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Domain IV.

Topic B
Procurement, Production,
Service EOQ
(Inman pp.4-14)

Joanna Fitzmorris, MPH


I. Principles,
concepts,
methods
A. Procurement
One of the transformations in the food systems model
Right Product, Right Amount, Right Time, Right Price

Broadline distributor: large quantities


Specialty vendor: carries limited variety or single commodity

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
B. Purchasing Department
profit center:
assigned both expense and revenue responsibilities (cafeteria)
cost center:
manage expenses, but do not generate profit (patient)

Production Processing Manufacturing

Distribution Foodservice
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
informal, open market

formal, competitive bid


buying

C. Methods future contracts

prime vending

centralized purchasing

group or co-op purchasing

JIT just-in-time purchasing


Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Informal, open market
when a small amount is needed quickly

Formal, competitive
bid buying
bids are opened together; place order with lowest bid (price)

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Future Contracts
purchase goods at a specific price to be shipped later

Prime Vending
use single vendor for majority of purchases, saves time
and money

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Centralized Purchasing
personnel in one office does all purchasing for all units in
that organization

Group or Co-op Purchasing


involves union of separate units (hospitals), not related to a
single management for joint purchasing

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
JIT just-in-time
purchasing
purchase products as needed for production and
immediate consumption by buyer, without having to store
and record it in the inventory.

goal: store little product in inventory for as little time as


possible - maximizes cash flow

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Written Specifications
accurate word picture or definition of a product

Quality Standard: level of wholesomeness,


cleanliness, or freedom from undesirable substances

Grade: market classification of quality

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Formularies
descriptions of approved products that an
organization would like all personnel to use.

Vendor Performance
Requirements
compare price, quality, service

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
D. Procurement
Decisions:
Amount to Order
determining APQ/EPQ/%Yield
needs EOQ

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Amount to Order:
As Purchased Quantity (APQ):
the weight, volume or count of non-fabricated ingredient
Edible Portion (EPQ):
the weight, volume or count of fabricated ingredient
Trim:
EPQ
the weight or volume of the waste (APQ – EPQ = TRIM)
------
Yield Percent (Y%): APQ x Y%
the percent of APQ that is EPQ (edible)
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
YIELD PERCENT TRIANGLE
The Yield Percent Triangle is a tool used
to solve for the EPQ (part), APQ (whole),
or Yield % (percent) in a problem.

EPQ EPQ EPQ


------ ------ ------
APQ x Y% APQ x Y% APQ x Y%

APQ=EPQ/Y% EPQ=APQ*Y% Y%=EPQ/APQ

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Practice:
You have 20 lemons that you are going to juice for lemonade. Each
lemon weighs 3.5 ounces. You squeeze 31.5 fluid ounces. What is the yield
percent for lemons for juice?

EPQ = 31.5 fl. oz.


APQ = 20 lemons x 3.5 ounces = 70 ounces

31.5 fl. oz.


70 fl. oz x Y%

0.45 x 100 = 45% yield for lemons for juice

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Recipe #1 calls for 3 apples (24 oz). The recipe then says to
peel and dice the apples. This means the recipe will require
24 oz (1.5 lbs) of apple, but only 18 oz of apple will end up in the
recipe (24 oz x .75 = 18 oz).
-This is an example of a recipe asking for an APQ
- For this recipe you must buy 3 apples.

Recipe #2 calls for 24 ounces of peeled and diced apples.


However, in order to get 24 ounces, you must start with 32 oz
(32 oz x .75 = 24 oz) of apple that will end up in the recipe.
-This is an example of a recipe asking for an EPQ
-For this recipe, you must buy 4 apples.
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
EOQ
Economic Order Quantity
a quantitative approach to ordering staple or regularly stocked
items. to decrease costs, place orders as seldom as possible by
ordering larger quantities

EOQ = √(2DS/H)
D = annual demand or number of units required in a year
S = cost of placing an order
H = holding cost per unit per year

when the cost of placing an order aligns with the cost of


holding the items EOQ is obtained
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
EOQ = √(2DS/H)
Determine the EOQ for a hotel that needs to
purchase 10,000 food items PER YEAR. D = annual demand or
number of units required in
a year
1. Determine annual demand (D) S = cost of placing an order
2. Determine cost of placing order (S) H = holding cost per unit
3. Determine holding cost/unit/year (H) per year

4. Calculate EOQ:

EOQ = √(2 * 10,000 * 100 / 0.10)


= √(2 * 100,000)
= √(200,000)
= 447.72

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Advantages of using EOQ:

Reduced Inventory Carrying Cost


Increased Supply Chain Efficiency
Improved Customer Satisfaction

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Limitations of the EOQ model
Assumptions: demand, ordering, and holding
costs are constant
Inflexibility
Simplistic Approach

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
II. Principles of
Quantity Food
Preparation
& Processing
A. Dispersion
Systems -
mixture of solids, to change degree of

liquids, gases dispersion - apply heat


or beat

interface: line that forms


between two immiscible
liquids (oil and water)
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
gas in liquid:
whipped egg whites (foam)
classified
gas in solid:
according to sponge cake (suspension)
state of liquid in liquid:
matter in mayonnaise (emulsion)

each phase solid in liquid:


of the gravy (sol)

dispersion liquid in solid:


custard (gel)
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
small particles:
true solution (sugar, salt)
classified on
basis of size large particles:
colloidal dispersion (protein,
of dispersed cooked starch)

particles clumps of molecules:


suspension which separates
upon standing (fat, uncooked
starch)

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
B. Function of
Acid
Vegetables

Angel Food Cake


acid causes loss
heat disrupts cells and
of color when releases organic acids
green vegetables
are overcooked to prevent - cook for short
time; leave lid off for first few
or canned minutes to allow
escape of volatile acids

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
maintains white color by
preventing the Maillard
browning reaction
angel food cake -
cream of tartar - contributes to large volume by
acidic pH stabilizing egg white foam

contributes to tender crumb

without cream of tartar: tough,


yellow, small cake

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
C. Enzymes
act as catalysts enzymatic oxidation causes
browning of cut surfaces
may remain active after role in ripening of fruit: converts
cells die starch to sugar, softens

all are proteins


acid will lower pH and inhibit
enzyme activity

blanch vegetables before freezing


to destroy enzymes
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
D. Non-enzymatic
Browning -
Maillard Reaction
reducing sugar + amino acid

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
E. Heat Transfer
Equipment
conduction: heat moves from one particle to another
by contact

convection: heated air moved with fan

induction:
electrical magnetic vibrations excite the molecules
of metal cooking surfaces.

radiation: infrared waves from glowing heat

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
composed of a variety of
natural and/or synthetic
ingredients

F. Engineered advantages - consistent


in year-round availability,
Foods taste, appearance,
nutrient content; long
shelf life

meat analogs, seafood


analogs, vegetable blends
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
G. Preservation
and Packaging Food Spoilage

Methods Methods of Food


Preservation
molds

yeasts
Food Spoilage
bacteria

FATTOM = food, acidity,


temperature, time, oxygen,
moisture

enzymes
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Chilling

Freezing

Drying

Methods of Food Canning


Preservaton Irradiation

Pascalization

Chemical Preservatives

Sugar, Salt
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
III. Food
Production
Control
Procedures
A. production assures efficient use of
Schedule employee time and
minimum production
problems

assign preparation to
employees by hour of
the day

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
C. Quality Control
employee evaluations,
taste panels, customer
reaction

problem: lack of
objective measures

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
D. Quantity
Control: proper
forecasting, inform server: size
portion, dish, serving tool
control portion Shortcut: to determine the
sizes number of ounces in a
scoop (disher) divide the
scoop number into 32.

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
E.Tools of
Production
Control Gantt progress chart
PERT
PERT-
Program
Evaluation
and Review
Technique,
CPM - Critical
Path Method

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
Gantt progress chart
Cordale High School
Quiz Bee Schedule

TO-DO'S Week 1 Week 2 Week 3 Week 4

Post sign-up sheets

Hold auditions

Finalize performers line-up

Confirm the date

Book the venue

Finalize judge line-up

Announce the event

Decorate the gym

Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
IV. Production
Systems
B. Commissary
- Satellite:
centralizes procurement and
production; food production
and service areas are in
separate facilities
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
C. Ready-
Prepared:

cook-chill
cook-freeze
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
D. Assembly-
Serve

total convenience,
minimal cooking concept
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.
E. Display
Cooking:

restaurant design where


food is displayed and
prepared
Inman J New England Center for Nutrition Education. Inman's Review of Dietetics. Stoughton MA: New England Center for Nutrition Education; 2022.Payne-Palacio J Theis M.
Foodservice Management : Principles and Practices. Thirteenth ed. Boston: Pearson; 2016.

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