UNIT V: INVENTORY CONTROL

 

GLOSSARY TERMS

·       Area Inventory list- A list of all items and surfaces within a particular area that require the attention of the housekeeping personnel

·       Inventory -stock of purchased operating supplies, equipment, and other items held for future use in the department

·       Inventory control- a management function for classifying, ordering, receiving, issuing and accounting different items used for daily housekeeping operation

·       Guest supplies- All the items that are conducive to the guest‘s material comfort and convenience.

·       Guest amenities- All the luxury items that a hotel gives away to the guest at no extra cost

·       Guest essentials- items that are essential to the guest room and are not expected to be used up or taken by the guests

·       Guest expendables- Guest expendables are those supplies that are expected to be used up or taken by the guest on leaving the property.

·       Guest loan item- these are guest supplies which are not normally placed in the guest room but being available, if requested by the guest on loan basis

·       Minimum quantity- is the fewest number of purchase units that should be in stock at any time. The inventory should never fall below the minimum quantity.

·       Maximum quantity-is the greatest number of purchase units that should be in stock at any time. It must be consistent with available storage space and must not be so high that a large amount of cash is tied up.

·       Par stock- it is a minimum stock required for the daily function of a department.

·       Stock taking- physical verification of inventory by counting up stock

 

INVENTORY CONTROL is the management function of classifying, ordering and receiving, storing, issuing and accounting for items of value. As initial planning for opening takes place, systems and procedures must be designed to facilitate inventory control. Personnel training plans must be generated to familiarize the staff with how to take care of equipment and use supplies and account for items of value. Storage must be organized and allotted to the various categories of material; pars must be established; accounting methods must be coordinated with the controller’s office; and fiscal inventory rules and procedures must be established. It is very essential to have proper organization, systems and inventory control to overcome unnecessary loss and waste.

 

IMPORTANCE OF DOING INVENTORY IN HOUSEKEEPING

·       It provides current stock of goods and materials required for operations

·       Proper inventory do not allow shortage of goods in the department

·       Updated inventory stocks and records help in minimizing the work load

·       It also help in reducing market fluctuation effect (if occur ever)

·       Proper inventory leads to the effective use of working capital

·       Provide standardized guest room services

·       Increasing goodwill

 

PROCESS OF INVENTORY MANAGEMENT

1.       Determine par levels for each recycled inventory and non-recycled inventory item used in hotel.

·       recycled inventory-establishing par stock

·       non-recycle-inventory are taken according to average usage percent of items and maximum occupancy percentage

2.       Take physical inventory of all items in-use and in storage

3.       Develop plan and policies to control storage, issue, and movement of items from HK stores

4.       Frequent stock updating and maintenance of inventory items

5.       Determine the lead time quantity as per the usage of items

 

TYPES OF INVENTORY

1.       RECYCLED INVENTORY- It is used for those items which can be used again and again in the housekeeping operation. It includes linen, uniform, equipment and guest loan items. In order to maintain the inventory of these items Par stock; and minimum and maximum stock quantity is maintained

Ø  Linen –Linens are the most important recycled inventory items under the executive housekeeper’s responsibility. For establishing par of linen, the executive housekeeper needs to consider are:

1.       The laundry cycle,

2.       Replacement criteria of linen

3.       Emergency situations

An effective method of controlling linen inventory is to maintain floor pars. The occupancy reports generated by the front desk can be used to determine linen distribution requirement for each floor.
A physical inventory of all linen items in use and in storage is the most important part of managing linen inventories. A complete count must be conducted at least once a month. It is necessary for all linen in all locations to be included in the count. Hence inventories must be taken at a time when the movement of linen between guest rooms/ F&B outlets and laundry can be halted/minimize. After the counting process is complete and totals are collected, they should be compared to the previous inventory count to determine actual usage and the need for replacement purchases.
The linen valuation is thus determined as – 

(Linen in use X price) + (new linen X price) = linen valuation

 Ø  Uniform- To establish par level requirements for all types of uniforms, the factors need to know the number of employees in a different department, work profile, and material of the uniform. Another factor to consider is the turnaround time taken by the laundry.

All uniforms should be issued and controlled through the uniform room. Uniforms should be categorized into the department wise and systems should be set for receiving dirty uniforms, sending them for wash, getting them back from the laundry, and reissuing them to staff. Issuing can be done on a clean for dirty basis or on a request form, signed by departmental head or supervisor. All uniforms should be inventoried at least on a quarterly basis.

 

Ø  Guest loan item- these items are not maintained in the guest room. They are usually stored in the housekeeping store room/ housekeeping control desk and when requested, delivered to the guest, at no charge criteria. The housekeeping department is typically responsible for maintaining the inventory of the guests’ loan items, responding to the loan requests, and tracking the items in order to make sure that either they are returned back to the department or yet to collect before guest will depart from the property. Examples of guest loan item are iron and iron board, hair dryer, alarm clock, hard board voltage adaptors, hot   water bottle, rollaway beds, etc.

Par level depends on   

                     i.            Size of the hotel

                   ii.            Anticipated volume of guest’s requests

Inventory control can be done by

                     i.            Maintaining proper record

                   ii.            Doing appropriate storing and stocking

                 iii.            Regular updating of bin cards

                 iv.            Keeping regular check on on-going items

 

Ø  Guest essentials – They are items that are essential for the guest use in rooms but are not taken away by the guests, for e.g. ashtrays, etc. (though they are taken away sometimes). They can therefore be termed as recycled inventory items. Hence par levels are determined in a manner similar to room linens and other recycled items. Considering the cleaning cycle and nature of the material and its use, determine the numbers of pars.

Ø  Machines and equipment- All machines and equipment must be maintained in proper working order so employees will use them safely and effectively. The executive housekeeper needs to develop systems and procedures for controlling the hotel’s inventory of machines and equipment.

The number and types of equipment that need to be maintained in-house will depend on the hotel’s size and cleaning needs. Controlling the stock of machines and equipment involves:

1.       Maintain accurate inventory records,

2.       Establishing issuing procedures,

3.       Ensuring that safety areas are secure,

4.       Use of an inventory card/ BIN card

Bin Card- The card should specify the item name, model and serial numbers, purchase cost, expected life span-as per their usage/hour, warranty information and local service contact information. These records help determine when a piece of equipment needs replacement. The card lists all the accessories and spare parts that can be used with the machine and that are owned by the hotel. The proper storage areas and work areas should also be mentioned.
Repair Logs-these logs should be kept and filed along with the corresponding inventory card. Repair log should record the date the item was sent for repair, a description of the problem, name of the maintenance/ engineering department person who performed the repairs, what repairs were made, which parts were replaced, cost of repairs, and the amount of time the equipment was out of service. This record is used to pin-point problems, estimate repair costs and to calculate the down-time during the useful life of the machine.
Equipment log- Equipment log should be maintained to record all equipment that is issued and returned on a daily basis. The date, time issued, and person to whom the equipment is issued, location in the hotel where the equipment will be used and the time of receiving it back in the store or control desk should be noted in the log. When not in use all equipment should be stored and locked.

 Par level depends on

         i.            Size of the hotel

       ii.            Number of rooms

     iii.            Cleaning frequency

Inventory control can be done by

         i.            Regular updating of equipment logs and inventory cards

       ii.            Proper compiling of inventory card system

     iii.            Storing and using equipment according to the specified standards

     iv.            Regular maintenance check for all the machines used within the department.

 

2.       NON RECYCLED INVENTORY- those items which are consumed by the guest or used during housekeeping operations

Ø  Guest supplies- Hotels provide a variety of guest’s room supplies and amenities for the guests’ needs and convenience. The executive housekeeper is typically responsible for standardizing the storing, distributing, controlling process and maintaining adequate inventory levels of guests supply items and amenities. E.g. bathing soap, facial tissue, hangers, water glasses, mini-bar trays, match box, ashtrays, etc.

 The guest supplies could be classified in three categories: -

·       Guest expendables

·       Guest essentials (part of recycled inventory)

·       Guest loan items (part of recycled inventory)

Guest expendables – They are items that the guest is either expected to use or take away on departure from the hotel. Some supplies maybe paid for by other departments, e.g. table tent cards, guest services directory, etc. are usually paid for by the sales department or F n B department. Sometimes the soaps supplied are neither used nor taken away, but are still replenished when the room is made ready for a new guest. All expendable items are usually inventoried and stored by the housekeeping department directly. The types and quantities of guest supplies that a hotel routinely provides depend on the hotel’s size, clientele and service level.

Inventories are controlled by establishing pars, taking physical inventories and maintaining records. Par levels have to be established for the main store, floor pantries and room attendant trolleys. Along with the par level, reorder point will also be mentioned. Inventory levels for printed materials and stationary will depend on their usage rates. Writing papers and envelopes may need to be changed regularly, while TV tent cards, instruction sheets, etc. are a relatively permanent feature. Occupancy levels, usage rates, safety levels, lead-time quantities and purchasing schedules are considered when determining minimum and maximum inventory levels for these.

 Par level depends on

         i.            Usage rate (for supplies)

       ii.            Forecasted number of occupied rooms

Inventory control can be done by

         i.            Frequent monitoring

       ii.            Tracking pilferage ratio and consumption ratio

  

Ø  Cleaning supplies- Cleaning supplies and small cleaning equipment items are a part of non-recycled inventory in the housekeeping department. These supplies are consumed or used up in the course of routine housekeeping operations. A par for cleaning supply item is actually a range that is based on two figures:
• Minimum inventory quantity 
• Maximum inventory quantity
The on-hand quantity for a cleaning supply item should never fall below the minimum quantity established for that item. Minimum quantities are established by considering the usage factor associated with each item. Usage factor refers to the quantity of given non-recycled inventory item that is used up over a certain period.

The minimum quantity for any given cleaning supply is determined by adding the lead-time quantity to the safety stock level for that particular item.

1)      The lead-time quantity refers to the number of purchase units that are used up between the time that a supply order is placed and the time that the order is actually received.

2)      The safety stock level for a given cleaning supply item refers to the number of purchase units that must always be on hand for the housekeeping department to operate smoothly in the event of emergencies, spoilages, unexpected delays in delivery or other situations.

The maximum quantity established for each cleaning supply item refers to the greatest number of purchase units that should be in stock at any given time.

1)      Consider the amount of available storage space in the housekeeping department and the willingness of suppliers to store items at their own warehouse facilities for regular shipments to the hotel.

2)      The shelf life of items needs to be taken into consideration.

Controlling of inventory of cleaning supplies involves establishing strict issuing procedures to regulate the flow of products from the main storeroom to the floor cleaning closets. It also involves maintaining accurate counts of the products on hand in the main storeroom. Points to remember planning inventory levels for the cleaning supplies are:

·       Based on usage rates for the various cleaning supplies under different occupancy levels, the executive housekeeper can determine par levels for every floor pantry,

·       As per the floor need, cleaning supplies can be taken by the GRA from the housekeeping main storeroom,

·       Usage rate can be easily checked by monitoring the issuing record of supplies from the HK store.

·       Floor cleaning closets/ pantries can be inspected on a regular basis to ensure the over storing or misuse of any inventory item.  

·       A perpetual inventory of all cleaning supplies is often used in conjunction with a par stock system.

·       The self-life of certain items needs to be taken into account. The quality or effectiveness of some products deteriorates if they are stored too long before being used.

·       Maximum quantities should not to be set so high that large amounts of the hotel’s cash resources are unnecessarily tied up in an overstocked inventory.

Inventory control can be done by

                                 i.            Maintain proper consumption record (purchase and issue records)

                               ii.            Tracking misuse/pilferage constantly

 

STOCKTAKING

Definition: to maintain stock sheets for all areas and items so that exact stock will be identified easily is termed as stocktaking.

Points to remember

·       Record all deliveries, requisitions and issues, as well as breakages, variances etc. To ensure that all items are recorded and all movement tracked

·       Keep stock sheets up to date. Some stock is counted daily, weekly or monthly, depending on the area and frequency of use.

·       Stock sheets should also contain details of the each item, the supplier, the number of items per case or container, the price of each case/item, opening stock, purchases, total stock, Total value of items used, closing stock, and value of closing stock.

·       Damaged items should be kept separately, recorded and handed to the appropriate person, according to procedures, and for stock control purposes.

Stock taking can be done on with th help of following methods:

·       Perpetual stock taking or continuous inventory-It is a method of accounting for inventory that records detailed inventory records of the department.

·       Physical inventory- The physical count to measure the level of inventory items present in the department            

Safe guarding assets can be done by following steps mentioned bellow:

·       Tracking demand and supply ( to identify theft by a staff member, delivery driver or guest)

·       Frequent stock taking (for accuracy in records by staff members)

·       Maintaining storing standards and frequent spot checking (to check spoilage and pilferage of the inventory items)

·       Recording discards, shortage, mix-ups, damaged items (to track mishandling, misuse of the items)

STOCKTAKING FREQUENCY
RECYCLED INVENTORY ITEMS			NON RECYCLED INVENTROY ITEMS
Linen	Monthly/ bi-monthly/ Quarterly		Guest supplies	Weekly/ fortnightly
Uniform	Annually		Cleaning supplies	Weekly/ fortnightly
Machine and equipment	Quarterly/ annually		Stationery	Weekly/ fortnightly
Furniture	Annually

Stock rotation

Definition: Stock rotation ensures that same items were not in use every day, and would extend the life of the stock.

 

Importance

·       If items are not rotated they will wear out unevenly and need to be replaced sooner.

·       Goods that are not rotated will become stale smelling or possibly creased and soiled, and will need to be re-cleaned.

·       Mildew may be more likely to form if items are not rotated correctly.

·       Certain items like cleaning agents and customer supplies may have expiry dates and would need to be rotated to ensure that the items do not expire.

·       Poor stock rotation may result in damage or spoilage of goods and items, which will have to be replaced. This will cost the establishment more money.

 

Procedure

·       Incoming, new stock should be stored so that it is not placed with existing stock.

·       New items are usually placed behind older items, or on different shelves, so that older items are used first according to the FIFO (First in First Out) principle.

·       Boxes or containers or perishable stock items such as cleaning supplies/guest supplies should be marked with the date of delivery, and stored with the most current date behind older stock. This will help to identify which items should be used first.

·       Color coded tabs or systems are an easy way to identify different batches of stock e.g. red for oldest items, then yellow, and blue for new stock.

·       Clean linens direct from the laundry should be stored on different shelves from items laundered earlier. This will allow linens to “rest” before being re-used.

·        Regular spot checks of store rooms and storage areas will help to ensure that stock rotation systems are being followed correctly.

·       Staff training will also ensure that procedures are followed.

AREA INVENTORY LIST

It is the part of pre-opening process, which is used by the executive housekeeper to do the systematic planning process for the department. For this, EHK have to identify the areas to be taken care most and then the detailed check list is prepared for the hotel overall as well as for individual areas inventory list is prepared and handled by the supervisor and attendants respectively.

Sample guestroom area inventory list

BEDROOM		BATHROOM
·       Doors, locks, chains, stops ·       Lights, switches ·       Ceiling ·       Walls ·       Floor tiles ·       Woodwork ·       Drapes and hardware ·       Windows ·       Heater/ AC settings ·       Telephone ·       Television and radio setting ·       Headboards	·       Spreads, bedding, mattress ·       Dressers, nightstands ·       Lamp shades, lamp, bulb ·       Chairs, sofa ·       Ashtray and waste paper basket ·       Carpet ·       Pictures and mirrors ·       Closet and safe ·       Minibar ·       Amenities	·       Bathroom doors ·       Lights, switches ·       Walls ·       Floor tiles ·       Ceiling ·       Mirrors ·       Tub, grab bars ·       Shower head	·       Vanity Unit ·       Fixtures, faucets ·       Toilet-flush handle, cistern, seat ·       Tissue holder ·       Sani-bin ·       Exhaust vent ·       Amenities

 

Forms and formats used in the Inventory Process

 

INVENTORY COUNT SHEET (ROOMS)

     Floor/ section: ……………..                        Name of room attendant…………….                  Date …………...

Room no.

Bed sheet

Duvet cover

Pillow cover

Bed cover

Mattress protector

Towel

Bath mat

Single

Double

Singles

double

Singles

double

Single

Double

Face towel

Hand towel

Bath towel

101

102

103

 

INVENTORY COUNT SHEET (ROOMS)

           Floor: ……………..                              Name of floor supervisor……………….                      Date: ……………..

Room no.

Bed sheet

Duvet cover

Pillow cover

Bed cover

Mattress protector

Towel

Bath mat

Single

double

single

Double

Single

Double

single

double

Face towel

Hand towel

Bath towel

101

102

103

Maid cart-1

Maid cart-2

Floor pantry

Soiled linen from hamper

TOTAL

       Auditor’s signature …………………                                                     House keeper signature…………………  

 

 

MASTER INVENTORY SHEETS (Rooms)

Month……………….                                                                                                         Date ………………….

Item	Guest rooms	Floor pantry	Maids trolley	Laundry		Linen room	Linen store (new)	discard	total
				soiled	Under processing

INVENTORY COUNT SHEET (Restaurants)

     Outlet ………………                                                                                   Restaurant Manager…………….

Location	Table cloth			Table napkins	Waiters’ clothe	Napery	Tray cloth
	oval	Square	rectangle				small	large	oval
On table
Side station 1
Side station 2
Side station 3
Soiled linen
Store
TOTAL

 

Auditor’s signature…………………                                                   House keeper signature………………….

 

RESTAURANT INVENTORY COUNT SHEET

    Month…………….                                                                                                                Date…………………

Item	Outlets	Room service	Banquets	Laundry	Linen room and store	TOTAL	Last inventory	Variance

 

Auditor’s signature…..………...                                                             House keeper signature……………

 

 

MASTER LINEN INVENTORY SHEET

Prepared by …………………                                                                                              Date…………………….

PART I	1. Item
	2. Last inventory date
	3. New purchase
	4.Subtotal  (2+3)
	5. Discard
	6. TOTAL  (4+5)
PART II	7. Main store room
	8. H. K. Store room
	9. Linen store room
	10. Linen room
	11.laundry
	12. Guest room
	13. Maids trolley
	14. On roll away beds , cribs etc.
	15. TOTAL ON HAND (Add 7 to 14)
PART III	16. Loss (6-15)
	17. Par stock
	18. Amount needed (17-15)
	19. On order
	20. Need to order

 

 

UNIFORM INVENTORY SHEET

QTY.	SIZE	DESCRIPTION	UNIT COST
		FRONT DESK
		Shirts
		Tie
		Trouser
		Saree

 

GUEST LOAN ITEM REGISTER

 

Date	Room no.	Loan item requested	Call received		Delivery		Received back
			Time	Taken by	Time	Delivered by	Date	Received by

 

 

 

 

GUEST CALL REGISTER

DATE…………                                                                                            SHIFT…………….
Room no./ Area	Call-in time	Request made for	Request given by	Request taken by	Delivering time	Remarks

 

 

ABC HOTEL HOUSEKEEPING DEPARTMENT BIN CARD DATE…………..                                                                                                                            S. No.…………………..   ITEM NAME…………………………………………………. MODEL/ SERIAL NO. …………………………………………..….. PURCHASE COST…………………………………………………………………. ACCESSORIES……………………………………………………………………………….… SPARE PARTS……………………………………………………………………………………………… EXPECTED LIFE SPAN……………………………………………………………………………………..………….. WARRANTY INFORMATION……………………………………………………………………………………………………… VENDORS NAME/ ADDRESS/ CONTACT ……………………………………………………………………………….………………. ……………………………………………………………………………………………………………………………………………………………..                                                                                                                                                 ……………………………………                                                                                                                                             AUTHORIZED SIGNATURE

 

 

REPAIR LOG

DATE (equipment gone for maintenance)	DESCRIPTION (of maintenance)	SENT TO (maintenance dept./ local service center)	EQUIPMENT TAKEN BY (name of the person)	DATE (received back after up-dation)	REPAIR done	PARTS replaced	COST of repair	DOWN-TIME

 

EQUIPMENT LOG

                                                                                                 MONTH…………………………

EQUIPMENT NAME	ISSUING DATE/ TIME	NAME OF PERSON (whom equipment is issued	LOCATION (where equipment to be used)	RETURN DATE/ TIME	REMARKS

 

GUEST SUPPLIES INVENTORY SHEET

MONTH………………………..                                                                                          YEAR………………….

Items	Inventory on hand	New purchase	Total	Amount used	Room nights	Usage per room	Unit cost	Cost + tax	Value per room night	Total inventory value	Monthly expenditure

 

INVENTORY CONTROL SHEET

(Supplies and Equipment)

                                                                                               Month……………………….

Item	Beginning inventory (a)	Purchase (b)	Total (a) + (b)	New purchase/ issue	Ending inventory
CLEANING SUPPLIES
All-purpose cleaner
Glass cleaner
Carpet shampoo
EQUIPMENT
Kentucky mops
Yard brooms
Vacuum cleaner