Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit covers the analysis of machinery options within an agricultural, horticultural or land management enterprise and defines the standard required to: 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; and review the investment plan and analysis of options. |
Application of the Unit
Application of the unit |
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. |
Licensing/Regulatory Information
Not Applicable
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Not Applicable
Elements and Performance Criteria
ELEMENT |
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. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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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:
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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
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. |
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The factors may include: |
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Unit Sector(s)
Unit sector |
Machinery operations and maintenance |
Co-requisite units
Co-requisite units |
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Competency field
Competency field |