Carefully read the following information

You have recently been appointed manager of a newly opened café.

The owner, Carlo, has been working in cafes for years, mostly his parents’.

Carlo recently received an inheritance. He is a bit hazy about the details, but enough for him to open the
café without the usual financial pressure, which has been great. His modest financial goal is to establish
a café that will generate a small profit and produce wonderful coffee for many years to come.

Carlo wants to make sure that he is not just throwing his money out the window, though, and his
accountant has recommended that you develop an Asset Management Policy and Procedures, and an
Asset Register that can be used to keep track of the café’s assets and their maintenance schedule. You
should develop both of these and send them to the accountant for their approval.

You have made a list of the assets you can see in the café and have asked Carlo about where each is
from.

The café’s espresso machine used to be the centre of Carlo’s parents’ café. It must be at least forty years
old, but it seems to work just fine. It must have made a million cups of coffee over the years. It is a San
Marco 3 Group commercial Espresso Machine. It is a red 85 Leva, made in Italy, a thing of great beauty
and ancient technology it makes a really genuine Italian espresso.

There is also a coffee grinder that seems to work well.

The cash register and card reader are new and leased from Point of Sale Leasing. They do the
maintenance and software upgrades. Their insurance is included in the lease.

Crockery, cutlery, the kitchen’s pots, pans and utensils are from Carlo’s parent’s old café

The kitchen equipment: cookers, sink and dishwasher were already in the premises and are part of the
lease agreement. They belong to the building’s owner, but the café has to pay for them to be replaced if
that becomes necessary.

An old desk top Levono (Ideacentre 110S-15F) computer in the office is used for the accounts and
payroll. It is connected to an old (Cannon MG5470) printer that still prints well with relatively cheap
cartridges. The computer appears to function well, although some of the keys stick a bit.

Refrigerated display case bought new prior to the opening for $400.

The drinks fridge is supplied for free by the soft drink delivery company.

Key staff are: Manuela (Chef) and Nicky (Front of House Team Leader)

_____________________________________________________________

Q1

Develop asset management policy and procedures

The Asset Management Policy and Procedures that you develop should describe practices for managing
the café’s physical assets that reflect Carlo’s overall business objectives.

Use the internet to research procedures and processes that similar businesses have used to guide their
asset management. Use best practice asset management examples to write the policy and procedures.

Your Asset Management Policy and Procedures should include the following:

A summary of how the café’s physical assets should be managed. This should include a description of
the Asset register.

An asset management policy that gives general guidelines on how the café’s assets are to be managed.

Practices that support environmental sustainability in the use of the physical assets.

An asset replacement policy that gives general guidelines on how and when the café’s assets are to be
replaced.

Asset purchasing processes. These should include the use of an Asset Acquisition Request.

A description of internal or external inspections or audits and reporting practices that will ensure that
the assets continue to perform effectively.

A schedule of asset management reports

Download the Asset Management Policy and Procedures Template to guide your work.

Asset-Management-Policy-and-Procedures-Template.docx

Q2

Develop an Asset Register

As part of the asset management process, you are required to develop a register for the café’s assets.

Develop a chart / schedule that allows the relevant information on each asset to be recorded. (Create
the register as an Excel file)

This will include the asset’s maintenance and repair regimes that minimise disruption to the running of
the café’ and therefore loss of revenue (the register should include each asset’s schedule of inspections
or audits that will ensure that each asset continues to perform effectively).

When you have completed the Asset Register, fill it in the with information about the café’s assets that
you have already been given. Use your experience in hospitality to fill in as much of the register as you
can.

Upload your Completed Asset Register

Send an email to the cafe's accountant (your assessor)

The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.

It should introduce and summarise the contents of the Asset Register and your Asset Management
Policy and Procedures and ask for their feedback and authorisation to implement them.

Q4

In a week’s time you receive the following email from the Accountant

Hi Manager.

Thanks for the Asset Register and the Asset Management Policy and Procedures. We have looked at
these files and have the following feedback for you:

The Depreciation column is really only important for newly purchased assets, so please put
“Depreciated” in that column’s cells that are currently empty.

Assessor: also give your feedback on the files, using the assessor versions as a guide. It is important that
the student’s register includes, as a minimum, the columns in the Asset Register Assessor.

When you have made these changes to the files, we give our authorisation for you to implement them.

Begin by asking Manuela, who is in charge of the kitchen and Nicky who does front of house to give you
a report on the assets they use. Ask them by email so you have their responses electronically.

Regards,

Accountant

Now send an email to Manuela (Chef) and Nicky (Front of House Team Leader) (your assessor).

Now that you have received approval of your Asset Management Policy and Procedures and Asset
Register, you are required to contact the café’s front and back of house supervisors, asking them to send
you a report on the condition and performance of their area’s assets.

They should also give an estimate of what the asset’s replacement price would be.

The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style
Q5

It’s now a further 1 week later and receive your reports from Manuela and Nicky;

Carlo’s Café

Asset Report

Manuela

I think the asset register is a great idea.

I know we will get it better as we go on, but here is how the kitchen’s assets are functioning:

The crockery is in very good shape considering that it is all at least five years old. It looks as though it
originally came from a large restaurant. It is at least 20 years old. Each piece of crockery is checked by
the dishy as it is dried and put back in the shelf.

I had a quick count of the crockery:

85 large plates

42 Small plates

52 bowls

67 cups

52 saucers

45 mugs

This really is plenty for our size of café. I haven’t had to buy crockery for some years, and nowadays it is
pretty cheap if you buy it in bulk. I guess all our crockery would cost about $800 to replace.

The following is all stainless steel:

3 Large (about 25 litre) saucepans with lids

5 small (1 litre to 5 litre) saucepans with lids

5 20cm frypans. 2 lids

2 12cm frypans with lids

These are all battered (please excuse the pun) but functioning well. You really can’t kill this old stainless-
steel stuff. They are at least as old as the crockery. This would cost about $1,500 to replace. Each piece is
cleaned several times a day. I guess you could say they are checked then, too, although they are being
checked whenever they are being used, too.

6 spatulas of different sizes

14 knives of assorted sizes, although the cooks all bring their own.

9 Large serving spoons

14 wooden spoons and stirrers

I won’t try to price these implements individually, but the lot of them could be replaced of maybe $200.
They are about the same vintage as the pans. Like the pots, each piece is checked and cleaned whenever
it is used.

All six gas rings of the Ranger cooker work well. It is at least five years old. The stove top and oven itself
is very clean. I clean the stove thoroughly at the end of every shift and the oven every six months. I
check these every day when I am using them. They are a part of the team, and we take care of each
other. A set up like this one would cost about $6,000 to replace.

The sink is large and deep. It is worth about $800, with all the plumbing included.

The dishwasher is a Whirlpool 55L Commercial. I guess it is a few years old, but it works well. At least,
we haven’t had any trouble with it yet. It gets a good clean at the end of every shift. I found an
inspection sticker on it from six months ago. These are usually checked each year by Whirlpool, and we
pay for the maintenance visit. Well worth it. A new one would cost about $5,000.

If you have any more questions about the kitchen assets, just ask.

Manuela.
Carlo’s Café

Asset Report

Nicky

Okay. An Asset Register. Why not?

Here is today’s assessment of the front of house’s assets.

Espresso machine. It is older than my mother. Probably my grandmother, too. I know that Carlo loves it
like it is a member of his family, but no-one likes using it. After so many years the plumbing in these
things just get full of calc. There is only so much that regular maintenance can do. These narrow pipes
and junctions need more pressure to get the same amount of water through, and this is hard work on
the pump mechanism. If it was a modern machine, we could change some of the parts out, but they just
don’t make this stuff anymore. In my opinion, and the opinion of our barista, the whole machine needs
replacing. It is making coffee that is almost bitter and there is not much we can do about it.

The current machine is a San Marco 3 Group 85 Leva commercial Espresso Machine. It is very red. I
found the following number on it, which, I guess, is the serial number: AD30006765.

I decent espresso machine can cost up to $10,000, when you add in the water filter and the installation
costs.

The coffee grinder is great. It is old, but simple, and made of quality material. It has a cast metal body
and a glass bean chamber. We have never had a problem with it. It is a Peugeot, circa 1980. The only
identifiers on it are this serial number: PK30035F. These things cost about $200. We tend to take the
grinders apart for a thorough clean and check every three months, as coffee bean residue builds up over
time and can damage the motor.

The cash register is brand new. It is an integrated system that uses an iPad Air (10.5-inch retina display),
a money draw (Star Macronomics POS Safety D45) and a card reader (Commonwealth Bank CBACR34D).
The floor staff (and you) received training on it before we opened, and no-one has had any trouble with
it. the system was programmed, and the training was given, by Point of Sale Leasing. They will update
the software and service the system every six months. That is part of the leasing contract.

We have plenty of cutlery and it all looks the same. It is reasonably old (like, made in last century), but it
is of good quality. We wipe these thoroughly every morning, making sure each is clean before it goes to
a customer.

By my count this is how much we have: 88 knives, 85 forks, 35 soup spoons, 67 dessert spoons and 134
teaspoons. These would cost at least $400 to replace.

The new refrigerated cake and sandwich display fits in the front counter perfectly. It cost $3,789 when
we bought it a month back. It is a Bonvue SL842Cand its serial number is SG090FA-2XB. The parts and
motor have a 5-year warrantee. It is cleaned at the end of every shift, and the supplier told me that it
should have a through clean with all shelves and panels removed every three months.

We have a standing drinks fridge just to the side of the front counter that is owned by the soft drink
supplier. They supply it to us for free as long as we order at least 50% of our drinks from them, which we
do. The soft drink delivery person cleans and maintains the fridge. Easy. I can’t find a model number or a
serial number on it anywhere.

I hope that this is the sort of information you need. Otherwise, just ask.

Nicky.

When you have received Manuela and Nicky’s reports, you are required to update your Asset Register to
reflect the information you have been given.

Upload your Revised Asset Register.

When completed, submit your Revised Asset Register to your assessor