PROWFP1 - Purchase raw materials or equipment for wood fuel production
Overview
This standard covers the skills and knowledge required to select and evaluate of suppliers and their supplies in terms of reliability, availability, cost effectiveness, quality, terms and how closely they match your specification. It is also about considering other things such as their compatibility with existing stock and any special actions you may have to carry out such as installation and training as a result of obtaining them.
It applies to obtaining the feedstock, machinery, tools or other equipment that you need for the production of wood chips, wood pellets, wood briquettes, firewood or charcoal.
Outcomes
Performance Criteria
You must be able to:
1. comply with health and safety requirements and procedures at all times
2. decide on quantities and specifications of raw materials or equipment that will meet current and future production requirements
3. decide how often and when you will need any regular supplies of raw materials or equipment and match this to financial plans
4. stay within targets and limits for buying raw materials or equipment
5. find out about the different suppliers and buying options available
6. compare costs and benefits of purchasing raw materials or equipment from different suppliers
7. prioritise and balance options against production and organisational needs
8. agree favourable cost and terms for buying equipment and raw materials
9. keep accurate records of agreements with suppliers and make sure the appropriate people see them
10. comply with the laws and regulations for purchasing
11. ensure raw materials or equipment are supplied when you require them
12. use an efficient system for monitoring supply levels and any reordering that may be necessary
Knowledge & Understanding
You need to know and understand:
1. legal duties for health and safety in the workplace and legislation covering your job role
2. organisation’s aims for products, market share, price profitability, cash flow, projected turnover, capital and assets
3. information gathered about current and future needs for raw materials or equipment
4. how to work out what you need and when you need it.
5. how to ensure best value when getting supplies
6. how to work out the full costs of supplies, including price of supplies, stock handling, storage, late delivery, insurance, staff training, installation
7. how to weigh costs against benefits of different buying options
8. how to compare results of analysis against expected profit margins
9. benefits and disadvantages of new, second-hand, hire purchase or short term leasing
10. sustainability credentials of end products and how to calculate carbon savings
11. links between quality of raw material and quality of end product
12. what you need to find out about different suppliers including price, hidden costs, quality of product, reliability, minimum order quantities, delivery time and payment terms.
13. how to make good use of working capital
14. how to store and control stock of raw materials and equipment
15. shelf life and storage requirements of raw materials and equipment
16. how to reduce waste and get rid of waste products
17. laws and regulations you need to follow when purchasing raw materials and equipment
PROWFP1 - Purchase raw materials or equipment for wood fuel production
Overview
This standard covers the skills and knowledge required to select and evaluate of suppliers and their supplies in terms of reliability, availability, cost effectiveness, quality, terms and how closely they match your specification. It is also about considering other things such as their compatibility with existing stock and any special actions you may have to carry out such as installation and training as a result of obtaining them.
It applies to obtaining the feedstock, machinery, tools or other equipment that you need for the production of wood chips, wood pellets, wood briquettes, firewood or charcoal.
Outcomes
Performance Criteria
You must be able to:
1. comply with health and safety requirements and procedures at all times
2. decide on quantities and specifications of raw materials or equipment that will meet current and future production requirements
3. decide how often and when you will need any regular supplies of raw materials or equipment and match this to financial plans
4. stay within targets and limits for buying raw materials or equipment
5. find out about the different suppliers and buying options available
6. compare costs and benefits of purchasing raw materials or equipment from different suppliers
7. prioritise and balance options against production and organisational needs
8. agree favourable cost and terms for buying equipment and raw materials
9. keep accurate records of agreements with suppliers and make sure the appropriate people see them
10. comply with the laws and regulations for purchasing
11. ensure raw materials or equipment are supplied when you require them
12. use an efficient system for monitoring supply levels and any reordering that may be necessary
Knowledge & Understanding
You need to know and understand:
1. legal duties for health and safety in the workplace and legislation covering your job role
2. organisation’s aims for products, market share, price profitability, cash flow, projected turnover, capital and assets
3. information gathered about current and future needs for raw materials or equipment
4. how to work out what you need and when you need it.
5. how to ensure best value when getting supplies
6. how to work out the full costs of supplies, including price of supplies, stock handling, storage, late delivery, insurance, staff training, installation
7. how to weigh costs against benefits of different buying options
8. how to compare results of analysis against expected profit margins
9. benefits and disadvantages of new, second-hand, hire purchase or short term leasing
10. sustainability credentials of end products and how to calculate carbon savings
11. links between quality of raw material and quality of end product
12. what you need to find out about different suppliers including price, hidden costs, quality of product, reliability, minimum order quantities, delivery time and payment terms.
13. how to make good use of working capital
14. how to store and control stock of raw materials and equipment
15. shelf life and storage requirements of raw materials and equipment
16. how to reduce waste and get rid of waste products
17. laws and regulations you need to follow when purchasing raw materials and equipment