Risk and Facility

Risk and Facility

MNG01222 Facility and Risk Management for Hospitality Operations Session 2, 2015 Work Book The Hotel School Sydney MNG01222 Page 3 of 49 Welcome Welcome to MNG01222 Facility and Risk Management for Hospitality Operations. This is a unit of study that sets out to develop your knowledge about what goes into managing Assets efficiently and effectively from the perspective of the various stakeholders as well as the importance of risk management to the stakeholders. We are especially interested in looking at these aspects in organisations that are associated with tourism and hospitality industries. The nature of asset and risk management are broad and cover a wide range of perspectives that may interest owners, operators, guests, staff, suppliers and contractors and other stakeholders. There are often no immediate or easy solutions to particular task. It is our intention that your learning from this unit assists you to build experience at studying managerial issues associated with asset and risk management within a range of organisations. To achieve this aim we have designed a study program that takes you through many concepts related to managing assets and risks in organisations by working within a well defined framework. The framework forms part of your study too. We then apply this framework and the various concepts to tourism and / or hospitality organisations. A variety of material will be used throughout the unit to help frame your focus and evaluation of the stakeholders in a broad organisational context. You will need to engage with the lectures, tutorials, workbook and other readings (literature) each week. As there is no formal text-book for this unit, a limited selection of academic and industry readings may be found in the Book of Readings. Additional research by you is expected and strongly recommended. The intention is for you to become familiar with different aspects that relate to asset and risk management in tourism / hospitality organisations, allowing you to delve deeper into the issues in the wider context. This doesn’t mean that we won’t ask you for your experiences of managing assets and risks in tourism and / or hospitality organisations, but it does allow you to critically engage with the management practices of a particular Page 4 of 49 company. In effect we take a layered approach to build your familiarity and knowledge of these ideas. Session 3 FRM Teaching Team. MNG01222 Page 5 of 49 MNG01222 Teaching staff Unit Assessor: Kaikee Madan Phone +61 2 8249 3216 Email: Kaikee.madan@scu.edu.au Teaching staff Sydney Campus: Dr. Syed Ahmed Phone: 02 8249 3200 Email: syed.ahmed@scu.edu.au Distance Learning: Josephine Davey Phone: +61 2 8249 3211 Email: josephine.davey@scu.edu.au Page 6 of 49 Where to get help The Hotel School Sydney Post: 60 Phillip Street Sydney NSW 2000 Phone: +61 2 8249 3200 Fax: +61 2 9240 1338 Email: hotelschool@scu.edu.au Website: http://hotelschool.scu.edu.au SCU Schoolof Business & Tourism enquiries Post: School of Business & Tourism Southern Cross University PO Box 157 (Military Road) Lismore NSW 2480 Phone: +61 2 6620 3920 Email: tourline@scu.edu.au Website: http://www.scu.edu.au/tourism Administration enquiries Admissions & Administration Manager Phone: +61 2 8249 3232 FinanceManager Phone: +61 2 8249 3229 Administrative support Phone: +61 2 8249 3205 Academic enquiries Library Phone: 1800 659 460 (Freecall) Website: http://www.scu.edu.au/library Academic Learning Services Julie Luiker (for appointments) Phone: +61 2 8249 3214 Email: julie.luiker@scu.edu.au IT @ The Hotel School Sydney Contact Phillip Street Reception Desk Phone: +61 2 8249 3200 Email: hotelschool@scu.edu.au Technology Services Phone: +61 2 6620 3698 Email: servicedesk@scu.edu.au Phone: +61 2 8249 3203 MNG01222 Page 7 of 49 About this unit How much work? In MNG01222 we anticipate students will spend between 8 and 10 hours per week studying and researching this unit. This includes attending lectures, tutorials, engaging in tutorial activities, reading, researching, revision and assessment participation. Learning support Library The Library provides a range of online resources and services to support Southern Cross University students studying at partner institutions. Resources and services include: access to the full range of electronic information resources including databases, electronic journals, eReadings materials and e-books; access to online tutorials and subject guides; a document supply service for textbooks, journal articles and book chapters; and assistance through the Ask a Librarian email service. All online resources and services can be accessed from the Library website at: http://www.scu.edu.au/library Academic Learning Services Academic Learning Services provide educational support to students and staff, through a range of study assistance materials, workshops, and one-onone advice to assist you to successfully complete your studies. Regular writing, referencing and researching workshops are conducted during each study period, as well as a dedicated staff member to work with you on a more personal basis. You will find contact information for Academic Learning Services in the ‘Where to get help’section of this guide. MySCU Your unit assessor may have requested an online component to be set up on MySCU to support this unit for the duration of the study period. To check if this unit has an online component you should check the following location in your browser: http://learn.scu.edu.au Page 8 of 49 This opens the MySCU student intranet page. The names of units in which you are currently enrolled that have an online presence will be listed here under ‘My Learning Sites’. If your unit is not listed under ‘My Learning Sites’ and you have been instructed by your unit assessor to access the online site, please contact the Administration office for assistance. TheHotel SchoolStudent Centre The Hotel School Sydney also has its own site on MySCU, listed under ‘My Information and Workgroup Sites’, for students studying at the Sydney campus. The Hotel School Student Centre contains a range of information relevant to all students studying at The Hotel School Sydney, including textbook lists, timetables, policy documents, and forms and documents that will assist you in your studies. Blackboard Collaborate Your unit assessor will be running Blackboard Collaborate sessions in this unit. Blackboard Collaborate is web-based audio-conferencing software for real-time learning; a mix of a tele tutorial and virtual classroom with additional features. You can find out more by clicking the ‘Blackboard Collaborate Help’ button within your MySCU unit, or go to: http://www.scu.edu.au/collaborate MNG01222 Page 9 of 49 RESEARCH SOURCES: DENTON, G, RALEIGH, LE & SINGH, AJ (EDS.), 2 ND ED. 2009, HOTEL ASSET MANAGEMENT, PRINCIPLES AND PRACTICE, AMERICAN HOTEL & LODGING EDUCATIONAL INSTITUTE, MICHIGAN, USA HOPKIN, P 2014, FUNDAMENTALS OF RISK MANAGEMENT: UNDERSTANDING, EVALUATING AND IMPLEMENTING EFFECTIVE RISK MANAGEMENT (3RD ED.), KOGAN PAGE, LONDON. LAM, J 2014, ENTERPRISE RISK MANAGEMENT, WILEY, HOBOKEN, NJ LIVITT, JD 2013, FACILITIES MANAGEMENT, MANAGING MAINTENANCE FOR BUILDINGS AND FACILITIES, MOMENTUM PRESS, NY PAYANT, RP & LEWIS, BT 2007, FACILITY MANAGER’S MAINTENANCE HANDBOOK, MCGRAW-HILL, LONDON PRITCHARD, CL 2015, RISK MANAGEMENT: CONCEPTS AND GUIDANCE (5TH ED.), TAYLOR AND FRANCIS, BOCO RATON, FL. JOURNALS: FACILITIES FACILITIES MANAGER JOURNAL OF FACILITIES MANAGEMENT JOURNAL OF QUALITY IN MAINTENANCE ENGINEERING JOURNAL OF RISK RESEARCH INTERNATIONAL JOURNAL OF HOSPITALITY MANAGEMENT INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT INTERNATIONAL JOURNAL OF QUALITY & RELIABILITY MANAGEMENT Page 10 of 49 INTERNATIONAL JOURNAL OF WORKPLACE HEALTH MANAGEMENT RISK ANALYSIS RISK MANAGEMENT RELIABILITY, ENGINEERING & SAFETY SERVICES INDUSTRIES JOURNAL WEBSITES: WWW.FMLINK.COM WWW. HVS.COM WWW.TODAYSFACILITYMANAGER.COM MNG01222 Page 11 of 49 ABOUT THE ASSIGNMENTS Please note: All assignments must be  Arial or Times New Roman font size 11 (or 12)  minimum 1.5 line spacing  Assignments may be printed on both sides (double-sided) of the page (for on-site students)  Passed through Turnitin ASSIGNMENT 1: DEVELOP A CASE-HISTORY AND A VENUE CONDITION ASSESSMENT FORM THE PURPOSE OF THE CASE-HISTORY IS TO GIVE THE READER A CLEAR PICTURE OF THE SITE BEING ASSESSED. IT INFORMS THE MAJOR STAKEHOLDERS (OWNERS & OPERATORS – READERS OF THIS REPORT) OF WHAT THEY CAN EXPECT OF THE VENUE IN THE REPORT THAT FOLLOWS. THE CASE-HISTORY LINKS THE PHYSICAL ELEMENTS OF THE VENUE TO ITS LARGER HISTORICAL, SOCIETAL AND ENVIRONMENTAL CONTEXT. A SAMPLE CASE-HISTORY IS PROVIDED BELOW (PLEASE NOTE: WHILE A FLOOR-PLAN WOULD HELP YOU DEFINE THE AREA UNDER INVESTIGATION, THE EXAMPLE BELOW DOES NOT PROVIDE ONE. IN APPROXIMATELY 250 WORDS DESCRIBE: – BRIEF BACKGROUND OF THE VENUE: WHAT IT WAS (IT’S HISTORY) AND WHAT IT CURRENTLY IS – PREVIOUS OWNERS AND CURRENT OWNERS – ANY REFURBISHMENTS, RESTORATIONS &/OR REBUILDING THAT MAY HAVE OCCURRED SINCE IT WAS BUILT. HARD OF SOFT REFURBISHMENTS? – POSSIBLE COSTS INCURRED IN THESE RENOVATION PROCESSES Page 12 of 49 – THE TOTAL FLOOR-AREA OF THE FACILITY VENUE YOU/VENUE YOU ARE ANALYSING. YOU WILL FIND THAT A FLOOR-PLAN HELPS WITH IDENTIFYING THE PERIMETERS OF THIS VENUE. – CURRENT LEVEL OF MAINTENANCE AND MAINTENANCE STRATEGY OF THE VENUE AND THE OPERATING CONDITION OF THE EQUIPMENT &/OR SYSTEMS (BE BRIEF AS THIS WILL BE ELABORATED ON IN THE REPORT – ASSIGNMENT 2) – THE SUITABILITY OF THIS VENUE TO THE TARGET MARKET IN ITS CURRENT STATE (REASON FOR THIS REFURBISHMENT) VENUE CONDITION ASSESSMENT FORM YOU ARE REQUIRED TO DESIGN YOUR OWN VENUE CONDITION ASSESSMENT FORM THAT IS MOST APPROPRIATE TO YOUR VENUE, BASED ON YOUR RESEARCH OF OTHER CONDITION ASSESSMENT FORMATS THAT MAY SUIT THE REQUIREMENTS OF YOUR VENUE. WHILE SOME SUCH ASSESSMENT FORMS THAT YOU MAY FIND COULD BE SIMPLE CHECK-LISTS, IT IS EXPECTED THAT YOU PROVIDE A MORE DETAILED AND COHESIVE ASSESSMENT FORM WITH DATA SUITABLE FOR THE SENIOR MANAGEMENT (MAJOR STAKEHOLDERS – OWNERS/OPERATORS) OF YOUR VENUE TO COME TO AN INFORMED DECISION ABOUT THE REALISTIC ACTIONS THAT THEY NEED TO TAKE TO MAINTAIN THE STANDARDS OF THEIR ESTABLISHMENT. HINT: THE FACILITIES CONDITION INDEX (FCI) WILL BE AN ESSENTIAL COMPONENT OF THIS SPREAD-SHEET DESCRIPTORS OF THE RATING SCALE MUST BE COMPREHENSIVE & UNAMBIGUOUS SAMPLE CASE-HISTORY: PLEASE DO NOT COPY – THIS IS A GUIDE FOR YOU The Horizons Hotel, a 5-star full-service hotel is located on the beach in Cronulla, an affluent beach-side suburb approximately 25km south of the Sydney CBD. This busy 300 room hotel, catering to corporate and leisure guests, stands on the site of the once popular ‘Horizons’ Pub, from where the Hotel gets its name, built immediately after the War years. Waning in popularity due to the shifting demographics of the suburb, and not being heritage listed, the Pub was demolished in 1990. The Horizons Hotel, part of a domestic public listed hotel chain, opened its doors for business in 1994 at a cost of $20 million. Till date, the hotel has undergone 1 hard and 3 soft refurbishments at a total cost MNG01222 Page 13 of 49 of $9 million, the most recent soft refurbishment was two years ago costing $2.5 million when the upholstery in the rooms and LED lights were changed (J Smith 2015, pers. comm. June 15th). Due to its proximate location by the Ocean, the Hotel would be due for another major refurbishment in 3 years. This condition report scrutinises Suite 2001, the luxurious Presidential Suite located on the 20th (top) floor of the building. The suite comprises of a combined living and dining area, an attached kitchenette and 3 double-bed rooms with en-suites. The bright and airy plush living-room has large French-windows opening on to a balcony overlooking the beach. The report specifically assesses the living-dining room and kitchenette, a total area of 150 m 2 (Appendix A). While the room falls under the general responsibility of the Front-Office, the suite is accessed by house-keepers who service the suite daily, food and beverage attendants for regular in-room-dining deliveries and hotel engineering and maintenance staff who check the suite for routine maintenance on a weekly basis. This suite has an average annual occupancy of 94% at $475 a night. PLEASE NOTE: CLOSE EXAMINATION OF THE CASE-HISTORY ABOVE WILL SHOW THAT EVERY SENTENCE IS CONCISE BUT HAS ENOUGH INFORMATION TO LET THE READER KNOW WHAT CAN BE REASONABLY EXPECTED OF THE VENUE IN THE MAIN REPORT (ASSIGNMENT 2). ASSIGNMENT 1 IS DUE IN WEEK 4, ON THE DAY AND TIME SPECIFIED ASSIGNMENT 1 WILL BE RETURNED IN WEEK 5. THE COMMENTS WILL HELP YOU MAKE THE NECESSARY ADAPTIONS IN ASSIGNMENT 2. PLEASE ENSURE THAT YOU COLLECT THE ASSIGNMENT AS IT IS THE BASIS FOR ASSIGNMENT 2. Page 14 of 49 ASSIGNMENT 2: Report – Venue Design Analysis In not more than 1500 words: 1. CONDUCT A VISUAL OBSERVATION OF THE VENUE YOU HAVE CHOSEN TO ANALYSE 2. MAKE A BUSINESS CASE AND HIGHLIGHT THE IMPORTANCE OF THE VENUE IN ITS PRESENT STATE TO THE VARIOUS STAKEHOLDERS AND HOW IT MAY AFFECT THEM. 3. DETERMINE THE VENUE DESIGN OBJECTIVES FOR YOUR VENUE (WHETHER THE CURRENT DESIGN OF THE VENUE YOU ARE ANALYSING IS SUITABLE FOR YOUR MAJOR STAKEHOLDERS). YOU NEED TO CONSIDER THE PERSPECTIVES OF EACH OF THE MAJOR STAKEHOLDER GROUPS SUCH AS THE OWNERS, OPERATORS, STAFF AND GUESTS. 4. THE LITERATURE REVIEW FORMS AN IMPORTANT SECTION OF YOUR REPORT. THIS SECTION SHOULD CONTAIN ASPECTS SUCH AS: – THE NEED FOR A VENUE CONDITION ASSESSMENT (VCA) – THE NEED FOR REGULAR INSPECTIONS (REFER TO THE FLOW-CHART BY CHAN, LEE & BURNETT 2001) – THE FINANCIAL IMPLICATIONS SHOULD INCLUDE (BUT NOT LIMITED TO):  LIFE EXPECTANCY OF THE EQUIPMENT BEING ASSESSED  PAY-BACK PERIOD  RETURN ON INVESTMENT (ROI)  THE CONCEPT BEHIND NET PRESENT VALUE (NPV)  THE FACILITIES CONDITION INDEX o PLEASE NOTE: THE ABOVE FINANCIAL JUSTIFICATION SHOULD BE MUCH MORE THAN JUST PROVIDING A DEFINITION. YOU NEED TO SAY WHAT THEY ARE, WHY THEY ARE NECESSARY & HOW THEY APPLY TO YOUR VENUE – BENCHMARKING THE VENUE AGAINST KNOWN KPI’S AND THE IMPORTANCE OF SUCH BENCHMARKING TO YOUR ORGANISATION MNG01222 Page 15 of 49 – REPORT & DISCUSS THE FINDINGS OF YOUR VISUAL OBSERVATION OF THE VENUE. STATE THE IMPORTANCE OF THESE FINDINGS TO YOUR STAKEHOLDERS & HOW THEY MAY AFFECT THE BUSINESS (E.G. DIFFERENT TYPES OF OBSOLESCENCE). – JUSTIFY YOUR VCA WITH SPECIAL EMPHASIS ON HOW IT APPLIES TO THIS PARTICULAR VENUE. JUSTIFICATION MUST BE BACKED UP WITH REFERENCED RESEARCH – APPLY THE THEORETICAL CONCEPTS TO ACCEPTABLE PRACTICAL USE. – PROVIDING ONLY DEFINITIONS DOES NOT SHOW THAT YOU HAVE UNDERSTOOD OR CAN APPLY THE CONCEPT – USING THE OBJECTIVES YOU HAVE DEVELOPED FOR YOUR VENUE (POINT 3 ABOVE), WITH THE INFORMATION YOU HAVE GATHERED IN COMPLETING ASSESSMENT 1, COMPLETE AN ANALYSIS OF THE FACILITIES AND PHYSICAL ASSETS IN YOUR VENUE (COMPLETE THE CVA YOU HAVE DEVELOPED USING A SUITABLE SCALE – THE SCALE YOU ARE USING MUST BE COMPREHENSIVE) – NO RECOMMENDATIONS ARE REQUIRED SEE MARKING CRITERIA/GUIDE PROVIDED IN THIS WORKBOOK. SEE ALSO ‘HINTS FOR ASSIGNMENT 2’ IN THIS WORKBOOK ASSIGNMENT 2 IS DUE IN WEEK 7, ON THE DAY AND TIME SPECIFIED ASSIGNMENT 3: REPORT – RISK ASSESSMENT REPORT THIS ASSIGNMENT REQUIRES YOU TO CONSIDER THE RISKS TO PHYSICAL, NON-PHYSICAL, FINANCIAL AND HUMAN ASSETS. HINT: YOU MAY FIND IT EASIER TO DISCUSS EACH TYPE OF RISK UNDER A SEPARATE SECTION IN NOT MORE THAN 2,500 WORDS, YOU ARE REQUIRED TO: SHOW THE VARIOUS RISKS YOU HAVE FOUND UNDER EACH CATEGORY. DISCUSS IN DETAIL ONE HIGH PRIORITY RISK FOUND IN EACH CATEGORY (THE RISK FACTOR VALUE, RFV, WILL HELP YOU JUSTIFY THIS). SHOW HOW AND WHY IT IS A RISK AND HOW IT AFFECTS THE VARIOUS STAKEHOLDERS. TABLES MAY ASSIST YOU WITH COMING WITHIN THE PERMISSIBLE WORD-COUNT. Page 16 of 49 1. DEVELOP AND JUSTIFY A RISK ASSESSMENT STRUCTURE: THE RISK ASSESSMENT PROCESS AND FRAMEWORK SHOULD BE DESIGNED BASED ON EXAMPLES FOUND IN YOUR RESEARCH – THE LECTURE NOTES CONTAIN AN EXAMPLE OF A FLOW-CHART OF RISK IDENTIFICATION AND TREATMENT (O’DONNELL 1993). 2. YOUR REPORT IS TO BE BASED ON THE RISK MANAGEMENT FRAMEWORK OF ASNZS / ISO 3100 – THE RISK IDENTIFICATION PROCESS, RISK ANALYSIS, RISK CONTROL AND RISK RESPONSE. 3. DISCUSS THE VARIOUS RISK MANAGEMENT APPROACHES AND STATE THE RATIONALE BEHIND THE BEST APPROACH FOR YOUR VENUE. 4. DISCUSS THE PRIMARY & SECONDARY RISKS IN EACH CATEGORY (SEE A SAMPLE TABLE PROVIDED ON P.39 OF THIS WORKBOOK). 5. YOU MAY FIND THAT DEVELOPING A RISK MATRIX AS A TOOL WILL ASSIST WITH YOUR JUSTIFICATIONS. ALL RATING SYSTEMS MUST BE LOGICAL AND UNAMBIGUOUS. 6. DEVELOP A LOGICAL (AND COMPLETED) RISK ASSESSMENT FORM FOR YOUR VENUE (SEE SAMPLE ON PP. 44-45 OF THIS WORKBOOK) 7. PROVIDE CONSTRUCTIVE RECOMMENDATIONS, BASED ON THEORY THAT CAN EASILY BE ACTED UPON BY THE VENUE MANAGEMENT TEAM, WITH REGARD TO THE FOUR HIGH PRIORITY RISKS IDENTIFIED. YOUR RECOMMENDATIONS MUST BE LOGICAL, FEASIBLE, PRACTICAL AND ACCEPTABLE TO ALL THE MAJOR STAKEHOLDERS SEE MARKING CRITERIA/GUIDE PROVIDED IN THIS WORKBOOK. SEE ALSO ‘HINTS FOR ASSIGNMENT 3’ IN THIS WORKBOOK ASSIGNMENT 3 IS DUE IN WEEK 13, ON THE DAY AND TIME SPECIFIED MNG01222 Page 17 of 49 MNG01222 FACILITY AND RISK MANAGEMENT FOR HOSPITALITY OPERATIONS Tutorial / Workshop Activities Session 3, 2015 Page 18 of 49 WEEK 1 INTRODUCTION MNG01222 ASSET AND FACILITY MANAGEMENT – AN INTRODUCTION – WHAT DOES IT INVOLVE? – WHO ARE THE VARIOUS STAKEHOLDERS? – WHAT IS OF IMPORTANCE TO THESE STAKEHOLDERS? – WHAT ARE THE VARIOUS PERSPECTIVES OF THESE STAKEHOLDERS? – WHAT INFORMATION DO THEY NEED TO MAKE DECISIONS THAT AFFECT THE BUSINESS? ASSESSMENT TASKS CONNECTED WITH THIS SUBJECT:  CHECK OUT THE MNG01222 -2015-2 UNIT LINK ON MYSCU. THINK ABOUT AND MAKE NOTES ON THE FIRST THREE READINGS SO THAT THEY MAY BE DISCUSSED IN MORE DETAIL NEXT WEEK.  START WORKING ON THE ATTACHED MATRIX – INFLUENCE AND INTERESTS OF THE VARIOUS STAKEHOLDERS  FIND THE DETAILS OF THE LARGEST HOTEL IN THE WORLD. DISCUSS THE DIFFERENCE BETWEEN MANAGING THESE ASSETS: THE SYDNEY VISITOR INFORMATION CENTRE, THE ARMANI HOTEL (IN THE BURJ KHALIFA – THE TALLEST BUILDING IN THE WORLD), AND THE OASIS OF THE SEAS? MNG01222 Page 19 of 49  BRING IN SAMPLES OF VENUE CONDITION ASSESSMENTS (VCA) THAT YOU MAY FIND IN YOUR RESEARCH FOR THE TUTORIAL IN WEEK 2.

 

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