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SIM: Resource Allocation & Register Manual

Unit Code (s) and Names

BSBMGT622 Manage resources


Resource Allocation & Register Manual


ORGANISATIONAL CONTEXT AND BUSINESS DESCRIPTION

Service Industry Management Private Limited (SIM) is a newly setup organisation that has been approved by the Australian Business Registrar. The organisation with its fund has recently acquired three (3) brand new premises for cafe operations in three different locations: One in Sydney CBD, One in Brisbane CBD and One in Perth CBD. The core business of the group is hotel management and they now wish to expand into cafe management. 

Company Strategy

SIM's growth strategy is focused on expanding into cafe operations with the intention of owning a cafe franchise. SIM supports work health and safety (WHS) in the workplace and is a strong advocate of environmental sustainability.

ASSESSMENT BRIEF

You have been appointed General Manager of Cafe Operations and have been allocated $350 000 for the fit-out of each of the premises. 

As a guideline, you will need the following for each outlet as they are to be identical, with a floor space of 250 square metres: 

  • tables and chairs providing seating for forty (40) ‘alfresco style’
  • built-in furniture providing seating for twenty ( 20) 
  • refrigerated display cabinet with counter and storage 
  • cabinets 
  • small freezer 
  • cool room 
  • reverse cycle air-conditioning 
  • commercial three (3) group coffee machine 
  • coffee roaster (optional) 
  • coffee grinder 
  • commercial fruit juicer 
  • hot water urn 
  • dishwasher 
  • cutlery, crockery and other service equipment 
  • salamander or oven 
  • toaster 
  • point of sales (POS)/cash register

ASSESSMENT STRUCTURE AND INSTRUCTIONS

Assessment tasks weights: Task 1 – 10 marks, Task 2 – 20 marks, Task 3 – 10 marks, and Task 4 – 10 marks.

Task 1: Based on the acquired locations for cafe premises, you will need to identify the potential stakeholders for the three premises. You will also need to analyse the CBD information to determine the types and level of resources required for the organisation. 

Task 2: Based on the given information in assessment brief, you are required to plan the fit-out with the allocated funds and select alternate financing options such as leasing. You will need to include purchase specifications for the equipment to guide the acquisition process.  

Task 3: Based on the given information provided in assessment brief and your previously completed tasks develop and implement systems to 

  • Incorporate efficient use of resources
  • Monitor resource use against budgets and business goals 

Task 4: Prepare an asset management manual with policies and procedures in order to:

  • monitor the condition and performance of the physical assets you have recommended and take appropriate action in the event of a breakdown 
  • undertake preventative maintenance on an ongoing basis 
  • acquire new assets as needed 
  • maintain records to comply with the financial and legal requirements of business operations

FORMATTING AND REPORTING INSTRUCTIONS

The assessment should follow the structure as stated in instructions

The assessment must provide a clear explanation of each of the 4 tasks above in relation to the enterprise and it’s industry sector.

The report is to be approximately 2,000 words in length however this benchmark is only a guide and is not mandatory in the overall context of the assessment

All sources are referenced consistently and comprehensively using the recommended referencing system as prescribed in the subject description/outline. 

Overall presentation is professional including spell and grammar checked judicious use of headings, font size, layout etc.

TASK 1: Based on the acquired locations for cafe premises, you will need to identify the potential stakeholders for the three premises. You will also need to analyse the CBD information to determine the types and level of resources required for the organisation. (10 marks)


Premise / Location
Information on location / premise
Additional resources required for the specified location
Identified Stakeholder groups within the location / premise












TASK 2: Based on the given information in assessment brief, you are required to plan the fit-out with the allocated funds and select alternate financing options such as leasing. You will need to include purchase specifications for the equipment to guide the acquisition process. (20 marks)


FIT OUT PLAN (use assessment brief information)                                                          10 marks



APPROXIMATE FIT OUT COSTS (use assessment brief information)                                    10 marks 


TASK 3: Based on the given information provided in assessment brief and your previously completed tasks develop and implement systems to 

  • Incorporate efficient use of resources
  • Monitor resource use against budgets and business goals (10 marks)
PLAN FOR EFFICIENT USE OF RESOURCES AND ASSETS                                             5 marks



EXPLANATION ON THE COST AND BUDGET OF RESOURCES ACQUIRED             5 marks 


TASK 4: Prepare an asset management manual with policies and procedures in order to:

  • monitor the condition and performance of the physical assets you have recommended and take appropriate action in the event of a breakdown 
  • undertake preventative maintenance on an ongoing basis 
  • acquire new assets as needed 
  • maintain records to comply with the financial and legal requirements of business operations (10 marks)


POLICY FOR ASSET MAINTAINANCE                                                                          2 marks 


SCHEDULE FOR ASSET PERFORMANCE                                                                     2 marks 


LEGAL REQUIREMENTS FOR YOUR ORGANISATIONAL ASSETS                                2 marks 


RISK MANAGEMENT STRATEGY FOR RESOURCES AND ASSETS                             4 marks 
Asset  or Resource name
Possible Risks with this resource
Risk Management Strategy
















Answer

Innovation in Leadership and Management

  1. Introduction 

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 / LocationInformation on location / premiseAdditional resources required for the specified locationIdentified Stakeholder groups within the location / premise





Sydney CBD










Highly populated 
Competition, high. 

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). 

Security system 

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. 

Florist 

Insurance broker 

Lawyers 






Brisbane CBD 









Undergone transformation in the last five years 

Increased café completion in the last five years 

Budget prices recommended 

Outside outlet 
Security system 

Bagel counter 








-do-







Perth CBD 
Popular trend: brunch 

Hangout- snack café trending.

Eco- friendly 
Cold drips 







-do-


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. 

Asset Required 

  • tables and chairs providing seating for forty (40) ‘alfresco style’
  • built-in furniture providing seating for twenty ( 20) 
  • refrigerated display cabinet with counter and storage 
  • cabinets 
  • small freezer 
  • cool room 
  • reverse cycle air-conditioning 
  • commercial three (3) group coffee machine 
  • coffee roaster (optional) 
  • coffee grinder 
  • commercial fruit juicer 
  • hot water urn 
  • dishwasher 
  • cutlery, crockery and other service equipment 
  • salamander or oven 
  • toaster 
  • point of sales (POS)/cash register



APPROXIMATE FIT OUT COSTS (use assessment brief information)                                    

Start-up expense cost distribution: 

  • Legal Expense: $1,500
  • Marketing and Promotional Expense: $3,500 + 2000 flyers of $0.04 per copy= $ 3,580
  • Consultancy fee: $3,000 
  • Insurance coverage: $2,500 
  • Pre- paid rental expense: $1.80 per square feet 
  • Remodelling: $15,000 
  • Others: Stationary: $500, Phone and Utility deposit: $2,500 




Operating Capital: $65,000 ( includes employee and owner’s salaries for the first two months, cash reserve for first three months ) 

Breakdown given below: 

  • Tables and chairs providing seating for forty (40): 40 tables ($350/ each), 120 chairs ($95 each) = $25, 400. 
  • built-in furniture providing seating for twenty ( 20) : $1000 each= $20,000 
  • cabinets and storage hardware: $3,800 
  • small freezer 
  • cool room 
  • reverse cycle air-conditioning 
  • commercial three (3) group coffee machine : $18,000 ($6000 each) 
  • coffee roaster (optional) 
  • coffee grinder : $200 
  • Food service equipment: $18,000 
  • Food and coffee filter: $8000 
  • Retail supplies (coffee bag, cleaning, napkins) $ 1,850
  • Office equipment: $3,500 
  • point of sales (POS): $2,300
  • miscellaneous expense: $500  






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
  • payroll, 
  • sales and marketing expense
  • depreciation 
  • rent 
  • maintenance 
  • utilities 
  • payroll tax 
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. 

Asset usage: 
Payroll $10,400 per month 
Sales and marketing expense: $2,150 per month 
Depreciation: $450
Rent: $500 
Maintenance: $400 
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). 
Asset Valuation 
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                                                                     


Project NameMonth 1Month 2Month 3Month 4Month 5Month 6
Levels of Service 





Existing asset assessment 





Demand prediction





Failure mode prediction





Capital program prediction





Expansion Prediction





Program Cost Review






Project Name Month 7Month 8Month 9Month 10Month 11Month 12
Levels of Service 





Existing asset assessment 





Demand prediction





Failure mode prediction





Capital program prediction





Expansion Prediction





Program Cost Review








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: 
  1. The Australian New Zealand Food Standards Code (FSANZ) 
  2. Food Act 2003 (NSW) 
  3. Responsible Service of Alcohol certificate (RSA) for alcohol permit
  4. Registered Training Organisation for approval of Retail & Hospitality. 
  5. Food Safety Supervision approved by NSW, SA, VIC, ACT. 
  6. Outdoor dining license from local council
  7. Basic training of in- house staff


RISK MANAGEMENT STRATEGY FOR RESOURCES AND ASSETS                             

Asset  or Resource namePossible Risks with this resourceRisk Management Strategy


Fire Safety 



Kitchen fire 
Preparation will include keeping fire extinguishers, fire blankets 
Sprinkler system 
Monitored fire detection alarm 
Staff training to react to possible fire 
Evacuation procedure 
Fire doors and smoke control doors 
(Flynn, 2016)

Deep fryer cooking appliances 




Overheating 
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)  




Intruder alarm 

Break- in
Robbery 
Movement sensor (NZI, n.d)
Vibration sensor
Door and window device
Hold- up alarm
Break glass sensor 
Safe 


Electrical safety 



Fire outbreak 
Poor insulation
Electrical hazard
Maintenance of electrical regulatory safety obligation
Electrical test and tag regime

Cyber security (Travellers, n.d)wHacking 
Anti-virus software
Password protection 
Security camera


6.0 Conclusion 

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. 

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