Controls in food production
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CONTROLS IN FOOD PRODUCTION. PRODUCTION SCHEDULES STANDARD RECIPES PORTION CONTROL YIELD % AND FACTORS OVER- AND UNDERPRODUCTION DAILY vs. TO-DATE COGS POTENTIAL SAVINGS. PRODUCTION. Management’s job regarding production mirrors its job in every other aspect of the operation:

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CONTROLS IN FOOD PRODUCTION

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Controls in food production

CONTROLS IN FOOD PRODUCTION

  • PRODUCTION SCHEDULES

  • STANDARD RECIPES

  • PORTION CONTROL

  • YIELD % AND FACTORS

  • OVER- AND UNDERPRODUCTION

  • DAILY vs. TO-DATE COGS

  • POTENTIAL SAVINGS


Production

PRODUCTION

Management’s job regarding production mirrors its job in every other aspect of the operation:

Set the standards

Monitor continually

Reconcile any differences

Address causes


Production schedules

PRODUCTION SCHEDULES

What must be prepped for the upcoming shift?

Popularity Index = $Item Sales/$Total Sales

$Projected Sales = $Total Sales Forecast x Popularity Index

Determine what you must add to inventory to be ready:

Par Stocks – Inventory = Prep List


Production schedule using daily sales forecast

PRODUCTION SCHEDULEUSING DAILY SALES FORECAST

  • .


Standardizing production

STANDARDIZING PRODUCTION

STANDARDIZED RECIPES

-Consistent taste and quality

-Consistent cost

-Facilitates cost/price adjustments as market prices fluctuate

STANDARD PORTION SIZE

-Various ways to standardize portions:

-Volume: scoops, ladles, individual containers

-Count: one each, two each, etc.

-Weight: pre-portioned steaks, burgers, etc.

STANDARD PORTION COSTS

Standard Portion Cost = Purchase Price Per Unit / Portions per Unit


Standard recipe costs

STANDARD RECIPE COSTS

  • .


Reconciliation forecast vs actual

RECONCILIATIONForecast vs. Actual

Under- production:

Product mix may need revision

Portions too large

Pilferage/spoilage

Failure to follow recipe

Poor yield

How were extras produced?

Over Production

Portions too small

Can excess be reussed?

Allocate waste to responsible

shift


Butcher s yield

BUTCHER’S YIELD

Meat is usually the highest priced item on the menu.

Make vs. Buy Decision

Price

Available Skills

Prep Space

Use of By-Products


Calculating the multiplier

CALCULATING THE MULTIPLIER

Primal Beef30#

Cost$10.00/#

Total Cost$300.00

Butcher’s Yield:

Value of Usable Bi Products$20.23

Hamburger

Stew Beef

Prime Rib Cost

$300-$20.23$279.77

Prime Rib Wt.17# 8oz.

Prime Rib $/#$15.98

Trimmed Price$15.98 = 1.6 Multiplier

Original Pur. Price $10.00


Butcher s yield test multiplier

BUTCHER’S YIELD TEST & MULTIPLIER

  • .


Using the multiplier

Using the Multiplier

As prices change, the multiplier is used in the Make vs. Buy decision.

Whole Chicken Prices:Breast Prices:

$1.19$1.19 x 1.46 = $1.74

$1.39$1.39 x 1.46 = $2.03

If whole chickens are selling for $1.39, and pre-cut breasts are selling for $2.03, pre-cut may be the better buy.

Other considerations:

Doesn’t account for fluctuations in the whole product (i.e. breast size vs. total bird)

Prices of usable bi-products may vary


Total cost approach

TOTAL COST APPROACH

All bi-products are written off to the main item.

Legs, thighs, wings, etc. are valued at $.00.

Drives up the cost of the main item.

Dramatically reduces cost of any dish made

with bi-products

Across the full-menu, COGS will even out.


Cooking loss test can be used on primal or pre cut items

COOKING LOSS TEST Can be used on primal or pre-cut items

Divide the “after cooking” price per pound by the original price to determine the multiplier.

Original Wt. 15 pounds

Prime Rib per pound$15.00

After Cooking Wt. 12 pounds

New Cost per Pound $18.75

Multiplier1.25


Standard portion size

STANDARD PORTION SIZE

Used to establish menu prices

Used to determine purchase quantity

Used to forecast sales

Used to provide consistent customer satisfaction


Food cost today vs food cost to date

FOOD COST TODAY vs FOOD COST TO-DATE

Operations that use high tech POS systems tied into Perpetual Inventory systems can look at COGS by hour, shift and day.

short timeframes & low volume = great fluctuation

This should be used in conjunction with a “moving COG” that adds in prior periods.

longer timeframe & larger volume = consistent figures


Food costs moving average

FOOD COSTSMOVING AVERAGE

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