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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify costing estimate requirements
   • Labour hours, times and other statistics required are identified and applied in calculations
   • Available machine hours are identified and applied in calculations
   • Economical batch sizes are identified
   • Material requirements are identified and applied in calculations
2. Prepare costing estimates
   • Costing estimates are calculated using material, labour and machine costs
   • Cost estimate details are calculated
3. Compare estimates with actual costs
   • Actual costs are compared with estimates
   • Costing basis is adjusted as appropriate

Performance Evidence

Evidence of the ability to:

prepare an estimate of production costs that takes into account labour, machine and material requirements

compare estimated costs against actual cost and adjust costing methods, if required.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

Statutory requirements

outline the legal requirements that affect costing of operations

Production processes and operations

describe information required before costing/estimating can be done accurately

describe the references and resources on materials and suppliers required to help in costing/estimating

explain how choice of materials affects cost

list ways of minimising production costs on any given job

explain the relationship between costing and set up and changeover times for processes

Different costing/estimating methodologies

explain why a particular costing/estimating method was chosen

outline alternative methods and when it might be appropriate to use them

describe factors that might be adjusted in the estimations if they consistently do not match costs

Sampling and quality control techniques

describe effects that quality control has on costing

Production records

describe why it is necessary to keep accurate production records

outline how often a review of production records against actual costs should occur

identify production monitoring systems that can be used to accurately assess costs.

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