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RESOURCES AND FACILITIESRESOURCES AND FACILITIES
MANAGEMENTMANAGEMENT
YAKUBU, EMMANUEL O.
QUESTIONS ON NIGERIANQUESTIONS ON NIGERIAN
COAT OF ARMSCOAT OF ARMS
• HOW MANY ELEMENTS ARE ON THE
NIGERIAN COAT OF ARMS?
• LIST THE ELEMENTS?
• EXPLAIN WHAT EACH OF THEM
REPRESENTS?
The Coat Of Arms Of Nigeria Is aThe Coat Of Arms Of Nigeria Is a
Symbol Of National ExcellenceSymbol Of National Excellence
• 1 The black shield=Nigeria’s good earth
• 2 The Y shaped white strip=Nigeria’s
rivers Benue and Niger.
• 3 The 2 horses=National diginity
• 4 The eagle=Strength
• 5 The green&white bandson the top of
the shield=Our rich agricultural lands
6 The yellow flowers(not red)=Nigeria’s
national flower(Costus Spectabilis).
What is Management ?What is Management ?
Management, in a simple terminology, is getting things
done through other people. Peter Drucker defines
Management as the organ of institutions, the organ that
converts a mob into an organization and human efforts into
performance. Harold Koontz and Heinz Weichrich defined
management as the process of designing and maintaining
an environment in which individual working together in
Groups can accomplish carefully selected goals.
Drucker’s view in management emphasizes performance
quality and service; Peters and Waterman on the other
hand emphasize mentorship, love for managing and
working with people.
WHAT ARE RESOURCES?WHAT ARE RESOURCES?
• Resources are:
• What an individual,organization or a
country has that can assist in the creation
of more wealth.
• It is also natural or man made source of
wealth or revenue
• Resources are function of functions and
the infrastructure upon which the super-
structures are built.
TYPES OF RESOURCESTYPES OF RESOURCES
• Human Resources
• Material Resources &
• Method (Technology)
THE 5Ms OF MANAGEMENT
– Man
– Material
– Machine
– Money &
– Minute
Approaches to Management ThoughtApproaches to Management Thought
The three well-established approaches to
Management thought are:
i. The classical Approach – Managing Work and
Organizations
ii. The Behavioral Approach - Managing People
iii. The Management Science Approach -
Managing Production and Operations
Classical knowledge
Behavioural
Knowledge
Management Science Knowledge
Planning
Organising
Managing Work and
Organisation
Managing
Production and
Operations
Managing
People
Figure 1
Controlling
WHAT DOES IT MEAN TO MANAGE?
To manage means:-
 To be in charge of something or a function or a job.
 To plan and make decisions in your job.
 To control and monitor your decisions for outcomes.
 To get results – Timely results.
THE NATURE OF MANAGERIAL WORK FOR COMMITTED
MANAGERS.
i. No real break in the pace of activity during office hours.
ii. Accounting for almost every minute from the moment the
manager entered the office in the morning until he/she departs in
the evenings.
iii. There is no real free time, in their minds, real managers are
thinking about results and efficiency in resource management.
iv. Drums are never rolled- out if the targets are not surpassed.
WHY DO COMMITTED MANAGERS
ADOPT THIS PACE AND WORK LOAD?
The manager is responsible for the success of
his/her organization.
i. There are really no tangible mile posts where
a manager can stop and say, “Now my job is
finished” especially in managing resources.
ii. The engineer can finish the design of a
casting on a certain day;
The Lawyer wins or loses a case at some
moment of time;
But the “ Manager” must always keep going;
Never sure where he/she has succeeded,
Never sure when the whole organization
may come down because of some
miscalculations.(In the GDP & GNP)
v. The manager is a person with a perpetual
preoccupation in resources management.
vi. The manager can never be free to forget
his/her job & optimization in resource
management.
vii. The managers job in any organization is busy
and demanding.
WHAT OTHER FACTORS MAKE COMMITTEDWHAT OTHER FACTORS MAKE COMMITTED
MANAGERS TO ADOPT THIS PACE,MANAGERS TO ADOPT THIS PACE,
WORKLOAD AND STRUGGLE.WORKLOAD AND STRUGGLE.
The simple answer is the nature of
environment where managers operate
(Internal and external environment).
The manager can control the internal
business environment, but he/she is at
the mercy of the external environmental
forces.
CONT’DCONT’D
There are three broad forces from the
business environment:
I. KEY MACRO ENVIRONMENTAL FORCES; VIZ:
 Political forces – North – South
 Regulatory forces – CBN, NAFDAC, SEC, SON, NDLEA.
 Demographic forces: changes in age, gender; number etc.
 Legislative/Legal forces; Constitutional Reforms, Acts/Edicts.
 Social, Cultural and Religious Forces
 Economic forces; Changes in GNP, GDP, Fiscal/Monetary
Policies.
 Eratic or rapidity of technical change (Technological change)
CONT’DCONT’D
II. MICRO SIGNIFICANT FACTORS
 Current informed and sophisticated
business
community
 Current highly articulated/aggressive
competitors
 Strategically positioned youth
 Very knowledgeable/highly informed
private
sector
 Rapid change in taste and fashion of
consumers.
CONT’DCONT’D
III. MEGA-MACRO FACTORS
 Globalization, Deregulation and Libralization.
 Computer,Infomation and Telecommunication
advancement.
 Innovations and modernization of work
methods.
 Market fragmentation and segmentation
 Institutional Issues, interests and pressures
 Antitrust laws and Environmental Protection
laws.
C ONT’DC ONT’D
Regional Economic blocks eg AU; EU;
NATO G7 etc
Coalition Building and Strategic Business
alliances eg. Peak Association, Trade
Association, Formation of Ad. Hoc
consumer coalitions and consensus
groups.
Changes in global cost of Labour/Absolute
& Comparative advantages.
METHOD AND PROCESS OF ANALYSMETHOD AND PROCESS OF ANALYSINGING
THE BUSINESS ENVIRONMENT BY THETHE BUSINESS ENVIRONMENT BY THE
MANAGERMANAGER
There are two things that the environment
fashions out to the manager.
I. Treats or challenges
II. Opportunities or advantages
The method and process of analysis include
SWOT analysis and to SMART plans for
resources management.
CONT’DCONT’D
SWOT is for:
• Effective Self and organization evaluation (ESAOE).
• External Environmental Analysis (EEA)
• Opportunity and Threat Analysis (OATA)
• Business Opportunity Analysis (BOA)
SMART IS FOR:
S: Specific planning
M: Maintenance of a Measurable standard
A: Attainable, Achievable and Adjustible plans
R: Realistic, and deterministic plans
T: Timing of results, evaluation/appraisal time.
WHO IS A MANAGER?WHO IS A MANAGER?
A manager is any person entrusted with
workplace responsibility.
A manager is someone in charge of a
particular function or job.
A manager is any worker or staff who finds him/herself in
charge of any of the 5Ms of Management; namely; Man,
(People factor), Materials (inputs), Machines (PC, Gen.
Set,
factory equipment, etc), Money (Finance, cash) and
Minute (i.e managing time to deliver desired results).
CONT’DCONT’D
From the foregoing, who is a manager?
• Is the security agent a manager? If yes what
does he/she manage?
• Is the military guy a manager? If yes what
does he/she manage?
• Is the administrative Officer a manager? If
yes what does he/she manage?
• Is the Personal Assistance a Manager? If yes
what does he/she manage?
• What of the drivers, heads of departments,
HR Personnel, Directors, Managing
Directors/CEOs are they managers? If yes,
what do they manage-REOURCES!
THE PSYCHOLOGY OF PEOPLE FACTORTHE PSYCHOLOGY OF PEOPLE FACTOR
MANAGEMENTMANAGEMENT
1.1. Spend Your Time And Energy Creating NotSpend Your Time And Energy Creating Not
CriticizingCriticizing:Criticizing is NOT:Criticizing is NOT
CommunicationCommunication
The critic is convinced that the chief purpose ofThe critic is convinced that the chief purpose of
sunshine is to cast shadows. He doesn’t usuallysunshine is to cast shadows. He doesn’t usually
believe anything, but he still wants you to believebelieve anything, but he still wants you to believe
him.him.
Like a cynic, he always knows the “price ofLike a cynic, he always knows the “price of
everything and the value of nothing” (Oscareeverything and the value of nothing” (Oscare
Wilde).Wilde).
We have no more right to putWe have no more right to put OUROUR
DISCORDANT STATES OF MIND INTO THEDISCORDANT STATES OF MIND INTO THE
LIVES OF THOSE AROUND US and rob themLIVES OF THOSE AROUND US and rob them
of their sunshine, brightness and promotionof their sunshine, brightness and promotion
just because we don’t like them or they havejust because we don’t like them or they have
perhaps a better opportunity/education. -perhaps a better opportunity/education. -
JULIA SETONJULIA SETON
In criticizing others, remember that you willIn criticizing others, remember that you will
work overtime for no paywork overtime for no pay..
““Never throw mud.Never throw mud. If you do, you may hit yourIf you do, you may hit your
mark, but you will have dirty hands.mark, but you will have dirty hands. Don’t be aDon’t be a
cloud because you willcloud because you will fail to become a starfail to become a star..
Instead, “Give so much time to the improvementInstead, “Give so much time to the improvement
of yourself that you have no time to destructivelyof yourself that you have no time to destructively
criticize others”.criticize others”. Spend your time and energySpend your time and energy
creatingcreating not criticizing.not criticizing.
2.2. DEVELOP INTEREST IN PEOPLE AND LEADDEVELOP INTEREST IN PEOPLE AND LEAD
THEM.THEM.
People have the tendency of becoming what youPeople have the tendency of becoming what you
encourage them to be.encourage them to be.
Trust people and they will be true to you; treat themTrust people and they will be true to you; treat them
greatly and they will show themselves great to you ingreatly and they will show themselves great to you in
return.return.
Develop people’s potentials; build their capacities showDevelop people’s potentials; build their capacities show
INVEST IN THE HUMAN RESOURCEINVEST IN THE HUMAN RESOURCE
You cannot hold a light to others path without brighteningYou cannot hold a light to others path without brightening
your own path.your own path.
Invest in people’s success, develop greatness in others;Invest in people’s success, develop greatness in others;
lift people up, don’t put them down.lift people up, don’t put them down.
Don’t manage people with bitterness in your heart.Don’t manage people with bitterness in your heart.
Avoid witch-hunting approach in managing people.Avoid witch-hunting approach in managing people.
Allan McGinnis said: that there is no more nobleAllan McGinnis said: that there is no more noble
occupation in the world than to assist the otheroccupation in the world than to assist the other
person in the workplace to succeedperson in the workplace to succeed..
NELSON HENDERSONNELSON HENDERSON said that the true meaning ofsaid that the true meaning of
life is to plant trees under whose shade you do notlife is to plant trees under whose shade you do not
expect to sit.expect to sit.
FACILITIESFACILITIES
MANAGEMENTMANAGEMENT
DEFINITIONS:DEFINITIONS:
• FACILITY: A facility is anything that is
established to serve a particular purpose and
where a particular activity happens.
• A facility may be a building, factory, clinic,
canteen, conveniences, computer centre,
elevator, staff bus, loan or overdraft, goodwill,
copyright, patent rights, etc. In other words a
facility may be service, financial or physical
structures.
• The term “Facility management” is similar to
“property management” but often applied
only to larger and/or commercial properties
where the management and operation is more
complex. Some or all of these aspects can be
maintained by data-rich computer programs.
• One definition provided by the International
Facility Management Association (IFMA)
defines FM as “A profession that encompasses
multiple disciplines to ensure functionality of the
built environment by integrating people, place,
progress and technology.”
Definitions ContdDefinitions Contd
• Another broader definition provided by
IFMA is that FM is the practice of
coordinating the physical workplace with
the people and work of the organization;
integrates the principles of business
administration, architecture, and the
behavioral and engineering sciences.
• In the UK and other European countries facilities
management has a wider definition than simply the
management of equipment, buildings and services.
The definition of FM provided by the European
Committee for Standardization (CEN) and ratified by
BSI British Standard Institute is that Facilities
Management is the integration of processes within an
organization to maintain and develop the agreed
services which support and improve the effectiveness
of its primary activities. They looked at facilities
management as the integration of multi-disciplinary
activities within the built environment and the
management of their impact upon people and the
workplace.
• In Australia, the term Commercial
Services has replaced facilities
management in some originations.
Commercial services can also define
services other than just looking after
facilities, such as security, waste disposal,
facility services and strategic planning.
• In Nigeria, estate management performs the
function of FM.
• The FGN has what is called FRMA for Federal
Road Maintenance Agency; however, there is
no federal agency for public facilities
management in Nigeria. Many
companies/organizations in Nigeria has no
unit/department for facility management, can
you set up one for your organization?
APPROACHES TOAPPROACHES TO FACILITIESFACILITIES
MANAGEMENTMANAGEMENT
Security agents,the forces and para-securitySecurity agents,the forces and para-security
establismentsestablisments should be committed inshould be committed in
managing facilities in their organizationmanaging facilities in their organizationss..
This implies keeping operationsThis implies keeping operations facilities orfacilities or
resources in good working condition.resources in good working condition.
This include:This include:
• i Preventive Management Approach (PMA)
• ii Total Preventive Maintenance (TPA)
• Iii Total Quality Management Approach (TQMA)
• Iv Total Quality Control (TQC)
• v Joint Internal Task Maintenance Approach (JIT)
• vi Creating Central Maintenance Department (CMD)
Apart from the CMD, typical types of maintenance
associates include:-
i Mill-Wrights: These are skill people who
move and install equipment in a mills/factory,
especially hard-to-manage maintenance.
ii Repair Technician: These are skilled well paid
trouble-shooters who have sharp diagnostic
skills. They should be trained and maintained.
iii Custodians:These are house keepers/Cleaners for
offices, equipment, electrical points/circuits and
company vehicle fleet management etc.
MANAGEMENT OF PUBLICMANAGEMENT OF PUBLIC
AND PRIVATE FACILITIESAND PRIVATE FACILITIES
• Public Facilities In Nigeria:
• Public Schools
• General Hospitals
• Government Offices /Conveniences
• Federal, State /Local Roads
• Pipe-Borne Water
• Public Water Schemes
• Power & Electricity – PHCN or NEPA
• Public Funds Management
• Management of foreign Grants /Aids
Private Sector Facilities:Private Sector Facilities:
• Business loan Facilities Management
• Office Environmental Management
• Management of Buildings Machinery
Equipments e.g. vehicles, plants PCs
Elevators, Stair cases, Accounts
• Management of Social Facilities e.g. Toilets,
Canteens, water dispensers
• Managing Staff Terminal Benefits, Pension
and Gratuity and general staff welfare
packages
PUBLIC SECTOR FACILITIESPUBLIC SECTOR FACILITIES
AND RUN TO FAILAND RUN TO FAIL
SYNDROMESYNDROME
MANAGMANAGING THE PHYSICALING THE PHYSICAL
ENVIRONMENTENVIRONMENT
• Social responsibilities and trying to make the
operation environment friendly by controlling
waste products and negative externalities.
Some companies recycle paper and other
wastes; some have install smoke stack
scrubbers, scrap recovery, waste water
recycling etc.
MANAGEMENT OFMANAGEMENT OF ORGANIZATIONALORGANIZATIONAL
FIXED ASSETSFIXED ASSETS
ASSETS OF AN ORGANIZATIONASSETS OF AN ORGANIZATION
Assets are the economic resources of a
business that can usefully be expressed in
monetary forms e.g. Cash, Accounts
receivable, land, machinery/equipment,
inventory, prepayment etc.
ASSESTS ARE OF TWO BROAD TYPESASSESTS ARE OF TWO BROAD TYPES
i Current Assets and
ii Fixed Assets. The third which I will add is called
“Fictitious or Intangible Assets”
– CURRENT ASSET INCLUDE:-
- Stock – finished goods
- Work – in – Progress
- Raw materials
- Debtors or accounts receivables
- Cash & Bank balance
- Prepayments
FICTITIOUS OR INTANAGIBLE ASSESTSFICTITIOUS OR INTANAGIBLE ASSESTS
INCLUDE:INCLUDE:
- Goodwill
- Patent Rights, trade marks
- Deferred charges etc
The focus of this section is on management of
fixed assets especially, plants,
machinery,building and equipment.
WHAT ARE FIXED ASSETS?
Fixed assets are those assets that are used or
whose consumption is spread over the years
they include the following:
- Land and building
- Plant and machinery
- Office furniture and equipment
- Office fixtures and fittings
- Motor vehicles etc
WHY THE NEED TO MANAGE FIXED ASSETSWHY THE NEED TO MANAGE FIXED ASSETS
i In some organization fixed assets constitute
about 50% of the total assets which has serious
implications for the survival of the firm.
ii Fixed assets are part of the yard stick used
against sales to measure returns on
investment.
iii in manufacturing organization equipment and
machinery management determines the
optimal performance of the outfit or venture.
ivit creates good working environment for
workers which in turn increases productivity.
MEASURING MENAGEMENT ANDMEASURING MENAGEMENT AND
MAINTENANCEMAINTENANCE EFFECTIVENESS O F FIXEDEFFECTIVENESS O F FIXED
ASSETSASSETS
What does measurement imply here?
What is effectiveness?
What is the principle of a good maintenance
culture.
To measure means to discover the exact effect size or
amount of something
To measure also means to find as good as a thing is,
ought to be or the goodness of fit
To measure means to evaluate
It also means to appraise or to put the right value on
something.
To measure also involves finding the extent ofTo measure also involves finding the extent of
efficient progress made in something or if theefficient progress made in something or if the
maintenance or service is rewarding or notmaintenance or service is rewarding or not
PROFITABILITY MEASURES (RATIOS) IN
RELATION TO ASSETS
i ROTA: Return on Total Assets = P.A.T
capital employed
ii RONA: Return on Net Assets = P.A.T
NET Assets
Iii ROFA: Return on Fixed Assets= P.A.T
Fixed Assets
This measures or ratios show how many times
assets – (total, fixed and net assets are turned
over as a result of good asset management.
The industrial average for assets turnover is
three
(3) times per year. Therefore if the results of
your
ROTA, RONA, and ROFA are less than 3 times
per year it is an indication of poor asset
management and maintenance.
ASSET UTILIZATION MEASURES (ACTIVITYASSET UTILIZATION MEASURES (ACTIVITY
RATIOS)RATIOS)
i EBIT TO TOTAL ASSETS = EBIT
TA
ii SALES TO TOTAL ASSETS = SALES
TA
iii RETAINED EARNING TO = RETAINED EARNINGS
TA
iv TOTAL DEBT TO TOTAL ASSETS = TOTAL LIABILITIES
TA
Here the first three ratios show how you are managing the assets
of the company, while the last show total debt to capital employed.
PRINCIPLES OF GOOD MAINTENANCEPRINCIPLES OF GOOD MAINTENANCE
MANAGEMENT CULTURE.MANAGEMENT CULTURE.
• ECONOMY: Economy is about seeking to
avoid wastage of resources in maintenance of
plant, equipment and machinery
• EFFICIENCY: Efficiency in maintenance
culture is about using the least possible to
achieve the best possible.
• EFFECTIVENESS: Effectiveness is about
applying the culture of good maintenance in
available resources in such a way as to lead to
the desired results.
MANAGERIAL SKILLS ANDMANAGERIAL SKILLS AND
COMPETENCIES FOR MANAGERSCOMPETENCIES FOR MANAGERS
1. Conceptual Skill:
 The ability to constructively view your organisation and
the situations, the threats, and opportunities.
 Analytical ability drawn from ones mental capacities to
identify problems and offer solutions.
 The ability to gather data, classify, harmonize and
interpretation of relevant information.
 The ability to develop good problem-solving decision
that serve your organizations purpose.
CONT’DCONT’D
2. Technical Skill
 The ability to apply specialized knowledge or
expertise to perform a job or assigned duties.
 It involves being highly proficient at using
selected methods processes, and procedures
to accomplish tasks and to meet deadlines.
 Technical skills are acquired through formal
and informal education, or learned through
appropriate work training and on-the-job
experiences.
CONT’DCONT’D
3. Human Relations Skill
 The ability to work well in cooperation with
others.
 Development of the spirit of trust, enthusiasm
and genuine involvement in interpersonal
relationships.
 High degree of self-awareness and a capacity
for understanding or empathizing with the
feelings of others (co-workers)
 It is an essential skill for managers networking
responsibilities.
Value-Added Managers AreValue-Added Managers Are
Organisational AssetsOrganisational Assets
Are you an asset or liability to your
organisation?
Are you impacting positively on your
organization?
- World-class managers add value constantly to
their organization.
- World-class organizations want value-added
managers.
- Managers whose efforts clearly enable their
work units to achieve high productivity and
improve “bottom-line” performance.
CONT’DCONT’D
- Value-added managers create high performance
system in which individuals and groups work
well together, to the benefit of the entire
organisation and its clients or customers.
- Value-added managers are the most likely to
reap the reward of satisfying careers.
- In periods of organizational restructuring
workforce, value-added managers will have little
or no trouble in justifying their jobs.
The Dual Manager’s Challenge inThe Dual Manager’s Challenge in
the Management Processthe Management Process
The manager may serve in two capacities
simultaneously, that’s the duality of the
challenge.
I. As the head of a work unit or department.
II. As a subordinate in another situation.
III. The manager is held “accountable” by higher level superiors for
work unit results.
IV. The manager is also “dependent” on the efforts of others
(subordinates) to make these results possible.
V. In the new work environment, the manager must meet and
exceed customer expectations for high quality and service
standards.
VI. Much of the manager’s time is spent dealing with the stresses
and strains of simultaneously meeting the demands of upward
accountability and downward dependency.
MANAGERIALMANAGERIAL BLINDNESSBLINDNESS
John Gardner at one time said; that most
ailing organisations have developed
functional blindness to their own defects;
they are not suffering because they cannot
resolve their problems, but because they
cannot see their problems.
CONT’DCONT’D
Managers and leaders should know clearly
that: “Carrot and Stick”- (motivation) is animal
psychology-it is known as – “The Jackas
Theory”-it is old paradigm. People have the
power to choose, you can buy someone’s
back, but not his heart and mind.
You can buy his hands, but not his spirit-(The
New Paradigm). Harold S. Greneen, former
chairman of ITT. of UK said….
CONT’DCONT’D
The best way to inspire and lead people to a
superior performance is to convince them by
everything you do and by your everyday
actions & attitude that you are committed
whole heartedly to prudent resource
management.
THE ADVICE
- Be an original copy, and embodiment of
true leadership, a legacy in management
style and a solution in the system not the
problem!.Make use of MBO but avoid...........
MBG,MBS & MBH or MBI that brings failure!
How do we Manage Green ProductivityHow do we Manage Green Productivity
Law of Ecology -Law of Ecology -
““ Nothing comes from nowhereNothing comes from nowhere
Everything comes from Somewhere”Everything comes from Somewhere”
““ Nothing ever goes awayNothing ever goes away
Everything goes somewhere”Everything goes somewhere”
ENVIRONMENTALENVIRONMENTAL
SECURITYSECURITY
HOW SAFE ARE THE
POLITICAL, SOCIAL &
ECONOMIC ENVIRONMENT &
THE ROLE OF GOVT.
IN PROTECTING THE PUBLIC
FROM ROBBERS,KILLERS
KIDNAPPERS & MILITANTS
SCENE OF MASS BURIALAFTERSCENE OF MASS BURIALAFTER
RECENT COMMUNITY CRISIS INRECENT COMMUNITY CRISIS IN
NIGERIA-NEXT SLIDENIGERIA-NEXT SLIDE
““ NoNo crisis or pollutioncrisis or pollution comes fromcomes from
NNowhereowhere
EveryEvery crisis/Pollutioncrisis/Pollution comes fromcomes from
Somewhere”Somewhere”
How securedHow secured is our environment?is our environment?
FOR EFFICIENT MANAGEMENTFOR EFFICIENT MANAGEMENT
OF RESOURCESOF RESOURCES
THERE ARE SIX (6) GIRLS FROM OUR 6
GEOPOLITICAL ZONES YOU MUST
AVOID TOTALLY!
DO YOU KNOW THE NAMES OF THESE
GIRLS? (THEY ARE ALL NIGERIANS)
THE NAMES OF THE GIRLS ARE:THE NAMES OF THE GIRLS ARE:
MISS-INFORMATION
MISS-CONCEPTION
MISS-CALCULATION
MISS-CONDUCT
MISS-APPROPRIATION &
MISS-MANAGEMENT
REFRENCESREFRENCES
• Donnelly, J.H. Jr Etal (1992) Fundamentals of
Management: Irwin, Homewood Boston M.A.
• Adams, F.P. & Cox J.F. (1985) Manufacturing
Resource Planning: An Information System
Model
• Eugene F.F. (1990) “Use Technology to
Reduce Manufacturing Costs”: The Journal of
Business Strategy
• Financial Management by Pandy Olowe (1997):
Financial Management and Concept Analysis

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Resources & facilities mgt.

  • 1. RESOURCES AND FACILITIESRESOURCES AND FACILITIES MANAGEMENTMANAGEMENT YAKUBU, EMMANUEL O.
  • 2. QUESTIONS ON NIGERIANQUESTIONS ON NIGERIAN COAT OF ARMSCOAT OF ARMS • HOW MANY ELEMENTS ARE ON THE NIGERIAN COAT OF ARMS? • LIST THE ELEMENTS? • EXPLAIN WHAT EACH OF THEM REPRESENTS?
  • 3. The Coat Of Arms Of Nigeria Is aThe Coat Of Arms Of Nigeria Is a Symbol Of National ExcellenceSymbol Of National Excellence • 1 The black shield=Nigeria’s good earth • 2 The Y shaped white strip=Nigeria’s rivers Benue and Niger. • 3 The 2 horses=National diginity • 4 The eagle=Strength • 5 The green&white bandson the top of the shield=Our rich agricultural lands 6 The yellow flowers(not red)=Nigeria’s national flower(Costus Spectabilis).
  • 4. What is Management ?What is Management ? Management, in a simple terminology, is getting things done through other people. Peter Drucker defines Management as the organ of institutions, the organ that converts a mob into an organization and human efforts into performance. Harold Koontz and Heinz Weichrich defined management as the process of designing and maintaining an environment in which individual working together in Groups can accomplish carefully selected goals. Drucker’s view in management emphasizes performance quality and service; Peters and Waterman on the other hand emphasize mentorship, love for managing and working with people.
  • 5. WHAT ARE RESOURCES?WHAT ARE RESOURCES? • Resources are: • What an individual,organization or a country has that can assist in the creation of more wealth. • It is also natural or man made source of wealth or revenue • Resources are function of functions and the infrastructure upon which the super- structures are built.
  • 6. TYPES OF RESOURCESTYPES OF RESOURCES • Human Resources • Material Resources & • Method (Technology) THE 5Ms OF MANAGEMENT – Man – Material – Machine – Money & – Minute
  • 7. Approaches to Management ThoughtApproaches to Management Thought The three well-established approaches to Management thought are: i. The classical Approach – Managing Work and Organizations ii. The Behavioral Approach - Managing People iii. The Management Science Approach - Managing Production and Operations
  • 8. Classical knowledge Behavioural Knowledge Management Science Knowledge Planning Organising Managing Work and Organisation Managing Production and Operations Managing People Figure 1 Controlling
  • 9. WHAT DOES IT MEAN TO MANAGE? To manage means:-  To be in charge of something or a function or a job.  To plan and make decisions in your job.  To control and monitor your decisions for outcomes.  To get results – Timely results. THE NATURE OF MANAGERIAL WORK FOR COMMITTED MANAGERS. i. No real break in the pace of activity during office hours. ii. Accounting for almost every minute from the moment the manager entered the office in the morning until he/she departs in the evenings. iii. There is no real free time, in their minds, real managers are thinking about results and efficiency in resource management. iv. Drums are never rolled- out if the targets are not surpassed.
  • 10. WHY DO COMMITTED MANAGERS ADOPT THIS PACE AND WORK LOAD? The manager is responsible for the success of his/her organization. i. There are really no tangible mile posts where a manager can stop and say, “Now my job is finished” especially in managing resources. ii. The engineer can finish the design of a casting on a certain day; The Lawyer wins or loses a case at some moment of time;
  • 11. But the “ Manager” must always keep going; Never sure where he/she has succeeded, Never sure when the whole organization may come down because of some miscalculations.(In the GDP & GNP) v. The manager is a person with a perpetual preoccupation in resources management. vi. The manager can never be free to forget his/her job & optimization in resource management. vii. The managers job in any organization is busy and demanding.
  • 12. WHAT OTHER FACTORS MAKE COMMITTEDWHAT OTHER FACTORS MAKE COMMITTED MANAGERS TO ADOPT THIS PACE,MANAGERS TO ADOPT THIS PACE, WORKLOAD AND STRUGGLE.WORKLOAD AND STRUGGLE. The simple answer is the nature of environment where managers operate (Internal and external environment). The manager can control the internal business environment, but he/she is at the mercy of the external environmental forces.
  • 13. CONT’DCONT’D There are three broad forces from the business environment: I. KEY MACRO ENVIRONMENTAL FORCES; VIZ:  Political forces – North – South  Regulatory forces – CBN, NAFDAC, SEC, SON, NDLEA.  Demographic forces: changes in age, gender; number etc.  Legislative/Legal forces; Constitutional Reforms, Acts/Edicts.  Social, Cultural and Religious Forces  Economic forces; Changes in GNP, GDP, Fiscal/Monetary Policies.  Eratic or rapidity of technical change (Technological change)
  • 14. CONT’DCONT’D II. MICRO SIGNIFICANT FACTORS  Current informed and sophisticated business community  Current highly articulated/aggressive competitors  Strategically positioned youth  Very knowledgeable/highly informed private sector  Rapid change in taste and fashion of consumers.
  • 15. CONT’DCONT’D III. MEGA-MACRO FACTORS  Globalization, Deregulation and Libralization.  Computer,Infomation and Telecommunication advancement.  Innovations and modernization of work methods.  Market fragmentation and segmentation  Institutional Issues, interests and pressures  Antitrust laws and Environmental Protection laws.
  • 16. C ONT’DC ONT’D Regional Economic blocks eg AU; EU; NATO G7 etc Coalition Building and Strategic Business alliances eg. Peak Association, Trade Association, Formation of Ad. Hoc consumer coalitions and consensus groups. Changes in global cost of Labour/Absolute & Comparative advantages.
  • 17. METHOD AND PROCESS OF ANALYSMETHOD AND PROCESS OF ANALYSINGING THE BUSINESS ENVIRONMENT BY THETHE BUSINESS ENVIRONMENT BY THE MANAGERMANAGER There are two things that the environment fashions out to the manager. I. Treats or challenges II. Opportunities or advantages The method and process of analysis include SWOT analysis and to SMART plans for resources management.
  • 18. CONT’DCONT’D SWOT is for: • Effective Self and organization evaluation (ESAOE). • External Environmental Analysis (EEA) • Opportunity and Threat Analysis (OATA) • Business Opportunity Analysis (BOA) SMART IS FOR: S: Specific planning M: Maintenance of a Measurable standard A: Attainable, Achievable and Adjustible plans R: Realistic, and deterministic plans T: Timing of results, evaluation/appraisal time.
  • 19. WHO IS A MANAGER?WHO IS A MANAGER? A manager is any person entrusted with workplace responsibility. A manager is someone in charge of a particular function or job. A manager is any worker or staff who finds him/herself in charge of any of the 5Ms of Management; namely; Man, (People factor), Materials (inputs), Machines (PC, Gen. Set, factory equipment, etc), Money (Finance, cash) and Minute (i.e managing time to deliver desired results).
  • 20. CONT’DCONT’D From the foregoing, who is a manager? • Is the security agent a manager? If yes what does he/she manage? • Is the military guy a manager? If yes what does he/she manage? • Is the administrative Officer a manager? If yes what does he/she manage? • Is the Personal Assistance a Manager? If yes what does he/she manage? • What of the drivers, heads of departments, HR Personnel, Directors, Managing Directors/CEOs are they managers? If yes, what do they manage-REOURCES!
  • 21. THE PSYCHOLOGY OF PEOPLE FACTORTHE PSYCHOLOGY OF PEOPLE FACTOR MANAGEMENTMANAGEMENT 1.1. Spend Your Time And Energy Creating NotSpend Your Time And Energy Creating Not CriticizingCriticizing:Criticizing is NOT:Criticizing is NOT CommunicationCommunication The critic is convinced that the chief purpose ofThe critic is convinced that the chief purpose of sunshine is to cast shadows. He doesn’t usuallysunshine is to cast shadows. He doesn’t usually believe anything, but he still wants you to believebelieve anything, but he still wants you to believe him.him. Like a cynic, he always knows the “price ofLike a cynic, he always knows the “price of everything and the value of nothing” (Oscareeverything and the value of nothing” (Oscare Wilde).Wilde).
  • 22. We have no more right to putWe have no more right to put OUROUR DISCORDANT STATES OF MIND INTO THEDISCORDANT STATES OF MIND INTO THE LIVES OF THOSE AROUND US and rob themLIVES OF THOSE AROUND US and rob them of their sunshine, brightness and promotionof their sunshine, brightness and promotion just because we don’t like them or they havejust because we don’t like them or they have perhaps a better opportunity/education. -perhaps a better opportunity/education. - JULIA SETONJULIA SETON In criticizing others, remember that you willIn criticizing others, remember that you will work overtime for no paywork overtime for no pay.. ““Never throw mud.Never throw mud. If you do, you may hit yourIf you do, you may hit your mark, but you will have dirty hands.mark, but you will have dirty hands. Don’t be aDon’t be a cloud because you willcloud because you will fail to become a starfail to become a star..
  • 23. Instead, “Give so much time to the improvementInstead, “Give so much time to the improvement of yourself that you have no time to destructivelyof yourself that you have no time to destructively criticize others”.criticize others”. Spend your time and energySpend your time and energy creatingcreating not criticizing.not criticizing. 2.2. DEVELOP INTEREST IN PEOPLE AND LEADDEVELOP INTEREST IN PEOPLE AND LEAD THEM.THEM. People have the tendency of becoming what youPeople have the tendency of becoming what you encourage them to be.encourage them to be. Trust people and they will be true to you; treat themTrust people and they will be true to you; treat them greatly and they will show themselves great to you ingreatly and they will show themselves great to you in return.return. Develop people’s potentials; build their capacities showDevelop people’s potentials; build their capacities show
  • 24. INVEST IN THE HUMAN RESOURCEINVEST IN THE HUMAN RESOURCE You cannot hold a light to others path without brighteningYou cannot hold a light to others path without brightening your own path.your own path. Invest in people’s success, develop greatness in others;Invest in people’s success, develop greatness in others; lift people up, don’t put them down.lift people up, don’t put them down. Don’t manage people with bitterness in your heart.Don’t manage people with bitterness in your heart. Avoid witch-hunting approach in managing people.Avoid witch-hunting approach in managing people. Allan McGinnis said: that there is no more nobleAllan McGinnis said: that there is no more noble occupation in the world than to assist the otheroccupation in the world than to assist the other person in the workplace to succeedperson in the workplace to succeed.. NELSON HENDERSONNELSON HENDERSON said that the true meaning ofsaid that the true meaning of life is to plant trees under whose shade you do notlife is to plant trees under whose shade you do not expect to sit.expect to sit.
  • 26. DEFINITIONS:DEFINITIONS: • FACILITY: A facility is anything that is established to serve a particular purpose and where a particular activity happens. • A facility may be a building, factory, clinic, canteen, conveniences, computer centre, elevator, staff bus, loan or overdraft, goodwill, copyright, patent rights, etc. In other words a facility may be service, financial or physical structures.
  • 27. • The term “Facility management” is similar to “property management” but often applied only to larger and/or commercial properties where the management and operation is more complex. Some or all of these aspects can be maintained by data-rich computer programs. • One definition provided by the International Facility Management Association (IFMA) defines FM as “A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, progress and technology.”
  • 28. Definitions ContdDefinitions Contd • Another broader definition provided by IFMA is that FM is the practice of coordinating the physical workplace with the people and work of the organization; integrates the principles of business administration, architecture, and the behavioral and engineering sciences.
  • 29. • In the UK and other European countries facilities management has a wider definition than simply the management of equipment, buildings and services. The definition of FM provided by the European Committee for Standardization (CEN) and ratified by BSI British Standard Institute is that Facilities Management is the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities. They looked at facilities management as the integration of multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace.
  • 30. • In Australia, the term Commercial Services has replaced facilities management in some originations. Commercial services can also define services other than just looking after facilities, such as security, waste disposal, facility services and strategic planning.
  • 31. • In Nigeria, estate management performs the function of FM. • The FGN has what is called FRMA for Federal Road Maintenance Agency; however, there is no federal agency for public facilities management in Nigeria. Many companies/organizations in Nigeria has no unit/department for facility management, can you set up one for your organization?
  • 32. APPROACHES TOAPPROACHES TO FACILITIESFACILITIES MANAGEMENTMANAGEMENT Security agents,the forces and para-securitySecurity agents,the forces and para-security establismentsestablisments should be committed inshould be committed in managing facilities in their organizationmanaging facilities in their organizationss.. This implies keeping operationsThis implies keeping operations facilities orfacilities or resources in good working condition.resources in good working condition. This include:This include:
  • 33. • i Preventive Management Approach (PMA) • ii Total Preventive Maintenance (TPA) • Iii Total Quality Management Approach (TQMA) • Iv Total Quality Control (TQC) • v Joint Internal Task Maintenance Approach (JIT) • vi Creating Central Maintenance Department (CMD) Apart from the CMD, typical types of maintenance associates include:-
  • 34. i Mill-Wrights: These are skill people who move and install equipment in a mills/factory, especially hard-to-manage maintenance. ii Repair Technician: These are skilled well paid trouble-shooters who have sharp diagnostic skills. They should be trained and maintained. iii Custodians:These are house keepers/Cleaners for offices, equipment, electrical points/circuits and company vehicle fleet management etc.
  • 35. MANAGEMENT OF PUBLICMANAGEMENT OF PUBLIC AND PRIVATE FACILITIESAND PRIVATE FACILITIES • Public Facilities In Nigeria: • Public Schools • General Hospitals • Government Offices /Conveniences • Federal, State /Local Roads • Pipe-Borne Water • Public Water Schemes • Power & Electricity – PHCN or NEPA • Public Funds Management • Management of foreign Grants /Aids
  • 36. Private Sector Facilities:Private Sector Facilities: • Business loan Facilities Management • Office Environmental Management • Management of Buildings Machinery Equipments e.g. vehicles, plants PCs Elevators, Stair cases, Accounts • Management of Social Facilities e.g. Toilets, Canteens, water dispensers • Managing Staff Terminal Benefits, Pension and Gratuity and general staff welfare packages
  • 37. PUBLIC SECTOR FACILITIESPUBLIC SECTOR FACILITIES AND RUN TO FAILAND RUN TO FAIL SYNDROMESYNDROME
  • 38. MANAGMANAGING THE PHYSICALING THE PHYSICAL ENVIRONMENTENVIRONMENT • Social responsibilities and trying to make the operation environment friendly by controlling waste products and negative externalities. Some companies recycle paper and other wastes; some have install smoke stack scrubbers, scrap recovery, waste water recycling etc.
  • 39.
  • 40.
  • 41. MANAGEMENT OFMANAGEMENT OF ORGANIZATIONALORGANIZATIONAL FIXED ASSETSFIXED ASSETS
  • 42. ASSETS OF AN ORGANIZATIONASSETS OF AN ORGANIZATION Assets are the economic resources of a business that can usefully be expressed in monetary forms e.g. Cash, Accounts receivable, land, machinery/equipment, inventory, prepayment etc.
  • 43. ASSESTS ARE OF TWO BROAD TYPESASSESTS ARE OF TWO BROAD TYPES i Current Assets and ii Fixed Assets. The third which I will add is called “Fictitious or Intangible Assets” – CURRENT ASSET INCLUDE:- - Stock – finished goods - Work – in – Progress - Raw materials - Debtors or accounts receivables - Cash & Bank balance - Prepayments
  • 44. FICTITIOUS OR INTANAGIBLE ASSESTSFICTITIOUS OR INTANAGIBLE ASSESTS INCLUDE:INCLUDE: - Goodwill - Patent Rights, trade marks - Deferred charges etc
  • 45. The focus of this section is on management of fixed assets especially, plants, machinery,building and equipment. WHAT ARE FIXED ASSETS? Fixed assets are those assets that are used or whose consumption is spread over the years they include the following: - Land and building - Plant and machinery - Office furniture and equipment - Office fixtures and fittings - Motor vehicles etc
  • 46. WHY THE NEED TO MANAGE FIXED ASSETSWHY THE NEED TO MANAGE FIXED ASSETS i In some organization fixed assets constitute about 50% of the total assets which has serious implications for the survival of the firm. ii Fixed assets are part of the yard stick used against sales to measure returns on investment. iii in manufacturing organization equipment and machinery management determines the optimal performance of the outfit or venture. ivit creates good working environment for workers which in turn increases productivity.
  • 47. MEASURING MENAGEMENT ANDMEASURING MENAGEMENT AND MAINTENANCEMAINTENANCE EFFECTIVENESS O F FIXEDEFFECTIVENESS O F FIXED ASSETSASSETS What does measurement imply here? What is effectiveness? What is the principle of a good maintenance culture. To measure means to discover the exact effect size or amount of something To measure also means to find as good as a thing is, ought to be or the goodness of fit To measure means to evaluate It also means to appraise or to put the right value on something.
  • 48. To measure also involves finding the extent ofTo measure also involves finding the extent of efficient progress made in something or if theefficient progress made in something or if the maintenance or service is rewarding or notmaintenance or service is rewarding or not PROFITABILITY MEASURES (RATIOS) IN RELATION TO ASSETS i ROTA: Return on Total Assets = P.A.T capital employed ii RONA: Return on Net Assets = P.A.T NET Assets Iii ROFA: Return on Fixed Assets= P.A.T Fixed Assets
  • 49. This measures or ratios show how many times assets – (total, fixed and net assets are turned over as a result of good asset management. The industrial average for assets turnover is three (3) times per year. Therefore if the results of your ROTA, RONA, and ROFA are less than 3 times per year it is an indication of poor asset management and maintenance.
  • 50. ASSET UTILIZATION MEASURES (ACTIVITYASSET UTILIZATION MEASURES (ACTIVITY RATIOS)RATIOS) i EBIT TO TOTAL ASSETS = EBIT TA ii SALES TO TOTAL ASSETS = SALES TA iii RETAINED EARNING TO = RETAINED EARNINGS TA iv TOTAL DEBT TO TOTAL ASSETS = TOTAL LIABILITIES TA Here the first three ratios show how you are managing the assets of the company, while the last show total debt to capital employed.
  • 51. PRINCIPLES OF GOOD MAINTENANCEPRINCIPLES OF GOOD MAINTENANCE MANAGEMENT CULTURE.MANAGEMENT CULTURE. • ECONOMY: Economy is about seeking to avoid wastage of resources in maintenance of plant, equipment and machinery • EFFICIENCY: Efficiency in maintenance culture is about using the least possible to achieve the best possible. • EFFECTIVENESS: Effectiveness is about applying the culture of good maintenance in available resources in such a way as to lead to the desired results.
  • 52. MANAGERIAL SKILLS ANDMANAGERIAL SKILLS AND COMPETENCIES FOR MANAGERSCOMPETENCIES FOR MANAGERS 1. Conceptual Skill:  The ability to constructively view your organisation and the situations, the threats, and opportunities.  Analytical ability drawn from ones mental capacities to identify problems and offer solutions.  The ability to gather data, classify, harmonize and interpretation of relevant information.  The ability to develop good problem-solving decision that serve your organizations purpose.
  • 53. CONT’DCONT’D 2. Technical Skill  The ability to apply specialized knowledge or expertise to perform a job or assigned duties.  It involves being highly proficient at using selected methods processes, and procedures to accomplish tasks and to meet deadlines.  Technical skills are acquired through formal and informal education, or learned through appropriate work training and on-the-job experiences.
  • 54. CONT’DCONT’D 3. Human Relations Skill  The ability to work well in cooperation with others.  Development of the spirit of trust, enthusiasm and genuine involvement in interpersonal relationships.  High degree of self-awareness and a capacity for understanding or empathizing with the feelings of others (co-workers)  It is an essential skill for managers networking responsibilities.
  • 55. Value-Added Managers AreValue-Added Managers Are Organisational AssetsOrganisational Assets Are you an asset or liability to your organisation? Are you impacting positively on your organization? - World-class managers add value constantly to their organization. - World-class organizations want value-added managers. - Managers whose efforts clearly enable their work units to achieve high productivity and improve “bottom-line” performance.
  • 56. CONT’DCONT’D - Value-added managers create high performance system in which individuals and groups work well together, to the benefit of the entire organisation and its clients or customers. - Value-added managers are the most likely to reap the reward of satisfying careers. - In periods of organizational restructuring workforce, value-added managers will have little or no trouble in justifying their jobs.
  • 57. The Dual Manager’s Challenge inThe Dual Manager’s Challenge in the Management Processthe Management Process The manager may serve in two capacities simultaneously, that’s the duality of the challenge. I. As the head of a work unit or department. II. As a subordinate in another situation. III. The manager is held “accountable” by higher level superiors for work unit results. IV. The manager is also “dependent” on the efforts of others (subordinates) to make these results possible. V. In the new work environment, the manager must meet and exceed customer expectations for high quality and service standards. VI. Much of the manager’s time is spent dealing with the stresses and strains of simultaneously meeting the demands of upward accountability and downward dependency.
  • 58. MANAGERIALMANAGERIAL BLINDNESSBLINDNESS John Gardner at one time said; that most ailing organisations have developed functional blindness to their own defects; they are not suffering because they cannot resolve their problems, but because they cannot see their problems.
  • 59. CONT’DCONT’D Managers and leaders should know clearly that: “Carrot and Stick”- (motivation) is animal psychology-it is known as – “The Jackas Theory”-it is old paradigm. People have the power to choose, you can buy someone’s back, but not his heart and mind. You can buy his hands, but not his spirit-(The New Paradigm). Harold S. Greneen, former chairman of ITT. of UK said….
  • 60. CONT’DCONT’D The best way to inspire and lead people to a superior performance is to convince them by everything you do and by your everyday actions & attitude that you are committed whole heartedly to prudent resource management. THE ADVICE - Be an original copy, and embodiment of true leadership, a legacy in management style and a solution in the system not the problem!.Make use of MBO but avoid........... MBG,MBS & MBH or MBI that brings failure!
  • 61. How do we Manage Green ProductivityHow do we Manage Green Productivity Law of Ecology -Law of Ecology - ““ Nothing comes from nowhereNothing comes from nowhere Everything comes from Somewhere”Everything comes from Somewhere” ““ Nothing ever goes awayNothing ever goes away Everything goes somewhere”Everything goes somewhere”
  • 62.
  • 64. HOW SAFE ARE THE POLITICAL, SOCIAL & ECONOMIC ENVIRONMENT & THE ROLE OF GOVT. IN PROTECTING THE PUBLIC FROM ROBBERS,KILLERS KIDNAPPERS & MILITANTS
  • 65.
  • 66. SCENE OF MASS BURIALAFTERSCENE OF MASS BURIALAFTER RECENT COMMUNITY CRISIS INRECENT COMMUNITY CRISIS IN NIGERIA-NEXT SLIDENIGERIA-NEXT SLIDE ““ NoNo crisis or pollutioncrisis or pollution comes fromcomes from NNowhereowhere EveryEvery crisis/Pollutioncrisis/Pollution comes fromcomes from Somewhere”Somewhere” How securedHow secured is our environment?is our environment?
  • 67.
  • 68. FOR EFFICIENT MANAGEMENTFOR EFFICIENT MANAGEMENT OF RESOURCESOF RESOURCES THERE ARE SIX (6) GIRLS FROM OUR 6 GEOPOLITICAL ZONES YOU MUST AVOID TOTALLY! DO YOU KNOW THE NAMES OF THESE GIRLS? (THEY ARE ALL NIGERIANS)
  • 69. THE NAMES OF THE GIRLS ARE:THE NAMES OF THE GIRLS ARE: MISS-INFORMATION MISS-CONCEPTION MISS-CALCULATION MISS-CONDUCT MISS-APPROPRIATION & MISS-MANAGEMENT
  • 70.
  • 71. REFRENCESREFRENCES • Donnelly, J.H. Jr Etal (1992) Fundamentals of Management: Irwin, Homewood Boston M.A. • Adams, F.P. & Cox J.F. (1985) Manufacturing Resource Planning: An Information System Model • Eugene F.F. (1990) “Use Technology to Reduce Manufacturing Costs”: The Journal of Business Strategy • Financial Management by Pandy Olowe (1997): Financial Management and Concept Analysis