- MEM30023A - Prepare a simple cost estimate for a manufactured product
MEM30023A
Prepare a simple cost estimate for a manufactured product
Application
This unit applies to all manufacturing and engineering workplace environments. Work is carried out under supervision. Band: 0 Unit Weight: 0 |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Obtain tender/cost estimate requirements | 1.1. Tender/cost estimate brief is obtained within established organisational framework, procedures and routines. 1.2. Key requirements are identified. 1.3. Assistance/approval from supervisor is obtained. |
2. Prepare a simple cost estimate | 2.1. Relevant costing data is identified and interpreted from the tender/cost estimate documents. 2.2. Organisational production costs are obtained. 2.3. Cost estimates are prepared according to established organisational framework, procedures and routines. 2.4. Assistance/approval from supervisor is obtained. |
3. Verify cost estimate | 3.1. Actual cost information is sourced from a completed tender/cost estimate project. 3.2. Actual costs are compared with estimated cost to identify deviations. 3.3. A report is prepared for supervisors to explain deviations according to established organisational framework, procedures and routines. 3.4. Assistance/approval from supervisor is obtained. |
Required Skills
Required skills |
Look for evidence that confirms skills in: undertaking numerical operations, geometry and calculations/formulae within the scope of this unit reading, interpreting and following information on written job instructions, specifications, standard operating procedures and other applicable reference documents undertaking simple report writing planning and sequencing operations checking and clarifying task-related information |
Required knowledge |
Look for evidence that confirms knowledge of: overview of the impact on cost estimates of: product manufacture demand vs. capability make-or-buy market-demand-price-competition cost control product costs materials resource consumption (water, power, etc.) labour standard time/usage margins, profit/loss using proforma estimate sheets using estimates as targets impact of value adding non value adding activities lead times associated with: raw material availability equipment, tool design and commissioning prototypes and trial builds estimating processes use of contract documents - drawings, specifications consideration of general conditions and any special conditions application of resources costs - hourly rates (labour, plant, material, subcontractors) contingency costs allowance for contract variations hazards and control measures associated with preparing a simple cost estimate for a manufactured product, including allowing for housekeeping, safe work practices and procedures |
Evidence Required
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. | |
Overview of assessment | A person who demonstrates competency in this unit must be able to prepare a simple cost estimate for a manufactured product. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Assessors must be satisfied that the candidate can competently and consistently perform all elements of the unit as specified by the criteria, including required knowledge, and be capable of applying the competency in new and different situations and contexts. |
Context of and specific resources for assessment | This unit may be assessed on the job, off the job or a combination of both. Where assessment occurs off the job, i.e. the candidate is not in productive work, an appropriate simulation must be used where the range of conditions reflects realistic workplace situations. The competencies covered by this unit would be demonstrated by an individual working alone or as part of a team. The assessment environment should not disadvantage the candidate. This unit could be assessed in conjunction with any other units addressing the safety, quality, communication, materials handling, recording and reporting associated with preparing a simple cost estimate for a manufactured product, or other units requiring the exercise of the skills and knowledge covered by this unit. |
Method of assessment | Assessors should gather a range of evidence that is valid, sufficient, current and authentic. Evidence can be gathered through a variety of ways including direct observation, supervisor's reports, project work, samples and questioning. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. The candidate must have access to all tools, equipment, materials and documentation required. The candidate must be permitted to refer to any relevant workplace procedures, product and manufacturing specifications, codes, standards, manuals and reference materials. |
Guidance information for assessment |
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. 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. | |
Simple cost estimate | Based on known production and material costs Cost can be estimated using a limited number of variables Estimate relates to a discrete product with a limited number of operations for manufacture |
Tender/cost estimate brief | May include project guidelines and instructions, internal or external requirements, information from tender/contract documents, drawing specifications |
Key requirements | May include timing, budget, resources, output, special conditions |
Deviations | Reported as fractions or percentages, does not include standard deviations, six sigma etc. |
Sectors
Unit sector |
Competency Field
Engineering technician |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not Applicable