HBM 384 1st Edition Exam 1 Study Guide List the five major segments of on site foodservice and briefly describe some of the subtle differences among them o Management Interpersonal skills Passion Enthusiasm Honesty integrity strong ethics Organizational skills Leadership skills Ability to handle stress Restaurant experience knowledge and skills Focus on Customer Job related self confidence Flexibility creativity o Customers All customers are different depending on what the consumer is looking for or the situation they are in Ex A hospital would not be selling hamburgers and hotdogs and a university might at sport events Some places to eat are for leisure others are for convince while others are because people have no other choice prison o Labor Labor is also difference in all places Ex Colleges have the advantage of having all the students on campus and a need for food therefor many employees must be hired to cater to the masses while also a few general managers are needed for different locations Ex Work at a healthcare facility and you may or may not do the same type of labor every day which could include preparing food or taking orders from patients Managers want good employees you will get good employees if you are a good manager o Menu Types of menus Self Op Made to order Cycle Menu Seasonal o Production Different types of production work towards efficiency and quality Scratch cooking is a new recent trend this has pros and many cons Describe the various differences between a fee and a P L contract o In the earliest applications of contact feeding clients paid the contractor a fixed fee for service and the contracted company would try and save money through its systems or may spend more than given and no one would be kept accountable o Fee Contract was a guarantee to arrangements that the outsourced service would not exceed budgetary projections o Profit Loss P L Contractor assumes all risks and enjoys all the rewards Are commonly found in B I locations since the operations are fairly straight forward and clearly defined Education but the contracts are more complex Healthcare upcoming Define productivity As part of your answer provide an example of how you might quantify productivity in onsite foodservice o Productivity The effective use of resources to achieve operational goals o Total Productivity Output input Goods services labor materials energy capital o Ex Of productivity meals per labor hour cleaned rooms per labor hour o Enhancing productive Add upgrade equipment to aid employees Replace workers with equipment Replace outmoded methods or rules Redesign work Outsource What prompted the biggest change in prison feeding in the last three decades o Dietary restrictions people now can have more say over what they eat do to preferences or dietary restrictions What are the four criteria that might be used to prioritize items on a capital budget 1 Urgent 2 Essential 3 Economically desirable 4 Generally desirable How did the National School Lunch Program come into existence o National School Lunch Program is a federally assisted meal program operating in public and nonprofit private schools and residential child care institutions It provides nutritionally balanced low cost or free lunches to children each school day The program was established in 1946 o After the war America s unemployment rate was very high and some families were unable to provide lunches for their children while they were at school So through grants in aid lunches became administered to children during school Assuming you had 18 2 FTEs including two management positions how many non exempt labor hours would your operation use during a year Show your calculation o Full Time Equivalent is a unit that indicates the workload of an employed person or student in a way that makes workloads comparable across various contexts One of your managers has just submitted his year end financials to you for review see income statement on the following page His account is a straight P L What does your analysis suggest Be sure to discuss each of the major components e g sales food cost o There is way to high of a loss in profit in the Better Managed services Inc Sales o o o o o o Sales cafeteria did not make as much profit as they had budgeted for but they did make more profit in catering than planned which evens out the over under estimates There was a variance of 3 75 which isn t too far off They had planned for making 65 267 more dollars in sales Food Cost More money was spent on cafeteria and catering than was budgeted for 47 440 more was spent on food cost than planned this shows very poor pre planned budgeting or very poor methods of sticking to the budget Labor The labor was budgeted for a total of 851 275 and they actually spent 42 620 less on exempt and non exempt labor This is then to their benefit in spending less unless it is the cause for lower sales Direct Operating Expenses This segment was budgeted pretty well There was only 781 dollars more spent on DOE than budgeted for This is not a high amount Profit budgeted profit was 118 608 actual profit was 47 740 this is a 70 868 or 59 75 difference Therefore This company did not do a good job at all of sticking to their budget through out the year or from the start did not know how to accurately make a practical budget to follow I would hire new management Your subordinate just suggested a project that requires capital spending The project is expected to cost 375 000 but should increase revenue for each of next seven years by 79 000 Your hurdle rate is 13 percent Do you approve the project Justify your answer with related calculations o Year 1 79 000 o Year 2 79 000 79 000 158 000 o Year 3 158 000 79 000 237 000 o Year 4 237 000 79 000 316 000 o Year 5 395 000 o Year 6 474 000 o Year 7 553 000 So by year 7 the revenue made by this project is 553 000 o 553 000 Revenue 375 000 Cost 178 000 Profit in year 7 By year 5 the program is only making a profit have fully paid for cost of project 375 000 Cost 553 000 Revenue 68 Therefore there is a 32 rate of return on the project by year 7 Because 32 Rate of Return 13 Hurdle Rate Therefore you should approve the project OR o 375 000 Cost 7 Years 53 571 per year in costs 53 571 79 000 68 so the return is 32 which is greater than the hurtle rate So yes approve the project As the operator of an on site outlet in a factory you are thrilled about the contractual change from a fee to a P L For years the operation has been a