Unit of competency details

Release 

Comments 

Release 1

This version first released with BSB07 Business Training Package version 6.0

Revised unit. Required knowledge and Range Statement changed to include environmentally sustainable practices

Replaces BSBSMB405A Monitor and manage small business operations

Element 

Performance Criteria 

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Develop operational strategies and procedures 

1.1 Develop an action plan to provide a clear and coherent direction, in accordance with the business goals and objectives 

1.2 Identify occupational health and safety (OHS) and environmental issues  and implement strategies to minimise risk factors

1.3 Develop a quality system  for the business in line with industry standards, compliance requirements and cultural criteria

1.4 Develop performance measures and operational targets  to conform with the business plan

1.5 Develop strategies for innovation, including the utilisation of existing, new or emerging technologies, where practicable, to optimise business performance

2. Implement operational strategies and procedures

2.1 Implement systems and key performance indicators/targets to monitor business performance and customer satisfaction

2.2 Implement systems to control stock, expenditure/cost, wastage/shrinkage and risks to health and safety in accordance with the business plan

2.3 Maintain staffing requirements, where applicable, within budget to maximise productivity

2.4 Carry out the provision of goods/services in accordance with established legal, ethical cultural and technical standards 

2.5 Provide goods/services in accordance with time, cost and quality specifications, and customer requirements

2.6 Apply quality procedures to address product/service and customer requirements

3. Monitor business performance

3.1 Regularly monitor/review the achievement of operational targets to ensure optimum business performance, in accordance with the business plan goals and objectives

3.2 Review systems and structures, with a view to more effectively supporting business performance

3.3 Investigate and analyse operating problems to establish causes and implement changes as required as part of the business quality system

3.4 Amend operational policies and procedures to incorporate corrective action

4. Review business operations

4.1 Review and adjust business plan, as required, to maintain business viability, in accordance with business goals and objectives

4.2 Clearly record proposed changes to aid future planning and evaluation

4.3 Undertake ongoing research into new business opportunities and adjust business goals and objectives as new business opportunities arise

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• developing strategies and procedures to successfully manage the operation of the business
• making appropriate adjustments to the business operations as required
• knowledge of quality system principles and methods.

Context of and specific resources for assessment 

Assessment must ensure:

• access to relevant documentation
• candidate’s individual circumstances and work in the context of running a small business, are the basis for assessment.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• portfolio of evidence including operational strategies and procedures
• oral or written questioning to assess knowledge of principles of risk management relevant to the business, including risk assessment
• review of analysis of operating problems (establishing causes and implementing changes as required as part of the business quality system)
• review of records proposing changes to the business operations.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• BSBSMB406A Manage small business finances
• BSBSMB407A Manage a small team.

Operational strategies and procedures  may be determined by:

• business premises (size, location, layout)
• financial control systems and procedures
• management and administrative systems and procedures
• methods/techniques/technology
• physical and natural resources
• plant and equipment , including OHS requirements
• premises, plant and equipment, which may be new or previously owned
• purchase (sole or shared ownership) or leasing
• raw materials
• requirements, which may be one-off requirements or recurrent requirements (such as equipment maintenance) specific to the nature of the business
• technology
• environmentally sustainable principles of business operation
• use of existing, new and emerging technologies including e-commerce.

Business goals and objectives  may include:

• customer needs/marketing projections
• family or community benefits
• financial projections
• goals, objectives, plans, systems and processes
• lifestyle issues
• proposed size and scale of the business, market focus of the business
• short-, medium- or long-term goals
• social responsibility.

Occupational health and safety and environmental issues  must include:

• controls, which may include instructions to workplace personnel concerning site hazards and controls, material safety data sheets, use of personal protective equipment, vehicle access, signs and barricades, traffic control, outside contractors
• establishment and maintenance of procedures for assessing and controlling risks
• establishment and maintenance of procedures for identifying risks to health and safety
• environmentally sustainable purchase and supply of goods and services
• waste and by-products.

Quality system  may include:

• manual or computer quality control systems
• quality assurance/management approaches
• random inspections and assessments of goods and services against predetermined standards
• random inspections and assessments of processes against predetermined standards
• random sampling and follow-up of customers.

Operational targets  may include:

• external targets, which may relate to market share and positioning and may involve exploring new markets, building national or international trade links
• internal targets, which may relate to size, quality, quantity and diversity, wages to sales, sales to area/stock levels/stock turnover/average debtor payment periods and levels
• staffing level and skills mix
• targets, which may be short-, medium- or long-term.

Technical standards  may include:

• current and generally agreed descriptions of what the product/service is, how it should be produced/delivered and the environmental sustainability, quality, safety, efficiency or other measures to determine the activity is done effectively.