Application
This unit of competency covers the skills and knowledge required to negotiate and manage design production contracts.
The unit of competency applies to contracts which may include local or overseas supply or production of materials, components, complete products or accessories, used to produce finished design products. It may also be applied to contracts providing distribution and transportation or sales and marketing services.
This unit of competency is applicable to all sectors of the textiles, clothing and footwear (TCF) industry.
Work includes establishing performance standards and monitoring procedures to ensure contract specifications are achieved.
Work may be conducted in small to large scale enterprises and may involve individual and team activities.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. | ||
1 | Establish contract requirements | 1.1 | Identify contract requirements in collaboration with appropriate personnel and workplace procedures |
1.2 | Establish key criteria to define contract parameters | ||
1.3 | Preview previous contracts to guide preparation of contract and selection of contractors | ||
1.4 | Prepare contract detailing required products and/or services and advertise or circulate in relevant media | ||
2 | Confirm contract agreement | 2.1 | Review and shortlist contract applications according to ability to provide goods or services to required standards |
2.2 | Select contract supplier and negotiate and confirm contract agreement | ||
2.3 | Confirm quality and performance standards | ||
2.4 | Confirm documentation, communication and performance monitoring processes with contract supplier | ||
2.5 | Develop risk management plan | ||
2.6 | Complete procurement documentation | ||
3 | Implement and manage contract agreement | 3.1 | Monitor performance to ensure standards and targets are being achieved |
3.2 | Identify and address inconsistencies and missed targets to re-establish required performance levels | ||
3.3 | Consult appropriate personnel to assist in monitoring performance of contract suppliers | ||
3.4 | Identify and implement improvement opportunities, where possible | ||
3.5 | Update documentation, as required, throughout implementation of contract | ||
3.6 | Manage supplier payments according to contract agreement | ||
4 | Evaluate contract implementation and maintain records | 4.1 | Evaluate implementation and effectiveness of contract in meeting contract requirements and assess quality outcomes |
4.2 | Identify and record any improvements to contracting procedures for later use | ||
4.3 | Provide feedback to supplier | ||
4.4 | Prepare records and maintain reports | ||
Evidence of Performance
Evidence required to demonstrate competence in this unit must be relevant to and satisfy the requirements of the elements and performance criteria, and include:
reading and following work instructions, standard operating procedures (SOPs), safe work practices
applying relevant standards
communicating within the workplace, including liaising with other departments and, where relevant, overseas personnel to establish contract criteria
determining contract and quality requirements and advertising or circulating in relevant media
reviewing and selecting contractor and preparing contract detailing required products and/or services
monitoring performance of contractor and suppliers and applying methods to eliminate causes of unsatisfactory performance
evaluating implementation and effectiveness of contract in meeting contract requirements and assessing quality outcomes
evaluating and assessing effectiveness of contract process and identifying improvements to contracting process
preparing report and maintaining accurate records.
Evidence of Knowledge
Evidence must be provided that demonstrates knowledge of:
safe work practices and procedures and use of personal protective equipment (PPE)
relevant Australian Standards
principles of quality management, their application and delegation of responsibilities within a contract
documentation procedures for contracts
research techniques
workplace procurement practices and procedures
legal requirements for contracting
performance monitoring and management methods
strategic planning
financial and accounting issues
quality standards and practices
work health and safety (WHS) practices, including hazard identification and control measures
workplace procedures
recording and reporting practices.
Assessment Conditions
Assessors must:
satisfy the assessor competency requirements that are in place at the time of the assessment, as set by the VET regulator
have vocational competency in negotiating and managing contracts to produce finished design products, at least to the level being assessed, with relevant industry knowledge and experience.
Assessment should occur in operational workplace situations. Where this is not possible, or where personal safety or environmental damage are limiting factors, assessment must occur in a sufficiently rigorous simulated environment reflecting realistic operational workplace conditions. This must cover all aspects of workplace performance, including environment, task skills, task management skills, contingency management skills and job role environment skills.
Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.
Conditions for assessment must include access to all tools, equipment, materials and documentation required, including relevant workplace procedures, product and manufacturing specifications associated with this unit.
The unit is applicable to all TCF sectors and assessment must ensure it is delivered to suit the industry it is being applied to.
Foundation Skills
This section describes those required skills (language, literacy and numeracy) that are essential to performance.
Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.
Range Statement
This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. | |
Workplace procedures include one or more of the following: | requirements prescribed by legislation, awards, agreements and conditions of employment standard operating procedures (SOPs) work instructions oral, written and visual communication quality practices, including responsibility for maintenance of own work quality and contribution to quality improvement of team or section output housekeeping tasks related to environmental protection, waste disposal, pollution control and recycling WHS practices |
Australian Standards include: | the relevant industry or Australian Standards that are current at the time this unit is being undertaken |
Contract requirements include, but are not limited to, one or more of the following: | supply of goods or components production of goods or components sales and marketing services transport and distribution services |
Appropriate personnel include, but are not limited to, one or more of the following: | business development staff management specialist personnel, such as operations managers, marketing executives and procurement officers production personnel designers quality assurance officers |
Key criteria includes, but is not limited to, three or more of the following: | domestic or overseas suppliers technology requirements product specification process specification quantity specifications quality specifications stakeholder interests timing budget transportation and shipping other special requirements |
Sectors
Not applicable
Competency Field
Generic