List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
Element | Performance criteria |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Calculate costs associated with machinery use | 1.1 Calculate overhead, operating and intangible costs related to machinery 1.2 Source and compare relevant benchmark data that relates machinery costs to enterprise productivity to own enterprise data 1.3 Make comparison of productivity and suitability of different types and brands of machinery |
2. Review machinery requirements | 2.1 Review machinery inventory in the context of the goals of the business and current and future productivity and profitability levels 2.2 Identify, cost and evaluate alternatives to ownership 2.3 Identify tax impact of the capital investment through appropriate professional support and incorporated into the analysis 2.4 Assess and control risks associated with high capital investment in machinery in making machinery decisions |
3. Analyse returns from major capital investments in machinery | 3.1 Use capital budgeting techniques including energy efficiency to calculate the rate of return on major investment decisions 3.2 Review machinery options plan and analysis and record changes |
The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.
The candidate must provide evidence that they can:
calculate costs associated with machinery
review machinery inventory and requirement
evaluate and cost options
assessing investment risk
budget and incorporate benchmarks
calculate returns from major capital investments in machinery
compare the productivity and suitability of different types and brands of machinery
analyse the financial costs, tax impact and investment risk for different types of machinery
document the analysis and defining the preferred option
review the investment plan and analysis of options
The candidate must demonstrate knowledge of:
benchmarking practices and procedures, including energy efficiency, carbon footprint and water use efficiency
capital budgeting techniques
relevant taxation provisions relating to investment
risks associated with investments
analysis and planning processes
Competency is to be assessed in the workplace or simulated environment that accurately reflects performance in a real workplace setting.
Assessors must satisfy current standards for RTOs.