A Report on the System of Improved Environmental Management in the Mountain Air Restaurant

A REPORT ON THE SYSTEM OF IMPROVED ENVIRONMENTAL MANAGEMENT

IN THE MOUNTAIN AIR RESTAURANT

Prepared for:

Dr Geoff Slaughter and Dr Terese Fiedler

Faculty of Business

University of Southern Queensland

Prepared by:

Jia Niu

Student

University of Southern Queensland

Date of Submission:

25 September 2009

TABLE OF CONTENTS

Item

Summary ⅳ

1 Introduction 1

1.1 Background 1

1.2 Authorisation 1

1.3 Aim of the Report 1

1.4 Scope 1

2 Material flow balance and costing system 2

2.1 The choice of activity based costing 2

2.2 Cost centres & Cost drivers 2

2.3 Material flow table 3

2.4 Cost assignment 4

2.5 The concept of ‘a dirty process carrying a clean process’ 5

3 Supply chain management 6

3.1 Map the risks and issues 6

3.2 Decision making model 7

3.3 Outline of the steps of implementation 10

3.4 The additional benefits of the process 11

4 Investment appraisal and capital budgeting 12

4.1 The hidden costs of waste 12

4.2 Payback period method 12

4.3 Net present value method 12

4.4 The limitations of two methods 14

4.5 The ‘soft’ benefit factors 14

5 Performance appraisal 15

5.1 Environmental key performance indicators 15

5.2 The rations expressed in per meal 16

5.3 Food waste consumption under the use of compost bin 18

5.4 Performance appraisal 20

5.5 The benefits of environmental key performance indicators (EPIs) 20

6 Conclusions 21

List of references 22

Summary

This report was commissioned by Dr Geoff Slaughter and Dr Terese Fiedler to analyse and improve environmental management system in Mountain Air restaurant.

The report focuses on the five areas requested by the owners: material flow balance and costing system, supply chain management, investment appraisal and capital budgeting, performance appraisal.

The report...