Maintain Business Resources Information-2

8/12/2019 Maintain Business Resources Information-2

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Maintain Business Resources

BSBCMN307A - Information

Information Page Number

Course OutlineElements of competency and performance criteriaMonitor equipment/resource usage and maintenanceAssessment evidence required

2222

Advise on Resource Requirements

Business resources

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3

Keeping Trac of ResourcesPerpetual inventory systemValuation of inventoriesFirst in First Out !F"FO#$ast in First Out !$"FO#%tandard &ostP'ysical "nventory %ystemAssets (egister

!))*+,--

"toc Control in t#e Office%toc. &ardsEstimating Business (esourcesPresenting information

$0101

%onitor &quipment'Resource (sage and %aintenance

Occupational ealt' and %afetyBusiness ec'nology(elevant Policies

))02030)

Acquire resources

Acquisition and storage of resourcesPurc'asing

)*0*0+

Ke+ Terms and Concepts),

-"-C%N3./A%aintain business resources

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'is unit covers t'e s.ills and .no4ledge required to determine administer and maintain resources andequipment to complete a variety of tas.s5

&lements of competenc+ and performance criteriaAdvise on resource requirements050 Estimates of future and present 6usiness resources are calculated in accordance

4it' organisational requirements052 Advice is clear concise and relevant to ac'ievement of organisational requirements053 "nformation is provided on t'e most economical and effective c'oice of equipmentmaterials and suppliers05) (esource s'ortages and possi6le impact on operations are identified

%onitor equipment'resource usage and maintenance250 (esource 'andling is in accordance 4it' esta6lis'ed organisational requirementsincluding occupational 'ealt' and safety requirements252 Business tec'nology is used to monitor and identify t'e effective use of equipmentand resources253 &onsultation 4it' individuals and teams is used to facilitate effective decisionma.ing on t'e appropriate allocation of resources25) (elevant policies regarding resource use are identified and ad'ered to in t'eperformance of operational tas.s25* (esource usage is routinely monitored and compared 4it' estimate requirements in6udget plans

Acquire resources350 Acquisition and storage of resources is in accordance 4it' organisationrequirements352 Acquisition of resources is cost effective and consistent 4it' organisationaltimelines353 (esources are acquired 4it'in availa6le timelines to meet identified requirements35) (esource acquisition processes are revie4ed to identify improvements in futureresource acquisitions

Assessment evidence required7 collecting and recording data on resource use7 o6serving resource use over defined and operational time frames7 preparing reports to advise on resource needs7 accessing resources to maintain operations in line 4it' requirement outcomes7 underta.ing routine maintenance

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Advise on Resource Requirements

Estimates of future and present business resources are calculated in accordance with organisationalrequirements

-usiness resources ma+ include facilities

eg 6uildings rooms 4it' specific purposes 'ard4are soft4are etc

eg computers 4it' Microsoft programs loaded ra4 materials

eg materials required for t'e manufacture or production of finis'edgoods

'uman resourceseg t'e staff 4or.ing to ac'ieve t'e organisation8s goals

stoc. and supplieseg trading stoc. consuma6les fi9ed assets suc' as mac'inery or

ve'icles

A variety of different met'ods 4ill 6e used to calculate t'e need for 6usiness resources depending ont'e type of resource5 'e 6usiness may 6e a6le to estimate t'e amount of stationery required over a

4ee. or mont' and order accordingly 6ut 4ould determine future requirements for assets suc' as motove'icles in a very different 4ay5 (esources can t'erefore 6e acquired on a daily 4ee.ly mont'lyquarterly 6iannual annual or even less frequent 6asis according to t'e organisation8s needs andrequirements5

'ese organisational needs and requirements

may 6e referred to or included in documents suc' aso mission statements goals o6:ectives

o 6usiness and performance plans

o Occupational ealt' ; %afety policies procedures and programs

o quality assurance and/or procedures manuals

o manufacturer8s and operational specifications

o legal and organisational policy/guidelines and requirements

or t'ey can 6e em6edded in

o systems and processes

o security and confidentiality requirements

o management and accounta6ility c'annels

o access and equity principles and practice eg Anti


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Estimating t'e future and present requirements of particular resources may involve

conducting a regular stoc.ta.e or .eeping trac. of inventory using a perpetual inventory system

liaison 4it' ot'er staff regarding t'eir requirements

using su6missions for equipment or resources

forecasting requirements 6ased on 'istorical data identifying urgent and non urgent requirements eg stationery required for a once=a=year

advertising mailout mig't 6e purc'ased 4ell in advance on special consulting tactical plans eg t'e need for staff for t'e proposed e9pansion of t'e manufacturing

department determining t'e usa6le life of assets and planning for replacement

deciding 4'et'er to purc'ase 'ire lease or outsource t'e resource

referring to current legislation eg O;% >uidelines to determine t'eir impact on purc'asing eg is

ergonomic furniture mandatory? recognising organisational preferences eg only purc'asing one 6rand of computer 'ard4are or

4'ite cars for t'e ve'icle fleet5

Keeping Trac of Resources

Perpetual inventor+ s+stem

"nvolves .eeping continuous records or stoc. items purc'ased and sold@ a comparison of actual stoc.and records is carried out during stoc.ta.e at t'e end of t'e accounting period5 'e availa6ility of stoc.is easily found 6y loo.ing at t'e stoc. record !a manually prepared card or a spreads'eet record# for t'eitem5 'is system is generally used for 6usinesses 4it' fe4er sales transactions !eg mac'inery# or as a

met'od of monitoring consuma6le items5 'e introduction of 6ar=coding 'as e9tended t'e use ofcomputerised perpetual inventory systems to organisations 4it' 'ig' turnovers of stoc. egsupermar.ets5

Example: Perpetual inventory system

Greg runs a bike shop and normally has about $50000 !orth o" sto#k on hand at the end o" the in#ome year%t the end o" last year it !as $55000 Greg has a point o" sale system that automati#ally updates his#omputerised inventory %t the end o" this in#ome year the inventory system indi#ates that he has $53000!orth o" sto#k &to#ktakes done in previous in#ome years indi#ate that his system is reliable in re#ording sales

and pur#hases 'o!ever he kno!s "rom previous in#ome years that the total value o" the sto#k on hand as perthe sto#ktake may di""er by on average 2(3) "rom the inventory system "igure due to loss o" small items bythe"t Greg uses the $53000 as his reasonable estimate !ithout making any ad*ustments "or the"t as theredu#tion in value due to the"t is not material Greg+s estimate satis"ies the #riteria o" a reasonable estimate

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0aluation of inventories

Organisations need to value t'eir inventory at t'e end of t'e accounting period5 'e same met'od isused from one period to t'e ne9t allo4ing a clear comparison of results5

1irst In 1irst Out 1I1O

'e follo4ing e9ample is of a perpetual stoc. ledger card using t'e First "n First Out !F"FO# met'od ofvaluing t'e inventory5 "n t'is met'od t'e first units purc'ased 4ill 6e t'e first units sold5 All goods arevalued at t'eir cost price5

P&RP&T(A4 "TOCK 4&56&R CAR5 "tem Craft Scissors

Valuation Met'od FIFO &ode oA63

5ate Particulars Received ' In Issued ' Out -alance

7t+ Price 0alue 7t+ Price 0alue 7t+ Price 0alue

Dec!"#alance "$% &'!! $!!'!

& "!! &'!! &!!'!! $% &'!! 3!!'!

$ %! &'!! (!!'!! (% &'!! "!!'!

"! In) ((&3 $% &'*! 36!'!! (% &'!!

$% &'*! &6!'!

"( (% &'!!

(% &'*! ((!'!! %! &'*! (&!'!

(" In) (6$" 3% &'6! "6"'!! %! &'*!

3% &'6! &!"'!(+ %! &'*!

% &'6! (63'!! 3! &'6! "3*'!

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4ast In 1irst Out 4I1O

A 6usiness mig't c'oose to value its stoc. using t'e $ast in First Out met'od !$"FO#5 All goods arevalued at t'eir cost price5 'e follo4ing e9ample presumes t'e same quantities !as a6ove# of &raft%cissors are 6oug't and sold 6ut valued using t'e $"FO met'od5 Cor. out t'e difference 6et4een t'et4o met'ods5

P&RP&T(A4 "TOCK 4&56&R CAR5 "tem Craft Scissors

Valuation Met'od ,IFO &ode oA63

5ate Particulars Received ' In Issued ' Out Balance

7t+ Price 0alue 7t+ Price 0alue 7t+ Price 0alue

Dec!"#alance "$% &'!! $!!'!

& "!! &'!! &!!'!! $% &'!! 3!!'!

$ %! &'!! (!!'!! (% &'!! "!!'!"! In) ((&3 $% &'*! 36!'!! (% &'!!

$% &'*! &6!'!

"( %! &'*! (&!'!! (% &'!!

(% &'*! ((!'!

(" In) (6$" 3% &'6! "6"'!! (% &'!!

(% &'*!

3% &'6! 3*"'!

(+ 3% &'6! (% &'!!

(! &'*! (%$'!! % &'*! "(&'!

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"toc Control in t#e Office

%ome organisations 4ill maintain a perpetual inventory system of consuma6les to .eep trac. of t'equantities availa6le !not necessarily t'eir value# and to ma.e ordering easier5 For e9ample in a smalloffice a %toc. &ard could 6e used5 Eac' time goods are received t'ey are entered on t'e card5 C'en arequisition is received and goods issued to ot'er personnel accurate entries made on t'e card allo4 youto see 4'en goods need to 6e reordered5 An e9ample of t'is type of record .eeping follo4s5

Can you identify where this

requisition is entered on the Stock

Card e!ow"

'e 6usiness 4ill determine t'e optimum stoc. level !'o4 muc' s'ould 6e 'eld to avoid running out and to avoid 'aving too

muc' stoc. on 'and# t'e frequency of ordering required !to avoid 'aving too muc' or too little on 'and at any time#

t'e usual delivery time !or lead time# of t'e item

4'et'er it is 6etter to purc'ase small quantities or ta.e advantage of 6ul. discounts

t'e storage room availa6le

associated costs eg delivery

t'e safety margin required in case of additional demand or goods 6eing temporarily unavaila6le

'en 4or. out t'e economic reorder point 4'ic' 4ill 6est avoid disruptions5

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&stimating -usiness Resources

Estimating future and present 6usiness resources in accordance 4it' organisational requirements 4illalso necessitate 6eing a4are of 6udget allocations and restrictions ordering procedures 4'ic'personnel 'ave aut'ority to purc'ase or to delegate resource purc'ase policy and procedures regardinpreferred suppliers or contracted suppliers or t'e tendering process5

'e type of information required 6efore deciding to purc'ase 4ill include

precise description of resource required 6rand ma.e and model style colour etc if specified

quantity required

cost including after sales costs eg delivery insurance on=road costs etc

time frame for delivery

terms and conditions eg 6ul. discounts prompt payment discounts 31 days net payment

Ad)ice is clear- concise and rele)ant to achie)ement of organisational requirements

Once information 'as 6een sourced from suppliers catalogues 6roc'ures advertising materials trade

:ournals etc a summary of t'e information may 6e presented to t'e appropriate person5 'is may involva memo a fa9 or email a ver6al presentation or t'e 4riting of a report according to t'e level ofinformation required5

9#en presenting information remember

AccuracyEnsure all data is accurate and complete@ give specificdescription of t'e resource eg item num6er colour 6randsiHe cost per item total cost

-revity"nclude relevant and sufficient information so t'at a decision

can 6e made .eep to t'e su6:ect

Clarity%tate t'e purpose of your report or memo present t'e dataclearly and sequentially use IPlain Englis'I not 6usiness

:argon

Information is pro)ided on the most economical and effecti)e choice of equipmentmaterials andsuppliers

&'oice of equipment materials and supplies mig't 6e determined 6y

6udgets eg mont'ly consuma6les 6udget five=year leasing 6udget for fleet ve'icles storage facilities eg garaging facilities for only five ve'icles storage space for a ma9imum of one

pallet of paper for p'otocopier rate of use eg contracting for supply of ra4 materials on a 6i=mont'ly 6asis

suppliers eg 6etter terms of trade relia6ility of delivery consistent quality of product

availa6ility eg s'ort lead time

4arranty eg e9tended 4arranty on computer equipment

running costs eg p'otocopier 4it' lo4er per copy maintenance c'arge


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.esource shortages and possible impact on operations are identified

'e smoot' running of an organisation 4ill require .eeping trac. of resources on a continuous 6asis5%'ortages of stoc. or ra4 materials consuma6les or 'uman resources 4ill impact on t'e ac'ievementof organisational goals5 From time to time a particular resource may 6e temporarily unavaila6le andsu6stitution may 6e necessary5

Organisational policy and procedures may require staff to notify anticipated requirements to avoids'ortages eg stationery required for a large mailout additional computer for a ne4 staff mem6er printinof additional copies of a price list for a trade promotion5

Ot'er met'ods of reducing t'e possi6le impact of resource s'ortages include

accurate recording of stoc. used eg using stoc. cards

regular c'ec.ing of inventory

identifying alternate resources or suppliers especially 4'en s'ortages are 6eyond t'e control of

t'e organisation eg petrol stri.e perusal of equipment maintenance records@ ensuring maintenance is carried out and service

contracts continued

discussion of resource requirements at staff meetings

%onitor equipment'resource usage and maintenance

.esource handling is in accordance with established organisational requirements including O/0Srequirements

(esources are valua6le 6usiness assets and control systems are necessary to monitor t'e acquisitionmovement and utilisation of t'ese resources5 "t is important to regularly monitor t'e provision and use o

resources and maintenance of equipment and to do so according to organisational policy andprocedures5 %ystematic 'andling of resources may involve

valuing t'e total of stoc. during a stoc.ta.e

ensuring maintenance is regularly carried out according to an equipment maintenance program

.eeping accurate and up=to=date records

arranging for replacement of o6solete or outdated resources

issuing of consuma6le resources according to organisational procedures

using organisational procedures for t'e ordering of goods .no4ing tendering processes and t'e

organisation8s preferred suppliers follo4ing organisational policy in recruiting personnel

(esource requirements are 6ased on

demand or level of use

dura6ility or peris'a6ility of a particular item

life of t'e resource = is it a fi9ed asset or due to 6ecome o6solete?

storage facilities availa6le

cas' flo4 and 6udget requirements

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Occupational :ealt# and "afet+

An important aspect of resource 'andling and monitoring is ensuring t'at all assets and equipment areused correctly and safely in accordance 4it' Occupational ealt' and %afety requirements5

Employers and employees 6ot' 'ave rig'ts and responsi6ilities regarding Occupational ealt' and

%afety5 Employers 'ave a


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-usiness tec#nolog+#usiness technolog1 is used to monitor and identif1 the effecti)e use of equipment and resources

"n most organisations a range of tec'nological tools are used to monitor and more effectively control t'euse of equipment and resources5

E9amples include computers and computer applications eg data6ases spreads'eets accounting pac.ages

computer aided design !&A


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t'e parties to find agreement5 At all times equity principles s'ould 6e follo4ed to ensure all staff aretreated fairly and consistently eg all ne4 staff s'ould 6e entitled to t'e same equipment@ t'e entire teams'ould 6e consulted a6out t'e location of equipment used 6y t'at team5

Relevant policiesregarding resource use are identified and adhered to in the performance ofoperational tas4s

Alt'oug' most organisations 'ave esta6lis'ed !4ritten# policy and procedures t'e 6usiness may also'ave un4ritten 4or.place conventions or 6e'aviours relating to t'e acquisition of resources5

Policies ma+ include &;amples

ordering procedures = 'o4 is t'e ordering or

purc'asing done? A purc'ase requisition form is completed and givento t'e appropriate supervisor

time management = 4'en is t'e ordering orpurc'asing done? All requests for purc'ase of consuma6les must 6e

notified 6efore 0*t'of mont'

transport/travel policies = 4'ere can t'epurc'asing 6e done? All motor ve'icles are purc'ased at local dealers'i

for ease of servicing purc'asing aut'orities = 4'o is aut'orised to

order or purc'ase? eam leaders must sign purc'ase requisition forms6efore t'ey are given to t'e appropriate aut'ority

6udgeting limits = 'o4 muc' can 6e spent?'e administration department 'as a 6udget ofG0*11 for stationery purc'ases Kanuary to Kune5

recruitment and personnel = 4'o is aut'orisedto recruit personnel@ 'o4 is t'e recruitmentprocess 'andled in t'is organisation?

'e uman (esources Officer 4or.s 4it'department supervisors to esta6lis' staffingrequirements for t'e coming period5

.esource usage is routinel1 monitored and compared with estimate requirements in budget plans

&ontrol of stoc. 4ill not only insure against t'eft misuse or misappropriation 6ut 4ill also ena6leintelligent and timely ordering avoid t'e dangers of overstoc.ing reduce t'e amount of 4or.ing capitaltied up in resources and reduce spoilage or outdated materials 6eing 'eld5 Accurate evaluation ofinventories s'ould 6e conducted to ensure t'at proposed 6udgets !6ot' e9penditure and income# are6eing ac'ieved5

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Acquire resources

Acquisition and storage of resources is in accordance with organisational requirements

After t'e decision to purc'ase resources 'as 6een made organisational policy and procedures s'ould6e follo4ed to acquire t'e goods or services 4it'in t'e appropriate timeframe5

Acquisition of resources mig't involve

tendered processes = a tender is an offer to provide goods or services 4'ic' includes detailed

estimates and t'e total cost of supply5 "t is common for government departments to advertise !orIcallI# for tenders for specific pro:ects eg provision of mail services to a rural community or supplyof a fleet of ve'icles5

non tendered processes are ot'er met'ods of acquiring resources and mig't include using a

purc'ase requisition or purc'ase order see.ing quotes from a num6er of suppliers according toorganisational policy and procedures ta.ing advantage of sales or clearances 'iring staff on acasual 6asis leasing equipment for a period of time5

contracted supplier ordering = involves purc'asing from a supplier 4'o is contracted to t'atorganisation for a given period of time to provide certain goods5 'e supplier usually offerse9ceptional value in return for t'is contract5 An e9ample 4ould 6e in a large organisationcontracting to purc'ase all computers from t'e one supplier5

internal approvals = it is usual for all purc'ases to require some form of internal approval or

aut'orisation 6efore purc'ase can 6e made5 'is aut'ority could vary from 6eing a6le to approvepetty cas' purc'ases less t'an G011 t'roug' to 'aving aut'ority to replace t'e company8s fleet ocars5

periodic forecasts = t'e smoot' running of an organisation 4ill require .eeping trac. of resources

on a continuous 6asis5 %'ortages of stoc. or ra4 materials consuma6les or 'uman resources 4impact on t'e ac'ievement of organisational goals5 o avoid t'is some form of periodic forecast a regular estimate of future needs or outcomes = needs to 6e conducted5 'is 4ill allo4 t'eorganisation to 6etter plan for and 6udget for upcoming purc'ases5

Even 6efore goods 'ave 6een received decisions s'ould 6e made regarding storage of t'e resources5>oods need to 6e monitored to ma.e sure t'ey@

are easily accounted for

are not damaged in any 4ay are of no danger to 4or.ers

'ave not 6ecome out=of=date or o6solete are secure from t'eft or pilfering

Acquisition of resources is costeffecti)e and consistent with organisational timelines

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Purc#asingOrganisations require purc'asing to 6e underta.en in a cost=effective and timely manner and to do sot'e needs of t'e organisation need to 6e t'oroug'ly researc'ed5 (egardless of t'e savings made it isno use purc'asing at a sale if t'e goods are delivered after t'e need for t'e goods 'as passed5Met'ods of acquiring resources in a cost=effective manner include

6ul. purc'ases = purc'asing a large quantity 4ill often attract a discount5 'is 4ill only 6e

6eneficial if t'e organisation can turn over t'e goods 4it'in t'e life of t'e good5 discounts = often availa6le for 6ul. purc'ases 4it' contracted suppliers 4it' certain suppliers fo

given periods of time as a special introductory offer or deal prompt payment policies = a discount given 6y t'e supplier to encourage t'e purc'aser to pay t'e

account quic.ly eg %5 $ da1s4ould indicate t'at if t'e account is paid 4it'in seven days t'epurc'aser can ta.e *L off t'e 6ill5

timing !eg sales# = from time to time t'e needs of t'e organisation 4ill coincide 4it' a sale5

For4ard planning 4ill often identify upcoming needs and staff s'ould 6e a4are of periodicopportunities to ma.e e9tra savings5

.esources are acquired within a)ailable timelines to meet identified requirements

'e lengt' of time 6et4een ordering and delivery 4ill vary according to t'e quantity and type of goods o

services requested5 %tationery consuma6les may 6e delivered 4it'in 2) 'ours a call for tender for t'econstruction of a 6uilding may ta.e several mont's5 'e needs of t'e organisation must 6e consideredon an individual 6asis as t'ere are times 4'en t'e timing of provision is t'e most important factor5

Orders s'ould 6e recorded and delivery follo4ed up as necessary5 "f goods do not arrive as requestedt'ey s'ould 6e follo4ed up and a record .ept of t'e inquiry5 "t may 6e necessary to arrange for alternatesupply if goods are unavaila6le from t'e usual stoc.ist5

.esource acquisition processes are re)iewed to identif1 impro)ements in future resource acquisitions

Organisations may 6enefit from conducting a regular revie4 of t'eir resource acquisition processes in

order to identify areas 4'ere future improvements could 6e made5 'ere may 6e issues suc' as

a 6rea.do4n in t'e supply process

an overrun of a 6udget allocation

t'e purc'ase of unsatisfactory goods

t'e discovery of an alternate supplier

a revie4 of practices5

(evie4 strategies s'ould include feed6ac. and discussion 4it' relevant staff recording pro6lems 4it'particular suppliers and maintaining records of any difficulties in t'e procurement process5

%trategies for future improvement mig't involve revie4ing t'e process used for t'e purc'ase of aparticular item and identifying any pro6lems or issues in t'at process5

'is could include investigating

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t'e process of cost analysis !comparing t'e costs of purc'ase operation consuma6les

maintenance contracts insurance leasing etc#

supply contracts !t'e availa6ility of a range of suppliers t'e discounts and terms offered delivery

mec'anisms and timeframes met'ods of ordering etc# Cas t'e 6est supplier c'osen for t'epurc'ase or 4as t'e organisation loc.ed into a unfavoura6le contract5

tec'nological c'anges !4'at met'ods 4ere used to identify any tec'nological improvements

4'ic' 4ould impact on t'e purc'ase decision@ 'as t'e purc'ase 6een made on t'e 6asis ofmatc'ing e9isting requirements eg to lin. into an e9isting computer net4or. or made to ta.eadvantage of ne4 tec'nology to en'ance our met'ods eg adding a la6el printer and mailingsoft4are to ta.e advantage of 6ul. mail discounts#5

"dentified areas for improvement prefera6ly 4it' suggested solutions s'ould 6e referred to anappropriate aut'ority so t'at future resource acquisitions can more effectively managed5

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Ke+ Terms and Concepts

Term 5efinition

(a4 materials Materials required for t'e manufacture or production of finis'ed goods

uman resources 'e people necessary to ac'ieve t'e organisations goals

%toc. and supplies 'e resources necessary for t'e organisation to carry out its 6usiness estoc.s of ra4 materials or finis'ed product assets consuma6les

uality Assurance Processes used to ensure continuous improvement or maintenance ofquality standards

Management andaccounta6ility c'annels

'e 4ays in 4'ic' management decisions and t'e means of assessingresults are transmitted t'roug' t'e organisation

Et'ical standards %tandards t'at are considered to 6e socially accepta6le morally rig't'onoura6le and fair


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Maintain Business Resources Information-2