Critical Analysis of Asset Maintenance Management at Woolworths Store

This report provides a comprehensive analysis of asset maintenance management within Woolworths Store Company, focusing on the optimization of existing assets, including transport, buildings, waste management, employees, and facilities. The report details the company's operations, challenges, and the need for asset performance improvement to extend operational lifecycles. It presents a review of existing assets, their descriptions, and the services they provide to the community, along with their financial status. The report further explores optimization strategies, maintenance and asset management plans, community engagement, environmental management, and risk management plans. It culminates in an asset management improvement plan, including identification and improvement strategies, and a business case for addressing potential loss of opportunity. The report provides insights into work order history analysis and cost-planned maintenance areas, offering recommendations to improve Woolworths' asset management practices. This report aims to enhance asset performance and drive business growth.

ASSET MAINTENANCE MANAGEMENT
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Executive summary.
The purpose of this report was to critically analyze the concept of Woolworth Store Company
the deal with provision of groceries products and other product on one of the options. This
option involved analysis of existing assets, plant or production line. This would assist the
company to access various mechanisms and strategies to drive asset performance improvement.
The optimization process of asset performance also tend to be very significant as far as this
report was concerned. This would help the company to extend the operation life cycle of the
assets under consideration. Finally, the report provided strategies and action plans towards
improvement of assets as well as assets maintenance.

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Table of Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................2
Review of existing assets...........................................................................................................3
Optimization of assets performance...........................................................................................4
Review of current operation.......................................................................................................7
Maintenance and asset management strategies..........................................................................8
Community engagement plan............................................................................................9
Community plan...............................................................................................................10
Environmental management plan.....................................................................................10
Risk management plan.....................................................................................................11
Long term financial plan..................................................................................................11
Asset management improvement plan.............................................................................12
Identification and improvement plan.......................................................................................15
Business case for major loss of opportunity area.....................................................................19
Investigation on performance...................................................................................................19
Work order history analysis.....................................................................................................20
Cost planned maintenance area................................................................................................20
Conclusion...............................................................................................................................22
Bibliography.............................................................................................................................22
Books...............................................................................................................................22
Journal article...................................................................................................................24

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1.0. Introduction.
Based on the work on Woolworths, Ltd, this particular report aim at reflecting on one of the
options provided so as to offer more detailed idea on how asset maintenance management should
be handled in this company. Therefore, for the purpose of this report aims at critically analyzing
option A. That is, analysis of existing assets, plant or production line. This will assist the
company to access various mechanisms and strategies to drive asset performance improvement1.
The optimization process of asset performance also tend to be very significant as far as this
report is concerned. This will help the company to extend the operation life cycle of the assets
under consideration.
For the purpose of these report, it is important to have a clear and distinct understating of some
terminologies so as to ensure proper reflections of this important report. To start with, assets
have a wide range of definitions depending on the context of the requirement. For this report,
assets typically refers to items, property, human resources, physical resources that are used by
any operation organization, companies, partnership organization and all income generation
cohorts so as to enable proper execution of activities and objectives2. In that connection, it is
therefore very clear to understand that assets are key components in daily operations of these
types of organizations. Assets reflect a positive return due to their ability to bring income and
progress in the operations. Therefore, for any serious organization whose objectives are to see
business growth, generation of income along with provision of goods and services, it is important
to keep the liabilities low and maximize as well as optimize the size of the assets.
The other aspect to consider is asset management. Typically, this refers to all processes,
strategies and mechanisms applied so as to ensure the activities set to be completed by these
assets are well implemented without any reservation whatsoever and using minimum resources
1 Lloyd, Chris. Asset Management: Whole Life Management. Thomas Telford Publishing, 2009.
2 Ang, Andrew. A Systematic Approach to Factor Investing (Financial Management Association
Survey and Synthesis). Oxford University Press, 2014.

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and costs as possible3. This enhance success in operations and tenacity in overall management of
these assets. This will also trigger asset portfolio management. This refers to the ability of a
portfolio company to apply two or more assets in the operations so as to generate substantial
income that will generate income so as to support the entire business operations.
In addition, it is very significant to note that the performance of assets is not always smooth
during the entire operation life cycle. These assets are prone to wear and tear, complete
breakdown, incapacitation as well as technical failure. This become very challenging to optimize
the operation of these assets holding all other factors constant. There is need to lay down
important mechanisms and strategies so as to maintain these assets in order to eliminate current
losses as well as risks of uncertainty in the future.
Finally this report aim at analyzing a company called Woolworth Store, Ltd. This is a company
that deals with running of retail stores with an aim of selling food products to different potential
consumers all over the Australia. The assets of this company are very many4. This include the
human resources who represent all the workers in the company such as sales agent in the retail
stores, in the groceries and many other workers. These assets also include the retail stores,
equipment, facilities, food products and supermarkets. They also include property and products
in the groceries. This report will review all the aspect underlying this company in terms of how
to improve the existing assets by laying down strategies. We hope that the director of
engineering and general managers will be in a position to ascertain the recommendations that
will be provided by this report to promote assets maintenance and management.
3 Scarrett, Douglas. Property Asset Management. Routledge, 2010.
4 Concannon, Owen. CFA Institute Industry Guides: The Asset Management Industry. CFA
Institute, 2015.

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2.0. Review of existing assets.
The company that is applied in this report is called Woolworth Store, Ltd. The main operation is
sale of food products in the retail stores, groceries and in the supermarkets. Actually it is food
enterprise fare that applies skills and knowledge in food technology5. The workers and other
staffs use technical skills to sell food products as well as to maintain the assets of the company.
Therefore, these experts forms part of existing assets in the company. This forms a portfolio
assets for this company because they are applied together so as to meet the overall objectives of
the company. Any failure in one of these assets will lender the entire operation difficult to
undertake which will be recorded in the financial statement as a loss. This will also strain the
budget for that particular period. For this company to operate effectively and efficiently, it is
very crucial to keep monitoring these assets so as to make sure they are in good condition. This
also help to ensure that any technical issues are detected in good time to repair, replacement or to
improve assets performance. The company aim at reduces all loopholes that can bring losses to
the company6. This particular task force aim at analyzing these assets so as to figure out
strategies to optimize assets performance in order to prolong their operation life cycle as well as
to maintain the working condition for the remaining lifecycle.
3.0. Optimization of assets performance.
The process of optimization of products, property, retail stores and equipment in Woolworth
Company is very important since it forms the baseline of this report. These assets need to be
optimized in order to enhance the performance in the remaining life cycle. This can be achieved
via the following reviews.
The table below indicate the underlying existing assets of Woolworth Store Company. They are
applied in providing goods and services in the retail stores, groceries and supermarkets on the
sale of food products that are consumed all over Australia.
5 Mori, Annette. Asset Management. Affinity E-Book Press, 2015.
6 Carlson, Ben. Organizational Alpha: How to Add Value in Institutional Asset Management.
CreateSpace Independent Publishing Platform, 2017.

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Figure 3.1
Assets class. Their description. Services these assets provide
to the community.
Transport Assets These assets include the
motor vehicles that are used
supply food products to the
customers once they have
been ordered. This company
deliver grocery products to
the customers. This is
because the financial
strategy is cash on delivery.
This involves transportation
of goods and services from
retail shops, groceries and
supermarkets to customer’
place of preference at low
charges. This also include
movement of customers
around the groceries, retail
shops and supermarket area
for business, recreation,
shopping and for leisure.
Buildings and Parking This offers space for
customers and consumers
who come to shop in the
premises of Woolworth
Store Company. They are
able to park their motor
vehicles for security
purposes.
This supports the delivery of
a many services to the
community. This as well
facilitates a large range of
culture as well as
community activities.
Waste Management These include infrastructure
to support waste recovery,
waste acceptance and waste
transfer activities. Assets to
support the ongoing
This make sure that the
community is able to
dispose of waste materials in
an appropriate manner once
the consume food products

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management of the
Woolworth company.
from Woolworth premises.
The company aim at
becoming environmental
friendly.
Employees of Woolworth
Company.
This is a variable asset to the
company. It include
accountants for financial
statements, sales
representatives, security
agencies and many other
workers.
They assist the customers to
get all the goods and
services under one roof.
They also ensure reliable
and potential customers are
delivered with food products
to their homes when they
order.
Facilities and premises. They include retail outlets,
groceries and supermarkets.
This is where potential
customers come to shop
food products as well as for
recreation facilities. The
supermarkets are well
furnished with modern
hotels for recreation.
From the data below, the following figures indicate how Woolworth Store Company Assets are
distributed.
Financial status of assets of Woolworth Store.
Figure 3.2

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Asset Class Replacement
Cost ($000)
Residual
Value
($000)
Depreciable
Amount
($000)
Depreciated
Replacement
Cost ($000)
Depreciation
Expense
($000)
Transport
Assets
450,000 200,000 190,000 43,000
Buildings
and Parking
600,000 300,00 230,000 21,000
Waste
Management
30,000 10,000 3,000 765
Employees
of
Woolworth
Company.
200,000 65,000 67,000 34,221

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Facilities
and
premises.
550,000 320,000 453,000 232,477
If this data can be analyzed statistically, then the following pie chart will be indicate the
replacement cost of each asset.
Figure 3.3
4.0. Review of current operation.
The Woolworth Company was set to deal with grocery and other products in the food industry
based on the consumers’ needs. In the current operation of the company activities, there has been
some challenges in terms of fluent operations due to some technicality in the assets of the

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company7. In the last decade, the company has been making huge sales in the groceries, in the
retail stores and there has been equitable supply to the demand for these products. This has been
facilitated by the good conditions of the assets used in the operation. However, in the current
condition, the company is facing challenges in carrying out these activities to due to some
changes in the assets required to perform these activities. In that connection, the company is not
making the profits as it used to do in the last decade life span. There is need to improve these
assets so as to increase the cash inflows in the company. In the current operation, the company
has not been able to achieve competitive advantage in the market. The power of competitive
advantage is very important as far as market dominance is concerned. The marker for this
industry is flood with competitors who tend to provide homogeneous commodities to those
offered by Woolworth Store Company8. This implies that currently the company have not
convinced the customers and the consumers so as to outdo the competitors. There is a higher
likelihood that these competitors are having a better management strategy in asset management
that Woolworth Store company. There is a need to lay out more sustainable strategies so as to
improve asset management that will help the company to regain the competitive advantage. All
the assets need to be integrated and incorporated so as to prolong their life cycle which in return
will eliminate the losses, gather more customers as well as to reduce the risks of uncertainty.
5.0. Maintenance and asset management strategies.
This is another aspect of this report that can be used to optimize assets performance. There are
many strategies that the company can apply to maintain and manage assets. Woolworth Store
Company requires to review on mechanisms to improve the assets of this organization as well as
activities associated to asset management9. This will help the company and all the retail stores
7 Ferri, Richard. All about Asset Allocation. Second Edition .McGraw. Hill Education, 2010.
8 Bernstein, William. The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize
Returns and Minimize Risk. McGraw-Hill Education, 2017.
9 Walter, Ingo. The Industrial Organization of the Global Asset Management Business. CFA
Institute Research Foundation, 2015.

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outlets in prevention of uncertain risks as well as reducing the probability of recurrence. Any
incident of failure in asset management, assets themselves as well as asset systems need to be
identified so as to lay down concrete strategies, mechanisms and methodologies counter such
incidents.
Typically, a strategy on asset management refers to extended level as well as very crucial
document whose main aim is to guide the entire activities associated to asset management in
Woolworth organization10. This helps in exploration of long term issues so as to connect core
plan to core strategy. This will indicate how asset portfolio will be able to achieve delivery of
services that are highly regarded important by the customers and consumers in a potential
market. In this case, the strategy will relate to food products obtained by consumers in the retail
stores and groceries stores.
Assets management strategies in this company will be based on the following aspects.
a. Community engagement plan.
b. Community plan.
c. Social plan.
d. Environmental management plan.
e. Risk management plan.
f. Long term financial plan.
g. Asset management improvement plan.
h. Asset management plan.
i. Asset management policy.
10 Musgrove Richard. Hotel Asset Management Principles and Practices. Educational Institute of
the American Hotel Motel Assoc, 2016.