Business Plan - Web viewOverlook Medical Center’s food service department employs the equivalent of 39 full-time employees, and serves meals in both the patients’ rooms and the

Overlook Medical Center

BUSINESS PLAN

Phone: (843)556-2598 1610 Midtown Ave

Fax: (843)556-1118 Mount Pleasant, SC 29464

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Table of Contents

Executive Summary 3

Company Description and Overview 4

Job Description 5

Productivity Overview 8

Labor Budget 12

Marketing Plan 20

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Overlook Medical Center: Executive Summary

Overlook Medical Center’s food service department employs the equivalent of 39 full-time employees, and serves meals in both the patients’ rooms and the cafeteria located within the hospital. These meals are made in two distinct ways, based on what style of dining the customer is receiving. For the patient meals, trays are prepared in a tray-line, ready-made assembly. For the cafeteria, depending on if the customer is requesting for room delivery or not, the meals are prepared via assembly buffet style, with the customer having full input.

In order to supply these eating styles and dining areas with the proper amount of labor, it was decided to have a total of 11 cooks, 10 tray delivery personnel, and 18 kitchen staff, or equivalent, be employed and working per month. The monthly staff is split into part-time (40 employees total) and full-time (19 employees total), and then scheduled for either a full work cycle of 10 hours a day, or for 1 of 2 shifts provided in a day. After the calculation of the monthly budget based on these numbers came out to $102,389 , it was decided that it must be reduced by 3% to be more effective in keeping hospital costs at their lowest. The new budget was calculated to be $98,857 , which was obtained by decreasing all part-time employee hours per week by 1.5 hours.

Upon budget proposal approval, it was requested that the food service department manufacture a marketing strategy in order to increase hospital revenue. After careful consideration, it was decided, based on local demographics and population data, that the target market should be those who are disabled or handicapped and the elderly. The food service department then submitted a plan for the implementation of a home meal delivery service, which would be offered to all discharged patients and all outpatients within a certain, yet to be determined, radius. This plan also proposed the utilization of discharge surveys and questionnaires to determine the projected popularity of the service, as well as patient satisfaction with the care they received from the hospital.

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Overlook Medical Center: A Foodservice Overview

Mission:

“Leaving no care unprovided, no dish unappreciated, and no stomach, or heart, empty”

Located in a rural area just outside of Charleston, South Carolina, our relatively small facility has the capabilities of just about any hospital you may find in any surrounding area. With 375 beds, our focus maintains the idea that the kitchen and cafeteria must run as efficiently and patient friendly as possible.

Assembly:

We carry two styles of dining, with varying menus throughout the day that offer many accommodations when it comes to diet restrictions. In the kitchen, we offer a tray line, readymade style of meal set up, which allows for multiple check points along the path that your tray takes to get from the kitchen to you. This ensures you are given the absolute best care when it comes to your food and dietary needs. Trays are run on a 5 hour cycle, starting at 8:00 am, and ending at 6:00 pm, with snack offered between meals. The option for a later or earlier meal is available when requested. This allows the proper clean up and preparation of each meal.

In the cafeteria, which will also have room service capabilities for those who do not have the wish to eat on a timed schedule, there will be separate custom assembly lines which act as a buffet for the visitors and patients who walk in.

This establishment also partners with a large distributor that delivers the food items we require roughly every 3 days. This distributor partners with local farmer to ensure the freshest food possible upon arrival.

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Overlook Medical Center: Job Description

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Overlook Medical Center: Job Description

Job Position Available

Job Title: Dietary AideHiring Status: Full/Part-time - Entry level

Job Overview: Will be responsible for the handling of patient meals from start to finish under the supervision of the managing dietitian. Must maintain a clean eating and work environment, as well as provide adequate upkeep on personal hygiene. Must be at least 18 years of age or older, with a minimum of a high school diploma or equivalent. No experience required, but is desired.

Essential Duties:

1. Read and carry out instructions on the given meal cards for each patient tray2. Operating kitchen equipment such as dishwasher, oven, commercial mixers, large scale

appliances3. Transport of trays from kitchen to patient floors4. Cleaning the kitchen, this includes all surfaces (tables, floors, entry ways, etc.) as well as

patient and visitor dining areas. This should be done after every meal as well as when needed.

5. Preparation and delivery of between meal nourishments to patient floors and cafeteria, which will be the priority at meal times and require several hours of preparation and execution.

6. Serving of meals in designated stations in cafeteria7. Work in a safe and timely manner8. Follow all HIPAA regulations in patient confidentiality and safety9. The ability to understand given oral instructions with little accommodation10. Have the ability to understand several varying job positions on a need based day to day

cycle.

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Job Requirements:

- Must be able to lift up to 40 pounds from floor to table height- Be able to stand for up to 5 hours at a time- High school diploma or equivalent- Must be 18 years of age or older- Must have reliable transportation - Adequate interpersonal skills, which will be evaluated upon initial interview- Understand and carry out food safety procedures- Must be able to communicate with patients in a professional manner- Must be able to read, write, and understand the English language

Performance Standards:

- Maintain knowledge obtained in training and carry out the duties described effectively and timely after the 90 day observatory period.

- Understand the needs of specific dietary restrictions and utilize knowledge to problem solve if a problem were to occur.

- Keep work area clear of debris as well as sanitize it regularly- Maintain a confidential and cheerful relationship with patients, employees, and visitors- Will be evaluated regularly to ensure the best possible care in regards to mistakes,

outbursts, and attitude.

______________________________________________________________________________

Job Factors:

There is quite a bit of room for growth in this position being offered. While maintaining the health of each patient, the upward growth of each individual is dependant completely on the person. Positions offered within the hospital are offered first to current employees, with unfilled positions then taken to the public. Fulltime employees receive benefits such as, but not limited to, 401K with company contribution, health insurance not limited to the hospital itself, reduced rate child care, dental coverage if opted for, regular company outings, as well as employee and company training. Pay raises may be discussed after evaluation period.

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Overlook Medical Center: Productivity Overview

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Staffing needs:

Hours of Operation: 8am-6pm

Productivity: Strictly Cafeteria

-Roughly 200 customers served per day in cafeteria

-Total Sales Per Day: $840

$840/200 customers = $4.20 average meal ticket

-$27,000 in sales per month, with an average ticket of $4.20 = 6,429 meals served per month

1,167 labor hours used per month

6,429 meals/1,167 labor hours = 5.5 meals per labor hour

Number of FTEs needed: 1,167 labor hours/173.33 FTE hours = 6.7 FTE’s per day

6.7 FTE’s needed per day so, adjust for nonproductive time in a day:

6.7 x (1+(1.55/7)) = 6.7 x 1.221 = 7.9 employees in a day (round to 8)

1.55 to 1 ratio week/month = (6.7 x 1.55) = 10.385 employees per week/month (round to 10)______________________________________________________________________________

Productivity: Strictly Patient Beds at 100% occupation:

375 beds x 2.7 meal adjustment = 1,013 meals per day

Taken from above: 5.5 meals per labor hour

1,013 meals / 5.5 meals per labor hour = 184.1 labor hours in a day

18.41 FTE’s needed per day

Employees needed per day = 18.41 x (1+(1.55/7)) = 18.41 x 1.221 = 22.49 employees in a day (round to 23)Employees needed for the week/month = 18.41 x 1.55 = 28.54 (round to 29)

______________________________________________________________________________Cafeteria: 8 employees needed per day, 10 per week/month

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Patient Beds: 23 employees needed per day, 29 per week/month

Total: 31 employees per day, 39 per week/month______________________________________________________________________________

Breakdown of Employees (FTE)

Cooks: 8 per day, 11 per month

Servers/Tray delivery: 8 per day, 10 per month

Kitchen Staff: 15 per day, 18 per month

Staffing Schedule: - Kitchen staff/Servers are broken down into numbers 1-12. These numbers hold different responsibilities, as well as determine who is operating dish washing procedure each day

- For part-time employees: Part-time first shift: starting between 6:30am and 8 am, ending between 10:30am and 2pmPart-time second shift: starting between 11am and 2pm, ending between 3pm and 7pm

----- Cooks: 8 part-time daily, 12 monthly

----- Servers/Tray Delivery: 8 part-time daily, 10 monthly

----- Kitchen Staff: 14 part-time daily, 18 monthly

*no part-time employees will work more than 30 hours a week, with an average amount of weekly hours being 25 for all part-time employees. This number is subject to change based on demand.*

-These numbers also transfer over to the cafeteria, with numbers 1 and 2 serving customers, and 12 being the tray deliverers and cleanup

Example: A person who is listed as the number 1 will be responsible for placement of utensilswhile a person who is listed at 7 will be responsible for drinks on the tray as it travels down the line. This maximizes efficiency, while also providing work simplification. Multiple people for the same number may be needed.

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John© 7:30am-5:30pm prepBon © 7:30am-5:30pm prepJovi © 8:00am-6:00pmRicky © 8:00am-6:00pmBobby © 6:00am-4:00pm hot prepSue © 6:00am-4:00pm cold prepNatalie © 9:00am-7:00pm cleanupBrick © OffSamuel © 9:00am-7:00pm cleanupDana © OffMatt (1) 7:30am-5:30am prepSara (1) 8:00am-6:00pmDevon (2) 6:00am-10:00am prepHaley (2) 9:30am-6:00pmErin (3) 8:00am-6pm (no prep needed)Daviid (4) 8:00am-6:00pm (no prep needed)Michele(5) 7:30am-5:30pmSarah W. (6) 8:00am-6:00pmKyanda (7) 7:30am-5:30pmBenson (8) 8:00am-6:00pmJason (12)(serving) 8:30am-6:30pmLacy (9) 8:00am-6:00pmKatie (10) 8:00am – 6:00pmHank (11) 8:00am-6:00pmKristin (12)(serving) 8:30am-6:30pmSam P. (12)(serving) 8:00am-6:00pmAlexis (12)(cleanup) 9:00am-7:00pmNick (12)(cleanup) 9:30am-7:30pm

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Overlook Medical Center:Budget

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Budget for Overlook Medical CenterMount Pleasant, South Carolina

An MIT Study on minimum wage states that the average full time food service service/preparation employee living in Charleston County, South Carolina earns roughly $18,550 a year. However, the total living expenses for one adult based on the cost of living for the area, as well as required expenses, is $20,754 after taxes. Before taxes, the minimum required yearly income for one adult is $24,417.

For the information from this study, please visit the following website:http://livingwage.mit.edu/counties/45019

____________________________________________________________________________The following data is based on findings from Salary.com:

Food Prep and Service: $13 an hour average pay, $2,217 monthly average (FTE)Cook: $15.50 an hour average pay, $2,636 monthly average (FTE)Minimum wage in Charleston County, South Carolina: $7.25 an hourFood Service Manager: $30 an hour (omit from budget calculations)Server and Dishwasher: $12 average hourly pay, $2,061 monthly (FTE)

Calculations for above information on minimum for cost of living in hourly rate: $24,417 / 12 months = $2,034.75 a month for one full time employee to maintain cost of living in Charleston County, South Carolina if no benefits are offered. Adjusted to hourly pay: $11.74For average full-time employee earnings in area: $18,550 / 12 months = $1,545.83 a month on average. Adjusted to hourly pay: $8.92

Kitchen Employee Breakdown (FTE)Cooks: 8 per day, 11 per monthServers/Tray delivery: 8 per day, 10 per monthKitchen Staff: 15 per day, 18 per month

Adjust some full-time to part-time:Part-time first shift: starting between 6:30am and 8 am, ending between 10:30am and 2pmPart-time second shift: starting between 11am and 2pm, ending between 3pm and 7pm

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> no part-time employees will work more than 30 hours a week, with an average amount of weekly hours being 25 for all part-time employees. This number is subject to change based on demand.Part-time Cooks : 4 in first shift, 4 in second shift (per day) = 8 PTE total, 4 FTE total (per day)

↘Total for week/month: 12 part-time = 6 full time --> 5 full-time left

Budget calculations for cooks:

Part-time: 12 employees x 25 hours worked a week = 300 weekly labor hours> 300 weekly hours x 4.36 (number of weeks in an average month)= 1,308 monthly hours>1,308 hours x $15.50 average per hour = $20,274 in part-time pay per month

Full-time: 5 employees x $2,636 average a month (see above salary.com information) = $13,180 in full-time pay per month

Total Cook Expenses Per Month: $33,545 ____________________________________________________________________________

Part-Time Servers/Tray Delivery Personnel: 4 in first shift, 4 in second shift. = 8 per day

>>4 full time equivalent per day, 4 more FTE needed per day

>> Per Week/Month: 10 part-time (= 5 FTE), 5 FTE remaining for week/month

Budget Calculations for Servers/Tray Delivery:

Part-time: 10 employees x 25 hours worked a week = 250 weekly hours> 250 weekly hours x 4.36 weeks = 1,090 monthly hours> 1,090 hours x $12 average an hour = $13,080 monthly part-time expenses

Full-time: 5 employees x $2,061 average a month = $10,305 monthly full-time expenses

Total Server Expenses per Month: $23,385____________________________________________________________________________

Part-time Kitchen Staff: 6 in first shift, 8 in second shift = 14 PTE (per day), 7 FTE total, leaves 8 FTE for day>Per Week/Month: 18 part-time = 9 FTE, leaves 9 FTE

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Budget Calculations for Kitchen Staff:

Part-time: 18 employees x 25 hours a week = 450 hours a week> 450 weekly hours x 4.36 weeks = 1,962 hours a month> 1,962 monthly hours x $13 average an hour = $25,506 monthly part-time expenses

Full-time: 9 employees x $2,217 average a month = $19,953 monthly full-time expenses

Total Monthly Expenses for Kitchen Staff: $45,459

______________________________________________________________________

Monthly Labor Budget: $102,389 ____________________________________________________________

Adjusted for 3% difference: $102,389 x 0.03 = $3,071.67 must be subtracted from original labor costs.New total must be: $99,317.33 (round to $99,317)

Monthly Part-time Costs per Employee:

Part-time Cook: 1 employee x 109 average hours a month (25 hours a week x 4.36 weeks) x $15.50 average an hour = $1,689.50 a month for one part-time cook

Part-time Server/Tray Deliverer: 1 employee x 109 average hours a month x $12 average an hour = $1,308 a month for one part-time server

Part-time Kitchen Staff: 1 employees x 109 average hours a month x $13 average an hour = $1,417 a month for one part-time kitchen employee______________________________________________________________________

Possible Cuts to Budget (calculations):

**Should look into just decreasing hours by a very small amount per week, rather than firing someone, making a full-time employee into a part-time employee, or decreasing pay rate. This helps avoid employee discontentedness**

Monthly part-time costs per job:

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Cooks: $20,274$3,071.67 to be decreased / $20,274 cook budget = 14.884% of part-time Cook budgetMonthly hours cut from Cooks to reach correction: 194.68

Servers: $13,080$3,017.67 / $13,080 = 23.07% of part-time Server labor budgetMonthly hours cut from Servers to reach correction: 251.47

Kitchen Staff: $25,506$3,017.67 / $25,506 = 11.83% of part-time Kitchen Staff labor budgetMonthly hours cut from Kitchen Staff to reach correction: 232.13

Possible Cuts per Job:

Cooks: 194.68 / 109 hours work per month= 1.79 part-time employees or equivalent Hours to cut from every PTE per month: (109 x 0.14884) = 16.22 hours per month Hours to cut form every employee per week: (16.22/4.36) = 3.721 hours per week cut from each cook3.721 hours per week x 12 PTE’s x 4.36 weeks x $15.50 per hour = $3,017.58 successfully decreased from budget>> can be adjusted to 3.8 - 4.0 hours per employee to fully reach the required decrease

Servers: 251.47 hours / 109 hours a month = 2.31 part-time employees or equivalent Hours cut from every PTE per month: (109 x 0.2307) = 25.15 hours per month Hours to cut from each PTE per week: (25.15/4.36) = 5.77 hours per week cut from each server5.77 hours per week x 10 PTE’s x 4.36 weeks x $12 per hour = $3018.86 successfully decreased from budget

Kitchen Staff: 232.13 hours / 109 hours worked = 2.13 part-time employees or equivalent Hours cut from every PTE per month: (109 x 0.1183) = 12.89 hours per month Hours cut from every PTE per week: (12.89/4.36) = 2.96 hours per week cut from each kitchen employee 2.96 hours per week x 18 PTE’s x 4.36 weeks x $13 an hour = $3,017.36 successfully decreased from budget.>> can be adjusted to 3.0-3.2 hours per employee to fully reach the required decrease.

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______________________________________________________________________

Combination Decrease (2 or more jobs facing decrease)Calculated savings per job, per half hour labor weekly decrease:

Cooks: 1.) Decrease weekly hours by 0.5 per employee = (0.50) hours x 12 PTE’s x 4.36

weeks x $15.50 an hour = monthly savings of $405.48

2.) Decrease by 1.0 hours = (1.0) hours x 12 PTE’s x 4.36 weeks x $15.50 an hour = monthly savings of $810.96

3.) Decrease by 1.5 hours = (1.5) hours x 12 PTE’s x 4.36 weeks x $15.50 an hour = monthly savings of $1,216.44





Servers: 1.) Decrease by 0.5 hours = (0.5) hours x 10 PTE’s x 4.36 weeks x $12.00 an hour

= monthly savings of $261.60



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10.) Decrease by 5.0 hours = 5 hours x 10 PTE’s x 4.36 weeks x $12.00 an hour = monthly savings of $2,616.00

11.) Decrease by 5.5 hours=5.5 hours x 10 PTE’s x 4.36 weeks x $12.00 an hour = monthly savings of $2,877.60

12.) Decrease by 6.0 hours=6.0 hours x 10 PTE’s x 4.36 weeks x $12.00 an hour = monthly savings of $3,139.20

Kitchen Staff:1.) Decrease by 0.5 hours = (0.5) hours x 18 PTE’s x 4.36 weeks x $13.00 an hour

= monthly savings of $510.12




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Recommended course of action:

Decrease all part-time hours for every employee by 1.5 hours per week, so as to have an equal and fair decrease in hours across the board as well as still maintaining current staff while decreasing individual earnings by just a fraction. Full-time employees will remain unchanged.This leads to a total savings of ($1530.36 + $784.80 + $1,216.44) = $3,531.60 For a percentage of decrease: 3.45 % of original budget

Revised Budget Total: $98,857

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Overlook Medical Center: Marketing Plan

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Overlook Medical Center Marketing ____________________________________________________

Mount Pleasant, South Carolina population and geographical data taken from:

http://www.city-data.com/city/Mount-Pleasant-South-Carolina.html

Demographics:

Mount Pleasant: Urban South Carolina: RuralMedian Age: 42.7 years old South Carolina median age: 39.0 years old

Median Household Income: $82,826 South Carolina: $47,238

Average Cost of Home: $453,289

Adult Diabetes Rate for County: 8.8% South Carolina: 10.6%

Adult Obesity Rate for County: 25.5% South Carolina: 29.4%

City Healthy Diet Rate: 55.7% South Carolina: 48.5%

City Average BMI: 28.1 (Overweight) South Carolina: 29.1 (Overweight)

Overall Health Condition (good): 63.2% South Carolina: 54.9%

Target Market: Geriatrics and Handicapped/Disbaled Persons

Reasoning: With the aging population growth of Mount Pleasant, which is evident with the median age of Mount Pleasant being slightly older than the whole state of South Carolina, it is important to appropriate to the future needs. Due to the average person having relatively good health and conscious diet in comparison to the total population of South Carolina, this may mean the cost of goods will increase as the demand for natural and organic products rises.

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http://www.city-data.com/city/Mount-Pleasant-South-Carolina.html

Current Marketing Situation:

We currently have a menu that consists of relatively bland foods in order to appeal to a general palate that is sensitive to strong tastes, as well as a concrete, inpatient based meal system. Patient meals are served to the room unless otherwise specified, which could mean the patient requests a leave to visit family, eat at a restaurant located near the hospital, or would like to go to the cafeteria located in the hospital itself rather than receive tray delivery. As a result of having no current marketing strategy, the entirety of the profits come from the cafeteria, and the budget for patient meals.

To help remedy the deficit between profits and costs, it is suggested a meal delivery system to outpatients’ homes be enacted. This is a voluntary service that offers consistent nutritional guidance as well as a reliable meal schedule to those who may unable to cook meals for themselves, are unable to come to dietary related appointments, or who may live alone with a difficult living or personal situation. It is expected the target market, elderly and those whom are temporarily or permanently disabled, will be the main receiving party of this service.

Possible threats to market plan:

Currently, based in Mount Pleasant, there is already a home meal delivery service, Meals on Wheels, which may compete with our own delivery system. However, Meals on Wheels, strictly acts on the premise that those whom are unable to pay for food on their own, leaving a large potential for the number of recipients of the hospital’s home meal delivery service.

Another problem that may occur is Meals on Wheels in Mount Pleasant also pairs with surrounding and local hospitals to help provide food for outpatients of those hospitals. While this may helpful for our own profits in the start-up, it also increases the potential competition. This version of the meal delivery system focuses mainly on those who require specific diets due to major surgery recovery, and those who have a general diet but the caretakers of the patient in recovery has difficulty caring for them.

In order to combat this competition, Overlook Medical Center will enact the option of a paid home meal delivery service immediately upon discharge from inpatient as well as for any outpatient who is deemed at risk for difficulties in acquiring regular meals or who faces the possibility of immobility. The meals delivered will be lunch and dinner, with breakfast as an option at extra cost.

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Goals and Objectives:

- Increase profits of the food service department by 20% over the next 5 years by utilizing a patient paid home meal delivery service

- Keep the increase in costs over the next 5 years below 10%

- Create a separate budget for the maintenance and purchase of the vehicles and personnel used for the service

- Enact a consistent promotion tactic for all outpatients and those who are discharged from inpatient

- Increase overall patient satisfaction of the food service department by 12%

Action Plan

In order to have a fairly accurate estimate as to how many vehicles and personnel will be needed for the proper utilization of this service, a survey will be created and sent to all patients of the hospital. This survey will determine the approval rating of such a service, how likely the patients are to use it, and about how many of them will actually use the service. The survey will be conducted for 6 months, after which the implementation process will begin.

Upon the approval of the hospital administration, the food service department will supply a budget for approval to the administration with 1 month. If the budget is approved, the needed vehicles will be purchased based on survey responses to the use and need of the home meal delivery system. The vehicles will then be equipped with the proper mechanics, and within 2 months the product promotion will be enacted hospital wide.

The promotion of this service will entail having a short end-of-care questionnaire that is required to be filled out by all discharged patients and all outpatients that will ask if they would like to receive the home delivered meals upon hospital service termination, if they would like to receive more information on it before making a decision, and will also include a general questionnaire pertaining to their inpatient stay at the hospital. The responses will be utilized as a determination of popularity of the service, and will provide general hospital feedback as well.

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Controls:

To know if our meal delivery service is satisfactory and if it raises the food service profits, a simple menu will be filled out at the end of each week by each patient receiving the service upon delivery of the meal. On the menu, an option for “termination of service” will be provided, as well as a feedback section in order to receive information on how the service may improve. If the patient were to select “termination of service” on the menu provided, a follow-up call or comment card will be required, so as to find out the reason or termination, as well as finding an average amount of time the service is provided to a patient. This average amount of time can help determine if a time limit on the service may be beneficial to both the hospital and the patient.

In order to achieve the goals listed above, a weekly revenue data sheet will be filled out for the entirety of the food service department as well as just a focus on the meal delivery system that is being implemented. Should the new system be unsuccessful in increasing profits for a consistent amount of time, the service will be reduced in size and area covered first, then terminated if it continues to decrease profits.

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Business Plan - Web viewOverlook Medical Center’s food service department employs the equivalent of 39 full-time employees, and serves meals in both the patients’ rooms and the

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