FOOD CONTROL CYCLE
Purchasing is defined as 'function concerned with the search, selection, purchase, storage, requisition; issuing and finally production of food in accordance with the catering policy of the hotel.
This means that the Purchase Manager purchasing for the hotel / restaurant will be responsible not only for seeking out the required items, but selecting those which are most suitable for the hotel; entering into a contract with the supplier; ensuring that the goods delivered are correct as regards quantity, quality and price; ensuring that the items are transferred direct to the ordering department or are correctly received, stored and later properly issued against proper requisitions; and that, finally, a follow-up is made with the using department to check that the goods purchased were as per the requirement.
The management of the hotel decides regarding the quality of items to be purchased and the volume of items to be purchased. The volume of the item depends on the various factors like Sale, Storage capacity, Availability of funds, future rates of the raw material, time taken by the suppliers to supply the items, keeping / shelf life of the items, etc. It is never advised to un necessary spend on the inventory. The stock of items should be just sufficient keeping in view the above mentioned points and should neither be less nor more. If the stock is not sufficient then hotel may not be able to provide all the menus and other room / bathroom supplies and on the contrary if the stock is more then it will increase our inventory and hence require more liquid cash/assets.
Purchasing is one of the important function in order to complete the control cycle. If it is done inefficiently, it creates problems at each subsequent stage of food and beverage control. On the contrary if purchasing is done efficiently, a sound foundation will be laid for producing quality food and beverage products at the minimum cost consistent with the policy of the hotel / restaurant.
Purchasing
helps in the food and beverage control cycle
Policy - Shows what market is aimed at
Menu - Depending upon the menu and the quality of food items required by the chef.
Volume Forecast - Volumes of the items required by the chef
Purchasing - Selection of suppliers, methods of purchasing, mode of Payment, Quantity and Quality of items required
Receiving – Inspection of item's quality and quantity and comparing with purchase specification.
Storing - Storing of all items at proper place and recording in the Bin cards
Issuing - Issuing against requisitions and recording in Bin Cards.
Production - Cooking of food grot
Selling - Selling all food items against K.O.T's and Checks
Control - Measurement of performance of departments and of total operation.
YIELD
To have an affective control the management must establish the number of standard portions that are obtainable from all major items that appear on restaurant's menu. For example from a carcass of 8 kg lamb meat the number of standard portions for mutton curry should be so many and each portion must weight so many grams. The standard weight of fat, bone and other specific joints should be so much and the following dishes and these many numbers of portions should be taken out from the carcass. The term 'Standard' is synonymous with the phrase "What it should be Standards are aids to management for the control of food and beverage department and for the measurement of efficiency of kitchens and bars and specially the butchery department.
After establishing the standard yield for all the major items, it is possible to plan the menu costing and pricing. It also helps in volume forecasting for specific items into raw material requirements.
The control department should weight the standard portion size at random to maintain the portion standard. Even the number of portions taken out from a unit should also be calculating as this will help in controlling the food cost and maintaining the standard portion size. It should be also kept in mind that the exact yield of the cooked food will be different from the raw food's yield. In case of dry food the weight of the dish will reduce after cooking as the moisture will evaporate. For example a marinated portion of fish weight 250 grams before frying will reduce to say 230 grams after frying.
The standard yield of a particular product Is the
usable part of that product after initial preparation, or the edible part of
the product after preparation and cooking
Test to arrive at yield:
— Yield test = servable weigh
/ Original weight
ADVANTAGES OF
STANDARD YIELD:
1.
It determines the most appropriate and advantageous
size/weight to buy.
2.
Act as an aid in the purchasing of the foodstuff.
3.
Act as ‘double check’ for purchasing department.
4.
Act as safeguard against pilferage or wastage in kitchen.
5.
An aid to accurate food costing.
OBJECTIVE OF
STANDARD YIELD:
·
To establish a standard for quality and no. Of portions from
a specific item of food.
·
To establish a standard for comparison with the operating results,
thereby measuring the efficiency of the kitchen.
·
To establish an objective method of evaluating the standard
purchase specifications.
·
To establish a standard cost factor for each item of food.
·
To assist in converting forecasts into raw materials
requirements.
Various
tests are conducted by the chef to arrive at the standard yield. Once yield is
standardised, all the food production staff is required to produce the desired
standard yield.
PURCHASING
OFFICER AND ITS IMPORTANCE:
The person who heads the staff responsible of food purchasing is designated as Purchase Officer / Manager. The designation of the head of purchase department may differ depending upon the type and size of establishment. In a large hotel or a chain of hotels there might be specialize purchase officer for purchasing meat. poultry, fish, fruits and vegetables, groceries, alcoholic beverages, soft drinks. In fact for purchasing beers, wines, spirits, liqueurs, etc. a large hotel may hire different specialized officers. Where there are various purchase officers, the head may be designated as a Purchase Manager or Director Purchases.
In a medium-sized hotel/restaurant, the catering manager may be assigned the duties of purchasing raw material for kitchen. In smaller hotels, the chef may be assigned to purchase perishable items and the grocery and non perishable items can be purchased by the hotel's manager himself.
Qualifications:
Keeping in view the importance of purchasing for controlling both the cost and quality of production, it is essential for the purchasing officer to be properly qualified, trained and experienced. He should be well adverse with the mercantile law, economics, accounting, marketing, inspecting the quality. He may also take the help of Chef wherever possible or desired. The integrity of the purchase officer should not be of doubtful in nature. He should have a good vision, analytical judgement of values and an ability to co-operate and communicate clearly with one and all.
Duties of Purchasing Officer :
The duties of Purchasing Officer will differ from establishment to establishment
Broadly the following should be his duties:
1. Regular Supply:
It must be ensured by the Purchase Officer that the food and beverages of the right quality and quantity must be supplied to the hotel regularly. The orders should not be cancelled due to non availability of basic raw material.
2. Co-Ordinates:
Purchase Officer
should co-ordinate with receiving department, stores, cellars so that the goods ordered are received in
right quantity and quality and are stored properly.
3. Economical and Better Quality:
The Purchase Officer must always try to find out the new suppliers who can supply better quality and comparatively cheaper items. Every penny saved in purchasing increases in profit of the hotel.
4. Co-operates with Kitchens:
He co-operates with Kitchens to standardize commodities, so as to keep stock levels as low as is efficiently possible.
5. Co-operates with Control:
He co-operates with Control department, Kitchens and Restaurants to check that the items purchased are satisfactory with regard to quality and yield.
6. Co-operates with Accounts:
He co-operates with Accounts department regarding the payment of items received. The payments must be made timely to ensure the better quality items at competitive rates and wherever possible hotel should receive cash discount or discount for early payments
7. Reports to Management:
He briefs the management regarding his department's activities and discusses regarding the policy formation for his department..
8. Purchasing Research:
The Purchase Officer as far as possible delegate the routine purchasing to his subordinates and he must make research regarding the purchase price of various items, prepare budgets and compare the purchase cost (cost of production) with selling price and ensure that it is as close to the budgeted cost as possible. The quality of item purchased should give the maximum yield to the hotel and there should be negligible loss in storing, cooking and serving. In India the food cost is the major single cost of the food sold in majority of the catering establishments.
The
Purchasing Procedure:
Purchasing Procedure has the following stages:
1. Kitchens, Restaurants, Bars, etc send their requisitions to the store and stores intimates purchase department regarding the requirements. The procedure Gorand specimen for making requisition slip can be seen in the chapter "Storing and Issuing Control'.
2. Purchase officer makes the final list of items to be purchased and decides the department / supplier from whom to purchase and the quantity and quality required.
3. Either he places order on telephone and sends the purchase order later or the order is placed against purchase order. A copy of the purchase order is marked to stores department so that stores can receive the items as per the purchase specifications.
4.The goods are received along with the supply order by the stores department. The stores check the quality, quantity, weight etc. and checks the purchase order and supply order. After ensuring the right quality and quantity he signs the supply order and returns the copy of supply order to the supplier. A copy of the supply order is also send to purchase department and accounts department. The supplier sends the bill along with a supply order and purchase order to accounts department for settlement of the bill
5. The stores receive the goods; enter in the stores and supplies to the respective departments.
Selection of Supplier:
After receiving the requisition form from Kitchens, Restaurants, Bars, etc. the Purchase Officer decides the quantity to be purchased after referring to the stock with the help of Bin Card. If the management has a policy to procure non perishable items for the whole month in order to get discount for volume purchasing then the purchase department forecasts the whole month's requirement after consulting the operational departments and stores. This will reduce the paper work and also reduce the load on purchase department, store department, receiving department, etc apart from saving money on items purchased.
After finalising the quality and the quantity to be purchased the next step is to decide the supplier to whom the contract is to be given. Ideally a supplier should be selected from those with whom business has been done before, as this will ensure the receipt of right quality of goods ordered. Before placing order with the new supplier, it is important to check the credentials of supplier and his ability to supply regularly at competitive price the right quality of products.
The following
information should be taken from a New Supplier:
1. Full details of the firm:
The complete detail of the firm, head office, financial position, banker's name, previous year's balance sheets, details of other customers, etc. should be collected.
2. Price List:
The recent price list along with the terms for discount should be collected. This should be compared with other prospective suppliers.
3. Payments:
The terms of payments, modes of payment, etc. should be checked and compared with other prospective suppliers. This should also include the terms regarding cash payment and the credit terms and period offered by the supplier.
4. Visit to the Supplier:
A visit to new suppliers is also necessary, as the claims of sales men as to the size of supplier, its storage facilities and transport should also be checked, as well as the attitude of the supplier to new customers.
Number of
Suppliers:
Hotel must have a list of various suppliers for each type of product purchased. The suppliers list should be rated depending upon the supplier's performance. The old suppliers whose goods are rejected or returned due to poor quality or packaging should be black listed. Suppliers supplying goods late should also not be placed orders. The suppliers should be intimated about the reasons for not placing orders as this will ensure the timely supply of goods and that too in good quality.
Methods of
Purchasing:
The true cost of an item is different from the printed price of the same item. The true costs incurred will be the invoice price less discounts. To this price carriage inwards, packaging, insurance, forwarding cost, etc is to be added. In case of purchasing of heavy equipments the installation cost is to be added.
*****************************************************************************
ADVANTAGES OF
STANDARD YIELD:
1.
It
determines the most appropriate and advantageous size/weight to buy.
2.
Act
as an aid in the purchasing of the foodstuff.
3.
Act
as ‘double check’ for purchasing department.
4.
Act
as safeguard against pilferage or wastage in kitchen.
5.
An
aid to accurate food costing.
OBJECTIVE OF
STANDARD YIELD:
· To establish a standard for quality
and no. Of portions from a specific item of food.
· To establish a standard for
comparison with the operating results, thereby measuring the efficiency of the
kitchen.
· To establish an objective method of
evaluating the standard purchase specifications.
· To establish a standard cost factor
for each item of food.
· To assist in converting forecasts
into raw materials requirements.
Various
tests are conducted by the chef to arrive at the standard yield. Once yield is
standardized, all the food production staff is required to produce the desired
standard yield.
PURCHASING
OFFICER AND ITS IMPORTANCE:
The person who heads the staff responsible of food purchasing is designated as Purchase Officer / Manager. The designation of the head of purchase department may differ depending upon the type and size of establishment. In a large hotel or a chain of hotels there might be specialize purchase officer for purchasing meat. poultry, fish, fruits and vegetables, groceries, alcoholic beverages, soft drinks. In fact for purchasing beers, wines, spirits, liqueurs, etc. a large hotel may hire different specialized officers. Where there are various purchase officers, the head may be designated as a Purchase Manager or Director Purchases.
In a medium-sized hotel/restaurant, the catering manager may be assigned the duties of purchasing raw material for kitchen. In smaller hotels, the chef may be assigned to purchase perishable items and the grocery and non perishable items can be purchased by the hotel's manager himself.
STANDARD PURCHASE SPECIFICATION
Standard purchase specification are concise description of quality, size,
weight , or count factor desired for a particular item, Specification buying
will give uniformity and consistency to purchasing and receiving, that will aid
to maintain a desire food cost and create a standard product.
Each sps would be particular to an hotel and is determined by the management with reference to its catering policy, menu requirements and Price range.
Copies of SPS should be kept by the goods receiving clerk,food control clerk and is sent to all the approved suppliers of the hotel.
OBJECTIVE:
¨ To establish a suitable buying
standard for particular commodity for the hotel.
¨ To furnish the supplier in writing in
specific term the requirement of the hotel.
¨ To help in setting the price of a
commodity.
¨ To obtain a standard product material
for f & b dept.
¨ To obtain a standard product so that
measurement of performance of departments can be accurate.
Uses for Standard
Purchase Specifications:
- They force owners or managers to
determine exact requirements in advance
- They are often useful in menu
preparation
- They eliminate misunderstandings
between stewards and purveyors
- Allows for true competitive
bidding
- Eliminates need for detailed
verbal descriptions
- They facilitate checking food as
it is received
The
purchase specifications contain:
¨ Definition of each items.
¨ Grade or brand name of each item
¨ Weight, size, or count.
¨ Unit against which price should be
coated and
¨ Special note for commodity
ADVANTAGE OF
STANDARD PURCHASE SPECIFICATION:
¨ Establishing a buying standard of
commodity so that a standard product is available to the customer.
¨ Provides detail information to
receiving dept. and stores as to the standards to food commodity accepted.
¨ Makes staff, chef, food and beverage
manager, and other staff aware of the difference that can occur in the size,
weight, quality and quantity etc. of the product.
¨ The specification acts as an
aide-memoir to all concern of what was agreed.
¨ Gives consistency to the final
product when offered to the consumer.
FACTOR TO BE
CONSIDERED TO MAKE SPS:
Management (F & B manger, chef, purchase
manager, & F & B controller) establishes the purchase specification
based on:
¨ Market
¨ Menu
¨ Portion size
¨ Selling price
¨ Yield test
Qualifications:
Keeping in view the importance of purchasing for controlling both the cost and quality of production, it is essential for the purchasing officer to be properly qualified, trained and experienced. He should be well adverse with the mercantile law, economics, accounting, marketing, inspecting the quality. He may also take the help of Chef wherever possible or desired. The integrity of the purchase officer should not be of doubtful in nature. He should have a good vision, analytical judgement of values and an ability to co-operate and communicate clearly with one and all.
Duties of Purchasing Officer :
The duties of Purchasing Officer will differ from establishment to establishment
Broadly the following should be his duties:
1. Regular Supply:
It must be ensured by the Purchase Officer that the food and beverages of the right quality and quantity must be supplied to the hotel regularly. The orders should not be cancelled due to non availability of basic raw material.
2. Co-Ordinates:
Purchase Officer should
co-ordinate with receiving department, stores, cellars so that
the goods ordered are received in right quantity and quality and are stored properly.
3. Economical and Better Quality:
The Purchase Officer must always try to find out the new suppliers who can supply better quality and comparatively cheaper items. Every penny saved in purchasing increases in profit of the hotel.
4. Co-operates with Kitchens:
He co-operates with Kitchens to standardize commodities, so as to keep stock levels as low as is efficiently possible.
5. Co-operates with Control:
He co-operates with Control department, Kitchens and Restaurants to check that the items purchased are satisfactory with regard to quality and yield.
6. Co-operates with Accounts:
He co-operates with Accounts department regarding the payment of items received. The payments must be made timely to ensure the better quality items at competitive rates and wherever possible hotel should receive cash discount or discount for early payments
7. Reports to Management:
He briefs the management regarding his department's activities and discusses regarding the policy formation for his department..
8. Purchasing Research:
The Purchase Officer as far as possible delegate the routine purchasing to his subordinates and he must make research regarding the purchase price of various items, prepare budgets and compare the purchase cost (cost of production) with selling price and ensure that it is as close to the budgeted cost as possible. The quality of item purchased should give the maximum yield to the hotel and there should be negligible loss in storing, cooking and serving. In India the food cost is the major single cost of the food sold in majority of the catering establishments.
The
Purchasing Procedure:
Purchasing Procedure has the following stages:
1. Kitchens, Restaurants, Bars, etc send their requisitions to the store and stores intimates purchase department regarding the requirements. The procedure Gorand specimen for making requisition slip can be seen in the chapter "Storing and Issuing Control'.
2. Purchase officer makes the final list of items to be purchased and decides the department / supplier from whom to purchase and the quantity and quality required.
3. Either he places order on telephone and sends the purchase order later or the order is placed against purchase order. A copy of the purchase order is marked to stores department so that stores can receive the items as per the purchase specifications.
4.The goods are received along with the supply order by the stores department. The stores check the quality, quantity, weight etc. and checks the purchase order and supply order. After ensuring the right quality and quantity he signs the supply order and returns the copy of supply order to the supplier. A copy of the supply order is also send to purchase department and accounts department. The supplier sends the bill along with a supply order and purchase order to accounts department for settlement of the bill
5. The stores receive the goods; enter in the stores and supplies to the respective departments.
Selection of Supplier:
After receiving the requisition form from Kitchens, Restaurants, Bars, etc. the Purchase Officer decides the quantity to be purchased after referring to the stock with the help of Bin Card. If the management has a policy to procure non perishable items for the whole month in order to get discount for volume purchasing then the purchase department forecasts the whole month's requirement after consulting the operational departments and stores. This will reduce the paper work and also reduce the load on purchase department, store department, receiving department, etc apart from saving money on items purchased.
After finalising the quality and the quantity to be purchased the next step is to decide the supplier to whom the contract is to be given. Ideally a supplier should be selected from those with whom business has been done before, as this will ensure the receipt of right quality of goods ordered. Before placing order with the new supplier, it is important to check the credentials of supplier and his ability to supply regularly at competitive price the right quality of products.
The following
information should be taken from a New Supplier:
1. Full details of the firm:
The complete detail of the firm, head office, financial position, banker's name, previous year's balance sheets, details of other customers, etc. should be collected.
2. Price List:
The recent price list along with the terms for discount should be collected. This should be compared with other prospective suppliers.
3. Payments:
The terms of payments, modes of payment, etc. should be checked and compared with other prospective suppliers. This should also include the terms regarding cash payment and the credit terms and period offered by the supplier.
4. Visit to the Supplier:
A visit to new suppliers is also necessary, as the claims of sales men as to the size of supplier, its storage facilities and transport should also be checked, as well as the attitude of the supplier to new customers.
Number of
Suppliers:
Hotel must have a list of various suppliers for each type of product purchased. The suppliers list should be rated depending upon the supplier's performance. The old suppliers whose goods are rejected or returned due to poor quality or packaging should be black listed. Suppliers supplying goods late should also not be placed orders. The suppliers should be intimated about the reasons for not placing orders as this will ensure the timely supply of goods and that too in good quality.
Methods of
Purchasing:
The true cost of an item is different from the printed price of the same item. The true costs incurred will be the invoice price less discounts. To this price carriage inwards, packaging, insurance, forwarding cost, etc is to be added. In case of purchasing of heavy equipments the installation cost is to be added.
PURCHASING
BY CONTRACT:
•
A
contract is entered with the supplier for the commodities to be supplied at the
regular interval, usually at advantageous price. A contract is a legal
document and conditions of contract should be prepared preferably by solicitor
of a firm.
There are
two types of contracts:
1- The
specific period contract:
it aims in determining the source of
supply and price of goods for a slated period either for 3 months or six
months. This type of contract is suitable for items which have fairly stable
price such as butter, bread, milk cream etc.
2- The Quantity
contract:
Its aim is to secure continuity of supply of
a given quantity of an essential item at an agreed price over a particular
trading period. This type is suitable for fruits, vegetables, etc
PERIODIC ORDER
METHOD:
•
Non
– perishable items have a longer shelf life than perishable. These items
require in-frequent ordering and leave the purchase officer to attend to
perishable.
•
The
officer establishes with the advice of management period for ordering purpose-
once a week, or every two week or once each month.
•
The
officer reviews the entire stock of non- perishable items and determines how
much of each has to be ordered.
•
Items
required for the upcoming period – items presently in hand + items wanted on
hand at the end of the period to last until the next delivery.
Periodical
Purchasing:
•
The
requirements of the establishment are periodically estimated and regular orders
are placed on the bases of week / fortnight/monthly.
•
This
method ensures that stock is maintained at a regular level. Master quotation is
prepared on basis of periodic requirement, price quoted, and storage place
available.
•
This
type is mostly used for grocery type commodities.
Daily
marketing / daily marketing quotation / by requirement:
•
Generally
used for perishable goods on daily basis.
•
A
list of approved supplier is prepared.
•
A
daily market list is prepared by Executive chef on basis of stock in hand .
•
On
receipt of the daily market list the purchase dept. contacts the approved supplier by phone for quotations.
•
The
quoted price is entered in daily market list and decision is taken by the
purchase manager as to which supplier will get the order.
OPEN MARKET
PURCHASING:
The
requirements of the establishment are estimated. Quotations are asked from various suppliers. The quantity and price are compared and orders
are placed to the firm keeping in mind the price and quantity of provision.
1-Cash and carry method:
Mostly
suitable for small and medium size hotel. Complete freedom for purchasing from
the market at the competitive price and the buyer can personally check for all
the items purchased. However, the caterer has to pay by cash and no transport
is provided.
2- Paid Reserve method:
This method
is used when the quantity of supply of the items for the menu which is of
particular importance for specialty restaurants, such as Jumbo tiger prawns,
fillets of beef etc. To be on the safe side the caterer buys in advance a large
quantity of these items to cover the future need. The stocks are generally held
by the supplier.
3- Cost plus method:
This method
is more suitable for welfare catering institution such as hospitals, boarding
houses etc. The approved supplier is paid the same price for his commodities
plus a percentage to include the cost of handling, delivery charges and margin
of profit.
4- Total supply method:
There are
some suppliers who are able to offer a full supply service of all commodities.
An F&B establishment may agree for such supplier. This system has the
advantage of only having to negotiate with one supplier, a reduced volume of
paper work and less delivery cost.
Some others
methods are:
CENTRALIZED PURCHASING: This system is popular with chain
operation. In this system the requirements of each individual unit are relayed
to a central office. The central office determines the total requirement of all
the units and then makes a total purchases either for delivery to the
individual units by the dealer or for centralized delivery. The main decision
as to centralize purchasing is taken by the top management.
Advantages:
•
Volume
purchasing leads to lower price.
•
Opportunity
to obtain desired quantity because of greater choice of market
•
Purchase
as per specification
•
Maintain
large inventories which ensure constant supply to individual units.
•
Check
and control over individual units food purchasers.
Disadvantage:
•
Each
item has to accept the standard items in stock.
•
Units
have little freedom to purchase for its own particular need.
•
Units
cannot take advantage of local specials at reduced price.
•
Since
menus are standardized, there is a limited freedom to individual units to
change the menu.
SEAL BID
PURCHASING: The
proprietor makes the contract with the suppliers who quotes the lowest price in
comparison to all the other suppliers. This system eliminates partiality and
therefore it is used generally by big organizations and govt. institutions.
BLANK CHEQUE OR
BLIND BUYING:
This kind of buying occurs when there is an extreme shortage of a commodity in
the market or when some other condition exists. This requires buying of an item
almost regardless of its price.
ONE STOP
PURCHASING:
Under this method, proprietor purchases everything from one supplier only. All
the business is given to single supplier. The supplier charges the lower prices
because he is receiving large orders. F&B DEPT. has an advantage of less
volume of paper work and delivery cost.
PURCHASE INDENT:
Non
perishable items are purchased against authority of purchase indent, which
originates in following cases:
•
A
regular store-room inventory has its pre determined minimum stock level.
•
A
non store room inventory item is required by a department than the indent
originates from the head of the department duly approved by the general
manager.
All purchase
indent are made in 3 copies:
•
Original
to purchase dept.
•
duplicate
to department head
•
triplicate
to store
In case of
non store room item:
–
original
to purchase
–
duplicate
to store
–
Triplicate
to indenting dept.
“Steward
List” is a indent made for non perishable item, raised by the Executive chef in
triplicate.
–
Original
to purchase dept.
–
Duplicate
to receiving.
–
Triplicate
to chef.
Purchase order
ž Amount of liquor to be ordered are
determine by physical inventories, issues, requisition, reorder points as
determined from inventory sheet.
ž Purchase order Include:
1)
Terms
& Condition
2)
Delivery
Date
3)
Requisition
Number
4)
Special
Instruction
5)
Shipper
6)
Freight
Charge
ž Copies Forwarded to:
1)
Purveyor
2 copies
2)
Receiving
Department
3)
Accounts
Department
4)
Bar
Manager
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