University Assignment: Room Division Operations Management Analysis

This assignment provides a comprehensive analysis of room division operations management, addressing key aspects such as labor cost calculations based on occupancy rates, inventory management of linens and guest supplies, and budget analysis for various departments like cleaning, laundry, and guest supplies. The solution includes detailed calculations for staffing requirements at different occupancy levels, inventory tracking with shrinkage analysis, and budget variance analysis to identify areas of overspending and underspending. It also covers the role of an executive housekeeper in budget planning. The assignment demonstrates an understanding of operational efficiency, cost control, and financial planning within the context of a hotel's housekeeping and room division.

Room Division Operations Management
Name of the Student
Name of the University
Author Note

Table of Contents
Question 1:.......................................................................................................................................3
A).................................................................................................................................................3
B).................................................................................................................................................4
Question 2:.......................................................................................................................................6
A).................................................................................................................................................6
B).................................................................................................................................................6
C).................................................................................................................................................8
Question 3:.......................................................................................................................................8
Question 4:.......................................................................................................................................9
Question 5:.......................................................................................................................................9
Question 6:.....................................................................................................................................11
Question 7:.....................................................................................................................................14
Question 8:.....................................................................................................................................16
References......................................................................................................................................21

Question 1:
A)
Particulars Occupancy
60% 80% 100%
No. of Rooms (Mentioned in the question) 250 250 250
No. of Rooms Occupied (rooms*occupancy
rate)
150 200 250
Room Attendants (AM)
Labour Hrs (In Hrs) 75.00 100.00 125.00
No. of staff (In Nos.) 6.25 8.33 10.42
Turn Down Attendants (PM)
Labour Hrs (In Hrs) 25.00 33.33 41.67
No. of staff (In Nos.) 2.08 2.78 3.47
House Persons (AM)
Labour Hrs (In Hrs) 36.00 48.00 60.00
No. of staff (In Nos.) 3 4 5
In this case the rate of occupancy and the rooms available in numbers has been provided so the
calculation is the total rooms occupied= Rate of occupancy % x Available number of rooms. As
the standard level of productivity for the room attendant of the AM shift given for cleaning one
guest room is 30 minutes we need to compute the same in hour by dividing the same by 60 as
60minutes make an hour. Thus, the hours of labour will be calculated by multiplying the
occupied rooms by the converted minutes into hours i.e. 30 minutes in this case. Here it has been

assumed that day and night shift has a pattern of 12 hours working in total. This has been done as
there is no clear mention of total hours in the given question. Hence, by looking in the pattern
indicating shift for day, we have considered a total of 12 hours for both day and night shift each.
Thus, the total requirement of room attendants will be the labour hours divided by 12 hours. As
the standard level of productivity for the Turn down attendant of the PM shift given for cleaning
one guest room is 10 minutes we need to compute the same in hour by dividing the same by 60
as 60minutes make an hour. Thus, the hours of labour will be calculated by multiplying the
occupied rooms by the converted minutes into hours i.e. 10 minutes in this case. Like Note 3, the
assumption of 12 hours will be considered and thus, the total number of the attendants would be
calculated by the labour hours divided by 12 hours. Also, in case of house persons it has been
provided that for every 50 persons, there is a requirement of one day shift person i.e. 12 hours as
per assumption. Thus, number of staffs will be the occupied rooms divided by 50 and the labour
hours in number will be 12 hours multiplied by the number of staffs.
The No. of Rooms Occupied changes from the Occupancy Percentage and so Changes the No. of
Labour Hrs & No. of Staffs (Room Attendants, Turn Down Attendants & House Persons) at the
Occupancy Rate of 60%, 80% & 100%. The No. of Labour hours depends on the time required
to attend one Guest Room, same way the No. of staffs required depends on the Labour Hrs and
the Working Hrs of each Staff and each of the factor depends wholly on the Occupancy
Percentage of the Hotel. The No. Staffs calculated in Step 3,5 & 6 are in fraction, rounded off to
the next Number since Humans cannot be in fraction and hence mentioned as approx in brackets.
B)
Particulars 60% 80% 100%
Room Attendants (AM)
Labour Hrs (As per 1A
Above)
75.00 100.00 125.00
Rate (Given) $ 25/hr $ 25/hr $ 25/hr

Labour Expense $ 1,875.00 $ 2,500.00 $ 3,125.00
Turn Down Attendant
(PM)
Labour Hrs (As per 1A
Above)
25.00 33.33 41.67
Rate $ 20/hr $ 20/hr $ 20/hr
Labour Expense $ 500.00 $ 666.67 $ 833.33
House Person (AM)
Labour Hrs (As per 1A
Above)
36.00 48.00 60.00
Rate $ 16/hr $ 16/hr $ 16/hr
Labour Expense $ 576.00 $ 768.00 $ 960.00
For Room attendants, labour expenses= Rate per labour given i.e. $25 per hour multiplied by the
labour hours that had been calculated in 1A above. Similarly, for the labor expenses in case of
Turn down attendants and house persons will be rates i.e. $20 and $16 respectively multiplied by
the labour hours that had been calculated in 1A above.
The Labour Expenses wholly depends on the No. of Labour Hrs worked and Rate per Labour Hr.
Since the Labour Hrs Increases with the increase in Occupancy Rate of 60%, 80% & 100%, the
Labour Expenses would increase with the increase in Labour Hrs. More the Occupancy rate,
More would be the Revenue and hence more profit would be accruing to the Hotel.

Question 2:
A)
Particulars King
Size
Queen
Size
Single
Bed
Large
PillowCase
Standard
Sized
25 Suites 150 150 0
200 Double Rooms 1200 1200 0
100 Twin-bedded Rooms 1200 0 600
Opening Inventory 150 1200 1200 1350 600
Given in the question: No. of Bed Sheets used for each Bed is 2
No. of Large Pillow Cases used in Suites & Double Rooms is also 2
No. of Standard Sized Pillow Cases used in Twin Bedded Rooms is 1
While, the Par needed for all items is 3
Therefore, the total king size sheets will be 25x2x3 and large pillow cases will be 25x2x3
The total queen size sheets will come to 200x2x3 and large ones will be 200x2x3
There are 2 beds in the twin bedded rooms and hence total single bed sheets will be 100x2x2x3
and the standard sized pillow cases will be 100x2x1x3
B)
Particulars King Size
Sheets
Queen
Size
Sheets
Single Bed
Sheets
Large
PillowCase
s
Standard
Sized
PillowCases
Opening Inventory 150 1200 1200 1350 600
Physical Inventory in
Rooms at the end of 3
100 400 400 450 200

months
Inventory in Laundry 20 310 320 260 200
Inventory in Floor
Pantry
10 210 210 410 70
Inventory in Soiled Bin 10 250 260 200 100
Discarded/Stained 5 8 6 10 15
Torn Sheets 3 2 4 8 5
Inventory at the end of
3 months
148 1180 1200 1338 590
Answer Yes,
Shrinkage
Yes,
Shrinkage
No
Shrinkage
Yes,
Shrinkage
Yes,
Shrinkage
There is opening inventory consisting of the total bed sheets and pillow cases for maintenance.
At the end of three months, the stock would come to the total of the room inventory+ floor
pantry+ discarded/ stained+ Soiled Bin+ Torn items. Where there is a case of inventory for more
than 3 months being lower than the opening stock, it becomes a case of Shrinkage. In cases
where the opening stock and inventory at end of 3 months is equal or in excess, it is a case of No
Shrinkage. It has been assumed that the soiled bin, torn, discarded and stained bed sheets and
pillowcases are usable as nothing has been mentioned.
Depending on the types of room, the No. of bed sheets and the No. of Pillowcases have been
answered. The Suites have King Size One Bed in each suite, the Double Rooms have Queen Size
one bed in each room whereas the Twin-Bedded Rooms have 2 Single Beds and hence the
question have been solved considering two single beds in Twin-bedded Rooms. This has been
considered taking the general approach of Hotels, as nothing has been specified in the question.

C)
Particulars King Size
Sheets
Queen
Size Sheets
Single Bed
Sheets
Large
PillowCase
s
Standard
Sized
PillowCases
Opening Inventory at
Par
150 1200 1200 1350 600
Inventory at the end of
3 months
148 1180 1200 1338 590
Order to be placed to
Supplier to bring the
inventory upto Par
2 20 0 12 10
In given case 2A) above, there must be order placed to the suppliers for bringing back the
inventory level i.e. for every items at least 3.
Question 3:
Date Particulars Openin
g
Purchase
s
(Add)
Issued
(Sales)
(Less)
Closing
1-May Opening Inventory in hand 112.00 - - 112.00
7-May Bottles issued 112.00 - - 6.00 106.00
13-May Bottles issued 106.00 - - 15.00 91.00
18-May Bottle broked (Unusable) 91.00 - - 1.00 90.00
20-May Bottles purchased 90.00 + 25.00 - 115.00
25-May Bottles issued 115.00 - - 20.00 95.00

Closing Inventory as on May 31 95.00
Question 4:
Cost of Guest Supplies
Particulars
Beginning Inventory as on May 1 $ 13,000
Add: Purchases for the month $ 2,500
Less: Closing Inventory as on May 31 $ 12,900
Cost of guest supplies Expenditure (13000+2500-12900) $ 2,600
In the given case, the opening stock is $13000, every month purchases is $2500 and closing
stock is $12900. Thus, the cost incurred on the guest supplies expenditure will be the opening
stock+ purchases of the month- the closing stock.
Question 5:
Particulars Cleaning
Supplies
Guest Supplies Laundry
Supplies
Linen
Replacements
Budgeted
Expenses(%)
(Given)
0.6 1.2 0.4 0.9
Budgeted
Expenses ($)
$
5,520.00
$ 11,040.00 $
3,680.00
$
8,280.00
Actual Expenses $ $ 7,200.00 $ $

incurred (Given) 6,020.00 5,500.00 8,100.00
Under/Over
Budget
Over Budget Under Budget Over Budget Under Budget
Under the
Budget
$ 3,840.00 $
180.00
Over the Budget $
500.00
$
1,820.00
The expenses for the Pre-Established Budget are given in percentage form for all four types or
categories. The same is calculated on $920,000 i.e. the revenue of the room. Thus, the Pre-
Established expenses are the revenue of room multiplied by the given percentage. Thus, cleaning
supplies is 920000x0.6%; Guest Supplies is 920000x1.2%, laundry and linen is 920000*0.4%
and 920000*0.9% respectively. Further, the under budget and over budget can be accessed by
comparison of the actual expenses and the pre budgeted ones. The over budget occurs when the
actual one exceeds the pre budgeted one. Further, under the budget means the difference
between the Pre-Budget Expense and the Actual Expense Incurred. Whereas, over the budget
depicts the difference between Actual Expense Incurred and the Pre-Budget Expense.
From the four categories of expenses, it can be seen that there is a difference in the budgeted
expenses and the Actual cost Incurred. The Variance could result into a situation of Over Budget
or Under Budget. There are 2 cases of Over Budget Situation and the rest 2 are the cases of
Under Budget Situation. Cleaning Supplies & Laundry Supplies are the cases of Over Budget
whereas Guest Supplies & Linen Replacements are the cases of Under Budget.
The Budget Expense of Cleaning Supplies is $ 5520 and the actual cost is $ 6020, the variance of
$ 500 is an Over Budget Situation, and also the budget expense of Laundry Supplies is $ 3680
and the actual cost is $ 5500 resulting in a variance of $ 1820 which is also an Over Budget

Situation, thereby meaning the guests in the hotel leaves the room more dirtier than actually
expected by the Hotel Authority. And on the Other hand, Guest Supplies & Linen Replacements
covers situations of Under Budget, thereby meaning the Hotel Authority provides the Guest
Supplies and the services of Linen Replacements lower than budgeted. Considering all the
situations together, the total Over Budget expense is $ 2320 & the total Under Budget expense is
$ 4020, hence Net under Budget Expense is $ 1700. So, the overall profit has increased as a
result of the net under budget expense.
Question 6:
Any budget plans help in keeping the track of the expenditure using the collected data
from the various sources which help the industry to grow more fruitfully. Executive housekeeper
plays a vital role in any budget preparation for industry. They are ones involved in making
strategies that can help them in making a budget for the coming years. This involves collecting
information from all the sources like room managers and general managers to execute the
planning properly. The budget which falls under the planned strategy helps the executive
housekeeper to ensure the budget cost remains under the radar and guides the managers to
execute the plans accordingly. Here are the lists of some methods that can be used by the
executive housekeeper to minimize the expenses.
Maintenance of Precise Data:
Maintaining precise data helps the executive housekeeper to track the handling cost,
materials costs, and production cost to ensure that it doesn’t exceed the budget plan. This helps
the executive housekeeper to plan out the strategies for the future to maximize the profit. The
executive housekeeper even surveys the different departments to track whether the proper
allocation of the budget is being executed or not. Keeping track of the data also ensures
necessary replacements to be done in the industry to avoid future disasters. Overspending of the

budgets is also tracked and put to stop if any is being done by the executive housekeeper. Even
the housekeeper has to put forward the details gathered by him to his seniors’ person. A
comparison can be done to the previously collected data so that they can rectify any faults in the
given time.
Effective Management:
The executive housekeeper looks after and manages all the wages of the workers
according to the worker's profit. The workers should be working according to the strategy made
by the concerned authority. The executive housekeeper should also manage the timings of the
workers so that one doesn’t clash with the other or look after any shortage of the worker. The
timing should be perfectly managed so that every room gets an adequate number of the worker
so that the guest does not face any problem. But the executive housekeeper shouldn’t give
specific times to the housekeepers to clean the rooms but must depend on clean types. By doing
these, one can track the time taken to clean each room and find out the problems being faced and
can be solved within the scheduled time.
Recruitments and Training:
Recruiting employees and giving training in an effective is a way of cutting the expenses
from the budget. Executive housekeeper should look upon the recruiting work and should be able
to recruit an efficient worker accordingly to the requirement of the firm. Giving proper training
to the workers, so that they can do the job in a very efficient way and should be able to handle
the entire task given and should be able to do it in a given time. Giving motivation and even
allowing retraining can increase the productivity of the employee inefficient way. The workers
should be given other training as well so that they can help the other workers in the time of need.