This unit describes the skills and knowledge for the analysis of a process to determine loss of resources by the application of the first law of thermodynamics (more commonly known as mass and energy balancing). It includes the selection of mass or energy balancing or both as appropriate to the type of processes being examined and may be applied to an entire process, part of a large process, or part or all of a value chain.This unit applies to the analysis of a mass (material) and energy (usually heat or motive force) flows through a process to determine overall mass and energy efficiency, losses which occur through the process and how much loss occurs in each part of the process. This is achieved by the application of the techniques of mass balancing, energy balancing and combined mass and energy balancing. The application of this unit is especially suitable where high volumes of materials or large amounts of energy are used in a production process. The unit may also apply to other large energy or materials use processes in the value chain, such as logistics and transport.This unit will lead to the identification of parts of the process which have the greatest resource loss or lowest resource use efficiency and so provides the basis for eliminating or reducing this loss and improving this efficiency. This unit applies to a manager or senior technologist who has significant responsibility for sustainability in their work role. Skills covered by this unit may be applied individually or in a team context.No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.