LO3 Demonstrate the application of Whole Life Asset Managament

Question 1

Fixed Assets

Answer 1

used to describe items acquired by an organisation which are not routinly sold but used.

Question 2

Whole Life Asset Management Cycle

Answer 2

Pre-aqcuisition costs
Acquisition costs
Installation/comissioning costs
Operating Costs
Maintenance costs
Performance monitoring
End of Life / Disposal
Analyse historic performance
Lessons learnt / Specification

Question 3

Costs associated with comissioning

Answer 3

Installation
Training
Insurance
Testing
Operational Performance
Quality

Question 4

Deterioration

Answer 4

the process of someting becoming lower in quality or performance through wear and tear

Question 5

Depreciation

Answer 5

the reduction in value of a tangible and fixed asset over time

Question 6

costs to be considered in maintenance

Answer 6

Reliability
Spare Parts
Availability of spare parts
skilled technicians
frquency of service requirements
downtime due to maintenance

Question 7

Up Time

Answer 7

the time in which an asset is performng or functioning effectively

Question 8

Condition Performance Monitoring

Answer 8

A surveillance system that is designed to get th maximum production up time and availability of an asset

Question 9

Condition Performance Monitoring can measure

Answer 9

Temperature
Vibration
Output
Speed
Noise
Emissions
Quality

Question 10

Five approaches for condition performance monitoring

Answer 10

Do nothing
Reactive
Preventative
Predictive
Proactive

Question 11

Advanatages of Buying assets

Answer 11

Owndership
Changes / upgrades can be made
Usage not limited

Question 12

Disadvantages of buying an asset

Answer 12

Depreciation has to be calculated
Upgrades difficult
Maintenance costs

Question 13

Advantages of leasing an asset

Answer 13

No Initial capital outlay
Total amount payable is known
Budgeting easier
Fewer tax and depreciation calculations
Tax Efficiency

Question 14

Disadvantages of leasing an asset

Answer 14

comitted to payment over agreed upon time
overall price may end up higher than if just purchased
ownership never transfers
Limits on usage

Question 15

Departmental Involvement in Whole Life Asset Management

Answer 15

Marketing
Finance
Research
Operations
Sales
HR
Procurement
Maintenance

Question 16

Extended Supply Chains

Answer 16

cover every aspect of the process from identification of a need to the consumption by the end user

Question 17

An extended Supply Chain includes

Answer 17

Raw Material (Primary)
Producers (Secondary)
Distributors (Tertiary)
Retailers (Tertiary)
Consumers

Question 18

Internal Overheads

Answer 18

Administering global strategy
Researching
Travel
Agent fees

Question 19

3 economic industry sectors

Answer 19

Primary
Secondary
Tertiary

Question 20

Hofstedes 6 cultural Differences

Answer 20

Individualistic/collectivistic
Masculine/Feminine
Uncertainty avoidance
Power distance
Time perspective
Indulgence/restraint

Question 21

Advantages of fixing exchange rates

Answer 21

Eliminates fluctutation
Eliminates risk
Prevents depreciation of currency
Enables effective budgeting

Question 22

Disadvantages of fixing exchange rates

Answer 22

Savings can be missed
May incur hugher rate than live value
No flexibility
Rate could be fixed at the wrong time

Question 23

Costs and Risks associated with the logistics process

Answer 23

Delays
Loss of freight
Poor communication
Cofiscation at customs
Incorrect export/import papers
transport breakdown
Force Majeure

Question 24

Costs associated with storing additional products

Answer 24

Insurance
Heating
Lighting
Staff
Rent
Security

Question 25

Hard commodities

Answer 25

Minerals and periodic elements, of which there is a finite quantity on the earth

Question 26

Soft Commodities

Answer 26

Plants and animals that can be traded, these can be bred to generate an increase of supply

Question 27

Trade War

Answer 27

An economic conflict where countries make it difficult for global trading to happen

Question 28

Benefits of global sourcing

Answer 28

lower acquisition costs wide selection of suppliers specialist skills better quality

Question 29

Asset Finance (4)

Answer 29

Retained Profits Loan Credit Lease (Installments)

Question 30

One-off costs

Answer 30

incurred at one stage over the life span on an asset

Question 31

Ongoing costs

Answer 31

incurred throughout the whole life of an asset (training or software updates)

Question 32

Three categories of stakeholders

Answer 32

Internal External Connected

Question 33

Internal Stakeholders

Answer 33

people involved directly with the business

Question 34

External Stakeholders

Answer 34

People who have an interest in the organisation (community)

Question 35

Connected Stakeholders

Answer 35

Usually people who have a financial interest in the organisation (customers, banks)

Question 36

Mendelows stakeholder matrix

Answer 36

Power V Interest High Power Low Interest - Keep Satisfied High Power High Interest - Manage Closely Low Power Low Interest - Minimum Effort Low Power High Interest - Keep Informed

Question 37

Seven elements of key stakeholder management

Answer 37

Communication Consultation Empathy Planning Relationships Risk Compromise

Question 38

Objectives related to the creation of a business case

Answer 38

Strategic Thinking Improving Efficiency and quality of decision making Enabling management to evaluate proposals Compare alternatives and options Valid justification

Question 39

Belbins team roles model

Answer 39

1. Action oriented 2. People oriented 3. Thought oriented

Question 40

Tuckmans team development model

Answer 40

Forming Storming Norming Performing Adjourning

Question 41

Two Types of knowledge

Answer 41

Explicit - written down / documented Tacit - gained from experience

Question 42

Primary Data

Answer 42

direct from original source long time to gather surverys, interviews, experience expensive Specific

Question 43

Secondary Data

Answer 43

Gathered by third party Quick Books, journals, websites cheap

Question 44

Decomissioning process

Answer 44

Preparation Dismantling Processing Disposal

Question 45

Two options for the disposal of an asset if resale not possible

Answer 45

Part Exchange Recycling plant

Question 46

Risks related to the disposal of an asset

Answer 46

Damage to premises Health and Safety Contamination Security

Question 47

EU Waste management regulations

Answer 47

Battery Directive Landfill Directive Hazerdous Waste Directive WEEE Directive

Question 48

Battery Directive

Answer 48

Regulation of the manufacturing, accumilation and disposal of batteries

Question 49

Landfill Directive

Answer 49

Regulation to reduce negative effects on the environment caused by waste put into landfill

Question 50

Hazerdous Waste Regulations

Answer 50

to restrict the movement and storage of hazerdous waste

Question 51

WEEE Directive

Answer 51

The Waste Electrical and Electronic Equipment directive

Question 52

All businesses in the UK are required to read what regarding waste management

Answer 52

Waste Management, the Duty of Care: Code of Practice