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Why is inventory important (4)
Accurate information of food and supplies in stock
Determine purchasing needs
Provide data for food cost control
Prevent theft and pilferage
Two types of inventory
Physical inventory
Perpetual inventory
Physical inventory
Actual counting of all items in stock in all storage areas
Perpetual inventory
Purchases and issues are continuously recorded for each product in storage making the balance in stock available at all times
What is just in time purchasing
Purchase products just in time for production and immediate consumption
Not recorded in inventory
Benefits of JIT
No capital tied up
Less inventory to hide problems
What must you have to have JIT
Must have good relationship with vendor
How to calculate food cost
Beginning inventory + purchases = cost of goods available
- ending inventory
= cost of food used
Inventory turnover calculation
Usage or COGS / average inventory
Average inventory =
(Beginning Inventory + Ending Inventory) / 2
ABC method
ABC analysis —>
A is vital or high value items 15-20%of total inventory, but 75-80 % of cost
B is moderate or medium value items
C trivial or low value items 60-65% but cost 5-10% (paper goods)
Minimum/maximum method
Maximum is what you get when you read order, and minimum is when you have an automatic reorder going
Economic order quantity method
Ordering cost decreases as the size of the order increases
Balance of ordering costs and inventory holding cost
Holding cost is something to think about that
Inventory Valuation (5)
Actual purchase price
Weighted average
FIFO
LIFO
Latest Purchase Price
Actual purchase price
Price inventory at exact price of each individual product
Weight average
Weighted unit cost based on unit price and number of units in each purchase
FIFO
Closely follows flow of products
Ending inventory is valued at prices of most recent purchases
LIFO
Assumes current purchases are made for meeting demands of production and should be costed out first
Value of inventory will be lowest with LIFO
Latest Purchase Price
Latest purchase price is used to value the inventory
What part of the process is production
Key element of the transformation process
What is the purpose of production
Preparation of menu items in the needed
-quantity
- quality
-cost
What the manager determine in production planning (5)
Product characteristics
Production process
Characteristics
Define desired quality level
Predict quantities needed for demand
Consider costs of labor, material, facility utilization
4 aspects of forecasting
Art & science of estimating events in the future
Subjective (intuition, the art)
Objective (mathematical models, the science)
Must be flexible
What is forecasting so critical
Affects a lot of
Food production
Customer satisfaction
Employee morale
Manager confidence
Inventory
Staffing
Financial status
Two types of production (2)
Overproduction
Underproduction
Overproduction
Used prepared food, extra labor costs, wasted food
Underproduction
Unhappy customers who didn't get what they came for
Non commercial vs commercial forecasting
Commercial
Menus generally remain static in the commercial food service organizations
Non commercial
Menu variety changes on a daily basis in the non commercial foodservice industry
Why forecasting method takes more time
Non-commercial forecasting takes more time
How do we forecast (3)
Quantity demand
Historical records
This is where forecasting begins
Historical records for forecasting (5)
Customer counts
# of items prepared
# served
Meal hour
Special circumstances
Criteria for forecasting models
-cost of model
-relevancy of past data
-pattern of behavior
-accuracy of model
-lead time
- underlying pattern of behavior
3 types of forecasting models
Time series, casual, subjective
What is time series
Actual occurences follow an identifiable pattern over time
Most suitable for short term forecasts
Two types of time series models
Moving average
Exponential smoothing
Moving average
Most common and most implemented
Calculate average of the number of portions sold the last 5 times it was offered
Drop the first number and add the most recent number of portions sold to the bottom of the list
Continue this process for all data
Exponential smoothing
A weighted-moving-average forecasting technique in which data points are weighted by an exponential function.
Gibes more weight to recent values than older values
Which forecasting gives most accurate forecasts
Exponential smoothing
Three Q's of receiving
Quality
Quantity
Quote (price)
Do you need to store historical data with exponential smoothing
No
Alpha of exponential smoothing in food service
Alpha of .3
Exponential smoothing
New forecast = [judgement factor x last demand] + [1 - judgment factor x last forecast]
The closer the alpha is to 1 the new forecast...
Will include a greater adjustment for any error that occurred in the preceding forecast
When the alpha is close to 0 to the new forecast will not show much adjustment for the error of the preceding forecast
Causal forecast (3)
High costs for development
For short-term forecasting, this does not yield better accuracy over time-series
Popular for medium & long-term forecasts
What is casual forecasting models
Relationship exists between the times being forecast and factors besides time
Factors in casual forecasting models
Patient census
Number of patients on reg & modified diets
Seating capacity
Number of employees
Sellling price
Day of the week
Examples of regssion analysis
Sales increase steadily every month
Y axis monthly sales, x axis upward trend in sales
Is casual forecasting models expensive to develop
Yes, usually medium to long term forecasts
Regression analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income
Evaluating trends & sales estimates for forecasts
Subjective forecasting
Used when —> relevant data is scarce, little relationships between past and future data,
Methods of subjective forecasting
Market research
Panel consensus
Visionary forecast
Historical analogy
Who is on the planning team for large equipment
Owner of administrator
Food service director
Foodservice design consultant/architect
Equipment representative
Builder/contractor
Maintenance engineer
Business manager
Equipment decisions are based on (7)
Budget
Type of meal delivery systems
Menu
Average daily census: capacity required
Size of campus/facility/space allotment
Hours of operation
Labor hours available
Equipment maintenance (8)
Warranty - parts and labor
On-site vs contract maintenance
Service department on call 24/7
Operation and installation manuals
Special maintenance required?
Preventive maintenance
Replacement programs
Trade-ins/upgrades
What is production scheduling
time sequencing of events required to produce a meal
Two stages of production scheduling
Planning, and action
Planning stage (2)
Forecasts converted into the quantity to be prepared
Distribution of food products to each work area in kitchen
Action stage (1)
Supervisors prepare a production schedule for assigned products
What is the major control in the production subsystem
Production schedule
What is very specific to each operation and can vary greatly
Production schedule
What should the the production schedule include
Employee assignments
Preparation time schedule
Menu item
Over and underproduction
Quantity to prepare
Substitutions
Actual yield
Additional assignments
Pre-prep
Special instructions
What is the function of the ingredient room
Clerk will put together all ingredients needed for each section, stoke each section
Benefits of centralized ingredient assembly
Cost reduction and quality improvement
Redirection of cooks skill
Efficient use of labor
Combine tasks
Things to think about with ingredient room
Do we even need it? Do we have necessary equipment, hows the room layout/location? Between storage and production
Planning team for large equipment
Owner of administrator
Foodservice director
Foodservice design consultant/architect
Equipment representative
Builder/contractor
Maintenance engineer
Business manager
Equipment decisions are based on
Budget
Type of meal delivery system
Menu
Average daily census: capacity required
Size of campus/facility/space allotment
Hours of operation
Labor hours available
Equipment maintence includes
Warranty
On site vs contract maintenance
Service department on call 24/7
Operation and installation manuals
Special maintenance required
Preventive maintenance
Replacement programs
Trade ins/ upgrades
Metal alloys
Chromium and chromium nickel stainless steel
Non corrosive (low carbon content)
Gauge / thickness
Higher gauge, less thick, lower cost
10-14 gauge is for most foodservice equipment
18-20 gauge for pots and pans
What to include in specs
Specific and detailed
Include brand name, model number, material and construction, size, capacity, color, finish, cost, electrical, ETL , UL, NAFEM, NRA, consider utility usage, energy efficiency
Joint committee on food service standards
Equipment should withstand wear and tear
Conduction
The direct transfer of heat from one substance to another substance that it is touching.
Convection
The transfer of heat by the movement of a fluid
Induction
Electromagnetic waves transfer (induces) energy into the cooking vessel
Two examples of moist equipment
Steam jacket kettles steamers
Dry heat equipment
Broilers, grilling, specialized barbecue equipment, deep fat fryer, oven, multi function (combi oven, tiling fry or braising pan, conventional/microwave oven
How does work simplification make your job easier and more efficent
Saving time, energy, money
How to start work simplification
Find the job to be improved
Study the job to be improved
Ask questions about the job
Apply work improvement measures
What actions are often taken in work simplification
Eliminate, combine, rearrange, simplify
Principles of motion economy, movement should be (5)
Simultaneous
Symmetrical
Natural
Rhythmic
Habitual
What are some motions you could make rhythmic and smooth
Scrubbing, frosting, stirring, cutting, mopping, spreading
What to do with both hands
Make them productive at the same time
How much stronger is the preferred hand
10%
Rule of thumb for hand and body motions
Few, short, simple
Maintain comfortable working positions
Percent of body weight for proper body posture
Head = 7.2
Torso 50.7
Both arms 9.8
Both legs 32.2
How low surface
3-4 inches below the elbow
Consider location of materials
A place for everything and everything in its place
Get everything ready
Complete the task
Put everything away
Use equipment when possible (3)
Motors not muscles, special purpose tools, put bend in tool not wrist
Your two hands should
Begin and end their motions at the same time and should not be idle at the same time, except during rest periods
Motions of your arms should be
Made in opposite and symmetrical directions simultaneously
Hand motions should be
Smooth and continuous
Good lighting is
Essential for visual perception
The eight of the worktop and chair should
Allow for sitting and standing wherever possible
A work chair should permit
Good posture
Combine tools
Whenever possible
Preposition tools and material, having a
Definite fixed place for everything used
Handles and cranks should allow for
Maximum contact with the surface of the hand
Arrange work to allow for an
Easy natural rhythm
Use what delivery whenever possible
Drop
Tools, materials, and controls should be located directly in front of the worker and arranged for
The best sequence of motions
Note
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