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Evidence Guide: MSFFT4010 - Identify and calculate production costs

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

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MSFFT4010 - Identify and calculate production costs

What evidence can you provide to prove your understanding of each of the following citeria?

Gather information

  1. Details of the particular product and competition products are obtained
  2. Details of the proposed production operation are obtained and analysed
  3. Labour unit cost projections are obtained and agreed
  4. Logistic support contracts, supply agreements or equivalent are obtained and analysed
  5. Details of proposed warehousing and physical distribution systems and related cost factors are obtained
  6. Information is converted to usable form and stored ready for retrieval and application
Details of the particular product and competition products are obtained

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Details of the proposed production operation are obtained and analysed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Labour unit cost projections are obtained and agreed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Information is converted to usable form and stored ready for retrieval and application

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate materials and labour

  1. Types and quantities of materials required for production are estimated and recorded
  2. Time requirements for production activities and other lead times are estimated
  3. Labour requirements for direct production and handling operations are estimated and recorded
Types and quantities of materials required for production are estimated and recorded

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Time requirements for production activities and other lead times are estimated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine and calculate overheads

  1. Components contributing to overhead costs are identified
  2. Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified
Components contributing to overhead costs are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate production costs

  1. Total materials costs and labour costs are calculated in accordance with enterprise procedures
  2. Total production cost is calculated, including overheads and mark-up percentages
  3. Final cost to customer is calculated in conjunction with marketing/sales personnel
Total materials costs and labour costs are calculated in accordance with enterprise procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Final cost to customer is calculated in conjunction with marketing/sales personnel

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document details and verify, where necessary

  1. Details of costs and charges are documented in accordance with enterprise practice
  2. Costs, calculations or other details are verified by other enterprise personnel, as required
  3. Details are documented for future reference in accordance with enterprise practices
Details of costs and charges are documented in accordance with enterprise practice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Costs, calculations or other details are verified by other enterprise personnel, as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Details are documented for future reference in accordance with enterprise practices

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Elements describe the essential outcomes.

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

1

Gather information

1.1

Details of the particular product and competition products are obtained

1.2

Details of the proposed production operation are obtained and analysed

1.3

Labour unit cost projections are obtained and agreed

1.4

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

1.5

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

1.6

Information is converted to usable form and stored ready for retrieval and application

2

Estimate materials and labour

2.1

Types and quantities of materials 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

Determine and calculate overheads

3.1

Components contributing to overhead costs are identified

3.2

Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified

4

Calculate production costs

4.1

Total materials costs and labour costs are calculated in accordance with enterprise procedures

4.2

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

4.3

Final cost to customer is calculated in conjunction with marketing/sales personnel

5

Document details and verify, where necessary

5.1

Details of costs and charges are documented in accordance with enterprise practice

5.2

Costs, calculations or other details are verified by other enterprise personnel, as required

5.3

Details are documented for future reference in accordance with enterprise practices

Required Skills and Knowledge

Elements describe the essential outcomes.

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

1

Gather information

1.1

Details of the particular product and competition products are obtained

1.2

Details of the proposed production operation are obtained and analysed

1.3

Labour unit cost projections are obtained and agreed

1.4

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

1.5

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

1.6

Information is converted to usable form and stored ready for retrieval and application

2

Estimate materials and labour

2.1

Types and quantities of materials 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

Determine and calculate overheads

3.1

Components contributing to overhead costs are identified

3.2

Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified

4

Calculate production costs

4.1

Total materials costs and labour costs are calculated in accordance with enterprise procedures

4.2

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

4.3

Final cost to customer is calculated in conjunction with marketing/sales personnel

5

Document details and verify, where necessary

5.1

Details of costs and charges are documented in accordance with enterprise practice

5.2

Costs, calculations or other details are verified by other enterprise personnel, as required

5.3

Details are documented for future reference in accordance with enterprise practices

Collect, organise and understand information related to multi-trade work instructions and work orders, building and structural plans and safety procedures

Apply safe handling requirements for equipment, products and materials, including use of personal protective equipment

Identify materials used in the work process

Follow work instructions, operating procedures and inspection processes to:

minimise the risk of injury to self or others

prevent damage to goods, equipment and products

maintain required production output and product quality

For a significant mass production operation, determine the production and product costs using the following or equivalent steps:

obtain all information relevant to the determination of costs

interpret plans, specifications and instructions for production and materials to be used

estimate quantities of materials required

determine the types and amount of labour required to complete the work

estimate time required to complete the work

determine/calculate overheads

document the process and outcomes

Use mathematical ideas and techniques to correctly complete measurements, calculate area and estimate material requirements

Communicate ideas and information to enable confirmation of work requirements and specifications and the reporting of work outcomes and problems, interpret basic plans and follow safety procedures

Use workplace technology related to the coordination, including communication equipment, time and management aids and other measuring devices

Avoid backtracking, work flow interruptions or wastage

Work with others and in a team by recognising dependencies and using cooperative approaches to optimise work flow and productivity

Production systems documentation processes

Enterprise costing procedures

Mathematical formulae and processes relevant to costing

Components of labour costs

Enterprise/commercial approach to overhead costs

Enterprise/commercial approaches to warehousing and physical distribution costs

Enterprise information management processes, including storage requirements

Range Statement

Specifies 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. Range is restricted to essential operating conditions and any other variables essential to the work environment.

Unit context includes:

work health and safety (WHS) requirements, including legislation, building codes, material safety management systems, hazardous and dangerous goods codes, and local safe operating procedures or equivalent

work is carried out in accordance with legislative obligations, environmental legislation, relevant health regulations, manual handling procedures and organisation insurance requirements

work requires individuals to demonstrate organisational and administrative ability, discretion, judgement and problem solving

work is undertaken in accordance with established procedures involving a range of products, equipment and installation sites

interaction with customers and other personnel from the operator's workplace

Tools, equipment and resources include:

measuring equipment

product sales literature

product samples

Overhead costs include:

rental/lease costs

utilities

non-production resources

depreciation of plant and equipment

warehousing margins

physical distribution unit costs

insurance

other costs incurred by doing business

Personal protective equipment includes:

that prescribed under legislation, regulations and enterprise policies and practices

Information and procedures include:

enterprise production plan and schedule

enterprise financial management policy and procedures

enterprise policy and procedures for cost and apportioning overheads

labour employment costs (awards, enterprise bargaining agreements and contracts)

material/supply costs (contracts, standing agreements, market rates and warehousing margins)

physical distribution contracts or arrangements

Australian, international and enterprise quality standards and procedures