14 | Research, Develop, and Manage the Budget Monitor Expenses and Productivity Glossary
Productivity Measurement of output relative to input
Internal Benchmarking Comparing an operation’s current performance with its past performance
External Benchmarking Comparing an operation’s current performance with that of another similar operation
Productivity, measuring, monitoring, and reporting are daily management responsibilities. Financial and personnel resources are limited, and managers are often called upon to do more with less. Administrators want data to prove that facility departments are running efficiently and effectively, and it is up to the department heads to provide that data.
Productivity is measured by comparing the output with the resources needed to produce that output (the input). Table 14.15 lists some of the more common foodservice productivity measures or benchmarks:
• Meals per labor hour • Labor hours per meal • Minutes per meal • Trays per minute
Wise managers track this data over time to look for trends. This is called benchmarking. Managers keep records of both internal and external benchmarks. Internal benchmarking is comparing an operation’s current performance with its past performance. External benchmarking is comparing an operation’s current performance with that of another similar organization (Hudson & Booth, 2022). Monitoring the data on a daily or weekly basis gives managers information on what is working well and what can be improved upon in the operation (Gordon Food Service, 2018). Scan the QR code for ANFP’s EDGE article on using benchmarking in an operation (Thaman, 2020).
The concept of spend down is discussed in Chapter 16. A spend down is essentially the purposeful use of remaining funds in the budget to help ensure financial resources are fully used and that the operation remains viable. A monthly spend down tracker is reviewed and a sample of a monthly spend down tracker is illustrated in Chapter 16.
VIEW RESOURCE:
ANFP EDGE article: Using Benchmarking in Your Operation