Upload
duonganh
View
219
Download
0
Embed Size (px)
Citation preview
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Benchmarking KPIs forFinancial Success
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Speakers
Keith Rushing
Director, Applied Research
Institute of Child Nutrition
Olga Botero
Executive Director
Department of Food & Nutrition
Miami-Dade County Public Schools
Sandy Curwood
Director, Office of SNPs
Virginia DOE
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Keith Rushing⎻ Institute of Child Nutrition
⎻ No Financial Disclosure
• Olga Botero⎻ Miami-Dade Count Public Schools
⎻ No Financial Disclosure
• Sandy Curwood⎻ Virginia Department of Education
⎻ No Financial Disclosure
Affiliation or Financial Disclosure
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Completed in 2017
• Assistance of 25 SN Professionals
• Straight-forward
• Easy-to-use reference
• Applying KPIs
Essential KPIs for SN Success
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
WHAT ARE KPIs?
• Measures of performance
• Rigorous / Numbers-oriented / Objective
• Provide standards
• Identify where to invest resources
• Track major initiatives
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Chapter 1
12 KPIs
▪ Description
▪ Why Calculate
▪ How Often to Calculate
▪ How to Calculate
▪ Sample Calculations
• Where to Capture Data
• How to Use
• Industry Standards
• Factors that Influence
• References
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Chapter 2
Case Study
• Cover all KPIs
• Shared background
How to Utilize KPIs
• Benchmarking
• Trend Analysis
• Action Plans
• Communicating KPIs
Chapter 3
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
•comparing performance with an established standard
• Internal
• Industry
Benchmarking
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Determine which KPIs to benchmark
• Collect, calculate and analyze KPI data over time
• Compare results to the benchmark
• Take actions
Benchmarking Steps
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
•comparing results over time
Trend Analysis
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Communicating KPI Data
with Key Stakeholdersto
Facilitate Change
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
3.2
3.21
3.22
3.23
3.24
3.25
3.26
3.27
3.28
3.29
3.3
August September October November December January February March April
District Total Revenue
Per MEQ
Compared to
Federal Lunch Reimbursement
Rate
What might this suggest?
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
District Total Revenue
Per MEQ
Compared to
District Total Cost per MEQ
What might this suggest?
3.12
3.14
3.16
3.18
3.2
3.22
3.24
3.26
August September October November December January February March April
Chart Title
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Sandy Curwood, PhD, RDN
Director, Office of SNP
Virginia Dept. of Education
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Break-Even Point (BEP) Analysis:
Case Study
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• School Nutrition Programs (SNPs) are expected to be
self-sustaining
• SNPs evaluate expenditures and revenues impact on their operation
• To accomplish this, need to calculate their
break-even point
BEP Purpose
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Point at which expenditures and revenues are equal
• Amount of revenue (sales or income) needed to cover
fixed and variable costs
⎻ Contribution margin: Percent of revenue that can be
attributed to cover fixed costs
BEP Definition
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Break-Even Point (BEP)
BEP =Fixed Costs
Contribution Margin
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
•Analysis shows your revenue is higher than your BEP⎻ SN program has adequate revenue to cover expenditures
⎻ Opportunity to explore new initiatives
⎻ Analysis shows your revenue is lower than your BEP
⎻ SN program expenditures exceed the revenue and the program is not self-sustaining
⎻ Where should you focus?
Applying Break-Even Point to Your Program
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Lynchburg City Schools has 20 schools, 8,546 students, 68% eligible to receive free and reduced-price meals.
This is their data for the 2016-2017 SY:
•Fixed costs: $2,132,774.45 ⎻ Includes: Personal services, employee benefits, utilities, etc.
•Variable Costs: $2,334,873.14⎻ Includes: Food and Supplies
•Revenue: $4,759,939.18⎻ Includes: School meals purchased (paid meals), state and federal reimbursement,
catering, and ala carte
➢Is the school nutrition program covering its costs?
Case Study
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Let’s Look at an Example in Practice
➢Is the school nutrition program covering its costs?
YES!
Let’s see how we got this answer.
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Step 1: Determine the Fixed Costs
BEP =
Fixed Costs: Sum of all expenditures that do not vary with sales volume or number of customers served
➢In the example, fixed costs, those that generally don’t vary: salary and benefits, utilities, etc.
Fixed costs in the example = $2,132,774.45
Fixed CostsContribution Margin
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
BEP = $2,132,774.45
Contribution Margin
Contribution Margin = 1- (Variable Cost %)
Variable Cost (those that change with sales volume or number of customers served )
÷ Revenue (sum of all revenue)
Step 2: Determine the Contribution Margin
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Step 3: Determine the Variable Cost %
From the example:
Variable Cost % = Variable cost $2,334,873.14 ÷Revenue $4,759,939.18
Variable Cost % = 49.05% = .4905
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Step 4: Calculate BEP
Fixed Costs
Contribution Margin (1- (Variable Cost %)BEP =
$2,132,774.451- 0.49050 = 0.5095
50.95% of the revenue from the SN program is needed to cover the program’s fixed costs.
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Step 5: Determine theBreak-Even Point
BEP = $4,186,014.62
$2,132,774.45 =0.5095
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Revenue = $4,759,939.18
Break-even point= $4,186,014.62
Revenue > BEP Flexibility in budget for new initiatives!
Step 5: Comparison of Revenue and Break-Even Point
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
•Monthly analysis⎻ Set annual goals for your program
⎻ Benchmark- Is your program on track?
•Annual analysis⎻ How sufficient was your program throughout the school-year and
year-to-year?
•Next Steps⎻ What adjustments will you make to your program?
Using Break-Even Point In Your Program
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Olga Botero, RD
Executive Director
Department of Food and Nutrition
Miami-Dade County Public Schools
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
2016/17 2017/18
Enrollment 294,881 289,085
Free/Reduced 228,431 230,731
Employees 3,264 3,530
Annual Budget $198,240,000 $203,250,000
Schools/Sites 356 358
Demographics
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
2016/17 2017/18
79,700 76,750
179,200 171,500
28,750 29,000
Breakfast
Lunch
After school
Average Daily Participation
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Goals
Increase Meal
Participation
Cutting Costs Promote lean
and green
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Employees must understand the importance of serving one
more breakfast, one more lunch, one more after school
meal.
• How does serving that additional meals impacts their life
• And then……..of course it is not only about serving, BUT
• Recording it so that it gets into the CLAIM
“Every Meal Counts”
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Who is Miami-Dade County Public SchoolsDepartment of Food and Nutrition?
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Cost per Meal Equivalent
(MEQ)
Total Costs ÷ MEQ = Costs/MEQ
• Revenue per Meal
Equivalent (MEQ)
Total Revenue ÷ MEQ = Revenue/MEQ
Benchmarking – know your numbers
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
Revenue/MEQ - Cost/MEQ = KPI
Goal – Cost/MEQ should be lower than Revenue/MEQ
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
0.0000
0.5000
1.0000
1.5000
2.0000
2.5000
3.0000
3.5000
4.0000
4.5000
5.0000
November December January February March April
Revenue Per Meal Equivalent
2016-2017 2017-2018
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
0.0000
0.5000
1.0000
1.5000
2.0000
2.5000
3.0000
3.5000
4.0000
4.5000
5.0000
November December January February March April
Expenses Per Meal Equivalent
2016-2017 2017-2018
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
-1.0000
-0.8000
-0.6000
-0.4000
-0.2000
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
November December January February March April
Difference Between Revenue Per Meal Equivalent and Cost Per Meal Equivalent
2016-2017 2017-2018
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
• Know your numbers
• Stay in touch with your employees
• Food and Nutrition team player in the school
• Students – the REASON for school meals
Summarizing
© COPYRIGHT 2018 SCHOOL NUTRITION ASSOCIATION | #ANC18 | LAS VEGAS, NV
It does not matter if you are a large District or a small
one, deal with daily issues as if you were a very small
District and maintain personal attention with cafeteria,
school or other department’s staff. Always remember
that you cannot reach your GOALS unless the entire
team is working toward it.
Reflection