This unit involves the diagnosis and calculation of production costs in a forest products factory setting

The skills and knowledge required for competent workplace performance are to be used within the scope of the person's job and authority

ELEMENT

PERFORMANCE CRITERIA

1. Gather and diagnose information

1.1. Applicable Occupational Health and Safety (OHS), environmental, legislative and organisational requirements relevant to diagnosing and calculating production costs are identified and followed

1.2. Details of the particular product and competitor'sproducts are obtained

1.3. Details of the proposed production operation are obtained and analysed

1.4. Labour unitcost projections are obtained and agreed

1.5. Logistic support contracts, supply agreements or equivalent are obtained and analysed

1.6. Details of proposed warehousing, physical distribution systems and related cost factors are obtained

1.7. Communication with others is established and maintained in line with OHS requirements

2. Estimate materials and labour

2.1. Types and quantities of material required for production are estimated and recorded

2.2. Time requirements for production activities and other lead times are estimated

2.3. Labour requirements for direct production and handling operations are estimated and recorded

3. Calculate costs and overheads

3.1. Components contributing to overhead costs are determined

3.2. Overhead costs to be attributed to work in line with commercial and organisational procedures are determined

3.3. Total materials and labour costs are calculated in line with organisational procedures

3.4. Total production cost is calculated, including overheads and mark-up percentages

3.5. Final cost to customer is calculated in conjunction with marketing and sales personnel

3.6. Cost calculation processes and problems are recorded and reported to appropriate personnel

4. Check and document details

4.1. Details of costs and charges are documented in line with organisational practice

4.2. Costs, calculations or other details are checked by other organisational personnel

4.3. Details are documented for future reference in line with organisational practice

This describes the essential skills and knowledge and their level required for this unit

Required skills

Technical skills sufficient to use and maintain relevant tools, machinery and equipment, safely diagnose and calculate production costs

Communication skills and interpersonal techniques sufficient to interact appropriately with colleagues and others in the workplace

Literacy skills sufficient to accurately record and report workplace information, and maintain documentation

Numeracy skills sufficient to estimate and calculate costs for materials, labour and overheads

Problem solving skills sufficient to identify problems and equipment faults and demonstrate appropriate response procedures

Required knowledge

Applicable Commonwealth, State or Territory legislation, regulations, standards and codes of practice relevant to the full range of processes for diagnosing and calculating production costs

Environmental protection requirements, including the safe disposal of waste material, the safe use and storage of chemicals, minimising carbon emissions and the cleaning of plant, tools and equipment

Organisational and site standards, requirements, policies and procedures relevant to diagnosing and calculating production costs

Environmental risks and hazards

Using energy effectively and efficiently

Using material effectively and efficiently

Material and labour costs

Overhead costs

Production and associated costs

Construction methods and construction standards

Established communication channels and protocols

Problem identification and resolution strategies and common fault finding techniques

Types of tools and equipment and procedures for their safe use, operation and maintenance

Appropriate mathematical procedures for estimating and measuring, including calculating time to complete tasks

Procedures for recording and reporting workplace information

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 provide evidence that they can safely and effectively diagnose and calculate production costs within organisational requirements

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 and satisfy all of the requirements of the elements of this unit and include demonstration of:

following applicable Commonwealth, State or Territory legislative and regulatory requirements and codes of practice relevant to diagnosing and calculating production costs

following organisational policies and procedures relevant to diagnosing and calculating production costs

effective communication and safe working practices

diagnosing and calculating production costs in line with organisational requirements

Context of and specific resources for assessment

Competency is to be assessed in the workplace or realistically simulated workplace

Assessment is to occur under standard and authorised work practices, safety requirements and environmental constraints

Assessment of required knowledge, other than confirmatory questions, will usually be conducted in an off-site context

Assessment is to follow relevant regulatory or Australian Standards requirements

The following resources should be made available:

workplace location or simulated workplace

materials and equipment relevant to undertaking work applicable to this unit

specifications and work instructions

Method of assessment

Assessment must satisfy the endorsed Assessment Guidelines of the FPI11 Training Package

Assessment methods must confirm consistency and accuracy of performance (over time and in a range of workplace relevant contexts) together with application of required knowledge

Assessment must be by direct observation of tasks, with questioning on required knowledge and it must also reinforce the integration of employability skills

Assessment methods must confirm the ability to access and correctly interpret and apply the essential required knowledge

Assessment may be applied under project-related conditions (real or simulated) and require evidence of process

Assessment must confirm a reasonable inference that competency is able not only to be satisfied under the particular circumstance, but is able to be transferred to other circumstances

Assessment may be in conjunction with assessment of other units of competency

The assessment environment should not disadvantage the candidate

Assessment practices should take into account any relevant language or cultural issues related to Aboriginality, gender or language backgrounds other than English

Where the participant has a disability, reasonable adjustment may be applied during assessment

Language and literacy demands of the assessment task should not be higher than those of the work role

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.

OHSrequirements:

are to be in line with applicable Commonwealth, State or Territory legislation and regulations, and organisational safety policies and procedures, and may include:

personal protective equipment and clothing

safety equipment

first aid equipment

fire fighting equipment

hazard and risk control

fatigue management

elimination of hazardous materials and substances

safe forest practices including required actions relating to forest fire

manual handling including shifting, lifting and carrying

Environmental requirements may include:

legislation

organisational policies and procedures

workplace practices

Legislative requirements:

are to be in line with applicable Commonwealth, State or Territory legislation, regulations, certification requirements and codes of practice and may include:

award and enterprise agreements

industrial relations

Australian Standards

confidentiality and privacy

OHS

the environment

equal opportunity

anti-discrimination

relevant industry codes of practice

duty of care

Organisational requirements may include:

legal

organisational and site guidelines

policies and procedures relating to own role and responsibility

quality assurance

procedural manuals

quality and continuous improvement processes and standards

OHS, emergency and evacuation procedures

ethical standards

recording and reporting requirements

equipment use and maintenance and storage requirements

environmental management requirements (waste minimisation and disposal, recycling and re-use guidelines)

Products may include:

pallets

crates

trellises

trusses

stairs

doors

windows

frames

beams

Competitor's products:

are products that compete directly with those produced by the organisation

Labour costs may include:

number of personnel to complete the job

amount of time to complete the job

overtime considerations

overheads

environmental protection requirements

Logistic support contracts are to include:

external companies who provide products and services to assist in the production process

internal sections of the organisation that provide products and services to assist in the production process

Physical distribution systems

are the methods and systems for distributing materials and products to and from the production area and from there to the warehouse or storage area

Communication may include:

verbal and non-verbal language

constructive feedback

active listening

questioning to clarify and confirm understanding

use of positive, confident and cooperative language

use of language and concepts appropriate to individual social and cultural differences

control of tone of voice and body language

Material may include:

native timber species

imported timber species

dressed timber

in-the-rough timber

stress and non-stress graded timber

preservative treated timber

medium density fibreboard

laminated veneer

chipboard,

fibreboard and other manufactured board products

coated and/or treated timber products

beams or laminated beams

Time requirements are to include:

the amount of time required to complete a:

product

task

project

Overhead costs may include:

rental or lease costs

utilities

non-production resources

depreciation of plant and equipment

warehousing margins

physical distribution unit costs

insurance and other costs incurred by doing business

superannuation

sick leave entitlements

leave loading

other staff entitlements

organisational overheads

environmental protection requirements

Mark-up percentage:

is the desired or intended profit margin over and above all costs

Records and reports may include:

product type

size

inspection

grading and labelling outcomes

storage locations

quality outcomes

hazards

incidents or equipment malfunctions

and may be:

manual

using a computer-based system or other appropriate organisational communication system

Appropriatepersonnel may include:

supervisors

suppliers

clients

colleagues

managers

Unit sector

No sector assigned

Timber Manufactured Products and Timber Merchandising

This unit contains employability skills