Managing physical resources Managing physical resources involves obtaining and using materials, equipment, supplies, premises and energy in the

most efficient way to achieve the organization’s operational objectives.

Organizations must ensure their physical resources provide a safe and secure working environment for

employees and meet all legal requirements.

Today there is great awareness of the impact on the environment by the inefficient use of physical resources

such as water, gas, oil and paper.

• The maintenance and refurbishment of facilities are activities of managing physical resources, which require careful planning, ensuring compliance with organizational procedures and staying within budget.

• There are broad responsibilities and duties for managing physical resources. The resource management function involves developing excellent negotiation skills for developing partnership with suppliers, and knowledge of the legal obligations that fall within the remit of resource management, including health, safety, security and consumer legislation.

Managing physical resources

• The key activities of planning, procurement and monitoring the effectiveness of resources are essential components of the operational framework.

Managing physical resources

Understanding the key features of physical resources

INTRODUCTION

• Resources are the things or properties, which helps a business to do its operation to earn revenues.

• Resources of a business are classified broadly into Human Resources, Financial Resources, Physical resources, natural resources and technological resources.

• The type and actual mix will depend on the type of its products or services, for example, the key resources for an oil well is Land, but without other resources, no oil can be produced. For a bank, financial resources are important, but a football team likes Manchester United, it is Human Resources.

• Physical resources are the tangible resources of a business.

Understanding the key features of physical resources

Types of physical resources

• Physical resources are the resources that the business needs to maintain in order to carry out its activities and it includes things like buildings, facilities, plant and machinery, materials, supplies etc.

BUILDINGS AND FACILITIES

• Building is the place used by a business for its operations. Building –factories, offices, hospitals, barns, houses, schools, warehouses and so on- are usually the place where work is done and goods are stored. They are expensive and take up a lot of space. Building plays an important role in the image of a business and can make potential customers want to work with the business even more.

Types of physical resources

The buildings and its appearance largely affects the success of a business. The building envelope comprises doors, windows, roofing and other fixed building fittings such as lifts, sanitary fittings and disabled access areas.

Features of a good buildings:

– Buildings should be designed as efficiently as possible to attract customers

– Buildings should be spacious enough to accommodate all its operations smoothly.

– The location of the buildings is important for its distribution network and it should be easily accessible by many customers.

Types of physical resources

FACILITIES

• Facilities are essential for the operation of any business. Facilities can be anything from the provision of buildings and equipment to services that are offered for staff to support them at work or places for customers to access. Like equipment, some facilities are required to be offered by Law for staff.

Types of physical resources

for example employers must provide:

• Toilet and washing facilities

• Access to drinking water

• A rest area or room for breaks

• Prayer halls

Types of physical resources

MATERIALS AND WASTE

• Raw materials are the input from which manufactured goods are produced. Oil, iron, coal, cement are the examples of raw materials.

• . An office will have to provide for computers, pens, paper, stationeries and telephone for their employees.

MATERIALS AND WASTE

• Some business will use materials that can be renewable or recyclable, such as paper. While others use non-renewable materials such as, oil. All business needs to be careful about how much they use and will try to avoid wasting materials to keep their cost low and help the environment.

PLANT AND MACHINERY

• Plant is a set of machinery erected for doing manufacturing operation. A plant is a factory where the machinery is erected or located.

• Plant and machinery is especially important for manufacturing business where the inputs are processed into outputs.

Equipment

• Equipments are the tools, which helps a business to operate smoothly.

• Equipment is essential for a business in order for employees to be able to carry out their daily duties. Equipment might take the form of machinery, or consumables that are part of their daily work, or could be as simple as the uniform that they need to wear.

ENERGY, POWER AND FUEL

• For most organization, electricity is the main source of available energy. Manufacturing business needs energy to run its plant and machinery. Service industry also needs energy for heating and lighting purpose.

• Ex: Sun , oil , coal, and nuclear materials.

Key features of physical resources1. suitability for purpose:• spacious enough • Future expansion• Freely accessible

2. Security: • Secure enough to protect the resources• Protect the employees from any hazard and harms.• Its not optional• Full time\part time security staff, cameras, alarms ….

Key features of physical resources3. Efficiency: • Minimum usage ( expenditure ) time & effort.

4. Accessibility: • Easily accessible by customers.

5. Ergonomics: is the science of designing the job, equipment, and work place to fit the worker.

Key features of physical resources5. ergonomics: • i.e.: fatigue, lighting , tools, equipment ……..• Ergonomics is important . why?To prevent any injuries > disability.

6. Planned maintenance & refurbishment: • Regular maintenance & updating for all (PH.R)• If maintenance is not take place it may lead to a break

down. i.e.: cleaning, painting, adjustments ….

Key features of physical resourcesNo maintenance

Stop production/services

• Refurbishment: business gives a new look to its office or stores see page 11,12

Break down Loss

Key features of physical resources7. Environmental factors: • The environment now become a major issue.• Business need to show that they are aware of green issues .

8. Emergency: • Business have to draw up policies & provisions in case of any

emergency event.• Training to employees should be given.• Clear instruction provided to the employees in case of fire or

other incident.

Key features of physical resources

9. Insurance: • Insure all the buildings.• Insurance against i.e.: flood, fire, earthquake, theft.

The key roles of a resources manager are :

1. Plan the use of physical resources.2. Obtain physical resources.3. Ensure availability of supplies.4. Monitor the use of physical resources.

2.4.1. Plan the use of physical resources: • Identify the resources your organization need.• Look at past resources usage.• The plans should be in line with organizational

objective policies and procedures and with legal requirements.

The main steps in planning are:

1. Give opportunities to relevant people to provide information about the physical resources required ( team members, colleagues, managers, and people outside the org.).

2. Develop plans which take account of relevant past experiences, trends and developments and factors likely to affect future use.

3. Make sure these plans are consistent with the organization’s objectives, policies and legal requirements.

4. Present these plans to relevant people in an appropriate and timely manner.

• The main steps in obtaining physical resources are:

1. Make request for physical resources that clearly show the costs benefit.

2. Present requests for physical resources to relevant people in time for the necessary resources to be obtained.

3. Present request for resources in ways which reflect the commitment of these who will be using the resources.

2.4.2. Obtain physical resources:

2.4.2. Obtain physical resources:

4. Obtain physical resources that is sufficient to support all activities under their control.

5. Agree appropriate amendments to their plans with relevant people when you cannot obtain the physical resources they need in full.

2.4.3. Ensure availability of resources: Ensuring availability of resources contains the following

steps :

1. Accurately identify the resources they need.2. Choose from a range of suppliers that is sufficiently

wide to ensure adequate competition and continuity of resources.

3. Negotiate with suppliers in manner which will maintain good relation with them.

4. Reach agreements with suppliers that comply with organizational and legal requirements.

2.4.3. Ensure availability of resources: 5. Monitor the quality and quantity of resources

at appropriate intervals.6. Obtain resources that consistently meet the

organization’s requirements for quality, quantity and delivery.

7. Deal with any actual or potential problems with supplies promptly ( on time)

8. Keep records of resources that are complete, accurate and available only to authorized people.

2.4.4. Monitor the use of physical resources:

the steps involved in this role of resources managers are:

1.give opportunities to team members to take individual responsibility for the efficient use of physical resources.

2. Make sure their team’s use of physical resources is efficient and take into account the possible impact on the environment.

3.Monitor the quality of physical resources continuously.

2.4.4. Monitor the use of physical resources:4. Use monitoring methods that are reliable and

comply with organizational requirements.

5. Monitor the actual \ planed use of the physical resources.

6. Take prompt corrective action.

7. Keep records relating to the use of physical resources that are complete, accurate and available only to authorized people.

PROCUREMENT PROCEDURE

• Three major considerations for the organization: cost, quality, and technology. Selecting the right suppliers impacts quality and cost of any item purchased.

• Global procurement and technology have made significant differences in an organization’s purchasing structure.

PROCUREMENT PROCEDURE

• Competition—global competitors.

• Technology—product life cycle is shortening; innovations in technology change every few month.

• Global networks—purchases throughout the world (via Internet, extranets, e-commerce) makes high quality and low cost possible.

PROCUREMENT PROCEDURE

• TYPES OF PURCHASES:• CAPITAL EQUIPMENT : is a nonrecurring asset

intended for use over a period of years. These include office furniture, computers, printers, copiers, and other office equipment.

• SERVICES: include equipment repair, maintenance not performed by staff, and grounds and facilities .

PROCUREMENT CYCLE• 1) IDENTIFICATION OF NEED—furniture, equipment,

services, and office supply requirements .A reorder point system is one way to recognize that departmental office supplies need to be ordered.

• 2) EVALUATION OF SUPPLIERS —monitors supplier sources for quality of product and price. A potential supplier list should be developed from several sources: marketing representatives, information databases, and trade journals.

PROCUREMENT CYCLE

• 3) SELECTION OF SUPPLIER—ranking from supplier list; competitive bidding (order-request) and negotiation are final determining factors.

• 4) PROCUREMENT: The requisition number is a control number from the buying organization that links purchasing approval to an authorized individual. Continuous performance measurement and management of suppliers.

PROCUREMENT CYCLE

• 5) INVENTORY AND STORAGE.

Insurance• All buildings owned or leased by business must have

insurance. • A monthly (yearly) premium is paid to an Insurance

company and then protection is given to the business in the event that something happens to or within the building such as:

• A flood, fire, earthquake or storm that damaged the buildings and materials

• Damage to any equipments• Theft from the building• Vandalism (damage – harm)• Leaking pipes• Collision (accident) by vehicles

Security• The provision of adequate security has never

been optional , i.e.:

• CCTV systems.

• ID cards .

• fulltime security staff .

• security cameras and alarms, which are linked to police stations.

HYGIENE(- الصحه علم(النظافه

• Is about the prevention of ill-health from work, through recognizing, evaluating and controlling the risks.

• Occupational Hygienists do not rely on the accuracy of the equipment or method used but in knowing with great certainty and precision the limits of the equipment or method being used and the error or variance given by using that particular equipment or method.

• i.e. See the book .

POLLUTION• POLLUTION is the introduction of contaminants

into an environment that causes instability, disorder, harm or discomfort to the ecosystem

االيكولوجي i.e. physical systems or living النظامorganisms .

• Pollution can take the form of chemical substances, or energy, such as noise, heat, or light energy.

• To protect the environment from the adverse effects of pollution, many nations worldwide have enacted legislation to regulate various types of pollution as well as to mitigate the adverse effects of pollution.

PEST CONTROL• PEST CONTROL: refers to the regulation or

management of a species.

• Because it usually perceived to be detrimental to a person's health, the ecology (البيئه) or the economy.

• The buildings and other facilities of an organization needs to take steps to control pest and insects such as cockroaches, Bugs from time to time to avoid any kind of health hazards to employees.

COMPLIANCES (AGREEMENT)

• The organization must ensure that the physical resources of the organizations’ are managed in accordance with all the relevant Laws such as Health and Safety, Building and Accessibility Regulations Pest control, Industrial Hygiene, Environmental Laws including Consumer Law.

RISK ASSESSMENT• What Is Risk assessment?

• Risk Assessment is a procedure to identify hazards and risks in your workplace. The assessment also identifies those risks that are significant, who is at risk and how to control or reduce the risk

• What is a Hazard?

• A hazard is anything that has the potential to cause harm, loss or damage.

RISK ASSESSMENT• What is a Risk?• A risk is the likelihood of a hazard being realized.• Why do we assess risk?• There are number of reasons why we conduct a

risk assessment:• Legal Requirements: Its is legal requirement that

all employers undertake a risk assessment• Reduction of Accidents and illness: Being able

to identify any hazards and risks in the workplace will help to reduce the number of accidents in your working environment.

RISK ASSESSMENT

• Improved Quality: Risk assessments can improve the quality of the workplace,

• Improved Staff Morale: By providing a safer working environment, staff morale may improve.

• Improved targeting of resources: Risk assessment can be used in the allocation of resources, both in the control of a hazard and in the prevention of the risks involved with a particular hazard.

• It is a good management practice to take all practicable steps to prevent accidents or loss in the workplace.