1. Chapter 11 Facility Engineering & Maintenance

2. 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

3. 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

4. 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

5. 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

6. 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 % 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

7. 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 (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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. Managing Utilities
80% of total utility costs for hotel are actually fixed
Energy costs present % 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

18. 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

19. 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

20. 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

21. 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