Unit of competency Outline

Date retreived
23/07/2026 4:34 AM AWST

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Prepare a simple cost estimate for a manufactured product

Prepare a simple cost estimate for a manufactured product

Unit of competency
National Code
MEM30023A
State Code
W5439
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/12/2005
State Implementation and Classification
Approved Date
19/08/2014
Field of Education
010101 - Mathematics
Original Release Date
19/08/2014
Nominal Hours
40
Description
This unit covers applying basic principles and concepts associated with the preparation of a cost estimate for a product.
Notes
Elements and Performance Criteria
1. Obtain tender/cost estimate requirements
  • 1.1. Tender/cost estimate brief is obtained within established organisational framework, procedures and routines.
  • 1.2. Key requirements are identified.
  • 1.3. Assistance/approval from supervisor is obtained.
2. Prepare a simple cost estimate
  • 2.1. Relevant costing data is identified and interpreted from the tender/cost estimate documents.
  • 2.2. Organisational production costs are obtained.
  • 2.3. Cost estimates are prepared according to established organisational framework, procedures and routines.
  • 2.4. Assistance/approval from supervisor is obtained.
3. Verify cost estimate
  • 3.1. Actual cost information is sourced from a completed tender/cost estimate project.
  • 3.2. Actual costs are compared with estimated cost to identify deviations.
  • 3.3. A report is prepared for supervisors to explain deviations according to established organisational framework, procedures and routines.
  • 3.4. Assistance/approval from supervisor is obtained.
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Simple cost estimate
Based on known production and material costs
Cost can be estimated using a limited number of variables
Estimate relates to a discrete product with a limited number of operations for manufacture
Tender/cost estimate brief
May include project guidelines and instructions, internal or external requirements, information from tender/contract documents, drawing specifications
Key requirements
May include timing, budget, resources, output, special conditions
Deviations
Reported as fractions or percentages, does not include standard deviations, six sigma etc.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
A person who demonstrates competency in this unit must be able to prepare a simple cost estimate for a manufactured product.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria, including required knowledge, and be capable of applying the competency in new and different situations and contexts.
Context of and specific resources for assessment
This unit may be assessed on the job, off the job or a combination of both. Where assessment occurs off the job, i.e. the candidate is not in productive work, an appropriate simulation must be used where the range of conditions reflects realistic workplace situations. The competencies covered by this unit would be demonstrated by an individual working alone or as part of a team. The assessment environment should not disadvantage the candidate.
This unit could be assessed in conjunction with any other units addressing the safety, quality, communication, materials handling, recording and reporting associated with preparing a simple cost estimate for a manufactured product, or other units requiring the exercise of the skills and knowledge covered by this unit.
Method of assessment
Assessors should gather a range of evidence that is valid, sufficient, current and authentic. Evidence can be gathered through a variety of ways including direct observation, supervisor's reports, project work, samples and questioning. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. The candidate must have access to all tools, equipment, materials and documentation required. The candidate must be permitted to refer to any relevant workplace procedures, product and manufacturing specifications, codes, standards, manuals and reference materials.
Guidance information for assessment
Replaced By
State Code National Code Title Type
OEV02 MEM30023 Prepare a simple cost estimate for a manufactured product Unit of competency