Unit of competency Outline
Date retreived
23/07/2026 12:30 AM AWST
23/07/2026 12:30 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Diagnose and calculate production costs
Diagnose and calculate production costs
Unit of competency
National Code
FPITMM4202B
FPITMM4202B
State Code
D6096
D6096
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
23/04/2013
Field of Education
040307 - Building Construction Economics
Original Release Date
23/04/2013
Nominal Hours
80
Description
This unit describes the outcomes required to estimate materials, labour and time requirements and establish costs for the provision of products, including all overheadsGeneral workplace legislative and regulatory requirements apply to this unit; however there are no specific licensing or certification requirements at the time of publicationThis unit replaces FPITMM4202A Diagnose and calculate production costs
Notes
Elements and Performance Criteria
1. Gather and diagnose information
- 1.1. Applicable Occupational Health and Safety (OHS), environmental, legislative and organisational requirements relevant to diagnosing and calculating production costs are identified and followed
- 1.2. Details of the particular product and competitor'sproducts are obtained
- 1.3. Details of the proposed production operation are obtained and analysed
- 1.4. Labour unitcost projections are obtained and agreed
- 1.5. Logistic support contracts, supply agreements or equivalent are obtained and analysed
- 1.6. Details of proposed warehousing, physical distribution systems and related cost factors are obtained
- 1.7. Communication with others is established and maintained in line with OHS requirements
2. Estimate materials and labour
- 2.1. Types and quantities of material 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. Calculate costs and overheads
- 3.1. Components contributing to overhead costs are determined
- 3.2. Overhead costs to be attributed to work in line with commercial and organisational procedures are determined
- 3.3. Total materials and labour costs are calculated in line with organisational procedures
- 3.4. Total production cost is calculated, including overheads and mark-up percentages
- 3.5. Final cost to customer is calculated in conjunction with marketing and sales personnel
- 3.6. Cost calculation processes and problems are recorded and reported to appropriate personnel
4. Check and document details
- 4.1. Details of costs and charges are documented in line with organisational practice
- 4.2. Costs, calculations or other details are checked by other organisational personnel
- 4.3. Details are documented for future reference in line with organisational practice
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.
OHSrequirements:
are to be in line with applicable Commonwealth, State or Territory legislation and regulations, and organisational safety policies and procedures, and may include:
personal protective equipment and clothing
safety equipment
first aid equipment
fire fighting equipment
hazard and risk control
fatigue management
elimination of hazardous materials and substances
safe forest practices including required actions relating to forest fire
manual handling including shifting, lifting and carrying
Environmental requirements may include:
legislation
organisational policies and procedures
workplace practices
Legislative requirements:
are to be in line with applicable Commonwealth, State or Territory legislation, regulations, certification requirements and codes of practice and may include:
award and enterprise agreements
industrial relations
Australian Standards
confidentiality and privacy
OHS
the environment
equal opportunity
anti-discrimination
relevant industry codes of practice
duty of care
Organisational requirements may include:
legal
organisational and site guidelines
policies and procedures relating to own role and responsibility
quality assurance
procedural manuals
quality and continuous improvement processes and standards
OHS, emergency and evacuation procedures
ethical standards
recording and reporting requirements
equipment use and maintenance and storage requirements
environmental management requirements (waste minimisation and disposal, recycling and re-use guidelines)
Products may include:
pallets
crates
trellises
trusses
stairs
doors
windows
frames
beams
Competitor's products:
are products that compete directly with those produced by the organisation
Labour costs may include:
number of personnel to complete the job
amount of time to complete the job
overtime considerations
overheads
environmental protection requirements
Logistic support contracts are to include:
external companies who provide products and services to assist in the production process
internal sections of the organisation that provide products and services to assist in the production process
Physical distribution systems
are the methods and systems for distributing materials and products to and from the production area and from there to the warehouse or storage area
Communication may include:
verbal and non-verbal language
constructive feedback
active listening
questioning to clarify and confirm understanding
use of positive, confident and cooperative language
use of language and concepts appropriate to individual social and cultural differences
control of tone of voice and body language
Material may include:
native timber species
imported timber species
dressed timber
in-the-rough timber
stress and non-stress graded timber
preservative treated timber
medium density fibreboard
laminated veneer
chipboard,
fibreboard and other manufactured board products
coated and/or treated timber products
beams or laminated beams
Time requirements are to include:
the amount of time required to complete a:
product
task
project
Overhead costs may include:
rental or 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
superannuation
sick leave entitlements
leave loading
other staff entitlements
organisational overheads
environmental protection requirements
Mark-up percentage:
is the desired or intended profit margin over and above all costs
Records and reports may include:
product type
size
inspection
grading and labelling outcomes
storage locations
quality outcomes
hazards
incidents or equipment malfunctions
and may be:
manual
using a computer-based system or other appropriate organisational communication system
Appropriatepersonnel may include:
supervisors
suppliers
clients
colleagues
managers
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.
OHSrequirements:
are to be in line with applicable Commonwealth, State or Territory legislation and regulations, and organisational safety policies and procedures, and may include:
personal protective equipment and clothing
safety equipment
first aid equipment
fire fighting equipment
hazard and risk control
fatigue management
elimination of hazardous materials and substances
safe forest practices including required actions relating to forest fire
manual handling including shifting, lifting and carrying
Environmental requirements may include:
legislation
organisational policies and procedures
workplace practices
Legislative requirements:
are to be in line with applicable Commonwealth, State or Territory legislation, regulations, certification requirements and codes of practice and may include:
award and enterprise agreements
industrial relations
Australian Standards
confidentiality and privacy
OHS
the environment
equal opportunity
anti-discrimination
relevant industry codes of practice
duty of care
Organisational requirements may include:
legal
organisational and site guidelines
policies and procedures relating to own role and responsibility
quality assurance
procedural manuals
quality and continuous improvement processes and standards
OHS, emergency and evacuation procedures
ethical standards
recording and reporting requirements
equipment use and maintenance and storage requirements
environmental management requirements (waste minimisation and disposal, recycling and re-use guidelines)
Products may include:
pallets
crates
trellises
trusses
stairs
doors
windows
frames
beams
Competitor's products:
are products that compete directly with those produced by the organisation
Labour costs may include:
number of personnel to complete the job
amount of time to complete the job
overtime considerations
overheads
environmental protection requirements
Logistic support contracts are to include:
external companies who provide products and services to assist in the production process
internal sections of the organisation that provide products and services to assist in the production process
Physical distribution systems
are the methods and systems for distributing materials and products to and from the production area and from there to the warehouse or storage area
Communication may include:
verbal and non-verbal language
constructive feedback
active listening
questioning to clarify and confirm understanding
use of positive, confident and cooperative language
use of language and concepts appropriate to individual social and cultural differences
control of tone of voice and body language
Material may include:
native timber species
imported timber species
dressed timber
in-the-rough timber
stress and non-stress graded timber
preservative treated timber
medium density fibreboard
laminated veneer
chipboard,
fibreboard and other manufactured board products
coated and/or treated timber products
beams or laminated beams
Time requirements are to include:
the amount of time required to complete a:
product
task
project
Overhead costs may include:
rental or 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
superannuation
sick leave entitlements
leave loading
other staff entitlements
organisational overheads
environmental protection requirements
Mark-up percentage:
is the desired or intended profit margin over and above all costs
Records and reports may include:
product type
size
inspection
grading and labelling outcomes
storage locations
quality outcomes
hazards
incidents or equipment malfunctions
and may be:
manual
using a computer-based system or other appropriate organisational communication system
Appropriatepersonnel may include:
supervisors
suppliers
clients
colleagues
managers
EVIDENCE GUIDE
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 provide evidence that they can safely and effectively diagnose and calculate production costs within organisational requirements
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 of this unit and include demonstration of:
following applicable Commonwealth, State or Territory legislative and regulatory requirements and codes of practice relevant to diagnosing and calculating production costs
following organisational policies and procedures relevant to diagnosing and calculating production costs
effective communication and safe working practices
diagnosing and calculating production costs in line with organisational requirements
Context of and specific resources for assessment
Competency is to be assessed in the workplace or realistically simulated workplace
Assessment is to occur under standard and authorised work practices, safety requirements and environmental constraints
Assessment of required knowledge, other than confirmatory questions, will usually be conducted in an off-site context
Assessment is to follow relevant regulatory or Australian Standards requirements
The following resources should be made available:
workplace location or simulated workplace
materials and equipment relevant to undertaking work applicable to this unit
specifications and work instructions
Method of assessment
Assessment must satisfy the endorsed Assessment Guidelines of the FPI11 Training Package
Assessment methods must confirm consistency and accuracy of performance (over time and in a range of workplace relevant contexts) together with application of required knowledge
Assessment must be by direct observation of tasks, with questioning on required knowledge and it must also reinforce the integration of employability skills
Assessment methods must confirm the ability to access and correctly interpret and apply the essential required knowledge
Assessment may be applied under project-related conditions (real or simulated) and require evidence of process
Assessment must confirm a reasonable inference that competency is able not only to be satisfied under the particular circumstance, but is able to be transferred to other circumstances
Assessment may be in conjunction with assessment of other units of competency
The assessment environment should not disadvantage the candidate
Assessment practices should take into account any relevant language or cultural issues related to Aboriginality, gender or language backgrounds other than English
Where the participant has a disability, reasonable adjustment may be applied during assessment
Language and literacy demands of the assessment task should not be higher than those of the work role
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 provide evidence that they can safely and effectively diagnose and calculate production costs within organisational requirements
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 of this unit and include demonstration of:
following applicable Commonwealth, State or Territory legislative and regulatory requirements and codes of practice relevant to diagnosing and calculating production costs
following organisational policies and procedures relevant to diagnosing and calculating production costs
effective communication and safe working practices
diagnosing and calculating production costs in line with organisational requirements
Context of and specific resources for assessment
Competency is to be assessed in the workplace or realistically simulated workplace
Assessment is to occur under standard and authorised work practices, safety requirements and environmental constraints
Assessment of required knowledge, other than confirmatory questions, will usually be conducted in an off-site context
Assessment is to follow relevant regulatory or Australian Standards requirements
The following resources should be made available:
workplace location or simulated workplace
materials and equipment relevant to undertaking work applicable to this unit
specifications and work instructions
Method of assessment
Assessment must satisfy the endorsed Assessment Guidelines of the FPI11 Training Package
Assessment methods must confirm consistency and accuracy of performance (over time and in a range of workplace relevant contexts) together with application of required knowledge
Assessment must be by direct observation of tasks, with questioning on required knowledge and it must also reinforce the integration of employability skills
Assessment methods must confirm the ability to access and correctly interpret and apply the essential required knowledge
Assessment may be applied under project-related conditions (real or simulated) and require evidence of process
Assessment must confirm a reasonable inference that competency is able not only to be satisfied under the particular circumstance, but is able to be transferred to other circumstances
Assessment may be in conjunction with assessment of other units of competency
The assessment environment should not disadvantage the candidate
Assessment practices should take into account any relevant language or cultural issues related to Aboriginality, gender or language backgrounds other than English
Where the participant has a disability, reasonable adjustment may be applied during assessment
Language and literacy demands of the assessment task should not be higher than those of the work role
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| S4768 | FPITMM4202A | Diagnose and calculate production costs | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AXJ62 | FWPTMM4202 | Diagnose and calculate production costs | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| J478 | FPI50111 | Diploma of Forest and Forest Products | Qualification |
| J475 | FPI40211 | Certificate IV in Timber Processing | Qualification |
| J480 | FPI50411 | Diploma of Timber Truss and Frame Design | Qualification |
| J477 | FPI40411 | Certificate IV in Timber Truss and Frame Design | Qualification |
| S674 | FPI50310 | Diploma of Timber Truss and Frame Manufacture | Qualification |
| J479 | FPI50311 | Diploma of Timber Truss and Frame Manufacture | Qualification |
| J476 | FPI40311 | Certificate IV in Timber Truss and Frame Manufacture | Qualification |