Gauravkrishana

Material Control
-------------------------------------------------------------------------------------------------------------------

Material control basically aims at efficient purchasing of materials, their efficient storing and
efficient use or consumption.

VARIOUS ASPECTS OF MATERIAL CONTROL

1. Purchasing Control
2. Stores Control
3. Issue Control
4. Production control
5. Sales control

OBJECTIVES OF MATERIALS CONTROL

• Material of desired quality should be available when needed for efficient and
uninterrupted production.
• Material should be purchased only when it is needed and in most economic quantities.
• Purchasing of material will be made at the most favorable prices under the best possible
terms.
• materials are protected against loss by fire, theft, animals
• Issues of materials are authorized properly and are accounted for properly.
Gauravkrishana

PRODUCTION CONTROL
------------------------------------------------------------------------------------------------------------------
a. Aims
i) reduce waste ( specially leftovers ),
ii) reduce higher costs than necessary from over production,
iii) eliminate incorrect portion size,
iv) keep food cost as low as possible maintaining the established standards.

b. Forecasting –

Forecasting is a technique of predicting the volume of sales of the

establishment for a specific future period like, for a day, a week, etc.

The following are taken into considerations for forecasting –

i) estimating the total numbers of covers sold from the past records,
ii) analysis of the portions of menu items sold,
iii) popularity ratio – ratio between – meal period : no. of covers sold : menu items
sold,
iv) occupancy in the hotel,
v) special events,
vi) weather,
vii) season of the year,
viii) day of the week,
ix) holidays.

Initial Forecasting –
It is prepared a week in advance and indicates –
i) the estimated meals to be prepared in each selling outlet,
ii) the estimated total of each menu item for each day of the following menu week.

Final Forecasting –
This forecasting takes place the day before the preparation, and is based on –
i) the previous days’ food production and sales figure,
ii) the weather condition.

On comparison with the initial forecasting it might require substantial alterations, the purchase
order sent to the suppliers are amended as soon as possible. The copies of the final volume
forecast are sent to –

i) F&B Manager,
ii) F&B Controller,
iii) Executive Chef,
Gauravkrishana

iv) Purchase Manager,

v) Store Manager,
vi) Others – to whom the information would be of use.

The objectives of Volume Forecasting –

i) to predict the total number of meals to be sold in each selling outlet of the hotel,
ii) to predict the choice of menu items by customers / guests,
iii) to facilitate F&B purchasing,
iv) to ensure availability of all necessary ingredients required,
v) to control food costs in relation to sales,
vi) to enable the F&B Controller to compare actual volume of sales with the one
predicted.

c. Fixing Standards –

The word “standard” is synonymous with the phrase – “ what it should be”. It
actually is the base for any control that is to be implemented. The different
standards in respect to production control are –

i) standard purchase specification

ii) standard yield,
iii) standard recipe,
iv) standard portion size,
v) standard portion cost.

d. Standard Yield –

The term ‘yield’ means the net weight or value of a food item after it has been processed
from raw or as purchased (A.P.), weight or value, and made ready to eat (R.T.E.).

It is the usable part of a particular food product after its initial preparation and cooking. In
large food and beverage outlets, as large quantities of food per week are purchased,
therefore, standard yields must be established for items
Gauravkrishana

such as meat, fish, vegetables, etc. In smaller established standard yields may be
determined for the most expensive items.

The objectives of standard yield are to establish –

i) a standard for the quantity and number of portions obtainable from specific item of
food,
ii) a standard for measuring the efficiency of the production department,
iii) an method for evaluating SPS,
iv) standard cost.

Yield Cooking Loss –

It is the loss in weight or portion size after a food item has been made ready to eat. It helps in
determining final portion cost after cooking.

e. Standard Recipe –

It is a written schedule for producing a particular menu item for a said number of
portions, usually 4 / 100 portions. It lists all the ingredients with their quantities, the
method of preparation, garnish and presentation. It may also contain the photograph of
the dish or a simple drawing for future reference. In case of special organizations, like
hospitals, it may also state the nutritional value of the dish.

Advantages of Standard Recipe –

i) Standard Recipe gives in writing a schedule for producing a food item of specified
quality & quantity,
ii) the exact amount of ingredients used can be known along with the cost of making
the item,
iii) it helps in determining the selling price of the food cost.

d. Standard Portion Size –

A Standard Portion Size represents the amount ( weight, count, size or value) of each
food item which is sold to the guest for a stated price and should be established for all
items, including appetizers, main courses, vegetables, salads, desserts, beverages, etc.

The main objective of standard portion size is to serve the guest with measured
quantity of food for which he is paying, thereby earning guest satisfaction.
Gauravkrishana

It is used as a tool for controlling staff activity regarding production & sales, and
determining standard cost per portion.

Some examples of standard portion control tools are – scoop, spoon, ladle, peg
measure, soup bowl, pony tumbler, etc.

f. Standard Portion Cost –

The standard portion cost is determined on the basis of the size of the portion served to
a guest and the ingredients that are used in preparing of a particular dish.

The following points are considered for determining standard food cost –
i) establishment of standards and standard procedures,
ii) calculation of standard portion costs
Gauravkrishana

Purchasing
a) Aims

The primary aim in purchasing of food is to obtain the best quality of merchandise, based on
specifications established at the most favourable price.

b) Purchasing staff

Purchasing is a function concerned with the search, selection, purchase, receipt, storage and
final use of a commodity in accordance with the catering policy of the establishment. The
person responsible for purchase is also responsible for receiving, storing and issuing. In large
hotels, there is a full time purchase manager/officer responsible for all purchases – F&B
commodities and nonconsumable. In small hotels, the storeroom items (food) are purchased
by an assistant manager, and perishables (food) such as meat, poultry, fish, vegetables, etc.
are purchased by the chef.

c) Source of supply –

A catering establishment depending on its size, type and style and also on the quantity and
quality of commodities required decides on the source of supplies, they may be –
i) direct purchase in cash from market,
ii) through suppliers – on contract & in cash,
iii) direct from wholesalers.

d) Selection of supplier

In case of selection of a supplier, a great deal of exercise and detailed enquires have to be
made –
i) details about the firm, to find its reputation,
ii) information from other customers about their product and services,
iii) recent price lists,
iv) trade terms and conditions such as cash discount, trade discount, etc.,
v) sample of products to check quality,
vi) a visit to the supplier’s firm,
vii) minimum order level,
viii) ordering procedures,
ix) delivery procedures,
x) part deliveries or standing orders,
Gauravkrishana

On selection, the suppliers are put on an approved “ suppliers’ list” and periodically they
are evaluated on –

• price performance
• quality performance
• delivery performance

Types of food purchased – There are 2 categories –

• Perishables – these are those items that have a short useful life after they are received.
They are best to be procured on a daily basis with 13 days stock in hand. E.g. –
vegetables, dairy products, etc.

• Non – perishables these are those items that have a longer shelf life. They can be
stored for weeks or even months. E.g. – cereals,
 pulses, etc.

e) Quality Purchasing –
The quality of an item to be followed would be determined by the Purchase Manager,
Executive Chef and the F & B Manager as per the catering policy, the menu requirements
and its price range, which should be stated in the Standard Purchase Specification (SPS ).
The quality to be purchased should be stated in terms of grade or brand name of the items.
E.g. – Tomato Ketchup Kissan Prawn – Grade A

Definition of SPS
Standard Purchase Specification (SPS) is concise descriptions of quality, size,
weight or count factors desired for a particular item.
A SPS must contain –
i) definition of each item,
ii) grade or brand name of the items,
iii) size, weight or count,
iv) unit against which prices should be quoted,
v) special note for the commodity,
photograph of the ideal / standard item, e.g. – table apple, cherry tomato
Objectives of SPS –

• to establish a suitable buying standard for a particular commodity for the catering
establishment,

• to furnish to the suppliers in writing in specific terms the requirements of the catering
establishment,

• to help in deciding the price of a commodity,

• to obtain a standard product,

• to measure the performance against the standard product.

Advantages of SPS –

i) establishing a buying standard of a commodity so that a standard product is

available for the customer,
ii) inform the supplier in writing, by drawing, or with a photograph or describing
precisely what is required,
iii) provides detailed information to the receiving department and store as to the
standard of foods to accept,
iv) makes everyone aware of the differences that can occur because of the
difference in size, weight, quality and quantity of a product.
v) the specifications act as an aide memoire to all concerned of what
was agreed.

f) Purchase Procedure

The purchase procedure will depend upon he nature, size, standard, location of the
establishment and the forecast of future requirements.

The purchase procedure has the following steps –

i) purchase requisition form is filled up,

ii) selection of the source of supply (from approved suppliers’ list),
iii) entering into a contract with the supplier,
iv) acceptance of commodities,
v) transfer of commodities to the ordering department or to store or to cellar.
 PURCHASING METHODS –

i) Contract Purchasing

A contract is entered with a supplier for the commodities to be supplied at regular

intervals, usually at an agreed upon price which is advantageous for both.

ii) Periodical Purchasing

The requirements of the establishment are periodically estimated and orders are
placed on a weekly / fortnightly / monthly basis. This is suitable for groceries.

iii) Daily Market List / Daily Market Quotation

This method is used for purchasing perishables on a daily basis. A daily market list
is prepared by the executive chef on the basis of quick stock taking of food. On
receipt of the ‘Daily Market List’ the purchase officer contacts approved suppliers
for their prices and then orders for the supplies.

iii Cash & Carry

It is purchasing from the market at a competitive price, and the buyer can personally
check the quantity and quality of each item. The purchaser has to pay in cash and
has also to arrange for the goods to be transferred to the establishment.

iv) ‘Paid Reserve’

In this the caterer buys in advance a large quantity of items like beef, jumbo prawns,
etc. to cover the needs of future months and stocks of which is kept with the
supplier, and the supplier is paid for this. The caterer requisitions his requirements
from the supplier.

v) Cost Plus

In this case, the approved supplier is paid exactly the same price that he has paid for the
commodities plus an agreed percentage to include the cost of handling, delivery charges and a
margin of profit. Suitable for welfare catering establishments
 .

vi) One Stop Shopping / ‘Total Supply’

There are some suppliers who are able to offer a full supply service of all
commodities. The advantage of this system is that the establishment has to negotiate
with one supplier, a reduced volume of paper work and fewer deliveries.

vii) Centralised Purchasing

Suitable in chain operations. In this system the requirements of each individual

unit is relayed to a central office. The central office decides the total requirements
of all units and then makes total purchases either, for delivery to the individual
units by he dealer, or, for centralised delivery.
vii ) Sealed Bids / Tender Purchase

In this procedure sealed quotations are required from one or more suppliers and
orders are placed where the terms are of best advantage to the buyer, after all
elements of price, quality, yield and service are considered. For a Govt. institute
the offer goes to the lowest bidder.

viii) Standing Order

The supplies of certain food items ( specially of highly perishables like – milk, ice-
cream, bread, etc.) can be asked for a supply without securing price quotation first.
However, it is very important that the latest prices of these items are available to
the person when checking the bill for these items.
 Receiving Control

a) Aims –
to ensure one gets the commodities that one has ordered –
i) in the right quality,
ii) in the right quantity and
iii) at receive at the right time.

b) Receiving Staff –

i) in small / medium establishments – it is the same person who does

purchasing is responsible for receiving.
ii) in bigger establishments – there is a receiving personnel / clerk
with assistants takes care of all kinds of receiving.

The Receiving Personnel should –

i) be able to read & understand purchase orders and invoices,

ii) have knowledge of weights and measures,
iii) have good knowledge of quality of food,
iv) be good at performing calculations.

c) Facilities and Equipments –

There should be a hassle free loading and unloading dock with an inclined plane
and near to an elevator.
The equipments include – weighing scales, trolleys, racks, crates, etc. It
also has the required tags, stamps, forms and receiving sheets.

d) Receiving Procedure –

i) all goods are received at the centralised receiving department within

specified time only, under the supervision of the receiving clerk.
ii) the receiving clerk checks for quality ( against SPS ), quantity, price and
time ( against purchase order ) and matches with the invoice.
iii) when everything is in order he signs on the copy of invoice or
delivery note and returns it to the supplier’s man.
iv) if there is any discrepancy –shortage / goods not up to the set
standards – a credit note is made and handed over to the
supplier’s man.
v) the invoices are posted on the receiving sheet / daily receiving report ( DRR) /
goods receiving report (GRR). Then the invoice and the receiving sheet are sent
to the F&B Controller’s office for checking.
 vi) the goods are sent to appropriate sections – stores or departments.

 when receiving directs / perishables a chef of the concerned must be

present at the receiving area.

e) Documents from the suppliers –

i) Invoice – a document containing detailed information about the food

deliveries, it is always in duplicate, the duplicate copy is signed and returned
by the receiving clerk to the supplier’s man and the original is sent to
accounts for billing.
ii) Delivery Note – same as invoice

Credit memo/ Credit memorandum / Credit Note

When there is a shortage or goods not as per SPS, the receiving clerk writes a credit
memo/ credit memorandum / credit Note mentioning details and requesting the
supplier to remove the goods mentioned in this from the bill.

f) Meat Tag –

It is required because –
i) to have control over expensive food, like prawns, mutton, etc.
ii) assists in controlling the stock levels of the items,
iii) helps in yield testing,
iv) it helps in efficient rotation of stock.

g) Blind Receiving –

When there is no document (invoice / delivery note) from the supplier, instead it is
directly send to the accounts, the receiving clerk has to do his job more carefully
preparing a Blind Receiving Report, and weighing and counting all good as per the
purchase order and checking their qualities as per SPS.
 Storing & Issuing Control

a. Aims of Store Control

i) to ensure that an adequate supply of food materials for the immediate

need of the operation are available at all times,
ii) to prevent losses through spoilage or pilferage,
iii) to have minimum working capital.

b. Storing Procedure / Control

a. Layout and Facilities in a Storeroom

The layout of the store should be such that it minimizes the distance walked by the
storekeeper and the inventory list be printed in the same order in which items are
placed in the store. This will facilitate the quick and efficient stock taking. Items,
which are issued daily, must be located near door and remainder being arranged in a
logical sequence. Commodities should be grouped together and each of them arranged
into sections.
Facilities in storeroom –

i) appropriate storing space

ii) appropriate temperature & adequate lighting
iii) proper storing equipments, like shelves, containers, refrigerators, cold room, etc.
must be available,
iv) proper issuing equipments, like weighing scales, measuring containers, trolleys, etc.
must be available,
v) proper security,
vi) proper pest control,
vii) proper sanitation.

b. Arrangements of food –

i) items, which are issued daily, must be located near door and remainder being
arranged in a logical sequence.
ii) groceries and canned goods are stored on shelves by groups like –
1. tea, coffee, etc
2. spices
3. condiments
4. cereals
5. nuts
6. syrups, etc.

iii) canned goods must be checked for spoilage – one must watch out for swells,
leaks, tampering or improper count – matter must be reported to the F&B Controller.
iv) pricing of groceries –
all groceries are priced and marked before putting on shelves. Receiving dates must be
mentioned ( for FIFO ) and some put a special lable or a sticker to stop pilferage.

v) expensive groceries like caviar, saffron, truffles, etc. are placed under lock and key.
The keys are with the storekeeper and only a few can access it.

SECURITY
i) adequate security arrangements is of utmost importance.
ii) unauthorised personnel are not allowed.
iii) keys of the storeroom are issued to individuals designated by the chief accountant
after entering into a Key Log Book.
iv) proper strong locks to be used to lock the storeroom once it is closed.
STOCK CONTROL
i) goods are stored in a manner so that FIFO can be followed.
ii) each item stored is entered in the storeroom register, and subsequently the bin
card is updated.
iii) each item issued is entered in the storeroom register and issued to authorized person
only, on receiving a requisition, and subsequently the bin card is updated.
 ISSUING CONTROL
Aims
i) to ensure the proper authorization for the release of merchandise,
ii) to account properly for daily food issues.

ISSUING PROCEDURE / CONTROL

• all items are issued against requisitions prepared and signed by authorised person,
• the requisitions are prenumbered and are in triplicate, the copies are distributed
as follows – original – store, duplicate – department, triplicate – book copy,
• the storekeeper is intimated about persons who can sign and authenticate requisitions.
• The storeroom register is updated after issuing of goods.

STOCK TAKING

There are two types of stock taking

i) Perpetual Stock Taking – it is the stock registered in the storeroom

register or the book stock.

ii) Physical Stock Taking – it is stock taking by physically counting all

goods in the storeroom and noting them on a physical inventory
sheet.

Physical Stock Taking / Physical Inventory Procedure –

It is generally done on the last day of the trading period ( a trading period is of 28 days – thus
there are 13 trading periods in a year) or it can be done once a month.
It is generally done by two persons – one from the accounts department and the other from
F&B Controls or Purchase, one of them count the goods and other note it on the physical
inventory sheet. This is done to ascertain the actual value of goods and compare with its
book value. A report is generated and sent to GM, F&B Manager, Accounts, Purchase,
Executive Chef and Storekeeper.
RECORDS MAINTAINED

• Bin Card – kept with the goods on their shelves and updated on receiving & issuing
goods.
• Stock Record Card – same as bin card
• Food Storeroom Requisition – it is for requisition of goods from store.
• Kitchen Transfer – it is for intra or interdepartmental transfer of goods, like from
main kitchen to coffee shop kitchen, from coffee shop kitchen to bar, etc.
• Physical Inventory Sheet – it is for noting quantity of goods during physical stock
taking.