shilpa - budgeting in housekeeping department.ppt

7/25/2019 Shilpa - Budgeting In Housekeeping Department.ppt

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Budgeting In

HousekeepingDepartment

ajeet kr singh


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Introduction

Housekeeping: provision of a Clean. Comfortableand Safe environment.*

Budget: Plan of expenditure and necessar to

control the costs. !perating Budget: " #inancial Statement of a Plan

giving a $stimate of !perating %evenues& Profits 'orlosses(& expenses expected for a given period of

time. !perating Costs: $xpenses associated )ith

generating %evenues.


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!perational budget for housekeeping department:he portion of !perating Budget dealing )ith+uestroom %evenue&Housekeeping dept. salaries

and )ages&emploee costs and controllable costsrelating to servicing of the guestrooms and publicareas of the hotel.

!ccupanc #orecast: Short range estimate ofguestroom occupanc expected over a given periodof time& e.g. one )eek& one month etc.


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Budgeting

Should be time,bound Should be simple and practical -eep in mind unforeseen problems mportant as a /ode of control over finances 0one through planning and forecasting. Provides opportunit to criticall revie) past

planning& costs of department& present

accomplishment and take appropriate steps toaccomplish more.


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Budgeting in Housekeeping Dept.

here are three main areas )hich are considered before

preparing of Budget of Housekeeping 0epartment:

1. 2ages and salaries

3. !perating costs4. Capital expenditure

he budget should be the probable cost of:

1. )ages& salaries

3. additional cleaning e5uipment4. furniture& furnishings

6. cleaning agents& guest supplies& linen etc

7. planned renovation and redecoration.


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$ach item is given a priorit rating )ith indicating

)hether it is a replacement or addition.

t is highl essential to have all records& evaluations

of past performances and plans e.g. usage ofvarious agents& the cost of repair services etc& to be

able to justif the cost of a particular item.


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hus keeping cost of follo)ing is beneficial:

1. Servicing a room

3. Cleaning of a particular area

4.

Service of earl morning teas6. 8ight service&i.e& turning do)n

7. !vertime compared )ith extra staff

9. Hiring compared )ith o)ned linen

. Checking of linen

;. !ffice supplies& hand)ritten versus printed lists


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Forecasting and Planning

o predict future happenings& e.g. staffing for high or

lo) occupanc& annual cleaning& redecoration& etc.

Plan in order that these eventualities are met and

objectives are achieved )ithin time." good planner thinks on lines of econom utili>ing

time & labor& and materials in the best possible )a.

#ullest and most efficient use of e5uipment& space

and human effort b forecasting and planning )hat

)ork has to be done? )hen and ho) often to be

done? ho) is to be done? ho) long )ill it take etc.


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Budget Formulation

Budget handover from op /gt not al)as

successful or follo)ed

Budget )ith participation of the $xecutive

Housekeeper is essential as it brings input ofoperational heads.

o keep in mind changes in external factors such as

labour market& commodit market etc.


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Top Managements Input to

Budget

Compan expectations to be stated

Criteria to be made regarding standards to be met in

use of supplies

"fter identifing $xpected Sales and related costs&

op /gt. should criti5ue the budget indicating )here

adjustments need to be made so that !rgani>ation@s

)ill be met.


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Budget Cycle

Budgeting process commences )ell before the

beginning of a #iscal Aear. B the 1=thperiod of an

active ear in progress.

!perating Budgets usuall reflect periods in a fiscalear 'mostl 14 periods sstem(

14 period sstem: is a 3;das four consecutive

)eeks taken as a period resulting in 14 periods an

ear.


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Adantages o! "# period system

"ppropriate because period starts #irst da ofScheduled )ork )eek and last on last da of fourth)ork )eek.

"llo)s comparison of %evenues and Costs onConsistent and sstematic basis each period. 13 period sstem@s disadvantage is that ever

3months out of 13& extra pada )ill occur causingdistortion in )age cost against revenue.


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Budgeting $u%routine

$ach budgeting ccle is commenced b thoseinvolved in budgeting room sales.

Schedules indicating volumes of room sales to be

expected each da in the upcoming ear areprepared and finali>ed before !perational CostBudgeting is begun b the Housekeepingdepartment as it is affected directl b the fluctuatingoccupanc.

hese schedules also sho) comparison bet)eenupsoming budget ear and the existing ear in orderthat gro)th be analsed.


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&age Classi!ication

/an,Hour tili>ation represents the Highest

housekeeping Cost of !peration.

/an,Hours of various tpes of )orks performed

)ithin Housekeeping department are classified foraccounting purposes.

Hours )orked b section housekeeper aides

'=;(&those )orked b supervisor personnel are '=3(

and so on.


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Budget 'usti!ication

$xecutive house keeper need to explain ho) /an,

Hour re5uirement are made.

" standard /an,Hour Dustification #orm is submitted

along )ith the Budget. Considering the expected occupancies the

$xecutive Housekeeper refers to the able of

Personnel %e5uirement to determine exactl ho)

man man,hours )ill be re5uired to service thisoccupanc.


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Contd.

*able of Personnel %e5uirement: "t each percent

of !ccupanc& this table establishes the number of

rooms that )ill re5uire service& the number of

housekeepers re5uired at the rate of 1; roomscleaned per ;hour )orkda. 8umber of

housekeepers re5uired for one )eek& and no. of

housekeepers re5uired for 3;dasperiod.


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(no)ledge is key*

+educing Capital ,-penditure

Change in the facilit can drasticall alter a budget. Having a good grasp on the needs of the facilities&

helps to put a price tag on it.

-no) the 5ualit levels and s5uare footage of eachbuilding E the number of rooms& light fixtures& tpesof flooring& etc and compare it to the histor of thefacilit enumerate advancements made to thefacilit since the last budget.


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Contd.

0eveloping a Fneeds analsisG )ill help to determine

the building@s desired level of clean& as )ell as the

fre5uenc of cleaning and manpo)er necessar to

reach the desired goal." proper needs analsis )ill also take into account

both the data on the building& as )ell as high traffic

areas and impression areas& such as restrooms and

entr)as.


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Contd.

$valuating Ffre5uenc of tasksG can save budget dollars in thelong run. hus& it is important to figure out )hat absolutelneeds to be done. $valuate )hat tasks can be reduced infre5uenc& )hile continuing to maintain 5ualit.

$.g.: "n office )here each tile is scrubbed ever da. t couldjust be s)ept& saving time and mone& )hile cutting labor inhalf and reducing expenses such as chemicals and )ater.

2hen evaluating )ork it is also important to include thoseactivities that don@t involve cleaning. !mitting this )henputting together a comprehensive budget )ill ske) the

numbers drasticall. #or e.g.& "ctivities such as room set,upand breakdo)ns can take as man as 1= hours a )eek.


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Contd.

$liminate duplication of services. #or e.g.: !nefacilit had da maids and porters& as )ell as acleaning cre) at night. hen the reali>ed that theall do the same thing so )e moved everthing to

datime so that the )ork is onl done once a da. n the past& hotels )ould call a couple different

suppliers and just go )ith the lo)est price. heprobabl )eren@t getting the best price because )edidn@t create loalt to an one supplier. 8ot tomention the spent a lot of time )ith the process.8o) Hotels are loal to one supplier and thus haveseen more savings than ever before.


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Points to %e kept in mind

Sitting do)n and developing a time stud for ever task re5uiredto maintain a building )ill help facilit managers determine )hereto cut time and save mone. Coming up )ith this calculation )illoutline the annual hours spent on each task.

2hen factoring labor into the budget& facilit managers shouldconsider both productive and non,productive time because both)ill impact budget dollars. 0oes our facilit provide vacation&famil medical and sick time hose are all das )hereemploees are being paid& but )ork is not getting done.

"nal>ing this ma determine that of the total paid hours& mabe

onl = percent are actuall )ork hours. his needs to befactored in.


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Conclusion

Preventative maintenance )ill also save on the

budget. Iistening to )orkers is a great practice in

preventative maintenance. Because the use these

machines often& )orkers )ill kno) )henmaintenance is necessar.

Jalue the opinion of our staff )hen considering

budgets and purchasing decisions. he )ill tell ou)hat needs to be done and )hat improvements are

necessar.


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+e!ernces

Branson K Iennox& 6H@s

Dones K /artin& Professional /gt. of

Housekeeping !perations.

))).cleanlink.com
http://www.cleanlink.com/http://www.cleanlink.com/


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Tank /ou

shilpa - budgeting in housekeeping department.ppt

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