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Operational Analysis

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Operational Analysis
Running head: OPERATIONAL ANALYSIS

Operational Analysis

Ashford University
Public Financial Management
PPA602
Instructor: Ronald Fitzgerald
June 03, 2013

Operational Analysis

“Meals on Wheels” is a great organization that was originally developed to help out servicemen during WWII. It then continued its roots by serving Philadelphia in the 1950s as a home-delivery program serving those that are hungry. The focus since the 70s has been to serve senior citizens who still live at home but are not capable making their food or even for others to bring them food. The company’s vision statement is as following: “Is to end senior hunger by 2020”. Although this vision statement is very short, but I think it gets to the point and others get the idea. In essence it explains why the company exists, and what it exists for. Generally it gives a detailed time-line and describes what it will do by a certain time-frame: which is end hunger! I think this vision is very effective one and it is empowering as well as motivating. This paper will discuss Mead Meals on Wheels Center (MMWC) and it efforts to provide two meals per day to the homebound elderly in the town of Millbridge. The Town of Millbridge pays MMWC $32 per week for each person it services for the week. Each person receives 14 meals for the week. There is no shortage of demand for MMWC’s services among the elderly citizens of Millbridge and MMWC can find qualified recipients for as many meals as it can deliver. To service the contract,MMWC has a central kitchen which can produce a maximum of 9,600 meals per day. It costs MMWC an average of $36,000 per week to operate the kitchen and MMWC’s other central facilities regardless of the number of meals that MMWC serves. This covers all of MMWC’s fixed costs (i.e., rent, equipment costs, and its personnel including administrative staff) as well as its fixed contract costs (e.g., utilities, snow removal). The difficulty that MMWC faces is



References: | | | | | | | | | | | | | | | | Case Study Mead Meals on Wheels; Case Study - MMWC.doc Finkler, S.A.(2010).Financial Management for public health and not for profit organization (3rd Ed.)Upper Saddle River, NJ: Pearson Prentice Hall. (2012,12).Vision Statement for Meals on Wheels, Module 6. StudyMode.com. Retrieved 12, 2012, from http://www.studymode.com/essays/Vision-Statement-For-Meals-On-Wheels-1285496.html | | | | | | |

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