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Important notes
Advise on resource requirements
Monitor equipment/resource usage and
maintenance
Acquire resources
Advise on resource requirements
Estimates of future and present business resources are calculated in accordance with organisational requirements
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Business resources may include
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eg buildings, rooms with specific purposes |
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eg computers with Microsoft programs loaded |
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eg materials required for the manufacture or production of finished goods |
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eg the staff working to achieve the organisation's goals |
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eg trading stock, consumables, fixed assets such as machinery or vehicles |
A variety of different methods will be used to calculate the need for business resources, depending on the type of resource. The business may be able to estimate the amount of stationery required over a week or month and order accordingly, but would determine future requirements for assets such as motor vehicles in a very different way. Resources can therefore be acquired on a daily, weekly, monthly, quarterly, biannual, annual or even less frequent basis according to the organisation's needs and requirements.
These organisational needs and requirements
- may be referred to or included in documents such as
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- mission statements, goals, objectives
- business and performance plans
- Occupational Health & Safety policies, procedures and programs
- quality assurance and/or procedures manuals
- manufacturer's and operational specifications
- legal and organisational policy/guidelines and requirements
- or they can be embedded in
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- systems and processes
- security and confidentiality requirements
- management and accountability channels
- access and equity principles and practice eg Anti Discrimination legislation
- ethical standards eg Industry Code of Practice, environmental standards
- quality and continuous improvement processes and standards
- defined resource parameters
Estimating the future and present requirements of particular resources may involve
- conducting a regular stocktake or keeping track of inventory using a perpetual inventory system
- liaison with other staff regarding their requirements
- using submissions for equipment or resources
- forecasting requirements based on historical data
- identifying urgent and non urgent requirements eg stationery required for a once-a-year advertising mailout might be purchased well in advance on special
- consulting tactical plans eg the need for staff for the proposed expansion of the manufacturing department
- determining the usable life of assets and planning for replacement
- deciding whether to purchase, hire, lease or outsource the resource
- referring to current legislation eg OH&S Guidelines to determine their impact on purchasing eg is ergonomic furniture mandatory?
- recognising organisational preferences eg only purchasing one brand of computer hardware, or white cars for the vehicle fleet.
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Estimating future and present business resources in accordance with organisational requirements will also necessitate being aware of budget allocations and restrictions, ordering procedures, which personnel have authority to purchase or to delegate resource purchase, policy and procedures regarding preferred suppliers or contracted suppliers or the tendering process.
The type of information required before deciding to purchase will include
- precise description of resource required
- brand, make 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 bulk discounts, prompt payment discounts, 30 days net payment
Advice is clear, concise and relevant to achievement of organisational requirements
Once information has been sourced from suppliers, catalogues, brochures, advertising materials, trade journals etc a summary of the information may be presented to the appropriate person. This may involve a memo, a fax or email, a verbal presentation or the writing of a report according to the level of information required.
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When presenting information remember
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Accuracy |
Ensure all data is accurate and complete; give specific description of the resource eg item number, colour, brand, size, cost per item, total cost |
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Brevity |
Include relevant and sufficient information so that a decision can be made, keep to the subject |
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Clarity |
State the purpose of your report or memo, present the data clearly and sequentially, use "Plain English" not business jargon |
Information is provided on the most economical and effective choice of equipment, materials and suppliers
Choice of equipment, materials and supplies might be determined by
- budgets eg monthly consumables budget, five-year leasing budget for fleet vehicles
- storage facilities eg garaging facilities for only five vehicles, storage space for a maximum of one pallet of paper for photocopier
- rate of use eg contracting for supply of raw materials on a bi-monthly basis
- suppliers eg better terms of trade, reliability of delivery, consistent quality of product
- availability eg short lead time
- warranty eg extended warranty on computer equipment
- running costs eg photocopier with lower per copy maintenance charge
Resource shortages and possible impact on operations are identified
The smooth running of an organisation will require keeping track of resources on a continuous basis. Shortages of stock or raw materials, consumables or human resources will impact on the achievement of organisational goals. From time to time a particular resource may be temporarily unavailable and substitution may be necessary.
Organisational policy and procedures may require staff to notify anticipated requirements to avoid shortages eg stationery required for a large mailout, additional computer for a new staff member, printing of additional copies of a price list for a trade promotion.
Other methods of reducing the possible impact of resource shortages include
- accurate recording of stock used eg using stock cards
- regular checking of inventory
- identifying alternate resources or suppliers, especially when shortages are beyond the control of the organisation eg petrol strike
- perusal of equipment maintenance records; ensuring maintenance is carried out and service contracts continued
- discussion of resource requirements at staff meetings
Monitor equipment/resource usage and maintenance
Resource handling is in accordance with established organisational requirements including OH&S requirements
Resources are valuable business assets and control systems are necessary to monitor the acquisition, movement and utilisation of these resources. It is important to regularly monitor the provision and use of resources and maintenance of equipment, and to do so according to organisational policy and procedures. Systematic handling of resources may involve
- valuing the total of stock during a stocktake
- ensuring maintenance is regularly carried out according to an equipment maintenance program
- keeping accurate and up-to-date records
- arranging for replacement of obsolete or outdated resources
- issuing of consumable resources according to organisational procedures
- using organisational procedures for the ordering of goods, knowing tendering processes and the organisation's preferred suppliers
- following organisational policy in recruiting personnel
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Resource requirements are based on
- demand or level of use
- durability or perishability of a particular item
- life of the resource - is it a fixed asset or due to become obsolete?
- storage facilities available
- cash flow and budget requirements
An important aspect of resource handling and monitoring is ensuring that all assets and equipment are used correctly and safely, in accordance with Occupational Health and Safety requirements.
Employers and employees both have rights and responsibilities regarding Occupational Health and Safety. Employers have a Duty of Care requiring them to plan for the prevention of workplace injuries and illnesses. Facilities and equipment must be maintained to a high standard and personal protective equipment (PPE) made available where necessary.
The organisation must train employees in safe procedures in the use of new technologies, safety regulations and the correct use of equipment and PPE. Safety signs, publications and information on rights, responsibilities, procedures and codes of practice must be available. Systems for the reporting of accidents or incidents must be in place.
Employers and employees also have the responsibility to prevent risks through correct manual handling and appropriate chemical safety procedures. Manual handling is any task that involves physical effort or the movement of an object or a load.
The National Occupational Health and Safety Commission (www.nohsc.gov.au 
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publishes Codes of Practice and National Standards for
- occupational health and safety issues (eg managing workplace hazards, safe working in a confined space)
- manual handling issues (eg National Standard for Manual Handling)
- chemical safety guidelines (preparation of material safety data sheets).
Workcover NSW (www.workcover.nsw.gov.au )
also publishes guidelines for a range of OH&S issues.
This site also encourages learning about safety in an
interactive game and quiz section calledSafety
Zone.
Organisations may have particular requirements to do with
- how accidents, incidents, maintenance requests, breakdowns etc are reported
- who has access to the site or specific areas of the premises eg areas signed HAZCHEM where chemicals are stored
- allowing only trained or supervised staff to use specific equipment
- location of the First-aid kit and first aid officer and how to seek medical attention
- who has the authority to purchase resources or recruit staff, delegate the scheduling of maintenance or asset acquisition
Business technology is used to monitor and identify the effective use of equipment and resources
In most organisations a range of technological tools are used to monitor and more effectively control the use of equipment and resources.
Examples include
- computers and computer applications eg databases, spreadsheets, accounting packages, computer aided design (CAD) and computer aided manufacturing (CAM), multi-media packages, bar-coding products and scanning information directly to computer database
- personal schedules eg diary or software package
- modems, Email, Internet/extranet/intranet
- photocopiers for record keeping
Such technology will assist in monitoring
- equipment usage, breakdowns, maintenance and repairs
- conducting time management surveys and tracking the use of assets (eg car fleet)
- use of consumables (stock records) or raw materials and the need to restock
- bar coded resources or stocks (eg client records or library resources being borrowed and returned)
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Other tools include
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A book or computer database indicating the use of a particular asset eg company car logbook |
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Refer to Assets register in the Keeping track of resources notes |
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The organisation may require requisition forms be submitted before any items can be issued from the stockroom or purchased by the authorised personnel. Alternatively, each department may be given a budget allocation with which to purchase consumable items. Reference can be made to database information or manual records to determine how and when particular resources (including human resources) might be available for use. |
Consultation with individuals and teams is used to facilitate effective decision making on the appropriate allocation of resources
The smooth running of an organisation and the best use of all resources will be enhanced when other staff are consulted for information and advice regarding their own, and their teams' resource requirements.
Most organisations have policies and procedures which can be followed to ensure appropriate decisions are made regarding the allocation of resources. This might include team meetings, application to a committee, completing requisition forms, or the use of historical information. If possible the knowledge and experience of staff should be utilised in purchasing and allocation decisions. From time to time it may be necessary to negotiate with other individuals or groups to resolve a problem. Negotiation involves conferring with others to reach mutual agreement. Conflict resolution involves finding a solution for opposition between individuals or groups and might involve the participation of a mediator to assist the parties to find agreement. At all times equity principles should be followed to ensure all staff are treated fairly and consistently eg all new staff should be entitled to the same equipment; the entire team should be consulted about the location of equipment used by that team.
Relevant policies regarding resource use are identified and adhered to in the performance of operational tasks
Although most organisations have established (written) policy and procedures the business may also have unwritten workplace conventions or behaviours relating to the acquisition of resources.
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Policies may include
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Examples
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A purchase requisition form is completed and given to the appropriate supervisor |
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All requests for purchase of consumables must be notified before 15th of month |
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All motor vehicles are purchased at local dealership for ease of servicing |
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Team leaders must sign purchase requisition forms before they are given to the appropriate authority |
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The administration department has a budget of $1500 for stationery purchases January to June. |
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The Human Resources Officer works with department supervisors to establish staffing requirements for the coming period. |
Resource usage is routinely monitored and compared with estimate requirements in budget plans
Control of stock will not only insure against theft, misuse or misappropriation but will also enable intelligent and timely ordering, avoid the dangers of overstocking, reduce the amount of working capital tied up in resources and reduce spoilage or outdated materials being held. Accurate evaluation of inventories should be conducted to ensure that proposed budgets (both expenditure and income) are being achieved.
Acquire resources
Acquisition and storage of resources is in accordance with organisational requirements
After the decision to purchase resources has been made, organisational policy and procedures should be followed to acquire the goods or services within the appropriate timeframe.
Acquisition of resources might involve
- tendered processes - a tender is an offer to provide
goods or services which includes detailed estimates and the
total cost of supply. It is common for government
departments to advertise (or "call") for tenders
for specific projects eg provision of mail services to a
rural community or supply of a fleet of vehicles.
- non tendered processes are other methods of acquiring
resources and might include using a purchase requisition or
purchase order, seeking quotes from a number of suppliers
according to organisational policy and procedures, taking
advantage of sales or clearances, hiring staff on a casual
basis, leasing equipment for a period of time.
- contracted supplier ordering - involves purchasing from
a supplier who is contracted to that organisation for a
given period of time to provide certain goods. The supplier
usually offers exceptional value in return for this
contract. An example would be in a large organisation
contracting to purchase all computers from the one
supplier.
- internal approvals - it is usual for all purchases to
require some form of internal approval or authorisation
before purchase can be made. This authority could vary from
being able to approve petty cash purchases less than $100
through to having authority to replace the company's
fleet of cars.
- periodic forecasts - the smooth running of an organisation will require keeping track of resources on a continuous basis. Shortages of stock or raw materials, consumables or human resources will impact on the achievement of organisational goals. To avoid this some form of periodic forecast - a regular estimate of future needs or outcomes - needs to be conducted. This will allow the organisation to better plan for and budget for upcoming purchases.
Even before goods have been received, decisions should be made regarding storage of the resources. Goods need to be monitored to make sure they
- are easily accounted for
- are not damaged in any way
- are of no danger to workers
- have not become out-of-date or obsolete
- are secure from theft or pilfering
Acquisition of resources is cost-effective and consistent with organisational timelines
Organisations require purchasing to be undertaken in a cost-effective and timely manner and to do so the needs of the organisation need to be thoroughly researched. Regardless of the savings made, it is no use purchasing at a sale if the goods are delivered after the need for the goods has passed.
Methods of acquiring resources in a cost-effective manner include
- bulk purchases - purchasing a large quantity will often attract a discount. This will only be beneficial if the organisation can turn over the goods within the life of the good.
- discounts - often available for bulk purchases, with contracted suppliers, with certain suppliers for given periods of time, as a special introductory offer or deal
- prompt payment policies - a discount given by the supplier to encourage the purchaser to pay the account quickly eg 5% 7 days would indicate that if the account is paid within seven days, the purchaser can take 5% off the bill.
- timing (eg sales) - from time to time the needs of the organisation will coincide with a sale. Forward planning will often identify upcoming needs and staff should be aware of periodic opportunities to make extra savings.
Resources are acquired within available timelines to meet identified requirements
The length of time between ordering and delivery will vary according to the quantity and type of goods or services requested. Stationery consumables may be delivered within 24 hours, a call for tender for the construction of a building may take several months. The needs of the organisation must be considered on an individual basis as there are times when the timing of provision is the most important factor.
Orders should be recorded and delivery followed up as necessary. If goods do not arrive as requested they should be followed up and a record kept of the inquiry. It may be necessary to arrange for alternate supply if goods are unavailable from the usual stockist.
Resource acquisition processes are reviewed to identify improvements in future resource acquisitions
Organisations may benefit from conducting a regular review of their resource acquisition processes in order to identify areas where future improvements could be made. There may be issues such as
- a breakdown in the supply process
- an overrun of a budget allocation
- the purchase of unsatisfactory goods
- the discovery of an alternate supplier
- a review of practices.
Review strategies should include feedback and discussion with relevant staff, recording problems with particular suppliers and maintaining records of any difficulties in the procurement process.
Strategies for future improvement might involve reviewing the process used for the purchase of a particular item and identifying any problems or issues in that process.
This could include investigating
- the process of cost analysis (comparing the costs of purchase, operation, consumables, maintenance, contracts, insurance, leasing etc),
- supply contracts (the availability of a range of suppliers, the discounts and terms offered, delivery mechanisms and timeframes, methods of ordering etc) Was the best supplier chosen for the purchase or was the organisation locked into a unfavourable contract.
- technological changes (what methods were used to identify any technological improvements which would impact on the purchase decision; has the purchase been made on the basis of matching existing requirements eg to link into an existing computer network or made to take advantage of new technology to enhance our methods eg adding a label printer and mailing software to take advantage of bulk mail discounts).
Identified areas for improvement, preferably with suggested solutions, should be referred to an appropriate authority so that future resource acquisitions can more effectively managed.
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