CX660015A - Assessment 2: Housekeeping Budget and Operations Analysis

This document presents a detailed solution to a housekeeping operations management assessment. The assessment focuses on the Victoria Hotel, a 250-room mid-range property. The solution begins with a plagiarism analysis report and then addresses several key questions. Question 1 involves calculating total labor hours and staffing needs for the housekeeping department at varying occupancy rates (60%, 80%, and 100%), along with the estimation of labor expenses. Question 2 centers on inventory management, including the calculation of par values for different room types, opening inventory, shrinkage, and the items to order from the supplier. Question 3 delves into perpetual inventory management using a perpetual inventory sheet. Question 4 focuses on calculating the cost of guest supplies. Finally, Question 5 addresses the calculation of budgeted expenses based on room revenue. The solution demonstrates understanding of budgeting, staffing, inventory control, and cost management within the housekeeping department, providing detailed calculations and explanations for each aspect of the assessment.

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Date: 2019-07-26 07:46 UTC
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[1]  https://livrosdeamor.com.br/documents/housekeeping-management-5c36d160637bb
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[2]  archive.org/stream/collectionofform02bowsiala/collectionofform02bowsiala_djvu.txt
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[3]  https://www.thebalancesmb.com/how-to-be-a-good-manager-2948279
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Question 1
Victoria Hotel is a 250-room property hotel providing mid-range services. The occupancy rate of the hotel is
either 60%, 80% or 100%. The staffing guide for the house-keeping Department is as follows:
For the purpose of calculations, we have assumed the number of hours in a shift to be 8.
1A calculation of total labour hours and the number of staffs needed:–
At any occupancy rate, the time taken by a room attendant (AM) to clean one guest room is 30 minutes.
Similarly, the time taken by a tu -down attendant (PM) to attend to one room is 10 minutes.rn
Every one house manager (AM) can manage a total of 50 rooms.
Case 1- when the occupancy is 60 %-
The total number of rooms occupied = 250 * 60% = 150
1 can manage 50 rooms at once.house person
This means the total number of house persons needed = 150/50 = 3
For ,room attendants
The total time taken Total occupied rooms * time taken by a room attendant to clean 1 room (in hours)=
= 150 * 30 minutes/60 minutes
= 75 hours
The total room attendant staffs needed total time taken by room attendants / number of hours in 1 shift=
= 75 / 8
= 9.375
= 10 room attendants (rounded off)
For turn-down attendants,
Total time taken = total rooms occupies * time taken in hours to attend one room
= 150 * 10 mins/ 60 mins
= 25 hours
Total staff needed = total time taken by turn-down attendants / number of hours in 1 shift
= 25/8
= 3.125
= 4 turn down attendants (rounded off)

Case 2- when the occupancy is 80%-
The total number of rooms occupied = 250 * 80% = 200
1 can manage 50 rooms at once.house person
This means the total number of house persons needed = 200/50 = 4
For ,room attendants
The total time taken = Total occupied rooms * time taken by a room attendant to clean 1 room (in hours)
= 200 * 30 minutes/60 minutes
= 100 hours
The total room attendant staffs needed = total time taken by room attendants / number of hours in 1 shift
= 100 / 8
= 12.5
= 13 room attendants (rounded off)
For turn-down attendants,
Total time taken = total rooms occupies * time taken in hours to attend one room
= 200 * 10 mins/ 60 mins
= 33.3333 hours
Total staff needed = total time taken by turn-down attendants / number of hours in 1 shift
= 33.3333/8
= 4.1667
= 5 turn down attendants (rounded off)
Case 3- when the occupancy is 100%-
The total number of rooms occupied = 250 * 100% = 250
1 can manage 50 rooms at once.house person
This means the total number of house persons needed = 250/50 = 5
For ,room attendants
The total time taken = Total occupied rooms * time taken by a room attendant to clean 1 room (in hours)
= 250 * 30 minutes/60 minutes
= 125 hours

The total room attendant staffs needed = total time taken by room attendants / number of hours in 1 shift
= 125 / 8
15.625=
= 16 room attendants (rounded off)
For turn-down attendants,
Total time taken = total rooms occupies * time taken in hours to attend one room
= 250 * 10 mins/ 60 mins
41.6667 hours=
Total staff needed = total time taken by turn-down attendants / number of hours in 1 shift
= 41.6667/8
5.2083= [0]
6 turn down attendants (rounded off)=
1B - calculation of estimated labour expenses-
For any given occupancy rate,
Wage of a room attendant = rate per hour * number of hours in a shift
= 25 * 8
= 200$
Wage of a turn down attendant = rate per hour * number of hours in a shift
= 20 * 8
160$=
Wage of a house person = rate per hour * number of hours in a shift
= 16 * 8
= 128$
Case 1- when the occupancy is 60%-
Total estimated wages of room attendants = wage of a room attendant * total number of room
attendants needed (A)
= 200 * 10
= 2000$
Total estimated wages of turn down attendant = wage of a turn down attendant * total number of turn down
attendants needed (B)
= 160 * 4
= 640 $

Total estimated wages of house persons = wage of a house person * total number of house persons needed
(C)
= 128 * 3
= 384 $
Total estimated labour expenses = A+B+C = 3024 $
Case 2- when the occupancy is 80%-
Total estimated wages of room attendants = wage of a room attendant * total number of room
attendants needed
= 200 * 13
= 2600 $
Total estimated wages of turn down attendant = wage of a turn down attendant * total number of turn down
attendants needed
= 160 * 5
800 $=
Total estimated wages of house persons = wage of a house person * total number of house persons needed
= 128 * 4
512 $=
Total estimated labour expenses = 3912 $
Case 3- when the occupancy is 100%-
Total estimated wages of room attendants = wage of a room attendant * total number of room
attendants needed
= 200 * 16
= 3200 $
Total estimated wages of turn down attendant = wage of a turn down attendant * total number of turn down
attendants needed
= 160 * 6
= 960 $
Total estimated wages of house persons = wage of a house person * total number of house persons needed
= 128 * 5
= 640 $
Total estimated labour expenses = 4800 $

Question 2
In housekeeping, the standard number of each inventoried item that must be in hand to support daily, routine
housekeeping operations is termed par value.
In this question,
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Total suites with one king sized bed each 25=
Total suites with one queen sized bed each = 200
Total twin bedded rooms with 2 single-sized beds each = 100
For each kind of room,
The total sheets used = number of rooms * number of beds * number of sheets
ROOM NO. OF
ROOMS
NO. OF
BEDS
NO. OF
SHEETS
TOTAL
SHEETS
USED
Suite with 1 king-sized bed 25 1 2 50
Suite with 1 queen-sized bed 200 1 2 400
Twin-bedded room with 2 single beds 100 2 4 800
Total large pillows used = total large pillows used in each room * no. of rooms
ROOM NO. OF
ROOMS
NO. OF
LARGE
PILLOWS
USED
TOTAL
LARGE
PILLOWS
USED
Suite with 1 king-sized bed 25 2 50
Suite with 1 queen-sized bed 200 2 400
Twin-bedded room with 2 single beds 100 0 0
Total small pillows used = total standard-sized pillows in each room * no. of room
ROOM NO. OF
ROOMS
NO. OF
STANDARD
PILLOWS
USED
TOTAL
STANDARD
PILLOWS
USED
Suite with 1 king-sized bed 25 0 0
Suite with 1 queen-sized bed 200 0 0
Twin-bedded room with 2 single beds 100 2 200

2A. calculation of opening inventory-
Opening inventory = total number of respective items * Par needed for each item
ITEM NO. OF
ITEMS
PAR
NEEDED
OPENING
INVENTORY
King sized bed sheets 50 3 150
Queen sized bed sheets 400 3 1200
Single bed sheets 800 3 2400
Large pillows 450 3 1350
Small pillows 200 3 600
2B. calculation of shrinkage for the first quarter-
In order to calculate shrinkage, the following shall be relevant-
Shrinkage in the 1 quarter = Inventory in the beginning reusable items non-reusable itemsst – –
Reusable items can be physical inventory in the rooms, inventory in laundry, and inventory in pantry. This is
because these can be used again and again with a little cleaning and maintenance. Non-reusable items will
be in-soiled bins, discarded/stained, and torn sheets. This is because these items have to be disposed off after
use.
SHRINKAGE is calculated in the following table-
Particulars King sized
sheets
Queen sized
sheets
Single bed
sheets
Large
pillowcases
Standard
pillowcases
Beginning inventory (A) 150 1200 1200 1350 600
Physical inventory in rooms
(B)
100 400 400 450 200
Inventory in laundry (C) 20 310 320 260 200
Inventory in pantry (D) 10 210 210 410 70
In-soiled bins (E) 10 250 260 200 100
Discarded/stained (F) 5 8 6 10 15
Torn sheets (G) 3 2 4 8 5
Reusable items (H=B+C+D+E) 140 1170 1190 1320 570
Non reusable items (I=F+G) 8 10 10 18 20
Shrinkage (A-H- I) 2 20 0 12 10
2C. calculation of bedsheets and pillowcases to order to your supplier to bring inventory upto par
The inventory we need to order to bring it up to par will be the inventory which could not be used. This
includes the non-reusable items and the shrinkage.
Inventory to be ordered = non-reusable items + shrinkage
ITEM NON-REUSABLE
ITEMS
SHRINKAGE INVENTORY TO BE ORDERED
FROM SUPPLIER
King sized sheet 8 2 10
Queen sized sheets 10 20 30
Single bed sheets 10 0 10
Large pillowcases 18 12 30
Small pillowcases 20 10 30

Question 3
PERPETUAL INVENTORY SHEET
Date Stock Received Stock issued Stock in hand
(balance)
Signature Comments
1st May 112
7th May 6 106
13th may 15 91
18th May 1 90 1 bottle was broken
20th May 25 115
25th may 20 95
31st May 95
On 1 May, the opening balance of French perfume bottles was 112. This is the opening stock of bottlesst
(French perfume bottles on hand).
On 7 May, 6 bottles were issued which reduces the opening stock by 6. This means the balance of bottlesth
on 7 May was 106 (112-6).th
On 13 May, again 15 bottles were issued which makes the stock in hand to be 91 (106-15). Till 18 May,th th
no bottles were issued but the balance had reduced to 90. This variance of 1 was because 1 bottle was
broken (and hence unusable) and was thus reduced from the stock in hand.
On 20 May, one case of 25 bottles was purchased which increased the total stock by 25. Thus, the stock onth
20th May was 115 (90+25).
On 25 May, 20 bottles were issued and thus the balance stock was reduced to 95 (115-20).th
There were no more transactions till 31 May and therefore, the closing stock of perfume bottles was 95.st
Question 4
The cost of guest supplies is taken to be same as the stock issued to the Departments.
The calculations are as follows-
Closing inventory = opening inventory + all purchases issues to the departments–
As per the above note, the equation is as follows-
Closing inventory = opening inventory + all purchases cost of guest supplies–
Taking the cost on the left hand side and closing inventory on the right hand side, we get-
Cost of guest supplies = opening inventory + all purchases closing inventory–
= inventory as on 1 may + purchases during the month inventory as on 31 Mayst – st
Putting the values as given in the question,
Cost of guest supplies = 13000 + 2500 12900–
2600 $=

Question 5
As given in the question, the room revenue for 3 months = $920,000
Calculation of budgeted expense for four categories-
Budgeted expense = room revenue for 3 months ($920,000) * % of room revenue of that category
Category % of room revenue Budgeted expense
(in $)
Cleaning supplies 0.6 5520
Guest supplies 1.2 11040
Laundry supplies 0.4 3680
Linen replacements 0.9 8280
After taking the physical inventory after 3 months of operation, the actual expenses for the four categories of
supplies were as follows-
Cleaning supplies = $6020
Guest supplies = $7200
Laundry supplies = $5500
Linen replacements = $8100
Total Budget = $26,820
On comparing the budgeted expenses as calculated as a percentage of room revenue and the actual expenses
as given in the question, we get the following results-
1. In case of cleaning supplies, the budgeted expense was $5520 while the actual was $6020. Since the
actual was greater than the budget, the expense is over the budget
Expense over budget = $6020 $5520 = $500–
2. In case of guest supplies, the budgeted expense is greater than the actual expense. Hence, the expense is
within the budget.
Expense within the budget = $11040 $7200 = $3840–
3. In case of laundry supplies, the actual expense is greater than the budgeted expense. Thus, the expense is
over the budget.
Expense under allocated = $5500 $3680 = $1820–
4. In case of linen replacements, the budgeted expense is greater than the actual expense. Thus, the expense
is within the budget.
Expense within the budget = $8280 $8100 = $180–

Question 6
The housekeeping work is an assortment of various services provided at the building by the housekeeping
executive. Housekeeping is generally a separate Department in the Hotel business. The services provided by
the housekeeping department includes performing basic cleaning tasks like cleaning the rooms, rest rooms,
and other tasks like proper maintenance of records, purchasing inventory and materials and so on. Thus, in
order to provide these services, the Department also incurs various expenses like purchase of cleaning
instruments such as brooms, brushes, dusting clothes, etc., and other personnel-related expenses like salaries
and wages of the housekeeping personnel, retirement benefits, allowances, heating, lighting and power
expenses and much more. In order to control these housekeeping expenses, the hotel institutions often
employ budgeting to ensure that the expenses actually incurred are within the expenses allocated.
Controlling the expenses means employing means and methods to ensure that the actual expenses are in
accordance with the expected expenses as allocated in the budget. Broadly, there are four basic methods an
executive housekeeper can use to control the housekeeping expenses. These are as follows –
1) Accurate record-keeping: This is a very important methodology to control the expenses as it
allows to correctly forecast the inventory prices, monitor usage rates, and deal with any variances
in accordance with the standard improvement procedure. For example, the executive housekeeper
can ask any member of the junior staff to fill an entry of record in a particular diary, mentioning
the product they used and the rooms they cleaned along with the time of their entry and exit and
other essential details in the logbook. This record thus maintained will enable the executive
housekeeper to keep the actual expenses with the expected expenses and ensure that no work done
is going unrecorded, or any work not done has been appropriately recorded.
2) Effective scheduling: Effective scheduling permits executive housekeeper to regulate and manage
the salaries and wages of staff and therefore the prices associated with other benefits and
incentives provided to the employees. Generally, the salaries and wages of the staff is directly
proportional to the occupancy rates of the hotel. Higher the occupancy rates, higher will be the
salaries and wages payable. Thus, effective scheduling allows the executive housekeeper to keep a
proper record of what has been the occupancy rates during the respective time period and
henceforth decides what amount shall be paid to the housekeeping staff. This method makes sure
that the personnel price is in line with the occupancy rates. For example, as per the occupancy rate,
only the number of employees required should be staffed. This way, the executive housekeeper
would not have to pay salary to the staff that is not required and can easily cut the cost and thus
control the expenses.
3) Careful Training and supervision: The cost involved in coaching and supervising the staff
shouldn't go unnoticed because it could be a vital cost to the organisation and essential steps ought
to be taken to manage it. Effective coaching programmes that quickly bring new recruits could
incur high costs if they are not supervised and managed properly. There are many ways that can

ensure that such programmes are correctly managed. For Example- close and diligent supervision
is one the best ways to control costs. Refresh training is also a type of training that can ensure that
productivity, quality and performance standards are met in accordance with the hotel's guidelines
and this might even lead to an improvement in the performance and results. This is a very effective
and efficient training method being adopted by various hotels around the world to reduce their
costs and control their expenses.
4) Efficient purchasing: By adopting an economical purchasing methodology, the executive
housekeeper ensures that the expenses of the housekeeping department are controlled and the right
amount of cash is available in the institution to meet the daily needs. Also, this method ensures that
the cash is being properly spent, there is no wasteful expenditure and a correct price has been
devised for all items of inventory. The inventory is purchased at the ‘par' value in line with the
quantities and specifications as mentioned in the hotel guidelines. The executive housekeeper is
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responsible for assessing the quality of the existing products and whether the existing products live
up to the expected performance standards, quality and value for money. Therefore, as per the
results produced by evaluating the current items of inventory, the executive housekeeper ensures
that the new purchases meet the required expectations and are economical.
Question 7
The housekeeping work is an assortment of various services provided at the building by the housekeeping
executive. Housekeeping is generally a separate Department in the Hotel business. The services provided by
the housekeeping department includes performing basic cleaning tasks like cleaning the rooms, rest rooms,
and other tasks like proper maintenance of records, purchasing inventory and materials and so on. Thus, in
order to provide these services, the Department also incurs various expenses like purchase of cleaning
instruments such as brooms, brushes, dusting clothes, etc., and other personnel-related expenses like salaries
and wages of the housekeeping personnel, retirement benefits, allowances, heating, lighting and power
expenses and much more. In order to control these housekeeping expenses, the hotel institutions often
employ budgeting to ensure that the expenses actually incurred are within the expenses allocated.
A budget is a plan which shows the revenues expected by hotel and the expenses the hotel has to bear.
Expenses are calculated by adding fixed expenses, variable expenses, and other one-time expenses which
hotel incurs to generate revenue, for example, marketing campaigns, discount offers, partnerships with other
companies for combined promotions, etc. The advantage of constructing a budget is that, it provides a
chance for performing an analytical check up on the prices of varied departments, reviewing past, and
coming up with various methods in order to control expenses and increase revenue. Thus, preparing a budget
consequently assists the hotel institution in taking applicable steps to accomplish various goals for the
coming financial years.

The operational budget is similar to the style of housework budget. The operational budget is associated
with expenditure on things related to daily or short-term consumption. This budget helps to figure out what
will be the earnings of the business when it incurs sho -term expenditure. The budget often stresses on thert
fact as to how much revenue will be earned, considering the prices incurred. The foremost, necessary and
overpriced operational expense involves salaries and wages of the workers and therefore the staff of the
building. The value of clean-up expenses, providing to the guests and alternative non-recycled inventory
things are also considered as operational prices in building business.
Controlling the expenses means employing means and methods to ensure that the actual expenses are in
accordance with the expected expenses as allocated in the budget.
The budget is one of the most valuable management tools to keep a watch over the course of operations over
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a specific amount of time. Dominant expenses within the housekeeping Department suggests the comparison
and helps to analyse the actual expenses and the budgeted amounts and find out the variances. This
comparison of the actual figures with the budgeted amounts enable the executive housekeeper to check
whether the expenses were incurred in accordance with the occupancy rates or not. For example, if the
quantity of rooms occupied is less than the expected occupancy level, then it is expected that the expenses of
the business shall reduce in real time. On the other hand, if the quantity of rooms occupied is greater than the
expected occupancy levels, then the expenditure is expected to rise. In each of these cases, distinction in
expenses is ought to be made, keeping in mind the occupancy levels.
Also, once the operational budget is prepared, small deviations between the actual and the expected
expenses is considered acceptable, but if the deviations involve huge amounts, then immediate and serious
action is required to deal with the situation. In such a case, it becomes the responsibility of the executive
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housekeeper to correct the deviations.
For example, in order to correct the deviations, the management can decide to re-examine the staff's
efficiency and its planning procedures, and other prescribed practices in order to find out the cause of
deviation between the actual and the budgeted values. Alternative steps would possibly embrace evaluating
the potency, effectiveness and prices of merchandise that are being employed by the housework department
and researching and exploring the alternatives. For hotel business, deviations in budget is not a preferred
situation because such deviations could mean actual deterioration of services of the hotel. The housekeeping
Department needs to make sure that its budget is properly planned and the values are met, failing which, it
could have negative impacts on the business and reputation of the hotel. Any deviation would need
sufficient clarification. Therefore, it is the duty of the executive housekeeper to take all the necessary steps
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to ensure that the budget is properly constructed and meets the requirements of the business well.

Question 8
In a hotel, there are various types of master keys that provide varied levels of access. These are-
1. Master Key – Master key is the key that can be used to open the door on any one floor or any
sectional area. Master keys are the set of keys that are designed to open several locks for different
rooms in a hotel. These master keys will also not be able to open any other kind of locks, as each
lock has a key that is specific to it. Other keys will not work on those locks. The Locks that use
master keys to open also have another mechanism to open them and this mechanism will be identical
to all the locks in that set (on a particular floor or section).
For example, if there are ten rooms on a particular floor, then there will be ten pieces of master keys
for all the ten rooms. This key is usually kept with the executive housekeeper and is generally used
by him in case an inspection of the rooms has to be conducted.
Generally, a pin tumbler lock that opens using a master key will have two points on each pin
position, out of which, one will be for the change key and the other one for the master key.
2. Grandmaster Key – Grandmaster key is the key which can be used to open any lock in the entire
hotel building. From guest rooms, to common area rooms, to rooms for spa, laundry, pantry etc,
every kind of room can be opened by using the grandmaster key. Generally, this key is held by the
Chief or the manager of the hotel. The grandmaster key is customised to open the latched door or the
double of the double lock. However, there are certain situations when the room locks would not be
opened by using the master key. The reasons for this could be-
a. The payments to be made by the guests is in doubt- where it is not sure that whether the
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guests will make full payment or not, in those cases, the rooms are blocked by the hotel
management. In case the guests do not make their payments, a notice shall be sent to them for
the same. In case, the guests do not make the payment even after receiving the notice, then
the room will be locked using the double lock system, which won't open even by using a
master key.
b. The payment to be made by the guests have exceeded the credit limit that has been offered by
the hotel and no action is taken by the guests even after sending them the notification- in this
case, if the payment is not made complete by the guests or there is no response by the guests
to the notification, then the room will be double-locked by the Hotel Department.
c. When the room has been double-locked by the guest from the inside, meaning do not disturb.
3. Emergency Key – The emergency key can open the Guest Room door, the main Office door, and
the warehouse door. This key is generally maintained by the General Manager of the hotel and can
be used in emergency situations. For example, if there is fire at the hotel, the emergency key can be
used by the manager of collect something precious which he might have left inside. This key can also
be used to open the guest rooms when they are double locked.

The Housekeeping Department plays a crucial role in the Hotel property's key control efforts. This
includes-
a. The executive housekeeper often prescribes Key control procedures which all the staff has to
follow.
b. Performing an annual key audit and properly maintain the audit trails.
c. As soon as the guest arrives in the hotel, the security of keys other than the ones handed over
to the guests also has to be maintained.
d. The executive housekeeper ensures that all the keys are securely held and maintained.
e. Keeping a logbook for all the keys assigned.
f. Ensuring that no unauthorised person has access to the keys of the guests or the ones which
have to be maintained strictly by the manager.
g. Establishing a proper system for the distribution of keys.
h. Reminding the employees to return the keys when they check-out.
i. In order to conduct efficient return of keys, return boxes can be placed in the lobby, or exit
points of the hotel, and sometimes even in vehicles owned by the Hotel.