List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Gather and diagnose information | 1.1 Obtain details of the particular product and competitors’ products. 1.2 Obtain and analyse details of proposed production operation. 1.3 Access information on labour unit cost projections. 1.4 Source and analyse details of logistic support contracts and supply agreements. 1.5 Access details of proposed warehousing, physical distribution systems and related cost factors. 1.5 Analyse all production cost factors for establishing supply cost. |
2. Estimate materials and labour | 2.1 Estimate and record types and quantities of material required for production. 2.2 Estimate and record lead times and time requirements for production activities. 2.3 Estimate and record labour requirements for direct production and handling operations. |
3. Calculate and document production cost | 3.1 Determine production components contributing to overhead costs. 3.2 Determine type and percentage of overhead costs to be attributed to production in line with commercial and organisational procedures. 3.3 Calculate material, labour and overhead costs to determine total production costs. 3.4 Apply mark-up, in line with organisational procedures, and determine supply cost in conjunction with marketing and sales personnel. 3.5 Document details of calculations and supply cost in line with organisational formats. |
4. Check and document details of production and supply costs. | 4.1 Check costs and calculations against production requirements. 4.2 Report calculation processes and organise checking by relevant personnel for final authorisation. 4.3 Complete and maintain accurate records of production and supply costs in line with organisational procedures. |
A person demonstrating competency in this unit must satisfy all of the elements, performance criteria and foundation skills of this unit. If a specific volume or frequency is not stated below, then evidence must be provided that the following requirements have been performed on at least one occasion:
diagnose and calculate production costs for at least two product ranges selected from this list:
pallets
crates
trellises
stairs
doors
windows
frames
beams
roof trusses
floor systems
wall frames.
A person competent in this unit must be able to demonstrate knowledge of:
competitors’ current products and services and price structure
sources of negotiated cost of supply, contractual arrangements and preferred supplier arrangements
sources of organisational costs for:
materials specific to production operations
labour unit costs specific to production operations
particular construction methods
complying with environmental protection practices
warehousing and distribution
business overheads and how overheads are applied to individual production operations
desired profit margins and appropriate commercial mark-ups to suit market acceptance
organisational procedures for documenting calculations, communicating costs to relevant personnel and maintaining records.
The following resources must be made available:
computers, keyboards and printers
industry current software programs used to calculate and document production and supply costs
comprehensive information about the financial operating costs of a real or simulated business to determine production and supply costs
relevant personnel for the purposes of communicating information
organisational procedures for documenting calculations, communicating costs to relevant personnel and maintaining records.
Competency is to be assessed in the workplace or a simulated environment that accurately reflects performance in a real workplace setting.
Assessor requirements
Assessors must:
hold the appropriate assessor competency standards as outlined in regulations; and
be able to demonstrate vocational competencies at least to the level being assessed; and
be able to demonstrate how they are continuing to develop their VET knowledge and skills as well as maintaining their industry currency and assessor competence.