Elements and Performance Criteria

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.

Operational strategies and proceduresmay be determined by:
business premises (size, location, layout)
financial control systems and procedures
management and administrative systems and procedures
methods/techniques/technology
physical and natural resources
plant and equipment , including OHS requirements
premises, plant and equipment, which may be new or previously owned
purchase (sole or shared ownership) or leasing
raw materials
requirements, which may be oneoff requirements or recurrent requirements (such as equipment maintenance) specific to the nature of the business
technology
environmentally sustainable principles of business operation
use of existing, new and emerging technologies including ecommerce.
Business goals and objectivesmay include:
customer needs/marketing projections
family or community benefits
financial projections
goals, objectives, plans, systems and processes
lifestyle issues
proposed size and scale of the business, market focus of the business
short, medium or longterm goals
social responsibility.
Occupational health and safety and environmental issuesmust include:
controls, which may include instructions to workplace personnel concerning site hazards and controls, material safety data sheets, use of personal protective equipment, vehicle access, signs and barricades, traffic control, outside contractors
establishment and maintenance of procedures for assessing and controlling risks
establishment and maintenance of procedures for identifying risks to health and safety
environmentally sustainable purchase and supply of goods and services
waste and byproducts.
Quality systemmay include:
manual or computer quality control systems
quality assurance/management approaches
random inspections and assessments of goods and services against predetermined standards
random inspections and assessments of processes against predetermined standards
random sampling and followup of customers.
Operational targetsmay include:
external targets, which may relate to market share and positioning and may involve exploring new markets, building national or international trade links
internal targets, which may relate to size, quality, quantity and diversity, wages to sales, sales to area/stock levels/stock turnover/average debtor payment periods and levels
staffing level and skills mix
targets, which may be short, medium or longterm.
Technical standardsmay include:
current and generally agreed descriptions of what the product/service is, how it should be produced/delivered and the environmental sustainability, quality, safety, efficiency or other measures to determine the activity is done effectively.

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

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
developing strategies and procedures to successfully manage the operation of the business
making appropriate adjustments to the business operations as required
knowledge of quality system principles and methods.
Context of and specific resources for assessment
Assessment must ensure:
access to relevant documentation
candidate’s individual circumstances and work in the context of running a small business, are the basis for assessment.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
portfolio of evidence including operational strategies and procedures
oral or written questioning to assess knowledge of principles of risk management relevant to the business, including risk assessment
review of analysis of operating problems (establishing causes and implementing changes as required as part of the business quality system)
review of records proposing changes to the business operations.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
BSBSMB406A Manage small business finances
BSBSMB407A Manage a small team.