Appealing
Media Platforms and Channels” due to the additional expenses utilized to maintain these
platforms in the standard of the organization. Twenty Four Bakeshop can use this reasoning to
increase the prices of its products for intensifying profit generation, offsetting the costs
associated. Lastly, there is a weak relationship between “Price Level” and “Functional Store
Design”, wherein costs coming from operational activities can somehow affect the pricing of
Twenty Four Bakeshop products. As these expenses are calculated to increase efficiency, it can
help the organization improve its process and save financial capital in the long run.
The third customer requirement highlighted by the researchers is “Accessibility”, in
which it focuses on the ease of customers connecting with the organization. Even before the
pandemic, Twenty Four Bakeshop has already initiated the creation of digital media platforms
that can help them cater to customers without them needing to physically visit their baking
studios. Based on the check sheet presented, the customer requirement received a relative weight
of 20%, garnering an importance score of 3 points. A strong relationship is experienced between
“Accessibility” and “”Appealing Media Platforms and Channels”, in which a good media
platform can help more customers access the different products of the business, as well as other
inquiries such as payments, locations, and frequently asked questions (FAQs). The customers can
have a better experience if the process of engagement is simplified and widened, wherein Twenty
Four Bakeshop uses its full potential to bridge both parties. Moreover, “Accessibility” and
“Functional Store Design” also received a strong relationship, in which it gives both the
customers and employees convenience, wherein the former can visit a well-presented baking
studio while the latter simplifies the process of production. “Accessibility” and “Delivery Time
and Product Transport” received a moderate relationship, wherein customers can choose and
decide on the time and location of delivery of their orders.
The fourth customer requirement is “Speed of Service”, wherein it refers to the speed in
which customer accommodations are acted upon by the organization. The customer requirement
received a score of 2 points, wherein a relative weight of 13.3% was received. In prominence, the
“Speed of Service” has a strong relationship with the “Standardized Size, Weight, and
Thickness” technical response due to the process of production being simplified. If the quantity
of the order is large, it will take a longer amount of time for preparation. However, the technical
response guides the employees to maintain consistency in the products being baked.
Furthermore, the “Speed of Service” also has a strong relationship with “Delivery Time and
Product Transport”, in which a lower amount of time needed for delivery can truly increase
satisfaction of customers because of the convenience brought about by speed of transport.
Despite this, external factors contribute to the relationship experienced of both variables, wherein
a causality effect occurs. Lastly, there is a moderate relationship between “Speed of Service” and
“Functional Store Design”, wherein the design process of store layout can contribute to the
simplified production process, positively affecting the speed of service in terms of converting
inputs to outputs.
The last customer requirement in the matrix is “Accommodating Staff”, in which it
tackles the friendliness of internal organizational members in assisting the various demands of its
customer base. Since service is one of the most prevalent factors customers seek in an
organization, Twenty Four Bakeshop constantly reminds its staff to execute professionalism in
their work to bring out positive vibes towards the customers. From the matrix, the requirement
received a score of 1 point having a relative importance weight of 6.7%. Strong relationships
were seen between “Accommodating Staff” with “Appealing Media Platforms and Channels”
and “Functional Store Design”, which signals the importance of both technical responses
towards the customer requirement. The first technical response bridges both variables, wherein it
can entice online customers to constantly engage with the organization, increasing the probability
of higher sales generation. On the other hand, a well-planned store design integrating the
customer requirement leads to the creation of a positive atmosphere in the workplace, in which
fellow workers strive for continuous improvement that is in line with the goals and objectives of
Twenty Four Bakeshop to become a contender in the industry.
E. Technical Correlations
The different technical requirements pointed out by the researchers can possess a
relationship with each other, wherein the roof of the House of Quality aims to assess whether
causality effects can occur. These are denoted using symbols, wherein strong and moderate,
positive and negative correlations may result from the analysis. Kindly refer to figure 8e to view
the technical correlations being assessed by the researchers.

Figure 8e: Technical Correlations of Twenty Four Bakeshop

From the diagram, 4 correlational analysis can be concluded, in which the researchers
will expound on the justification behind the relationship experienced between the 2 variables. To
begin, “Standardized Size, Weight and Thickness” and “Delivery Time and Product Transport”
received a strong positive correlation, wherein the creation of simplified and consistent
procedures can speed up the operational flow of Twenty Four Bakeshop. Through this, the
organization can incur less time in the transition of orders to the customer, achieving an earlier
dispatchment. Moreover, a strong positive correlation can also be experienced between
“Appealing Media Platforms and Channels” and “Functional Store Design”, wherein both need
to remain a positive image to increase the credibility of public perception towards the brand. The
first criterion focuses on the online presence of Twenty Four Bakeshop while the second criterion
is responsible for the on site presence, in which customers can physically use their 5 senses and
create judgement. In addition, a moderate positive correlation will occur between “Functional
Store Design” and “Delivery Time and Product Transport”, in which the layout used by Twenty
Four Bakeshop in the construction of their baking studios can increase efficiency in the
production process. With this, products can be dispatched at an earlier time, reaching the
customers before the intended schedule. Furthermore, a moderate positive correlation is also
experienced with “Standardized Size, Weight and Thickness” and “Production Cost”, wherein
increasing the benchmark sizes of the different products will increase the costs associated to
production, in which direct materials will be severely affected. However, minimal price
fluctuations can be seen in these goods, wherein they can positively or negatively affect the
profitability of operation. Though a causality can be experienced, its severity is dictated by
market-oriented factors. By identifying these correlations, the researchers can assess if the
different technical requirements highlighted can have an impact with one another, in which it can
affect the outcome derived by the House of Quality.
F. Technical Matrix
On the bottom of the House of Quality, a technical matrix was also conducted to
emphasize the assessment of the targeted output of technical responses and the difficulty of
achieving such criterions. It also highlights what requirements to focus on by rating each
response with a weighted score out of the functional requirements listed. Kindly refer to figure 8f
to view the technical matrix conducted by the researchers.
 Figure 8f: Technical Correlations of Twenty Four Bakeshop
Standards in the production process can help the organization maintain its reputation in
the market, in which customers seek consistency in the quality of food it serves. Targets are
initiated by management to its staff so that they are aware of the expected output it wants
customers to receive. To begin, cookie sizes can be classified under 2 categories, which are 1)
Palm-Sized and 2) Party-Sized. According to management, palm-sized cookies should
approximately weigh 125g and have a thickness of 1 inch, while party-sized cookies should have
an approximate weight of 60g and thickness of 0.5 inch. Furthermore, Burnt Basque
Cheesecakes are mixed per batch, in which the organization does not encourage creating half
mixes as the taste of the cheesecake can suffer. In their calculations, 1 mix can create 1-8” Burnt
Basque Cheesecake or 5-4” Burnt Basque Cheesecake, wherein management instructs staff when
to bake due to minimal orders of the said item. It gathered the lowest difficulty rating, wherein
Twenty Four Bakeshop received a score of 4. The organization has already trained its staff to
execute proper measures in the baking process, wherein recipes include the exact number of
ingredients needed and quantity needed. Measuring equipment is also readily available in their
baking studios for product standardization, wherein a small rate of error is expected if the
production process is followed thoroughly. The technical response received a score of 660,
wherein it constitutes 32.9% of the sample. As it received the highest relative weight, Twenty
Four Bakeshop should continue to effectively initiate control mechanisms in the production of
baked goods by instilling expected standards to its employees. By maintaining this step, the
organization can continue to produce quality products, making them a competitive player in the
Metro Manila cookie industry.
 Moreover, maintaining costs associated with production can guide Twenty Four
Bakeshop to remain profitable, wherein they impose high mark up rates to cover the different
expenses incurred. The target rate of production cost is maxed at 25%, wherein the organization
strives to spend as little as possible to maximize returns. In order to materialize this initiative, the
organization tries to canvas its ingredients from different suppliers, wherein they choose the one
that provides the most value. It received a difficulty score of 8, in which the staggering increases
of prices are not within the control of the organization. Through the practice of economies of
scale, the organization can minimize the cost per unit, increasing the profit received per item.
The score received by this technical response totaled to 540, in which it accounts for 26.9% of
the sample. It was able to receive the 2nd highest relative weight, in which great importance in
maintaining cost structure should be implemented so that the organization can continue to stay
afloat, especially in their finances to remain in the industry even after the pandemic.
In addition, maintaining active media pages can help Twenty Four Bakeshop engage with
its customer base, which helps link both parties to interact. According to Mathradas (2021),
digital commerce has become a rising industry, wherein the pandemic encouraged more people
to shift out of traditional methods due to restrictions that limit human interaction. With this
upward trend, organizations should maximize the resources available to their advantage, making
sure that these developments are in line with organizational goals. As Twenty Four Bakeshop
continues to improve its media presence, it targets to post at least 1 Facebook Post every month,
wherein investment in boosting activities will be materialized to widen and target its exact
audience. Likewise, the organization expects that they will also publish at least 2 Instagram
Stories per day, wherein information of operating schedule and menu lists will be posted to
inform potential customers. The difficulty of reaching the target output is given a rating of 5,
wherein budget constraints hinder the organization to initiate marketing activities. Human errors
are also prone to occur, in which the associate in charge might forget to post content, hindering
potential customers from purchasing. The functional requirement was able to receive 320 points,
wherein a relative weight of 15.9% was received. Errors in this initiative should be minimized as
it limits the organization to alert its target audience, wherein decrease in sales will occur once it
is not acted upon.
Furthermore, creating a functional store design can help internal stakeholders, especially
the employees to maximize the area available to conduct their work effectively. Being a micro
enterprise, lease charges can hurt the organization as rates are computer per square meter. To
effectively utilize the space, Twenty Four Bakeshop targets to build a functional baking studio
using a 7 square meter floor space, wherein inputs from an interior designer is accounted for to
match the different needs of the organization. The difficulty of this alternative was given a score
of 6, wherein despite the challenges presented, the organization should consult these limitations
immediately to give action upon. As a maximum of 3 employees are on duty per shift, the space
provided is enough and overcrowding is controlled. The technical response was able to receive a
relative weight of 15.3%, getting a total score of 306.7. Despite the functional requirement being
ranked low, Twenty Four Bakeshop should place an importance on their store design as its
creation might lead to a slowdown of the operating process. Making it presentable also attracts
walk-in customers to stop by and observe the production process at their baking studios, making
customers increase their curiosity.
The transport of orders from the stores of Twenty Four Bakeshop to the customers
continues to bridge both parties from having constant engagement, wherein the latter is given the
opportunity to prioritize the products of Twenty Four Bakeshop in the comfort of their
residences. As government-mandated lockdowns continue to limit movement of people, the
organization decided that they should spearhead initiatives that give customers the option to
deliver their orders, whereas it was vice versa pre-pandemic. The organization targets that
customers should receive their orders 45 minutes after leaving store premises to ensure that order
is freshly made. The difficulty rating of this functional requirement was given a score of 7,
wherein challenges in the logistics aspect such as unavailability of in-house riders, traffic
congestion and miscommunication hinder the organization to achieve the target. The response
was able to receive a score of 180, garnering a relative weight of 9%. Despite receiving the
lowest percentage, Twenty Four Bakeshop should consider improvements in this phase so that
customers are able to receive their orders immediately and satisfy their food cravings.
IV. Quality Improvement Recommendations
A. Alternative Courses of Action
To aid Twenty Four Bakeshop in resolving the dilemma regarding the slow confirmation
process of payment, the researchers propose 3 alternatives to help them improve their current
state. These suggestions will guide the different stakeholders such as the employees,
management and customers to achieve an equilibrium, wherein internal stakeholders can do their
jobs well to satisfy the demand placed by external stakeholders. These are designed to assist
Twenty Four Bakeshop in minimizing the rate of late confirmation, helping them implement the
alternative from beginning till the end. Kindly refer to figure 9 to view the Tree Diagram
conducted by the researchers towards implementing the courses of action suggested.

Figure 9: Tree Diagram of Alternative Courses of Action for Twenty Four Bakeshop
1. Partnership with Payment Gateway Providers for E-Commerce Plug-Ins in
Organizational Website
Twenty Four Bakeshop is currently experiencing inconsistent minutes in the
acknowledgement of payment confirmation, wherein delay in this process can lead to a domino
effect in the different business activities stated in the flowchart. In order to efficiently accept and
account for payments, the organization should consider partnering with payment gateway
providers and integrate their services in the organizational website. According to Fernando
(2021), this type of technology is utilized by merchants in accepting various modes of payment,
in which portals will appear at the payment section page for customers to choose from. This
integration is truly a key constituent in processing of electronic payment, wherein the technology
will just need to require customers to input their details and automatically confirms to them once
it has been transferred to the organization. On the backend, orders utilizing this type of
advancement will also automatically showcase the order as “Paid”, in which the current process
would require the associate to manually mark the order based on its status.
Towards analyzing the advantages and disadvantages of the alternative, the researchers
highly suggest Twenty Four Bakeshop to consider the services of Paymongo in easing the
payment confirmation process it has in its organizational website. To begin, Paymongo is a
Filipino-owned fintech startup that began operations in June 2019, wherein the organization has
already processed $20 million worth of payments since its debut (Shu, 2020). They also offer
different types of payment methods depending on the circumstance of the organization, in which
they offer credit card and digital wallet platforms, allowing these options to be integrated in the
payment Artificial Programming Interface (API) of the website or send manual payment links to
customers towards proceeding with their transactions. The payment gateway provider does not
charge installation and monthly fees, however, they charge depending on the amount of
transactions processed using their technology, in which a 1.5% - 3.5% charge is accounted for as
Paymongo Fee (“Our Pricing”, n.d.). As 40 respondents (72%) of the sample stated that they are
willing to spend PHP 400 and less, this structure can make costs outweigh the benefits as these
minimal fees can accumulate easily (Charlton, 2020). Kindly refer to appendix B to view the
spending patterns of Twenty Four Bakeshop clients. Though an account manager is responsible
for managing the affairs between Twenty Four Bakeshop and Paymongo, challenges that may
arise cannot be responded immediately due to the large volume of accounts held by a single
position.
Twenty Four Bakeshop should strongly contemplate the partnership with payment
gateway providers such as Paymongo since it 1) simplifies the payment process and 2) eases the
implementation of confirmation in both frontend and backend operations. Once the customer
chooses the payment option of their choice, they will be redirected to an online platform wherein
they can simply input their payment details and confirm whether the transaction is accurate. If
the payment was approved, the customer will be informed through SMS that payment was
transferred to Twenty Four Bakeshop. After this, the associate will be the one to relay the order
to the respective location, in which they will be informed using the Viber platform before
operating hours. If the organization decides to utilize the advancement, they will be guided on
how to install the plug-in application in their e-commerce platform. This would be achieved by
conducting merchant training, wherein the organization can ask questions and clarify processes
with Paymongo so that they can efficiently maximize the benefits brought upon by the payment
gateway provider. Through this development, the process of payment confirmation would
increase its consistency since a developed and tested system will be the one to collect and inform
them once payment has been made, especially in their organizational website.
2. Integration of Cloud Based Servers in the Transition of Orders from Online
Platform to Baking Studio
As the organization is currently experiencing delays in the different business activities
after the payment confirmation process, the researchers strive to simplify the communication
process by integrating a cloud based server in both of its branches. For this course of action to
materialize, the associate would be responsible for listing all orders in a spreadsheet that came
from online platforms, which include Facebook, Instagram and Website. This will be done on a
daily basis, wherein the sheet will inform the staff of Twenty Four Bakeshop about the customer
details, specific orders and a total number of items needed to produce. This can be done by
initially sharing a document that is accessible between members of the organization, in which the
associate will be responsible for fixing the details needed by both baking studios. Once Twenty
Four Bakeshop has identified that their frontline staff are capable of operating the system on their
own, access to e-commerce dashboards will be given to them so that they can easily retrieve the
orders and proceed with production. Future plans also include the development of an
independent system that can ease the transition of information, lessening the presence of a
middleman in segregating data.
Mister (2019) has highlighted the prevalence of cloud storage in the 21st century, in
which it empowers the access of relevant information in a remote manner. Despite this,
advantages and disadvantages can still result with the implementation of this alternative. To
begin, Twenty Four Bakeshop can utilize most of its existing resources for the initial setup,
wherein they can download the Google Drive and Google Sheets applications in their iPad that
also acts as their point-of-sale (POS) system. This can save them a staggering amount of cost as
the purchase of hardware equipment is unnecessary. Furthermore, utilizing cloud storage
strengthens the accessibility of data because it can be easily retrieved with the presence of
internet connection. Providers of cloud storage also place a high premium in data security,
wherein they have added layers of protection to safeguard the information placed in these
databases. However, implementing the alternative would require constant training and expertise
since complexities can arise from the system (Kacik, 2021). If Twenty Four Bakeshop aims to
use an established platform, they are unable to customize it to their needs as the industry includes
large market players that continue to dominate their respective industries.
In the materialization of this alternative, Twenty Four Bakeshop should consider two
trains of thought, which include the 1) technical side and 2) human resources aspect. Embracing
cloud based technology can drive developments that can help the organization to speed up the
operational process, wherein they will be alerted if orders have entered the system and fully paid.
Through this analysis, Twenty Four Bakeshop can proceed in the production process
immediately, giving both branches the liberty to independently check the system without the
need of a middle man. Despite the convenience in retrieving data, the technology also ensures
that data privacy is observed at all times, protecting consumers from any external threat. On the
other hand, staff of Twenty Four Bakeshop will also learn a new skill that is quite technical,
wherein to guide them to increase their awareness about this development, workshops, seminars
and simulation activities will be conducted to give them a glimpse into the operational side. The
learning curve would need to be implemented on a gradual basis, so that staff from both branches
can adapt to the new system, passing down the business functions as the organization believes
that they are capable of doing these additional responsibilities.
3. Collaboration with Third-Party Online Delivery Platforms as Partner Merchant
Currently, Twenty Four Bakeshop is striving to maximize its online presence, wherein
they believe that being present in more platforms can widen their reach to more customers. In
order to make this a reality, the organization should consider collaborating with third-party
delivery platforms like Food Panda, Grab Food and Pick A Roo as they have created an online
marketplace that caters to different essentials. As they have built a sustainable process of
receiving orders and product transportation, Twenty Four Bakeshop can integrate themselves in
their current system to increase their distribution channels. Since the organization implements a
cut off time of 12:00 noon for same day deliveries, they can highly encourage customers to order
via these applications so that they can commit to same day delivery. Towards the payment
process, these delivery platforms offer a wide variety of payment options, which include Cash on
Delivery (through Purchase Service), Gcash, Paymaya, Credit and Debit Cards. Logistical
challenges are also minimized since these platforms have a wide connection of delivery riders
that are available throughout the geographical scope of Metro Manila. In terms of transferring
payment from the third-party delivery platform to Twenty Four Bakeshop, they can require the
organization to link their bank account in the application process so that payments will be wired
on a monthly basis.
The pandemic has shifted consumer trends, especially with the purchase of food-related
items due to government-mandated regulations that hinder organizations to allow dine-in
customers. Though Twenty Four Bakeshop’s store layout is designed to operate as a kiosk, they
were also affected by this policy as it limited the number of patrons dining out. By implementing
this alternative, numerous advantages and disadvantages can arise, wherein the organization
should consider each idea as it might affect the long term operation of Twenty Four Bakeshop.
To begin, partnering with these online applications will widen the customer reach of the
organization, in which these platforms can introduce Twenty Four Bakeshop to a new set of
demographics (Pura, 2018). With their strong presence in the market, these institutions can also
intensify the marketing strategies of the primary organization by helping them publish collateral
and increasing customer engagement. Their wide network can also provide support in the
operational perspective so that merchants can focus on providing quality products and outputs.
Despite this, maintaining this alternative can be costly as a large percentage of total sales will be
accounted for as payment for using the platform. Organizations also have minimal control over
the output received by the customers, as system and logistical challenges may arise that are not
within their jurisdiction of expertise. As many people are utilizing these platforms due to their
dominance, customers are overwhelmed with the various number of choices, creating a saturated
market.
This alternative can help Twenty Four Bakeshop in dominating the Philippine cookie
shop market, wherein various channels are bound to be born if a collaboration was made. The
organization is highly considering this alternative as it can serve as an additional arm for
marketing purposes and create system improvements, especially in the acquisition of same day
orders. The cutoff time listed in the website serves as a limitation for the organization to have a
smooth operational flow, wherein promoting this alternative can ease the payment process, and at
the same time, let Twenty Four Bakeshop focus on maintaining quality in their outputs. As the
system used by these online platforms can include technical processes, merchant training will be
required before opening the platform, in which a device will be needed to track the different
orders present in the app. Though these platforms have separate devices, all of them have a
similar process that is easy to follow.
V. Cost of Quality
The cost of quality is a way for assessing the costs that businesses pay in ensuring that
their products meet quality standards, as well as the costs of manufacturing goods that fail to
meet these quality standards. The purpose of cost of quality is to have a better knowledge of how
quality affects the bottom line. Both factors matter, whether it's the cost of waste and rework
associated with poor quality or the cost of audits and maintenance connected with good quality
(Tulip, n.d.). Businesses can use the cost of quality to analyze and improve their quality
operations. Kindly view table 8 to see the Cost of Quality computation done by the researchers in
assessing the alternatives suggested.

Cost of Cost of Total

Conformance Non-Conformance

1st Alternative Paymongo Fee - Average Online Sales PHP 25,214.71

PHP 4,104.72 - PHP 117,277.70
(PHP 117,277.70 x
3.5%) Rate of Increase -
25%

Total Additional
Sales - PHP
29,319.43

2nd Alternative Cloud Server - PHP Average Online Sales PHP 1,727.77
3,000 - PHP 117,277.70

Spreadsheet Rate of Increase

Development - PHP Projected - 10%
5,000
Total Additional
Internet - PHP 1,500 Sales - PHP
(per month) 11,727.77

1 Day Training
Seminar - PHP 500

Total : PHP 10,000

3rd Alternative Delivery Application Number of PHP 13,500

Device (Food Panda) Applications - 4
 - PHP 1,000 (rental)
Targeted Sales Per
Miscellaneous Application - PHP
Expenses - PHP 500 6,000

Brand New Total: PHP 24,000

Smartphone - PHP
5,000

Total: PHP 6,500

Total PHP 20,604.72 PHP 65,047.20 PHP 44,442.48

Table 8: Cost of Quality for Alternative Implementation
The first initiative that the researchers proposed is the Partnership with Payment Gateway
Providers for E-Commerce Plug-Ins in Organizational Website. For this to be implemented,
Twenty Four Bakeshop needs to partner up with Paymongo to solve the delays happening in the
payment process. The cost associated in setting up this course of action only includes the
payment of Paymongo Fee, in which it is calculated by getting a maximum of 3.5% of all online
orders entering the system. As Twenty Four Bakeshop garnered an average online sales of PHP
117,277.70, the researchers then computed that PHP 4,104.72 will be the estimated cost for using
the platform. This cost is important as it allows the organization to use the services of payment
service gateway providers, easing the payment process for both customers and the organization.
If this was to be implemented, Twenty Four Bakeshop is expected to have a 25% increase in
online sales due to the convenience it brings to shoppers, allowing them to purchase more items.
If this was to be calculated, the total cost of non-conformance would amount to PHP 29,319.43,
which would be additional sales in the perspective of the organization. By implementing this,
Twenty Four Bakeshop is expected to receive an additional PHP 25,214.71, helping them acquire
more revenue while implementing minimal cost.
The second alternative highlights the Integration of Cloud Based Servers in the Transition
of Orders from Online Platform to Baking Studio. In order to materialize these initiatives, the
organization would need to spend on technological hardware and software requirements such as
cloud servers, developed spreadsheets, strong internet connection and seminar training so that
internal stakeholders can be fully equipped with the process. The researchers estimate that the
total cost of conformance will amount to PHP 10,000, the costliest alternative presented in this
analysis. For the cost of non-conformance, the organization estimates that the alternative can
garner a 10% increase in sales as it minimally speeds up the process of transporting information
from the customer to both baking studios. By computing this, the total cost of non-conformance
will amount to PHP 11,727.77, which can only provide Twenty Four Bakeshop an additional
revenue of PHP 1,727.77. Showcasing minimal return, this alternative is an indicator that the
organization can consider other ventures and not proceed with the alternative.
The third initiative suggested by the researchers is the Collaboration with Third-Party
Online Delivery Platforms as Partner Merchants. To further strengthen the presence of Twenty
Four Bakeshop, management should realize the impact of these platforms in attracting a strong
customer base, wherein many people visit their sites to purchase various types of items. Signing
up with them will not require any joining fee, however, a percentage of total sales will be paid as
payment for partnering with the application. In order to offset these costs, Twenty Four
Bakeshop marked up their prices depending on the percentage cut each platform requires. To
materialize these initiatives, the cost of conformance will amount to PHP 6,500, wherein it will
be utilized to rent the device needed exclusively for Food Panda. On the other hand, Pickaroo has
enabled their merchant app to be easily downloaded in an Android cellphone, in which a budget
of PHP 5,000 will be allocated in the purchase of a store phone. Miscellaneous expenses for both
branches received a budget of PHP 500, in which these will include internet fees that can power
the use of these devices. As Twenty Four Bakeshop strives to partner with at least 4
organizations, they estimate that the average sales to be received per platform will amount to
PHP 6,000, wherein additional sales will total to PHP 24,000. As this initiative highlights
potential, the researchers strive to also recommend this initiative to Twenty Four Bakeshop,
especially that the digital environment is strongly used in commerce activities.
VI. Evaluation of Alternatives
A. Decision Matrix
In choosing the best alternative course of action, the researchers have decided to
construct a decision matrix that ranks the different initiatives, in which 4 criterions will be
accounted for towards the decision making process. Each criterion will be given a rating of 1-3,
wherein 1 is the lowest and 3 is the highest. Towards the construction of the matrix, the force
ranking method will be used. Please refer to table 9 to view the decision matrix conducted by the
researchers.
1. Feasibility of Alternative
 This criterion pertains to the degree of ease or convenience associated with implementing
the alternative. A rating that garners 3 points means the alternative can be carried out and has a
lesser hurdle compared to the other alternatives, while a rating that received 1 point depicts that
the alternative has the least possibility of being materialized as numerous challenges and
constraints are present.
2. Speed of Implementation
The criterion places great value on the amount of time needed to transpire a chosen
alternative. A rating that receives 3 points states that the course of action can be materialized in
the shortest possible time, while a rating that garners 1 point depicts that the initiative will need a
long period of time towards being fully implemented, giving us a glimpse that rigorous tasks are
being done.
3. Return on Investment (ROI)
This criterion considers the speed of converting profit with the assets purchased towards
integrating the alternative, wherein it can truly impact the backbone operations of Twenty Four
Bakeshop. A rating that receives 3 points states that the alternative has a high rate of return,
while a score of 1 point entails that the conversion process of maximizing the resources will take
a considerable amount of time.
4. Sustainability in the Long Run
This criterion describes the goal of an organization in maintaining a process that can be
done in the long term, wherein they are able to meet their needs despite changes in the business
environment. A rating that garners 3 points means that the course of action will be sustainable
towards long term operations, while a score of 1 point showcases that the alternative is the least
sustainable out of all initiatives.
Decision Matrix (1-3)

Weight in 1st Alternative 2nd Alternative 3rd Alternative

Percentage

Feasibility of the 20% 3 1 2

Alternative

Speed of 25% 3 1 2
Implementation

Return on 25% 3 2 1
 Investment
(ROI)

Sustainability in 30% 3 1 2
the Long Run

Total 100% 12 5 7
Table 9: Decision Matrix
The first initiative received the highest score out of all the alternatives suggested, wherein
a total score of 12 points was garnered by the idea of creating a partnership with payment
gateway service providers. It got a score of 3 points in the feasibility criterion as the system can
automatically redirect customers to their intended choice of payment, simplifying the process of
payment and its confirmation. Moreover, implementing the alternative will take a short amount
of time as orientation and integration activities given by the payment gateway providers are the
primary steps needed before launching the simplified process. Furthermore, the third criterion
considers the financial aspect of the alternative, wherein payment gateway service providers
charge a minimal percentage of total sales utilized by their platform. In the case of Paymongo,
the rates range between 1.5% - 3.5%, in which it is a fair amount to spend accounting for the
convenience brought about by their service. As it simplifies the process of confirmation in both
the perspectives of Twenty Four Bakeshop and its customers alike, the researchers can say that
the organization can continue using these services, making customers at ease, thus they are
willing to spend more.
The second alternative garnered the lowest score, receiving a total score of 5 points out of
the 4 criterions presented. To simplify the process of payment confirmation, this course of action
suggests the integration of cloud based servers so that staff from both branches can see in real
time the orders coming and begin its preparation. Though it is a promising initiative, it received
the lowest score in feasibility as it does not solve the payment confirmation process, wherein
despite the order entering the system, the associate would still need to confirm the payment
manually before beginning production. Analyzing its complexity can also stall the
materialization of the initiative, in which from the 3 alternatives presented, this course of action
would take the longest time to fully be implemented. It would also entail many resources,
wherein both hardware and software requirements are needed to build the intended output.
Training and development seminars will also need to take place in order for staff to familiarize
themselves with the new system being built. However, the researchers progress that the
investment spent will be returned before 1 year. The alternative will not be sustainable in solving
the dilemma of delayed payment confirmations as this added responsibility for staff can hinder
them towards efficient operations, intensifying the rate of delay experienced.
The third initiative accumulated 7 points, wherein it mostly received average scores on 4
criterions laid down by the researchers. In beginning this course of action, its feasibility received
an average answer as third party delivery applications have already developed a well designed
system in order taking, in which Twenty Four Bakeshop would just need to focus on preparing
the orders and meeting with the partner riders. It can also be done in a reasonable amount of
time, in which the partner applications would be responsible for providing the different resources
needed to commence operations. Briefing of operational processes would be a requisite before
launching so that the organization can familiarize itself about the process before being
fully-operational. Though this alternative is fully equipped with abundant resources, depending
on its power to become a primary source of sales generation would not be feasible as these
applications get a large percentage cut from orders passing through the application, ranging from
5% - 25% depending on customer familiarity. Renting of equipment such as ordering devices
would also add to the staggering costs, in which both fixed and variable costs can hurt the
finances of Twenty Four Bakeshop. Despite this, the reach of these platforms can increase
customer engagement of the organization, wherein a new sales channel is born to cater a wider
demographic of consumers across Metro Manila.
B. Process Decision Program Chart
A Process Decision Program Chart (PDPC) is a management tool that can be of aid in
identifying what might go wrong in a plan under development (Hessing, n.d.). The researchers
utilized the chart presented below in order to create an efficient and effective plan. It is
composed of the chosen alternative in the first level, the main activities in the second level, the
tasks required in the third level, potential problems in the fourth level, and finally, possible
countermeasures in the last level. The countermeasures provided to the issues were marked “o”
and “x” for practical and impractical ones, respectively. Kindly refer to figure 10 to view the
Process Decision Program Chart (PDPC) conducted by the researchers.
 Figure 10: Process Decision Program Chart for Twenty Four Bakeshop
There are two main activities that are essential in order to Partner up with Payment
Gateway Providers for E-Commerce Plug-Ins in Organizational Website, namely: 1) Reaching
out to PayMongo and 2) Training and Development of Staff. In reaching out to PayMongo,
evaluating PayMongo’s current rates, drafting a contract, and being in consistent communication
with that company are needed. However, potential issues may arise during the process. One of
the problems that may occur in evaluating PayMongo’s current rates is that its prices may be too
expensive for Twenty Four Bakeshop. Nevertheless, these rates can be negotiated with
PayMongo to make it beneficial for both parties. The content of the contract may also be subject
to misinterpretation if certain words or terms are not defined clearly. Thus, setting continuous
meetings with PayMongo is a must until the contract is finalized for easy clarification. In
drafting the contract, the inclusion of the wrong terms and conditions may also be a possible
result. With this, the researchers believe that both parties should review the contract thoroughly
and rewrite it in case there are errors or unclear terms. Due to the utilization of the online
meetings, there might also be instances wherein one of the parties may have no or unstable
internet connection. The researchers disagree with the idea that Twenty Four Bakeshop sets a
meeting in-person with PayMongo as a solution considering that it is a waste of resources and is
not safe, most especially that there is still a pandemic.
On the other hand, under Training and Development of Staff, activities such as setting
seminars, restructuring processes, and integrating PayMongo in the system are necessary. In
these three activities, there may be potential issues that may arise. Firstly, for setting up
seminars, one problem that may arise is a misunderstanding due to the fact that this kind of
training is not on a personal level. A solution to this problem is to have personal consultations if
there are any concerns regarding the matter to help the staff cope with the new processes.
Another activity to be done is to restructure the processes followed by the staff. However, in this
option, two dilemmas that may occur would be that some of the employees may be resistant to
role changes and staff may be prone to human error considering that these processes are new to
them. Nevertheless, implementing financial penalties and replacing these staff are not practical
solutions to this problem knowing that this may bring more issues rather than advantages.
Explaining the benefits and consequences thoroughly may be a more viable approach. Lastly, the
third activity is to integrate PayMongo in the system. This activity may have the problem of
software malfunction, most especially because the staff are new to this technology and do not
completely know how to troubleshoot. Frequent maintenance checks should be a must for
Twenty Four Bakeshop to prevent this from happening. Through the Progress Decision Program
Chart, the researchers were able to come up with concrete solutions in advance in case some of
these mentioned issues may arise.
C. Improved Flowchart
The researchers would like to integrate some of the feasible initiatives as it can widen the
scope and service of Twenty Four Bakeshop. These developments can also speed the process of
payment confirmation, making it accessible for customers to easily pay for their orders. Kindly
refer to figure 11 to view the improved flowchart of Twenty Four Bakeshop.
 Figure 11: Improved Flowchart of Twenty Four Bakeshop
To begin, customers start their journey by visiting the various distribution channels
offered by Twenty Four Bakeshop, wherein they can visit their baking studios in Bonifacio
Global City (BGC) and Estancia at Capital Commons or their online platforms, which interaction
can happen between Facebook, Instagram and their website. As an additional feature in
strengthening their digital presence, Twenty Four Bakeshop has partnered with different 3rd
party applications like FoodPanda, Pick A Roo, Booky and Joy Ride (JR Mall) to help them
widen their reach to a new demographic of clients. After they visit, the customer orders, wherein
the organization will ask for their payment. Once the total amount has been viewed, customers
will be presented about the various payment channels they can choose from, in which this section
is segregated as 1) For Twenty Four Bakeshop and 2) For 3rd Party Apps. The first category
focuses on all orders received by the organization through their independent channels, which
come from walk-ins, social media pages and their website. For payment options, Twenty Four
Bakeshop offers Cash (walk-in only), BDO Bank Transfer, BDO Pay Checkout, Gcash,
Paymaya, Credit Card, Tendo Pay and Paypal. To elaborate on some options, BDO Pay Checkout
is a system that allows the organization to issue payment links to their customers using
Philippine-based credit cards, wherein payment status can be checked via dashboard powered by
iPay88. While the payment options of Cash (walk-in only), BDO Bank Transfer and BDO Pay
Checkout are still done manually, all other choices will experience an external redirection to the
payment service provider, in which customers can input their details. On the contrary, the second
category focuses on the payment options of 3rd party applications, wherein majority of them
accept Cash on Delivery, Credit Card, Gcash and Paymaya as payment methods for orders
entering these platforms. For orders coming from Twenty Four Bakeshop, payment confirmation
will be provided systemically once it has been played on the e-commerce platform. On the other
hand, orders coming from 3rd party applications will enter the dashboard developed by the
issuing organization, in which both branches have direct access to these platforms to monitor
same day orders. If these branches have already received the orders, they can commence the
production process in making the different products offered by Twenty Four Bakeshop. Once this
phase is done, customers have the option to have their order delivered or picked up in their
branches, wherein if they choose to have it delivered, the organization would need to book a
rider, which will be responsible for transporting the order to the customer. If the customer
decides to pick up the order, they can visit and contact their preferred branch to receive their
orders.
VII. Quality Improvement Time Table
An action plan is necessary towards implementing an alternative course of action in a
proper manner. With the chosen alternative, the researchers strive to speed up the process of
payment confirmation of Twenty Four Bakeshop as it constitutes to the delay of different
business processes that will jeopardize the face of the institution. The action plan listed will
indicate a time table to complete the alternative, the expected output from the job and cost to
materialize the initiatives. Kindly refer to table 10 to view the time table Twenty Four Bakeshop
will be using to materialize its initiatives

Action Time Table Expected Output Cost

Concept Creation 3 days Concept Plan

Contact Payment 1 week Search for Company

Gateway Providers to Provide Gateway
Services
 Assessment of 1 day Evaluation,
Initiative Feedback, and
Approval of
Management

Proposal Preparation 2 days Partnership Proposal

and Intention with Payment
Submission to Gateway Provider
Payment Gateway
Providers

Waiting Time for Partner Payment Gateway Providers Response: 5 days

Approval of 1 day Approval of Both

Partnership with Parties
Payment Gateway
Provider

Onboarding 2 days Completed

Application Application Form

Processing of Documents: 7 days

Merchant Training 1 day Skills to Install and

Operate Plug-In and
Payment Links

Installation of Plug-In 1/2 day Functioning Payment

and Test Run in Redirection Page
Organizational After Check Out
Website

Practice of Creating 1/2 day Skills in Creating

Payment Links Payment Links for
Orders from Social
Media

Transfer of Payments Every end of the Receive Funds from 3.5% of Total Online
from Payment Month Online Payment Payment Transactions
Gateway Provider to Transactions (from Plug-In and
Twenty Four Payment Links)
Bakeshop
Table 2: Action Plan Time Table
Since the operations of payment collection and confirmation have been a primary
challenge that hinders efficient operations of Twenty Four Bakeshop, the researchers should
consider the prompt and orderly response of this course of action to minimize the presence of
delay. The action plan is divided into 2 main categories, which include 1) Initiative Deliberation
and 2) Initiative Execution. The first category focuses on searching for different methods to solve
the problem, wherein a concept should be analyzed to come up with a concrete solution. The
researchers have allocated 3 days in the creation of this alternative, in which a concept plan to
solve the high repetitions of payment confirmation delay has occurred in Twenty Four Bakeshop.
As an additional measure, the organization can also start looking for potential partners, wherein a
time table of 1 week is given for them to assess the different offerings and rate each provider
depending on their preference and needs. Once both activities are done, the business owner will
spearhead a deliberation process to assess the feasibility and future of partnering with a payment
gateway service provider, in which management would evaluate and construct feedback for
future reference. If an approval was to be made, Twenty Four Bakeshop can initiate contacting
potential payment gateway service providers that can help them strengthen their reach. An
example of these partners include Paymongo, a fintech start up organization that is renowned for
its high security, convenient processes and wide varieties of payment options available. Twenty
Four Bakeshop should strive to initiate the conversation with payment gateway providers as they
are in need of their services in speeding up the payment and confirmation process. In order to do
this, the researchers have allocated 2 days in the submission of intention, wherein they can email
a customer representative to state their position and need of using their services. The
organization will be waiting until 5 days for a response, in which they strive to follow up the
request if it has not yet been entertained. If the payment gateway services provider does respond
and agree with the collaboration, Twenty Four Bakeshop can proceed with the onboarding
application process, wherein they strive to allot 2 days to complete the application forms given
by the payment service provider. Processing of documents will take approximately 7 working
days, in which Twenty Four Bakeshop is encouraged to finish the application process in a short
period of time. After processing, the payment gateway service provider will initiate a meeting
with a representative from Twenty Four Bakeshop to conduct merchant training, wherein they
will be explaining the services they provide and an overview on how to install these
developments. Supplementary materials will also be provided, giving a step by step guide on
how to use their services. Twenty Four Bakeshop will also utilize 1 day to conduct further
training, in which the first half of the day will be allocated to install the plug-in while the second
half will be for creating payment links. Both parts will be essential towards the payment
confirmation process, as the organization will familiarize themselves with the process by
simulating scenarios in order taking. As they maximize the use of social media platforms and
their website, Twenty Four Bakeshop is determined to utilize both modes of payment collection
as it speeds the confirmation process and strengthens security of funds. At the end of each
month, the payment service provider will transfer the funds gathered in a month to the bank
account registered by Twenty Four Bakeshop in the application process, wherein the organization
estimates that 3.5% of total online transactions will be deducted as fee for using the gateway
services. Kindly refer to figure 12 to view the Gantt chart conducted by the researchers.

Figure 12: Gantt Chart

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Appendix:

Payment Confirmation

Observation Acceptable Time (min) Actual Time (min) Turnover Rate (min)

1 2.5 2 1.25

2 2.5 5 0.50

3 2.5 4 0.63

4 2.5 2.5 1.00

5 2.5 3.5 0.71

6 2.5 1 2.50

7 2.5 1.5 1.67

8 2.5 3 0.83

9 2.5 4 0.63

10 2.5 0.75 3.33

11 2.5 1.5 1.67

12 2.5 3 0.83

13 2.5 2 1.25

14 2.5 1.5 1.67

15 2.5 2 1.25

16 2.5 3.5 0.71

17 2.5 2.5 1.00

18 2.5 2 1.25

19 2.5 1.75 1.43

20 2.5 3 0.83

21 2.5 2 1.25
22 2.5 0.75 3.33

23 2.5 1 2.50

24 2.5 3.25 0.77

25 2.5 1.5 1.67

26 2.5 2 1.25

27 2.5 2.5 1.00

28 2.5 3.75 0.67

29 2.5 4 0.63

30 2.5 1 2.50

31 2.5 5 0.50

32 2.5 4.75 0.53

33 2.5 1 2.50

34 2.5 0.5 5.00

35 2.5 2.75 0.91

36 2.5 1.25 2.00

37 2.5 2 1.25

38 2.5 3.75 0.67

39 2.5 0.75 3.33

40 2.5 1.25 2.00

41 2.5 2.75 0.91

42 2.5 4 0.63

43 2.5 0.5 5.00

44 2.5 2 1.25
45 2.5 2.25 1.11

46 2.5 0.5 5.00

47 2.5 3.75 0.67

48 2.5 3 0.83

49 2.5 1.5 1.67

50 2.5 2 1.25
Appendix A1: Payment Confirmation Turnover Time Table

Statistic Value

Average Accepted Time of Payment Confirmation 2.5 min

Average Actual Time of Payment Confirmation 2.34 min

Turnover Rate 1.55

Rate of Failure (Accepted) 5%

Rate of Failure (Actual) 38%

Appendix A2: Summary Statistics of Payment Confirmation Turnover Time Table

Statistic Value

Xbar/IMR Chart Avg 2.34

Range Chart Avg 1.4286

Rbar/d2 1.266464

Number of samples 50

Subgroup size 1

Number of subgroups 50

Xbar one sigma Upper Limit 3.607

Xbar two sigma Upper Limit 4.873

Xbar three sigma Upper Limit 6.14

 Xbar one sigma Lower Limit 1.073

Xbar two sigma Lower Limit -0.19

Xbar three sigma Lower Limit -1.46

Rbar one sigma Upper Limit 2.51

Rbar two sigma Upper Limit 3.591

Rbar three sigma Upper Limit 4.671

Rbar one sigma Lower Limit 0.348

Appendix A3: Control Chart Data

Appendix B: Spending Patterns of Twenty Four Bakeshop Customers (From Survey)