Chapter 11 Facility Engineering & Maintenance

Goals of E&M department Role of E&M Department Goals of E&M department Protecting and enhancing financial value of building and grounds for hotel’s owners Supporting efforts of all other hotel departments through timely attention to their E&M needs Controlling maintenance and repair costs Controlling energy usage Increasing pride & morale of hotel staff Ensuring safety of those working and visiting the hotel Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of E&M Department: Engineering Engineering: Designing and operating the building to ensure safe and comfortable atmosphere Goals of E&M department Underpowered (or overpowered) equipment Increased building deterioration Excessive energy usage Higher-than-necessary operating costs Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of E&M Department: Maintenance Maintenance: activities required to keep a building (physical property) & its contents in good repair. Effective hotel maintenance must be: Planned Implemented Most franchisers offer many excellent checklists and suggested activities developed for the E&M department, free of charge to its franchisees. The Chief Engineer may use those checklists and suggested activities for planning the hotel maintenance activities and schedules. Recorded Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of E&M Department: Design & Renovation Building’s original design, size and facilities Quality of construction used in building Finishes and equipment specified for installation Affect Note that durable finishes and high-quality, long-life equipment may have higher purchase prices, but will generally reduce POM related expenditures over the long term Property Operation & Maintenance (POM) related costs Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of E&M Department: Design & Renovation (continued….) Building age Building characteristics and requirements 1-3 years Low maintenance costs incurred 3-6 years Maintenance costs increase 6-8 years Refurbishment required; average maintenance costs incurred 8-15 years Minor renovation and refurbishment required 15-22 years Major renovation as well as refurbishment required 22+ years Restoration required; high-maintenance costs incurred As a building ages, its maintenance challenges increase. FF&E Reserve is funds set aside by management today for future furniture, fixture, and equipment replacement needs of a hotel. Typically, FF&E reserves should average 2 - 4 % of a hotel’s gross sales revenue. Facility Engineering & Maintenance Renovation and refurbishment normally one via establishment of an FF&E reserve Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of E&M Department: Design & Renovation (continued….) Restoration: returning a hotel to its original (or better than original) condition Facts: Refurbishment and minor renovation is ongoing process in most hotels Major renovation should occur every six to ten years Restoration every 25 to 50 years, typically If restoration is not undertaken when needed, the hotel’s revenue-producing potential will likely decline Refer to Figure 11.2 (Selected Hotel Renovation and Replacement Considerations) to review the lists of specific items to be considered when planning a hotel’s short-and long-term renovation program. The first “managers at work” case study addresses the challenge that a hotel faces in deciding between repair and replacement. Ask students what factors would influence a chief engineer and/or G.M’s decision in this issue. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Staffing the Department Chief engineer Head of E&M In smaller hotels, hands-on role in the maintenance effort In larger hotels, more administrative role Maintenance Assistants Individuals with varying degrees of skills in: engineering / mechanics / plumbing / electricity / carpentry / water treatment / landscaping / grounds maintenance An effective chief engineer should have the ability to determine which tasks are best performed by in-house E&M staff rather than being contracted to outside vendors. Question 2 in “Issues at Work” (Chapter 11) presents an example of the possibility that lawn care can be done in-house or contracted to an outside vendor. This question further has a list of questions that a hotel should ask of a potential provider of lawn and landscape services before contracting with an outside vendor. Ask your students what factors would influence most their decision to select an outside vendor for the lawn and landscape work, from the lists of questions. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Routine Maintenance Day-to-day upkeep of both exterior and interior of buildings Exterior Lawn care, landscaping, leaf and snow removal, window cleaning, and painting Maintaining hotel’s exterior impacts curb appeal, operating costs, & ultimately the building’s value Interior Indoor plants, interior window washing, floor and carpet cleaning Guestroom and public space related items Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Routine Maintenance (continued….) Two ways for implementation “Replace as needed” Replacement plan that delays until the original part fails or is near failure e.g., maintenance of refrigeration compressors Systematic total replacement Replacement is based on a predetermined schedule e.g., maintenance of light bulbs in high-rise exterior highway signs When the E&M department implements a “replace as needed” program, it means a parts or equipment replacement plan that delays installing a new, substitute part until the original part fails or is in near failure; on the other hand, a “total replacement” program involves a parts or equipment replacement plan that involves installing new or substitute parts based on a predetermined schedule. Question 1 in “Issues at Work” (Chapter 11) asks students to discuss factors influencing the decision between “replace as need” approach and systematic “total replacement”. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Routine Maintenance (continued….) Work order Waldo Hotel Work Order Work Order Number: ____(Preassigned)___ Initiated By: _______________ Date: ______________Time: ____________ Room or Location: __________ Problem Observed: ______________________________________________ Received On: ____________________ Assigned To: ___________________ Date Corrected: ___________________ Time Spent: ___________________ E&M Employee Comments: _______________________________________ Chief Engineer Comments: ________________________________________ In a well-managed hotel, any staff seeing an area of concern can initiate a work order chief engineer keeps a room-by-room record of replacements or repairs made Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Preventative Maintenance Effective preventative maintenance can reduce: Long-term repair costs by prolonging equipment life Replacement parts costs because purchases of these can be planned Labor costs by allowing PM to be performed in otherwise slow periods Dollar amount of refunds and charge-backs due to guest dissatisfaction Costs of emergency repairs by minimizing their occurrence Emphasize that preventative maintenance should not be viewed as a repair program; repairs should be done as they are needed, while PM activities should be preformed as scheduled. PM is not a repair program! Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Preventative Maintenance (continued….) Sample PM task list for laundry area dryer Daily Clean lint trap Wipe down inside chamber with mild detergent Clean and wipe dry the outside dryer shell Monthly Vacuum the inside of dryer (upper and lower chambers) Tighten, if needed, the bolts holding dryer to floor Check all electrical connections Check fan belt for wear, replace if needed Lubricate moving parts The PM program should identify what is to be done, when it is to be done, how it is to be done. Daily Check pulley alignment Adjust rotating basket if needed Lubricate motor bearings Lubricate drum bearings if needed Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Preventative Maintenance (continued….) Public space Windows, HVAC units, furniture, lights, elevators, carpets Carpet care is one of the most challenging PM areas Guest room Most important and most extensive areas for PM Critical to sales effort, to retain guests, and to maintain the asset’s monetary value Refer to Figure 11.5 for a sample PM checklist used for guest rooms; The text notes that PM checklist must be tailored for each property and thus the G.M. and the chief engineer are responsible to develop a custom PM checklist and inspection schedule for guest rooms. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Preventative Maintenance (continued….) Food Service Back-of-house equipment - ovens, ranges, griddles, fryers, other production equipment Dining space used by guests - chairs and booths, self-serve salad or buffet areas, lighting fixtures, guest check processing equipment Meeting and conference rooms and equipment Landry Washers, dryers, folding equipment, water supply lines, drains, lighting fixtures, temperature control units Chemical dispenser maintenance should be an important part of the laundry PM program. Current technology is available to assist a chief engineer determine what must be maintained and how frequently to schedule preventative maintenance program Other equipment Pools and spas, front desk equipment, electronic locks, exterior door locks, motor vehicles, and in-hotel transportation equipment Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Maintenance: Emergency Maintenance is unexpected threaten to negatively impact hotel revenue require immediate attention to minimize damage require labor and parts that may need to be purchased at a premium The stronger the routine and PM programs, the fewer dollars spent on emergency repairs! Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Utilities 80% of total utility costs for hotel are actually fixed Energy costs present 3 - 10% of total operational costs, depending on hotel’s location E&M department should be concerned with conserving energy and controlling utility costs Energy management: specific policies and engineering, maintenance, and facility design activities intended to control and reduce energy usage. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Utilities: Electricity Electricity is most common and usually most expensive form of energy used in hotels. Lighting Light levels measured in foot-candle -The more foot-candles, the greater the illumination In candescent lights Inefficient, short-life, but easy to replace Electric discharge lights Longer lives, higher efficiency and low operating costs Refer to Figure 11.5 for a sample PM checklist used for guest rooms; The text notes that PM checklist must be tailored for each property and thus the G.M. and the chief engineer are responsible to develop a custom PM checklist and inspection schedule for guest rooms. Lighting maintenance (lamp repair, bulb change, and fixture cleansing) must be an integral part in PM program. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Utilities: Electricity (continued….) Heating, ventilation, & air conditioning (HVAC) Heating components Electricity is not cost-effective in cold climates Use natural gas, LPG, steam, or fuel oil Cooling components Effectiveness of cooling system dependent on Original air temperature & humidity of room to be cooled Temperature & humidity of chilled air entering room from HVAC Quantity of chilled air entering room Operational efficiency of air-conditioning equipment Refer to Figure 11.5 for a sample PM checklist used for guest rooms; The text notes that PM checklist must be tailored for each property and thus the G.M. and the chief engineer are responsible to develop a custom PM checklist and inspection schedule for guest rooms. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Utilities:Natural Gas Usages of natural gas Heating water for guest rooms Powering laundry area clothes dryers Powering plants to provide heat to guest rooms and public space Cooking (rapid heat production and great degree of temperature control) Refer to Figure 11.5 for a sample PM checklist used for guest rooms; The text notes that PM checklist must be tailored for each property and thus the G.M. and the chief engineer are responsible to develop a custom PM checklist and inspection schedule for guest rooms. Managed properly, natural gas is an extremely safe source of energy! Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458

Managing Utilities: Water / Waste Conserving water: Reduces the number of gallon of water purchased Reduces the amount the hotel will pay for sewage In the case of hot water, reduces water-heating costs because less hot water must be produced Waste Hotels encourage manufacturers to practice source reduction & to implement creative programs to reduce solid waste Reduce waste disposal costs by: recycling minimizing waste generation & wise purchasing Refer to Figure 11.5 for a sample PM checklist used for guest rooms; The text notes that PM checklist must be tailored for each property and thus the G.M. and the chief engineer are responsible to develop a custom PM checklist and inspection schedule for guest rooms. Hotel Operations Management, 1/e ©2004 Pearson Education Hayes/Ninemeier Pearson Prentice Hall Upper Saddle River, NJ 07458