Characteristics of Each Organization Colleen's ORG ORG A ORG B ORG C Points of Service Patients...

 

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Characteristics of Each Organization Colleen's ORG ORG A ORG B ORG C Points of Service Patients Cafeterias Vending Catering (cash) Coffee kiosk in lobby Meals on wheels, day care centers Outpatient nutrition consultation Food Purchasing Food Production System Weekly Menu Planning Focus Department Payroll Regional renal dialysis center Provide all environmental service needs for department Provide night (3rd shift) food service Yes, same building 1 Cafe Yes, same building 2 Cafés Receives commission Yes Yes, same building 2 Cafes Receives commission Yes Yes No Yes, same building 1 Cafe Does own vending Yes No income No No No No No Yes No No No Yes No Purchasing group Cook serve Medium Purchasing group Cook serve Medium Purchasing group Cook serve High Purchasing group Cook serve Medium No No No No No No Yes Yes Yes Yes No No Yes Yes No No Provide host/hostess program for patients Direct Costs Serviceware for patients Serviceware for staff and visitors Statistics Total Meals Café meal tactors China China China China China China Disposables China 650,728 $5.25 236 Full service hospital 87,600 479,647 $6.07 400 400,722 $5.00 254 551,695 $6.22 Beds 490 Tertiary care hospital 79,321 Full service hospital Tertiary care hospital 66,429 59,452 Patient days (less newborns) Figure 1 Food and Nutrition Services Benchmarking: Characteristics 113 Colleen's ORG ORG A ORG B ORG C Revenue: Cafeteria sales Vending sales Catering (cash) Misc. rev.-meals on wheels, day care centers Outpatient nutrition consultation Total Retail Revenue $918,168 $211,658 $9,048 $56,540 $195,000 $1,390,414 $690,899 $0 $1,100,000 $1,295,651 $68,088 $11,571 $0 $364,000 $1,375,310 $1,464,000 $690,899 Expenses: Total food cost Payroll cost - salaries and wages Direct costs - minus depreciation Total Expenses (food, labor, direct) $1,328,737 $2,202,999 $487,975 $4,019,711 $1,643,650 $2,843,206 $766,663 $5,253,519 $1,112,783 $1,529,426 $592,707 $3,234,916 $1,045,896 $1,484,352 $378,124 $2,908,372 Special function (credit) Floor stock (credit) Misc. (credit) Total (credits) ($297,958) ($99,290) ($164,606) (5561,854) $0 ($216,000) (S458,000) ($674,000) ($213,874) ($52,308) $0 ($266,182) (S176,384) ($54,749) ($44,245) ($275,378) $3,457,857 $4,579,519 $2,968,734 $2,632.994 Total Adjusted Expenses Statistics Revenue % of Adj. Expenses 39.8% 32.0% 46.8% 26.2% 61.4 61.4 58.7 58.7 84.4 88.6 64.7 Total FTES Actual FTE Normalization-differences relative to other organizations Renal RDs Janitors/PM driver Night service 84.4 3.0 3.1 1.9 114 Clinic café Patient nutrition assistants Vacuuming of dining rooms Average hourly rate for olient FTE 2.5 12.2 1.2 $10.70 $16.20 $10.42 $10.85 Total meals Food Cost per Meal-Actual Café meal factors 551,695 $2.41 $6.22 650,728 $2.53 $5.25 479,647 $2.32 $6.07 400,722 $2.61 $5.00 Patient days (less newborns) Total NET Adj Expenses per Patient Day Food Expense per Patient Day Labor Expense per Patient Day Direct Expense per Patient Day 87,600 $52.28 $18.76 $32.46 $8.75 66,429 $44.69 $17.50 $23.02 $8.92 59,452 79,321 $43.59 $16.75 $27.77 $6.15 $44.29 $17.59 $24.97 $6.36 Figure 2 Food and Nutrition Services Benchmarking: Financial Information 115 116 Cases in Financial Management Revenue/Sales 1. Do any of the benchmark businesses have higher sales or income than Colleen's business? What are the differences? Can Colleen initiate additional products or services to increase her own top-line sales? Payroll Costs and Full-Time Equivalents 2. Do any of the benchmark businesses have lower labor hours than Colleen's business? Can Colleen implement systems or processes that would reduce the overall labor-hour requirements and as a result lower her payroll costs? Non-Labor Expenses 3. Do any of the benchmark businesses have lower expenses in any of the major categories of food or supplies? What purchasing practices can Colleen im- plement to lower her food and supply costs-group purchasing, prime vendor, or other strategy? What utilization practices can Colleen implement to lower food and supply costs-menu planning, recipe standardization, portion con- trol, or other strategy? Characteristics of Each Organization Colleen's ORG ORG A ORG B ORG C Points of Service Patients Cafeterias Vending Catering (cash) Coffee kiosk in lobby Meals on wheels, day care centers Outpatient nutrition consultation Food Purchasing Food Production System Weekly Menu Planning Focus Department Payroll Regional renal dialysis center Provide all environmental service needs for department Provide night (3rd shift) food service Yes, same building 1 Cafe Yes, same building 2 Cafés Receives commission Yes Yes, same building 2 Cafes Receives commission Yes Yes No Yes, same building 1 Cafe Does own vending Yes No income No No No No No Yes No No No Yes No Purchasing group Cook serve Medium Purchasing group Cook serve Medium Purchasing group Cook serve High Purchasing group Cook serve Medium No No No No No No Yes Yes Yes Yes No No Yes Yes No No Provide host/hostess program for patients Direct Costs Serviceware for patients Serviceware for staff and visitors Statistics Total Meals Café meal tactors China China China China China China Disposables China 650,728 $5.25 236 Full service hospital 87,600 479,647 $6.07 400 400,722 $5.00 254 551,695 $6.22 Beds 490 Tertiary care hospital 79,321 Full service hospital Tertiary care hospital 66,429 59,452 Patient days (less newborns) Figure 1 Food and Nutrition Services Benchmarking: Characteristics 113 Colleen's ORG ORG A ORG B ORG C Revenue: Cafeteria sales Vending sales Catering (cash) Misc. rev.-meals on wheels, day care centers Outpatient nutrition consultation Total Retail Revenue $918,168 $211,658 $9,048 $56,540 $195,000 $1,390,414 $690,899 $0 $1,100,000 $1,295,651 $68,088 $11,571 $0 $364,000 $1,375,310 $1,464,000 $690,899 Expenses: Total food cost Payroll cost - salaries and wages Direct costs - minus depreciation Total Expenses (food, labor, direct) $1,328,737 $2,202,999 $487,975 $4,019,711 $1,643,650 $2,843,206 $766,663 $5,253,519 $1,112,783 $1,529,426 $592,707 $3,234,916 $1,045,896 $1,484,352 $378,124 $2,908,372 Special function (credit) Floor stock (credit) Misc. (credit) Total (credits) ($297,958) ($99,290) ($164,606) (5561,854) $0 ($216,000) (S458,000) ($674,000) ($213,874) ($52,308) $0 ($266,182) (S176,384) ($54,749) ($44,245) ($275,378) $3,457,857 $4,579,519 $2,968,734 $2,632.994 Total Adjusted Expenses Statistics Revenue % of Adj. Expenses 39.8% 32.0% 46.8% 26.2% 61.4 61.4 58.7 58.7 84.4 88.6 64.7 Total FTES Actual FTE Normalization-differences relative to other organizations Renal RDs Janitors/PM driver Night service 84.4 3.0 3.1 1.9 114 Clinic café Patient nutrition assistants Vacuuming of dining rooms Average hourly rate for olient FTE 2.5 12.2 1.2 $10.70 $16.20 $10.42 $10.85 Total meals Food Cost per Meal-Actual Café meal factors 551,695 $2.41 $6.22 650,728 $2.53 $5.25 479,647 $2.32 $6.07 400,722 $2.61 $5.00 Patient days (less newborns) Total NET Adj Expenses per Patient Day Food Expense per Patient Day Labor Expense per Patient Day Direct Expense per Patient Day 87,600 $52.28 $18.76 $32.46 $8.75 66,429 $44.69 $17.50 $23.02 $8.92 59,452 79,321 $43.59 $16.75 $27.77 $6.15 $44.29 $17.59 $24.97 $6.36 Figure 2 Food and Nutrition Services Benchmarking: Financial Information 115 116 Cases in Financial Management Revenue/Sales 1. Do any of the benchmark businesses have higher sales or income than Colleen's business? What are the differences? Can Colleen initiate additional products or services to increase her own top-line sales? Payroll Costs and Full-Time Equivalents 2. Do any of the benchmark businesses have lower labor hours than Colleen's business? Can Colleen implement systems or processes that would reduce the overall labor-hour requirements and as a result lower her payroll costs? Non-Labor Expenses 3. Do any of the benchmark businesses have lower expenses in any of the major categories of food or supplies? What purchasing practices can Colleen im- plement to lower her food and supply costs-group purchasing, prime vendor, or other strategy? What utilization practices can Colleen implement to lower food and supply costs-menu planning, recipe standardization, portion con- trol, or other strategy?

Answer rating: 100% (QA)

Answer to Question 1 Revenue Sales Colleens ORG ORG A ORG B ORG C Total Revenue 1375310 1464000 1390... View the full answer