Total factor productivity modeling in hospital foodservice operations

Total factor productivity (TFP) modeling, a ratio of outputs to inputs, was elaborated with terminology, resources, and outputs familiar to foodservice managers and evaluated for four hospital foodservice operations. Outputs and inputs (counts or currency) were converted to constant dollars for a defined base period by using base period rates and price indexes. After development, validation and pilot testing of a computer-assisted prototype, monthly TFP ratios were calculated from historical data. When TFP ratios were analyzed by regression against each of nine variables (six work force policies, two "demand for services" variables, and capital investment), few significant relationships were found. Although multiple regression analysis of those variables did not produce useful predictive equations, a similar analysis of partial and total factor productivity ratios yielded predictive equations that included up to four partial factor productivity ratios. Even though the labor statistic of meals per labor hour correlated positively with TFP ratios, the comparison provided incomplete and sometimes contradictory information. Total factor productivity measurement can provide foodservice managers with a more comprehensive analytical technique than is possible with only partial measures of productivity.