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Maximizing Production In The Food Industry

1670 words - 7 pages

NTRS 434
Lab Assignment #5
Literature Review

Group Members
Sunny Ahn
Li Cheng
Lei Su

Introduction
One of the most important management activities in today’s economy is to improve performance, especially labor productivity, because almost every manufacturing process involves human work. Not only the physical work, but also the mental manpower is crucial to achieve the objectives of the organization. Increased productivity includes greater motivation, personal participation and better performance of work in the foodservice organization. For institutional food service, improving labor productivity can be more challenging because of budget pressure and strict regulations. Many studies have been done on working environment, management skills, vocational training and so on. Some general management skills, such as vocational training for employees, can be applied to food service facility to improve labor skills. Other factors, such as kitchen condition, type of menu and meal ratio, are also studied in food industry to maximize the production capacity and quality.
Study 1
A recent study published in Springer Science and Business Media in 2012 found out that vocational training can significantly increase the labor productivity. Sala and Silva (2012) conducted a study in 21 countries in Europe among 16 economic sectors, including food products and restaurants. They found out that “one extra hour of training per hour of the growth rate of labor productivity per employee contributes to accelerate the growth rate of labor productivity by 0.55% points” (Sala & Silva, 2012). Moreover, they also found that “the proportion of highly educated workers is increased by 1%, productivity growth will be increased by extra 0.70 %”(Sala & Silva, 2012). In this study, labor productivity was calculated by dividing the real value added by the total employment, while vocational training intensity was calculated by dividing the annual hours in CVT courses by the total employment, where CVT stands for continuing vocational training. According to the definition in the study, CVT courses were “raining measures or activities which the enterprise finances wholly or partly to their employees having a working contract” (Sala & Silva, 2012). The Continuing Vocational Training Survey (CVTS) recorded the degree and intensity of training activities in the firm they studied; and it was the key feature in this study, because CVST solved the arguments of “adding up a variety of economic activities with wide differences in terms of capital- or labor-intensity”(Sala & Silva, 2012). Besides CVTS, intensity in research and development, job training process, degree of capitalization, and general education were also considered as factors in their calculation model, so the conclusion was able to apply to other general professions.
Accordingly, human capital is also important for food service industry and it can promote economic growth dramatically. The result of study from Sala...

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