SITXFIN005 Manage Physical Assets

ASSESSMENT COVER SHEET

(Please ensure this cover sheet is completed and attached on top of each assessment)
QUALIFICATION CODE AND TITLE: SIT60316 Advanced Diploma of Hospitality Management
UNIT CODE: SITXFIN005 TITLE: Manage Physical Assets__________________

Student Number
Student Name
Assessor Name Pamela Di Dato
Assessment Name and Number SITXFIN005 MANAGE PHYSICAL ASSETS
Assessment Task Number and Name Task 1,2 and 3
Assessment Due Date
Submission Date
Competency Date:
RESULT SATISFACTORY UNSATISFACTORY
FINAL OVERALL RESULT COMPETENT NOT YET COMPETENT
STUDENT DECLARATION
I declare that:
 This assessment is my own work, based on my own study and research and no part of it has been copied
from and other source except where due acknowledgement/reference has been made.
 If this assessment was based on collaborative/teamwork, as authorized by the trainer, I have not
submitted the same final version of any assessment material as another student.
 I have not previously submitted this assessment or any part of this assessment for this or any other
course/unit.
 I have kept a copy of my assessment.
 I give permission for my assessment to be reproduced, communicated, compared and archived for the
purposes of detecting plagiarism.
 I understand that plagiarism is the practice of taking someone else’s work or ideas and passing it off as
one’s own work and that the attached assessment maybe checked for plagiarism.
 I understand that collusion is presenting another person’s assessment as one’s own and/or providing
your own work to another person to allow them to pass it off as their own.
 Any assessment deemed unsatisfactory will require me to undergo reassessment which may be different
to the one originally submitted.
 I am aware that in the event that I disagree with the assessment outcome I have the right to appeal that
result. I will follow the complaints and appeals process.
 A late submission fee of $100 per assessment will apply if the assessment is submitted after the
scheduled due date unless a formal extension has been granted by the Program Manager or Course Co-
ordinator.

Student Signature: Date:

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ASSESSMENT SUMMARY SHEET

To be deemed competent students must have a satisfactory result recorded for each assessment activity. If a
result is not satisfactory for any assessment task, the trainer/assessor will determine the training and
assessment tasks to be completed.
The student has been assessed as competent in the elements and performance criteria, performance evidence
and knowledge evidence and in line with the assessment conditions. The students work submitted for this
assessment is: Valid Sufficient Current Authentic

ASSESSMENT TASK 1
SATISFACTORY NOT SATISFACTORY NOT APPLICABLE

ASSESSMENT TASK 2
SATISFACTORY NOT SATISFACTORY NOT APPLICABLE

ASSESSMENT TASK 3
SATISFACTORY NOT SATISFACTORY NOT APPLICABLE

Feedback to Student

The student has been given feedback and informed of the assessment result and the reasons for the decision.

Trainer/Assessor Signature

Date

Other
Resubmission Date
Is this assessment subject to an  Yes  No
appeals process

Outcome of appeal

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ASSESSMENT 1 (1459)
Answer the following questions in brief.
1. Below given are the business objectives relevant to the management of physical
assets. Discuss about them in brief.
Explanation

If profitability is the main issue, a thorough ROI will need to be

done, and the whole cost will play a big role in the choice. In
Probability another circumstance, a certain asset could be absolutely important
to deliver a specific good or service. The asset's function and
maintaining its operational status are more crucial in this case than
the overall cost.
Any asset procurement and management procedures must consider
the product lifespan and potential uses of the assets if business
Growth development is the goal. Any new assets must be able to handle
not just the present level of demands but also the volume of work
or activity necessary in the future.
As a result, the facilities and other assets have an impact on the
potential rating. A room's rating will drop if it has basic amenities,
Providing quality products and which will affect how much may be charged for it. A better rating
services to customers may be attained by spending more and making sure routine
maintenance tasks are completed, which will then permit a higher
fee to be charged. Again, the return on investment needs to be
carefully considered.
When making judgments on strategic asset management, external
factors might also need to be taken into account. Industry codes of
Following codes of practice conduct and accreditation programs may in part specify the criteria
for making decisions. The Star Ratings Australia Accommodation
Classification Scheme, for instance, assigns ratings from one to five
stars to a variety of accommodations in Australia and New Zealand.
One star denotes a clean, basic hotel, whereas five stars signify
exceptional worldwide standards.
When thinking about a significant purchase, you must do your
homework. You'll need to provide evidence that the expense will
Maintaining industry benefit your company. Additionally, in order to prioritize spending,
accreditation schemes you will need to use strategic thinking. Even if there is a great
investment opportunity, it is not worthwhile if it has such a
negative influence on your operations that your company can no
longer run. You should also be aware that many investments,
including extending or renovating the property, may cause some
degree of business interruption. Always consider the impacts over
the long term.
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2. Discuss about any 3 environmentally sustainable philosophies and practices.

Engagement of stakeholders: A trustworthy sustainable system listens and gains

knowledge. An effective sustainability system is non-discriminatory and inclusive.
Stakeholders are given more ability to influence choices and hold the system
accountable.
Transparency: By being forthright and honest, a credible sustainable system gains
confidence. While safeguarding sensitive data, a trustworthy sustainability system
makes crucial information freely accessible to the general public.
Impartiality: A trustworthy sustainability system is unbiased.
Conflicts of interest are recognized and avoided or minimized by a credible
sustainability system throughout its governance and operations, especially when it
comes to rating the performance of its users. Stakeholder involvement and
transparency contribute to the credibility of the system's integrity.

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3. Tourism and hospitality organizations require a range of physical assets. For each of
the following physical assets required as listed below, provide two examples.
Examples

a. Buildings Restaurant Area, Pool

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b. Computer Systems Spread sheets, Hotel management systems.

c. Equipment fixtures, Beds, Sofas

fittings and furniture for
accommodation
establishments

d. Equipment for Ovens, Gas staves

commercial kitchen

Restaurant tables and chairs

e. Equipment and
furniture for restaurant
and bars
Garden chairs, Garden tables
f. Gardens

g. Pools Pool side chairs and tables

h. Rides and games Pool tables, Chess boards

i. Vehicles Cars, Vans

Pans, Pots
j. Vessels

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4. Outline the maintenance requirements for the following physical assets.

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Maintenance Requirements

To detect issues and maintain the engine operating as it should,

a. Vehicle proper mechanical maintenance is required, which includes
changing air and fluid filters, drive belts, timing belts or chains, and
spark plugs.

complete cleaning of the coffee maker. Verify the steam pressure.

b. Coffee Machine Wash and disinfect the water tank. All internal metal contact points
should be cleaned. Verify the grinder's settings. The exterior of the
equipment has been thoroughly cleaned. With hot water and
detergent, clean the drip tray and ground tray.

The secret to pool upkeep is having clean water and well-balanced

c. Pool water chemistry. Set up a weekly schedule for cleaning the pool and
adding cleaner. Many pool issues can be resolved and prevented
with shock treatment. Each week, check the pH and the amount of
free chlorine in the pool water, and shock-treat as necessary.

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5. Purchasing assets can be major business decision and a long-term assessment of the
viability of these assets needs to occur.
For each of the factors to consider in the table below, explain why these factors need
to be considered concerning the assessment of long-term viability.
Explanation

Assets are valuable possessions that your business either owns outright or
a. To meet business rents out in order to operate, such as real estate and machinery. They can
objectives also be a way to develop your company's assets, such as intellectual
property, customer relationships, and goodwill.
Assets are crucial since they can create income, boost the worth of your
company, and aid in its operation.
For a production to run smoothly, maintenance management is crucial. To
b. Maintenance cost over guarantee that the production process, the utilities, and related facilities
time operate as efficiently as possible, it aids businesses in maintaining their
resources while managing time and costs.

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A dissatisfied client will eventually locate a superior rival and stop doing
c. Customer and staff business with you. Benefits of customer feedback are substantial. It
feedback assists you in figuring out whether your customers are happy with your
service and identifying areas where you can improve.
An organization uses inputs to make sure that its ultimate goals are
d. Input from specialists reachable and that the necessary procedures are taken to accomplish
where required them. Hardware, software, office space, and outside workers are all
examples of inputs. Raw materials are another illustration of an
organization's inputs.
The objective of an operational efficiency mindset is to reduce or cap the
amount of time that employees spend on procedures or activities that
e. Operational efficiency don't bring value. An operational efficiency exercise can significantly
increase a business's competitiveness and profitability by maximizing the
amount of value-added work that people perform.
Your workplace will be more productive and effective if you take steps to
protect your employees. According to research, employees who work in
f. Safety environments that prioritize health and safety are more productive. Your
organization will experience less disruption and spend less money if illness
and accident-related downtime are reduced.
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6. Below given are the factors guiding acquisition process. Discuss about them in a brief.
Explanation

When creating budget sheets for programs, budget parameters are used
a. Budget Parameters to set the option values that are displayed. Budget parameters can either
be dynamic, where the value is changed every time the action is taken, or
static, where the amount remains constant.

a commitment to pollution prevention and ongoing environmental

b. Environmental performance improvement. a dedication to ensuring the safety of both
sustainability policies for community members and staff. a declaration of the tactics and measures
the business your company is ready to take to keep its promises.

Floor plans are scale drawings that depict how rooms, spaces, and other
physical characteristics relate to one another as viewed from above. They
c. Floor Plans make it possible to picture how people will navigate the area.

It may be necessary to examine several scenarios for a specific asset to

d. Number and types of determine whether there are any related objects that also need to be

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 SITXFIN005 Manage Physical Assets

required equipment purchased, stored, or installed. This could include furniture, fixtures, and
fixtures, fittings and other items needed to finish or improve the main asset. This could be
furniture affected by the available storage capacity as well as other operational
effects.

Determine the required amounts of output and other characteristics of

e. Operational the asset's operation if it will be employed as a component of a
requirements for production process or service offering. It is necessary to set metrics for
efficiency customer things like goods produced per hour, operational speed, efficiency, client
traffic traffic volume or staff usage, failure rate, and maintenance needs.
The staff utilization rate is computed as a percentage by dividing the
number of billable hours worked by the total number of hours available.
f. Staff Usage Billable hours are those spent working on tasks that can be directly linked
to a project that generates income
Each asset needs to be examined to make sure it fits the intended use. To
ensure that the required service levels and client results may be realized,
g. Types of products and a company's products and services must be taken into account. A vehicle,
services offered by the for instance, must be fit for its application; if performing off-road tours, a
business 4WD would be most suitable.

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7. Discuss about the format and contents of asset register.

Describe the asset.

the position of every asset precisely.
information on purchases, such as the price and date.
the anticipated lifespan.
Value of depreciation.
Information on compliance and insurance.
history of repairs and downtime for maintenance.
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8. Identify any one feature and one benefit of the following options for asset acquisition.

Options Feature Benefit

The buyer immediately takes Over a set period, the cost
ownership of the purchased goods. can be spread out.
a. Hire Purchase Until the final payment is made, the Interest rates are set in
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 SITXFIN005 Manage Physical Assets

vendor (hire) retains ownership of the stone.

goods. Once the buyer (hirer) has paid At the conclusion of the
off all installments, ownership is contract, you will own the
transferred to him. asset.
A lease is an agreement over money. reduced monthly
Lessor and Lessee are the two parties. obligations.
b. Lease On the lessee's request, the lessor Less money is needed when
purchases equipment. you go.
lower costs for repairs.
An agreement for the purchase of Manage unforeseen costs.
property between a buyer and a seller helps you stay away from
c. Purchase is known as an asset purchase buying errors.
agreement. Ensure legal defense.

lowering the risk of financial loss Large investments are not

owing to transaction fees and necessary.
d. Rent depreciation, particularly for real immune to changes in real
estate that could only be needed estate prices.
temporarily. easier to move out of.

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9. Discuss about any two depreciation methods that can be applied to different types of
physical assets.

Method of Straight-Line Depreciation. The most popular approach for calculating

depreciation is this one.
Method of Diminishing Balance. This approach is sometimes referred to as the
dropping balance approach, written down value approach, or diminishing balance
approach.

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10. Discuss how these sources can influence/help the final acquisition decision.

Sources Explanation

Maintenance agreements offer monetary savings, assurance of the quality

a. Current maintenance of the goods, and piece of mind. Additionally, if a maintenance or service
contracts contract covers anticipated future problems, a consumer is more likely to
buy an item.
It aids in ensuring that the proper goods and services are acquired at the
b. Estimates and quotation most affordable costs. Businesses might use quotations to confirm the
from suppliers caliber of the products or services they are buying. The quotation can be
used to assess offers.

The contract's costs for labor, materials, other fixed charges, etc. are at
the control of the contractor. Each customer receives a contract account
c. Previous contracts and detailing the services completed and costs expended to date. Defects
costs resulting from a lack of quality are also kept under control.

One way that advertising affects pricing is by enhancing product

d. Published and difference. However, because advertising gives consumers more product
advertised prices information and lowers prices, it lowers the cost of their search.

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11. Discuss any two practices that support sustainability using different types of physical
assets.

By altering how you use paper in the office, you may embrace sustainable work practices quickly
and easily. Any business must have paper goods and packaging, especially those in the
manufacturing sector. Although not every office can go paperless, as you may already be aware,
you may choose the type of paper you use. The solution is recycling.
Compared to conventional lighting options, LED lighting consumes 75% less energy and doesn't
release any hazardous pollutants. It also costs far less and lasts 25 times longer, saving your
business thousands of dollars in energy costs.
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ASSESSMENT 2

This is a roleplay task.

To complete the following task, you need to prepare power point slides for each questions,
and present in a class in a simulative environment.
You can find additional supporting materials For Adore Hotel required for this task under
Additional in V-Learn.

1. Develop a plan for the acquisition, maintenance and replacement of at least three
different types of physical assets. Also include and demonstrate procedures to:
 Monitor the utility of above assets to meet business
needs
 Provide regular financial reports on the assets
 Record formal and informal customer and staff
feedback
 Integrate day-to-day condition reports
 Schedule internal or external inspection or audits
 Schedule management reports
 Develop and maintain a current register for the above
assets

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ASSESSMENT 3
Write short answers for the following questions:
1. What things should be kept in mind while developing and maintaining asset register?

Understand the reason behind asset's existence.

Gain knowledge about the asset's condition.
See how effectively the asset is being utilized.
Identify future demands.
Assess the existing maintenance program.
Predict depreciation rate and associated risks.
Forecast asset disposal.
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2. Define asset register?

An asset register is essentially a thorough list of all the assets owned by your company.
Physical/fixed assets, IT assets, digital assets, and special assets pertaining to activities like
hotels or schools can all be considered assets. It contains information on assets including
location, ownership, condition, and worth.
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3. Discuss about the phases of asset life cycle.

Planning: The information at your disposal will determine when it is best to buy new
assets and replace old equipment.
Acquisition: An asset registration should be updated once it has been acquired and
deployed.
utilization and maintenance.
Disposal: When an item reaches the end of its useful life, it must be gotten rid of, put
to good use, sold, or repurposed.

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4. How maintenance and repair regimes help to minimize disruption and loss of revenue?

Maintenance is a crucial component of quality assurance and, in some situations,

affects a company's long-term viability. Resources that have not been properly
maintained can lead to instability and force a production halt. Machine malfunctions
or total failures can be expensive processes for most businesses.

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5. How can environmental sustainability be ensured?

Think twice before shopping, make sure your big purchases have big environmental
benefits, Go #PlasticFree, Boycott products that endanger wildlife, Pay attention to
labels, Be water wise, Drive less, drive green. Green your home.
Sanitation and clean water: Examples include understanding how to save water. Acting
immediately to halt global warming is known as climate action. Avoiding the usage of plastic
bags will help keep the oceans clean. Planting trees to preserve the environment is a part of
terrestrial life.

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6. How the impact of asset operation on the environment can be reduced?

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Some examples of what this might entail are using programs for upcycling, recycling,
and disposal, reducing the amount of energy used, and using more environmentally
friendly materials all throughout the production process.

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7. Write about the multiple options available for acquiring assets.

According to the relationship between the buyer and seller, there are four primary
types of acquisitions: horizontal, vertical, conglomerate, and congeneric.

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8. What are the two major reports required for regular monitoring and reporting of physical
assets?

Asset Data Health Reports, Asset Tracking & Inventory Reporting, Maintenance &
Lifecycle Reports, Financial, Accountancy & Audit Reports

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9. What are the problems one might encounter with physical assets?

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Little to No Visibility. Without visibility, there is no sure way of determining the inventory of
assets in a given location.
Warranty Leakage.
Lack of Information Sharing.
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10. How can the problems with physical assets be resolved?

It can be difficult to achieve your company's goals through efficient asset management.
deciding on the purchase of assets.
increasing uptime and usage.
putting replacement cycles in place.
Total cost of ownership management.
Asset management software is built to resolve this issue as it automates the maintenance
process.

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11. What is meant by asset performance? How can it be determined?

Asset performance is the ability of a company to control how it uses its operating resources.
The utilization of resources can be measured using specific metrics and ratios. These
measurements and ratios are used by analysts to analyze the asset performance of numerous
businesses operating in the same sector.
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12. What special traits do specialists have? When is specialist assistance necessary?

A expert in charge of managing and disposing of the assets of a financial organization

is known as an asset specialist. Asset specialists work with other financial institutions
that are marketing and selling assets when a financial institution is placed under
government conservatorship.

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13. Why preparation of accurate equipment specifications is necessary for acquisition

process? Mention some of the specifications that help in finding the better of assets.

The specifications for the procurement are described in a specification. It serves as

the cornerstone of every offer and, consequently, every contract. To ensure that the
selected supplier provides what is requested, a specification becomes a crucial
contract management document.

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14. How estimation of cost is carried out while acquiring new assets?

It is computed by multiplying the purchase price of the property by the cost inflation index
for the year it was sold, then dividing the result by the cost inflation index for the year it was
purchased.

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15. What factors contribute on making decision for replacement and acquisition of new
assets?

Organizations frequently take asset age, asset condition, environmental conditions,

technical conditions, financial conditions, and other non-financial aspects into account
when making decisions.

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16. Mention about various methods of financing for assets acquisition.

Loans from private lenders, bank loans, and lines of credit are all frequent options for
purchase finance. Other options for funding acquisitions include debt security, Small
Business Association (SBA) loans, and owner financing.

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17. Who are the specialists engaged in financial acquisitions? Why them?

A mergers and acquisitions specialist's role is to make the process of buying or

merging businesses easier from start to finish. The duties of M&A professionals vary
depending on the stage of a transaction because mergers are complex processes.

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18. Why keeping accurate records of all financial agreements important?

In order to create reliable financial statements, you need good records. These consist
of balance sheets and income (profit and loss) statements. These statements might
assist you in managing your business and dealing with your bank or creditors.

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19. What is included in financial agreements?

Financial contracts, which are frequently formed between parties involved in the
financial markets, include agreements, contracts, or options to sell, buy, swap, lend,
or repurchase securities. Other separately negotiated transactions with a similar form
are also included in financial contracts.

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