Unit of competency details

Unit Descriptor 

This unit involves the skills and knowledge required to assess and monitor optimum stock levels in accordance with workplace requirements including assessing projected demand, assessing variables that impact upon optimum stock levels, determining optimum inventory levels, and monitoring optimum inventory levels. Licensing, legislative, regulatory or certification requirements are applicable to this unit.

Application of the Unit 

Work must be carried out in compliance with the relevant regulations and workplace requirements concerning stock control operations.

Work is performed under general guidance on progress and outcomes of work. It requires the exercise of discretion and judgement for self and others in planning and using resources, services and processes to achieve required outcomes within organisational policy and procedures. A range of opportunities may be used to develop the work area and to support the development of work systems and innovative strategies to deal with contingencies and to encourage the achievement of the organisation's goals and key performance objectives.

Work involves the application of product knowledge and an understanding of relevant workplace procedures and regulatory requirements when assessing and monitoring optimum stock levels as part of work activities in the warehousing, distribution and/or storage industries.

Employability Skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Assessment of performance is to be consistent with the evidence guide.

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

EVIDENCE GUIDE 

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/or 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 equipment, and
• 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 activities in an appropriately simulated environment 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

Competency Field 

A - Handling Cargo/Stock