Unit of competency details

Unit descriptor 

This unit covers the process of managing the production system of an organisation and defines the standard to: align relevant production systems with the enterprise strategic plan; adjust production systems to meet the overarching sustainability requirements for the enterprise; adopt a systemised approach to the incorporation of productions systems into the business plan.

Application of the unit 

This unit applies to integrating the production plans for each sector of the organisation with the strategic plan, developing risk management strategies, and analysing the organisations performance in terms of sustainability and profitability.

Prerequisite units 

Employability skills 

This unit contains employability skills.

ELEMENT 

PERFORMANCE CRITERIA 

1. Integrate plans for different sectors of the enterprise

1.1. Strategic, production, infrastructure and land management plans are examined to identify interactions between different sectors of the enterprise.

1.2. Types of interactions and their impacts on resources and production system performance over time, are determined.

1.3. Beneficial interactions are assessed and any potential additional benefits are identified for further improvements to the systems efficiency.

1.4. Detrimental interactions are assessed and the production system is adjusted to minimise potential losses.

1.5. Information on available innovations for potential use in the organisation is accessed and discussed with colleagues and integrated with operational plans.

2. Develop and implement risk management strategies

2.1. The business is analysed to identify its strengths and weaknesses as well as any threats to, or opportunities to improve, the organisations sustainability and/or profitability.

2.2. Potential results of threats are considered in terms of natural resources, business assets and infrastructure.

2.3. Preventative and reactive contingency plans are developed to minimise threats and maximise opportunities.

2.4. Contingency plans aim to ensure business stability and profitability, while protecting and preserving natural resources and business assets.

3. Analyse the overall performance of the production system

3.1. Whole-business physical and financial analyses are undertaken to determine the long-term sustainability and profitability of the production system.

3.2. Results of analyses are prepared and discussed with colleagues for input to future planning processes.

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• integrate plans for different enterprises into sustainable land management and production systems
• interpret historical data in relation to production, finances, environmental issues, staffing and land use
• recognise potential opportunities to use or install more environmentally efficient systems or equipment
• assess, then adopt profitable innovations
• assess financial strategies and prepare budgets
• prepare enterprise budgets and calculate financial returns
• 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.

Required knowledge 

• marketplace in which the organisation operates
• property planning, financial management and enterprise budgeting systems and procedures
• relevant State/Territory legislation, regulations and codes of practice with regard to OHS and the use and control of hazardous substances
• methods of measuring and implementing business and environmental sustainability
• financial analysis tools and techniques for land based businesses
• sources of information to assist in analysis of operational plans, resourcing and financial analysis
• monitoring strategies for a range of operational plans
• the value and methods of risk assessment.

EVIDENCE GUIDE 

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:

• align relevant production systems with the enterprise strategic plan.
• adjust production systems to meet the overarching sustainability requirements for the enterprise
• adopt a systemised approach to the incorporation of productions systems into the business plan.

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.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole.

The production system may include:

• the product
• the production processes
• the infrastructure
• the land resource of each enterprise within the business as well as the interactions and relationships between them.

Unit sector 

Agribusiness

Co-requisite units 

Competency field