business & marketing - Robert M. Kerr Food & Agricultural Products ...

Image vs. Identity
See page 8
fapc.biz
Adding Value to Oklahoma Spring 2006
Food & Agricultural Products Center Oklahoma State University
Spring 2006 1

fapc.biz
Adding Value to Oklahoma Volume 1 Issue 1
news
From the Director 3
Media Day to be Held July 13 3
FAPC Welcomes New Staff Members 3
Pass on the Maple and Pick-up the Peanut Butter 4
By Randi Jacoby
A Sweet Idea...Converting Sweet Sorghum into Ethanol 5
By Randi Jacoby
business & marketing
The Cost of the Bottom Line 6
By Corey Stone and Vandy Pettis
Image vs. Identity 8
By Corey Stone
f a p c inside the fapc
FAPC Fills New Position with Familiar Face 10
By Lacie Stockstill
from the test kitchen
Food Appearance...Influences Consumers
to Purchase Products 11
By Darren Scott
quality management
Total Quality Management 12
By Jason Young
FAPC Director
J. Roy Escoubas
Managing Editor
Graphic Designer
Mandy Gross
Photographers
Mandy Gross and
Todd Johnson
Editors
Lacie Stockstill and Corey Stone
Writers
Corey Stone, Darren Scott,
Jason Young, Lacie Stockstill,
Randi Jacoby, and Vandy Pettis
Image vs. Identity
fapc.biz
Adding Value to Oklahoma Spring 2006
Food & Agricultural Products Center Oklahoma State University
About the cover...
Corporate identity involves much
more than images and taglines. It
represents the very essence of an
organization, but when businesses
struggle, identity specialists often only
offer cosmetic solutions. Business
Planning and Marketing Specialist
Corey Stone explains why a new paint
job will not solve the problem. See the
image vs. identity article on page 8.
Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities
Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, gender, age, religion, disability, or status as a veteran in any of its policies, practices or
procedures. This includes but is not limited to admissions, employment, financial aid, and educational services.
Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Robert E. Whitson, Director of Oklahoma Cooperative Extension
Service, Oklahoma State University, Stillwater, Oklahoma. This publication is printed and issued by Oklahoma State University as authorized by the Vice President, Dean, and Director of the Division
of Agricultural Sciences and Natural Resources and has been prepared and distributed at a cost of $1289.11 for 600 copies. 0506
2 fapc.biz
See page 8

news
From the Director
Dr. J. Roy Escoubas
A
s I listen to
business
leaders and
read business journals,
I have continued
to accumulate
an understanding
that risk aversion is
playing a greater role in our business
decisions each day. It is not that risk
aversion is not important; certainly,
a decision maker is challenged to
evaluate all the information available
and make the best decision for the
business. In the food industry, risk
surrounds almost everything associated
with manufacturing, shipping,
and selling activities.
I would caution business leaders
in Oklahoma to not develop a riskaverse
nature. The food industry has
its difficulties, but there may be more
Media Day to
be Held July 13
FAPC Welcomes New Staff Members
The FAPC is pleased to announce
the addition of four new staff members
to the center. Jacob Nelson, Kyle
Flynn, Russell Nabors, and Erin Early
accepted new positions at the FAPC.
Nelson, former FAPC Meats
Processing Manager, was chosen to
fill the Value-Added Meat Processing
Specialist position. Nelson has worked
at the FAPC since June 2, 1997. He
received his bachelor’s and master’s
degrees from OSU in animal science
and food science, respectively. While
attending OSU, Nelson was a member
of the meats judging team.
Flynn was hired as the new FAPC
opportunities now than ever in this industry.
I urge you to be proactive and
aggressive in 2006. See yourself as a
business with much growth potential.
Consequently, we at the FAPC
have chosen to express ourselves in a
rather different way by publishing this
new fapc.biz magazine. It will take
the place of the Food Facts newsletter
and will bring to you article-length information
in technology, quality management,
and business. It will offer
briefs in many areas of food technology,
product development, current industry
news, biographical information
on business leaders in Oklahoma that
will help you in your work. I think it
will be very useful to you, and I believe
you will look forward to each of
the four issues per year.
Let’s expect to see our best yet to
come.
Meats Processing Manager. He has
worked in the meat industry since
1984 when his father built Country
Cut Meats in Stillwater, Okla. In
addition to working at Country Cut
Meats, Flynn has also worked at IBP
and EXCEL. He graduated from OSU
with a bachelor’s degree in animal
science.
Nabors has worked for the FAPC
for nearly four years as a graduate
student, but he recently became
a permanent employee when he
accepted the FAPC Meat Pilot Plant
Assistant Coordinator position. Nabors
has worked as a meat processor at
The FAPC is holding its second
annual Media Day, “Making
Headlines: Media Meets FAPC 2006,”
on July 13 from 11 a.m to 2 p.m.
The FAPC is inviting all Oklahoma
media to learn more about its mission,
goals, services, and facilities. The
purpose of the workshop is to develop
media relations with the media so
they might cover more FAPC-related
stories. The activities will include
short presentations, round-robin
demonstrations in the pilot plant
facility, and time for the participants
to conduct interviews for stories
they would like to cover. A list of
potential story ideas will be given to
the media, and FAPC clients, faculty,
staff, and students will be available
for interviews. For more information,
contact Mandy Gross at (405) 744-
0442 or mandy.gross@okstate.edu.
Wal-Mart Super Center in Stillwater,
Okla., and David’s Food Center in
Wynnewood, Okla., and participated
in an internship at Wright Brand Foods
in Vernon, Texas.
Early was hired as the FAPC
Business/Marketing Client
Coordinator. She serves as the
primary contact for all entrepreneurs
who contact the FAPC and want
to start their own food business.
Early received her bachelor’s degree
in animal science from OSU and
will receive her master’s degree in
agricultural economics this May.
Spring 2006 3

Pass on the Maple
and
Pick-up the
Peanut Butter
P
ancakes are being
topped in a new way on
some breakfast tables in
Oklahoma. Aside from the usual
maple, strawberry, or butter pecan
pancake syrup, a new choice is
available – peanut butter.
It may seem surprising that while
peanut butter lovers have placed the
condiment on bread, fruits, vegetables,
and in desserts for years, the idea to
market it for pancake syrup had never
been realized.
In Kathy Privett’s kitchen in Inola,
Okla., however, peanut butter pancake
syrup was a favorite.
“My husband and I mixed peanut
butter and syrup in the kitchen for a
snack for the kids,” Privett said. “One
day he said, ‘Why don’t you bottle
that?’”
After conducting research, Privett
realized the idea was a new one in the
food industry.
Seeking assistance with her
idea, she attended the Basic Training
Workshop at the FAPC in August
2004. The workshop provides food
business entrepreneurs information on
business economics and marketing.
It was at this workshop that
Privett met Chuck Willoughby and
Jim Brooks, FAPC Business Planning
and Marketing Specialists, and David
Moe, FAPC Pilot Plant Manager.
Under their supervision and
through eight months of trial and error,
a final recipe for peanut butter syrup
was formulated, and the company,
Abe’s Creations, was born.
“Mixing and bottling peanut
butter pancake syrup came with a few
challenges – challenges that Dave
Moe was able to meet – but the real
challenge laid ahead in marketing
the product to retail buyers and
prospective customers,” Willoughby
said. “That is where we were able
to help Kathy through our Market
Development Program.”
Privett attended the Oklahoma
Grocer’s Association and Petroleum
Marketers tradeshow in Oklahoma
City with the help of FAPC. Her
“creation” was then picked up by
Reasor’s Grocery located in the Tulsa
area.
As Privett attended more
tradeshows and the state fairs, the
product was introduced to more
consumers and was added to the
shelves of Homeland and other
individual grocery stores.
In the beginning, the FAPC helped
produce the syrup during the market
testing phase, but production of the
news
syrup is now handled by Backwoods
Foods in Tahlequah, Okla.
“We are really pleased with
the market response this product
has received, especially selling out
its debut weekend at the Reasor’s
stores in the Tulsa area,” Brooks
said. “It is gratifying to know that
we have been able to help another
Oklahoma entrepreneur and keep
the food manufacturing jobs here in
Oklahoma.”
The FAPC is still involved in
assisting Privett and her company.
“I continue to rely on my advisory
team – Chuck, Jim and Dave,” Privett
said.
4 fapc.biz

news
A Sweet Idea...
Converting Sweet Sorghum into Ethanol
B
etween dependence
on foreign oil and the
need to become more
environmentally conscious, the
United States is looking more closely
at domestic agriculture products for
energy alternatives.
The production of ethanol as an
additive to petroleum-based fuel is a
popular solution, and sweet sorghum is
a crop that is currently under research
as a source of ethanol at the FAPC.
“Sweet sorghum has the potential
to be used as a renewable energy crop
and has become a viable candidate for
ethanol production,” said Dr. Danielle
Bellmer, FAPC Food Processing
Engineer.
Ethanol is an alcohol-based
alternative fuel produced by
fermenting and distilling simple
sugars, mostly derived from starch
crops, such as corn, according to the
U.S. Department of Energy.
The benefits of using sweet
sorghum are numerous. Advantageous
properties of this crop are that it is a
low input, high carbohydrate producer
and can be cultivated in nearly all
temperate climates.
Lee McClune, President of
Sorganol Production Co., Inc. in
Knoxville, Iowa, initially approached
the FAPC for assistance with studying
a solution to this problem.
Bellmer, the principal investigator
of the project, is investigating the
process of in-field ethanol production
in which sweet sorghum juice will
be collected, fermented, and distilled
in the field. Her goal is to determine
the validity and efficacy of this
hypothetical solution.
McClune built and tested a piece
of equipment to harvest and press
sweet sorghum. It uses a standard
forage chopper/header and feed rollers
to both harvest and “juice” in a single
pass through the field.
With this harvester, a potential
4,000 to 6,000 gallons of juice can be
harvested per acre, McClune said.
Immediately after harvesting, the
fermentation process must begin. The
FAPC is researching the hypothesis
that fermentation can take place in
large storage containers without
temperature control.
Most yeast used for
fermentation operates
within a finite optimum
temperature range, thus
posing a problem for the
large temperature range
of the open environment,
Bellmer said.
“Fortunately, many new
yeast strains have recently
been developed with high
temperature tolerance,”
Bellmer said.
Initial experiments
investigated the use of
temperature-tolerant
yeast strains with results
indicating that fermentation
is possible and that little
or no pretreatment of the
“juice” is necessary, Bellmer
said. More research is being
performed for validation on
fermentation efficiency.
After fermenting, concentration of
the ethanol through distillation is the
next step.
By obtaining university data
through research by the FAPC,
McClune hopes the entire process of
converting sweet sorghum into ethanol
will become more marketable.
“[Bellmer] has been very
helpful, very encouraging, and I
certainly appreciate all the efforts and
everything she’s done,” McClune said.
The FAPC is dedicated to helping
Oklahoma agriculturalists develop
value-added enterprises to keep
the products, jobs, and dollars in
Oklahoma.
Spring 2006 5

F
oodservice has long been
considered a headache for
healthcare administrators.
Since most hospital patients require
specific diets and timely feeding,
foodservice has become a necessary
function of healthcare institutions.
Given this reality, institutions have
used the cafeteria as an outlet for
excess production and to provide
meals to visitors and employees.
These departments have rarely
been considered as a possible source
of profit, but rather as a cost burden
on the facility similar to utilities. This
cost-driven attitude has fostered the
image of the foodservice component
as a traditional cafeteria, selling cheap
food as a convenience to guests.
In today’s market of corporate
healthcare and bottom-line
accountability, institutional
foodservice is due for a commercial
makeover.
A Matter of Perception
Traditionally, institutions have not
viewed their foodservice component
as a profit center. More simply
– and incorrectly – this area has
been considered a cost burden to the
facility as a whole. Yet, despite the
fiscal implications, administrators in
the healthcare industry continue to
struggle with how these costs should
business & marketing
The Cost of the Bottom Line
Changing the Cafeteria Paradigm
be managed. In many cases, costs are
not truly managed at all, but rather
the foodservice department head is
given a target for expenses. In those
same cases, it is likely that little or no
research has gone towards establishing
the validity of that target.
In stark contrast, the general
foodservice industry, specifically
restaurants, has made knowing its
costs a scientific reality. Detailed
inventories and purchasing records are
used to systematically plan daily, even
hourly, activities.
Like it or not, today’s hospital
administrator must realize that he or
she is competing in the foodservice
business. For example, a 2003 article
in Food Management reported that
a 300-bed facility would typically
produce and serve 700 times as much
food as a fine restaurant.
Further, those who go to
restaurants do it at their discretion,
while the foodservice provided
by a hospital is compulsory. It is a
necessary part of the core business; it
should be seen as a core competency
for the institution. As a department
head, it is the responsibility of the
foodservice director to present the
department in that light.
In a time of abundant food options and heightened expectations,
noncommercial operators who rely on the “captive customer” cushion of
the past and who ignore innovation watch those customers go elsewhere.
To compound the problem,
managed care organizations have
emerged that focus on strategies for
cost control and improving access
to medical services. Managed care
has prompted many organizations
to reassess services they provide.
A survey of hospital executives
published in the Journal of the
American Dietetic Association
indicated approximately 70 percent
expect to reduce services, which
likely will include food and nutrition
services. Unfortunately, this approach
only serves to weaken the foodservice
department’s ability to be profitable.
A Case of Mistaken Identity
Like its commercial-foodservice
counterparts, the noncommercial
market struggles with shortages
and customers’ changing tastes. In
a time of abundant food options
and heightened expectations,
noncommercial operators who rely
on the “captive customer” cushion of
the past and who ignore innovation
watch those customers go elsewhere.
This should be a great concern for
institutional foodservice.
Most consumers have expectations
of “cafeteria food” when presented
with an opportunity to dine in an
institution. While gelatin may be a
pleasant option for patients on liquid
diets, healthy adults dining in the
hospital cafeteria do not typically
purchase gelatin. To be competitive
in the greater foodservice market,
institutions must now strive to become
a destination for consumers.
For decades the term institutional
was used to describe any on-site
foodservice facility (hospitals, schools,
continued on page 14
6 fapc.biz

Spring 2006 7

A
ssume for a moment you
have an old pick-up truck.
For years, it has been a
useful vehicle, never needing a lot of
maintenance; it just kept chugging
along. Over time, it develops some
quirks, but those quirks just add a little
character. Soon, the problems occur
more frequently, and the truck begins
requiring regular (and sometimes
major) maintenance. One day, the
truck simply stops working altogether.
You assess the situation and decide
it is out of your hands, so you take
it to a specialist. The specialist takes
a quick look and lets you know that
the solution is simple: Paint the truck
green.
How much would you be
willing to pay for this information?
Corporations pay millions for this
information every year, simply
because they do not understand the
difference between image and identity.
Accepting Merriam-Webster’s
definition of image as “a tangible or
visible representation,” then corporate
image could be defined literally as “a
tangible or visible representation of a
corporation (or business).” If Merriam-
Webster defines identity as “all that
constitutes the objective reality of a
thing,” then it follows that corporate
identity would be “all that constitutes
the objective reality of a corporation.”
It seems despite industry’s great
strides in the identification, valuation,
and cultivation of branding and visual
assets, businesses as a whole are
falling well short of the true mark.
Even corporate image and identity
“specialists,” notoriously dramatic
in their tales of the importance of a
strong identity program, are grossly
underselling the gravity of their
services.
The conventional application of
a corporate identity program is to
unify all aspects of a corporation’s
communications, both internal and
external and across all media. An
emphasis on common and recurring
themes and imagery quickly
becomes evident on letterhead,
logos, advertisements, and the vast
myriad of marketing materials. While
this consistency of conversation is
certainly crucial, it is hardly holistic in
its approach. The sum of a company’s
impressions is not contained within
the company letterhead, logo,
campaign slogan, or even the products
themselves. These conversations
extend to its sales force, customer
service, and sometimes even to
retailers and their associates.
A classic argument is that the
customer is purchasing the product but
is “buying” the brand. In particular,
a McDonald’s customer purchases a
cheeseburger that would otherwise be
a fast-food commodity but receives the
added value represented by the Golden
Arches: a comfort level developed
through consistent operations and
effective marketing imagery. As
consumers have become more and
more educated about nutrition,
business & marketing
Image
“[Corporate Identity]…is that component of a corporation’s image that can be wholly
controlled by the company in its entirety.” – Walter Margulies
“…since many people use these terms interchangeably. A corporation’s
image is what is perceived by its various audiences – how it appears to
outsiders such as the financial community or to potential customers of
its products or services; a corporation’s identity is what it chooses to use
to shape those perceptions.” – Clive Chajet
McDonald’s has evolved its marketing
effort to reflect the healthier menu
choices available to its customers.
Consumers choose McDonald’s over
its competition because it is a better
value. This is Image.
What is the effect when the
customer visits a restroom that has
not been regularly attended to by
the staff? No team of graphic artists
or marketing specialists, however
qualified or dedicated, plan to tidy up
their clients’ restrooms (at least, not
with any regularity). Yet, the condition
of the restroom, the attitude of an
employee, and even the quality of
the landscaping, all greatly affect the
customers’ perceptions of the food
product they have just purchased.
Even the most impressive of logos and
taglines are of no help here; this is an
operational matter, a cultural matter.
This is Identity.
It seems like such a remedial
lesson. Any business must manage its
operation well to stay in business. It is
intuitive, a given, and it is ultimately
where corporate identity programs fail.
Image specialists tout the necessity
of branding and brand valuation,
often as the only separation from the
competition. Businesses then flock to
these specialists in search of holistic
branding solutions. Specialists return,
not only with attractive and thoughtful
visual imagery, but with examples
8 fapc.biz
vs

usiness & marketing
“…[Image] is the total impression a company makes on its public through its products,
policies, its actions, and its advertising effort.” – William Goldman, creator of the CBS “eye”
.
Identity
of how the imagery works in every
medium and a massive handbook
detailing every size and specification
for every possible instance of every
possible use. With a new “identity” in
hand, the business charges back out
into the market expecting the profits
to quickly roll in. The problem, of
course, is very little about the business
has actually changed. The old dog has
a new sweater, but it is the same old
dog.
It is no surprise the image
specialists expect the business to
handle its operations; after all, it
is intuitive. The principals in the
business would even agree this is their
responsibility, so it continues to be
business as usual. Unfortunately, it is
usually operations that cause brands to
lose value and not even the specialists
have addressed this central issue.
Corporate identity involves much
more than images and taglines. It is,
by definition, the whole objective
of a company. Identity specialists
must understand all of a company’s
communications, messages sent within
the company, between its partners
and subsidiaries, and to and from its
customers. All visual imagery must
be in complete concert with these
communications and vice versa. After
all, if you cannot get the old truck
to start, it certainly will not help to
simply paint it green.
1930s -
The Great Depression forced businesses to evaluate every aspect
of their portfolios. Select businesses seized the opportunity to reinvent
themselves through new and innovative products and imagery. Elsie the
Borden cow and the RCA/Victor dog are two memorable mascots of the time.
1940s -
As the United States entered WWII, efficiency was a definitive
aspect of American culture. Even the products themselves were built to look
clean and sharp, and simple geometry became the look of the era. IBM’s block
logo and Motorola’s “M” mark emerged from this period.
1950s -
The age of international conglomerates saw many of the
cartoonish characters of the past generation retired in the belief that these new
multinational companies were more serious businesses. For the first time,
images were considered to be assets rather than ornaments.
1960s -
The early 1960s were about being “in.” Everything was proper and
polished. The Chase Manhattan Bank symbol became a clean, stylish model
for the international business world.
1970s -
Corporate Identity through the Decades
Immense distrust shrouded American culture in the face of political
scandal and unprecedented energy crisis. Goodwill towards men was the
marketing spin, as seen in Coca-Cola’s hand-holding chorus teaching the
world to sing and Mean Joe Greene’s timeless trade of his jersey for the
company’s flagship beverage.
1980s -
In a decade of bigness, “less” actually became more and “Lite”
defined a marketing era. Previously, diet beverages and foods had literally
left a bad taste in consumers’ mouths, but now companies could convince
shoppers they could eat what they wanted and feel good about it.
1990s -
Economic upturns opened the doors for a flood of new businesses,
and all of these businesses needed trade names. Trademark applications tripled
by the mid ‘90s. With all the good names being taken, this decade gave birth
to thousands of fanciful and coined words, such as Google and Aventis.
Now -
In the wake of the dot-com bust, the market has become careful.
There is enough perceived risk in the marketplace without adding the need
to educate investors about the meaning of the word a company just paid
someone to invent and used its name in commerce. With the popularity of
search engines, it is simply more effective to use words and imagery that is at
least suggestive of the nature of the business. Expect corporate identity firms
to cling more tightly to the dictionary for the next few years.
Spring 2006 9

f a p c inside the fapc
FAPC Fills New Position
S
ince its inception in 1997, the
FAPC has provided Oklahoma
producers, entrepreneurs, and
large and small business owners access
to staff and faculty with expertise
in business and technical disciplines.
Recently, the FAPC expanded its professional
staff to include a new Value-
Added Meat Processing Specialist.
Jacob Nelson, former Meats Processing
Manager, was chosen to fill the
position. Nelson believes his transition
from FAPC Meats Processing Manager
to Value-Added Meat Processing
Specialist will benefit the FAPC and
the state of Oklahoma.
“We have people that know meat
science and know the meat industry,
including myself in my previous position,
but the FAPC has never had a
staff level position that addresses nothing
but the meat industry and the challenges,
issues and opportunities in the
state, until now,” Nelson said.
Nelson plans to do just that. As
Value-Added Meat Processing Specialist,
Nelson will supervise the enhancement
and promotion of new val-
with Familiar Face
ue-added products and develop educational
workshops and programs for all
facets of the meat industry—poultry,
red meat, fresh, cooked, ready-to-eat,
snack foods, and foodservice.
“I hope to create programs, whether
they be outreach, educational, or
research, that make the FAPC a magnet
for meat processors in the state,”
Nelson said. “We want to make this
the go-to place for resources, no matter
what the problem is—regulatory,
product-based issues, or processing
issues.”
One of the goals of the FAPC is
to educate people. Consideration as a
premiere resource for education and
problem solving by the meat industry
in Oklahoma would give the FAPC nationwide
credibility as an educational
center.
Nelson is certainly capable of putting
his plan into action. He is welleducated
and has ample experience.
“I received my bachelor’s degree
and master’s degree from OSU in animal
science and food science, respectively,”
Nelson said.
4-H experiences sparked Nelson’s
interest in food science early in life.
Nelson was often exposed to livestock
evaluation but was always fascinated
with the next step, the finished product.
“It was inherent curiosity,” Nelson
said of his interest in carcass fabrication
and the meat counter at the local
grocery store.
After completing a two-year meat
science program at Eastern Oklahoma
State College, the Sand Springs native
came to OSU where he competed at
the Institute of Food Technologies quiz
bowl regional competition in Dallas,
Texas, and was a member of the meats
judging team. As a master’s student,
Nelson coached the 1996 OSU meats
judging team.
When the FAPC Meats Processing
Manager position became open in
1997, Nelson, still a master’s student,
applied and was awarded the position.
Nelson became a part of the FAPC
team on June 2, 1997, and remains a
vital member.
Nelson’s first order of business
as the Value-Added Meat Processing
Specialist is to become even better
acquainted with the meat industry in
Oklahoma.
“I want to learn, meet, and know
the industry,” Nelson said. “If there is
a meat processor or someone intimate
with the meat industry in the state, I
should be able to call him or her by
first or first and last name and know
who that person is.”
Nelson plans to do this the oldfashioned
way.
“I’m going to get a list, and I’m
going to get in a vehicle and just go
meet people,” Nelson said.
This is an ambitious undertaking,
but Nelson is determined. For those
who are involved in the meat industry
in Oklahoma and would like to help
Nelson meet his goal, please contact
him by calling (405) 744-6329 or
sending an e-mail to
jacob.nelson@okstate.edu.
10 fapc.biz

from the test kitchen
Food Appearance...
Influences Consumers to Purchase Products
O
ne of the first things
consumers do before
purchasing food at a store or
eating food at home or in a restaurant
is look at it. A food’s appearance is a
large part of how consumers perceive
its quality and is often the deciding
factor in whether it is purchased.
Green bread is probably not going to
be a big seller!
The product designer has to pick
colors that are most appropriate for a
particular food. By thinking ahead, the
product designer can choose colors
that are both appealing and appropriate
for a particular food system.
However, there are many factors,
in addition to a pleasing appearance,
that need to be considered when
determining the type of color to be
used in a specific food application.
A few that should be considered are
pH, processing temperature, storage
temperature, and shelf life.
Process Temp
Foods can be processed at any
number of temperatures. To maintain
optimal appearance it is important to
ensure color stability.
Many colors are only stable within
a specific temperature range; beyond
that, the color may fade or degrade.
Keep in mind processing times and
temperatures when choosing colors.
Storage Temp
A shelf-stable product developed
in a laboratory that is climatecontrolled
and shipped to a grocery
store that is climate-controlled is
probably going to spend the interim in
a warehouse that is not. Temperatures
can vary greatly in warehouses
depending on the season. Warehouses
without climate-control can be well
above 85˚F during the summer months
and well below 40˚F during the winter
months.
As mentioned earlier, it is very
important to be aware of the entire
range of temperatures that a product
will be exposed to during its time in
the retail chain. It may be necessary to
adjust the concentration and/or type of
color used if product
will be exposed
to extreme
temperatures
during storage
for significant
lengths of
time.
Shelf Life
Depending
on the type of
product and
how it is stored,
it is possible for
a food to be in
the retail system
for the better
part of a year (or
longer). The color
should last for the length of
the product’s lifespan.
Colors naturally tend to
fade with time, and if they are
exposed to bright light for extended
periods of time, such as in a grocery
store, this can accelerate the fading.
pH: What is the pH of the product?
Some colors change hue
depending upon whether a food is
acidic or basic. Anthocyanins can turn
from red to blue-green with slight
changes in pH so it is important to
keep this in mind when choosing a
food coloring.
Additionally, it may be
advantageous to measure the pH of the
individual liquid ingredients that are
incorporated into the finished product.
The pH of ingredients, such as water
or fruit juice, can vary due to season
and/or location.
Spring 2006 11

Total Quality Management
Quality is never an accident, it is always the result of intelligent effort.
– John Ruskin
T
otal Quality Management
(TQM) comes in various
forms and has taken on many
meanings.
“TQM is a management approach
to long-term success through customer
satisfaction. TQM is based on the
participation of all members of an
organization in improving processes,
products, services, and the culture they
work in. TQM benefits all organization
members and society.” 1
TQM
TQM can be found in the ISO
9000 2 family of quality standards
and in quality awards, such as the
Oklahoma Quality Award 3 and
Primary Elements of TQM 1
Baldrige National Quality Program 4 .
Third party food safety auditing
companies have developed their own
more prescriptive form of TQM, such
as the FPA-SAFE Program 5 , AIB’s
Integrated Quality System Gold
Standard 6 , NSF’s Cook and Thurber
Food Safety, Quality and Security
Expectations, and Criteria for Food
Processing Facilities 7 .
It does not matter what shape
or size the TQM program comes
in, the focus is to achieve customer
satisfaction involving all managers and
employees using quantitative methods
to continuously improve processes.
TQM is based on a number
of ideas. It means thinking about
Customer Focused – Who are your customers and what are their needs? What
is their level of quality expectations?
Total Employee Involvement – All employees working towards common
goals. Giving employees empowerment and removing fear from the work
place.
Process Centered – Define the steps to carry out a process, and continuously
measure to detect variation.
Integrated System – All processes build on each other to add up to the larger
process; this progression develops into the business process required for
defining and implementing strategy.
Strategic and Systematic Approach – Management of quality must include the
incorporation of quality as a core component in the strategic plan.
Continual Improvement – The heart of TQM is continual process
improvement. To meet stakeholder expectations and finding ways to make
the organization more competitive and effective is never ending.
Fact-based Decision Making – Without data you have no way of knowing
how well your company is performing. Data on performance measures is
necessary to improve the process and make decisions.
Communications – Day-to-day management or during organizational change,
communication is important to use to maintain morale and to motivate all
employees.
quality management
quality in terms of the functions of
the enterprise, and it can be viewed
as a management-led approach in
which top management commitment
is critical. TQM is a systems approach
that integrates interrelated functions at
all levels.
TQM considers interaction
among elements of the organization,
and the emphasis is on quality in all
areas of the company operation, not
just the manufacturing function. The
approach of TQM is one of prevention
of errors and faults rather than
detection and correction. TQM can be
viewed as a philosophy of continuous
improvement.
When all of TQMʼs elements
are implemented properly, the
organization becomes solid, strong,
and cohesive.
TQM is the foundation for
activities that help an organization
meet customer requirements, reduce
cycle times, incorporate improvement
teams, reduce product costs, and
improve administrative training.
TQM at FAPC
Team Quality was recently
established to provide the support and
resources for all the quality initiatives
at the FAPC. The FAPC Team Quality
mission is to “facilitate the quality
culture within the FAPC.”
FAPC Team Quality will be used
to provide periodic training to all
FAPC employees, develop protocols
for continuous improvement in
workshops, and provide leadership in
the development of additional quality
improvement teams.
12 fapc.biz

quality management
Teams have been organized at the
FAPC to encompass TQM strategies
and systems to improve the processes
to better provide “performance
excellence” to the customers and
clients of the FAPC.
The FAPC laboratories have
participated in Good Laboratory
Practice training and have
continued the journey of continuous
improvement through FAPC
Laboratory Practice policy, periodic
meetings, and verification checks of
the implementation of the FAPC Lab
Practice policy.
The FAPC has incorporated two
improvement initiatives in 2005:
1) Steps for Clients Success and 2)
FAPC Project Flow. Both of these
improvement teams take a look at
where the FAPC has been and where it
needs to go.
FAPC personnel also participated
in a 3-day “7 Habits of Highly
Effective People” workshop. “No
company can succeed until individuals
within it succeed. No group can
achieve its objectives until its people
achieve theirs. That is what Franklin
Covey’s 7 Habits workshop is about–
making people effective so they, in
turn, can make their organizations
effective.” 9
The 7 Habits workshop is not
TQM, but it is a philosophy that when
used “interdependently” can enhance
all areas of an establishment’s TQM
program.
1 The Certified Quality Manager Handbook, 2nd Edition,
Duke Okes & Russell T. Westott, Quality Management
Division of the American Society for Quality
2 ISO 9000 http://www.asq.org/learn-about-quality/iso-9000/
overview/overview.html
3 Oklahoma Quality Award, http://www.oklahomaquality.com/
4 Baldrige National Quality Program, http://
www.quality.nist.gov/
5 FPA Safe Program, http://www.fpa-safe.org/default.htm
6 AIB Gold Standard, http://www.aibonline.org/
qualitycertprograms/gold.html
7 NSF Cook and Thurber, http://www.cookandthurber.com/
index.html
8 2005 Baldrige National Quality Program Criteria for
Performance Excellence
9 7 Habits of Highly Effective People, Stephen Covey
10 Continuous Process Improvement Program, Quick
Reference Guide. 2004. Timothy Bowser, Food &
Agricultural Products Center, Oklahoma State University
Baldrige Criteria for Performance Excellence 8
Leadership - Examines how your organization’s senior leaders guide and
sustain your organization. Also examined are your organization’s
governance and how your organization addresses its ethical, legal, and
community responsibilities.
Strategic Planning - Examines how your organization develops strategic
objectives and action plans. Also examined are how your chosen strategic
objectives and action plans are deployed and changed if circumstances
require and how progress is measured.
Customer and Market Focus - Examines how your organization determines
the requirements, needs, expectations, and preferences of customers and
markets. Also examined is how your organization builds relationships with
customers and determines the key factors that lead to customer acquisition,
satisfaction, loyalty, and retention and to business expansion.
Measurement, Analysis, and Knowledge Management - Examines how
your organization selects, gathers, analyzes, manages, and improves its
data, information, and knowledge assets. Also examined is how your
organization reviews its performance.
Human Resource Focus - Examines how your organization’s work systems
and your employee learning and motivation enable all employees
to develop and utilize their full potential in alignment with your
organization’s overall objectives, strategy, and action plans. Also examined
are your organization’s efforts to build and maintain a work environment
and employee support climate conducive to performance excellence and to
personal and organizational growth.
Process Management - Examines the key aspects of your organization’s
process management, including key product, service, and organizational
processes for creating customer and organizational value and key support
processes. This category encompasses all key processes and all work units.
Results - Examines your organization’s performance and improvement in all
key areas—product and service outcomes, customer satisfaction, financial
and marketplace performance, human resource outcomes, operational
performance, and leadership and social responsibility. Performance levels
are examined relative to those of competitors and other organizations
providing similar products and services.
The FAPC will encourage clients to become world-class quality
manufacturers of food and agricultural products, achieving competitive
advantage by the maximum and efficient utilization of resources, including
natural, technological, and human. The process to accomplish this mission
revolves around a total quality concept, which will be nurtured and developed
through partnership with the FAPC and networking with other successful
businesses.
Manufacturers will develop a total quality process that promotes
an environment for continuous improvement by maximizing employee
participation, minimizing and eliminating waste, emphasizing training, and
promoting enhanced communication within all levels of operation. 10
Spring 2006 13

CAFETERIA PARADIGM, from page 6
military bases, etc.). Foodservice
operators took issue with this word,
mostly due to the negative “lunch
lady” connotation attached to it, and
institutional was replaced with the
term noncommercial.
In a more recent effort to become
commercially competitive, corporate
and educational segments have
taken on names like dining services
or culinary services, while hospital
dietary departments became known as
nutrition services.
Of course, name changes continue
to be the corporate identity quick fixes
in most every level of every industry,
so this trend is certainly no surprise.
For hospitals, Nutrition Services
implies that this is a place where one
can choose from all sorts of fresh,
heart-healthy food. In fact, it seems
not only reasonable, but intuitive,
that a foodservice outlet located on a
healthcare facility campus would be a
wise choice for healthy dining.
However, because institutional
foodservice is driven from a pure cost
standpoint, menus and the resulting
purchasing patterns reflect only the
most inexpensive food items available
from distributors. Quite often, the
health factor of such foods is not
considered. As a result, institutional
menus only serve to support the
cafeteria paradigm, and there is no
reason for the consumer to consider
hospital eateries as a healthful
alternative to restaurants.
In fairness, some local
administrators have tried to address
this issue. One regional healthcare
facility recently introduced new,
healthy options in the cafeteria,
driven primarily by a more proactive
commitment to employee health
and wellness. However, the simple
presence of healthier items has not
proven to be the solution to the
problem. Many career foodservice
associates may be experts at making
irresistible hot rolls and pies (and
not so irresistible meatloaf) but may
not be familiar with current food
trends that reflect healthier ingredient
options and ethnic cuisine. At this
point, quality becomes a serious issue
prohibiting sales. Additionally, the
costs of such foods are most often
greater than the traditional selections,
which were originally chosen for their
low price tags. It is not enough that
administrators expand the menu. They
must manage those changes as well.
Bottom-Line Thinkers
The foodservice industry is
littered with executives who manage
from the bottom line. While this
occurs routinely in every segment of
the industry, it is most prevalent in
institutions. Yet, it is institutions that
seem to have the biggest problem
grappling with food cost management.
business & marketing
After joining a local hospital,
one new foodservice director quickly
noticed the cafeteria was not charging
customers enough to cover raw food
costs. Not surprisingly, hospital
administrators did not know this fact
until he told them. This is hardly an
isolated incident, as many healthcare
facilities do not truly know how to
account for foodservice. This regional
healthcare facility introduced a new
PLU (Price Look Up) system to
track sales and product purchases in
its nutritional services department.
In this case, no new equipment was
needed for the transition. Someone at
the facility simply programmed the
cash register to take advantage of its
existing features.
A Top-Line Approach
In an editorial in a 2001 edition
of Restaurants and Institutions:
Institutional Giants, J. Matsumoto
noted the institutional side of the
foodservice ledger accounts for nearly
one of every four dollars will be spent
on food prepared outside the home.
With this in mind, it could be argued
institutions have a sizable portion of
an already vast market. In an industry
competing heavily for repeat business,
institutions have an unparalleled
opportunity to make favorable
impressions on consumers. Sporting
a menu of more trendy dishes and
a wider variety of ethnic selections,
institutions could compete with
restaurants for more of the consumer’s
disposable income. Additionally,
institutions might consider outsourcing
part of their food service program to
chains like Subway, which conveys
a message of healthy and enjoyable
eating and would offer a valuable cobranding
opportunity for both partners.
This does not have to come at a
high cost to the facility. Soy products
14 fapc.biz

usiness & marketing
and meat alternatives have become
popular with patrons to all types of
foodservice and have become costsavers
in hospitals. Furthermore,
premium menu items command a
premium price from consumers.
Having several high-end entrees on a
regular basis will heighten perceptions
about the institution’s foodservice
business, prompting a more qualitydriven
clientele and adding value to
the eatery’s products. The resulting
image will allow the foodservice
outlet to focus on driving the top line
in the same fashion that restaurants
do. These high-margin menu items
will result in more direct profit to the
overall facility.
Trendy food items cannot wholly
change the institutional food image.
It is reasonable to assume healthcare
facilities are already viewed as a
source for healing and wellness.
Therefore, it is imperative that the
on-site eatery reflects this image;
yet, as obvious as this may seem, it
is generally not the case. Because
of traditional cost driven purchases,
institutions tend to feature low-cost,
low-margin foods. Many of these
foods are deep fat fried and not
consistent with the general facility’s
image of health and wellness. Again,
purchasing habits must evolve and
the resulting cost structure must be
adjusted to account for this new top
line approach.
As a marketing tool, quality onsite
dining makes a marked difference
in employee and patient morale. As in
any segment of foodservice, good food
and modern settings make it easier to
attract and retain the best foodservice
employees. This commitment would
also attract a better quality of hospital
staff. Some hospitals offer no services
to night shift employees, whose
options then become candy bars and
chips from vending machines or the
occasional pizza delivery. Vending
machines do not have to be full of
junk food to be big moneymakers.
Processors, such as Gardenburger,
Inc. of Clearfield, Utah, package
low-fat items for vending machines
that dispense things like yogurt and
sandwiches.
Oh, and for You Bottom-Line Folks
When Restaurant Associates, a
foodservice consulting firm, consults
with institutional clients about their
foodservice operations, they approach
the job the same way they would
approach a restaurant feasibility study.
In a restaurant, careful attention is paid
to inventories and product mix. Trends
can be broken into seasons while
more specific customer behaviors
can be traced even to the half-hour.
Restaurants use par sheets to control
shift-wise production to ensure
efficiency of both labor cost and food
cost. Any waste is recorded in detail
and tracked.
Using this information, the
restaurant is able to create a
purchasing system that is a cost saving
tool. By strictly controlling inventory,
the restaurant can effectively reduce
waste throughout its operation.
Institutions must come around to this
type of detailed management system
to be competitive. Without these
measures, the foodservice component
will continue to be a financial drain.
The Real Bottom Line
In the future, pressures to
increase revenues will likely result
in hospital foodservice departments
initiating more profit-generating
retail ventures. Surveys show many
directors anticipate an increased
use of certain profit-generating
practices in their operations: on-site
catering, debit cards, self-operated
coffee kiosks, on-site bakeries, and
family style to-go meals. The most
established and efficient example of
One certain reality is the institutions that evolve their procurement and
cost systems now will be the ones that will be profitable in the future
market.
how to implement and manage these
new features is the restaurant model.
The institution must feature desirable
menu choices that project sensitivity
to consumer trends, thus making
the institution a destination eatery.
These choices must also convey an
image of health and wellness to the
consumer, capitalizing on the facility’s
established role in the community as a
health provider. Lastly, the associated
costs and resulting systems must be
managed in detail, the way many of
the more health-critical elements of
the institution are. Only in this way
can those profits be determined, costs
assessed, and success guaranteed.
Despite the evidence, it remains
to be seen how institutions will
embrace the imminent changes that
will befall the industry. Admittedly,
it will be difficult for many longtime
administrators to develop the
necessary focus.
The greater burden will fall to the
new crop of culinary students entering
the industry with fewer preconceived
notions of administrative systems
in healthcare. One certain reality
is the institutions that evolve their
procurement and cost systems now
will be the ones that will be profitable
in the future market.
Spring 2006 15

Division of Agricultural Sciences and Natural Resources • Oklahoma State University
Food & Agricultural Products Center
Oklahoma State University
148 FAPC
Stillwater, OK 74078-6055
16 fapc.biz