Assessment 1 – Project SSBT

Assessment 1 – Project

Task 1

This assignment, I will be talking about my restaurant business I used to work for.

Calculate Cost-Effective order Quantities

Using the FIFO method

This is to assessment the amount of wastage that the restaurant produces every week and trying to reduce this. This could be by implementing a FI-FO system of stock cycle. This is the First in First out method of stock circulation which means that the stock that was purchases first should be used first. This makes sure that the stock left over is still fresh and can survive longer.

Improve ordering quantities is important to reduce the amount of wastage and improves the efficiency of the restaurant. This means improving the purchasing of stock to make sure that there is no wastage any more. If there is too much stock purchased there will be a large amount of wastage.

Inventory System

Kanban is a scheduling system which is used to achieve a more lean production. This is a strategy which involves identifying areas within a production or manufacturing process that could be improved. This improves the efficiency of an organisations production process and therefore provides the organisation with a very effective competitive advantage over other competitors. In simple terms, lean production is achieved by gaining more for each dollar or other type of resource. It is about maximising efficiency to create a production process that gives the company the high profitability and therefore, more money to invest into the perfection of the production process.

Kanban achieves lean product by controlling logistics in such a way that it maximises the production of an organisation and maintains this level of production. Kanban was first implemented in the Toyota company by Taiichi Ohno, in order to improve and increase the production level of Toyota. The Kanban system was very effective for Toyota and became an effective tool to gain a competitive advantage over other international automotive manufacturers. Toyota’s success with the Kanban system became well known throughout the world during the 1950s and other countries began to implement the system and experience whether the system is suitable and effective for their organisation.

Stock Security

Protect stock

Identify and mark expensive portable equipment (such as computers). If possible, fit valuable stock with security tags – such as Radio Frequency Identification tags – which will sound an alarm if they are moved.

Don’t leave equipment hanging around after delivery. Put it away in a secure place, record it and clear up packaging. It is a good idea to dispose of packaging securely -leaving boxes in view could be an advertisement to thieves.

Take regular inventories.

Put CCTV in parking lots and other key locations.

Theft by employees can sometimes be a problem. To prevent this the company:

Train staff about the security systems and your disciplinary policies and procedures. Training about the cost of stock theft will help, as many people aren’t aware of the implications for company turnover and job security.

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Train staff about the security systems and your disciplinary policies and procedures. Training about the cost of stock theft will help, as many people aren’t aware of the implications for company turnover and job security.

Set up procedures to prevent theft. Staff with financial responsibilities should not be in charge of stock records.

Restrict access to warehouses, stockrooms and stationery cupboards.

Regularly change staff controlling stock to avoid collusion or bad practice.

Supply Sources

This restaurant gets all of its supplies from certain suppliers. These suppliers provide fresh produce to the restaurant. With a schedule, supplies are delivered to our restaurant on regularly intervals with are specific to our needs. We get most of our foods from these suppliers. All our foods are stored safely and properly, following the regulations of the food and safety supervisor of NSW food authority. These foods are stored in a store room which have specific areas for each food. These foods come before the week end because that is when we get the most customers. One week days the vegetables are bought at the local market daily. The amount of chicken our company uses on weekends is about 9 kg and on week days only about 4 kg. Only about 2 kg of beef is used on week days and 5 kg of beef is used on weekends. About 1 packet of scallops is used every week day and about 2 packets are used every day on the weekends.

Terminology

F-I-F-O – First in First Out

Bulk – Bulk materials, bulk inventory, bulk storage

COGS – cost of goods sold

CRP – Capacity Requirements Planning

JIT – Just in Time

L-I-F-O – last in first out

Standard Business Periods

Monday to Thursday are the lowest peak times. During these 4 days, the restaurant makes little profit and utilises little ingredients. The restaurant opens at Mid-day however only generates high amount of customers after 6pm. The customers begin to decrease by 9 and most customers are gone by 11. The restaurant closes at 12.

On Friday, Saturday and Sunday, the restaurant gains much more customers during the 6-9pm period. It also closes later at 2am, as more customers seem to stay for chatting with friends, etc.

Task 2

The first reason for stock loss and damage is a poor storage environment. A restaurant needs a very specific storage temperature for different ingredients and this means that many stock products can expire quicker if they are not placed in appropriate conditions. The storage area must also be organised and hazard free, such as proper lighting, no obstacles or misplaced boxes.

The second reason is a poor stock rotation. This is where the F-I-F-O rotation comes into place. This with the Kanban or Just In Time stock control system, the restaurant can minimise wastage of ingredients, but using products before they go bad…

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