To select a resource, start from what the business needs to do, then check which option can do it at a cost the business can carry. The choice follows the need, not the other way round.
This lesson is part of SPM Business physical and technological resources. The next lesson, explaining maintenance and resource management, covers looking after what you choose.
What are the four steps?
- Need: what output or task is required, and by when.
- Options: two or three resources that could do it.
- Criteria: capacity, cost, reliability, space, skills needed.
- Choice: the best fit, with the reason and one risk.
Write the need in numbers when the case allows.
How does it work in one case?
Dapur Kak Mah must bake 200 cupcakes a day in a four-hour morning window. Oven A holds 40 cupcakes per batch and each batch takes 30 minutes. Oven B holds 20 cupcakes per batch, also 30 minutes.
Batches in four hours: 4 × 60 ÷ 30 = 8 batches. Oven A output: 8 × 40 = 320 cupcakes. Oven B output: 8 × 20 = 160 cupcakes.
The need is 200. Oven B gives 160, so it falls short. Oven A meets the need with 120 cupcakes to spare.
What does a justified choice sound like?
A list says, “Kak Mah can use Oven A or Oven B.” A justified choice says, “Kak Mah should choose Oven A, because it can bake 320 cupcakes in the four-hour window and her need is 200, while Oven B reaches only 160. Oven A probably costs more, so she should check that the spare capacity is worth the price.”
The answer compares numbers, names the cost risk and keeps the reason tied to the case.
Which mistakes cost marks?
- Choosing the cheapest resource without checking it meets the need.
- Naming a resource’s features with no link to the need.
- Ignoring running costs, such as electricity or repairs.
A quick fix: write the need as a number before looking at the options.
Check yourself
A fictional printing shop must print 600 pages an hour. Printer X prints 12 pages a minute. Printer Y prints 8 pages a minute. Which meets the need?
Answer
Printer X: 12 × 60 = 720 pages an hour. Printer Y: 8 × 60 = 480 pages an hour. The need is 600, so Printer X meets it and Y does not. The shop should still check X’s price and ink cost before buying.
What to study next
Continue with explaining maintenance and resource management, then try the practice set. Lay out your case answers with the business case answer planner.
If you want a teacher to test your choices on new cases, see online one-to-one Business tuition.