ICPSUP553
Prepare production costing estimates


Application

This unit describes the skills and knowledge required to cost and estimate production processes.

It applies to individuals who perform a broad range of skilled tasks relating to the printing and graphic arts industry, and may also provide leadership and guidance to others in the application and planning of the skills.

No licensing, legislative or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify costing estimate requirements

1.1 Labour hours, times and other statistics required are identified and applied in calculations

1.2 Available machine hours are identified and applied in calculations

1.3 Economical batch sizes are identified

1.4 Material requirements are identified and applied in calculations

2. Prepare costing estimates

2.1 Costing estimates are calculated using material, labour and machine costs

2.2 Cost estimate details are calculated

3. Compare estimates with actual costs

3.1 Actual costs are compared with estimates

3.2 Costing basis is adjusted as appropriate

Evidence of Performance

Evidence of the ability to:

prepare an estimate of production costs that takes into account labour, machine and material requirements

compare estimated costs against actual cost and adjust costing methods, if required.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.


Evidence of Knowledge

To complete the unit requirements safely and effectively, the individual must:

Statutory requirements

outline the legal requirements that affect costing of operations

Production processes and operations

describe information required before costing/estimating can be done accurately

describe the references and resources on materials and suppliers required to help in costing/estimating

explain how choice of materials affects cost

list ways of minimising production costs on any given job

explain the relationship between costing and set up and changeover times for processes

Different costing/estimating methodologies

explain why a particular costing/estimating method was chosen

outline alternative methods and when it might be appropriate to use them

describe factors that might be adjusted in the estimations if they consistently do not match costs

Sampling and quality control techniques

describe effects that quality control has on costing

Production records

describe why it is necessary to keep accurate production records

outline how often a review of production records against actual costs should occur

identify production monitoring systems that can be used to accurately assess costs.


Assessment Conditions

Gather evidence to demonstrate consistent performance in conditions that are safe and replicate the workplace. Noise levels, production flow, interruptions and time variances must be typical of those experienced in the Support field of work and include access to:

an environment that allows the preparation of production costing estimates and actual costs

appropriate sources of production data

suitable equipment and tools to assist with calculations.

Assessors must satisfy NVR/AQTF assessor requirements.


Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill

Performance Criteria

Description

Reading

1.1, 1.2, 1.4, 2.1, 2.2, 3.1, 3.2

Recognises text within job specifications and work processes related to outcomes of the job

Writing

1.1-1.4, 2.1, 2.2, 3.1, 3.2

Uses factual information and industry related terminology to complete required workplace documentation

Numeracy

1.1-1.4, 2.1, 2.2, 3.1, 3.2

Uses mathematical calculations and techniques to deal with numerical information, and prepare estimates and costing models

Get the work done

1.1-1.4

Takes responsibility for gathering information required to perform estimates


Sectors

Support