UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY

UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY
 Unit 11:Resource Management in
  Hospitality
 Unit code:D/601/1794
 QCF level:4 
 Credit value:15 
    
  • Aim
This unit will enable learners to gain understanding of the principles and application of resource management to a commercial operation, including the contribution of procurement strategies.
  • Unit abstract
Procurement is about the input of goods and services and the interface between the supplier and the client. This unit gives learners an understanding of procurement strategies as well as the techniques of financial accounting, and establishes their importance in the sector. The unit shows how procurement contributes to profit and how it helps to maintain a competitive edge.
Learners will carry out a review and evaluation of procurement strategies within a named organisation.
  • Learning outcomes
On successful completion of this unit a learner will:
  • Understand the principles and application of resource management to commercial operations
  • Understand the suitability of various forms of finance and taxation available to UK business in general and the hospitality sector in particular
  • Understand how procurement issues and strategies contribute to the achievement of commercial objectives through purchasing power
  • Be able to carry out a review and evaluation of procurement strategies and business performance within named organisations.

UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY
Unit content
  • Understand the principles and application of resource management to commercial operations
Methods: selection; acquisition; maintenance; replacement criteria
Principles: procurement strategy; specification; supplier identification; selection criteria; working with specialist suppliers; stock control
  • Understand the suitability of various forms of finance and taxation available to UK business in general and the hospitality sector in particular
Internal: managing the elements of working capital to free resources; internally generated funds; retained profits
External: short-, medium- and long term; caring; risk and reward
Cost of capital: equity and loan capital costs; weighted average cost computations
Systems: the main features of income and corporation tax; schedules; rates; personal and capital allowances; tax credits and debits

UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY
  • Understand how procurement issues and strategies contribute to the achievement of commercial objectives through purchasing power
Systems and processes: standard specification; tendering; estimating/quoting; methods of procurement eg centralised, contract, lease; Pareto analysis; ‘just in time’ (JIT); equipment; materials; services; terms and conditions
Procurement officer: role; assessing operational needs; selecting suppliers; quality and quantity control; timing; discounts; receipt and control of purchases; wastage factors; company policies; budgetary restrictions
Risks: financial; physical; task duplication; direct and indirect costs; effect on the internal and external customer; quality issues; legal implications; effect on process and outcome activities of organisations
Managing procurement: profit opportunities; direct and indirect cost-saving opportunities; minimising risk; maximising profit; approved supplier lists; evaluating the ‘best deal’; performance indicators and benchmarking
Contract: definition; different forms; parties; essentials for a valid contract; rules of offer and acceptance; terms eg express/implied, conditions/warranties; vitiating factors eg misrepresentation, fundamental mistake; breaches; fraud
Sourcing issues: method of supply eg buying products/services, tendering, sub-contracting/outsourcing; value for money; hygiene factors; range; choice; service guarantee; legal and contractual compliance; trace origin data; yield; methods of payment; credit and price; negotiating skills
Evaluation: communication; finance; delivery; compliance with specified requirements; packaging; industrial relations; attitude to customers; sample testing and defect elimination
Pricing management: techniques; negotiating price reductions; controlling or resisting price increases; quantity discounts; prompt payment discounts
Management strategies: competition between suppliers; developing profit margins to increase financial returns; releasing cash and capital by minimising stock; negotiating extended credit; determining the right quality for the right application; negotiating and developing delivery schedules
  • Be able to carry out a review and evaluation of procurement strategies and business performance within named organisations
Review: standard specifications; terms and conditions; monitoring; redeveloping strategy; contemporary developments; comparing and contrasting purchasing options
Evaluate: cost models eg return on investment (ROI), productivity gain, human resource benefits

UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY
Learning outcomes and assessment criteria
 Learning outcomesAssessment criteria for pass 
 On successful completion ofThe learner can: 
 this unit a learner will:   
      
 LO1 Understand the principles 1.1discuss the methods available for managing materials, 
 and application of resource  devising specifications of requirements and the 
 management to commercial  selection criteria to be applied 
 operations 1.2discuss the principles involved when procuring 
    
    equipment and the ongoing requirements over the life of 
    that equipment 
      
 LO2 Understand the suitability of 2.1analyse appropriate strategies for the efficient 
 various forms of finance and  management of working capital to meet a range of 
 taxation available to UK  financial needs 
 business in general and the 2.2evaluate the main sources of finance currently available 
 hospitality sector in  
   to UK businesses in relation to their suitability in meeting 
 particular   
   long-, medium- and short-term needs 
     
   2.3compute personal and business tax liability for sole 
    traders, partners and limited companies 
     
 LO3 Understand how 3.1establish a process to manage the procurement 
 procurement issues and  function, outlining management strategies in relation to 
 strategies contribute to the  pricing techniques for a given commercial situation 
 achievement of commercial 3.2assess the role of the procurement officer, explaining 
 objectives through  
   the importance of the essential components, terms and 
 purchasing power   
   conditions of a specimen contract 
     
   3.3evaluate the sourcing issues for a given procurement 
    situation, analysing the management techniques used to 
    appraise and evaluate suppliers 
     
 LO4 Be able to carry out a review4.1demonstrate how review and evaluation can be used to 
 and evaluation of assess procurement strategies, for a given commercial 
 procurement strategies and situation 
 business performance within   
 named organisations   
      

UNIT 11: RESOURCE MANAGEMENT IN HOSPITALITY
Guidance
Links
This unit can be linked to the following units:
  • Unit 18: Facilities Operations and Management
  • Unit 19: External Business Environment.

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