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(PDF) Strategic Infrastructure Asset Management

   

Added on  2020-10-22

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Strategic Infrastructure AssetManagement

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Context Issues.........................................................................................................................1Resource Requirements..........................................................................................................2Review Methodology.............................................................................................................2Review Schedule....................................................................................................................3Key issues/concerns to be considered....................................................................................3Anticipated findings .............................................................................................................4CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................6

INTRODUCTIONInfrastructure asset management relates to the effective process of development,operation, maintenance, up-gradation and disposition of assets in consideration of costs, risksand performance of such assets. In layman terms, it relates to the asset management of physicalassets rather than financial assets. This project report addresses the risk assessment and review ofassets, desktop asset risk review and devising a plan thereof for Coca-Cola after its acquisition ofSunshine Sugars as a strategic move to secure its supply chain1.MAIN BODYContext IssuesCoca Cola is a global corporation that continually acquires companies for enhancing itsbusiness processes all around the world. New South Wales produces 5% of the total sugarproduced in Australia. Sunshine Sugar is one of the major manufacturers of raw and refinedsugar products. Coca Cola acquired Sunshine Sugar on June 1, 2017 to secure its supply chain.Sunshine contributes A$200 million to its local economy with secured partnerships inorganisations such as Bon-Sucro, SQF, Halal and Kosher. Some of the issues of Sunshine thatCoca Cola can face in context to infrastructure assets are as follows:Asset and Operational Risk: Sunshine Sugar has three mills and a refinery in Condong, Broadwater and Hardwood. Seasonalproduction would not only increase idle time but Coca Cola would also incur high acquisitionand production cost annually. Thus, there is a higher failure risk attached to such assets withlonger repair time as such assets are difficult to be replaced.Maintenance and Capital Budget: Sugar cane production is seasonal based on fluctuations and recoveries in sucrose levels,therefore, a higher maintenance cost is expended during the idle period of machineries2. A higher1 Bird Ron, Harry Liem, and Susan Thorp, Infrastructure: Real assets and real returnsEuropean Financial Management (2014) 802-824 20.4 2 Molenaar P, 'Case Study - Asset Management fulfilment in the sugar industry using theindirect supply chain model', Dspace, South Africa, 77-79 accessed on 11 February 2018,<https://dspace.nwu.ac.za/bitstream/handle/10394/9718/Molenaar_P_Chapter_8.pdf?sequence=9>1

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