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SITXFIN005 Manage physical assets

Assessment Tasks and Instructions

Assessment for this Unit of Competency/Cluster Details
Assessment 1
Assessment 2 Project
Assessment conducted in this instance: Assessment 1           2

Assessment Tasks and Instructions

Assessment Guidelines

What will be assessed
The purpose of this assessment is to assess your ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

·          develop a plan for the acquisition, maintenance and replacement of at least three different types of physical assets listed in the knowledge evidence

·          demonstrate procedures to:

o   monitor the utility of above assets to meet business needs

o   provide regular financial reports on the assets

o   record formal and informal customer and staff feedback

o   integrate day-to-day condition reports

o   schedule internal or external inspections or audits

o   schedule management reports

o   develop and maintain a current register for the above assets.

Place/Location where assessment will be conducted/Timeframes
DC Training Kitchen and DC Class Room
Resource Requirements
Refer to the Assessment conditions attached to the Futura Group Mapping Document located in the teacher support tools folder or the “Assessment Conditions” for this unit in the SIT 1.0 Training Package.

Computer, Internet Access, financial data, organisational procedures relevant to the organisation for which physical assets are managed and to be acquired.

Instructions for assessment including WHS requirements
The project for assessment 2 consists of 3 parts, Part A, B and C

For Part A

you are required to develop a resource acquisition plan for the acquisition of 3 different resources from the following main categories:

·         buildings

·         computer systems

·         equipment fixtures, fittings and furniture in one of the following:

o   accommodation establishments

o   commercial kitchens

o   restaurants and bars

o   storage areas

o   tourism, hospitality and event offices

o   transportation depots

·         gardens

·         pools

·         rides and games

·         vehicles

·         vessels

For Part B

you are required to develop an asset register which needs to list the details for the 3 new physical assets you have determined in Part A. You must include the maintenance requirements and schedule of maintenance for each asset.

For Part C

you are required to develop a resource management strategy which provides details on how the efficiency of each asset is monitored

Assessment 2

The project for assessment 2 consists of 3 parts, Part A, B and C

 Part A

Requires you to develop a resource acquisition plan for the acquisition of 3 different resources from the following main categories:

  • buildings
  • computer systems
  • equipment fixtures, fittings and furniture in one of the following:
  • accommodation establishments
  • commercial kitchens
  • restaurants and bars
  • storage areas
  • tourism, hospitality and event offices
  • transportation depots
  • gardens
  • pools
  • rides and games
  • vehicles
  • vessels

Part B

Requires you to develop an asset register which needs to list the details for the 3 new physical assets you have determined in Part A. You must include the maintenance requirements and schedule of maintenance for each asset.

Part C

Requires you to develop a resource management strategy which provides details on how the efficiency of each asset is monitored

PART A –Acquisition Plan                                                                                            


You are required to choose 3 different physical assets, relevant for an organisation in the Tourism, hospitality or event industries, which may include any of the following:

  • buildings
  • computer systems
  • equipment fixtures, fittings and furniture in one of the following:
  • accommodation establishments
  • commercial kitchens
  • restaurants and bars
  • storage areas
  • tourism, hospitality and event offices
  • transportation depots
  • gardens
  • pools
  • rides and games
  • vehicles
  • vessels
  1. Provide an overview of the business activities of the organisation relevant to the physical assets

Activities in the hospitality industry include weddings, executive gatherings, holiday parties, and fundraisers. The event organizer, restaurant owner, banquet room supervisor or restaurant owner all strive to make these events a customer, guest, and their own success. This contains businesses selling hotels, motels, beaches, holiday parks, Restaurants, caterers, places of meetings and activities, entertainment companies, clubs, and casinos. Tourism, recreation, and festivals involve several experienced students from the Strong and competitive, demanding economic sectors.

Let’s take an example i.e. KFC Australia business is a type of hospitality business which required to make a acquisition plan . The different physical asset are required such as equipment, utensils and storage areas . Each category of assets has unique traits and functions inside the company. So , these physical asset are used for satisfying the need and wants of the customer (Looi ,et,al, (2022)).

  1. Commercial kitchen

Commercial kitchens can be used in restaurants such as in KFC Australia and these restaurant  are typically larger than a residential kitchen and are fitted with larger and heavier appliances. A large restaurant, for example, might have a massive walk-in refrigerator, and a large commercial dishwasher. Additionally, company kitchens are proposed to handle much more notable amount of food than a private kitchen. The three cooking techniques consist of dry cooking, moist cooking, and blended cooking (Farinha, (2018)).Each of those techniques uses heat to cook food in an alternate way. All methods of cooking can be gathered under one of these three styles, from frying, grilling to streaming List the purpose of the acquisition or replacement of the physical assets, providing detailed information what informs the decision to acquire these new assets.

  1. List the purpose of the acquisition or replacement of the physical assets, providing detailed information what informs the decision to acquire these new

Purposes for acquisition or replacement are;

  • Properties are older than life to which they were originally meant.
  • Old Asset maintenance costs are higher than the purchase costs.
  • Replacement failures have led to high energy consumption.
  • Replacement failures led to high maintenance costs.
  • Replacement deficiencies have resulted in increased risk of injuries and calamities.
  • In financial aspects and business dynamic, the sunken expense is considered as the cost that has just been acquired and cannot be recouped. On the off chance that the sunken expense of existing resource is an impressive sum, associations attempt to keep their residual resources till the finish of outstanding lifetime of those benefits.
  1. Write an overview of specifications for each asset which clearly outline what requirements each asset needs to fulfil in terms of capacity, performance, size, location requirements and maximum budget for each or for the overall budget parameter.

Commercial kitchen in KFC Australia :

A walk-in refrigerator, large chest and standing freezer, 25 liter fryers, 4 gas burner, commercial oven, salamander, microwave, dishwasher, prep bench with freezer underneath.

Budget: a budget for commercial kitchen would be estimated to $100,000 Vehicle:

Need one vehicle for carrying food to other place or buying stuff for business Budget:

The budget for vehicle is around $20,000 Building and performance:

Capacity is the maximum amount of production that an organization can maintain to manufacture a product or provide a service, and the capacity is a measure of an entity’s ability to achieve its goals, especially in relation to its overall purpose.

For example : In KFC Australia , they are providing a service such as Waiter service , services related to the food and drink . cart services ,cleaning and wiping services and so on (LI & YU, (2015)).

Asset performance is the ability to give customers the appropriate level of service. This can usually be calculated in terms of reliability, availability, capability and consumer demands and requirements.

Property size and amenities

  • Free parking for customers
  • Renovated reception with big waiting areas
  1. Obtain 3 prices or quotes from different suppliers or sources for each Attach the correspondence and final quote received for each asset to this project.
Commercial Kitchen Equipment
Quote 1: $200,000 Quote 2: $185,000 Quote 3: $151,000
Quote 1: $96,690 Quote 2: $100,000 Quote 3: $80,990
Quote 1: $120,000 Quote 2: $125,000 Quote 3: $10,5000

Correspondence: year-warranty/1163623225

  1. Contact a financial institution and at least 2 different suppliers and obtain information on 3 different financing options available and costs (attach copies of your correspondence).
Pacific business finance TESS loans Indigenous business Australia
Quote $350,000 Quote $359,000 Quote $250,000


Financial institution is contacted for business loan with all the quotation. Contact furthermore banks for business financial documents for loan assessments.

Some of the service provided by financial institutions is business loan, lines credits, overdraft options, finance invoice, leasing equipment and financing assets.

Establishments, governments, and different funders here and there issue awards, repayable awards, or program- related speculations (PRIs) to finance clean vitality and vitality effectiveness ventures in strategic associations. An award is an immediate gift (and is in this way not thought about a credit or obligation), while a repayable award accompanies a prerequisite that the chief be taken care of to the contributor. A PRI is a generally new structure wherein the giver gives an advance with a financing cost well beneath the standard market rate, permitting the contributor to consider the PRI a beneficent gift if it meets certain IRS necessities. These choices are given by an assortment of nearby, territorial, and national associations, and each program normally has its own objective market and overall objectives (Bates & Trevena,(2020)).

Trade credits are offered to the business by suppliers for payment in instalments. It is offered to the most trusted business by suppliers to delay the payment for purchased items for certain estimated period

  1. Calculate the finance variants offered to you and determine the best options for each asset. Your options need to include potential factors for depreciation, consideration for technology changes and financial impacts on the organization and financial aspects for which you will seek specialist advice. (Your depreciation calculations must consider the current regulations published on the ATO website).

The depreciation are mentioned below: Commercial kitchen equipment’s

Motor van

Capital works

  1. Based on your calculations in Q.7, explain the official process that now needs to be followed to finalise the acquisition of each asset. This may include processes in your existing workplace or common industry standards and needs to provide:
    • details for detailed specifications,
    • legal contracts,
    • requirements and documentation applicable to different acquisition and financing methods,
    • preparation of documentation for disposal of assets that are being replaced including tax
  1. Requirements and documentation applicable to different methods of procurement and financing,
  2. Preparation of paperwork for disposition of the replaced properties and tax liabilities.
  3. Information on parameters,
  4. Valid Agreements,

Key trait of asset management concepts will tackle system costs with a view to:

  • Maximizing the potential of existing assets for service.
  • Reducing overall asset ownership costs by using life-cycle management techniques; and
  • Ensure that results are focused more closely by establishing clear accountability and asset responsibility.
  • Reduced new asset demand

Planning Terms of Reference (TOR):

TOR defined as targets, objectives, and extent of the task and give foundation data (counting a rundown of existing significant investigations and essential information) to encourage the experts’ readiness of their recommendations. On the off chance that move of information or preparing is a goal; it ought to be explicitly delineated alongside subtleties of number of staff to be prepared, etc., to empower advisors to appraise the necessary assets. Peak will list the administrations and studies important to do the task and the normal yields (for instance, reports, information, maps, and overviews).

Firms will be urged to remark on the TOR in their recommendations (Food & Council, (2014)). The Ministry’s and advisors’ duties should be obviously characterized in the TOR. While getting ready TOR, the issues referenced above (Types of Consultancy Contracts-maintaining a strategic distance from rate contracts quite far) and (Conflict of Interest) must be kept in see.

Economic Evaluation

An assets purchase understanding (APA) is utilized which is an understanding between a purchaser and a merchant that settles terms and conditions identified with the buy and offer of an organization’s benefits capital resource is an advantage held by a venture to procure income. A capital resource is not expected available to be purchased in the customary course of business.

Capital resources incorporate things like:

  • Motor vehicles
  • Manufacturing machine
  • Office equipment’s
  • Land and structures.

On the off chance that you sell, move or in any case discard a capital resource, and you’re enlisted or required to be enrolled for GST, it’s commonly an available deal and you have to represent GST on the deal.

Ref: transactions/GST-and-the-disposal-of-capital-assets/

Part B – Asset Register                                                                                                                          Task:

  1. Develop an asset register which lists the 3 assets determined in Part Your asset register needs to include the following details:
  • Asset Details
  • Asset description/model/type
  • Serial Numbers
  • Purchase date
  • Cost
  • Depreciation amount (from when you undertake this assessment to the end of the financial year). If you have no current value, then base this calculation on the approximate price you have determined using the ATO
  • Closing Written Down Values (at the End of financial year where you undertake this assessment)Asset Register Template


Asset description Asset serial number Asset ID


Purchase date Asset value


Fund Source


Date of Depreciation Value of accumulated depreciation Current Value
Land and




99843 1/10/2016 120000 bank loan 4.95 08/08/2022 50,000 900,000




998239 1/10/2016 499 Cash 08/08/2022 235 264




902942 1/10/2016 150000 bank loan 4.95 08/08/2022 30000 40000


Asset Disposal Register


Asset Disposal Register


Asset serial number

Asset ID


Purchase date

Disposal date

Disposal method (by sale, theft or write off)

Value of Disposal

Land and




99843 1/10/2016 17/08/2022 renovation 8000




998239 1/10/2016 17/08/2022 sale 100




902942 1/10/2016 17/08/2022 write-off 10000

  1. Develop a maintenance register and identify the maintenance requirements for each asset For some assets that might be determined through lease clauses or service contract agreements. If so, include these including the details. For the remaining assets consult the user manuals or manufacturer’s recommendations with consideration to frequency of use relevant to your organisation. For example if a post-mix machine or coffee machine is connected to water filter then this needs to be reflected in the maintenance requirements.
Maintenance type Time based


Failure finding


Condition based


Risk based


Cleaning the floor Daily Healthy and

Safety standard

Non slip floor Staff check
Fire alarm Monthly Standard Work properly Inspection
Cleaning dust/ wiping

filter exchange

Weekly Standard Clean Staff check
Computer system
POS upgrade Monthly Standard Supplier Supplier check
Commercial kitchen
Wash hoods Monthly Standard Clean Staff check
Clean cool room Daily Standard Clean Staff check
Clean coffee machine daily standard Clean Staff check

 Part C – Resource management strategy

  1. Develop a maintenance regime for each asset based on the maintenance requirements you have determined in Part B.


Description of Service                                                              Frequency of Service

Throw the bin Daily
Wipe equipment Daily
Clean workplace Daily
Restore paper and soap dispensers Daily
Floor sweeping and mopping Daily
Window Cleaning weekly
Checking working condition of Lifts


Air conditioner

Color and paint Yearly

 REGIME FOR Vehicles,

  • Save your data on a regular basis.
  • Check your machines weekly.
  • Do the service monthly
  • Monthly: check all your documents and keep them on your hard drive.
  • Backup your hard drive as a picture twice a year. Also test the machines if there is anything to repair then remove it.

REGIME FOR Commercial Kitchen Equipment:

  • Daily: cleaning
  • Daily: washing floors
  • Monthly: Weed and grass removal
  • Monthly: hose backyard
  • Seasonal clean-up
  • Yearly: cleaning up storage and reinventing

2.      The maintenance regime needs to include the following details and outline how each aspect is affected and as a result addressed:

  • Reporting and monitoring mechanisms to ensure assets are functioning effectively and issues are reported by using correct and suitable procedures including provisions for specialist advice for complex

It makes more effective for managing and monitoring for reporting. Easy to check every specific work is going well or not, so can find if any maintenance has problem and how to fix this. All the staff can get the information from this report.

  • Provisions for collecting feedback from customers and reports from

Collect customer feedback and report from staffs shows the value their opinions. And this can help they feeling more attached to our company so help to make stronger relationship with them. They are internal and external customer. So when we collecting their opinion, it is help to find the way what we need fix or make more improve for business.

  • Types of maintenance required including common routine maintenance based on the organisation’s activities for example adjusting doors, fixing furniture, cleaning air- conditioning filters in guest rooms, etc.
  • Locks, excluding work that must be carried out by a professional locksmith
  • Supply and fitting of light tubes and globes
  • Replacement of castors on chairs
  • Regular inspections of gutters and down pipes
  • Cleaning of silt and acid traps
  • Checks of security fences and minor repairs as required
  • Soft fall areas in playgrounds/ovals to be maintained at a safe depth
  • Repainting of signs/blackboards
  • Minor landscape maintenance
  • Replacing tap washers
  • Replacing signs
  • Repair of insect screens
  • Minor repairs to furniture and equipment
  • Minor wall, ceiling and door repairs
  • Location of maintenance, g. can it be done off-site or away from heavily-trafficked areas?

The fixable damage or maintenance that can be done by a technician and the equipment’s are easily available it can be fixed at the site away from the traffic. If not, it needs to be carried to the repair shop

  • Expected duration of maintenance works

The maintenance duration depends upon the type of damage, circumstance, and the experience of repair man. But proper maintenance of workplace can take 3-4 days depending upon the size.

  • Timing of scheduled maintenance, e.g. slow periods such as during the day for a nightclub, or during the night in high frequency

It is important to consider all the surroundings and available equipment’s in a business kitchen that should be cleaned, and to make an arrangement about who will clean them, when they’ll be cleaned and how they’ll be cleaned. Remember to save finished calendars as a record for Health Inspectors. And furthermore, remember to clean all the hard to reach areas where the dust and dirt are stuck unseen. For example: behind the fridge, and underneath toaster.

  • Likely disruption to operations – what are the disruptions and what are the expected impacts?

Some example of disruption is prep bench freeze making loud noise during service and the oven seal came out as it does not trap heat completely. Maintenance worker can be called after the service is over or after the peak time is over. Because it affects the service and productivity

  • WHS issues

WHS is really important issue. All workers are responsible for the WHS impact of their own actions in this hospitality business. The entire worker takes reasonable care for their own health and safety. Hazards within the disability services sector which may impose a risk to employees and clients alike. To reduce the risk of injury employers are required to implement risk assessment and control systems within their workplace. A hazard is anything with the potential to cause injury or property damage. A risk is the likelihood that such injury or damage will occur. Many hazards and their associated risks are well knows and have well established and accepted control measures. In this situation, the second step to formally assess the risk is unnecessary. If after identifying a hazard, you already know the risk and how to control it effectively, you may simply implement the controls. Workers should be consulted at each step of the process (Williams,et,al, (2020)). Managing work health and safety risks is an ongoing process that is triggered when any changes affect you work activities.

  • Legal and regulatory requirements which apply for the physical assets during the course of the financial year (for example for vehicles carrying passengers, electrical equipment or as relevant to the specifc assets)

Legal and regulatory requirements implies every single relevant law, rules, guidelines, orders, necessities, rules, translations, orders and demands (regardless of whether they have the power of law) from and from any Regulatory Authority, and plans, memoranda and concurrences with it. Consistence with the guidelines is the point at which an organization consents to state, government and global laws and guidelines appropriate to its activities. Explicit can vary, to a great extent relying upon industry and type of organization (Palepu & Coulton,(2020)).

Rundown of cost impacts for HR (for models where support would, for example require punishment rates for upkeep staff) or the costs where contractual workers are locked in for explicit support prerequisites

  • Summary of cost impacts for human resources (for examples where maintenance would, g. require penalty rates for maintenance staff) or the costs where contractors are engaged for specific maintenance requirements

Support contracts are commonly the most practical strategy for overhauling or keeping up exceptionally specialized, logical, or complex resource/gear on account of the idea of the benefit/hardware and the need to downplay its vacation. Perplexing and costly resource/hardware is typically best kept up or overhauled by the first gear producer (OEM) or its approved help association or the outsiders keen on putting resources into foundation. Estimation of expenses for support contracts is a mind-boggling process and is significant for both the proprietors and the specialist co-ops (DeCenzo & Verhulst, (2016)). Specialist organizations need to realize the evaluated cost to abstain from making misfortune. The proprietors/clients need to realize it to choose contract cost with the goal that they are not paying an excessive amount of contrasted with the expense of doing that in-house.

  • Costs of scheduled maintenance in terms of parts, required equipment to perform the maintenance and consumables

Even though minimal planning is needed, if not done correctly, the disadvantages of activating maintenance can be major. If the technique is applied to all equipment, there will be significant delays in the production when a critical piece of equipment fails. Therefore, if you do not have the right parts and supplies at hand, the rushed cost of shipping can get high (Adongo & Jagongo, (2013)).

  • Provisions for monitoring of financial performance of the assets over the budget

For audit effectiveness, researchers use multiple proxies, with little guidance on choosing among them.

We provide a framework for systematically determining their individual strengths and weaknesses. Since it is inextricably related to the quality of financial reporting, audit quality also depends on the organizations’ intrinsic characteristics and financial reporting systems (Manrique & Martí-Ballester,(2017)).

  • Occurrences based on the details outlined in the questions above which would inform to review or audit the performance or viability of the assets.

It is very important to monitor a wide range of “performance indicators” in your business, in order to ensure that appropriate and timely decisions and plans can be made. Given that sales, profit margins and cash flow are the lifeblood of any business, owners should place particular emphasis on receiving regular reports on these areas of the business. Knowing the financial position becomes even more important as the business grows, especially if your plan is to grow the business substantially. Lack of a precise and timely knowledge of the current financial position can lead to business failure and have other consequences for the directors/owners.

FINANCIAL STATEMENTS the minimum financial information for any business should be periodic financial statements consisting of at least a Balance Sheet and Profit and Loss Statement. Businesses that provide credit to customers also need to control their debtors through monthly aged debtor’s trial balances. Those who have a significant investment in stock should control that through perpetual inventory records. Regular debtor and inventory reports will help prevent too much capital being tied up in these areas and allows for prompt follow up action. For example In KFC Ausrtalia , To avoid bad debts, alter inventory ordering procedures and permit fast follow-up with debtors. Balance sheets have the drawback of being lag indicators since they present company performance after the fact (Anand & Yeung, (2018)).

If prepared solely on an annual basis (and often this happens well after the end of the year) there is a considerable lag. More frequent reporting periods are needed for more important data as well as use made of other financial and non-financial indicators. Examples are number of enquiries, number of customers per day, average sales value, number of quoted jobs lost, and customer satisfaction and so on.


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