SITXFIN005 MANAGE PHYSICAL ASSETS Assessment Instructions The assessment task that you need to complete for this unit is as follows: Assessment Task 1: Case Study Assessment Task 1: Case Study This assessment task requires you to assume/ take on the role of Asset manager of Marriot InternationalYou must develop practices for systematic maintenance, repair and purchase of physical assets, monitor the condition and performance of physical assets, coordinate financing and purchase of physical assets.For the meeting and roleplay, you will join with other students of class, assigning designated roles to each person. After the scenario, each student will switch roles with other students to ensure everyone experiences each role fully.Part B Q2 and Part C Q3 (a-c) must be done by each student in front of trainer/assessor on the due date set by the trainer.Students must use professional language, involve class mates to seek feedback and use appropriate body language in accordance with the Manager role they are portraying.Your assessor will use an observation sheet and provide feedback whether your meeting and roleplay is satisfactory or not satisfactory.Read the case study and answer all questions satisfactorily in order to be marked as satisfactory for this assessment.Time frame: You will need approximately 16 hours to complete this assessment task.Assessment site: WAIFS campus and independent learning environment Equipment/Resource Required: Laptop/PC with Microsoft Office installedLearner GuideClass mates to conduct roleplays Competency outcome: There are two outcomes of assessments: S = Satisfactory and NS = Not Satisfactory Trainer feedback will be provided within 14 calendar days after assessment submission. Declaration I declare that no part of this assessment has been copied from another persons work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person. I also understand the assessment instructions and requirements and consent to being assessed. Signed: ____________________________________________________________ Date: ____________________________________________________________ If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below: This assessment has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another persons work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person. Student 1: (full name) Signed: Date: Student 2: (full name) Signed: Date: Student 3: (full name) Signed: Date: Student 4: (full name) Signed: Date: If you have any questions at all please discuss them with your trainer we are here to help Assessment Task 1: Case study Marriot International has a long and successful history of serving customers beyond their expectations. The company commenced as a nine-seat AW root beer stand in 1927 and has grown to become the leading and one of the most recognisable brands in the hospitality industry. Headquartered in Bethesda, Maryland, the US, Marriot International has a presence in North America, Middle East, Europe, Africa, Asia Pacific, Caribbean and Latin America. Thanks to the imperishable and competitive values that J. Willard Marriot International has left on the genes of the company, the companys success at present is the outcome of the application of those values. The core values that guide Marriot International are We put People first, We pursue Excellence, We Embrace Change, and We Act with Integrity. Marriot Internationals financial success also shows the commitment and capability of the company in maintaining mutually beneficial relationships, whether it be with the franchisees, employees or customers. Customers highly regard the loyalty program of Marriot International named as Marriot International rewards as more than 120 million active customers are part of the program. For the 20th consecutive year, Marriot International could find a place on the Fortunes 100 Best Companies to Work For. Physical assets of Marriot International Marriot International is operating many branches in the Australia and provide wide range of services to their customers. Currently, Marriot International has ten branches in Australia and having more than $500 million dollars of investment on physical assets. Following are the the tangible and intangible assets of the company- Tangible AssetsIntangible AssetsCashPatentsFurnitureLogoPlants and MachineriesCopyrightBuildingsBrand valueVehiclesSelf-developed softwaresStockCustomer dataEquipmentsTrademarkComputers and other technical devicesGoodwill Asset management plan Marriot International prepare an Asset Management Plan, driven by an understanding of the owners objectives for the asset and the specific needs of the property as identified during the strategic review. During initial strategic review, Marriot International undertakes following tasks: a comprehensive physical property review;a detailed market review and competition benchmarking;a review of historic operational and financial performance; anda review of operator contracts, agreements and compensation. Performance Monitoring of Assets Following the initial Strategic Review and preparation of the Asset Management Plan, Marriot International implement a performance monitoring and reporting regime, based on regular property visits and interaction with operator. This will involve, as a minimum: market supply and demand updatescompetitive benchmarking analysisperformance analysis against budget and prior yearsreview of sales and marketing activitiesrevenue analysis and cost controlreview of operator charges, contract compliance and compensationreview of guest satisfaction surveys Planning and Budgeting Short- and long-term planning includes both operational and capital budgeting. This includes: monthly forecast, annual business plan and budget reviews;asset register maintenance Asset management procedure Effective asset management is essential for the business growth of Marriot International . The purpose of assets management procedure is to ensure that expenditures by the Marriot International is planned, evaluated, authorised, monitored and implemented in a systematic manner to meet the objectives of the best practice. Methods of Measurement: Asset ClassModel of MeasurementCycleFurniture and EquipmentCost3 yearlyBuildingRevaluation3 yearlyVehicles and vesselsCost5 yearlyComputers and other technical devicesCost1 yearlyMachineriesCost3 yearly Depreciation Depreciation is charged on fixed assets to allocate the cost of the assets over their estimated useful lives. The depreciation charge for each period is recognised as an operating expense and is charged to the budget centre that holds the asset. The depreciation method reflects the pattern in which the assets future economic benefits are expected to be consumed by Marriot International hotel. Asset TypeDate AcquiredMethodRate or LifeAsset cost ($)Residual value ($)Depreciation in prior years ($)Building with pool and garden1/2/2020SL3 years250,00050,00075,000Furniture and Equipments1/2/2020SL3 years100,00025,00010,000Vehicles and vessels5/3/2020SL5 years25,0005,0001,000Computer and other technical devices1/2/2020SL1 years12,0002,0001,000Machineries including ride and game machines1/2/2020SL3 years70,00020,0008,000 Goals and Business Objectives of asset management To improve efficiency, performance, and utilization: Asset management provides business with a clear picture of their total owned assets at any given time. This birds-eye view into your capital investments can reveal some valuable insights, such as areas in which assets are sitting idle and areas in which assets are at maxed-out capacity.To facilitate Data Collection: Asset management provides a plethora of data that drives decision-making. For instance, data showing that a particular class of assets performs better or has a longer lifespan when purchased from a specific vendor can help you make more informed purchasing decisions. Over time, these types of decisions have a substantial impact on the bottom line by allowing you to make sound investments.Maximizing Return on Investment: Asset management aids businesses in maximizing the return on every investment. When you rely on asset management to inform purchase decisions and stay on top of ongoing maintenance, youll get more life out of your expensive assets. Part A This assessment will provide complete procedure for managing physical assets for Marriot International hotel. As mentioned in the above case study, Marriot International has different types of assets having different life span and depreciation of each asset. It is required to manage physical assets in a timely manner to improve performance and efficiency of the business. In this task, you will be playing the role of Asset manager of Marriot International and develop practices for managing the physical assets of the company. Subsequently, it is essential to create procedures or practices for maintenance, repair and purchase of physical assets. To develop the practices for managing physical assets, you are required to answer below questions: Q1: Create physical asset register for 4 different types of physical assets and explain how frequently you will update register to ensure data accuracy. (Use Template 1) Template 1- Physical Asset Register Physical Asset RegisterCompanyDatePrepared byLocationAsset NumberAsset DescriptionPurchase PriceDepreciation MethodDepreciation RateTangible/Intangible Asset.Date for update of Asset Register: Q2: Create procedures for managing physical assets such as maintenance, repair and purchase. (Use Template 2) Template 2- Develop procedures for managing physical assets Procedures for systematic asset maintenanceProcedures for asset repairProcedures for asset purchase1.2.3.4.5. Explain how the procedures for managing physical assets in Q2 (a), are related to below objectives of the business: Profitability Growth Providing quality products and services to customers Code of conduct Environmental Sustainability industry accreditation Q3: Create maintenance and repair strategy and asset cond
ition report that minimise work disruption and loss of Marriot International revenue. Implement maintenance and repair strategy using maintainence and repair register (Template 3). Template 3- Maintenance and Repair Register DateMaintenance DescriptionMaintenance Performed byDate of validation before put into serviceValidation performed byNext maintenance planned on (date) Q4: When using physical assets, what practices can support environmental sustainability? (Use Template 4) Template 4 Practices to support environmental sustainability when using physical assets PracticesDescription1.2.3.4.5. Q5: The head of the kitchen department, Sara Karalis, has been hoping to upgrade commercial ovens for some time. She knows the upgrade will cost a total of $70,000 but is unsure when to start. To help her make this decision, the accounting team prepared following cash budget for the 2020 financial year. 1st Quarter Jan Mar2nd Quarter Apr Jun3rd Quarter Jul Sep4th Quarter Oct DecOpening bank balance61,00078,30040,60574,905Cash receipts444,500418,105459,900520,300Cash payment(427,200)(455,800)(425,600)(484,500)Closing bank balance78,30040,60574,905110,705 Based on the cost of the kitchen upgrade and cash budget from the accounting team, please answer the following questions: By March 2020, we should enough cash to make the kitchen upgrade. However, accounting team recommends we dont make the upgrade during March. Why do you think accounting team gave this recommendation? The cash receipts in the 2nd Quarter have dropped by almost $30,000 from the 1st Quarter. Why do you think the company has such a large drop in this quarter? When would you recommend Sara to make upgrade to the ovens? Why are the sales in this quarter so much higher than other quarters? Part B In this task, you are required to monitor the condition and performance of physical assets. To monitor physical assets, you should establish and implement regular reporting practices to ensure effective performance of physical assets. A senior manager of Marriot International has decided to monitor current physical asset to improve efficiency and productivity of the business. You will be playing the role of a senior manager in this task for monitoring the condition and performance of physical assets. Q1: Create and implement regular reporting schedule for effective performance of physical assets. (Use Template 5) Template 5: Create and implement regular reporting practices Asset NameCurrent StatusReporting dateReporting procedureOutcome Description1.2.3.4. Q2: Conduct meeting to schedule asset inspection, identify issues in physical assets and create an action plan to resolve these issues in consultation with team members (your classmates). Your trainer will observe consultation meeting and provide feedback using observation sheet. (Use Template 6) Template 6- Identify issues in physical assets and take appropriate action AssetAsset Inspection dateIssues IdentifiedAction to be takenDue dateResponsible Person1.2.3.4. Part B Question 2 Observation Sheet for assessor This should be used by the trainer/assessor to document the learners skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required. Learners nameAssessors nameUnit of Competence (Code and Title)Date(s) of assessmentDid the student identify issues in physical assets during asset inspection?Yes No (Please circle)Did the student create an action plan to resolve issues in consultation with team members?Yes No (Please circle)Did the student follow correct communication protocols when communicating with team members?Yes No (Please circle)Did the student interact effectively with team members by listening actively, understanding the information and asking questions to confirm understanding?Yes No (Please circle)CommentsProvide your comments here:The learners performance was:Not yet satisfactorySatisfactoryIf not yet satisfactory, date for reassessment:Feedback to learner:Learners signatureAssessors signature Q3: Evaluate the performance of physical asset in next few years based on the following factors: (Use Template 7) ability to meet business objectivescost of maintenance over a period of timecustomer and staff feedbackinput from specialists where requiredoperational efficiencysafety Template 7- Assess long term physical asset performance Asset NameCurrent StatusPredicted date of assessmentDescription of asset expected performance1.2.3.4. Q4: Explain on which occasions Marriot International will need consultants to evaluate asset performance and how these consultants will be chosen? Part C The management of Marriot International focuses on growth to achieve competitive advantage in the market. The main goal of the company is to enhance productivity of the business by providing quality services to its customers. The hotel has a restaurant, and the Marriot International orders food from Bid food Pvt Ltd. Currently, the restaurant of Marriot International is having deterioration in profits due to the excessive amount charged on the frozen food by food provider. Likewise, Marriot International has decided to acquire food supplier business to increase growth of the company. Initially, Marriot International decided to finance few assets such as building and vehicles, and later the company will purchase inventory from Food Company. The Marriot also require replacing some assets of the old food provider such as inventory and outstanding payment. To coordinate financing and purchasing of physical assets of the food company, the management is required to prepare specification, estimate cost and make a decision on financing asset. You will be playing the role of Senior Manager at Marriot International. You are required to perform the following to acquire physical assets of the food company. Q1: Explain the process that will be used to buy assets/equipment. Identify specifications to guide purchase of equipment/asset such as: (Use Template 8) budgetenvironmental sustainability policiesfloor plansnumbers and types of equipment fixtures, fittings and furnitureoperational performancetypes of products and services Template 8- Asset specification Equipment/AssetSpecificationAcquisition Process1.2.3.4.5.6. Q2: Ed Stirling is the Operations manager at Marriot International Hotel. He is looking at buying a new vehicle for his department. He received a purchase invoice from local supplier, but is unsure about some of the numbers in the document. Please read questions from Ed below and provide a written reply to each. I can see the total cost of the vehicle is $60,402 including GST. What is the net cost of the vehicle, meaning the cost of the vehicle & floor mats without any other taxes or charges? The last vehicle I purchased had far less stamp duty than this invoice. Why is the stamp duty for this vehicle so high? The current invoice shows the purchase price for the standard model, but I am thinking of buying the premium model. They said the premium model would be $65,000 not including GST or stamp duty. What would be the GST and Stamp duty if I decided to buy the premium model? To complete these questions, you will need to refer to the purchase invoice & table of stamp duty below: West Perth Luxury Vehicles Phone: 0404 221 014 ABN: 53 118 269 282 Invoice: INV000106 Tax Invoice Invoice date: 12/09/2019 Bill to: Due: 12/09/2020 Marriot International Hotel 180 St Georges Terrace Perth WA 6000, Australia DESCRIPTIONQTYQTY PRICETAX TYPEAMOUNT (incl. GST)Purchase of 2019 Holden Colorado Utility, standard modelStamp duty on purchaseVehicle insuranceStamp duty on insuranceVehicle registrationPurchase of 4 x All-Weather Floor Mats111114$50,000$3,250$1,200$120$436$360GSTNTNTNTNTGST$55,000$3,250$1,200$120$436$396GST: Total (inc GST): Amount Paid: AMOUNT DUE:$5,036.00 $60,402.00 (5,000.00) $55,402.00 How to pay Bank Deposit via EFT: Account name: West Perth Luxury Vehicles BSB number: 06 2018 Account number: 1056 8842 Q3: Roleplay: In this question, you will be playing a role of Senior Manager to negotiate purchase and financial arrangements with suppliers, coordinate financing and purchase of physical assets. You are required to meet management team and Financial Specialist of Marriot International and discuss various topics on financing physical asset. Your trainer will observe the roleplay and provide feedback using observation sheet. The participants of the meeting will be: Senior Manager (You)The management team (2 team members- Class mates)Financial specialists (classmates)Suppliers (classmates) You are required to perform the following (a-c) in meeting: Make decisions in consultation with the management team (your class mates) to replace or acquire physical assets and fill template 9. Template 9 Asset replacement and acquisition Asset ReplacementAsset AcquisitionDecision1.2.3.4.5. Determine available options of financing and identify the ones that will help to achieve financial objectives of Marriot International. (Use template 10) Template 10 Methods of Financing Methods of FinancingFinancial objectives met1.2.3.4.5. Negotiate purchase and financial arrangements with suppliers (your class mates). In consultation with financial specialists (your class mates), make decision on the finance acquisition. (Use Template 11) Template 11 Finance Acquisition Decision on choosing financing methodsFinancial specialists consulted1.2.3.4.5. Part C Question 3 (a, b, c, d) Observation Sheet for assessor This should be used by the trainer/assessor to document the learners skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required. Learners nameAssessors nameUnit of Competence (Code and Title)Date(s) of assessmentDid the student take decisions in consultation with the management team to replace or acquire physical assets?Yes No (Please circle)Did the student determine available methods of financing and identified the ones that will help to achieve financial objectives of the company?Yes No (Please circle)Did the student make decision on the finance acquisition in consultation with financial specialists?Yes No (Please circle)Did the student use appropriate sentence structure and language when communicating with suppliers?Yes No (Please circle)Did the student listen actively and understood the information when communicating?Yes No (Please circle)CommentsProvide your comments here:The learners performance was:Not yet satisfactorySatisfactoryIf not yet satisfactory, date for reassessment:Feedback to learner:Learners signatureAssessors signature Q4: Identify any 3 financial agreements and explain how Marriot International will keep accurate records of these financial agreements.