What activities are necessary to manage resources like physical assets in a multi-location manufacturing/merchandising firm?

Question

Quizplus · Accepted Answer

The Answer is a. Assessing needs: First, the asset needs of the organization must be identified. These needs might include new factories, retail locations, vehicles, and computers. Asset needs are usually based on forecasts, future plans, and overall strategy. Effective strategic planning is critical!
b. Evaluating available resources: Once a resource need is identified, the various alternatives must be evaluated. The best factory location, for example, may depend on many factors. Retail locations depend on customer traffic, accessibility, and land costs. Effective property management requires a full analysis of the various alternatives for acquiring assets including the decision to lease, make, or buy assets.
c. Authorization of procurement: Once options have been specified and evaluated, senior management decides which options to pursue. These decisions will be based on preliminary information and tentative negotiations with potential suppliers.
d. Planning: Formal negotiations with suppliers determine contract prices and terms, delivery schedules or milestones, and service or warranty arrangements. Final selection of suppliers and specific models/versions/designs/floor plans occurs at this point in the process.
e. Authorization of acquisition: Given the extensive details required for most asset acquisitions, a separate review and approval of final plans for an acquisition is necessary. Significant asset acquisitions may need approval by the board of directors. This results in a signed contract with a chosen supplier and commitment to a delivery or construction schedule.
f. Acquisition or construction/remodeling: For most assets, this step of the process involves taking delivery of the asset, physical set-up, and testing. For land or buildings, the acquisition process may be quite complex and time consuming, especially if the asset is to be constructed.
g. Operations and maintenance: All assets require continuous maintenance and upkeep, and occasional repairs. This is an ongoing activity.

What Activities Are Necessary to Manage Resources Like Physical Assets