Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit covers the competency to estimate materials, labour and time requirements and establish costs for the provision of products, including all overheads. |
Application of the Unit
Application of the unit |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
Nil |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
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. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Gather information |
1.1. Details of the particular product and competition products are obtained 1.2. Details of the proposed production operation are obtained and analysed 1.3. Labour unit cost projections are obtained and agreed 1.4. Logistic support contracts, supply agreements or equivalent are obtained and analysed 1.5. Details of proposed warehousing and physical distribution systems and related cost factors are obtained 1.6. Information is converted to usable form and stored ready for retrieval and application |
2. Estimate materials and labour |
2.1. Types and quantities of materials required for production are estimated and recorded 2.2. Time requirements for production activities and other lead times are estimated 2.3. Labour requirements for direct production and handling operations are estimated and recorded |
3. Determine/calculate overheads |
3.1. Components contributing to overhead costs are identified 3.2. Overhead costs to be attributed to work in accordance with commercial and enterprise procedures are identified |
4. Calculate costs |
4.1. Total materials costs and labour costs are calculated in accordance with enterprise procedures 4.2. Total production cost is calculated, including overheads and mark-up percentages 4.3. Final cost to customer is calculated in conjunction with marketing/sales personnel |
5. Document details and verify where necessary |
5.1. Details of costs and charges are documented in accordance with enterprise practice 5.2. Costs, calculations or other details are verified by other enterprise personnel, as required 5.3. Details are documented for future reference in accordance with enterprise practice |
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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Critical aspects of evidence |
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Resource implications |
Access is required to real or appropriately simulated situations involving estimation and costing of production operations and products. Access is required to specifications and costs of relevant equipment and materials and information on labour costs and availability, on costs, safety costs, regulations, quality standards, and enterprise procedures. Access is required to all necessary facilities and associated equipment, including calculators, computers and relevant software. |
Method of assessment |
Assessment methods must confirm consistency or the potential for consistency of performance over time and in a range of workplace relevant contexts. Assessment should be by direct observation of performance and samples of work outcomes and questioning on underpinning knowledge. Assessment may be conducted over time and may be in conjunction with assessment of other units of competency. |
Context of assessment |
Assessment may occur on the job or in a simulated workplace facility with a relevant scenario, simulated work instructions and deadlines. |
Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Unit scope |
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Unit context |
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Workplace environment |
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Overhead costs |
Overheads may be calculated for a specific product or be a constant component based on historical records and may include such costs as rental/lease costs, utilities, non-production resources, depreciation of plant and equipment, warehousing margins, physical distribution unit costs, insurance and other costs incurred by doing business |
Information and procedures |
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Unit Sector(s)
Unit sector |
Furnishing Technology |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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