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Capital Purchasing

In: Business and Management

Submitted By gorgeouslonglegs
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Food service is a very important department in hospitals and nursing homes. This particular service is used to cater to the food needs of the patients. To focus the task and operations involved in institutional food service management, it is essential to examine food service as part of the parent institution. It is very important to keep equipment up-to-date so that the department can run smoothly and kitchen can stay up to code with safety expectations. In my observation while working in dietary, I noticed that the cooking process was so long and exhausting because the ovens were too small and old. After noticing that this process seems to be getting worse every year, there needs to be some changes. I decided to make a capital purchase to improve dietary services, in order to help speed up the process of cooking and serving patients a better quality of food. The capital purchase made, is a Doyon Baking Equipment JA0P14 Electric 14 Pan Oven/ 32 Pan Proofer. The amount of this equipment replacement totaled at 20,405.55.
I am replacing existing equipment with new equipment, “often a comparison may be made between upgrading and replacement in order to make a more compelling argument. The usual arguments in these comparisons revolve around improvements in technology in the new equipment that are more advanced than available upgrades to the old equipment (Baker & Baker, 2013, p.191). Replacing the old oven is my idea of bettering the dietary department.
The management goals that expenditure is from day to day, a dietary manager has to make many plans, decisions, and judgments. To plan and respond accordingly, a dietary manager works with the framework of the organization. Institutional foodservice faces a variety of pressures to accommodate reduced funding or subsides, generate greater revenue, conform to the needs of customers, and compete in the marketplace. According to A City Discount Restaurant Equipment & Safety, “The JAOP Series from DOYON is known worldwide for its unique and patented JET AIR SYSTEM (the air moves in one direction for 2.5 minutes, stops for 25 seconds than moves the other way for 2.5 minutes resulting in gentle velocity airflow for exceptional baking results. This system will help you bake faster and more evenly without having to turn your pans at half of the baking time. (Ex: Competitors units will bake only one side or unevenly: muffins blow over, bakes only the outside, etc).Our competitor’s oven allows the air to move in one direction only. DOYON ovens will bake better with 30% to 65% softer velocity and your employees continue preparations without worrying about turning pans” (May 06, 2014). The point for installing this highly advanced new oven is to provide improvement to cooking better meals and speed up productivity. The new oven will provide improvement for meals because often times the food is cooked too fast because cooks are trying to prepare each batch on a specific time limit but have such a limited space. Productivity growth also helps businesses to be more profitable.
According to Sue Grossbauer (2001), before a purchasing decision is made for capital item, there are seven steps should be followed:
The first step is determined a need, typically, the dietary manager and other staff members in the dietary department recognized the need for equipment purchases. There may be recurring problems; existing equipment may break down and may not be worth repair costs, manufacturers may introduce new items of great interest or benefit to the facility; or new services models may be pending. The second step is consider the budget, since the purchase of large equipment items will involve significant expense, those items general must be included and approved in a capital budget separate from the department’s operating budget. The third step is, investigate options, a dietary manager may investigate options with a number or suppliers, or with a manufacturer’s representative a starting point is any known requirements. From this, a dietary management can check available sources compare features and specifications, and refine needs list. The fourth step is, Consult with others in the organization, facility staff play a role in the equipment purchase. In large facilities with a purchasing department, personnel with this responsibility may obtain general information from equipment suppliers about potentially useful items, and help develop final purchase specifications”. Step five- seven are, obtain price quotations, prepare a budget justification and finally make a decision.

In many organizations, a dietary manager has direct purchasing authority for ongoing supplies and small purchasing, but must seek approval to purchase capital equipment. So, the purchasing procedure may be different. A budget justification may be required. In addition, “a dietary manager may need to review plans and specifications with a maintenance or engineering expert to plan installation and to assure compliance with all relevant codes and regulation” (Grossbauer, 2001). Because capital equipment does require significant investment and will become a part of the operation for a long time, purchasing decisions are very important.
The nursing home I worked at, they were preparing food for almost 300 residents and there just was not enough time to cook so much food at an appropriate time. Yes, the task was completed however; cooks were not able to take breaks because of limited oven space. Also, there were assistant cooks whom had to use the oven as well to bake desserts which often times interfered with the cooks oven space. The new oven gives the assistant cooks the opportunity to bake deserts at a separate temperature, while also assisting the needs of the cook. I also think if the cooks and the assistant cook happen to finish early, they can leave all the food inside of the oven to warm on a low temperature to avoid cold temperature. There were often complaints from the residents about the temperature of the food being too cold or warm, but this should help eliminate the problem of having to put the food in the steam table hours early because of the limited space. Installing the new stove will also help get higher ratings from the residents because we were graded low due to bad temperature and slow services. The phones often ring which disturbs the tray line because either the staff or the resident are rushing us for a tray.
The new item could enhance the financial environment because if we continue to gain higher ratings this could make us the top dining services for nursing home. We were already the top nursing home in Michigan but to get separate recognition for our food services could generate more patients to our facility, which increases revenue. Often times, people complain about hospital and nursing home food but if our food improves, then this could be the start of something great. We also cooked for the staff cafeteria and they spend money to purchase lunch daily. I am quite sure if the quality of the food gets better, that will definitely generate more business. This can cut down on employees bring lunches to work every day and perhaps spend more money eating in the cafeteria.
In closing, my capital purchase would be to replace the old oven in the kitchen of the nursing home in goals of making a better quality of food, improving service and speed. This capital purchase has a one year warranty and is beneficial for this department for years to come.…...

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