Summary

This summary will help you to set, manage and maintain your productivity targets in the Budget & Forecast module or adjusting the hours directly in the Cockpit.
Always aim to find a good productivity target for each department depending on activity and type of business.

Intended Users

General Manager, Hotel Manager, Controller, and PMI Cockpit Owners

Instructions

1. The property revises, saves and submits all live forecasts. This usually happens around 18th to 25th of each month (excluding December when its done earlier). Please check with your property as this date can differ from property to property as well as chain.
2. This will result that all cost drivers in all cockpits are updated.
3. The hotel team then handles the productivity and/or hours in the Budget & Forecast module or hours in the individual cockpit.

There are two ways of setting productivity targets and/or hours in PMI.

Set productivity

Under the column Productivity, you enter the productivity target for each month for budget and forecast. The budget is usually filled in for the upcoming year in August the previous year. Please check with your property when its “Budget season”. Then each month the next month as well as the two consecutive months thereafter will be revised, saved and submitted. The Forecast columns in the Productivity and Hours sections are where you are making these changes. This will then, if you have a forecast and budget in the column Cost driver, automatically produce the number of hours you can use each month. Heads of Departments are then given the amount of hours they can use for the month(s) ahead and are able to make the monthly schedule(s) based on it.

There is a setting in the cockpit to lock the set productivity target even if you change the cost driver. Or you can lock the hours so when changing the cost driver the productivity target will be changed but the hours will be locked. Normally all operational departments are set to lock productivity and all administrative departments are set to hours.

Set hours

Heads of Departments can make their schedule before the month starts and produce the suggested number of hours needed. These numbers can be directly added for the specific month in the Forecast column in Budget & Forecast or directly in the specific month in the cockpit. This will then, if you have a forecast and budget in the column Cost driver, automatically produce the productivity for that month.From the schedule module, there is also the possibility to Submit from schedule to forecast.

Recommendations

When you edit the Live Forecas it will alter the number of hours you can use; for example, if the number of rooms increases for a future month, this will affect all cockpits with a productivity target connected to a cost driver that is based on the number of rooms. So you can decide already in the budget period the productivity you want to reach and set that for each month and then if the cost driver, in this example room nights, changes the productivity will stay as previously decided and the hours will change instead.

How to know what is a good productivity for each department?

You need to have a look at what you have done at your property in past months with similar cost driver activity. If you did achieve 2.9 rooms per worked hours in Housekeeping last year for this month, can you do that again this year for the same months and same level and cost driver (room nights)? Was that productivity achieved last year a good level? Did we manage to clean the rooms according to set targets? Was the guest complaints at a very low level? If so, then this productivity could be used this year, perhaps even with a small increase.

You can also use the Benchmarking module, if you are part of a hotel chain, and check how the other properties are doing. If they are better or worse, why is that? If they can produce a better productivity, is that because the room size are completely different than at your property? Are they newly renovated? Wooden floor instead of carpet as you have? There are many factors influencing the time used to clean a hotel room.

If the restaurant did x Euro per worked hour last year, should we not do same or better this year. If we as well did increased the price of the menu, then the productivity this year should actually be higher than last year. Since productivity in a restaurant is hours compared to revenue.