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Elements and Performance Criteria

1. Gather information
   • Details of the particular service and competition services are obtained
   • Details of the proposed service requirements are obtained and analysed
   • Labour unit cost projections are obtained and agreed
   • Logistic support contracts, supply agreements or equivalent are obtained and analysed
   • Details of proposed warehousing and physical distribution systems and related cost factors are obtained
   • Information is converted to usable form and stored ready for retrieval and application
2. Estimate materials and labour
   • Types and quantities of materials required for the service are estimated and documented
   • Time requirements for work activities and other lead times are estimated
   • Labour requirements for direct services and related operations are estimated and documented
3. Determine/calculate overheads
   • Components contributing to overhead costs are identified
   • Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified
4. Calculate costs
   • Total materials costs and labour costs are calculated in accordance with enterprise procedures
   • Total service cost, including overheads is calculated
   • Final cost to customer is calculated, if necessary, in conjunction with accounting persons
5. Document details and verify where necessary
   • Details of costs and charges are documented in accordance with enterprise practice
   • Costs, calculations or other details are verified by other enterprise persons
   • Details are documented for future reference in accordance with enterprise practice

Required Skills

Evidence Required

The Evidence Guide identifies critical aspects knowledge and skills to be demonstrated to confirm competence for this unit This is an integral part of the assessment of competence 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 Calculate the total costs of work for a significant nonroutine service involving a number of tradespersons and without the aid of standard service costing schedules using the following or equivalent steps obtain information relevant to the determination of costs interpret proposals specifications and instructions for the work estimate quantities of materials required determine the types and amount of labour required to complete the work estimate time required to complete the work determinecalculate overheads document the process and outcomes Work effectively with others

Underpinning knowledge	General knowledge of work systems documentation processes General knowledge of enterprise costing procedures Detailed knowledge of mathematical formulae and processes relevant to costing General knowledge of components of labour costs General knowledge of enterprisecommercial approach to overhead costs General knowledge of enterprisecommercial approaches to warehousing and physical distribution costs General knowledge of enterprise information management processes including storage requirements Detailed knowledge of the processes for identifying apportioning summarising and validating total costs for work
Specific key competencies underpinning and employability skills required to achieve the performance criteria	These include a number of processes that are learned throughout work and life which are required in most jobs Some of these are covered by the national key competencies although others may be added The details below highlight how these competencies are to be applied in the attainment of this unit Application of the key competencies in this unit are to satisfy the nominated level in which Level relates to working effectively within set conditions and processes Level relates to management or facilitation of conditions or processes and Level relates to design development and evaluation of conditions or process How will the candidate apply the following key competency in this unit The candidate will need to
Collect analyse and organise information	Collect organise and understand information related to service costing including technical commercial industrial and accounting requirements Level

Communicate ideas and information	Communicate ideas and information to enable clarification of the work and related requirements and to present the outcomes in an appropriate manner Level
Plan and organise activities	Plan and organise activities to avoid backtracking and reworking of solutions Level
Work with others and in a team	Work with others and in a team by recognising dependencies and using cooperative approaches to optimise workflow and productivity Level
Use mathematical ideas and techniques	Use mathematical ideas and techniques to estimate and validate labour materials and oncosts and calculate work costs Level
Solve problems	Create and apply systematic problemsolving techniques to anticipate costing problems avoid reworking and avoid wastage Level
Use technology	Use the workplace technology related to costing including calculators and measuring devices and computing computeraided systems Level
Context of assessment	Assessment may occur on the job or in a workplace simulated facility with process equipment materials work instructions and deadlines

Method of assessment	Assessment methods must confirm consistency of performance over time and in a range of workplace contexts Assessment should be by direct observation of tasks and questioning on underpinning knowledge Assessment should be conducted over time and may be in conjunction with assessment of other units of competence
Specific resource requirements for this unit	Access is required to real or appropriately simulated situations involving estimation and costing of service operations Access is required to specifications and costs of equipment and materials and information on labour costs and availability oncosts safety costs regulations quality standards and enterprise procedures Access is required to necessary facilities and associated equipment including calculators computers and software

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Range Statement

The Range Statement provides advice to interpret the scope and context of this unit of competence, 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 total costing of automotive services (repair, maintenance and/or modification) for significant and non-routine activities involving a number of tradespersons and for which costing schedules are not available
Unit context	OH&S requirements include legislation, vehicle industry regulations, safety management systems, hazardous substances and dangerous goods code and safe operating procedures Work is carried out in accordance with legislative obligations, Australian Design Rules, environmental legislation, health regulations, manual handling procedures and organisation insurance requirements Work requires individuals to demonstrate research, analytical, judgement and problem-solving skills in the diagnosis of faults
Overhead costs	Overheads may be calculated for a specific service 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, warehousing costs, insurance and other costs incurred by doing business

Information and procedures	Enterprise or equivalent financial management policy and procedures Enterprise or equivalent policy and procedures for cost and apportioning overheads Labour employment costs (awards, EBA, contracts) Material/supply costs (catalogues, contracts, standing agreements, market rates, warehousing margins) Australian, international and enterprise quality standards and procedures

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