PMI Labor Cockpit (and Schedule) are used to manage labor cost and adjust the staffing according to expected level of activity in the department, both short and long term. This article covers the Budget and Forecast preparations needed for managing productivity.
The purpose with the Labor Cockpit is to plan and schedule according to budgeted and forecasted labor cost and productivity. The productivity target is based on Cost Driver divided by hours.
A Cost Driver is the primary activity that causes resource consumption, e.g. Room Nights in Housekeeping, Food Revenue in Kitchen or Covers in Breakfast drives the need for labor hours.
To benefit from PMI best practice it is important that the forecast and budget data is complete − cost driver (occupancy, revenue etc.), hours, fixed resources and labor cost. The daily/monthly recommended hours are based on the forecast.
Although you can enter both budget and forecast data directly in the cockpit, it is recommended that this is done in the Budget & Forecast module for a complete overview of the year or a period. When setting your targets it is good practice to compare with former performance.
Enter Budget and Forecast module from the main menu
- Open the correct department
- To view budget and forecast data make sure this is enabled from the View Options menu.
- The hours can be entered directly as totals for the month (1) or calculated based on productivity target (2). (In this example we are using housekeeping and the productivity is number of rooms cleaned per hour).
- To check what the cost driver is, hover on top of one of the monthly cost drivers and the cell info will be displayed (3).
- The hours and productivity are connected – if you make a change to the hours, the productivity will automatically change and vice versa.
- If you are working with fixed hours, these should out of the total hours. i.e. the fixed hours can never exceed total hours
- Total hours includes fixed and flexible hours.
PS! Fixed hours is not the same as fixed staff (monthly fixed staff). The objective of defining fixed hours in PMI is to take these hours out of flexible/variable resources.