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.

Providing training to the workers helps them to do the work confidently and work more
efficiently than before.
Resourceful Purchasing:
Purchasing resourceful products helps the executive housekeeper to run the budget is a
very well organized way so that it doesn’t affect the budget in any way. The resources should be
selected in a very precise manner so that it can give the maximum output to the firm. The
selection of the resources is of utmost importance and in this matter, the surveys have to be done
so that they can get a clear idea about which the materials to be used. Selecting such kinds of
resources that can be used repeatedly in a manner so it doesn’t affect the reputation of the firm is
a way of cutting the expenses from the budget. Usage of resources that are eco-friendly so that it
doesn’t affect the working environment is another way to save expenses. The firms should be
able to promote the guest so that they can use the resources in a more managed way. Replacing
old equipment with the new ones that are more capital savings like changing the old light bulbs
to the new led ones can save a lot of power consumption is a way of cutting the expenses.
Replacing old heaters or cooling system with the new advanced and less power consuming
product is a more efficient way to cut the expenses.

Question 7:
The amount of capital in hand and its allocation in a proper manner is known as
budgeting. The operating budget is a kind of budgeting with added features to it. In an operating
budget, an organization takes all the consideration like the amount of capital they are going to
invest, the increase in capital expenditure in the future and also the profitability of the fir in the
future years. An operating budget is essentially a prediction of future expenditure and profit of
the company in the coming years.
Operating budget is on the essential tool that can be used to strategize the future income
of the company and there is a various way of executing this operating budget to maximize the
profitability of the business in the future. Here are some of the ways of using these operating
budgeting in any company.
Managing Operating Budget:
The success and the failure of a business are highly dependent on the operating budget
that the company prepares for the coming years. The significance of the budgeting operation is
imminent as it runs the existing day to day expenditure. Permanent operating costs, like company
bills and expenditure on employee wages, are the basic things that are included in the operating
budget. One cannot change the budget until they manage the workload to the employee, in case
any of the employees leaves the company, but at the same time, one cannot add the workload to
the other employee. To cope with the current situation one can appoint the other worker in
lower-wage and reallocate the remaining task to the other workers. Looking upon this one can
say that the situation has been managed automatically so that the new worker doesn’t have to do
all the tasks of the previous worker. Even tracking out the workplace materials expenditure you

can find ways to save the expenditure that can be profitable for the business in the long run and
take some burden off from the expenses.
Future Predictions:
Looking into the previously collected data and comparing it with the ongoing expenses
can give you an idea about the future budget prediction. If anyone misjudged the previous budget
so at the time of preparing the next one they will have an idea about where the budget should be
increased or decreased. One can prepare the list of things that were miscalculated on the previous
budget and can rectify in the next one. Future prediction is an overall estimate of future expenses
without overlooking the past miscalculations. One cannot accurately predict the future
expenditure but can have some ideas looking into the past activities of the company and can
overcome the difficulties that they may face in the future.
Collecting the Details:
Even if creating an advanced operating budget is resourceful getting details and using it
for the maximum benefit increases the importance of the budget. Like the data collected from
different sources like human resources helps in creating a better budget. For example, the
departments buying the goods should be able to tell exactly the amount of capital needed for the
certain materials needed in the production and if there are any available discounts in the
materials. By collecting this data and calculating in such a way that it can help create a budget
increases the effectiveness of the budget.
Creating Resource Assets:

One should always be ready for the future consequences that can be very harmful to the
company. So if the expenditure cost increases suddenly in the future one should have an asset to
overcome the cost expenditure so that they can be one step ahead towards their objective. One
cannot put the budget into the confined zone so shortly the firm does not face any difficulties that
can be risky to the firm. Sometimes the firm cannot earn the expected profit while the
expenditure stays stable due to the end of signings or production is slow. If one has built an
excess asset for such consequences the firm can overlook such problems shortly.
Tracking Operating Budget:
One cannot prepare a good operating budget and put away without executing properly.
Every firm should look check the proceeding of the budget in every time interval and should be
able to sort out small problems occurring that they do not pile up and take a bigger picture in the
future. A firm should be equally involved in keeping the track of the ongoing budget plan to
achieve the aim in the destined time.
Question 8:
The keys usually used in hotels are as follows
 Guests room keys
 Master keys
 Emergency keys
 Floor supervisor key
 Grand master key
 Guest room keys
Master key

A master key is a key which can solely operate all the several locks. The locks do have
their own individual key which will be able to open it except the master key. Locks which have
master key have some kind of different mechanism used to operate them which is identical to all
the other locks in a set of the group of locks.
e.g. the lock having the master key can be operated by two keys one by change key and another
one by the master key. That is possible because the lock which has a master key consists of two
different absolute points at each pin position which allows it to operate by two different keys.
Grand master
A Master key is a key which can operate all the locks under master key as well as the
other sectors including storage, laundry and linen rooms. Every hotel has its own set of master
and grandmaster key usually used in a situation when the guests or staffs are not able to open
locks with their original keys. That time the master keys are used to avoid any problematic
situation occurred in the hotel.
Emergency key
The emergency keys are usually used for the guests. When the guests are not able to open
doors, the hotel authority uses the emergency key to open the door for them. Since the key can
operate all the locks of guests’ room, it’s very important to use an emergency key in a controlled
and strict way. The hotel authority provides strict security for the safety of the key. Proper record
is maintained in order to keep the record who is using it and when it is used. The key should
never leave the premises.
Floor supervisor master key

Usually, there are keys which can operate a particular section of locks as per the
requirement of the hotel staff. In case of hotels with lots of rooms, they make master keys for
every floor or sections in order to make things clearer and simpler.
Housekeeping staff master key
The keys allotted to the hotel staffs, maids and housekeeping are able to operate all the
rooms of the hotel.
Types of master keys system
 (KA) Keyed alike system
These types of keys are required in a situation when a lot of locks are operated
through the same key. This master key system is used in the level 1 according to the key
tree of the master key system.
 (MK) Master key system
A master key is used in the situation when there are many locks, each of them
having their own individual key can also be operated through that single key.
This key is used is level 2 as per the key tree of the master key system.
 (GMK) Grand master key system
The grand master key system is wide-ranging in nature. As per this system, the
keys are mastered in a group, the master key of that particular group is only able to
operate all the locks no other groups will be able to operate the lock. It is available in
level 4 as per the key tree of the master key system.
 (GGMK) Great grand master key system

It is the wider range of grand master key. It consists of more than one grandmaster keys, like
a group of keys. Therefore, in great grand master key, there is the key which will have access to
all the grand master key areas working under it. It is available in level 5 according to key tree
system.
Role of housekeeping department play in a property’s key control
Since the housekeeping can operate all the rooms, they are allotted with huge
responsibility and procedures such as follows:
1. They are responsible for the safety of the keys when they are working.
2. They store the keys securely and distinctly.
3. The employees working as housekeeping don’t allow other people to use, examine or handle
the keys.
4. They keep the records for the key signed out.
5. They establish proper protocols for the distribution of the key to the staff.
6. The proper annual key audit is conducted for the safety of keys.
7. They also look over the cases related to the stolen or disappearance of the keys.
8. They are also responsible for reminding the guests to return the keys after check-out.
9. In case of loss or disappearance of the key, the staffs are responsible for reporting the higher
authority to take the needful actions.
10. They keep the proper secured key return boxes in the lobby or exit points of the premises.

11. They use keys which does not specify the details regarding the room number, property or
address.
Figure 1: Key tree of master key system
(Source: Self created)
Grand Master key
Master key 1 Master key 2
Guest keys Staff keys
Bedrooms Reception Kitchen

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