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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

  1. Obtain tender/cost estimate requirements
  2. Prepare a simple cost estimate
  3. Verify cost estimate

Required Skills

Required skills

Look for evidence that confirms skills in

undertaking numerical operations geometry and calculationsformulae within the scope of this unit

reading interpreting and following information on written job instructions specifications standard operating procedures and other applicable reference documents

undertaking simple report writing

planning and sequencing operations

checking and clarifying taskrelated information

Required knowledge

Look for evidence that confirms knowledge of

overview of the impact on cost estimates of

product manufacture

demand vs capability

makeorbuy

marketdemandpricecompetition

cost control

product costs

materials

resource consumption water power etc

labour

standard timeusage

margins profitloss

using proforma estimate sheets

using estimates as targets

impact of value adding non value adding activities

lead times associated with

raw material availability

equipment tool design and commissioning

prototypes and trial builds

estimating processes

use of contract documents drawings specifications

consideration of general conditions and any special conditions

application of resources costs hourly rates labour plant material subcontractors

contingency costs

allowance for contract variations

hazards and control measures associated with preparing a simple cost estimate for a manufactured product including allowing for housekeeping safe work practices and procedures

Evidence Required

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

A person who demonstrates competency in this unit must be able to prepare a simple cost estimate for a manufactured product

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria including required knowledge and be capable of applying the competency in new and different situations and contexts

Context of and specific resources for assessment

This unit may be assessed on the job off the job or a combination of both Where assessment occurs off the job ie the candidate is not in productive work an appropriate simulation must be used where the range of conditions reflects realistic workplace situations The competencies covered by this unit would be demonstrated by an individual working alone or as part of a team The assessment environment should not disadvantage the candidate

This unit could be assessed in conjunction with any other units addressing the safety quality communication materials handling recording and reporting associated with preparing a simple cost estimate for a manufactured product or other units requiring the exercise of the skills and knowledge covered by this unit

Method of assessment

Assessors should gather a range of evidence that is valid sufficient current and authentic Evidence can be gathered through a variety of ways including direct observation supervisors reports project work samples and questioning Questioning techniques should not require language literacy and numeracy skills beyond those required in this unit of competency The candidate must have access to all tools equipment materials and documentation required The candidate must be permitted to refer to any relevant workplace procedures product and manufacturing specifications codes standards manuals and reference materials

Guidance information for assessment


Range Statement

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.

Simple cost estimate

Based on known production and material costs

Cost can be estimated using a limited number of variables

Estimate relates to a discrete product with a limited number of operations for manufacture

Tender/cost estimate brief

May include project guidelines and instructions, internal or external requirements, information from tender/contract documents, drawing specifications

Key requirements

May include timing, budget, resources, output, special conditions

Deviations

Reported as fractions or percentages, does not include standard deviations, six sigma etc.