Elements and Performance Criteria

The Range Statement provides advice to interpret the scope and context of this unit of competency, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Unit scope

Work involves the estimating and costing of production and products in a significant mass production environment

Work may involve referral of matters to other enterprise personnel

Unit context

OH&S requirements include legislation, building codes, material safety management systems, hazardous substances and dangerous goods codes and safe operating procedures

Work is carried out in accordance with legislative obligations, environmental legislation, relevant health regulations, authorised handling procedures and organisation insurance requirements

Work requires individuals to demonstrate organisational and administrative ability, discretion, judgement and problem solving skills

Workplace environment

Work undertaken in accordance with established procedures involving a range of products, equipment and installation sites

Interaction with customers and other personnel from the operator's workplace

Use of relevant tools, equipment and resources, including:

measuring equipment

product sales literature

product samples

Overhead costs

Overheads may be calculated for a specific product or be a constant component based on historical records and may include such costs as rental/lease costs, utilities, non-production resources, depreciation of plant and equipment, warehousing margins, physical distribution unit costs, insurance and other costs incurred by doing business

Information and procedures

Enterprise production plan and schedule

Enterprise financial management policy and procedures

Enterprise policy and procedures for cost and apportioning overheads

Labour employment costs (awards, EBA, contracts)

Material/supply costs (contracts, standing agreements, market rates, warehousing margins)

Physical distribution contracts or arrangements

Australian, international and enterprise quality standards and procedures

The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for this unit. This is an integral part of the assessment of competency and should be read in conjunction with the Range Statement.
Critical Aspects of Evidence
Apply safety requirements throughout the work sequence, including the use of personal protective clothing and equipment
For a significant mass production operation, determine the production and product costs using the following or equivalent steps:
obtain all information relevant to the determination of costs
interpret plans, specifications and instructions for production and materials to be used
estimate quantities of materials required
determine the types and amount of labour required to complete the work
estimate time required to complete the work
determine/calculate overheads
document the process and outcomes
Work effectively with others

Underpinning Knowledge
Production systems documentation processes
Enterprise costing procedures
Mathematical formulae and processes relevant to costing
Components of labour costs
Enterprise/commercial approach to overhead costs
Enterprise/commercial approaches to warehousing and physical distribution costs
Enterprise information management processes, including storage requirements

Underpinning Skills
Information. Research, collect, organise and understand information related to production costing including the relevant technical, commercial, industrial and accounting requirements
Communication. Communicate ideas and information to enable clarification of the production and related requirements and to present the outcomes in an appropriate manner
Planning. Plan and organise activities to avoid back tracking and reworking of solutions
Teamwork. Work with others and in a team by recognising dependencies and using cooperative approaches to optimise workflow and productivity
Mathematical ideas and techniques. Use mathematical ideas and techniques to correctly estimate and validate labour, materials and on-costs and calculate production costs
Solve problems. Create and apply systematic problem solving techniques to anticipate costing problems, avoid reworking and avoid wastage
Use of technology. Use the workplace technology related to costing, including calculators and measuring devices and computing/computer-aided systems

Resource Implications
Access is required to real or appropriately simulated situations involving estimation and costing of production operations and products.
Access is required to specifications and costs of relevant equipment and materials and information on labour costs and availability, on costs, safety costs, regulations, quality standards, and enterprise procedures.
Access is required to all necessary facilities and associated equipment, including calculators, computers and relevant software.

Method of Assessment
Assessment methods must confirm consistency or the potential for consistency of performance over time and in a range of workplace relevant contexts.
Assessment should be by direct observation of performance and samples of work outcomes and questioning on underpinning knowledge.
Assessment may be conducted over time and may be in conjunction with assessment of other units of competency.

Context of Assessment
Assessment may occur on the job or in a simulated workplace facility with a relevant scenario, simulated work instructions and deadlines.

Key Competency Levels
NB:These levels do not relate to the Australian Qualifications Framework. They relate to the seven areas of generic competency that underpin effective workplace practices.
There are three levels available:
Level 1 where work is within set conditions and process
Level 2 where the management or facilitation of conditions or process is exercised; and
Level 3 where the design and/or development of conditions or process is required
Communicating ideas and information
(2)

Collecting analysing and organising information
(2)

Planning and organising activities
(2)

Working with others and in teams
(2)

Using mathematical ideas and techniques
(2)

Solving problems
(3)

Using technology
(2)