SITXFIN005 Manage Physical Assets Management

The purpose of this assessment is to assess your ability to manage the physical assets of an organisation. It requires you to demonstrate the ability to establish systems and practices for asset monitoring, maintenance, and acquisition.

Submission:

You are required to submit detailed documents answering all of the following questions based on the scenario below.

Scenario

You have been appointed as the new general manager for a boutique hotel close to the CBD. The hotel is a 4-star all-suite hotel with 80 rooms, a café, bar, garden courtyard, pool, and sauna.

One of your roles as the general manager is the management of the hotel’s physical assets. These responsibilities include energy management, waste management, and purchasing and maintenance of equipment.

The hotel has very few policies and procedures in place relating to asset management. Your job is to make sure the hotel has the correct policies, procedures, and asset management plan in place for the acquisition, maintenance, and replacement of hotel assets.

The owners have agreed to purchase/replace the following items this year:

• 1 x 12-seater bus for airport transfers
• 1 x 24 tray Convotherm Combi oven
• 40 x Sealy Posturepedic queen bed mattresses

To assist you further, this assessment has been divided into two (2) parts:

• Task A – Acquisition, maintenance, and replacement plan, policies, and procedures
• Task B – Asset register, maintenance program, environmental sustainability and purchasing options.

Submission Evidence:

You are required to submit answers to all of the above questions in a report document plus each of the following documents supporting your report.

• Acquisition, maintenance, and replacement plan.
• Standard operating procedure to record formal and informal customer and staff feedback.
• Inspection schedule for each of the three assets.
• Financial/lease agreement for the purchase of one of the assets.
• Revised asset register.

Task 1: Develop a plan for the acquisition, maintenance, and replacement of the hotel’s physical assets. 

As part of your plan, include the following:

1.1 Explain how purchasing each of the above three (3) assets meets current and future business needs relating to providing quality products and services to customers, growing the business and improving profitability.

1.2 List and describe the information that should be provided each month when providing a report on the financial and management status of the business’s assets.

1.3 Create a standard operating procedure to record formal and informal customer and staff feedback and explain how this information can be used to improve asset utilisation.

1.4 Create an inspection schedule for each of the above assets and explain how it will be used to monitor each of the assets.

1.5 Explain the importance of integrating day-to-day condition reports on the assets into the management of the hotel’s assets and explain how this process will be carried out.

1.6 Maintenance contracts: Discuss and explain the importance and benefits of maintenance contracts for hospitality businesses.

1.7 Asset purchases:

1. Explain the difference between estimates and quotations for asset purchases relating to costs/charges
2. Explain the importance of getting three (3) quotes from suppliers before committing to purchasing any assets
3. Explain ways to gain reductions in the purchase price against published or advertised prices.

Task 2: Review the current asset register and prepare a report to the owner’s representative addressing the following points:

2.1 Does the current asset register have all required information, if not what changes are required?

2.2 Specifications and calculations: but 

1. Explain how depreciation is being calculated for the items on the asset register.
2. Is there another method that could provide a better cash flow?
3. Are the specifications and calculations accurate for each item currently on the asset register?

2.3 There is no maintenance program in place, explain why you need a maintenance program defining routine maintenance, preventative maintenance, and scheduled maintenance for asset management.

2.4 Environmental sustainability is an important factor for the owners.

1. List and explain the business strategies that you would recommend to the owners to assist the business to maximise the triple bottom line (People, Profit, Planet).

1. Explain the importance of industry accreditation schemes in the hospitality industry relating to asset sustainability and describe three (3) industry accreditation schemes that the hotel would benefit from joining.
2. Explain your reasoning for choosing these schemes.

2.5   New purchases

1. For the three new purchases explain the different finance options that are available and suggest the best purchasing option for each asset (hire purchase, lease, outright purchase, or rent).
2. Create and submit a financial/lease agreement for the purchase of one of the assets with a lump sum payment of 10% of the purchase price and ongoing monthly instalments/payments over a 24-month period.

2.6  Create and submit a revised asset register that incorporates the suggested changes/recommendations you made in the above questions in task A & B.