THE CONTROL

PROCESS
AHMAD SAYUTI BIN YAHYA
MANAGEMENT & SCIENCE UNIVERSITY
LEARNING OBJECTIVES:
• Define control; examples and significance
• List the four step in controls
• Cite eight control techniques
• Describe the steps and prepare the budget
• Explains the significance of the cost-benefit ratio in control decisions
• Identify what to consider when deciding to make a product in house or outsource.
Control process- Introduction
In F&B business controlling people is more important than controlling things:

Can of food do not disappear by Food is not consumed by Revenues will be missing if the
themselves, nor excess amount rodent unless human make the consumer doesn’t pay what
of liquor are not used unless a food exposed. they consumed
bartender allows it.

In all of these cases are the results of HUMAN ACTION, and if a business is to
proceed profitability according to plan, people action must be

CONTROLLED.
 • People to be controlled in F&B operation may includes:

STAFF GUEST INTRUDERS

Eg. A time clock for employees may Eg. Locate the cashier near Eg. Lock front and backdoors to
needed to make sure that no staff to front door to prevent prevent intruders from entering
come late or leave from job early. customer from leaving a closed operations.
Eg. Measuring devices is needed to without paying the bills. Eg. Set up alarm and cctv to
ensure that each drinks mixed with Eg. record any suspicious
correct amount of ingredients. movement from uninvited
guest.
 DEFINITION OF CONTROL
• Control is a process used by managers in an attempt to DIRECT, REGULATE and
RESTRAIN the actions of people in order to achieve desired goals (PROFITS).

COST CONTROL
SALES CONTROL
• A process where managers regulate Taking care of cost alone wont ensure
costs and guard against excessive costs. profitability. Total number of sales also must be
• Two of the principal causes of excessive safeguard,
cost are: Eg. A steak priced with RM8.95 should not be sold
WASTE for RM7.95
INEFFICIENCY
Eg.Server/ cashier doesn’t record the sales of a food
Eg. Storing in refrigerators Eg. Preparing too much to steal money from cashier machine of that
that are not cold enough food without forecasting amount.
may lead to spoilage. the number of expected
guest will lead the food Thus, it is important to record every sales
waste. accurately by using duplicate copies of checks.
CONTROL TECHNIQUES
• The common control techniques practiced by manager:
• Establishing standards
• Establishing procedures
• Training
• Setting examples
• Observing and correcting employee actions
• Requiring records and reports
• Requiring and disciplining employees
• Preparing and following budgets.

Observing and Preparing &

Establishing Establishing Setting Recording and
Training correcting Following
standards procedures examples reporting
employees budget
 CONTROL TEHCNIQUES (ESTABLISHING STANDARDS)
• Standards: Rules of measures, established for comparison and judgement.
• Divided into: QUALITY STANDARDS AND QUANTITY STANDARDS,

QUANTITY STANDARDS
QUALITY STANDARDS Refer to measures of weight, count or volume
used to make comparison and judgement.
The degree of excellence of raw materials, finished product
and works. In food establishment, Portion Size as
determined in standardized recipe will become
Establishing quality standards is a grading process.
the quantity standard indicator.
Eg. Egg can be found in various grade marking the degree
Staff should follow the standard portion for
of excellence of each egg (Grade A, B, and C)
every food they produced to eliminate excessive
In food establishment, high quality product is produced by cost affecting profits or under cost affecting
high skilled worker and vice versa. business reputation.
 EXAMPLE:

STANDARD
The example of burger to be followed exactly by any cook. The exact portion has been set,
the costing per-portion had been decided, and the quality has been determined.

RESULT 1 – VOID RESULT 2 – VOID RESULT 3 – PASS

Too few ingredient used and portion is a bit Too many ingredient used and portion This burger followed exactly the
small than the standard. is a bit large than the standard. standardized recipe. No issues in portioning
and the food quality.
Impact: Customer may dissatisfied with the Impact: Customer may satisfied with
quality of the product and lead to low business the food quality however, the cost to Impact: Customer may satisfy with the
reputation. produce the burger will increase and food quality and quantity, and the cost can
profit will decrease. be maintained as required.
 CONTROL TECHNIQUES (ESTABLISHING PROCEDURES)

• Procedures: Method employed to prepare a product of perform a job.

• Standard Operating Procedures: Method that that have been established as the
correct method, routines, and techniques for day-to-day operations.

SOP SHOULD BE DEVELOPED FOR THE FOLLOWING ASPECT

ORDERING AND
RECEIVING STORING PRODUCTION ISSUING
PURCHASING
• Ordering and purchasing procedures must be standardized to ensure that the raw
food and beverage materials are purchased in needed quantities and qualities and at
a favourable prices at appropriate time.
• Receiving procedures must be standardized so that all good received conform in
quality, quantity, and cost to those ordered.
• Standard storing procedure needed to guard against both spoilage and theft.
• Issuing procedure must be standardized so that food and beverage item will be
used in the order that they are received, thus preventing spoilage which lead to
excessive cost.
• Production procedure must be standardized due to several reasons:
• in order to satisfy customers, any given item must be produced by the same
method and with the same ingredients every time it is served.
• It should be also served with the same quantities each time, partly so that the
customers will not feel cheated and partly to maintain cost standards.
Why standard procedures?
• Ensure quality
• Prevent food spoilage
• Prevent theft
• Ensure efficiency of production
• Ensure standardization of production
• Cut excessive cost
• Ensure customer satisfaction.
CONTROL TECHNIQUES (TRAINING)
• Training is the process by which managers can teach employees
how to undertake work.
• Standards and procedures are useless if employees weren’t aware
of them.
• Control will be difficult if no training produced.
• Eg. Management has established that a chicken chop is to be
prepared in 300gm per portions, then those employee who are to
produced portion of chicken chop must be aware of the fact that
300gm is to be the correct size.
•
CONTROL TECHNIQUES (SETTING EXAMPLES)
• Informal standards
• The behaviors of employees are influenced by the attitude of their managers.
• Eg. If the manager munching food in front of their staff, the staff will think that the
action is acceptable to do it anytime they want.
 CONTROL TECHNIQUES (CORRECTING AND
OBSERVING EMPLOYEE ACTIONS)
• When the employee make a mistake in his work the
manager should correct the situation or the employee
will assume that his work meets standard operating
procedures.
• Eg.If management observes a bartender mixing drinks
without measuring ingredients and fails to direct the
individual to measure quantities carefully as the drinks
are mixed, then the bartender could reasonably
assume that such work was acceptable and the
manager would be missing an opportunity to control
behaviour.
Requiring records and report
• Managers cant be at all places at all time.
• The larger the operation, the larger depending on indirect observation of work.
• Eg. The statement of income that summarize cost and sales information for a particular
period.
• Important to calculate cost-to-sales ratio of various kind
• Important to compare with various kind of operations
• If the result is satisfactory, the performance of employees has been acceptable
• May be on daily, weekly or monthly basis
• Important to ensure whether goals were met or not and simultaneously corrective actions
occur.
CENSURING AND DISCIPLINING
EMPLOYEES
• Discipline is defined as action taken to admonish, chastise, or reprimand an
employee for work performance or personal behaviour incompatible with
establish standards.
• Used to change or modify the job performance not meeting the standard.
• Disciplinary actions should be taken range from quite discussion to heated
admonition or from demotion or transfer to termination.
PREPARING AND FOLLOWING BUDGETS
• Preparing and following budgets may be the most common technique for
controlling business operations
• A budget is defined as a financial plan and may be described as a realistic
expression of management’s goals and objectives expressed in financial terms.
• Budget may restrict the operation to operate higher than cost allocation provided.
• Sales budget/ Cash-flow budget/ capital equipment budgets/ advertising budgets
 STATIC BUDGET FLEXIBLE BUDGET
Budget prepared assuming only one given level Prepared for business volume above and below
of business activity for the year. One must the expected sales level. When sales level
recognize, however, that budget projections are appear to have changed from expectations,
often incorrect. Sales levels can be higher or management is prepared with a new set of
lower than projections because manager and budgeted cost figures for that sales level.
people who prepare budget are not very good in
forecasting the future.
• As indicated earlier in this chapter, control is defined as a process by which managers
attempt to direct, regulate, and restrain the actions of people in order to achieve
desired goals. The control process consists of 4 steps:
1. Establish standards and SOP for operations
2. Train all individuals to follow establish standards and standards procedures.
3. Monitor performance and compare actual performances with established standards.
4. Take appropriate actions to correct deviations from standards.
COST-BENEFITS RATIO
• An important concept in the control process is cost/benefit ratio:
• The relationship between the cost incurred in instituting and maintaining a single
control or control system and the benefits or savings derived by doing so.
• It should be obvious that no control measure can be instituted without some cost.
• Sometimes that cost is relatively insignificance. Yet sometimes it is so great that careful
consideration must be given to the extent of the expected benefits before one feels
justified in incurring the cost.
• Before instituting any control procedure and incurring the consequent dollar
costs, one should also looked at the nonquantifiable effect:
• Some of these may be beneficial; others may not
• Control system and procedures generally affect many aspect of an operations,
sometimes in negative ways not anticipated by management.
• For example, a system designed to verify that all food transported by servers from
kitchen to dining room is appropriately recorded on guest check may slow down service,
reduce seat turnover, and even result in cold food being served to guest.
THE END