SIM: Resource Allocation & Register Manual
Innovation in Leadership and Management
One of the most important areas of hospitality industry can be recognized as asset management, resource allocation and register maintenance. As Jackson (2012) states, the development of internal asset management and record keeping is crucial to the success of a company. With the advent of technology, asset management has transformed. The introduction of Internet of Things (IoT) and cloud technology has helped develop complete asset management software for small and medium sized companies. This paper will illustrate the methods of asset management and register maintenance for such a company. The case study presents Service Industry Management Private Limited (SEM) (, a newly organized set- up operating to open three café operations within Sydney CBD, Brisbane CBD and Perth CBD respectively. With the stratify focusing on work health and safety in workplace and advocating sustainability of environment, SEM is required to structure an asset management and financial plan for implementation.
Structure of report: Task 1 provides an identification of the potential stakeholders through an analysis of the CBD location information in order to determine the type and level of resources for the organization. Task 2 focuses on structuring a fit- out plan with allocated funds for the organization as well as purchase specifications for equipment. Task 3 focuses on development and implementation of resources and monitoring of resources against budgets. Task 4 lastly, prepares an asset management manual with policies and procedures. It further extends to risk management of asset
2.0 Task 1: Potential Stakeholders
Table I presents the potential stakeholders of the three branches of Service Industry Management Private Limited (SIM).
The stakeholders identified in column three is with respect to the groups within the location of the branch. Therefore, it specifically pertains to the external stakeholders which are to be determined based on the branch location. However, the internal stakeholders are common for all three locations of SIM. Therefore, the external stakeholders for SIM in their Sydney CBD branch, in the branch of Brisbane CBD and Perth CBD, are as follows:
- Owners: The owners include the accounts and marketing manager, the silent partner and operations department.
- The floor staff and the kitchen staff.
- The barista.
|Premise / Location||Information on location / premise||Additional resources required for the specified location||Identified Stakeholder groups within the location / premise|
Capital of first 18 months is required, which is around $500,000 per annum for ground rent, plus fit out, license.
Staff and procurement capital.
As stated by Audral (2015).
POS system and cash register
Storage and shelving system
The local residents of Sydney
Government and local council of Sydney
Suppliers including food, coffee, tea, newspapers and magazines, milk, crockery and glassware supplier.
Undergone transformation in the last five years
Increased café completion in the last five years
Budget prices recommended
Popular trend: brunch
Hangout- snack café trending.
3.0 Task 2: Fill- Out Planning
This section will provide a fill- out plan which will specify allocated funds, alternate financing options and include purchase specification of equipment for acquisition process guidance.
FIT OUT PLAN
Llegal Expense: Obtaining license and permit, accounting services
Marketing and Promotional Expense: Grand opening to competitive Java Culture, flyer printing
Consultancy fee: Fee to be paid to regional service management group for setting up café
Insurance Expense: Expenses occurring in the general liability, properly casualty and for workers’ companion coverage
Pre- paid rent expense: Should be for at least one month and will vary upon square feet.
Premises remodeling: As per the location to suit the neighborhood style
Other expenses: Will include stationery, phone, and utility deposits.
APPROXIMATE FIT OUT COSTS (use assessment brief information)
Start-up expense cost distribution:
Operating Capital: $65,000 ( includes employee and owner’s salaries for the first two months, cash reserve for first three months )
Breakdown given below:
4.0 Task 3: Resource Management Strategy
This section will provide an assessment of the resource management that will be incorporated by SIM in all of its three branches. Firstly, Table IV will provide a plan for efficient resource allocation and asset distribution. Following that, Table V provides a cost and budget breakdown of resources acquired as per business goals (Audral, 2017).
The business goals of Service Industry Management Private Limited include,
- Maintenance of a gross margin by 65%.
- Turning profit from first month of operations
- To be the “Best new café in the area” by local restaurant guides within four months of its opening.
|PLAN FOR EFFICIENT USE OF RESOURCES AND ASSETS|
The resource and asset management will be based on a twelve month plan.
The factors to be included are
Strategies for efficient asset and resource management:
1. Product Maintenance strategy: This includes maintenance of commercial- grade equipment, vigilance of café machinery maintenance of safety features such as wear- tear, rust and fire appraisals.
2. Incorporation of capital asset management system: This will include full service asset tagging facility to tag equipment and inventory as per make, model, manufacturer and purchase date. Furthermore, tracking equipment life cycle cost, proactive warranty capture through repair and maintenance cost reduction strategies should also be fulfilled. Application of accrual reports, location expenditure reports, manufacture performance reports should be included as well (MD, n.d).
Table IV: Resource and Asset Allocation
|EXPLANATION ON THE COST AND BUDGET OF RESOURCES ACQUIRED|
Asset management software with Internet of Things solution and cloud facility will approximately cost $3,000/ month or $36,000 per annum.
Payroll $10,400 per month
Sales and marketing expense: $2,150 per month
Payroll tax 15%
Utilities and phone expense: $1,600
Total expense: $17,060/ month
Table V: Cost and Budget distribution
5.0 Task 4: Asset Management Manual
The asset management manual presented for Service Industry Management Private Limited will provide policy for asset management which will procedures for the monitoring of condition and performance of physical assets, undertake preventative maintenance, provide strategy for acquiring new assets as needed and provide a record maintained for legal and financial requirements for SEM. Risk management strategy for the assets and resources will be drafted as well.
|POLICY FOR ASSET MAINTAINANCE|
Purpose: The purpose of the asset maintenance policy is to establish the organizational responsibility SEM holds for its fixed asset management, record keeping, control and accounting on controlled items for their capitalization.
Asset Tag Procedure (Hastings, 2010)
Asset tagging procedure:
Tags must be provided to furniture and equipment above the value of $500.
Tags are to remain on the asset throughout asset lifetime
All fixed assets will be assigned tag upon asset number
Tags will include specification of code, barcode number, PO number, asset description, inventory room number, make and serial.
It is the responsibility of SEM’s department to assign, record and fix tags to all assets except vehicles (if any).
Fixed assets will not include maintenance activities, supply items and repair products.
Physical Inventory: Yearly conduct for all fixed assets.
Disposition of Assets: When property is beyond repair, not needed, destroyed, sold or stolen the property will be subjected to disposition. Information required will include barcode of fixed asset number and description of item which include model, brand, serial number, colour and size.
|SCHEDULE FOR ASSET PERFORMANCE|
|LEGAL REQUIREMENTS FOR YOUR ORGANISATIONAL ASSETS|
In order to receive and maintain legal permit and license, the following legal requirements are to be fulfilled by the SEM:
RISK MANAGEMENT STRATEGY FOR RESOURCES AND ASSETS
|Asset or Resource name||Possible Risks with this resource||Risk Management Strategy|
Preparation will include keeping fire extinguishers, fire blankets
Monitored fire detection alarm
Staff training to react to possible fire
Fire doors and smoke control doors
Deep fryer cooking appliances
Ignition of fire
Extraction of kitchen fume, metal grease filters and disposable pre- filters
Usage of energy source
Metal lid protection
Good housekeeping practice
(Federated Insurance, 2018)
Movement sensor (NZI, n.d)
Door and window device
Hold- up alarm
Break glass sensor
Maintenance of electrical regulatory safety obligation
Electrical test and tag regime
|Cyber security (Travellers, n.d)w||Hacking|
The paper presented an asset allocation, management and register manual for the case study organization, SEM. Through four tasks, a detailed financial planning was structured for the assets, fixed and others both. Task 1 specified the main stakeholders. Task 2 focused on a fit- out plan and budget for the company. Next, an asset management plan was formulated. Lastly, preparation of asset management manual which pointed out the policies and procedures for undertaking preventative maintenance measures were provided. Furthermore, the legal and financial requirements for SEM were provided and a risk management plan was also created.