25011 version 2 Page 1 of 6

Undertake costing and finance for print Level

5

Credits

25

Purpose

This unit standard has been designed for people employed in the print industry who are preparing for a management role. People credited with this unit standard are able to: explain procedures for calculating components required for job costing in the print industry; calculate figures for costing components of a print production job, analyse variances, and identify changes required; calculate mark-ups; prepare a detailed quotation; compare and analyse quotation costs against actual costs; and demonstrate knowledge of the financial aspects of a print industry company, and prepare a report to the company directors on the company’s performance.

Subfield

Printing

Domain

Print Industry Management

Status

Registered

Status date

22 August 2008

Date version published

12 December 2008

Planned review date

31 December 2013

Entry information

Recommended: Unit 18614, Research and report on print industry production processes and technology, or demonstrate equivalent knowledge and skills.

Replacement information

This unit standard replaced unit standard 16764, unit standard 16765, and unit standard 16768.

Accreditation

Evaluation of documentation and visit by NZQA and industry.

Standard setting body (SSB)

Competenz

Accreditation and Moderation Action Plan (AMAP) reference

0005

This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.

© New Zealand Qualifications Authority 2014

25011 version 2 Page 2 of 6 Special notes 1

For the purposes of this unit standard ‘company operating figures’ will be provided by the print industry company in which the candidate is employed or by the training provider.

2

This unit standard has been designed for learning and assessment in the workplace. For assessment purposes the candidate will satisfactorily complete a written assignment, and for element 6 will submit a written report.

3

Definitions established company practice refers to the documented procedures set down by the print industry company; individual print production jobs refer to individual job runs, as opposed to batches of jobs run in a week, month, or year; print industry includes all sectors involved in printing and packaging industries including pre-production, production, and post-production activities. The sectors include – graphic pre-press, digital output sheet-fed, reel-fed, screen, binding and finishing, fibreboard packaging; print production includes any stage of production in any sector.

Elements and performance criteria Element 1 Explain procedures for calculating components required for job costing in a print industry company, in accordance with established company practice. Performance criteria 1.1

Explanation includes procedures for calculating hourly rates charged for individual pieces of equipment.

1.2

Explanation includes procedures for calculating productivity benchmarks.

1.3

Explanation includes procedures for calculating depreciation rates for individual pieces of equipment.

1.4

Explanation includes procedures for calculating handling charges applied to materials and outside services.

1.5

Explanation includes procedures for calculating overheads to be recovered in the hourly rate.

1.6

Explanation includes the application of profit margins to jobs.

© New Zealand Qualifications Authority 2014

25011 version 2 Page 3 of 6 Element 2 Calculate figures for components of a print production job, analyse variances, and identify changes required. Range

components include but are not limited to – hourly rates charged for equipment, productivity benchmarks, depreciation rates for equipment, handling charges, overheads, profit margins.

Performance criteria 2.1

Figures are calculated for a print production job in accordance with established company practice.

2.2

Variances between the calculated figures and the current company operating figures are analysed.

2.3

Changes required as a result of the analysis undertaken in performance criterion 2.2 are identified.

Element 3 Calculate mark-ups for a print production job in accordance with established company practice. Performance criteria 3.1

The expected return on sales or investment is obtained from the company policy.

3.2

Level of mark-up is calculated, as a percentage of cost, to ensure the return on sales or investment is achieved.

3.3

Calculations are made for handling charges on outside services and their expected returns.

3.4

Calculations are made for handling charges on materials and their expected returns.

© New Zealand Qualifications Authority 2014

25011 version 2 Page 4 of 6 Element 4 Prepare a detailed quotation for a print production job in accordance with established company practice. Performance criteria 4.1

Costs associated with individual print production jobs are defined. Range

includes but is not limited to – materials, substrates, outside services, production hours required to complete each task and/or process, direct labour costs to be applied to the chargeable hours for equipment and/or processes being used, factory overheads to be apportioned to the chargeable hours for the equipment and/or processes being used.

4.2

Quantities and costs of materials and substrates are calculated to meet the requirements of the print production job.

4.3

Production costs required to complete each production task or process are calculated using hourly cost rates. Range

evidence for a minimum of three production tasks and/or processes is required.

4.4

Costs of outside services are calculated as required by the quotation specifications.

4.5

Handling charges and/or mark up on components are calculated and included in the quotation. Range

components may include but are not limited to – substrates, materials, outside services.

4.6

Despatch and delivery costs are determined as required by the quotation specifications.

4.7

Profit margin is added to the costing figures set out in the quotation.

Element 5 Compare and analyse quotation costs against actual costs for a print production job. Performance criteria 5.1

Costs recorded on cost summary sheets for completed work are compared to the quotation, and any variances are analysed in accordance with established company practice. Range

may include but is not limited to – time allocations for each process, materials usage and costs, outside services, handling charges, despatch and delivery charges.

© New Zealand Qualifications Authority 2014

25011 version 2 Page 5 of 6 Element 6 Demonstrate knowledge of the financial aspects of a print industry company, and prepare a report to the company directors on the company’s performance. Performance criteria 6.1

Demonstration of knowledge includes an explanation of different responsibilities for costing and finance that are carried out, in accordance with established company practice. Range

may include but is not limited to – review of productivity benchmarks and change of rates; updating of – raw materials held in stock, price lists for outside services, hourly charge-out rates, overhead recovery rates; review of successful and unsuccessful quotations; changes required as a result of new equipment and/or staff.

6.2

Demonstration of knowledge includes preparing a proposal showing how the current position of the company can be improved.

6.3

The impact on the company of purchasing new equipment is researched, and options for the purchase are calculated. Range

may include but is not limited to – new equipment costs, costs of additional labour to operate equipment, ancillary plant that will be required, impact on current space, impact on cashflow for creditors and debtors.

6.4

The effects of an anticipated wage increase are explained in terms of impact on the company and charge-out rates.

6.5

Finance options for the new equipment are explained in terms of the different options available. Range

6.6

includes but is not limited to – leasing, bank loan.

A report is prepared that includes own findings on the performance of the company and on the recovery of costs. Range

includes but is not limited to – productivity, hourly charge-out rates, depreciation, handling charges, outside services, financial performance.

Please note Providers must be accredited by NZQA, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.

© New Zealand Qualifications Authority 2014

25011 version 2 Page 6 of 6 Industry Training Organisations must be accredited by NZQA before they can register credits from assessment against unit standards. Accredited providers and Industry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards. Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. Comments on this unit standard Please contact Competenz [email protected] if you wish to suggest changes to the content of this unit standard.

© New Zealand Qualifications Authority 2014