Key Performance Indicators (KPIs) & Benchmarking

Transcription

1 June 18, 2018 Key Performance Indicators (KPIs) & Benchmarking TASN Annual Conference Presented by: Jean Ronnei, SNS, Senior Consultant

2 Today s Learning Goals Understand KPI & benchmarking KPIs Internal External Learn about KPI resources ICN, SNA, CGCS, other Discover top foundational KPIs Deep Dive Meals Per Labor Hour (MPLH) 2

3 Affiliation / Disclosure Jean Ronnei, SNS, Senior Consultant ProTeam Foodservice Advisors Corporate Partners: 3

4 What Are Key Performance Indicators (KPIs) KPIs are measures that focus on the most critical aspects of an organization s performance. These measures provide a rigorous, numbers-oriented approach to target specific areas of emphasis, and assess results in an objective manner. Rushing, K. (2017). Essential KPIs for School Nutrition Success. Hattiesburg, MS: Institute of Child Nutrition, Applied Research Division. 4

5 What is Benchmarking? Benchmarking is defined as comparing one s performance with a similar operation s or unit s performance to assist users in identifying best practices, and to identify areas to focus improvement efforts on. 5

6 Internal Benchmarking Collecting and analyzing KPI data from a single school or schools within a district over time for comparison to itself for measuring school or district performance. Examples: Meals per Labor Hour (MPLH) Participation between like schools Participation month to month, YTD Sick time Worker s Compensation 6

7 External Benchmarking The SNA Operations Report is compiled every other year. This report provides some industry KPI benchmark information. National Data from 2016 SNA Operations Report 7

8 External Benchmarking Council of the Great City Schools(CGCS) 97 Foodservice KPIs 8

9 Top Foundational KPIs Food Cost Per Revenue Food Cost Per Meal Per Revenue Breakfast Participation (District-wide) Breakfast F/RP Participation Rate Fund Balance as % of Revenue Labor Costs Per Revenue Lunch F/R Participation Rate Lunch Participation Rate (District-wide) Total Costs as % of Revenue Costs Per Meal Meals Per Labor Hour Inventory Turns 9

10 Saint Paul Public Schools 10

11 Food Cost Per Meal Per Revenue 11

12 Food Cost Per Meal 12

13 Breakfast Participation Rate (District-wide) 13

14 Deep Dive: MPLH Financial success of the SN program Monitor the efficiency of operations Determines appropriate staffing levels Developing Labor budget 14

15 How to Calculate MPLH MPLHs are calculated based on actual productive, paid labor hours assigned to a site. # of Meals or Meal Equivalents (MEQs) # of Planned Productive Labor Hours (PPLH) Rushing, K. (2017). Essential KPIs for School Nutrition Success. Hattiesburg, MS: Institute of Child Nutrition, Applied Research Division. 15

16 Meal Equivalents (MEQs) MEQ is the conversion of different meal services (i.e., breakfast, supper, and snacks) and non-program food sales to the equivalent of one federally reimbursable student lunch for comparison purposes. A federally reimbursable student lunch is the standard unit of measurement. MEQs are used in many KPIs. Rushing, K. (2017). Essential KPIs for School Nutrition Success. Hattiesburg, MS: Institute of Child Nutrition, Applied Research Division 16

17 Calculating Meal Equivalents (MEQs) Why Calculate In SN programs, a federally reimbursable student lunch is the standard unit of measurement most often used to gauge the effectiveness and efficiency of a program. Converting data for all food sales to meal equivalents allows the SN professional to calculate KPIs, while effectively benchmarking financial performance, both internally and externally. 17

18 Meal Equivalent (MEQ) Values (1) Lunch or Supper (student or adult) = 1 MEQ (1) Breakfast = 0.67 (1) Snack = 0.33 Non-program food sales Free lunch reimbursement rate + current USDA Food value Rushing, K. (2017). Essential KPIs for School Nutrition Success. Hattiesburg, MS: Institute of Child Nutrition, Applied Research Division 18

19 A look at Productivity (MPLH) Description The number of MEQs served per labor hour represents the primary measure of productivity & production efficiency for SN programs. How often to calculate Weekly, monthly, annually How to calculate MPLH index is calculated on the actual productive, paid labor hours assigned to a site-level SN program. The MPLH can be determined for a school site by dividing the total MEQs for a given time period by the total # of productive paid labor hours for the same time period. Planned Productive Labor Hours (PPLH) include the amount of labor planned for the site. Paid hour for subs are included, but not paid hours for sick, personal or holiday leave. 19

20 Planned Productive Labor Hours Institute of Child Nutrition (ICN) Definition PPLHs include the amount of labor planned by an SN program for managers, kitchen staff, and cashiers. Paid hours for substitutes are included, but not paid hours for sick, personal, or holiday leave. 20

21 PPLH Sample Calculation Insert chart

22 PPLH or Actual MPLH Sample Calculation Number of Meals or MEQs = 41,643 Number of Paid Productive Labor Hours = 2,289 = MPLH

23 Industry Guideline for MPLH MPLH If the MPLH for a site is inside this range, adjustments are likely not necessary If MPLH is 18 or above No adjustment is needed If MPLH is below 14 Labor hours may need to be adjusted

24 Case Study: Benchmarking MPLH Eastern Carver County, MN Director aware that labor hours in similar districts were lower Were ECCs high schools not as efficient? What might she learn from an on-site observation Similar district comparison study

25 Enrollment, Attendance & Variables

26 Enrollment, Attendance & Participation Rates ECC s Chanhassen & Chaska s participation exceeded 100% due to other meals served and sold.

27 February 2017 Participation Data

28 ECC MPLH Study 28

29 ECC MPLH Study 29

30 Other Survey Data Collected Who mops kitchen Who washes café tables during meal service Who washes café tables after meal service # Daily menu choices # Cashier positions # Entrees # Lunch periods

31 ECC MPLH Study Results Significant variance between all 8 high schools MPLH 8 to 19 regularly scheduled staff Daily labor hours cashier positions Lunch entrée choices 5-10

32 MPLH Who s Responsible? Site Managers & Area Managers need to know and understand expectations Plan for: Who reviews? How often? Increased meal counts may = more Labor Hours

33 Tracking Data is Vital to Success Use data to demonstrate accomplishments Use the data to instigate change and achieve results Compare data to find areas for improvement Set internal goals Use your resources wisely Cultivate innovation and creativity

34 Resources & Thanks Council of the Great City Schools: Managing for Results ging%20for%20results%20-% pdf SNA Operations Report 20Report% pdf Institute of Child Nutrition Study: Essential KPIs for School Nutrition Success Thanks to Eastern Carver County Schools, MN KPI software is available using Cool School Cafe Points. 34

35 Thank You! Jean Ronnei, SNS (844) x119 proteamadvisors.com