Managing physical assets

Managing physical assets

Part A Short Questions

Develop strategies for systematic maintenance, repair and purchase of physical assets

Question 1: Explain why asset protection needs to be integrated into physical asset management. List and explain three methods of physical asset protection.
Question 2: Define environmental sustainability and outline how this can be incorporated into asset management.
Question 3: List the information that would be recorded in an assets register.
Question 4: Explain the difference between strategic and operational asset management
Monitor the condition and performance of physical assets in the workplace

Question 5: Define TQM (total quality management) and outline the role asset management plays in relation to it.

Question 6: Define and explain the purpose of maintenance programs

Question 7: Explain the difference between preventative and scheduled maintenance

Coordinate the financing of physical assets

Question 8: Define and explain two methods of financing assets acquisition

Question 9: Define capital expenditure

Part B Project 1

Question 1:

You are required to produce an outline of the business you have selected for producing assessment pieces. Cover the following points:

• What is the name of the business
• What type of business is it (e.g. café, restaurant)
• Where is it located (e.g. in the city of Brisbane or the Gold Coast)
• What are the operating hours
• If you are purchasing an existing business or are you setting up from scratch
• What are the core products/services offered
• Who is the target market
• What are the Points of difference your company will have from competitors
• Who are the stakeholders in the business
• What skills, experience and knowledge do the stakeholder’s have
• How many people will need to be employed
• When will you commence operating the business
Question 2:

Assets: Maintenance, Financing, procedure and Strategy

a) Develop a list of physical resources required for the business you are focusing on. This will be a comprehensive list and may include: Buildings; equipment; fixtures; fittings and furnishings; vehicles. Including kitchen, bar and front of house.

b) Approximate value of these assets. You will need to research this by contacting various suppliers and vendors or searching the internet.

c) Outline the maintenance requirements for the assets listed above. Also describe the process for reporting any issues regarding the assets

d) In relation to the assets listed explain the different financing options (purchase, hire purchase or lease) available if you were to purchase them- remember to justify why you have reached this decision.

It is suggested that you use the following as a template for your matrix:

Name of asset

Number Approximate Total value Maintenance requirement Best finance option and reason
office chairs

100 $15 000
(100 @ $150) Yearly: inspection of each piece of furniture
Ongoing: outline if there are any ongoing maintenance issues Purchase
The reason for this is that……..

e) Develop a procedure for reporting any maintenance issues that may arise. In this procedure you will need to outline how these issues will be identified, reported and to whom. You may find it useful to draw a diagram that outlines this process.

f) Develop your company’s asset management strategy. This strategy should outline the purpose, objectives, and monitoring and reviewing requirements. It should also cover operational and strategic asset management of the company

Part C Project 2
Asset Register
Question 1:
a) Develop an asset register template to be used for your business. Select three (3) assets from the matrix you developed above and enter them into the asset register as if you have purchased them.

b) Using the three (3) assets from the avbove project 1, develop a matrix that features the depreciation of these assets using both methods of calculation for a useful life period of five (5) years. Include this is your asset register.

Asset Register
Asset name Serial number
Brand Invoice number
Description of Asset
Asset cost Purchase date

Expected Disposal value Disposal date
Depreciation method Depreciation rate

Asset:
Year Current Value Straight line method New Current Value
2016
2017
2018
2019
2020

Asset:
Year Current Value Diminishing method New Current Value
2016
2017
2018
2019
2020

Question 2:

Strategy evaluation
Working in groups you will provide feedback on other students’ assignment parts A & B below

Your trainer will coordinate the exchange of assessments. You are required to have all assignment pieces completed by: to ensure that your assignment is ready for review.

a) On receipt of other students’ assessment, you are required to analyse their assessment. You should be looking to pick up on inaccurate or missed information. The template below will assist:

Element for Feedback Feedback
Can you think of any additional physical resources required for a business of this type?

Is the value of the assets accurate?
Is the suggested maintenance and finance the most appropriate?

Does the procedure for reporting maintenance issues cover all necessary steps
Does the asset management strategy outline the purpose, objectives, implementation decisions, monitoring and reviewing requirements.
All necessary asset details are included
All legal issues have been identified
All environmental requirements have been identified

General comments

b) Upon receipt of feedback, you are to provide a report which outlines:
• The changes suggested by the feedback
• Why the feedback is or is not valid
• The changes you will make to your assessment as a result of the feedback

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