Chapter 1 :- Planning and Organizing the Housekeeping Department

(A.) Area Inventory List:-

The important planning task is to prepare a list of all items and surfaces within a particular area that require the attention of housekeeping personnel. The more detailed the list, the more efficient the cleaning and maintenance of the areas will be, in all probability. Area Inventory lists also aid in supervision.

(B.) Frequency Schedules:-

Frequency schedules show how often the items listed in an area inventory list are to be cleaned and maintained. The frequency of cleaning is directly related to the type and amount of soiling expected in the area or on the item to be cleaned. Frequency schedules divide the cleaning and maintenance tasks into daily, weekly, monthly, or periodic tasks.

(C.) Performance and Productivity Standards:-

Performance standards- Performance standards describe how and to what standards the work is to be done. In other words, performance standards lay down the required quality levels for employees performance.

Performance standards are achieved when:

Cleaning methods are correctly selected and systematically followed.
The ideal cleaning agents are used on the various surfaces involved.
The correct pieces of equipment are used on the various surfaces involved.
Cleaning tasks are carried out at required frequencies.
All the employees carry out their cleaning tasks in a consistent manner.
Time-and-motion studies are periodically carried out in the department to obtain best practices in housekeeping.

Productivity Standards - Productivity standards communicate the quantity of work expected to be completed by each employee of the department. Housekeeping managers must know how long it should take an employee to perform the main tasks in the area inventory lists, as this knowledge helps in determining staffing requirements. Efficient housekeeping is achieving a balance between performance standards and productivity standards.

(D.) Time and Motion Study in Housekeeping Operations:-

Time Study- Time study is mostly observing and recording the time required for performing each detailed task of an operation. It involves the following steps:

Dividing the work into various parts or components.
Recording the time taken by different employees in completing the task.
Selecting the average worker.
Recording the time taken by the average worker to perform similar work under normal conditions.
Setting up the standard time. Every worker is required to complete the work within the standard time.

Motion Study- Motion study is the sequence of eliminating wastefulness resulting from using unwanted steps. The aim of motion study is to identify the scheme of work or the best suited method of doing a given work. The steps involved in a motion study are as follows:

Selecting an efficient worker.
Analysing the movement involved.
Recording the best motion involving the minimum time and effort.
Selecting the most efficient working system.

Advantages of time and motion study:-

It improves the methods and procedures of performing various jobs.
It helps in improving the layout of the hotel facility.
It improves the utilization of resources.
It reduces human effort by proper designing of processes.
It helps to develop suitable working conditions.

(E.) Standard Operating manuals- Job procedures:-

A job procedure specifies the way in which a task is to be performed. Job procedures should be used during induction and training sessions and ought to be incorporated into the department’s procedure manuals. Updating job procedures is necessary as and when changes in equipment, cleaning materials, and so on, occur. They are most popularly called ‘SOP’s’ or standard operating procedures. They are also referred to as ‘work cards’ or ‘order of work’ documents.

SOP’s comprise the following information:

The job to be done
Equipment and materials required
Procedure of work
Safety factors
Time required to do the job

The goals in establishing SOP’s are as follows:

To aid standardization
To help in training
To preserve surfaces and materials
To ensure the completion of a task successfully
To effect a saving on cleaning equipment and agents
To prevent accidents
To help in training
To ensure the completion of a task successfully
To aid the compiling of work schedules and help in staffing requirements.

(F.) Job Allocation and Work Schedules:-

Job Allocation- Specifies the area being allocated to the workers called on duty in a given shift. Following points are taken into consideration at the time of allocation:-

Occupancy patterns

Traffic in public area

Group/crew movement

Prioritization Allocation is done for

Rooms

Lobby

Cloakrooms

Restaurants

Banquet halls

Heart of the house

Work Schedules- A work schedule is a document that lists the actual tasks to be carried out by an employee in a particular shift and the time frame in which to undertake each task. The document includes the following:

The position of the employee
The area of operation
The time at which the employee has to perform the allotted task
Timings of meals,breaks,and any special job
Time for tidying equipment and closing up

Since the amount of work in a day may take longer than the length of one shift, several work schedules need to be compiled for use in one day. The number of schedules made for a given area is thus an indication of the number of staff required to clean that area on the particular day. The schedules should be handed over to the employees when they report for work.

(G.) Calculating staff strengths & Planning duty rosters,teamwork and leadership in Housekeeping:-

Calculating Staff Strengths-

Compared to other hotel departments, the housekeeping department employs the largest workforce in most hotels. Manpower thus becomes a major operating expense. Good management of the housekeeping department depends on achieving a balance between the workload and the staff strength. When calculating staff strength, it must be remembered that each property will have its individual requirements.

The factors to be considered here are:

The type of hotel it is
The location of the hotel
Traditions and customs of the locality
The size of the hotel (in terms of number of rooms)
The occupancy rate of the hotel
Management needs
Company policies
The quantity of work to be done
The quality of work expected, that is, the standards to be met
The time needed to do the work
The frequency with which the work needs to be done
The time when the work area is available
The amount of traffic in the area

The staff strength of the housekeeping department mainly depends on the size and structure of the hotel, that is, whether it has a compact structure with clusters of rooms, the number of rooms per cluster or floor, the expanse of the public areas and landscaped areas, and so on. The general rule of thumb that aid in determining staff strength in the housekeeping department is given below.

Thumb rules for determining staff strength

Executive housekeeper: 1 for a 300 room property

Assistant housekeepers: 2 (1 per morning and evening shift)

Floor supervisors: 1 per 60 rooms for the morning shift; 1 for the evening shift; 1 for the night shift.

Public area supervisors: 1 for each shift

Linen/uniform room supervisors: 1

Room attendants: 1 per 16 rooms for the morning shift; 1 per 30 rooms for the evening shift (if turn down service is provided)

Linen and uniform room attendants: 2

Housemen: depends on the size of public areas and functions expected, but on average, 1 per 60 rooms

Desk attendants: 1 per shift

Tailors/upholsterers: 2 (may differ depending on the size of the hotel)

Horticulturist: 1

Head gardeners: 1 per 20 horticulturists

Gardeners: 1 per 4500 sq. ft of landscaped area

Planning Duty Rosters:-

Duty rosters specify the allotment of jobs,hours of duty, and days off for each member of the staff. To make for an even share of duties, the roster should be rotated every five weeks. Duty rosters must be simple in format, easy to interpret, clearly written, and displayed on the staff notice board at least a week in advance.

Advantages for a duty roaster:

Planning a duty roaster in advance helps to ensure:

The exact number of staff required to be on duty at any given occupancy.
That staff working hours are as per their employment contract.
That regular off-days are availed for enhancing productivity.
Knowledge of which employees are present on the premises in instances of emergencies.
Accuracy in attendance and payroll reports.

Teamwork and Leadership:-

The current trend in housekeeping operations is to form teams to accomplish tasks rather than scheduling employees on an individual basis. The three important determinants of teamwork are leadership, the building of the right kind of groups or teams for better productivity, and membership (which reflects the individual contributions people will make towards team goals). A housekeeping team may consist of one supervisor, several (2-5) GRAs and one houseman. This team under the supervisor becomes totally responsible for a particular section of guestrooms in the hotel. Cleaning performance, say, is then measured on a team basis rather than on individual basis.

Team cleaning-an example of teamwork: In team cleaning, two or more GRAs together clean one guestroom at a time. Usually teams of two GRAs each are assigned to 30-35 rooms. Team members rotate duties of bedroom and bathroom cleaning. Team cleaning is successful when ideas come from the employees themselves and they are given a free hand in their implementation. Team cleaning works in hotels that are willing to make a change to meet new challenges. Promoting teamwork within each team requires special effort. A teamwork checklist should be followed by the executive housekeeper to make it a success.

Reward teamwork by praising the team and giving them choice assignments, raises, and promotions.
Include teamwork as a criterion during the employee’s performance appraisals.
Rotate special assignments, allowing everyone an opportunity to shine as an individual occasionally.
Consider ideas generated jointly by the team as well as individual ideas.
Share information and give the team a say in decision-making.
Give credit to the team for jobs well done.
Set an example of cooperation with others and yourself.

Advantages of teamwork:

There are many advantages of teamwork. Some of these are as follows:

A principal advantage to the manager is in being able to schedule a group of people as though they were one entity.
Co-operation and workers morale will be higher when they are part of a small unit rather than solitary individuals in a large group of people.
Team spirit will cause the entire group to excel in operations. GRAs who excel in room cleaning help the poorer performers on the team to improve.
Absenteeism and tardiness get better resolved at the team level because one member being absent or late could have a negative effect on the entire team’s reputation.
With increasing concern for safety and security, assigning two or more GRA’s to clean a room could save expenses on liabilities and lawsuits.
Mundane cleaning tasks may become fun when performed as a team.
Fewer tools are needed-for example, one room attendant’s cart, one vacuum cleaner, and one hand caddy can equip a team of two.
Some heavier cleaning tasks are accomplished more easily and faster with two people-for example, moving beds, turning over heavy mattresses, making up a double bed, and so on.
Bringing new employees up to the required standards becomes easier since they have buddies to coach them along the way.
There is saving on labour costs since team workers complete work faster, have better attendance, meet with fewer accidents, and develop greater interest in improving the processes.

When planning for team cleaning, the executive housekeeper must address the following considerations:

Have linen and cleaning inventories equally distributed so that teams do not fight over supplies.
If a team must stop because it is faced with some hurdle, the work output of 2-3 people is stopped, as opposed to only one in the traditional method of guestroom cleaning. Hence the executive housekeeper should make sure that adequate supplies are available and teams are given an accurate list of room assignments.
Scheduling may require special effort to accommodate team members getting the same days off.

LEADERSHIP:

For teamwork in housekeeping to be successful, the department leader, that is, the executive housekeeper needs to be an inspiring role model as a team player as well as an effective leader. The leader of any group can help to build its members into a well-knit team by sharing vision, goals, and strategies with them. Leadership is the capacity to frame plans that will succeed and the faculty to persuade others to carry them out in the face of difficulties. Leadership quality in a manager makes people look up to him/her for advice, feel motivated to work for and respect the manager, and be loyal to the manager. An executive housekeeper who can mobilize the trust and support of the staff achieves great heights. Some executive housekeepers who are good planners and organizers fail to achieve results because they are not effective as leaders. An executive housekeeper who is a good leader will ensure the following activities:

Draft a compelling vision
Communicate passionately
Get cooperation from others
Inspire and pull employees towards goals
Provide direction and momentum
Be assertive if necessary
Learn from other leaders
Make decisions in line with the vision
Get feedback
Command and not demand respect and loyalty
Do some self evaluation as well

Different leadership styles may be used by the executive housekeepers. Some distinctly make people work by force or order; others join the group and initiate activity; still others use persuasion; while some, by their pleasant and endearing manner, generate the enthusiasm for work and achieve goals in the best possible manner. An executive housekeeper who is an effective leader uses all these styles to different extents, according to the nature of the decisions to be made and as the situations demands.

Styles of leadership:

Autocratic: imposes own decision with/without explanation to subordinates
Participative: decision made after prior consultation with subordinates
Democratic: joint decision arrived at
Laissez faire: decisions taken by delegation

(H.) Training in HKD, devising training programmes for HK staff:-

Training is the overall enhancement of human ability by developing knowledge, skills, attitude, and behavior in order to achieve individual goals. Training relates not only to new employees, but is an ongoing process for the entire team. Training is effective only when the knowledge gained is applied at work and tested for usefulness.

The first step in training is to assess the need for training in the department.
The second step is to identify areas in which training is required and list them according to priority.
The third step is to determine what type of training is needed in each area.
The fourth step is to plan the training programme and set time periods for implementing them.
The fifth step is to evaluate the programme.

Benefits of training:-

New employees learn in a comfortable atmosphere.
New employees understand the importance of the job and the expectations to be met.
Existing employees improve their work performance.
Flexibility is incorporated due to cross-training.
The incidence of accidents is reduced and safety is enhanced.
Reduced expenditure on maintenance of machines results.
Employees are motivated and their job satisfaction improves.
Employees and overall productivity improves.
Employees turnover is reduced.
The executive housekeeper gets more time for management activities.
Standards and quality of work improve.
Supervision improves.
More profits flow in due to better business.

Types of training:-

Induction training- This is carried out when an employee is new to the organization and has to learn the required knowledge, skills, and attitude for his new position.

Refresher training- This is carried out when an old employee has to be re-trained to refresh his/her memory.

Remedial training- This is carried out for old employees when there is a change in the present working style, which may be related to a competitive environment, technological changes, or guest expectations.

Cross-training- This training enables employees to work in departments other than their speciality in periods of staff shortage.

On-the-job training- This type of training takes place while a trainee is working on a daily schedule. The trainee in this case is under the guidance of a trainer or a 'buddy '. As a part of on-the-job training in housekeeping, the new employees may be instructed in topics such as

The use and care of equipment,
The use and storage of cleaning agents,
Setting up of the room attendant's cart, and
Linen, laundry, and uniform-handling procedures.

Simulation training- In simulation training for housekeeping, an un-rented model room may be set up and used to train several employees. The advantage of simulation training over on-the-job training is that the training process may be stopped in between, discussed again, and repeated if required for reinforcement. The trainee here does not have to prepare the room for guest occupancy.

Off-the-job training- Off-the-job training takes place away from work, in a classroom, by means of workshops, demonstrations,lectures, discussions, seminars, audio-visual presentations, case studies, and role-playing. Some topics for instruction may be:

Controlling expenses
Ways to meet standards
Demonstration of new equipment
Stress management

Methods/Techniques used commonly in Hospitality training:-

Role play
Demonstration
Case study
Management games
In-basket exercise
Lectures
Video presentation
Self-study

(I.) Inventory level for non-recycled items:-

There are two types of inventories:-

Recycled inventories- These are for items that have relatively limited useful lives, but are used over and over again in housekeeping operations. Recycled inventory items include linen, uniforms, most machinery and large pieces of equipment, and guest loan items such as hot-water bottles, heating pads,irons, ironing boards,and so on.
Non-recycled inventories- These, on the other hand, are for items that are used up repeatedly during the course of routine housekeeping operations. Items of non-recycled inventory include most guest amenities, cleaning supplies, and smaller pieces of equipment such as brooms,mops,cleaning cloths, and so on.

To maintain the inventory levels,the executive housekeeper needs to determine the par level for each inventory item.

Determining the Par Levels:-

'Par' here refers to the standard quantity (or numbers) of each inventoried item that must be on hand to support daily, routine housekeeping operations.

Par levels are determined differently for the two types of inventories.
Inventory levels for recycled items are measured in terms of a par number. The par number is a multiple of the standard quantity of a particular inventory item that must be on hand to support day-to-day housekeeping operations.
In the case of non-recycled inventory items, the par number is the range between two figures: a minimum inventory quantity and a maximum inventory quantity.
The minimum inventory quantity refers to the lowest number of purchase units (items per use) that must be in stock at any given point of time. The on-hand quantity for a non-recycled inventory should never fall below this figure. The minimum quantity figures are established based on the rate of consumption of a particular inventory item over a certain period. The following formula may be used:

Minimum quantity = Lead-time quantity + Safety stock level

The lead-time quantity is the number of purchase units that are used up between the time that a supply order is placed and the time that the order is received in hand.
Safety stock level is the number of purchase units that must always be on hand in case of emergencies, damages,delays in delivery, and so on, so that daily operations and functioning of the department are smooth even in emergencies.
The maximum inventory quantity, on the other hand, refers to the greatest number of purchased units that should be in stock at any given point of time. Storage space,the cost of the item, and its shelf life ('best before' date) are certain factors that must be kept in mind when establishing the maximum inventory level for a non-recycled inventory item.

(J.) Budget and budgetary controls:-

BUDGET

A budget is a plan by which resources required to generate revenues are allocated.
A budget is a plan which projects both the revenues the hotel anticipates during the period covered by the budget and the expenses required to generate the anticipated revenues.

Types of Budgets:-

(I) Categorized by Types of Expenditure-

Capital Budget- Capital expenditure budgets or CAPEX budgets allocate the use of capital assets that have a life span considerably in excess of one year- these are assets that are not normally used up in day-to-day operations. Furniture, fixtures ,and equipment (FFE) are typical example of capital expenditures. Capital expenditures in the housekeeping department may include room attendant's cart, vaccum cleaners,general floor machines, carpet shampoo machines, sewing machines, and laundry equipment. The hotel building itself is also a capital asset.
Operating Budget- Operating expenditure budgets or OPEX budgets forecast expenses and revenues associated with the routine operations of the hotel during a certain period. Operating expenditures are those costs the hotel incurs in order to generate revenue in the normal course of doing business. In the housekeeping department, the most expensive operational cost is the salaries and wages or labour costs. The cost of all non-recycled inventory items, such as cleaning and guest supplies, are also operational costs.
Pre-opening Budget- These force the planning necessary for the smooth opening of a new hotel. These budgets allocate resources for opening parties, advertising, generation of initial goodwill, liaisons,and PR. Pre-opening budgets also include the initial cost of employee salaries and wages, as well as supplies, crockery, cutlery, and other items.

(II) Categorized by Departments Involved-

Master Budget- These represent the forecasted targets set for the whole organization and incorporate all incomes and expenditures estimated for the organization.
Departmental Budget- Each department of the hotel forwards a budget for its estimated expenses and revenues to the financial controller. For instance, there would be a housekeeping budget, an F&B budget, a maintenance budget, and so on. In fact,the rooms division budget is in this case the combined budget of the front office and the housekeeping department.

(III) Categorized by Flexibility of Expenditure-

Fixed Budget- These budgets remain unchanged over a period of time and are not related to the level of revenues. Such budgets include budgets for advertising and administration.
Flexible Budget- These budgets predetermine expenditure based on the revenue expected and differ with different volumes of sale.

ADVANTAGES OF BUDGET AND BUDGETARY CONTROL–

Provides an overall picture of the result expected from the proposed plan of operations.
It serves as a guide to various executives who are responsible for the various departments of the hotel.
Maximizing efficiency which is achieved by avoiding wastage and loss of manpower and materials.
Budgetary control ensures co-ordination and central control.
Helps to monitor performance since failure to achieve the budgeted forecast will be a measure of the overall performance for the hotel and its employees.

BUDGETARY CONTROL

For controlling budget, two variances of budget, revenue and expenses are assessed. In favorable condition actual revenue should exceed budgeted revenue and actual expenses should be lower than the budgeted revenue.

Since housekeeping is not a revenue generating department, responsibility of this department in achieving the financial goal is to control the departmental expenses.

Controlling operating expenses in housekeeping-

Effective documentation-Usage, rates and costs of all inventory items should be documented.
Proper scheduling of staff-Hiring of staff according to the actual occupancy for a specified period.
Right purchasing-To control expenses housekeeping department co ordinates with the purchase department and decides the right quality, right quantity, right price, right source of supply, and right time for purchasing.
Efficient training and supervision-Training for new employee and training on new methods for older employee is very helpful for controlling expenses. Efficient training can increase the productivity and performance standards which results decrease in housekeeping expenses.

(K.) The Budget Process:-

A budget is a plan. It projects both the revenues the hotel anticipates during the period covered by the budget and the expenses required to generate the anticipated revenues. The executive housekeeper’s responsibility in the budgetary process is two-fold. First, he/she is involved in the planning process that leads to the formulation of the budget (what expenses the housekeeping department will incur in light of forecasted room sales). Second, since the budget represents an operational plan for the year, the executive housekeeper ensures that the

department’s actual expenses are in line with budgeted costs and with actual occupancy level. Budget may need to be adjusted in light of unforeseen or changing circumstances.As a plan, a budget is also a guide. It provides the managers with standards by which they can measure the success of the operations. By comparing actual expenses with allocated amounts, the executive housekeeper can track the efficiency of housekeeping operations and monitor the department’s ability to control it’s expenses within the prescribed limits.The operating budget outlines the financial goal of the hotel. It relates operational costs to the year’s expected revenues. The yearly operating budget is broken down into budgets for each month of the financial year.

(L.) Planning Capital Budget:-

Capital expenditure involves large sums on such investments that have a long term impact. It is thus natural that decisions on these items are critical and should be made by a group involving the general manager, financial controller and executive housekeeper.

Decisions to incur capital expenditure in housekeeping arise from:

Renovation of rooms or public areas.
Addition of rooms or public areas.
Replacement of equipment, furnishings, carpets, etc.
Introduction of automation in the department.

Having received a decision from management on capital expenditure the housekeeper should observe the following steps:

Supplier identification, receiving competitive quotations, selection of a supplier and finally purchase of the product taking into consideration freight and transport, and handling charges.

The types of items that are provided for in the capital budget are:

Large equipment and machines.
Furniture, fixtures and fittings in rooms and public areas.
Linen and soft furnishings.
Uniforms.
Special project (construction of new rooms etc.)
Miscellaneous- It is quite normal to have a certain amount of money allocated under such a heading in order to make provision for emergencies e.g. alterations required by law etc.

(M.) Planning Operational Budget:-

The first step in planning the operating budget is always to forecast room sales, which generates the revenue for operating the various departments. Most of the expenses that each department can expect are most directly related to room occupancy levels. This is especially true of the housekeeping department where salaries and wages, and the usage rates for both recycled and non-recycled inventories are a direct function of the number of occupied rooms. The concept of “cost per occupied room” is the major tool the executive housekeeper uses to determine the levels of expense in the different categories. Once the executive housekeeper knows predicted occupancy levels, expected expenses for salaries and wages, cleaning supplies, guest supplies, laundry and other areas can be determined on the basis of formulas that express costs in terms of ‘cost per occupied room.’ By specifying expense levels in relation to room sales, the budget actually expresses the level of service the hotel will be able to provide. In this regard, it is important for department heads to report how service levels will be affected by budget adjustments. This is especially important for the executive housekeeper. If the top management tones down the operating budget submitted by the executive housekeeper, the executive housekeeper should clearly indicate what services will be eliminated and downgraded in order to achieve the specified reductions.

The various heads of expenditure that are normally reflected in a housekeeping operating budget are:

Cleaning and guest supplies
Office stationery and postage
Tailor shop expenses
Small cleaning equipment like brooms and brushes
Salaries and wages-includes retirement, benefits, bonus, allowances, incentives, etc.
Heat, light, and power-air conditioning, heating, electricity consumption
Repairs and maintenance
Pest control
Laundry expense
Horticultural expense: includes florist expense (flowers, oasis and vases) and landscaping expense (seeds, manure, saplings and flower pots)
Contract cleaning

(N.) Operating Budget- controlling expenses- income statement:-

Using the operating budget as a control tool:

An operating budget is a valuable control tool to monitor the course of operations during a specified period. Controlling expenses in the housekeeping department means comparing actual costs with budgeted amounts and assessing the variances. When comparing actual and budgeted expenses, the executive housekeeper should first determine whether the forecasted occupancy levels were actually achieved. If the number of occupied rooms is lower than anticipated, a corresponding decrease in the department’s actual expenses should be expected. If occupancy levels are higher, then there will be a corresponding increase in expenses. In either case the expense variation will be proportioned to the variation in occupancy level. The executive housekeeper’s ability to control housekeeping expenses will be evaluated in terms of his/her ability to maintain the cost per occupied room expected for each category. Small deviations between actual and budgeted expenses can be expected and are not a cause for alarm but serious deviations require investigation and explanation. The executive housekeeper needs to formulate a plan to correct the deviation and get the department back ‘on budget.’ E.g. a re-examination of staff scheduling procedures or closer supervision of standard practices and procedures may be necessary. Other steps might include evaluating the efficiency and costs of products being used in the housekeeping department and exploring the alternatives. Even if the executive housekeeper finds that the department is far ahead of the budget it is not necessarily a cause for celebration. It may indicate a deterioration of service levels that were built into the original budget plan. Any serious deviation from the plan is a cause for concern and requires explanation. Identifying and investigating such deviations on a timely basis is one of the most valuable functions an executive housekeeper can perform in terms of the operating budget.

Controlling expenses: It means ensuring that actual expenses are consistent with the expected expenses forecasted by the operating budget. There are basically four methods the executive housekeeper can use to control housekeeping expenses.

Accurate record keeping: It enables the executive housekeeper to monitor usage rates, inventory costs and variances in relation to standard cleaning procedures.
Effective scheduling: It permits the executive housekeeper to control salaries and wages and the costs related to employee benefits. The housekeeping employees should be scheduled according to the guidelines in the property’s staffing guide which is based on the level of room occupancy. Thus it ensures that personnel costs stay in line with the occupancy rates.
Careful training and supervision: It should not be overlooked as a cost control measure. Effective training programmes that quickly bring new recruits up to speed can significantly reduce the time during which productivity is lower than the standards set for more experienced personnel. Close and diligent supervision, as well as refresher training can ensure that performance and productivity standards are met and may even bring about improvements.
Efficient purchasing: Efficient purchasing practices afford the executive housekeeper the greatest opportunity to control the department expenses and to ensure that the hotel’s money is well spent and the maximum value is received from products purchased for use. The executive housekeeper must set a proper ‘par’ for the various inventories (recycled and non-recycled), and must have a proper purchasing system with the quantities and specifications submitted to the purchasing department. The executive housekeeper needs to periodically re-evaluate the suitability of existing products for their intended purposes. Alternative products should be investigated and compared to existing products in terms of performance, durability, price and value. By comparing the cost per occupied room achieved by alternative products, the executive housekeeper can evaluate which products yield greater cost savings and base purchasing decisions accordingly.

Operating budget and income statement: An operating budget is identical in form to an income statement. The differences are:

OPERATING BUDGET	INCOME STATEMENT
It is a forecast or plan for what is to come.	It is a report of what has actually occurred.
It predicts or anticipates what the income statement will actually show at the end of that period often referred to as “pro forma income statement”.	It expresses the actual results of operations during an accounting period identifying revenue earned and itemizing expenses during that period.

Since a statement of income reveals the bottom line-the net income for a given period-it is one of the most important financial statements used by the top management to evaluate the success of operations. Although the executive housekeeper may never directly use the hotel’s statement of income, this statement relies in part on detailed information supplied by the housekeeping department. The revenue generated by the rooms division is often the largest single amount produced by revenue centres within a hotel since housekeeping is a major source of expense incurred by the rooms division; the executive housekeeper plays an important role in the hotel’s overall financial performance. The hotel’s statement of income shows only summary information. More detailed information is presented by the separate departmental income statements prepared by each revenue centre. These departmental income statements are called schedules and are referenced on the hotel’s statement of income. The operating budget under which the executive housekeeper operates takes the form of monthly income statements for the rooms division. Projected revenues and expenses for each month of the budgeted period will represent the rooms division operational plan. The executive housekeeper will be held accountable for controlling the expense areas that fall within the housekeeping department’s area of responsibility. As the budgeted period progresses, monthly income statements will be produced that show the actual amounts alongside the amounts originally budgeted.

Checklist for preparing a budget

Know the present position of the hotel.
Review the previous year’s financial statements.
Look at the major sports events, festivals and holiday events for the year ahead.
Check for any expansion plans, redecorating, raising standards, increase/decrease of staff.
Check on the supplies needed-consider automation, new technology and better products.
Take each cost heading separately and compile to form the final budget.
Plan for practical goals and do not over budget.
Take into account the inflation percentage. Prepare by looking at past experiences, present knowledge and judgement of what is likely to happen.
Identify areas which can or cannot be controlled.
Review wages and salaries, operating costs and expenditure that is variable, semi-variable, and fixed.
Plan with the following year’s tax policies in mind. Take into consideration any new laws or regulations or policies that may come into effect.
Prepare throughout the year for the next year’s budget noting changes and scope for improvement.
Make decisions of what is more cost-effective:

Part time or full time staff.
Cost of staff and how often they may be required.
The cost of servicing a room i.e. overtime versus extra staff.
Contract cleaners versus own staff.
In-house laundry against contract.
Use of cleaning agents as per dilution rates.

(O.) Purchasing Systems- methods of buying:-

Purchasing is a process in which includes buying of materials and equipments needed by various departments of an organisation to ensure continuity in product production and supply of essential services to the guest. Therefore it is a very important and challenging function and has to be carried out efficiently to meet the purchasing requirements of the organization. Purchase department must be highly responsible to the organization needs in terms of quality, price, and delivery. The expenses for housekeeping purchases are planned in advance mainly in the form of a Capital Budget or an Operating Budget. The purchase can be of local or imported item. The housekeeping department generates the indents of non-stock items. Stock items are the regular operating supplies such as soap, shampoo, stationeries, and cleaning supplies. Non-stock items are non-consumable items such as crystal vases for flower arrangement. Efficient purchasing practices can make a significant contribution to the housekeeping department. Purchasing includes the process of buying, learning of the needs, identifying purchase locations, selecting best supplies, negotiating for best price, and other relating tasks such as to ensure deliveries in time. Purchasing is described as an art since it requires talent and satisfaction in judgement i.e. judging the right combination of colour, shape, size, and consistency of item.

Although different properties have different procedures for processing and approving purchases the evaluation of what is needed for the housekeeping department is decided by the Executive housekeeper.

Principles of purchasing:

There are five primary principles of purchasing that need to be upheld by the Housekeeping and the purchase department.

Right quality: The housekeeping department is responsible for providing the guests with a clean, comfortable, and safe environment as well as meet and exceed the guest’s expectations. In this regard the department needs to buy the best products. Value for money is the factor in each of the product supplies to the guestroom and public areas. The entire range of items has to meet the standards and specifications determined by the department and the hotel management.

Right quantity: Placing a purchase order of the right quality is of utmost importance for any organisation. Suppliers usually offer huge discounts large quantities but that should not influence the department’s decision. The following factors should be kept in mind while ordering the right quantity of material:

The cost of the order being placed
The cost of storage and carrying charges for holding stocks
Quantity discount
Stock level and order point
Buffer stock
Budgetary controls

Right price: One of the major concerns for both the housekeeping and purchasing department is to get the supplies at the right price. An in-depth knowledge of the market is vital to make sure that the right price is being paid i.e. the payment corresponds to the exact value of the material being purchased. While calculating the right price ex-showroom the terms of payment should also be attended.

Right time: The material should be made available at the right time. Lead time, which is the period between the indent originating from the housekeeping department and the time the material is ready for use, should be minimal. The total lead time which includes the supplier lead time plus the internal processing, clearance receipt, and inspection time should be as low as possible to work on lower inventory level. The time should also be right as regard ensuring immediate availability of a particular product in the market.

Right source of supply: The right source of supply is critical to the Executive Housekeeper. If the source of supply is correct, right quality, quantity, price, and time are a natural consequence. The selection of the ideal supplier is crucial for both the housekeeping and the purchase departments in which they are aided by:

Knowledge and experience
Catalogues, internet, etc
Hotel supplies directories
Salespersons
Trade associations and association companies

Types of purchasing:

Various types of purchasing methods are used in hotels. A single purchasing activity may also be a combination of several types. Some of the methods are:

1. Formal purchasing/competitive bid buying: Formal quotations are invited from sellers against the written specification for each item to be purchased. These requests for bids may be made through newspapers or other publications that are widely distributed or they may be passed to interested sellers who may be contacted over the phone. The usual practice is to accept the quotation of the lowest bidder unless the products fail to meet the specifications.

2. Wholesale buying: In this method of purchasing the contract is signed with a wholesaler for the purchase of items at a specific price. For the future the agreement specifies the intervals between deliveries for the contract period.

3. Negotiated buying: this method involves negotiation between the buyer and the seller regarding the price and quantities. This method is generally used for items that are in limited supply where both the buyer and the seller are keen that the product be picked up quickly. In this case the buyer contacts the seller directly.

4. Contract purchasing: This method of purchasing assist the buyers and the sellers to improve the re-ordering of items that are repeatedly called for with minimal administrative expenses. This method is similar to blanket order purchasing except that the agreement is long term and the supplier are therefore not changed frequently. The rate of usage and frequency of ordering over the contract period need to be known under the system contract. The buyer receives only those brands which are produced or sold by the contractor. This method of purchasing is most commonly used for the purchase of housekeeping supplies.

5. Blanket order purchasing: A blanket order is an agreement to provide a specific quantity of listed items for a period of time at an agreed price if the price is not settled at the time of placing the order. A method of determining it is included in the contract. The blanket order method is best for items that are required in small quantities but more frequently and where the usage rate cannot be accurately forecasted.

6. Stockless purchasing: In this case the buyer does not keep the stock of goods ordered. The supplier warehouses them for the buyer instead. The inventory is thus owned by the supplier.

7. Purchase by paid reserve: In this method money is paid in advance for commodities to ensure continuity of supply throughout the year.

8. Total-supply purchasing: In this type of purchasing all the required items are supplied by a single supplier. This helps in reducing the paperwork and negotiations need to be done with only one person.

9. Cost-plus purchasing: In this method of purchasing a supplier buys all the commodities and provides them to the housekeeping department. The supplier is given a small commission for this.

10. Centralized purchasing: This type of purchasing is done mainly by the chain hotels. They purchase items for all their main properties together. This method helps them to source the items at a cheaper price as the quantity of the order is more resulting in economy of volume.

11. Standing order purchasing: In this method daily supplies are fixed for perishable items such as flowers or groceries.

12. Cash and carry method: This is the method of purchasing where the items are purchased from supermarkets so that the prices are competitive. There are no minimum order level orders of certain items in case of non-availability of delivery services.

13. Purchasing from van sales: This method is rarely used for purchasing in the housekeeping department. In this method purchasing is done from mobile shops which move from one place to another.

14. Weekly/fortnightly purchasing: In this type purchasing is done only weekly/fortnightly. This ensures regular availability of the items and makes the suppliers prices more competitive.

15. Daily market purchasing/petty cash system: In this method of purchasing item quantities in the store are checked on a daily basis and only items falling short are purchased. This method operates as a petty cash system. It is effective for purchasing small order from local market in exchange for bill so that a cash payment is made.

16. Cash-on-delivery buying: The ordering system involves payment on acceptance of delivery. The order may be placed over the telephone or through the internet.

17. Cheque-payment ordering: This is a purchase order and draft system. It is a combination of the order and a blank cheque for payment. Besides the products specification the order also contains delivery instructions, bank account number, unit price quantity, discounts if any, and terms of payment.

18. Auction buying: This method of is useful for purchasing furniture and equipment that are not obsolete. Sometimes certain export shipments that were rejected by the originally intended buyer are also auctioned to other buyer.

Methods of purchasing:-

There are five essential methods of purchasing:

Bulk Purchasing
Hand to Mouth Purchasing
Speculative Purchasing
Blanket Purchasing
Reciprocate Purchasing

Bulk Purchasing – Bulk Purchasing is the most economical form of purchasing. But at the same time, it involves more capital investment of overstocking and high storage costs owing to likely damages. Bulk purchasing is an ideal option for making large quantity of purchase for the future.

Hand to Mouth Purchasing – This purchasing is also widely known as Zero Stock Buying, which means that there are no purchase transactions done until a demand arises, and accordingly the purchase of quantities is decided. This method is mostly used in case of emergencies, or to the goods used occasionally and not taken into stock. Further, using the method avoids any blockage of capital investment in materials, carrying costs, obsolescence and wastage of materials. However, the only drawback in this method is that there is fear of production halts due to paucity of materials, or the materials then need to be procured at higher costs.

Speculative Purchasing – In cases when the manufacturers prefer to purchase materials in large quantities than required in manufacturing process, it is planned such that the surplus can then be sold off at higher prices for earning profits. Speculative purchasing is popular in cases of extremely low prices when it is expected that these materials will fetch better prices in the upcoming period. While one can benefit from speculative purchasing method that it can give you huge speculative profits, it also blocks large amount of capital and you need large storage space and as such, there are risks of obsolescence, etc.

Blanket Purchasing – The method involves ordering items of same group under one category; the blanket purchase orders can be utilized for purchasing frequently purchasing items or services, and have been designed such to effectuate the procurement processes.

Reciprocate Purchasing – In this form of purchasing, an arrangement is entered into between two or more organizations that purchase each other’s goods and services.

(P.) Stock Records- Issuing and control:-

Reason for developing an efficient and effective control system are as follows:

Shortage or poor stock rotation will reduce standards and therefore directly reduce revenue.
When supplies are lacking items may need to be borrowed from other sections.
Excessive stock may constitute a safety risk and reduce cash flow.
Losses may occur will must be identified, caused established, and controls implemented.
Good storage control is necessary ti implement health and safety procedures eg. Care for substances hazardous to health safe procedures.
Monitoring of use and product evaluation is better achieved.
Budgetary control is facilitated.
Standardization of quality is facilitated.

STOREKEEPEER: The storekeeper plays a very important role in the control of stock and the smooth functioning of the day to day operations. The storekeeper must have:

A good technical knowledge of the products especially the shelf life of the products.
The ability to deal with suppliers, own staff, and personnel from other departments as well as the management.
The ability to count and measure accurately and keep up-to-date record on costs and level.
Knowledge of up-to-date legislation e.g. health and safety legislations.
Absolute honesty and trustworthiness in all dealings.

Stores and stock control involves:

Ordering
Delivery of goods
Storage

STOCK RECORDS:

An essential part of the storage function is the maintenance of clerical records to record all stock movements accurately in and out of the stores. The system used will depend on the type and size of the establishment. Upon arrival at the stores all goods must be recorded and added to the original stock “goods received books”.

(1.) Bin card: It is a record of all the receipt and issue of a particular item and is either attached to the particular books or kept in a file.

(2.) Monthly consumption sheet: to find out the total of items used over a period of time or to compare usage rate the information can be taken from the sheet.

Stock taking: It may be done monthly or quarterly or yearly depending on the policy of the establishment. It is an essential process to prove the accuracy of the stock records and should be carried out by the departmental head or an external auditor. In order to carry out stock taking it is necessary to suspend all movement of goods during the count and to make sure that all goods are checked and accounted for. Any discrepancy should be noted and investigated wherever necessary.

Issuing: The system of issuing goods from the stores in various departments will vary but a right system of issuing should be in operation. All issues should be made against requisition or specification for ease of control. In various departments forms items should be checked and weighed accurately before the order is made ready for dispatch. In some establishments stores may be issued daily, weekly, or monthly by a topping up system to meet a required basic stock imprest system.

New for old, or full for empty: Whichever system is used spot checks should be made by the supervisor to check usage rate and prevent wastage and pilfering. Staff should be discouraged from ordering more than is actually required, and issue should be permitted only on the stated day or time unless there is an emergency.

Key Terms:-

Job Breakdown- A form that details how the technical duties of a job should be performed.
Job Description- A job description is a detailed document identifying all the likely duties of a job position as well as reporting relationships, additional responsibilities, working conditions, and any know-how necessary about equipment and materials.
Job list/ task list- A list identifying all the key duties of a job in order of their importance.
Job Specification- A job specification is a document detailing the minimum qualities or traits required by an individual to perform a particular job.
Job Procedures- Also referred to as standard operating procedures (SOPs) or 'work cards' ,these specify the way in which a task is to be performed.
Induction/ Orientation- It is guided adjustment of a new employee to the organization, the work environment, any the job. The process communicates the organization's basic philosophy, policies, rules, and procedures.
Performance standard- A required level of performance to meet quality standards set by the organization.
Productivity Standard- An acceptable amount of work that must be done within a specific time frame according to an established level of performance.
Work Schedules- Work schedules list the actual work to be undertaken by particular employees during particular periods of the day.
Zero-base budgeting- Zero-base budgeting refers to hiring employees while taking into account the actual occupancy for a specified period of time.
Straight shift- This type of shift extends for period of 9 hours with a break of 1 hour .
Graveyard Shift/ Night Shift- A standard night shift is actually a type of straight shift that normally starts from 10 p.m. and concludes at 7 a.m.
Break shift/ Split shift- This type of shift is split into two sessions that add up to a regular shift of 9-10 hours. This includes a break of approximately 3-6 hours.
Rotating shift- An employee may be given a particular shift for a week or two, and then changed over to the next shift. This rotation is done to ensure that all employees get the fair share of all the shifts.
Flexi-time- In this kind of scheduling, an employee can work any time according to his/her convenience and is paid accordingly.
Compressed work schedules- An employees working 9 hours a day and 6 days a week puts in 54 labour hours per week. If the employees wishes, these 54 hours can be compressed within 5 days a week, that is,the employee would be required to work nearly 11 hours a day and get 2 days off to compensate.
Ergonomics- The study of people in relation to their working environment.
Training- Training is the overall enhancement of human ability by developing knowledge , skills, attitude, and behavior in order to achieve individual goals.
SOP (Standard Operating Procedure) - A document of a standing nature that specifies a certain method of operating or a specific procedure for the accomplishment of a task. SOPs can be developed for all important housekeeping activities and tasks.
FFE - Furniture, Fixtures ,and Equipments.
SWB - Salaries , Wages, and Benefits.
GRN - Goods Received Note.
Mentoring - Mentoring is a relationship between two people with the goal of professional and personal development.
Tight schedule- A very busy schedule, i.e., having a lot of things to do in a short amount of time .
Scald- To burn somebody/something with very hot liquid.
Stocktaking- The physical verification of inventory items by counting up stocks of all items of periodic intervals. Stocktaking is also termed as 'conducting inventory '.

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Housekeeping Notes Sem 5