All enterprise or workplace procedures and activities are carried out according to relevant government regulations, licensing and other compliance requirements, including food safety and hygiene regulations and procedures.

ELEMENT

PERFORMANCE CRITERIA

1. Identify cost factors impacting on supply of seafood product

1.1. Cost factors related to the enterprise are determined.

1.2. An historical perspective is applied to ensure accuracy and reliability of the information generated.

2. Review enterprise costing methods

2.1. Costing options for raw materials are reviewed.

2.2. Costing options for direct and indirect labour are reviewed.

2.3. Costing options for overheads are reviewed.

2.4. Processing cost options developed are relevant to the nature and extent of operations.

2.5. Options for controlling cost elements are reviewed.

2.6. Volume, price, profit and projections are assessed against costing options.

2.7. Quality assurance factors are reviewed in terms of impact on costing decisions.

3. Identify and assess internal and external factors impacting on pricing decisions

3.1. Profit goals and return on investment objectives established in overall business plans are assessed.

3.2. Cost, volume, price, profit relationships and projections are assessed in relation to pricing decisions.

3.3. Competitors' prices are assessed in terms of the implications for pricing decisions.

3.4. Pricing strategy options are assessed in relation to competition for similar products and/or services, market penetration and comparable product pricing.

3.5. Customer demand is analysed in relation to pricing decisions, and quality and value expectations.

3.6. Quality assurance factors are reviewed

3.7. Product and/or service design, distribution and promotion factors are examined and assessed.

3.8. Regulatory and compliance factors are assessed.

4. Determine conditions for the provision of the product and/or service

4.1. Terms of sale and payment conditions that may impact upon the price of products and/or services are determined within relevant consumer legislation.

4.2. Conditions relating to provision of the whole or part of the products and/or services are developed and clearly identify the nature and extent of products and/or services provided.

4.3. Agreed variation to the terms of product and/or service provision are determined and formally communicated in a form and manner that ensures that there is no misunderstanding of the nature, extent and price of the products and/or services provided.

5. Formulate prices for the provision of product and/or service

5.1. Options developed for communicating retail product and/or service price are relevant for the product and/or service.

5.2. Options developed for communication of business to business product and/or service price information are relevant.

5.3. The form for communicating estimates for product and/or service pricing information to customers or clients are consistent with the formality and legal nature of the business transaction.

5.4. Estimates clearly communicate the conditions and prices for the provision of products and/or services.

5.5. Methods are developed and implemented to record pricing information, estimates and quotations communicated to clients, and client acceptances of pricing, estimate, and quotation terms.

Required skills

assessing seafood quality against customer specifications

applying product knowledge

calculating product costings

communicating procedures, standards and regulations in the workplace

communicating with stakeholders, including customers, colleagues and/or regulators

gathering market intelligence

giving attention to detail

identifying and describing seafood species by quality characteristics, yield and food safety parameters

maintaining business relationships

planning work to meet objectives

solving problems

undertaking business and strategic planning

using technology.

Literacy skills used for:

completing complex forms

identifying and tracing product

reading and interpreting enterprise procedures

reading and interpreting technical standards and regulations

reading and writing complex correspondence.

Numeracy skills used for:

calculating cost structures

calculating extensions of weight and price, including totals

converting between currency using foreign exchange rates

estimating costs, margins, percentages.

Required knowledge

commercial terms and conditions operating within the seafood industry, including those relevant to import and export of seafood product

enterprise procedures for the establishment of new clients and the maintenance of an existing client base

food safety standards, in particular, the requirements of storage, transport and distribution

procedures and processes for defining product quality and developing product specifications

regulations affecting the purchase and supply of seafood product

the cost structures operating within the enterprise in particular, and the industry generally.

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

Critical aspects for assessment evidence required to demonstrate competence in this unit

Assessment must confirm ability to:

perform tasks necessary to determine the cost factors impacting on the enterprise, develop commercial conditions which will enhance the enterprise and confirm those conditions with clients.

Assessment must confirm knowledge of:

demand curves for the species or season

developing projections for cost, volume and profit

food safety and other relevant requirements

industry and/or competitor pricing strategies

market expectations

options for reducing input costs

processing options

product specifications

quality assurance factors which impact on costs

standard terms and conditions accepted for the industry or sector

the range of historical data relevant to the enterprise costing structure.

Context of and specific resources for assessment

Assessment is to be conducted in the workplace or in a simulated work environment.

Resources may include:

access to enterprise personnel for confirmation of costing data

details of (seafood) resource availability

examples of customer specifications

samples of contracts for supply.

Method of assessment

The following assessment methods are suggested:

project (work or scenario based)

workplace documents, such as data, calculations and reports

written or oral questions.

Guidance information for assessment

This unit may be assessed holistically with other units within a qualification.

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.

Relevant government regulations, licensing and other compliance requirements may include:

ecologically sustainable development (ESD) principles, environmental hazard identification, risk assessment and control

fisheries or aquaculture regulations, permits, licences, quotas, catch restrictions and other compliance requirements, including:

Australian Exclusive Economic Zone

international treaties and agreements

food safety, Hazard Analysis Critical Control Point (HACCP), hygiene and temperature control along chain of custody

imports quarantine and inspection, and importing approved arrangements for Australian Quarantine Inspection Service (AQIS), Australian Customs Service (ACS) and Biosecurity Australia (BA)

business or workplace operations, policies and practices:

commercial law, including fair trading and trade practices

consumer law

corporate law, including registration, licensing and financial reporting

disability policies and practices

equal opportunity, anti-discrimination and sexual harassment

industrial relations and awards, individual employment contracts and share of catch agreements

jurisdictional variations

superannuation

taxation

trade practices

warnings and dismissals

worker's compensation

occupational health and safety (OHS) hazard identification, risk assessment and control

product quality assurance:

correct naming and labelling (e.g. country of origin, Australian Fish Names Standard and eco-labelling)

correct quantities, sizes and other customer requirements

third-party certification (e.g. Australian Grown and ISO 14001:2004 Environmental management systems).

Food safety and hygiene regulations and procedures may include:

Australian Shellfish Sanitation program

display, packaging and sale of food, including seafood and aquatic products

equipment design, use, cleaning and maintenance

exporting requirements, including AQIS Export Control (Fish) orders

handling and disposal of condemned or recalled seafood products

HACCP, food safety program, and other risk minimisation and quality assurance systems

location, construction and servicing of seafood premises

people, product and place hygiene and sanitation requirements

Primary Products Standard and the Australian Seafood Standard (voluntary)

processing, further processing and preparation of food, including seafood and aquatic products

product labelling, tracing and re-call

receipt, storage and transportation of food, including seafood and aquatic products

requirements set out in Australian and New Zealand Food Authority (ANZFA) Food Standards Code and state and territory food regulations

temperature and contamination control along chain of custody.

Costs factors may include:

direct

fixed

indirect

overhead

period

product

variable.

Costing methods may include:

direct labour costs

direct labour hours

machine hours

materials

overheads

work in progress.

Costing options may include:

external suppliers

inventory

labour

machine hours

materials

overheads

process costing

service costing

specialised requirements.

Terms of sale and payment conditions may include:

bank draft

cash

credit

credit cards

discounts (e.g. prompt payment, volume discount and trade discount)

EFTPOS

letter of credit.

Unit sector

Seafood processing

This unit contains employability skills.