Final Flashcards
(37 cards)
Why is IDDSI important?
It provides a standardized way for measuring and describing texture modified foods
What does IDDSI stand for?
International
Dysphagia
Diet
Standardization
Initiative
What is procurement?
A systematic exchange between a seller and a buyer to obtain goods and services
What part of the foodservice system is procurement part of?
it is the first functional subsystem of transformation
(Transformation includes procurement, production, sanitation/maintenance, and distribution)
What are the 4 activities that exist within the subsystem of procurement?
1) purchasing - right product, amount, time, price
2) receiving
3) storage
4) inventory control
What are the fundamental steps in purchasing (procurement)?
- recognize the need
- describe the item needed
- authorize the purchase requisition - need 600 L eggnog
- negotiate with suppliers
- evaluate proposals/placement of order
- verify invoice and delivered materia
- close purchase record and payment of material
Example: Eggnog
What does this mean: purchasing as a cost centre, or purchasing as a profit centre
Purchasing as a cost centre
- doesnt generate profit to cover expenses
- patients arent paying for it, not expecting to make profit
- example: patient food services
Purchasing as a profit centre
- generates revenues greater than expenses
- Example: hospital retail cafeteria
Hospitals have both cost centres and profit centres
Who are the players in the purchasing/marketing channel (procurement)
1) the buyer
2) market
- producer (egg farmer)
- manufacturer (buys the eggs, makes eggnog)
- distributor
- supplier (Cisco. buys a bunch of stuff)
- customer
3) Value added
- process/manufacturing increases the market value of raw materials
What are the 3 market regulations that keep purchasing (procurement) in check?
- government
- makes laws to protect consumers
- promotes competition among industries
- ex: laws against unpasteurized milk - industry
- satisfies consumer while making a profit
- has to comply with legislation
- ex: labelling foods kosher, grading of meats - consumer
- alerts government about food safety, nutrition, environmental concerns, etc.
What is the primary function of the buyer (procurement)
to buy required products for desired use at minimal cost
How does one decide what they are going to purchase?
1) value analysis
- relationship between quality and price
- do cost benefit analysis
-ex: i can buy the best ahi tuna, but is that waht i need
2) make or buy decisions
- way of deciding whether to make a purchase from suppliers
What is knowledge one needs to have when purchasing?
1) products to be procured
2) market
3) org’s buying procedures
4) market trends
Make or Buy decisions are a way of deciding whether to make a purchase from suppliers. what are 4 factors involved in make or buy decisions?
1) Quality - what are the diff quality options
2) Service - delivery days, responsiveness
3) Quantity
4) Cost
When it comes to purchasing, what are specifications? List 3 types of specifications?
Specifications are a list of characteristics desired in a product for a specific use.
1) technical specifications
- grade A meat, dairy eggs, viscosity of a texture modified product
2) approved brand specifications
- kosher products, manufacturer specifications
3) performance specifications - how many trays per minute can be cleaned in a new diswhwasher
What is the difference between formal and informal methods of purchasing?
formal
- done by government institutions
- use competitive bidding
has formal contract
Informal
- orders are called over the phone and made personally with the sales rep
What does the law of agency say in purchasing?
deals with the obligation a buyer has to act for an org, and vice versa
what does the law of warrantee say in purchasing?
government institutions are required to use competitive bidding, which results in a formal contract
what are the 2 methods of purchasing (procurement)?
What is the difference
1) independent purchasing
2) centralized purchasing
Independent purchasing is done by a unit or department of an org. In small hospitals, might be done by the food service manager
Centralized purchasing is done by one person/department. the head of department reports directly to top management.
**if someone does purchasing for all retail at sunnybrooke, and someone does it for all meals at sunnybrooke, that’s still considered centralized
What are the pros and cons of centralized purchasing (procurement)
Centralized purchasing is done by one person/department.
Pros:
- better control
- one set of records
- develop personnel with specialized knowledge
- better performance in other departments
- economic and profit potentials
Cons:
- buys are not experts in specific product lines
What are 3 other methods of purchasing?
1) group purchasing
- joint purchasing. onsite manager come
together from different operations
- multiple orgs order paper towel together
- Advantages: volume pricing, time and
money, only 1 person deals with it
2) warehouse club purchasing
- self service, cash and carry, and wholesale
warehouses
- used by small independent foodservice
operations
- Costco
3) just-in-time purchasing
- purchasing products as needed
- becomes more important for fresh goods
- goals: secure a steady flow of raw material,
reduce lead time, reduce inventory, reduce
cost
- Example: produce uses just-in-time
Purchasing - once you’ve decided on method of purchasing, need to choose a supplier, and also evaluate the supplier
Purchasing records include the following steps:
1) Purchasing requisition
- this is the first document in the purchasing
process
- used by foodservice managers to request
food items from a purchasing manager
- says this is how many we need, when we
need, etc
2) purchase order
- completed by the buyer and given to the
supplier
- outlines specific terms between
buyer/supplier
3) invoice
- prepared by the supplier
- contains same info as purchase order
- at time of delivery, compare supplier invoice
with purchase order and quantity received
- any discrepencies should be recorded
what is the first document in the purchasing process?
purchasing requisition
What is the 2nd part of the procurement process?
receiving
