Module 3 lessons 4 to 6 par stock,inventory control and stock-taking

MODULE 3
MANAGING INVENTORIES
HM 405: Elec. Housekeeping Operations
Prepared by:
Prof. Rowena R. De Leon

LESSON 4
Prepared by:
PAR STOCKS

Prof. Rowena R. De Leon HM 405: Elec. Housekeeping Operations
4.1 INTRODUCTION
In the Hotel Industry, par stock is the widely used term which is the standard way to
determine the minimum level of supplies to meet daily demands of daily hotel operation,
Proper application of par stock can ensure smooth functional activity.
What is the first and most important task in effectively managing inventories?
Determining the par level for each inventory item. Par refers to the standard number of
inventoried items that must be on hand to support daily, routine housekeeping operations.
Par levels are determined differently for recycled and non-recycled inventories. They are
directly related to the usage rates of different items used in the all departments. Inventory
levels for recycled items are measured in terms of par number or a multiple of what is
required to support day-to-day functions. Inventory levels for non-recycled items are
measured in terms of a range between minimum and maximum requirements. What should
happen when quantities of a non-recycled inventory item reach the minimum levels?

Cont’d…
Importance of Par Stocks
1. To make correct and efficient investment of capital.
2. To prevent over stocking.
3. To make optimum use of space.
4. To ensure proper supply at all times.
5. To help effective budgeting.
6. To simplify inventory taking.
7. To bring about control.

4.2 How to Establish Par Stock
This sections below give a simple way to establish par stock figures.
Linen
Determine the requirement of each guest room. This is multiplied five times as per the
following cycle:
 One set of linens in the room (bed linen)
 One set in the laundry (in washing process)
 One set in transit
 One set in main linen room
 One set linen in pantry room / maid trolley

PAR STOCK
LEVEL

Cont…
Uniforms
The par stock of uniforms is determined on the basis of cloth material and
job positions and the nature of jobs. For changes are kept for uniforms changed
daily such as waiter coats, utility worker uniforms, etc. More specialized
uniforms may have turnover of two to three times only, in view of cost. The cycle
of par stock is as follows:
 One Change in the laundry
 One change in the uniform room
 One change in the housekeeping room
 One change in use

4.3 PAR STOCK/LEVELS
 Problems related to par stock:
1. Overstocking or too many circulation may result in spoilage during storage
(space problem) leads to abuse of linen (theft, misuse) and low
productivity in the laundry.
2. Under stocking or too few circulation may result in guest complaints,
extended laundry operation hours, increase laundry cost (payroll),
decreased productivity by staff waiting for linen and a shortening of useful
life for linen because it cannot rest.

Cont…
 What must executive housekeepers do to avoid shortages?
 What are House Setups?
 Is the hotel’s laundry cycle an important factor in determining linen pars?
The laundry cycle in properties with on-property laundries should maintain three par of
linens: one par- laundered, stored and ready to for use today; a second par –
yesterday’s linens which are laundered today: an a third par- linens to be stripped
from rooms today and laundered tomorrow. Extras requirements must also be taken
into consideration.
The second factor to consider when establishing linen par levels is the replacement of
worn, damaged, lost, or stolen linen. A general rule of thumb is to store one full par
of new linens as replacement stock on an annual basis.
The third factor is to be always prepared for emergency situations. This suggest that
with the above factors to be considered a minimum of five par of linen should be
maintained on an annual basis.

LESSON 5
Prepared by:
INVENTORY CONTROL

5.1 CONTROL OF LINEN
Control of linen falls in three areas of
activity:
1. Hygienic standard and appearance of
linen.
2. Daily routine exchange of linen
between floors and departments, linen
room and laundry.
3. Purchase records, inventories, stock-
taking and stock- taking records.
Handling linen from purchase to use to
laundering and storage before it is used again is
a difficult task requiring much expertise as well
as close supervision. Each system has its own
merits and linen control must be balanced
against saving time and wages/ money.
Primarily, purchase records must be
correctly maintained as they form the basis of
stock taking. Daily records keep a track of linen
on a day-to-day basis. It is also necessary to
maintain a record of condemned linen and any
remakes from these discarded items to provide a
clear picture during stocktaking.

5.2 INVENTORY CONTROL OF LINEN
Since uniform and linen are heavy investments, it is necessary to keep a close control
on this very important asset. Effective control is possible through the following practices:
a) Control on misuse, shortages and mix-ups
b) Proper storage
c) Regular stock-taking
d) Spot checks
e) Proper supervision

Cont’d…
Policies and Procedures relating to linen inventory control must address:
How and where linens will be stored?
When and to whom linens will be issued?
How to monitor and control the movement of linens through the laundry cycle?
Effective communication between the executive housekeeper and the laundry manager
will ensure that an accurate daily count of all linen is received from and sent to the laundry.
Also this will help with spotting shortages or excessive amounts of linen being circulated.
Storage: laundered linen should rest in storage for at least 24 hours. This helps increase the
useful life of linens an provides an opportunity for wrinkles smooth out in permanent press
fabrics.
Linen Storage should also be:
Relatively humidity free
Adequately ventilated
Shelved with smooth free access
Kept locked at all times

5.3 ISSUING OF LINEN
What is a Floor Par?
The quantity of each type of linen that is required to outfit all rooms serviced from a
particular floor linen closet.
A linen par should be established and posted in each floor linen closet. The
distribution of this linen is based on the information received from the Occupancy report
generated by the front desk. The laundry manager will set aside the required amount of
clean linens and stores excess clean linens in the laundry distribution room. These
distribution rooms are usually stocked to full par each day, in the evening, so that the
morning shift is fully prepared to carry out their required task without delay. Replacement
linen is required for torn, stained and excessive worn linen. Damaged or soiled linen
should be placed in special discard containers and hand-delivered to the main
housekeeping office. The laundry manager will increase the floor distribution count the
next day to accommodate the need for replacement linen.

5.4 INVENTORY CONTROL OF MACHINE AND EQUIPMENT
The executive housekeeper is responsible for seeing that members of the
housekeeping department have the proper tools to carry out their assigned task.
Inventory Control of Machines and Equipment involves maintaining accurate
inventory records, establishing issuing procedures an ensuring that storage areas are
secure.

5.5 INVENTORY CONTROL OF CLEANING SUPPLIES
Controlling the 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.
By recording both purchases and issues of cleaning supplies the executive
housekeeper can monitor the actual usage of each product kept in inventory.
a) The Minimum Quantity: refers to the fewest number of purchase units that should be in
stock at any given time.
b) The Lead Time Quantity: refers to the number of purchased units that are used up
between the time that a supply order is placed and the time it is actually received.
c) The Safety Stock Level: 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,
spoilage, unexpected delays in delivery etc. etc.. By adding B and C the executive
housekeeper can determine the minimum number of purchase units that always needs
to be stocked.
d) The Maximum Quantity: refers to the greatest number of purchase units that should be
in stock at any given time. What factors should be considered when determining
maximum inventory quantities? Also why must they not be set too high?

5.7 INVENTORY CONTROL OF GUEST SUPPLIES
Guest supplies: Bath and facial soap, toilet and facial tissue and hangers, sewing
kits, pens, laundry bags, shower caps, shampoos, conditioners etc
Establishing Inventory Levels for Guest Room Supplies: would be the quantity of each
guest supply needed to outfit all occupied rooms in the hotel one time. {see ex 11 on pg 138}
Inventory Control of Guest Supplies: are done similar to that of cleaning supplies. Par levels
are established, physical inventories are taken, and records maintained.
Printed Material and Stationary: Letter heads, postcards, writing paper maps, brochures,
service menus, etc etc…
Par stock levels for stationary items are established in the usual manner for non-recycled
inventory items. Occupancy levels, usage rates, safety levels, lead-time quantities, and
purchasing schedules are considered when determining minimum and maximum inventory
levels

LESSON 6
Prepared by:
STOCK-TAKING

6.1 Stock Taking
Stock taking is counting what you
have (actual or physical stock) and
comparing it with what you are supposed
to have (book or recorded stock). It is an
essential activity that must be carried out
at regular intervals. Any discrepancies
should be accounted for and adjusted in
the records. It is an operational necessity
in order to be able to predict future
requirements. Stocktaking acts as a
control measure by highlighting
discrepancies, thereby prompting
investigation. It also acts as a deterrent
against pilferage. It also ensures rotation
of stocks as well as helps to generate
purchase orders as replacements to cover
shortages.

6.2Procedure for Linen Stock Taking:
Departments concerned must be intimated
at least one day in advance. All linen must
be counted on the same day or at least the
similar type linen is counted at a time
(Room Linen is separated from F & B
Linen), so as to prevent ‘borrowing’ to
make up deficiencies. A convenient time is
chosen when all linen movement can be
halted without causing too much of a
problem to the operations.
Figure 2 Linen Stock Register

Procedure of Stock-taking
1. Identify all locations of linen. These locations will be:
 Beds in the guest rooms,
 Floor linen pantries
 End of chutes receiving soiled linen from floors at the laundry stop.
 Linen in the laundry-in wash, in hampers, at the presses, in storage shelves and in
trolleys laden with laundered linen ready for delivery to the linen room.
 Linen room
 Linen stores
2. Linen stock-taking is done at the end of the morning shift when guest rooms have been
made for the day.
3. All floor linen rooms are sealed.
4. All chutes are sealed
5. Laundry delivery carts are frozen for dispatch.
6. Linen store is sealed.
7. Linen room are sealed

Cont..
8. The stock-taking team consisting of the auditor from accounts, ledger accountant, linen
supervisor and the housekeeper will start physical inventory count at each location. They will
complete an Inventory Count Sheet-Room on each floor.
9. The housekeeper will transcribe the information of all the floors onto a Master Inventory
Sheet.
10. A similar counting exercise is done for the Restaurants. Restaurant stock-taking is
performed after 3 P.M. when restaurant close after lunch. A 24-hour restaurant like the coffee
shop may take its inventory after 12 midnight when the traffic is slow. The locations of
restaurant linen are:
 Table tops
 Side-station shelves for fresh linen
 Soiled linen hampers
 On trays
The housekeeper will have a separate Inventory Count Sheet-Restaurants
11. She will transcribe the information onto the Master Inventory Count Sheet- F&B. In
reality, there will be several dimensions of table clothes and tray clothes. The format will fit
the exact requirements of the establishments.

Cont’d...
12. The auditor transcribe all the information onto the Inventory Control Chart-Rooms.
13.The auditor transcribe all the restaurant linen information into the Inventory Control Chart-
F&B.
14. The statements are further consolidated by the auditor and financial controller into a
Master Inventory Sheet.
15.The Master Inventory Sheet will be shown to the General Manager for his comments and
signed off before it is shown to the owner.

6.3 LINEN HIRE
Hiring linen is uncommon, but many
hotels in other parts of the world do not
purchase linen, and prefer to hire
laundered linen from a hiring company.
Linen hire companies supply clean linen to
hotels on a rental basis on contract. The
system has both advantages and
disadvantages.
Advantages:
 Initial purchase investment is eliminated.
 No laundering of linen is necessary.
 Less storage space.
 Less staff which means fewer salary
cheques to pay.
 No need to order linen, so linen purchase
function is eliminated.
 No repairing of linen by the hotel/ small
tailoring department.
 It is ideal for spasmodic trade such as
seasonal hotels, by avoiding capital
expenditure and the need to store seldom/
sparingly used linen.
 Linen hire charges may be no greater than
the combined depreciation and laundering
costs.

Cont’d….
Disadvantages:
 No individuality.
 Choice is limited – the linen
specifications, sizes and standards may
be different from those required by the
hotel.
 No cut-downs or makeovers possible.
 Damages have to be paid for, usually at
a higher rate.
 The hotel is totally dependent on the
hiring company.
 There is no control over the quality of
wash.
 Linen supply may be affected by bad
weather or strikes causing a breakdown in
operations.
 If low occupancy, there is a loss due to
unused linen.
 Excess / emergency requirement is
charged at the current rate.
 Guest laundry will have to be dealt with or
co-ordinated with a commercial laundry.

THE END
HM 405: Elec. Housekeeping
Operations

Module 3 lessons 4 to 6 par stock,inventory control and stock-taking

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Module 3 lessons 4 to 6 par stock,inventory control and stock-taking