Catering Good practice example Issue Production control Trust Northampton General Hospital NHS Trust Date September 2001 Description The Trust uses a ‘One Stop Shop Supplier’ to procure provisions and manage stock. Standard recipes are agreed with the Supplier and menu items are ordered rather than individual ingredients. Production sheets are generated from the Supplier’s system for each menu item, stating the ingredient quantities, for the number ordered, and the recipe instructions. Contact details Brian Willett Hotel Service Manager Northampton General Hospital NHS Trust Cliftonville NORTHAMPTON NN1 5BD Tel: 01604 545586 ACUTE HOSPITAL PORTFOLIO Good practice example 6. Production control – Northampton General Hospital NHS Trust What area needs improving? The achievement of a high quality service can be traced right back to the quality of ingredients purchased. It is a constant task to ensure that the ingredients purchased are of a high quality at the lowest possible cost. Catering departments do not necessarily have the procurement expertise or the time to negotiate and performance manage suppliers. Effective procurement is an important aspect of production control. Accurate historical information on demand levels is essential for procurement. Such information should then be used as a basis for issuing goods from stores for use in production. There is also a fine balance between keeping stock levels to a minimum and having sufficient stock to be flexible enough to respond to unexpected demand. Northampton General Hospital NHS Trust recognised that effective procurement was an important aspect of controlling costs. They took the unusual step of tendering for a catering procurement and stock management service. Northampton General Hospital NHS Trust operates a cook-chill/freeze system where plated meals are served by ward waitresses (managed by the Catering Department). How can this be achieved? A ‘One Stop Shop Supplier’ was awarded the contract for procurement and stock management (ward provisions still come via NHS Logistics). A detailed specification was agreed that set quality standards and terms for rejecting goods. All standard recipes were agreed with the Supplier and a contract price agreed for the patient service based on the predicted uptake of the dishes. The service that they provide includes procurement, picking of goods and stock management. There are separate stock areas for the different activities; staff restaurant, café, patients etc.. All stock is labelled with purchase and used by date. No more than two days stock is held at a time. Orders are placed with Supplier in terms of the number of menu items required and not the individual ingredients of those items. These are placed via the Supplier’s web site. Suppliers deliver to exact requirements. The Supplier’s system also produces production sheets for each menu item, stating the ingredient quantities, based on the number ordered, and the recipe instructions. These have to be followed in the Central Production Unit, as stock levels are kept to a minimum and there is therefore little scope for using more ingredients than required. AUDIT COMMISSION 2 ACUTE HOSPITAL PORTFOLIO The Trust also places 75% of provisions orders for non-patient service with the One Stop Shop Supplier. They ensure that they are achieving best priced by comparing prices for a shopping bag of items to other suppliers on a quarterly basis. How much might it cost? Contracting out their procurement and stock management function has enabled the Trust to reduce the number of clerical staff from 2.5 to 0.9 whole time equivalents. The contract with Supplier has also meant that they have achieved a comparatively low patient provision costs even though they provide a wide variety of choice including hot meals at both lunch and supper serving. What are the most factors that must be in place for success? Standard costed recipes – These are at the heart of procurement and production and ensure consistency in terms of both the cost and quality of service provided. Use of experts – The employment of procurement professionals allows catering staff to focus on their area of expertise, production and service. Regular monitoring and benchmarking ensures that the Trust always achieves the best price for goods. How well did the trust perform on the diagnostic indicators? The results of the diagnostic audit show Northampton General Hospital NHS Trust performance as: Total net cost per patient day at the lower quartile Patient provision costs per patient day at the lower quartile Wastage levels at the lower quartile Patient satisfaction at the upper quartile Monitoring checklist at the upper quartile Nutrition checklist at the upper quartile AUDIT COMMISSION 3