Agenda

1. Agenda Unit of Measure Worksheet Chapter 2 – Quality Requirements Chapter 3 – Purchase Quantity Requirements Yields and Culinary Math Review Portion Worksheet Expanding recipes & conversion to purchase units

2. Quality Requirements • Purchasing 2 OH 3-2

3. Chapter Learning Objectives • Explain the importance of consistently purchasing products of the proper quality, and describe how the establishment of quality standards is an important first step in defining quality needs. • Explain the role of properly constructed product specifications in communicating product quality needs to vendors, and tell how product specifications are developed and implemented. • State the importance of make-or-buy analysis, and describe how the process should be done.

4. Case Study • Let’s review the case study on page 27 of the text book

5. The Importance of Quality Standards • What is Quality? • What are Quality Standards? • Why is Quality important?

6. The Importance of Quality Standards • Quality is the consistent delivery of products and services to expected standards • They help operations meet its overall quality commitments • What is Quality Assurance?

7. The Importance of Quality Standards • Activities that relate to Quality Assurance • Identify products that provide the best value to customers • Define product specifications that identify quality standards • Evaluate vendors to ensure consistent delivery of products at the right price • Maintain quality standards in the operation

8. The Importance of Quality Standards • Activities that relate to Quality Assurance continued • Train employees in quality standards • Inspect for quality standards in purchasing & receiving products • Determine corrective action if quality standards are not met • Obtain feedback to improve purchasing to meet quality standards

9. Economies of Scale • What is value? • Does it have a price tag? • How do quality standards help achieve value?

10. Quality Standards Identify and communicate in writing a record of purchasing criteria, product standards and specifications for • Managers • Vendors • Employees

11. Quality Standards continued • Clearly communicate product and service standards and requirements to staff and suppliers to avoid ordering and shipping errors.

12. Quality Standards continued • Identify an operation’s specific product or service requirements for bid purposes. • In most cases, bid buying results in • Lower prices • Consistent quality • Reduced paperwork • Lower purchasing-related labor costs

13. Quality Standards continued • Allow an operation to clearly identify acceptable replacement items • For use when • Requested products are unavailable • Product demand exceeds requested product supply

14. Quality Standards continued • Improve the ability of employees to identify and prepare menu items by providing • Consistent yield • Predictable trim • Constant viscosity (thickness or flow) • Predictable plate coverage

15. Determining Quality Standards

16. Determining Quality Standards • Quality standards are based upon the style of restaurant and its needs for products and services. • Resources available when developing quality standards include • Purchasers • Suppliers (vendors) • In-company personnel • Outside consultants

17. Product Specifications • Product specifications specify exactly what an operator is seeking to buy from its vendor. • In this case, the operator is the customer, and the vendor must fulfill the customer’s needs. • It is easiest to fulfill customers’ needs when they are clearly known!

18. Product Specifications continued • An item’s intended use is its most important characteristic when specifying quality standards. • Intended use addresses • In what form? • In what size? • At what temperature? • At what stage of processing? • In what packaging?

19. Product Specifications continued Specific information includes: • Yield • Packaging • Color • Quality level • Grade • Count • Size • Temperature • Processing requirements • Shipping methods

20. Product Specifications continued • The exact name is used to identify, as closely as possible, the desires of the buyer. • Food names may vary by region • May include sizes and other factors

21. Product Specifications continued • Brands can be indicators of quality. • Operators may prefer to buy a brand name. • Guests may prefer to see brand name products served to them.

22. Product Specifications continued • When products come in different packaging formats, product specifications must be very exact.

23. Product Specifications continued • Item size will, in many cases, directly affect portion cost. • Size may refer to • Weight • Volume • Count

24. Product Specifications continued • Acceptable trim indicates the amount of allowable waste acceptable upon delivery. • Excessive trim will increase portion costs. • Excessive trim reduces profits. • Purchase prices typically increase as trim loss is reduced.

25. Product Specifications continued • Grade is an indicator of quality. • The United States Department of Agriculture (USDA) grades are recognized standards in the foodservice industry. • In most (but not all) cases, grading is not mandatory.

26. Product Specifications continued • Market form indicates how an item is processed prior to packaging. • Examples include • Whole • Diced • Shredded • Chopped • Fresh • Frozen

27. Product Specifications continued • Color is an indicator of age and identification • Age examples include • Green bananas • Red strawberries • Identification examples include • Green beans • Red grapes

28. Product Specifications continued • Accuracy in menu legislation requires that places of origin, if used on the menu, must correctly reflect the true origin of the item sold. • For example • “Idaho Rainbow Trout” must actually come from Idaho. • “New York Cheesecake” must come from New York.

29. Product Specifications continued • When designating acceptable substitutes, it is always best not to reduce quality standards!

30. Unit Pricing Pricing by The dozen The case at an agreed-upon case size Alternative units Price Limits Buyers may predetermine the maximum price (limit) they will pay. Examples include prices for fresh lobsters and other types of rare seafood. Product Specifications continued

31. Product Specifications continued • Temperature control procedures • Room temperature • Refrigerator temperature • Frozen (freezer) temperature

32. Product Specifications continued Communicates quality standards to compare apples to apples

33. Developing & Implementing Specifications On-going process Availably of new products Changing customer preferences Menu revisions

34. Considerations for FFE Specifications • Code requirements • NSF, UL, AGA, etc. • Delivery dates and procedures • Installation dates and procedures • Cut sheets/spec sheets (CAD drawings) • Intended Use

35. FFE Specifications, continued • Lifetime Cost and payment options • Potential Operating Savings • Demonstration Models • Equipment Programs • Custom made FFE’s • New vs. Used • Cleaning and Maintenance

36. FFE Specifications, continued • Availability of Replacement Parts • Supplier Services (training, inspection, upgrades) • Employee Attitude and Skill Level • Energy Source • Add – On Capabilities • Warranty

37. Factors Affecting Quality Standards • The item’s intended use • The operation’s concept and goals • The menu • The skill level of employees

38. Factors Affecting Quality Standards continued • Budgetary constraints • Customer’s wants and needs • Seasonal availability • Availability of storage

39. Make – or – Buy Analysis (MOBA) • Research of the facts needed to decide whether to make an item from scratch or to use a value added item (convenience) • 1) Identify all product options • 2) Eliminate non viable options (intended use, appearance, etc.) • 3) Prepare products to be considered (factoring in labor, skill & consistency) • 4) Evaluate for taste, appearance, consistency, intended use

40. Make or Buy:The Case for Buying Food (value added) Benefits of buying food in a partially or fully prepared state: • Consistent quality • Consistent portion control • Reduction in leftovers (no waste with convenience items) • Operating efficiencies: • Less food handler supervision • Reduced employee skill requirements • Saves time • Reduction in raw materials inventory, less ordering • Saves storage space • Less equipment needs

41. Make or Buy:The Case for Making Food - scratch Benefits of making food items from scratch: • Quality may be better • Guests’ satisfaction may be higher • Food costs are generally lower • Signature dishes are easier to develop

42. Decision Factors for MOBA • Final EP portion cost (factoring for labor) • Production time, equipment, ability • Availability of value-added product • Customer Satisfaction • Is it worth it?

43. Questions for MOBA

44. Examples of Make or Buy Analysis page 50 & 51 • Page 50 of the text

45. How Would You Answer the Following Questions? • Product (specifications/standards) identify the characteristics desired in a product or service purchased by a foodservice operation. • Which of the following is not a category typically used to develop product specifications? • Brand • Delivery times • Size • Packaging • Employee __________ __________ is an important factor affecting quality standards. • The final quality of a “made from scratch” item will always exceed the quality of a purchased item. (True/False)

46. Let’s take a break Return in 15 minutes

47. Purchase Quantity Requirements • Purchasing 3 OH 3-47

48. Chapter Learning Objectives • Explain why purchasers must carefully consider the quantities of products to purchase. • List important factors that affect the quantity of products purchased. • State procedures helpful in forecasting product needs.

49. Chapter Learning Objectives • Explain how product yields affect purchase quantities. • Describe traditional systems used to calculate purchase quantities. • Identify and discuss two nontraditional purchasing methods that impact the quantities of products to be purchased.

50. Case study • Let’s turn to page 59 to review the case study