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Establishing Performance
              Standards




Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 1 / 47
Recap of the Previous session
• What is meant by Compensation?
• How does direct compensation differ from
  differed compensation.
           compensation
• Explain labor turnover.
• Discuss the difference between Part time
  staff and Contractual staff in an
  organization.
• How does the menu affect the labor cost.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 2 / 47
KCM of the Session
• Explain the meaning and significance of
  quality and quantity standards in labor
  control.
• Explain how records of business volume are
  used in scheduling.
• Describe how to prepare an hourly schedule
  for variable - cost personnel using records of
  business volume.
            volume
• Describe how to develop performance
  standards based on a test period
                             period.
   Monday, July 11, 2011     BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 3 / 47
Scope
•   Establishing Standards
                 Standards.
•   Features of the Organization Chart.
•   Writing Job Descriptions.
    W iti J b D       i ti
•   Keeping Records of Business volume.
•   Daily and Hourly Tallies.
•   Developing Schedules for Employees
                              Employees.
•   Developing a Standard Cost for Labor.

    Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 4 / 47
Establishing Standards
1.
1 Quality Standard
           Standard.
2. Quantity Standard.
3. Cost Standard.
3 C t St d d
Quality Standard:
1. Depends on the menu.
2.
2 Competence of the Employee
                      Employee.
3. Type of Restaurant.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 5 / 47
Quantity Standards
1.
1 Quantity standards must be established
   after the quality standards are set.
2.
2 Break down of tasks and compare it
   against time.
3. Establish
3 E t bli h quantity of performance on an
                   tit f     f
   individual in 1 hour.
4. In higher industries the time and motion
   concept is used to analyze each job.
  Monday, July 11, 2011     BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 6 / 47
Quantity Standards
5.
5 The Production is normally linked to the
   demand from the market and hence
   quantity standards are also linked to
   scheduling which depends on demand.
6.
6 Fast food restaurant chains define jobs
   and designate individuals to improve
   efficiency.
   efficiency


  Monday, July 11, 2011     BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 7 / 47
Quantity Standards
7. Fried Chicken restaurant have standards
  that a product will remain on a particular
  stand only for a certain time after which it
            y
  will be discarded.
8. The standards is established by manually
                                   y          y
  calculating a task and quantified in time.
9. In restaurant business the perishability
                               p          y
  and fluctuations in customer demand
  greatly affect quantity standards.
Steps required in Establishing
      Standards d Procedures
      S d d and P          d
1.
1 Organizing the enterprise by making an
                   enterprise,
   organizational structure with jobs and
   designation.
   designation
2. Preparing job descriptions by listing them
   down sequentially later handing them
   over as you go on appointing people.
3. Scheduling
3 S h d li employees as per b i
                    l              business
   hours, efficiency and job description.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 9 / 47
Establishing an Organizational Plan
1.
1  Type of clientele.
            clientele
2. Nature of the products offered.
3.
3  Type of service rendered.
   T      f      i      d d
4. Estimation of customer count and no of
   meals to be served.
5. The smaller the establishment in the
   service and product range the easier it is
   to establish an organizational p
                      g           plan.
     Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 10 / 47
Establishing performance standards
Features of the Organization Chart
1.
1 The lines leading down show the chain of
   authority.
2.
2 The one below reports to the one above
                                     above.
3. The Boxes next to each other work in the
   same place b t on diff
           l   but    different equipment,
                              t    i    t
   co-ordinate and co-operate.



  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 12 / 47
Features of the Organization Chart

4.
4 The dotted lines vertically indicated co-
                                        co
   working communication and co-operation
   between two positions
                  positions.
5. The lateral lines co-ordination in
   accomplishing respective tasks neither of
   whom are taking directions from each
   other.
   other


  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 13 / 47
Steps in Job Descriptions
1.
1 Using Job analysis
            analysis.

2. Job descriptions.
2 J bd      i ti

3. Job Specifications.




  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 14 / 47
Preparing Job Descriptions
Using Job analysis:
1. Use skills are featured in resume and on
   job skills test
              test.
2. Level of Education.
3. Other specific qualifications.
4. Interviewing workers and supervisors to
                g                p
   tabulate information.
5.
5 Observe workers perform their jobs
                                   jobs.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 15 / 47
Job Analysis query structure
1.
1 Job Objectives
       Objectives.
2. Specific tasks required to achieve
   objectives.
   objectives
3. Performance standards.
4. Knowledge and skills necessary.
5. Education and experience required.
                     p          q



  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 16 / 47
Writing Job Descriptions
• The process can be very detailed in some
  may be specific but 3 questions are of
  importance.
  importance
1. What is to be done.
2. When i
2 Wh is it d  done.
3. Where is it done.
• The above are also known as
   Performance Criteria.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 17 / 47
Writing Job Descriptions
• Most Job descriptions are the main heads
  of SOP’s.
• At the heading that states job title and
  grade and division name.
• V ti l reporting i stated normally i
  Vertical     ti is t t d            ll in
  appointment letters.
• A summary of the duties of the job in
  paragraph form.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 18 / 47
Writing Job Descriptions
• Specific duties are also mentioned which
  are assigned to the job.
• This increases and accountability with the
  management.
• It imperative that employees are
  Its i     ti th t       l
  expected to sign the job description after
  they
  th are read and explained t th
               d d       l i d to them iin
  detail.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 19 / 47
Job Specifications
• An outlining of qualifications needed to
  perform the job.
• Its an outcome of Job analysis
                          analysis.
• It judges the incumbent’s qualifications
  and skills whether are i li with th j b
      d kill  h th        in line ith the job.
• It becomes a standard till such time there
  is a major change in menu or theme in the
  restaurant.
  Monday, July 11, 2011     BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 20 / 47
Variable Labor cost Personnel
• Variable Labor Cost Personnel:
• The personnel linked to business volume.
• Usually th shop fl
  U    ll the h floor staff.
                          t ff
• The hours of work correspond to the
  variable cost employees.
• By careful scheduling the p
    y                  g     peak hours of a
  restaurant operation can be supported by
  Variable labor cost Personnel.
    Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 21 / 47
Variable Labor cost Personnel
• Personnel falling into these category are
  affected by seasons in business. They
  may have a higher hourly rate
                              rate.
• Personnel falling into this category:
• Di h washers, Kit h cleaners.
  Dish     h      Kitchen l
• Cleaning staff and garbage disposers.
• Back up waiters.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 22 / 47
Fixed Labor Cost Personnel
• The fixed cost personnel are whose
  numbers are unrelated to the business
  volume.
• Managers, Book keepers, Chefs, Stewards
  and maintenance personnel
                    personnel.
• In many establishments the fixed labor
  costs are derived in a later stage once the
  organizations has operated for over a year.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 23 / 47
Keeping Records of Business
              volume
                 l
• Actually is done by using automated
  systems.
• All electronic cash registers and the
  Micros systems has this provision in report
  generation.
  generation
• Daily Tallies
• Hourly tallies.


  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 24 / 47
Daily and Hourly Tallies
• The first technique is to draw information
  from Sales history.
• Guest checks is also a source where the
  systems are still manually operated.
• Th d t collected assists i f
  The data ll t d         i t in forecasting
                                        ti
  business with a reasonable degree of
  accuracy.


  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 25 / 47
Daily and Hourly Tallies
• The current happenings should be taken
  into consideration while using the daily
  Tally system, Road construction Political
         system        construction,
  rallies are examples.
• The Hourly tallies are a major help in
  keeping the labor cost at a bare minimum.
• A manual method of W kl and d il t ll
             l    th d f Weekly d daily tally
  is illustrated on pages 27 and 28.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 26 / 47
Number of Covers
                                                                                     Served per day Daily
                                                                                         Tally method
                                                                                             y




Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 27 / 47
Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 28 / 47
Number of Covers
100

 90

 80

 70

 60

 50

 40
                                                                                                                      Number of Covers

 30

 20

 10

 0




      Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 29 / 47
The Features and results of Charts
• Improve control over cost of labor
                                labor.
• Make scheduling effective.
• I the next case we take 5 successive
  In th     t         t k              i
  Friday’s and place their performances on a
  line h t
  li chart.
• The objective behind the exercise is to
  draw a median or an average.


  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 30 / 47
Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 31 / 47
Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 32 / 47
Difference in Arithmetic mean and
               Median
               M di
• The Arithmetic mean will be a numeric
  average.
• Which is 90+85+105+100+105= 487    487.
• 487/5 = 97.4
• While in case of a median it is 100.
• We arrive at this by eliminating the two
                     y           g
  lowest and the two highest counts on all 5
  Fridays and retaining the middle figure.
       y               g              g
Developing Schedules for
                    Employees
                    E l
• To develop schedules for employees from:
• Using the appropriate records from daily
  and hourly business volume
                       volume.
• The scheduling of fixed labor cost
  employees i di
      l      is discussed l t i thi
                         d later in this
  chapter.
• The scheduling of variable labor cost
  employees is exhibited in the next slide:
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 34 / 47
Sample Schedule based on
                 median sales f VLCE
                   di     l for




Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 35 / 47
120


                                                                                               X axis is Hours
                                                                                               of Operation .
                                                                                                    p
100
                                                                                                Y axis is # of
                                                                                                Covers and
                                                                                               Staff Required
 80




 60
                                                                                                Satff required
                                                                                                Anticipated Sales Volume in Covers


 40




 20




  0
      10 am  11 am  Noon  1 Pm  2 Pm  3 Pm  4 Pm  5 PM  6 PM  7 PM  8 PM  9 PM  10 PM 11 PM 
      to 11  to  to 1  to 2  to 3  to 4  to 5  to 6  to 7  to 8  to 9  to 10  to 11  to 12 
       am Noon Pm Pm Pm Pm Pm PM Pm PM Pm Pm Pm Pm
Scheduling Variable Cost
                      employees
                           l
• By applying the schedule if for 40 guests
  the outlet manager requires 2 employees
  then to cater to the peak period of 100
  guests 5 servers will deployed.
• The total staffing is never 5 it may be 7 or
  8, now this can be brought up by adding 3
  part-time
  part time employees and the rest would be
  permanent.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 37 / 47
Sample Schedule




Monday, July 11, 2011    BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 38 / 47
Sample Schedule for Fixed Cost
         Personnel
         P         l




Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 39 / 47
Scheduling for FC employees
• The scheduling of Fixed cost employees is
  unlike Variable cost labor.
• It can be done at the discretion of the
  Manager and as per job requirement.
• H
  Hours of operation.
          f      ti
• Hours of delivery of receipts.
• Fixed cost personnel schedule usually
  remain constant.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 40 / 47
Standard Staffing Requirements
• Also known as manpower requirements
                              requirements.
• Estimating efficiency of labor by
  segregating covers and comparing against
  time on a daily basis.
• Th t
  The two fi
           figures give a di t estimate of
                    i     direct ti t f
  evaluating employee efficiency.
• Finally summarizing them in a matrix that
  becomes a labor standard.
  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 41 / 47
Establishing performance standards
Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 43 / 47
Standard Work Hours VCP




Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 44 / 47
Developing a Standard Cost for
              Labor
              L b
• As seen in on slide 43 for a maximum
  business of covers ranges from 500-599.
• If the servers for the max period is 8
                                       8.
• Then 8 servers x 3 hours = 24 work
  hours.
• The same applies to the Ware washing
  personnel and Preparation personnel.


  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 45 / 47
Developing a Standard Cost for
              Labor
              L b
• If the hourly wage of a server is $ 4 00
                                      4.00
  then 24 hours x $ 4.00 per hour = $ 96.00
  as standard cost.
                cost
• The above is for a 3 hour period which is $
  96.00
  96 00
• The same calculation applies for ware
  washing personnel and di h washing
       hi            l d dish        hi
  personnel.

  Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 46 / 47
Questions

                 Comments
Monday, July 11, 2011   BAC-5132 Food and Beverage Management-II-Establishing Performance Standards   Slide 47 / 47

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Establishing performance standards

  • 1. Establishing Performance Standards Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 1 / 47
  • 2. Recap of the Previous session • What is meant by Compensation? • How does direct compensation differ from differed compensation. compensation • Explain labor turnover. • Discuss the difference between Part time staff and Contractual staff in an organization. • How does the menu affect the labor cost. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 2 / 47
  • 3. KCM of the Session • Explain the meaning and significance of quality and quantity standards in labor control. • Explain how records of business volume are used in scheduling. • Describe how to prepare an hourly schedule for variable - cost personnel using records of business volume. volume • Describe how to develop performance standards based on a test period period. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 3 / 47
  • 4. Scope • Establishing Standards Standards. • Features of the Organization Chart. • Writing Job Descriptions. W iti J b D i ti • Keeping Records of Business volume. • Daily and Hourly Tallies. • Developing Schedules for Employees Employees. • Developing a Standard Cost for Labor. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 4 / 47
  • 5. Establishing Standards 1. 1 Quality Standard Standard. 2. Quantity Standard. 3. Cost Standard. 3 C t St d d Quality Standard: 1. Depends on the menu. 2. 2 Competence of the Employee Employee. 3. Type of Restaurant. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 5 / 47
  • 6. Quantity Standards 1. 1 Quantity standards must be established after the quality standards are set. 2. 2 Break down of tasks and compare it against time. 3. Establish 3 E t bli h quantity of performance on an tit f f individual in 1 hour. 4. In higher industries the time and motion concept is used to analyze each job. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 6 / 47
  • 7. Quantity Standards 5. 5 The Production is normally linked to the demand from the market and hence quantity standards are also linked to scheduling which depends on demand. 6. 6 Fast food restaurant chains define jobs and designate individuals to improve efficiency. efficiency Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 7 / 47
  • 8. Quantity Standards 7. Fried Chicken restaurant have standards that a product will remain on a particular stand only for a certain time after which it y will be discarded. 8. The standards is established by manually y y calculating a task and quantified in time. 9. In restaurant business the perishability p y and fluctuations in customer demand greatly affect quantity standards.
  • 9. Steps required in Establishing Standards d Procedures S d d and P d 1. 1 Organizing the enterprise by making an enterprise, organizational structure with jobs and designation. designation 2. Preparing job descriptions by listing them down sequentially later handing them over as you go on appointing people. 3. Scheduling 3 S h d li employees as per b i l business hours, efficiency and job description. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 9 / 47
  • 10. Establishing an Organizational Plan 1. 1 Type of clientele. clientele 2. Nature of the products offered. 3. 3 Type of service rendered. T f i d d 4. Estimation of customer count and no of meals to be served. 5. The smaller the establishment in the service and product range the easier it is to establish an organizational p g plan. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 10 / 47
  • 12. Features of the Organization Chart 1. 1 The lines leading down show the chain of authority. 2. 2 The one below reports to the one above above. 3. The Boxes next to each other work in the same place b t on diff l but different equipment, t i t co-ordinate and co-operate. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 12 / 47
  • 13. Features of the Organization Chart 4. 4 The dotted lines vertically indicated co- co working communication and co-operation between two positions positions. 5. The lateral lines co-ordination in accomplishing respective tasks neither of whom are taking directions from each other. other Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 13 / 47
  • 14. Steps in Job Descriptions 1. 1 Using Job analysis analysis. 2. Job descriptions. 2 J bd i ti 3. Job Specifications. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 14 / 47
  • 15. Preparing Job Descriptions Using Job analysis: 1. Use skills are featured in resume and on job skills test test. 2. Level of Education. 3. Other specific qualifications. 4. Interviewing workers and supervisors to g p tabulate information. 5. 5 Observe workers perform their jobs jobs. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 15 / 47
  • 16. Job Analysis query structure 1. 1 Job Objectives Objectives. 2. Specific tasks required to achieve objectives. objectives 3. Performance standards. 4. Knowledge and skills necessary. 5. Education and experience required. p q Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 16 / 47
  • 17. Writing Job Descriptions • The process can be very detailed in some may be specific but 3 questions are of importance. importance 1. What is to be done. 2. When i 2 Wh is it d done. 3. Where is it done. • The above are also known as Performance Criteria. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 17 / 47
  • 18. Writing Job Descriptions • Most Job descriptions are the main heads of SOP’s. • At the heading that states job title and grade and division name. • V ti l reporting i stated normally i Vertical ti is t t d ll in appointment letters. • A summary of the duties of the job in paragraph form. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 18 / 47
  • 19. Writing Job Descriptions • Specific duties are also mentioned which are assigned to the job. • This increases and accountability with the management. • It imperative that employees are Its i ti th t l expected to sign the job description after they th are read and explained t th d d l i d to them iin detail. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 19 / 47
  • 20. Job Specifications • An outlining of qualifications needed to perform the job. • Its an outcome of Job analysis analysis. • It judges the incumbent’s qualifications and skills whether are i li with th j b d kill h th in line ith the job. • It becomes a standard till such time there is a major change in menu or theme in the restaurant. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 20 / 47
  • 21. Variable Labor cost Personnel • Variable Labor Cost Personnel: • The personnel linked to business volume. • Usually th shop fl U ll the h floor staff. t ff • The hours of work correspond to the variable cost employees. • By careful scheduling the p y g peak hours of a restaurant operation can be supported by Variable labor cost Personnel. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 21 / 47
  • 22. Variable Labor cost Personnel • Personnel falling into these category are affected by seasons in business. They may have a higher hourly rate rate. • Personnel falling into this category: • Di h washers, Kit h cleaners. Dish h Kitchen l • Cleaning staff and garbage disposers. • Back up waiters. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 22 / 47
  • 23. Fixed Labor Cost Personnel • The fixed cost personnel are whose numbers are unrelated to the business volume. • Managers, Book keepers, Chefs, Stewards and maintenance personnel personnel. • In many establishments the fixed labor costs are derived in a later stage once the organizations has operated for over a year. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 23 / 47
  • 24. Keeping Records of Business volume l • Actually is done by using automated systems. • All electronic cash registers and the Micros systems has this provision in report generation. generation • Daily Tallies • Hourly tallies. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 24 / 47
  • 25. Daily and Hourly Tallies • The first technique is to draw information from Sales history. • Guest checks is also a source where the systems are still manually operated. • Th d t collected assists i f The data ll t d i t in forecasting ti business with a reasonable degree of accuracy. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 25 / 47
  • 26. Daily and Hourly Tallies • The current happenings should be taken into consideration while using the daily Tally system, Road construction Political system construction, rallies are examples. • The Hourly tallies are a major help in keeping the labor cost at a bare minimum. • A manual method of W kl and d il t ll l th d f Weekly d daily tally is illustrated on pages 27 and 28. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 26 / 47
  • 27. Number of Covers Served per day Daily Tally method y Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 27 / 47
  • 28. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 28 / 47
  • 29. Number of Covers 100 90 80 70 60 50 40 Number of Covers 30 20 10 0 Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 29 / 47
  • 30. The Features and results of Charts • Improve control over cost of labor labor. • Make scheduling effective. • I the next case we take 5 successive In th t t k i Friday’s and place their performances on a line h t li chart. • The objective behind the exercise is to draw a median or an average. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 30 / 47
  • 31. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 31 / 47
  • 32. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 32 / 47
  • 33. Difference in Arithmetic mean and Median M di • The Arithmetic mean will be a numeric average. • Which is 90+85+105+100+105= 487 487. • 487/5 = 97.4 • While in case of a median it is 100. • We arrive at this by eliminating the two y g lowest and the two highest counts on all 5 Fridays and retaining the middle figure. y g g
  • 34. Developing Schedules for Employees E l • To develop schedules for employees from: • Using the appropriate records from daily and hourly business volume volume. • The scheduling of fixed labor cost employees i di l is discussed l t i thi d later in this chapter. • The scheduling of variable labor cost employees is exhibited in the next slide: Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 34 / 47
  • 35. Sample Schedule based on median sales f VLCE di l for Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 35 / 47
  • 36. 120 X axis is Hours of Operation . p 100 Y axis is # of Covers and Staff Required 80 60 Satff required Anticipated Sales Volume in Covers 40 20 0 10 am  11 am  Noon  1 Pm  2 Pm  3 Pm  4 Pm  5 PM  6 PM  7 PM  8 PM  9 PM  10 PM 11 PM  to 11  to  to 1  to 2  to 3  to 4  to 5  to 6  to 7  to 8  to 9  to 10  to 11  to 12  am Noon Pm Pm Pm Pm Pm PM Pm PM Pm Pm Pm Pm
  • 37. Scheduling Variable Cost employees l • By applying the schedule if for 40 guests the outlet manager requires 2 employees then to cater to the peak period of 100 guests 5 servers will deployed. • The total staffing is never 5 it may be 7 or 8, now this can be brought up by adding 3 part-time part time employees and the rest would be permanent. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 37 / 47
  • 38. Sample Schedule Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 38 / 47
  • 39. Sample Schedule for Fixed Cost Personnel P l Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 39 / 47
  • 40. Scheduling for FC employees • The scheduling of Fixed cost employees is unlike Variable cost labor. • It can be done at the discretion of the Manager and as per job requirement. • H Hours of operation. f ti • Hours of delivery of receipts. • Fixed cost personnel schedule usually remain constant. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 40 / 47
  • 41. Standard Staffing Requirements • Also known as manpower requirements requirements. • Estimating efficiency of labor by segregating covers and comparing against time on a daily basis. • Th t The two fi figures give a di t estimate of i direct ti t f evaluating employee efficiency. • Finally summarizing them in a matrix that becomes a labor standard. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 41 / 47
  • 43. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 43 / 47
  • 44. Standard Work Hours VCP Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 44 / 47
  • 45. Developing a Standard Cost for Labor L b • As seen in on slide 43 for a maximum business of covers ranges from 500-599. • If the servers for the max period is 8 8. • Then 8 servers x 3 hours = 24 work hours. • The same applies to the Ware washing personnel and Preparation personnel. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 45 / 47
  • 46. Developing a Standard Cost for Labor L b • If the hourly wage of a server is $ 4 00 4.00 then 24 hours x $ 4.00 per hour = $ 96.00 as standard cost. cost • The above is for a 3 hour period which is $ 96.00 96 00 • The same calculation applies for ware washing personnel and di h washing hi l d dish hi personnel. Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 46 / 47
  • 47. Questions Comments Monday, July 11, 2011 BAC-5132 Food and Beverage Management-II-Establishing Performance Standards Slide 47 / 47