Jean Inman Domain III: Management of Food and Nutrition Programs and Services (Pages 26-30)

How do you calculate the selling price?

markup factor x raw food cost= selling price

What is Kaizen?

"good change" philosophy suggests making continuous and small incremental improvement in a process on a daily basis, rather than revolutionary changes focuses on teamwork, discipline, morale, quality, suggestions for improvement

What is the formula for break even in sales volume ($)?

(fixed costs)/ 1- (variable costs/sales)

What are examples of DIRECT benefits in a cost benefit analysis?

- change in diet or food habits as a result of counseling -change in functioning of body due to altered diet (i.e. reduced constipation due to high fiber diet) -value is determined by measuring the cost of treatment alternatives needed due to absence of improved food habits

how to find cost of profit pricing

1. add up all cost including profit cost (%s) 2. subtract 100 to find targeted food cost % 3. total food cost/ desired food cost % = selling price ex. fc 25% , lc 35% , profit c 10% = 70% given food cost $.78 100%-70% = 30% .78/.30 = 2.60 selling price

If food cost % is 30% and raw food cost is $.18, what is the selling price (using the factor method) what would the selling price be if you included hidden costs?

100/30 = 3.3 mark up factor 3.3 x .18 = $.59 selling price hidden costs 3.3 x (.18 + .018) = $.65 selling price

What is the FADE performance improvement model?

Focus: select process to be improved act: collect and analyze data to understand process develop action plan execute the implemented plan

What is the break even if: FC: 25000 VC: 60000 Sales: 10000

BE= 25000/ 1- (60000/10000) = 62500. To break even, you need 62500 in sales

What is CQI? What is it a part of?

Continuous Quality Improvement part of TQM idea that systems and performance can ALWAYS improve- focus on process and not people

FOCUS PDCA outlines the process to use for performance improvement

F find a process to improve O organize a team C clarify current knowledge U understand causes of variations S select the process improvement P plan to improve - how changes will be made D do the changes - implement the intervention C check the results - determine the impact A act to maintain and continue

What are we supposed to know is a part of TQM?

PDCA plan, do, check, act PDSA plan, do, study, act *these are problem solving techniques for coordinating process improvement

Price the product to ensure________ Profit is established as a ____________

a predetermined percentage of profit cost. this guarantees a certain profit with each sale

What is TQM?

an approach to improve performance Total Quality Management- philosophy where processes are refined with goals of improving performance in response to customers need and expectations

What does a cost benefit analysis look at?

is it worthwhile to complete this project in terms of cost the value of the benefits for the intervention must outweigh the costs

What is a cost/ effectiveness analysis?

assumes the goal of the project is worthwhile *question to resolve is which method of intervention is the most effective (value) in achieving the goal compares cost of alternative strategies analysis uses outcome research - determines which ones are effective or not -used to predict the level of outcome -assess the effectiveness of a intervention against one or more alternatives and determines the value of health care resources consumed when each alternative is used.

What do cost benefits studies look at?

cost/benefit of nutrition education and intervention do benefits exceed costs?

what are the characteristics of criteria

criteria - professionally developed statements that describe a desirable process to outcome RUMBA relevant, understandable, measurable, behavioral, achievable

What are loss leaders?

items priced lower to draw people in in the hope that they will purchase other items at normal markups

What is six sigma?

data driven approach for improving quality by removing defects and their causes Sigma- unit of measurement that defines standard deviation. Achieving 6 sigma means (6 sd from mean) means there is very little variation in process. DIMAC - define, measure, analyze, improve, control * this helps eliminates any errors

What is promotions pricing? why is it done?

done for a short period of time sale or special price is done to increase sales during a slow period

what do outcome management systems evaluate?

effectiveness and efficiency effectiveness- refers to the degree to which an exchange helps to achieve your objectives (DOING THE RIGHT THING) efficiency- refers to the minimization of resources you must spend to achieve that desired level of exchange (DOING THINGS RIGHT) findings are compared to past performance levels and other standards such as benchmarking of performance.

What are two ways to build good relations with the community?

have good press relations, lobbying build and retain relationships with legislators an gov. officials

What is a rate-based indicator?

indicator- measurement tool that monitors and evaluates important aspects of patient care and management functions. serves as a flag to direct attention to specific issues. rate based indicator to measure best patient care scale of 1%-99% tells us what will happen with the BEST care ex. 95% high risk patients are assessed within the first 24 hours

What is a sentinel event indicator?

measure of patient care that looks at serious events that require further investigation each time it occurs; undesirable, but avoidable events scale 0% OR 100%- we want it to be never or always ex. 0% food poisoning, 100% oncology patient are fed within 5 days admission, dish washer is dry 100%

What does a research audit look at?

monitors performance to identify what needs improvement. did performance meet standards?

What is the prime cost method for calculating selling price?

raw food cost + labor cost involved in making the item 1. determine prime cost (raw fc + labor cost) 2. determine price factor (markup) - 100/% a. add desired food cost % to % of direct labor cost b. divide into 100 for markup 3. selling price = prime cost x price factor (markup)

What are examples of INDIRECT benefits in a cost benefit analysis?

saving of a physician's time and resources due to the prevention or reduction in severity of a disease (i.e. decrease in # of admission or length of stay) -calculate total costs of the program -calculate benefit:cost ratio

The factor pricing method of creating a selling price is the traditional markup method. what is markup defined as? formula for markup?

the difference between cost and the selling price 100/ food cost % = markup factor

How much hidden cost can be added to selling price?

up to 10% may be added to food cost to cover unproductive costs (losses in preparation, cooking, serving, unavoidable waste)

What is lean method?

use less human effort, less space, and less capitol to reduce resources and make products exactly as the customer wants it reorganize workflow, duties, reduce food cost, increase efficiency and customer satisfaction