Operations Audit Overview
📌 The operations audit was conducted on Robert and Bing Canteen, a family business registered on January 11, 2024, operating across Bonafasio, Burgos, and Magsai branches at Baguio Central University with 20 staff members.
🧭 The audit aimed to help the owners understand operations better, identify areas for improvement, and support their goal of widening service reach.
⚠️ Identified preliminary problems included efficacy of the manual inventory system, management of spoilage, and challenges in supervising multiple branches simultaneously.

Current State Process Analysis
🛒 The Purchasing Process is effective but heavily dependent on the owners who personally oversee supplier contact and market ingredient buying.
🍳 In the Producing Process, meal preparation relies heavily on the owner's supervision, sometimes causing inefficiency due to a lack of formalized role distribution.
💵 The Selling Process uses manual cash handling via "funny packs," exposing the business to risks like misappropriation and incomplete documentation.
📉 Inventory Management currently relies on informal monitoring, visual checks, and noticing low stock levels, which led the team to focus the audit on this area.

Risk and Control Assessment (Focus on Inventory)
🚩 A serious risk identified is the manual tracking of inventory, leading to errors, overstocking, or understocking, compounded by uncontrolled employee access.
☠️ Failure to track expiration dates and reconcile physical counts with sales risks selling spoiled or expired food, posing health hazards and reputation damage.
🔒 The business is vulnerable to theft and loss due to manual cash inflows without proper documentation and unsecured storage facilities lacking CCTV.

Recommendations and Implementation Plan
📝 It is recommended to implement actual physical counts of stock and record exact figures using a proper form to maintain accurate inventory records.
🧑‍💼 To address undocumented employee consumption, establish a clear limit on staff food benefits and record a daily physical count of items used.
🔒 Access to storage areas must be restricted to authorized personnel only to safeguard supplies and minimize unnecessary losses.
📹 To enhance overall safety, investment in CCTV cameras and assigning a supervisor for daily observation is suggested to prevent unnoticed theft.
📈 Success metrics for improvement include a decrease in the frequency of restocking (due to efficient use) and an increase in sales.

Key Points & Insights
➡️ The canteen's stability is currently due to the owner's close supervision, but this creates a dependency leading to limited task sharing and inefficiencies.
➡️ Implementing immediate sales recording (as sales happen) is crucial to accurately match inventory and cash on hand, enabling early detection of losses.
➡️ The team offered practical support by creating an inventory list template and communicating clear instructions on its usage to aid implementation.

📸 Video summarized with SummaryTube.com on Dec 02, 2025, 08:03 UTC