Unit of competency details

Elements and Performance Criteria 

Element 

Performance Criteria 

1

Assess projected demand 

1.1

Information/data from sales plan or stock movement is analysed

1.2

Projected high and low volume periods are determined from the analysis of sales plan and/or stock movement data

1.3

Seasonal nature of stock demand is determined from the analysis of sales plan and/or stock movement data

1.4

Required inventory levels at different production and sales cycle stages are determined from the analysis of sales plan and/or stock movement data

2

Assess variables that impact upon optimum stock levels 

2.1

Stock manufacturing/supply and consignment delivery lead times are determined

2.2

Internal processing and distribution times are determined

2.3

Spoilage and obsolescence times are calculated (where applicable)

2.4

Maximum stock carrying capacity is assessed

2.5

Physical and human resources are assessed in relation to projected required stock levels

2.6

Contingencies are developed for abnormal distribution stoppages/slow-downs to supply chain

3

Determine optimum inventory levels 

3.1

Production and sales cycle stages are correlated to stock manufacturing supply and distribution lead times

3.2

Safety stock levels are calculated

3.3

Optimum inventory levels are identified

4

Monitor optimum inventory levels 

4.1

Inventory benchmarks are continually compared to current and known future sales turnover/production requirements

4.2

Adjustments to inventory levels are undertaken in accordance with reassessed sales turnover/production requirements, workplace procurement processes and within scope of authority

4.3

Changes and/or requests for adjustments to inventory levels are documented in accordance with workplace policies

4.4

Resources are assembled in accordance with identified optimum inventory levels

REQUIRED KNOWLEDGE AND SKILLS 

This describes the essential knowledge and skills and their level required for this unit.

Required knowledge :

Australian codes and regulations relevant to the optimisation of stock levels

Relevant OH&S and environmental protection procedures and guidelines

Workplace procedures and policies for the assessment and monitoring of optimum stock levels

Focus of operation of supply arrangements, resources, management and workplace operating systems

Purpose and use of key information required when optimising stock levels, including supply requirements, supplier information, enterprise contract procedures, sales plan, and distribution times

Workplace business policies and plans including procedures for maintenance of confidentiality

Computer records/documentation requirements when assessing and monitoring optimum stock levels

Problems that may occur when assessing and monitoring optimum stock levels and appropriate action that can be taken to resolve the problems

Worksite layout and organisational structure

Required skills :

Communicate effectively with others when assessing and monitoring optimum stock levels

Read and interpret instructions, procedures, policies, procedures and instructions relevant to the assessment and monitoring of optimum stock levels

Complete documentation related to the assessment and monitoring of optimum stock levels

Work collaboratively with others when assessing and monitoring optimum stock levels

Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others

Promptly report and/or rectify any identified problems, faults or malfunctions when assessing and monitoring optimum stock levels in accordance with regulatory requirements and workplace procedures

Plan and organise resource availability including the competencies of individuals in a team or group

Modify activities depending on differing operational contingencies, risk situations and environments

Work systematically with required attention to detail without injury to self or others, or damage to goods or equipment

Select and apply relevant technology, information systems and procedures when assessing and monitoring optimum stock levels

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.

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 and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:

the underpinning knowledge and skills

relevant legislation and workplace procedures

other relevant aspects of the range statement

Context of and specific resources for assessment 

Performance is demonstrated consistently over a period of time and in a suitable range of contexts

Resources for assessment include:

a range of relevant exercises, case studies and other simulated practical and knowledge assessment, and/or

access to an appropriate range of relevant operational situations in the workplace

In both real and simulated environments, access is required to:

relevant and appropriate materials and/or equipment, and/or

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment 

Assessment of this unit must be undertaken by a registered training organisation

As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests

Practical assessment must occur:

through appropriately simulated activities at the registered training organisation, and/or

in an appropriate range of situations in the workplace

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.

Work may involve:

twenty-four hour operation

in a range of work environments

by day or night

Customers may be:

internal or external

Workplaces may comprise:

large, medium or small worksites

Work may be conducted in:

limited or restricted spaces

exposed conditions

controlled or open environments

Work:

applies to predominantly manual operations

does not include a total computer generated purchasing system operation

Inventory benchmarks may be:

periodic, monthly or annual

Lead times may vary in accordance with:

type of transport mode(s)

processing time

regulatory requirements

freight disputations

customs regulations

scarcity of resource

Information used when assessing and monitoring optimum stock levels may include:

supply requirements

supplier information

workplace contract procedures

sales plan

distribution times

Consultative processes may involve:

other employees and supervisors

suppliers, customers and clients

relevant authorities and institutions

management and union representatives

industrial relations and OH&S specialists

other maintenance, professional or technical staff

Communication in the work area may include:

phone

electronic data interchange (EDI)

fax

email

internet

RF systems

oral, aural or signed communications

Inventory systems may be:

automated

manual

paper-based

computerised

microfiche

Depending on the type of organisation concerned and the local terminology used, workplace procedures may include:

company procedures

enterprise procedures

organisational procedures

established procedures

Information/documents may include:

relevant workplace quality specifications, policies and procedures

Australian regulations and codes of practice relevant to stock management

manufacturers specifications and/or suppliers handling and storage advice

supplier and/or client instructions

workplace business policies and plans including procedures for maintenance of confidentiality

operations manuals, job specifications and induction documentation

ADG Code and associated regulations

material safety data sheets

relevant Australian standards and certification requirements

conditions of service, legislation and industrial agreements including award details, enterprise bargaining agreement, other industrial arrangements

emergency procedures

Applicable regulations and legislation may include:

codes and regulations relevant to the optimisation of stock levels including the ADG Code

relevant state/territory OH&S and environmental protection legislation

licence, patent or copyright arrangements

water and road use and licence arrangements

export/import/quarantine/bond requirements

workplace relations regulations

workers compensation regulations