8.

Picture frames are dust free and arranged properly. If fresh flowers or plants are used, they are not wilted.

9.

Floral or plant decors are dust free and arranged properly. If fresh flowers or plants are used, they are not wilted. 10. Windows are thoroughly dusted and glass is polished. 11. No irrelevant and substandard posters, notices posted. (notices, posters not handwritten, tacked, pinned or taped) 12. No safety hazard found in the area. No. of deviations: PANTRY / DESIGNATED AREAS: 1. 2. 3. 4. 5. 6. 7. 8. 9. Tables and chair are dust free, have no damaged properly arranged. Tables are immediately clean of left over soiled plates etc. Floors are clean, scrubbed, no damage dry and not slippery No kitchen appliances like refrigerator, microwave oven toaster, coffee maker that are left unattended or unplugged when not in use. Appliances like net microwave, etc are dusted; in working condition. No obstruction and unnecessary materials within the premises. Ovens, microwave stoves are cleaned of accumulated grease and food particles. There are no signs of pest infestation. Eating utensils are washed and wiped dry immediately after use

10. No toxic or poisonous material found within the area kike Lysol, insecticide. 11. Panty area is free of any possible source of contamination like sweepers, dustpan, mop water, smelling, wet garbage 12. Walls and ceiling are dust free, no cobwebs nor spots seen. 13. Garbage bins are covered lined with plastic, disposed before the trash will overflow. 14. There is no visible safety hazard like dangling wire, open outlet, etc 15. Faucet, lavatory, sink are sanitized and kept dry. 16. No irrelevant and substandard posters, notices that are posted (notices, posters not handwritten, tacked, pinned or taped.) No. of deviations: F. STORAGE AND RECORDS MANAGEMENT AREA 1. Area is free of liters and clatter.

2. 3. 4. 5. 6. 7. 8. 9.

No obstructions found in floors and within premises. Unnecessary documents and files are disposed, tagged. Files/documents of high use are in the most accessible location Files/materials of low use are in a central location. Office supplies and forms neatly stacked and arranged in boxes. Boxes, folders are arranged in order and labeled. Folders/shelves, cabinets are dust free. Files are color coded for proper classification

10. No files or papers stacked on top of surfaces such as filling cabinet and window sills. 11. Windows are thoroughly dusted and glass is polished. 12. Doors are dust free, knobs polished. 13. No irrelevant and substandard posters, notices posted Notices, posters not handwritten, tacked, pinned or taped) 14. Wastebaskets are installed, not overflowing, no foul smell. 15. Files are put back into their proper folder/location right after use. 16. Confidential files are segregated, labeled and secures. No. of deviations: COPIER CORNER (Check before of after work hours) 1. 2. 3. 4. Copier is Clean, dust free and free of removable stains. Paper, logbook, ball pens are neatly arranged and not clattered. There are no unnecessary files and materials found in the area. There is no damage to equipment No. of deviations: G. WORK STATION OF VARIOUS DEPARTMENT 1. 2. 3. 4. Not congested, no clatter nor eyesore. No irrelevant and substandard posters, notices posted (notices, posters not handwritten, tacked, pinned or taped) Floor is clean, swept/vacuumed and without damage. The area no overflowing and smelling waste containers found.

5. 6. 7. 8. 9.

Files in cabinets/drawers are classified, labeled in alphabetical order. Unnecessary files have been sorted and disposed. There is no evidence of pest infestation. Files/materials used are put back to their respective folders after use. No safety hazard found like dangling wire, open outlet, damaged tiles.

10. Employees exposed to work hazards are equipped with protective device. VAULT 1. 2. 3. Floor and walls are clean, free of removable dirt, no cobwebs on walls and ceiling, well lighted. Pilfer able items are kept inside cabinets.

Filling cabinets and boxes are arranged in an orderly manner, not crammed nor clattered; dust free. FAX /COPIER CORNER (check during work hours); 1. 2. 3. Only necessary materials found like fax, printer, table, tray/folder for messages, logbook, ball pen. Incoming messages are organized and not stale (received not more than an hour earlier) Clean, dust free and free of removable stains.

Other observations. FILLING CABINET / OTHER CABINETS (not more than 3 feet high) 1. 2. 3. 4. 5. 6. Nothing is found on top of cabinets. If with keyhole, drawers are locked. Found clean and dust free. Each drawer is labeled. Boxes are presentable and labeled, neatly and safely stacked. Space between filling cabinets/boxes and ceiling at least 12 inches.

DES TOP/TABLE during work hours 1. 2. 3. 4. Only allowed items are left on top of the table; computer, printer telephone, In/out tray, table lamp, adding machine, working files, writing materials, etc. Necessary files found on the desk are properly classified and labeled, arranged in order, not cluttered, nor crammed. Limited personal items found (if possible only two like mug/drinking glass, picture frame, flower vase, tissue holder) Table top clean, no removable stain.

5. 6. 7. 8. 9.

Computer monitor, CPU, keyboard and printer dust free, and free of removable stains; No trash or clatter, clean as you go is practiced. In/ out tray contains only CURRENT work related documents. Passwords used when necessary to secure confidential file. Official screensaver and wallpaper are used when required.

10. Confidential files are not kept lying around and protected from the access of non authorized personnel. 11. No safety hazard found 12. Cell phones, bags, wallet, jewelries and other expensive personal items are kept and not left unattended. 13. Trash is disposed, not made to overflow, no wet garbage. 14. Jacket, blazer, sweater left overnight are neatly folded and placed on the seat of swivel chair. 15. Swivel chair properly PUSHED BACK against the work table. Qty. of deviations; H. STANDARDIZATION OF HOUSEKEEPING MAINTENANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. Housekeeping procedures are established and understood by all. Standards of 5s cleaning, order, safety are clearly established. Monitoring forms are available; prepared based on prescribed standards. The housekeeping responsibilities are clearly defined and distributed to housekeeping staff. Cleaning tools/materials are available; staff is taught about their proper use. Par stock of supplies is established and a budget for housekeeping maintenance is provided for. There is a fixed schedule for general cleaning & preventive maintenance. Rules of office decorum are established and known by all concerned. An organized monitoring system is in place.

10. Monitoring team is organized with defined tasks and responsibilities. 11. Monitoring tools are provided for efficient monitoring. 12. There is proper scheduling and delegation of tasks. Qty. of deviations; I DISCIPLINE & SUSTENANCE OF THE 5S

1. 2. 3. 4.

A regular compliance audit is done by designated auditors. Audit reports are documented and discussed with all concerned. Deviations from standards and targets are investigated and corrected.

5.1 5.2 5.3 5.4 5.5 5.6 5.7

Erring employees are confronted and made responsible for their deviations from standards and procedures. 5. Compliance to office decorum is observed. No food and drinks inside the work area. Staff avoids eating in work area to prevent pest infestation. No playing of music thru radio, walkman, CD, iPod, or PC except when use is job-related tasks. Use of earphones not allowed except when for job-related use. Staff is wearing proper uniform and ID. Non-uniform personnel are in their appropriate corporate attire. No giggling, loud conversation during work hours.

6 7 8 9

Consumption of stocks is done sparingly; par stock requirements are identifies and maintained. Excessive consumption of supplies is tracked down and acted upon. Safety hazards are immediately eradicated. Staff meet productivity standards based on a given productivity ration

10 Accomplishment reports are prepared by staff, validated by supervisor. 11 Cleaning supplies are stored in their storage area after use. 12 Chemicals are diluted properly and used sparingly. 13 Equipment are regularly checked for their condition and repaired whenever necessary. 14 Losses/pilferages and equipment breakdown are documented, accounted for and given appropriate action. 15 Regular and on-time inventory of supplies and materials is undertaken. 16 Unaccounted kisses and breakages are investigated. 17 Inventory variance is determined and accounted for. No. of deviations

J. SAFETY &SECURITY 1. Safety/security hazards found 1.1 Obstructions like scattered rags or electric cords in corridors, passageways, floors,etc. 1.2 Grease / spills on floors Where When Details

1.3 Dangling wires or open electrical outlets 1.4 Overloaded electrical outlet 1.5 Grease build up on ovens, stoves, etc., 1.6 Chips or cracks on glasses/cups 1.7 Slippery/wet floors or non slip floor materials 1.8 Damaged electrical flexes, leads, plugs, switches, sockets 1.9 Loose gas connections, or presence of leak in tanks 1.10 Flammable object or substance found in pantry 1.11 Defective electrical fixtures. 1.12 Gas cylinders no t protected by substantial guards to prevent Damage to the cylinder and the installations. 1.13 Obstruction in fire exits doors and hallways 1.14 Fire extinguishers/hoses/sprinklers that are defective and missing in their designated location. 1.15 Suspicious looking objects found in the premises.

2. First aid kit available ( ) yes ( ) no 3. Building emergency procedures are available ( ) yes

( ) inadequate ( ) no inadequate

Summary of scores
Areas No. of deviations RECEPTION/WAITING AREA PUBLIC COMFORT ROOMS CORRIDORS, LOBBY & HALLWAYS CONFERENCE ROOM PANTRY AREA STORAGE & RECORDS MGT WORK AREAS OF DEP.S Score Remarks Critical observations

A. B. C. D. E. F. G.

H. I. J.

STANDARDIZATION O F5SS DISCIPLINE/SUSTAINABILITY OF 5 SS SAFETY &SECURITY

TOTAL

Scoring Key
Number of deviations 0 1 2 3 More than 3 X Poor

Place under remarks

Fair Good-average Very good Excellent

x X X x

Exhibit 6.10 inspection Checklist Public Area Maintenance Place A / if condition meets standard and 0 if it is below standard.

Task A. Sweeping

Standards Swept floors have no dust streaks nor show any mark Do dirt is left on corners, behind doors, under the carpers. Water is used sparingly Cleaning solutions are rinsed quickly, floor is dried at once. All floors are applied with thin, smooth and even finish. Stripping is done when necessary to avoid yellowing and build up in corners, baseboards, etc Streaks and lap marks are not visible. Corners and areas difficult to reach are cleaned with soft cloth Walls are spot free Water does not run-on floors and fixture All surfaces are dust free. Corners are vacuumed. Window glasses do not have smudges or watermarks. Window frames and channels are thoroughly dusted.

Condition

B.

Mopping

C.

Floor finish

D.

Wall Washing

E. F.

Dusting Window cleaning

G. H.

Waste Basket Toilet Washroom

I. J.

Vacuuming Grounds Maintenance

Waste can is underlined with plastic. Emptied and cleaned daily or as often as necessary. Toilet bowls are sanitized and cleaned inside out Refuse is removed, no film or sap remain on fixtures. No marks or streaks on walls, fixtures, door handles, other surfaces. Walls, floors are mopped, sanitized, and dried All metal fixtures, hard wares are cleaned and polished. All carpeted areas/ upholsteries are clean, dust free. All spots are removed upon discovery. Walkways. Parking spaces, planted areas are clean, no litters. Commented/concrete pavements are free of spots Pavements are scrubbed regularly, dust free. Plants are watered regularly, pruned, trimmed periodically. Soil is cultivated, fertilized periodically, planted to prevent eroding. Plant pests are controlled and eliminated upon detection. Plants in boxes are watered, maintained, replaced as needed.

3. Housekeeping Audit form Purpose this form shall be used as a tool for auditing the performance of the Housekeeping department in terms of maintaining quality standards of housekeeping maintenance. Place a / (check) on items that meet standard, an X (cross) where there is a need for improvement.
Housekeeping Standards 1. A. Cleanliness Guestrooms Rooms are immaculately clean corner to corner, top to bottom, including closets, ceiling, walls and cabinet. All furnitures are properly dusted. Mirrors and knobs are properly polished Floor is vacuumed; carpet is shampooed when needed. Grounds are free of dirt. Noted Deficiencies

B. 2.

Public Areas Corridors, hallways, function rooms are kept immaculately clean, wall to wall, corner to corner Floors are well maintained using appropriate cleaning chemical/tool. Floors /walls are free of spots and stains. Orderliness (rooms and public areas) Facilities and fixtures are installed in proper order, in the right location Require room amenities are set up in guestrooms before guest check in Linen are properly folded and installed in the right place. Bed is made up properly, mitered and wrinkle-fee.

 3. 4.

Records/documents are properly filed/kept Work area is always in order. Sanitation Sources of bacterial contamination such as wet garbage, parts, leftover. Stagnant water is eliminated. Wet garbage Is covered and immediately disposed of; All items for personal use like glass, towels, linen, catteries, are sanitized. Appropriate fumigation is executed whenever called for. Linen and Laundry Service Laundry items are picked up and delivered on time. Linen items are properly segregated and labeled. Linen in guestrooms are free of spots and stains. Laundry procedures and standards are complied with Linen in guestrooms is replenished regularly. Linen are maintained properly, stored and issued in accordance with prescribed standards. There is regularly inventory of linen. Housekeeping Standards

deficiencies

Productivity Guestrooms are made up on time, nothing is left out or unattended; All reports are submitted with complete and accurate information and on time. All cleaning tasks are done exhaustively and on time. Staff meet productivity standards based on a given productivity ration. No backlogs on critical tasks. Safety Management Rooms are always checked for possible safety hazards like dangling wires, open outlets, slippery floors, etc. Safety signs are always in place and inspected if they are in working condition. Safety of guests valuables is secured; Other observations: 7. No report of losses and damages to guests valuables caused by service inefficiency, negligence or dishonesty of staff. Guests privacy is respected. Safety hazards are promptly removed. Care of Equipment and Preventive Maintenance Par stock requirements are identified and maintained Housekeeping tolls, supplies and equipment are stored in their storage area after usage. Chemicals are diluted properly and used sparingly. Supplies and materials are consumed within the limits of the budget. Equipment are regularly checked for their condition and repaired whenever necessary. Losses/pilferages and equipment breakdown are documented, accounted for and given appropriate action. Control measures and policies are enforced to prevent losses, breakages and equipment breakages and equipment breakdown. Regular and on-time inventory of supplies and materials is undertaken. Unaccounted losses and breakages are investigated. Inventory variance is determined and accounted for.

5. 6.

Other observations 8. Guest Relations Guest is always greeted with a warm smile. Guests requests are promptly attended to. Accurate information is given when there are inquiries. Messages are received and relayed in accordance with standard procedures. Tack and diplomacy is observed in handling guest complaints Guest privacy is respected. Screening of guests calls and visitors is done with diplomacy. Other observations Housekeeping Standards 9. Administrative Efficiency and Discipline Sufficient manpower is provided. There is proper scheduling and delegation of tasks. Staffs are oriented about their duties and job requirements. House rules are strictly enforced along with appropriate sanctions. Deviations are identifies and dealt with as they arise. Grooming standards are complied with. 10. Other comments and observations Noted Deficiencies

MATERIALS CONTROL It is the responsibility of Housekeeping managers and supervisors to see to it that all housekeeping supplies are used sparingly and reasonably. They should also see to it these materials are protected from theft or pilferages and that consumption of each items is accounted for in a consumption report. The movement of stocks purchases issuances, transfers, damages shall be recorded daily in a perpetual inventory system (see inventory procedures.) Controlling Cost of Supplies To control cost in housekeeping there must be a budget for housekeeping maintenance to include the cost of labor, room amenities and consumable supplies as well as equipment and capital expenditure items. The cost of consumption must not exceed the budget. A par stock shall be established so that the supervisor knows the quantity of supplies to be ordered and replenished through requisitions (see procedures under budget preparation). The manager must see to it that the said par stock is maintained and replenished. The usage must not exceed the required quantity and budget. Consumption should always be recorded and documented and the total cost shall be compared with the budget. Any variance indicates over spending or wasteful consumption and this must be checked immediately.

The purchase of housekeeping supplies and room amenities has to be strictly regulated. Once the par stock is determined, the housekeeping supervisor can determine an order quantity that is just enough to replenish or maintain his/her par stock, thus avoiding wasteful consumption. Purchase requests must indicate on hand quantity. The order quantity will be calculated as: par stock less on hand quantity. Assuming that ordering is done within an interval of 7 days and the par stock for soaps is 350 pieces for one week, and the on hand balance is 50 soaps, the order quantity will be computed as; Order quantity = 350 par stock 50 on hand = 300 soaps to order If more guests are expected for the week, add safety stock of at least 10% of the par stock to avoid stock shortage. 11. Requisition and issuance of stock shall also be regulated. The quantity of items to be requisitioned must be computed on the basis of daily par minus stocks available in the housekeeping station. In the above example with 350 soaps as one week par, the daily par will be : 350 7 days = 50 soaps as daily par

With 5 soaps left, the requested quantity is calculated as: 50-5=45 soaps. Exhibit 6.12 PURCHASE REQUEST HOUSEKEEPING SUPPLIES
+ Items and description Size/ unit Par stock Safety stock = Required quantity On hand = Order Qty. x Unit cost = Total cost

Ordered by Supervisor

reviewed/approved by Purchasing Mgr.

Note: this form should have a pre-listing of stocks to facilitate recording. Preventing Losses of Supplies

1. 2. 3. 4. 5. 6.

7. 8.

9.

Keep track of beginning inventory of linens and other supplies. Have a custodian or stock clerk to handle the safekeeping and issuance of housekeeping supplies. He shall be made accountable for losses. Require a duly approved requisition before any item is issued to the room attendant. Issue fresh linen according to the number of soiled linens returned. Unauthorized personnel are not allowed within the stock room. Upon check out the guest, the room attendant must check at once if the standard set-up of linens is complete. Any loss should be communicated to the Front office cashier who will inform the guest who might have unknowingly placed the item in his luggage. Room attendants are required to prepare daily consumption report so that the Housekeeping section can monitor the movement of stocks as well as the on hand balance. Losses and damaged to room amenities and supplies are to be reported in the appropriate Losses and Damage Report form in 2 copies with one copy endorse to the Front Office cashier for billing and the other copy to the Housekeeping Supervisor for record purposes Linen inventory should be done regularly, every end of the well and every end of the month.

Procedures for Requisition and Reporting of Consumption: Every day the floor/rooms supervisor shall make a requisition of guestroom supplies and chemicals for room make-up, using the prescribed requisition form. This shall be forwarded to the stock clerk. The housekeeping custodian shall issue the requested items only upon receiving a duly approved requisition. He shall request the receiving party to acknowledge receipt of the items by signing in the issuance form. All requisition forms are to be filed by the housekeeping custodian for proper recording and as a reference for preparing daily or weekly consumption report. At the end of every shift, all room attendants shall submit their daily productivity and consumption report to their supervisor. This report serves as a guide in preparing the daily, weekly and monthly consumption report. All day consumption reports shall be recorded in a columnar notebook or in a computerized Daily /Weekly summary report as shown in Exhibit 6.13.

Exhibit 6.13 Housekeeping Department DAILY/WEEKLY CONSUMPTION REPORT

Date 11-05

Items Conditioning Shampoo Bath Soap Facial Tissue Toilet Tissue

Qty Consumed 30pcs 20pcs 30bxs 20rolls

Unit Cost P 5.00 P 6.00 P 15.00 P 10.00

Total Cost P 150.00 120.00 450.00 200.00

Total Consumption for the day = P 920.00 Date 11-06 Items Conditioning Shampoo Bath Soap Facial Tissue Toilet Tissue Qty Consumed 20pcs 20pcs 35bxs 36rolls Unit Cost P 5.00 P 6.00 P 15.00 P 10.00 Total Cost P 100.00 120.00 540.00 360.00

Total Consumption for the day = P 1,120.00

Controls in Stock Requisition and Issuance For control purpose, the Housekeeping stocks delivered by suppliers shall be received by a company stock clerk and stored in the central storeroom. End users like housekeeping supervisors will be issued only the quantity needed for the day. It is expected that they have already established their par stock and the quantity to be requisitioned is only meant to replenish used stocks so that the par stock will be maintained. The requisition shall be done on a daily or weekly basis using the prescribed stock requisition form. No items will be released from the storeroom without a justified and approved requisition. This must be properly acknowledged by issuing and receiving parties and immediately documented.

Procedures:

1. Supervisor shall initiate the requisition to replenish his stock by accomplishing a stock requisition form. Entries in the form include the prelisted stocks, unit cost, par stock, on hand quantity and requested quantity. 2. The requesting party shall check the on hand balance in the bin card or in an inventory worksheet and shall enter the data under the column on hand in the requisition form. 3. The stock needed will be indicated in column 3. This is equivalent to the established daily par unless there is a forecasted increase in occupancy, in which case adjustments shall be made by the supervisor, giving a bigger allowance for safety stocks. Daily Par = one week consumption / 7 days = average daily usage 4. The requested quantity shall be computed as Stock Required on hand quantity plus safety stock (if warranted) The safety stock is an arbitrary figure designed to cover for unexpected increase in consumption. 5. All requisition must be reviewed and approved by the Executive Housekeeper (or whoever is designated). In so doing, he must check whether there is an excess or shortage in quantity requisitioned by looking into the average daily usage based on consumption reports 6. Stock clerk will release stocks only when the form is properly accomplished and approved. 7. Issuances have to be acknowledge signed by the issuing the received party. 8. All served requisitions shall be kept on file with the Housekeeping Office. These will be used for updating bin cards and for taking the inventory variance.

Exhibit 6.14 STOCK REQUISITION AND ISSUANCE FORM Department Items Unit/Size Date Daily par or On hand Stock Required 3 4 Order Qty. Unit Cost Total Cost

Requested by: Issued by: Inventory of Housekeeping Supplies

Reviewed/Approved by: Received by:

One tool for controlling losses of Housekeeping Supplies is a regular inventory. There are 2 forms of inventory, namely: 1. Physical Inventory is a physical count of stocks. It should be done weekly, usually on the last day of the inventory period by the stock clerk or housekeeping custodian with a checker to validate and counter sign the records. The inventory period is usually set from Monday (beginning) 2. Perpetual Inventory is a system of inventory whereby the actual count is compared to the estimated closing balance after deducting all issues, consumption and damage/losses. Inventory records must be submitted to the Cost controller or to the Housekeeping Office on or before the cut off period. These include receiving records, served requisitions and issuances, losses and transfers. Appropriate forms shall be provided and to be filled up by the stock clerk or whoever is in charge of stock. Te stock clerk and all concerned supervisors shall be asked to account for variances. A copy of the Variance report shall be provided to them. Conducting Physical Inventory 1. Prepare a pre-listed physical inventory form. See format below. The form should indicate description of the item unit of measure (like bottle or box), unit cost and total cost. Classify and arrange stocks systematically to facilitate an accurate and speedy count. 2. If possible there should be no movement of stocks during the physical inventory no issue or deliveries except for an emergency. 3. The stock custodian shall act as counter for the counting but must be assisted by a checker to be assigned by the supervisor. 4. Proceed with the actual count and enter the actual count under actual quantity

A report on damaged, spoiled, obsolete, items must be in a separate report i.e. Losses ad Damage report. 5. Upon completion of the physical count, the stock custodian serving as counter as well as the checker who serves as witness will both counter sign the count sheets. 6. The duly accomplished physical inventory form is endorsed to the inventory clerk who will enter the figures in his inventory worksheets.

7. Physical inventory of stocks shall be done each week, with the inventory period maybe to start Monday and to end on Saturday/Sunday. 8. Damages and losses should be recorded. No item will be honored under damage or losses in the report unless there is a supporting document which is signed by the supervisor indicating that he has checked and validated the damage/loss of the item.
INVENTORY COUNT SHEET Department Size / Unit Unit Cost Actual Count Total cost

Date Conducted Items Room Amenities

Cleaning supplies

Mini bar items

Counted by Noted. By Supervisor

checked by

Conducting a Perpetual Inventory In this method, all purchases and issuances for each store item are constantly recorded in a bin card or a stock card or in a computerized inventory worksheet so that the balance on hand is always updated. Bin cards The inventory is usually kept in a bin card, maintained and updated by the stock custodian. The entries are based on the following documents, namely, the Requisition and issuance Record which indicated items received from the stock clerk (to be entered under in) the consumption record which indicated consumption in guestrooms and the Losses and damaged report (to be entered under out in the bin card.

Procedures Governing the Use of Bin Cards. 1. Assign a bin card for each inventory item. Indicate the name and description of each item as well as the serial number. 2. Indicate the established par stock and unit cost. 3. Place the beginning balance in column 5. 4. In column 1. Indicate the date of the transaction, i.e., date of issue, delivery. 5. In column 2, write the reference numbe4r of the transaction .for example, for items issued by the store room, the reference may be MRIF form no.3 (this stands for Materials Requisition and Insurance Form). 6. In colums3, under in, indicate additions to stocks like those issued to the Housekeeping section by the stock clerk and items transferred into the stock room from another location. If this b in card is being used by the central stockroom, the in refers to all delivered purchases. From the beginning balance, add all additions (entered under in) to arrived at running balance. Place the figures in column 5 (balance). 7. In column 4, under out. Indicate deductions from the available stocks through consumption, losses and damages. For the central stockroom, the out refers to issued stocks. Deduct this quantity from the existing balance and that will be the current balance. Exhibit 6.16
Item Location Par stock Date 1 STOREROOM BIN CARD code Unit cost

Reference 2

In 3

Out 4

balance 5

8. When a card is full, assign a new card and forward the balance from the last card to the new card. Inventory Reconciliation and inventory Variance. A perpetual inventory tells what is supposed to be in the Housekeeping storeroom while a physical inventory tells what is really in the storeroom. The function of the former is to provide a standard against which a physical count can be measured, item-by-item. If everything is in order, the two inventories should agree, if the count and the records do not agree, determine the source of error whether it is an error in recording or an error in counting or whether the items themselves have disappeared. Trace errors in the record by reviewing all transaction records issues, consumption, losses, transfers, etc.

Recount to check if there are errors in the physical count. If there are no errors in documentation, the variance may arise from theft or pilferage. In any case. Perpetual inventory record must be adjusted accordingly. When discrepancies reach an unacceptable level, causes must be investigated and appropriate steps must be taken to ensure that the variance will be significantly reduced if not eliminated.

Inventory Variance Report. The inventory Variance Report is generated from a perpetual inventory system whereby all additions (coming from purchases or requisitions or transfer in) are added to the beginning inventory and all deductions (coming from consumption, sales, damages, losses and transfer out are deducted from the available balance so that an expected or more accurate closing balance can be determined. The generated figures will be compared to the actual count or determined. The generated figures will be compared to the actual count or balance taken from a physical inventory at the end of the inventory period. Any difference reflects unaccounted losses which could emanate from theft or pilferages or from unrecorded or wrongly recorded transactions like pilferages or from unrecorded or wrongly recorded transactions like undocumented issues or consumption. It reflects negligence on the part of the stock custodian in safeguarding the security of stocks or in updating the necessary documentation. The inventory variance is noted; the custodian shall be confronted and made to explain. Causes of the variance should be investigated and all erring staff should be warned and given disciplinary action if the problem persists. The inventory Variance Report must be generated on a weekly or monthly basis by the designated inventory clerk. Exhibit 6.17 STOCK INVENTORY VARIANCE REPORT
Plus Items Unit cost 2 Beginning Inventory 3 Issued by store 4 Equals Total Available 5 Less Con summed 6 Less Damaged CLOSING BALANCE Equal Estimated Balance 8 Less Actual Balance 9 Equals Variance 10 Total cost 11

Procedures for Making an Inventory Variance Report 1. Write in column 1, the items for inventory, including their size, unit. 2. Indicate the unit cost in column 2. Refer to the receiving record or suppliers invoice.

3. Get the beginning inventory count what is available at the start of your inventory. Enter this data in col.3 4. Enter in column 4 all additions coming from issuances of the stockroom. Add this to the beginning inventory count and the result will be the total available. Indicate the total in column 5. 5. Enter the quantity issued to end users and consumed for the week in column 6. Making reference to the consolidated weekly consumption report. 6. Enter the quantity of losses, damaged or stolen items in guestrooms in column 7. 7. Subtract from column 5. (Total available) the total of entries in columns 6 and 7, (consumed, reported losses and damages) and the resulting data represent the expected or book balance (column 8). 8. Enter the actual balance in column 9. This represents the actual count during the physical inventory. 9. Deduct the expected balance from the actual balance and the result will be the variance (column 10). 10. Generate in column 11 the total cost of actual inventory by multiplying the unit cost by the actual count.