Unit of competency Outline

Date retreived
23/07/2026 7:41 AM AWST

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Analyse machinery options

Analyse machinery options

Unit of competency
National Code
AHCMOM601A
State Code
D7033
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/06/2011
View on TGA
State Implementation and Classification
Approved Date
25/06/2014
Field of Education
080321 - Farm Management And Agribusiness
Original Release Date
25/06/2014
Nominal Hours
35
Description
This unit covers the analysis of machinery options within an agricultural, horticultural or land management enterprise and defines the standard required to: calculate the total running cost of machinery; review the machinery needs of the enterprise and evaluate costed alternative options; budget the calculated rate of return on investments using benchmarks of energy efficiency; compare the productivity and suitability of different types and brands of machinery; analyse the financial costs, tax impact and investment risk for different types of machinery; document the analysis and define the preferred option; and review the investment plan and analysis of options.
Notes
Elements and Performance Criteria
1. Calculate costs associated with machinery and use to assist decision making
  • 1.1. Overhead, operating and intangible costs related to machinery are calculated.
  • 1.2. Relevant benchmark data that relates machinery costs to enterprise productivity is sourced and compared to own enterprise data.
  • 1.3. Comparison of productivity and suitability of different types and brands of machinery is made.
2. Review machinery requirements
  • 2.1. Machinery inventory is reviewed in the context of the goals of the business, and current and future productivity and profitability levels.
  • 2.2. Alternatives to ownership are identified, costed and evaluated.
  • 2.3. Tax impact of the capital investment is identified through appropriate professional support and incorporated into the analysis.
  • 2.4. Risks associated with high capital investment in machinery are assessed and controlled in making machinery decisions.
3. Analyse returns from major capital investments in machinery
  • 3.1. Capital budgeting techniques including energy efficiency are used to calculate the rate of return on major investment decisions.
  • 3.2. Plan and analysis of machinery options are reviewed and refinements are recorded.
RANGE STATEMENT
The range statement relates to the unit of competency as a whole.
The factors may include:
the range of farming systems
financing arrangements
machinery types
budgeting variables, including energy efficiency
machinery ownership options.
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

Critical aspects for assessment and evidence required to demonstrate competency in this unit
The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:
calculate the total running cost of machinery
review the machinery needs of the enterprise and evaluate costed alternative options
budget the calculated rate of return on investments using benchmarks of energy efficiency
compare the productivity and suitability of different types and brands of machinery
analyse the financial costs, tax impact and investment risk for different types of machinery
document the analysis and define the preferred option
review the investment plan and analysis of options.
Context of and specific resources for assessment
Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.
Replaces
State Code National Code Title Type
S3386 RTE6301A Analyse machinery options Unit of competency
Replaced By
State Code National Code Title Type
BAR76 AHCMOM601 Analyse machinery options Unit of competency