Corinthia Hotels International Ltd (CHI ltd) was established in 2000. This Maltese management company provides a full range of technical assistance and managerial service to hotel owners. CHI is the exclusive operator and developer for the luxury Corinthia Hotels brand as well as the Wyndham and Ramada Plaza brands in Europe, Africa and The Middle East. The current Portfolio amounts to twelve luxury and upscale properties in city and resort locations with products ranging from boutique to conference hotels. Total room capacity of the current portfolio amounts to 6000. In line with the company’s expansion strategy, there are another eleven hotels currently under development in various locations worldwide. Therefore increasing capacity levels by 25 % upon their completion.
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Head Office and each respective hotel unit have fully functional administrative departments such as Sales & Marketing, Human Resources, Stores, Information Technology, Finance and Administration. Additionally, each hotel unit also operates the following service departments:- Housekeeping, Front Office, Engineering , Food & Beverage and Kitchen. The various hotels forming part of the company portfolio are able to serve the needs or the demands of different categories of travellers. Notwithstanding the diversity of each unit, be it location, structurally or market arena in which they compete, the primary function of a hotel is to provide accommodation for those away from home, and to supply travellers with their basic needs. Therefore, each hotel unit requires basic components of hotel products, which can be categorised into two key areas which are sleeping accommodation and food and beverages. For the purposes of this assignment I will be concentrating one specific operational department, namely Housekeeping.
Irrespective of the total size of the property in square metres, or the total bed stock capacity the main objective of the housekeeping department is to provide a quick and thorough servicing of rooms and pubic areas to a consistently high standard and with little inconvenience to the guests as possible. Therefore, until such time that there are machines that can make beds, service and replenish hotel bedrooms and public areas, the housekeeping department will remain an essential service function in any hotel. Due to the high element of manual work, this department is highly dependant on manpower to produce its outputs. Hence, the key resource utilised is employees.
In order to establish adequate manpower levels the total departmental requirements are primarily calculated on maximum capacity of three factors :-
The total number of hotel bedrooms.
The total land area of the hotel.
100% Occupancy levels.
However, from the day to day operation’s perspective, manning levels are predominantly calculated on forecasted business levels. Tasks for room attendants are individually assigned using the management information systems ‘ Fidelio Opera’, whereas Public Area Cleaners have fixed work type schedules which differ according to the various shifts. Being a unionised environment, the collective agreements define maximum output levels within an eight hour shift, which in the case of a room maid, a maximum of sixteen rooms to service can be allocated. Outputs over and above this quota must be produced after the eight hour period, which in turn impacts costs based efficiency levels. Other parameters exist which encompass a Total Quality Management perspective :-
The company has established a systematic ten step work process for the cleaning of bedrooms. The process has been designed in such a way as to establish standard operating procedures, define desired quality levels and to promote ergonomic work practices.
The best work practice is communicated through training and supervision on the ten step cleaning process , which if followed correctly will prevent repetitive strain or manual handling related injuries, ensure safe materials handling and the attainment of desired quality levels.
Guest expectations relating to the quality and type of intangible services are constantly changing, this in turn brings about regular shifts in customer’s needs. Therefore, to remain an attractive alternative to the competition, customers requests have become the catalyst for departmental diversification. Nowadays most housekeeping departments also co-ordinate laundry and dry cleaning services, inventories, staff uniforms, floral services, baby sitting services and seasonal hotel decorations displays.
Q.2.3.4
Subsystem
Function
Model
Structure
Objective
Housekeeping Function
Service
C
SCO
Maximum Customer Service through minimizing completion time.
Consistent levels of cleanliness leading to high quality perception of service level.
Minimized customer queuing.
High resource productivity
In-house Laundry
Service
C
SQO
Consistent levels of quality leading to customer satisfaction.
High levels of productivity.
Dry Cleaning
Service/ Transport
C
DQO
Hassle free door to door service.
Minimum Customer Waiting Time.
Consistent Quality of service provided
Cost Effectiveness
Q5. Key : C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png= Very Important X = Relatively Unimportant
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png = Relatively Important X = Unimportant
Sub- System
Resource Utilisation
Customer Service
Materials
Machines
Labour
Spec’n
Cost
Housekeeping
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
X
Laundry
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
Dry Cleaning
X
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
Q5.1 Housekeeping
The primary resource utilised is manpower
The secondary resource is materials e.g. detergents, cloths, brooms etc
Minimal amount of machinery is utilised to perform cleaning processes
Customers expect to find the public areas and guest bedroom clean at all times.
The customer does not pay directly for the service as it forms part of the room rate tariff.
Q5.2 Laundry
All laundry processes are highly dependant on the use of machinery e.g. washing machines, folding machines, pressing machines.
All inputs and outputs are handled physically by the linen keeper. This includes ensuring that par levels are maintained to prevent stock outage, distribution of linen to room attendants and quality control.
Cleaning materials amount to a small percentage of the running costs within this subsection of the housekeeping department.
Time taken to supply the service is imperative to the customer. Two levels of service exist these being ‘next day’ service and ‘same day’ service. Customers pay directly for the service rendered. Customers are willing to pay premiums for express services.
Q5.3 Dry Cleaning
All dry cleaning is outsourced to Swan Laundry and therefore the only resource required by the hotel is labour. As the hotel operates its own laundry, the same personnel are used to co-ordinate guest dry cleaning requests. Items are delivered directly to the room by the Linen Keeper.
Primary factor for the customer is to receive cleaned garment in the shortest possible time frame.
Customers will be willing to pay a premium for an express service.
Q61. Industrial Unrest
The general union has one hundred percent recognition within the hotel property. Negotiations with the management have reached a deadlock which has consequentially resulted in the union issuing an advice of Industrial action to the management and a strike directive to its members. Therefore, during the period of time that industrial action persists, both cleaning and laundry services have been paralysed and hence these two functions are now required to be outsourced to a private contractor until such time that that conciliation can be reached.
Subsystem
Model
Structure
Objective
Housekeeping Function
C
DQO
Continued uninterrupted service to the customer
Loss of business is minimised
Quality of service remains constant
In-house Laundry
C
DQO
Continued uninterrupted service to the customer
Loss of business is minimised
Quality of service remains constant
Sub- System
Resource Utilisation
Customer Service
Materials
Machines
Labour
Spec’n
Cost
Housekeeping
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
X
Laundry
x
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
X
C:Documents and SettingsmbunyanLocal SettingsTemporary Internet FilesContent.IE5MKANX3AFMC900432530[1].png
Q61.1 Housekeeping Function
Manpower still remains the primary resource utilised due the nature of the work involved. Payroll costs will substantially increase as in addition to payroll, additional sums will have to be paid to the contractor for services rendered. Thus impacting profitability due to manpower.
As the same tasks are required to be performed by the contractors quantities of materials and machine usage remain unchanged.
Customers expectations in terms of services provided and time factors remain unchanged.
Q61.2 Laundry Function
Linen keeper function will be taken over by a member of the housekeeping management team. Thus ensuring that inventories and control of services are monitored internally. Therefore, no additional cost in terms of labour as management grades are not paid overtime for extra hours worked.
Machinery and materials are provided by contractor therefore, there will be little or no impact in terms of resources.
Major consideration is that extra costs will be incurred to pay contractor however, the reduction in consumption in utilities such as water and electricity will to contribute towards balancing the additional costs incurred.
Q7a Concepts where Ceterus Paribus was used
The daily operation for the housekeeping department performs same tasks at similar times of the day. Rooms are serviced between the hours of 0800 hrs until 1700 hrs, Internal Laundry operates from 0700-1900 hrs and Public Areas are serviced from 0600hrs until 2300hrs. These timings are covered providing the person scheduled turns up to do their duties and there are no large shifts in demands due to unexpected group arrivals or delayed departures due to flight cancellation.
Linen inventory levels are well stocked on a 3 par level thus providing sufficient availability of linen for more than one day.
An emergency situation doe not arises in the hotel. This may lead to hotel evacuation or redeployment of housekeeping team members to assist in a clean up process.
All machinery in the laundry section is working to maximum out put levels and there are no interruptions to utility services provided by any of the following:-
Technical problems.
Preventative maintenance.
General Power Failure in area.
Back up Generator is able to sustain the emergency lighting system until such time that power supply is resumed.
Reverse Osmosis System is operating efficiently.
External Laundry and Dry Cleaning Service operates seven days a week, for next day service garments have to be submitted to the Housekeeping department prior to 0900hrs of the previous day. The same applies to express cleaning services. The unit is highly dependant that the service provider delivers the garments at the contracted times. Shortfalls in service by the contractor would lead to customer dissatisfaction.
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Although the contingency plan during industrial action would be to outsource both the housekeeping and laundry function to a third party contractor, it may be the case that the entrance to the loading bay may be barricaded thus impeding contractors to enter the building to perform the tasks required. Or indeed that contracted staff may sympathise with those who are picketing.
Q7b Strategic Choices
CHI owns and operates a total of three hotels on the island. All of which are unionised and hence seeking manpower from sister hotels would not be possible in the event of industrial action. The company has a contract with Bad Boy Cleaning Organisation who in return for a fixed fee supply additional cleaners upon the request of the hotel management. Therefore, any influxes in demand can be addressed on a real time basis by the supply of additional manpower through the oursourced company.
Should the action occur when it is forecasted that the hotel will have lower occupancy levels, rooms or floors could be closed and the cleaning of the said rooms could be postponed until such time they are required. The current late booking trend could be advantageous for the hotel management to counteract additional last minute bookings by closing all room type availability. Although this measure would result in loss of room revenues it would limit the burden on the operation and safeguard the reputation of the company.
Additional manpower could also be attained through management personnel, who could temporally abandon their roles and assist in the housekeeping department in order to maintain housekeeping services.
In the worse case scenario, whereby industrial action is paralysing the operation, arrangements to relocate guests to other hotels in the vicinity would be the only option available.
Q7b Capacity Management
Capacity Management in terms of the service industry can be categorized in terms of facilities, labour and equipment. Unlike manufacturing operations, in the service industry the success of a hotel operation is linked to its use of room capacity and the rates charged per room. Matching of capacity and demand is a challenge for any hotel operation. This is partly due to the fact that most hotel services cannot be stored in the form of inventory. Occupancy levels vary according to seasonality and can vary drastically from one day to the next in terms of excess or insufficient demand. When a hotel room is not sold on a particular day the revenue lost can never be regained, this is referred to as ‘perishability factor’. The maximum capacity will be defined by the total number of bedrooms whereas the optimal capacity will relate to the maximum number of clients that can be served at the desired level of service. Capacity management therefore involves certain trade-offs between the objectives of profit maximisation and operational cost efficiency. The housekeeping department has little to no input into maintaining business levels, as this area is covered by Yield departments, namely Sales and Reservations. Therefore, the primary objective for the Housekeeping department is to ensure that all vacant rooms are serviced in preparation for an eventual sale. Additionally, on high demand days, procedures allow quick turnarounds to allow room to be sold more than once thus maximizing revenue.
Labour is the most variable source of a service provider. Business levels and activities within the hotel will be a defining factor as to how much staff are required each day. Therefore, the housekeeper will use business forecasts when preparing working schedules for her department. As mentioned previously maximum output levels within an eight hour day are governed by a maximum number of rooms that can be allocated to each team member. Concessions to the 16 room allocation are :-
New team member has joined the company and is undergoing training on the ten step process.
The three month probationary period for new team members whereby number of rooms allocated is less until they are able to work productively at the required levels of cleanliness.
Following scheduled maintenance when deep cleaning process is conducted in rooms, a time span of 2 hours per room is calculated.
Equipment – As the hotel has its own laundry par levels of bath and bed linen is set at three. Stock takes are conducted on a monthly basis to monitor and control stocks and re-order levels. When items in stock reach the minimum levels and requisition is submitted. All requisitions are channeled through a computerized inventory management system.
Consumable items : Centralised purchasing department
Par levels are set according to seasonality.
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