- AHCMOM601A - Analyse machinery options
Analyse machinery options
This unit applies to the analysis of machinery options within an agricultural, horticultural or land management enterprise and requires expertise of benchmarking practices and procedures, energy efficiency, capital budgeting techniques, relevant taxation provisions relating to investment, risks associated with investments and analysis and planning processes.
Elements and Performance Criteria
1. Calculate costs associated with machinery and use to assist decision making
1.1. Overhead, operating and intangible costs related to machinery are calculated.
1.2. Relevant benchmark data that relates machinery costs to enterprise productivity is sourced and compared to own enterprise data.
1.3. Comparison of productivity and suitability of different types and brands of machinery is made.
2. Review machinery requirements
2.1. Machinery inventory is reviewed in the context of the goals of the business, and current and future productivity and profitability levels.
2.2. Alternatives to ownership are identified, costed and evaluated.
2.3. Tax impact of the capital investment is identified through appropriate professional support and incorporated into the analysis.
2.4. Risks associated with high capital investment in machinery are assessed and controlled in making machinery decisions.
3. Analyse returns from major capital investments in machinery
3.1. Capital budgeting techniques including energy efficiency are used to calculate the rate of return on major investment decisions.
3.2. Plan and analysis of machinery options are reviewed and refinements are recorded.
calculate costs associated with machinery
review machinery inventory and requirement
evaluate and cost options
assess investment risk
budget and incorporate benchmarks
calculate returns from major capital investments in machinery
document a comprehensive report
use literacy skills to fulfil job roles as required by the organisation. The level of skill may range from reading and understanding documentation to completion of written reports
use oral communication skills/language competence to fulfil the job role as specified by the organisation, including questioning, active listening, asking for clarification, negotiating solutions and responding to a range of views
use numeracy skills to estimate, calculate and record complex workplace measures
use interpersonal skills to work with others and relate to people from a range of cultural, social and religious backgrounds and with a range of physical and mental abilities.
benchmarking practices and procedures, including energy efficiency, carbon footprint and water use efficiency
capital budgeting techniques
relevant taxation provisions relating to investment
risks associated with investments
analysis and planning processes.
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 and evidence required to demonstrate competency in this unit
The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:
calculate the total running cost of machinery
review the machinery needs of the enterprise and evaluate costed alternative options
budget the calculated rate of return on investments using benchmarks of energy efficiency
compare the productivity and suitability of different types and brands of machinery
analyse the financial costs, tax impact and investment risk for different types of machinery
document the analysis and define the preferred option
review the investment plan and analysis of options.
Context of and specific resources for assessment
Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.
The range statement relates to the unit of competency as a whole.
The factors may include:
the range of farming systems
budgeting variables, including energy efficiency
machinery ownership options.
Machinery operations and maintenance
This unit contains employability skills.