MANAGE PHYSICAL ASSETS
AND INFRASTRUCTURE
D1.HML.CL10.06
D1.HRM.CL9.11
D2.TRM.CL9.11
Slide 1
Subject elements
This unit comprises three Elements:

Develop strategies for systematic maintenance, repair
and purchase of physical assets

Monitor the condition and performance of physical
assets in the workplace

Co-ordinate financing of physical assets
Slide 2
Assessment
Assessment for this unit may include:

Oral questions

Written questions

Work projects

Workplace observation of practical skills

Practical exercises

Formal report from supervisor
Slide 3
Element 1:
Develop strategies for
systematic maintenance, repair
and purchase of physical
assets
Slide 4
Develop strategies for systematic
maintenance, repair and purchase of
physical assets
Performance Criteria for this Element are:

Develop strategies for managing physical assets that
reflect overall enterprise business and marketing
objectives

Evaluate current and potential financial
objectives and constraints in developing
asset management strategies

Integrate all occupational health,
safety and welfare requirements into
physical asset management
Slide 5
Develop strategies for systematic
maintenance, repair and purchase of
physical assets
Performance Criteria for this Element are:

Develop and maintain an accurate and current physical
assets register as part of the asset management
strategy

Incorporate maintenance and repair regimes, which
minimise disruption and loss of revenue and which
involve appropriate specialists
Slide 6
Physical assets
Importance of physical assets
As a provider of tourism services, how you manage your
assets is integral to how well you do.

What are examples of assets in a tourism business?
Slide 7
Physical assets
Types of physical assets

Buildings

Land

Equipment and machinery

Fixtures, furniture and fittings

Vehicles

computer systems

Office equipment

Physical surroundings
Slide 8
Classification of physical assets
Infrastructure assets

These are physical assets fundamental to the
existence of the facility

They include buildings, paths, roadways, car parks, the
beach at a resort and the rides in a fun park
Slide 9
Classification of physical assets
Incidental assets

These are those physical assets which are not
essential to the existence of the facility

They include furniture, fittings, equipment, computers
and vehicles
Slide 10
Development strategy
Setting an asset development strategy
It is generally accepted that a business development
strategy relies on two complementary missions:

Service mission

Economic mission
Slide 11
Development strategy
Setting an asset development strategy

What needs to be considered when deciding what
asset development needs to take place in a tourism
business?

Refer to questions on TM
Slide 12
Development strategy
Steps in developing a strategy

Assess what opportunities you have in improvement
in your market position

Assess what opportunities you have in
creating new markets

Assess trends and indicators from the economy,
consumerism and social change
Slide 13
Development strategy
Steps in developing a strategy

Review your competition’s assets

Review current asset performances

Understand that assets are simultaneously securities
and risks
COMPLETE ACTIVITY 1
Slide 14
Asset acquisition questions
Questions to ask when considering purchase of
assets

Why do we want the asset?

Is it part of our business or strategic plan?

How long will it take to get our money back?

Will we lose money on this investment?

How will we pay for the asset? Will it be financed?
If so, how?

Are there any non-financial reasons
for wanting the asset?
Slide 15
Purpose of assets
Why are physical assets acquired?

To achieve the organisation’s long term strategic
business objectives

To control assets, and ensure their maintenance and
reliability

Overall image, social and economic status as well as
operational productivity and efficiency
Slide 16
Life cycle of assets
What is the life cycle of physical assets?

Planning

Acquiring

Operations and Maintenance

Disposal
Slide 17
ROI of assets
Return on investment on assets

Many organisations make decisions on new assets and
new projects by considering how long it will take to get
their money back on their potential investment

Usually investments should pay back investments in no
more than 3 years
COMPLETE ACTIVITY 2
Slide 18
Asset management
Asset Management
Asset management, is the way in which we look after the
assets in an organisation, either:

Day-to-day - maintenance and operations

Medium to long term - strategic and forward planning
Slide 19
Asset management
Asset management activities

Planning for assets and reviewing current stock based
on customer requirements

Creating or acquiring new assets

Accounting for assets and determining the actual cost
of the services they provide

Operating and maintaining assets

Monitoring performance and condition
of assets
Slide 20
Asset management
Asset management activities

Assessing refurbishment, renewal and replacement
options

Disposing of assets that are no longer required

Auditing the way in which assets are managed and the
asset management practices and procedures

Identifying and working to minimise life
cycle costs of new assets
Slide 21
Asset management
Asset management strategies
Asset management strategies may include:

Maintenance

Repair

Replacement
Slide 22
Asset management planning
Benefits of strategic asset planning
Companies adopt asset management systems which
provide short, medium and long term benefits.
What are:

Short term benefits?

Medium to long term benefits?
Slide 23
Types of long term assets
Tangible and intangible assets
Fixed, non-current assets are those assets owned by the
facility that are intended to remain for a period in excess of
one year to help generate income.
They can be:

Tangible assets

Intangible assets
Slide 24
Depreciation
Concept of depreciation
Where the value of an asset is progressively written down
in the accounts over an expected life
The full amount of depreciation is:

Historical cost

Less salvage value

Equals the depreciation or “loss” which
is apportioned over the useful life of
the asset
Slide 25
Depreciation
Causes of depreciation
There are three causes of depreciation:

Physical deterioration

Technical obsolescence

Commercial obsolescence
Slide 26
Asset management software
Role of asset management software
What are the:

Benefits of asset management software?

Types of asset management software?

Functions of asset management software?

Considerations when selecting asset management
software?
COMPLETE ACTIVITY 3
Slide 27
Asset OSH requirements
Identify OSH requirements when selecting assets

The health and safety of employees and customers is
an important issue and should not be overlooked

In all ASEAN countries, legislation and regulations will
exist that must be taken into account when purchasing
and using assets
COMPLETE ACTIVITY 4
Slide 28
Asset OSH requirements
Occupational safety, health and welfare requirements
OHS safety and welfare requirements may include:

Routine servicing of equipment

Tagging electrical equipment

Reporting faults in assets

Recording near-misses and accidents
when handling equipment
Slide 29
Asset OSH requirements
Safety
As an asset manager you are responsible for ensuring the
human interface with the work environment remains safe
at all times.

What are the responsibilities of a manager to ensure
the safety of people using assets?

What are common safety issues?

What causes these issues?

How can they be prevented?
COMPLETE ACTIVITIES 5 AND 6
Slide 30
Asset OSH requirements
Security

In this context security is seen as a distinct component
of an overall safety strategy for both the public and
staff

Security policy concerns protection from invasive,
deliberate (eg theft) or negligent actions of others

Protect people first then property
Slide 31
Asset OSH requirements
Asset Security

What are examples of asset security?
COMPLETE ACTIVITY 7
Slide 32
Asset Register
What is an asset register?

Asset Register requires the identification and
registration of all physical assets

The registration process involves the use of an asset
information system

The asset information system is a database of asset
information and is generally referred to as an Asset
Register
Slide 33
Asset Register
Assets register
Assets register may be used to:

Record, track and manage assets

Provide complete, accurate and timely data

Provide information for internal management and
external financial reporting purposes
Slide 34
Asset Register
Assets register information

The purchase price

The date and place of purchase

The manufacturers serial number

An estimate of disposal value and estimated life

The depreciation rate used in the accounts
Slide 35
Asset Register
Assets register information

The current value

The insurer and its insurance value

The reference number of the organisation

The maintenance schedule

The location of the asset
COMPLETE ACTIVITY 8
Slide 36
Equipment data cards
Equipment data cards
An equipment data or inventory card is a record of
information describing a physical asset.

Type of plant or equipment

Location of plant or equipment

Energy source

Age

“Condition” of plant or equipment

Forecasted or expected lifespan of plant or equipment
Slide 37
Equipment history records
Equipment history records

The equipment history record logs the inspections of
equipment and its repair history

Used to decide when to replace rather than repair plant
and equipment

Determine whether a repair is under warranty

Evaluating the need for spare parts and backup units

Establishing if the equipment has reached the end of
its useful life
Slide 38
Maintenance request forms
Maintenance request forms
Information required on a Maintenance request form
include, but are not limited to:

Date

Description of problem

Department responsible

Name of person reporting problem

Urgency
Slide 39
Inventory control
Inventory control
Inventory control is making a list of all assets that are
owned and controlled by an organisation.

What is the purpose of preparing an inventory control
list ?
Slide 40
Asset primer
An asset primer

An asset primer is a basic listing of assets common to
the tourism industry with monitoring and checks
required to be undertaken on a regular basis.

Review Asset Primer in TM
COMPLETE ACTIVITIES 9 AND 10
Slide 41
Maintenance and repair planning
Maintenance

Maintenance is all work that concerns effective
preservation of facilities, equipment and systems so
that they can perform at a level that is satisfactory to
needs
Slide 42
Maintenance and repair planning
Maintenance and repair

To ensure that these machinery, equipment and tools
can meet or exceed their “lifespan’, assets need to be
maintained and used in the appropriate conditions and
specifications

This will maximise the usage time and minimise cost
for replacement
Slide 43
Maintenance and repair planning
Role of management in maintaining assets
The manager has the following responsibilities when
maintaining assets:

Planning

Estimating

Programming

Review

Corrective action
Slide 44
Maintenance and repair planning
Categories of maintenance

Preventive and predictive maintenance

Routine maintenance and minor repairs

Major repairs

Emergency repairs

Alterations and improvements

Housekeeping
COMPLETE ACTIVITY 11
Slide 45
Maintenance and repair planning
Scheduling of maintenance
Scheduling is the allocation of labour power, materials and
equipment, at specific times and locations, for
accomplishment of prescribed maintenance work.

What must be taken into account when scheduling
maintenance?

When is the best time to schedule maintenance
activities?
Slide 46
Maintenance and repair planning
Scheduling of maintenance
Consider scheduling as synchronisation of:

Labour available

Materials available

Contingencies allowed for sudden emergencies

Minimised impact

Most efficient cost

Minimised customer awareness

Minimum downtime

Quick start-up and return to operability.
COMPLETE ACTIVITY 12
Slide 47
Maintenance and repair planning
Timing of maintenance

Long-term

Weekly

Daily
What maintenance activities take place at each of these
time intervals?
COMPLETE ACTIVITY 13
Slide 48
Environmental considerations
Environmental sustainability asset management
practices

Energy conservation

Garbage and chemical disposal

Maintenance

Facility cleaning

Fittings
Slide 49
Environmental considerations
The Environmental Protection Authority (EPA)

The EPA is responsible for protecting the environment
from pollution by minimizing and controlling wastes and
noise

It does this through a range of statutory and non-statutory
processes and programs, the cumulative effect of which is
to change community behaviour in relation to the
environment
Slide 50
Environmental considerations
Environment law
In many countries environment law has been continuously
evolving to cover ever wider areas of activity.
Environment law is generally developed in the form of
codes, acts and quality standards.

What are examples of environmental law in your
country?
Slide 51
Element 2:
Monitor the condition and
performance of physical assets
in the workplace
Slide 52
Monitor the condition and
performance of physical assets in the
workplace
Performance Criteria for this Element are:

Establish and implement systems to ensure that the
condition and performance of physical assets are
regularly reported and discussed within the enterprise

Establish and implement systems to identify timely
replacement of physical assets

Make assessments of physical asset
performance based on safety,
operational efficiency and customer
service quality
Slide 53
Monitor the condition and
performance of physical assets in the
workplace
Performance Criteria for this Element are:

Identify problems promptly and take appropriate action

Identify the need for and access appropriate specialist
assistance when required
Slide 54
Monitoring assets
Monitoring asset performance and conditions
As manager it is your overall responsibility to see that
systems are set up to ensure that the condition and
performance of physical assets is regularly reported and
discussed within the enterprise.

How can this be achieved?
Slide 55
Monitoring assets
Asset monitoring system
An asset monitoring system collects and reports
information on the condition and performance of assets.

What asset monitoring systems can be used?

What is asset performance measured against?
Slide 56
Monitoring assets
Asset monitoring system
The performance of the asset is evaluated against the
level of service provided to the customer.
This can generally be measured in terms of:

Reliability

Availability

Capacity

Meeting customer demands and needs
Slide 57
Monitoring assets
Systems to monitor condition and performance of
physical assets
Systems to monitor condition and performance of physical
assets may include:

Integration of reporting into day to day operating
procedures

Regular management reports

Internal and external inspections and audits

Regular staff feedback

Analysis of maintenance costs over a period of time
COMPLETE ACTIVITY 14
Slide 58
Monitoring assets
Preventative Maintenance Program (PM)
The most effective way of ensuring assets are maintained
well is to have a Preventive Maintenance program.

What is the purpose of a PM?

What are the benefits of a program?

How can a PM be introduced in the workplace?
Slide 59
Monitoring assets
Preventative Maintenance
Preventative maintenance should be ongoing and included
in everyday operations.
Preventative maintenance is designed to prevent
breakdowns and complaints and is vital in maintaining the
investment.

What are examples?
Slide 60
Monitoring assets
Planned Maintenance
Planned maintenance is maintenance that is carried out
during quiet periods, overnight or when areas are closed.

What are examples?
Slide 61
Monitoring assets
Selecting assets for a PM program
Selecting assets for such resource-dedication is subject to
the following factors:
 Criticality of the equipment to overall operability of the
facility
 Cost of repair or replacement if it fails
 Cost of downtime
 History to date of the asset’s performance
 Manufacturer’s recommendations
 Likely way it will fail
 Cost of monitoring versus costs of doing nothing
 The resources available
Slide 62
Asset management software
Computerised maintenance management software
(CMMS)
CMMS is designed to be a database of assets and their
profiles, recording maintenance histories and reporting on
cost, efficiency and effectiveness trends.

What software programs exist in your
country?
COMPLETE ACTIVITY 15
Slide 63
Asset observation
Importance of asset observation

How can you involve staff in asset observation?

What should they monitor?

How can they monitor?

How can they report faulty assets?
COMPLETE ACTIVITY 16
Slide 64
Energy management
Energy Management
The principles of energy management are to reduce the
amount and cost of energy tourism organisations.
Energy management is:

An analysis of uses of energy, which

Makes recommendations for reductions or
changes in usage, if required

Is a quick, cost effective way of savings in energy

An in-house process involving all departments
COMPLETE ACTIVITY 17
Slide 65
Maintenance administrative
processes
Establish maintenance administrative processes
Most administrative tasks relating to maintenance issues
relate to asset control, managing costs and contracts and
reporting back.

Controlling equipment

Maintenance manuals

Maintenance schedules

Collating other records
Slide 66
Identify asset replacement
Identify need for asset replacement
Replacement describes the situation where an asset
cannot be repaired or refurbished and must be replaced.

How can you identify when assets need to be
replaced?

How can you report faulty assets?

What is the process involved in replacing
expensive assets?
Slide 67
Identify asset replacement
Replacement, refurbishment or augmentation
Assets can be:

Replaced

Refurbished

Augmented
Slide 68
Identify asset replacement
Replacement, refurbishment or augmentation
Considerations:

Initial cost

Annual and periodic maintenance and operating costs

When capital will be needed and whether
it is likely to be available

Possible increases in effective life
or expected life

Benefits to customers
Slide 69
Identify asset replacement
Replacing major equipment


What must be considered:

During planning phase

When purchasing

When removing old equipment

When installing new equipment

Training of staff
What activities take place?
COMPLETE ACTIVITY 18
Slide 70
Monitor asset condition and
performance
Monitor the condition and performance of physical
assets
EXAMPLE

Provide an example of how can monitor the
condition and performance of physical assets in the
workplace
COMPLETE ACTIVITY 19
Slide 71
Identify problems and take action
Importance of TQM

The best way for managers to identify problems in a
timely manner comes down to their own 'Total Quality
Management' initiatives.

What TQM initiatives can be implemented?
Slide 72
Identify problems and take action
'Total Quality Management' initiatives

Inspecting

Assessing

Recording processes

Determining protocols and responsibilities

Apportioning or delegating responsibilities

Tuning operability as a whole
Slide 73
Identify problems and take action
Support mechanisms to identify problems

Build up staff communication mechanisms

Create a sense of ownership among staff of quality
operability

Avoid culpability track-downs if some asset
fails

Keep the incident records up to scratch

Have your contractors and emergency service listing
up to date, including out of hours numbers

Note customer comments and whether an asset
investigation is required
Slide 74
Identify problems and take action
Support mechanisms to identify problems

Keep on to environmental risk assessments

Develop performance indicators for major assets and,
via your PM program, assess whether they’re trending
up or down

If a staff member reports a potential problem then list it
as a “to do” immediately

Use CMMS systems as monitors

Keep a “nightmare list”
Slide 75
Identify need for specialist
assistance
Considerations

What are examples of considerations when deciding on
specialist assistance?

What types of assistance is available?

What are the benefits of using specialist assistance?
Slide 76
Identify need for specialist
assistance
Outsourcing asset management
What are:

Advantages to outsourcing?

Disadvantages to outsourcing?
Slide 77
Identify need for specialist
assistance
Types of appropriate specialists
Whilst the range of various outsourcing options is endless,
these may include:

Trades people

Professional cleaners

Contractors

Manufacturers

Assessors
Slide 78
Identify need for specialist
assistance
In-house or outsourcing asset management
What are examples of:

Commonly outsourced asset management items

Commonly in-house asset management items

Combinations of the two
COMPLETE ACTIVITY 20
Slide 79
Identify need for specialist
assistance
Ensuring quality in outsourced repairs and
maintenance work

In-house observation and supervision

Independent technical audit

Plain language explanations

Written reports of work done

Uninterrupted jobs

Bonus and penalties

Work warranties

Asset performance
Slide 80
Element 3:
Co-ordinate financing of
physical assets
Slide 81
Co-ordinate financing of physical
assets
Performance Criteria for this Element are:

Prepare accurate work or equipment specifications to
guide the acquisition process

Estimate acquisition costs based on evaluation of
current, accurate and relevant data, including supplier
quotations and estimates

Make appropriate decisions on the acquisition of
physical assets in accordance with enterprise policies
and procedures
Slide 82
Co-ordinate financing of physical
assets
Performance Criteria for this Element are:

Select methods of financing to meet in accordance with
enterprise policies and procedures

Implement the financing process in accordance with
enterprise policies and procedures

Make and keep accurate records of all financial
agreements and related documents
Slide 83
Prepare asset specifications
What is a ‘Specification’?

A specification refers to the manner in which a good or
service is to be provided

This includes constituents, construction, appearance,
performance of a material or apparatus or the standard
of workmanship required in its manufacturer
Slide 84
Prepare asset specifications
Work or equipment specifications
Work or equipment specifications may relate to:

Description of equipment or work to be provided

Standard of equipment or work to be provided

Purpose of equipment or work to be provided

Design or capability requirements
Slide 85
Prepare asset specifications
Specifying the asset
It is important to specify the asset required in detail.
Detailed specifications are used in the tender process and
to obtain quotations and prices.
Work and equipment specifications should detail:

The intended use of the asset

The limitations of this intended use

The material that to be used and its quality
Slide 86
Potential service provider
questions
Questions for potential service providers

What is your experience in this line of provision?

What qualifications does your company have?

What qualifications and training do your workers have?

How does the company ensure its workers work well?

Do you use subcontractors?

What is the TOT (Turn Around Time)?
Slide 87
Potential service provider
questions
Questions for potential service providers

Have you done what I asked? Have I got what I
needed?

What if you don’t meet your promises?

How do you assess your costs?

What warranties do you provide?

What’s the cost?
Slide 88
Types of specifications
Types of specifications
Specification are normally based on:

Functional – what is it used for, its prime
purpose

Performance – how does it perform

Technical – what is it made of, engineering
and construction features
Slide 89
Benefits of specifications
Benefits of good purchase specifications

Provides knowledge

Reduces misunderstandings

Reduces time

Enhances competition

Sets a standard

Gives instructions

Provides verification

Are specific

Guarantee price conformity

Outlines warranties
Slide 90
Inclusions in specifications
Inclusions in a specification

Characteristics of an item in terms of quality, size,
weight, production, age, degree and preparation

A precise listing and regime of the tasks you want done

Name and description of product or service

The performance requirement

The intended use of the product or service

Quality, durability and cost limitations

Test or inspection procedures
Slide 91
Inclusions in specifications
Inclusions in a specification

Warranty or service requirements

Frequency of use related to product or service

Size, weight, amount and number of items

Energy usage specifications

General instructions

Source

Specific bidder instructions

Payment methodology
Slide 92
Inclusions in specifications
Inclusions in a specification

Bonus and penalty scenarios

Agreed mechanisms for performance assessment

Equipment to be supplied by parties

Report methodology

Duration of contract

Early severance conditions

Procedures for contract variations

Required qualification levels of labour
COMPLETE ACTIVITY 21
Slide 93
Estimate acquisition costs
Estimating costs to acquire assets
Costs are estimated on:

Evaluation of quotations

Tenders from external suppliers

Appropriate maintenance agreements

In-house advice from appropriate departments
Slide 94
Estimate acquisition costs
Major steps in the purchasing cycle

Recognising the need to purchase goods or services

Preparing specifications

Collecting current, accurate and relevant data relating
to items and prices

Selecting a supplier

Ordering the goods or services

Receiving the goods or services
Slide 95
Estimate acquisition costs
Current, accurate and relevant data relating to items
and prices
The whole purpose of the tender process is to gather
current, accurate and relevant data used for estimating
costs.
This information can be gathered from:

Quotations from suppliers

Current maintenance contracts

Published or advertised prices

Previous contracts and costs
Slide 96
Tendering process
The tender process

Collect tender information

Evaluation of tender information

Rating essential and negotiable requirements

Identify criteria used to evaluate delivery response
times by supplier

Identify different ways to purchase goods
Slide 97
Selecting a contractor
Choosing a contractor / supplier of assets

What are considerations you would have?

What are the benefits and dangers of contractors?

What are questions you would ask when identifying
suitable contractors

What are critical requirements you seek in contractors?

What are contractual considerations
you would identify?
COMPLETE ACTIVITY 22
Slide 98
Making acquisition decision
Different ways to purchase assets

Off-the-shelf products

Custom built

Used equipment
COMPLETE ACTIVITY 23
Slide 99
Making acquisition decision
Identify supplier progress payments

What payment requirements do suppliers have in place
when selling major assets to your organisation?

What payment methods would they accept?
Slide 100
Making acquisition decision
Identify early costs

Testing or compliance costs

Transportation costs

Site preparation costs

Installation costs

Training costs

Specialty training may be required

Make-ready costs

Tooling, parts and suppliers

Spare parts costs
COMPLETE ACTIVITY 24
Slide 101
Identify methods of financing
Purchasing decision considerations
Before purchasing decisions are made, it is necessary to
consider the following:

Return on investment (ROI) you get from capital

Net profit margin you make out of cost centres

Asset turnover

Liquidity ratios

Gearing

Employee ratios
Slide 102
Identify methods of financing
Types of assets

Current

Non-current (fixed assets)

Intangible

Investments
Slide 103
Identify methods of financing
Methods of financing
In summary, the different methods of financing include

Purchasing

Leasing

Hiring
Slide 104
Identify methods of financing
Purchasing, leasing and hiring

When are they best used?

What are the advantages and disadvantages of each?

What are considerations / processes involved in using
each method of financing?
COMPLETE ACTIVITY 25
Slide 105
Making a final financial decision
Factors for consideration

Will the asset significantly improve customer satisfaction?

Will the asset rectify a problem or issue that is substantive
in nature?

Is acquisition desirable or essential?

Is it creating diversification, improved efficiency or
expansion in your market niche?

Is the membership supportive of the acquisition?

What are others in the industry doing?

What is cash flow and overall liquidity like?
Slide 106
Making a final financial decision
Factors for consideration

What investments exist to reinforce a decision?

How many “volatile” factors exist

What is the ROI of the asset as a % of the facility’s
turnover?

What is the asset’s percentage internal rate of return?

What is its pay-back period estimated to be? (purchase)

What is its ROI relative to loan payments? (purchase)

What is its ROI relative to lease payments? (lease)
Slide 107
Evaluation techniques
Evaluation techniques
Property managers are often required to purchase plant,
equipment, furniture and fittings.
To do this effectively they use three different techniques to
evaluate various options.

Pay back period

Net Present Value (NPV)

Internal Rate of Return (IRR)
COMPLETE ACTIVITY 26
Slide 108
Implement financing process
Responsibility of financial processes

Who should be responsible for the financial
arrangements of acquiring assets?

What considerations must be taken into account when
financing assets?

What assistance can be sought from others?
Slide 109
Implement financing process
Seeking assistance when acquiring assets

Your accountant

Your auditor

Your management and executive team

Local government business development advisory units

Peak body industry advisors

Government business advisory services

Bureau of Statistics

Local commercial land agents

Your financier or broker

Other facilities not in direct competition to you
Slide 110
Implement financing process
Investment decision considerations

Pay back period

A discounted pay back period assessment

A percentage internal rate of return

The net present value of the investment

A sensitivity analysis

Market analysis
COMPLETE ACTIVITY 27
Slide 111
Keep accurate records
Importance of keeping accurate records
It is usual business practice to retain and file originals of all
financial agreements and related documents.
These should be able to accessed promptly and easily
from secure locations.

What documents should be kept?

How should you maintain / store them?
Slide 112
Keep accurate records
Service Contracts
A contract is a legal document, which is an agreement
between the buyer and seller.
It consists of a set of terms and conditions, which both
parties agree to follow.

What information should be kept in a service contract?

Where should they be kept?
Slide 113
Keep accurate records
Maintenance records

Maintenance scheduling

Maintenance checklists

Manufacturers’ specifications

Fault reports

Backlog reports

Work orders
Slide 114
Keep accurate records
Maintenance records

Budgets

Buying reports

Incident reports

Labour-hours

Material costings and permits
COMPLETE ACTIVITY 28
Slide 115