Package for Hospitality Training

(Including Competency Standard, Teacher Focused & Student

Centered Materials and Assessment Tools)

Unit Title:
MANAGE AND PURCHASE STOCK

Unit Code: ITHHGLE17AEM

Acknowledgements

Writer:
Eddy Syachyar, Dip. Hot, Lecturer, STIEPAR YAPARI AKTRIPA Bandung

Others:
Indonesian Hotels and Restaurant Association
Jakarta International Hotels Association
Ministry of Manpower and Transmigration
Ministry of National Education
Ministry of Culture and Tourism
Tourism Training Australia
Australian National Training Authority
Australian Agency for International Development

This package has been produce to provide information that can be used to
complement the materials that are already available. The package is not
intended to replace current resources.

Package for Hospitality Training – Manage and purchase stock i

Glossary

Access and equity

Refers to the fact that training should be accessible to everyone regardless of age, gender,
social, cultural, religious or educational background.

Assessment
The formal process ensuring training meets the standards required by industry. This process
is performed by a qualified assessor within a nationally agreed framework.

Assessor
An assessor is a person who is certified by industry to assess whether a worker is competent
to undertake specific tasks.

Competent
Able to do the job and has all the necessary skills, knowledge and attitude to perform
effectively in the workplace, according to agreed standards.

Competency Based Training

Training that relates to what people must be able to do and measures performance against
agreed standards.

Critical aspects of assessment

Explains the central point of the assessment and the key points to look for when assessing.

Context of assessment
Specifies where, how and by what methods assessment should occur.

Elements
The skills, which make up a unit of competence.

Evidence guide
These are guidelines on how a unit should be assessed.

Fair
Does not disadvantage particular trainees or students.

Flexible
Acknowledges that there is no single approach to the delivery and assessment of
performance in a competency-based system.

Formative assessment
These are small assessment tasks done during training. They assist in making sure that
learning is taking place and also give the trainees or students’ feedback on their progress.

Key competencies
Competencies that underpin all work performance. These are: collecting, analysing and
organising ideas and information, communicating ideas and information, planning and
organising activities, working with others and in teams, solving problems, using technology,
using mathematical ideas and techniques.

Package for Hospitality Training – Manage and purchase stock ii

These competencies are graded in different levels.
Level of ability to be demonstrated in achieving the key competencies
Level Characteristics
1 Undertakes routine tasks within established procedures and is subject to
frequent progress checks by supervisor.
2 Undertakes broader and more complex tasks with increasing personal autonomy
for own work. Supervisor upon completion checks work.
3 Undertakes complex and non-routine activities, is self directed and responsible
for the work of others.

Linkages to other units

Describes the role of the unit and its place within the full set of competencies specified by
industry. It provides guidance as to which units may be assessed together.

National competency standards

Nationally agreed statements of the skills and knowledge that people need at work and the
standards of performance that are required.

Performance criteria
This is used to judge whether an individual has achieved competence in a unit.

Range of variables
This details the range of different contexts that may apply to a particular unit.

Reliable
Uses methods and procedures that confirm that the competency standards and their levels
are interpreted and applied consistently in all contexts and to all trainees or students.

Standards and certification institute

Ministry of Manpower and Transmigration (MOMT) has given authority to Indonesian Hotels
and Restaurants Association (PHRI) and Association of Indonesian Tours and Travel
Agencies (ASITA) to establish the Institute for the Standardisation and Certification of the
competency of Indonesian workers in the hospitality and tourism industry. The institute will
develop competency standards and information systems for the Standardisation and
Certification of competencies as well as administer competency tests and certify Indonesian
workers in the hospitality and tourism industry.

Summative assessment
The assessment done after training of the completed unit of competence to ensure that
Trainees or students have achieved the performance criteria.

Trainee or student
A trainee or student is a person who is being taught knowledge or skills.

Trainer or teacher or teacher

A Trainer or teacher or teacher is a person who facilitates learning.

Underpinning skills and knowledge

Defines the skills and knowledge required to be competent at the specified level.

Unit descriptor
A general description of the competency standard.

Valid
Judgement on the same evidence and criteria will produce the same assessment outcomes
from different assessors.

Package for Hospitality Training – Manage and purchase stock iii

 Table of Contents

1. Introduction to this guide

1.1 Introduction______________________________________________1
1.2 Time required to achieve competency__________________________1
2. Help for the Trainer or teacher or teacher
2.1 The role of the Trainer or teacher or teacher_____________________2
2.2 Delivery strategies_________________________________________2
2.3 Delivery requirements______________________________________2
2.4 Sources of additional information_____________________________2
3. The competency standard
3.1 Use of the competency standard______________________________3
3.2 Competency standard______________________________________3
4. Delivery strategy
4.1 The content plan__________________________________________5
4.2 How to teach the competency standard________________________8
4.3 Support materials (Overhead transparencies/Handouts)__________10
5. Assessment
5.1 Workplace assessment issues______________________________25
5.1.1 Workplace assessment.....................................................................25
5.1.2 Competent.........................................................................................25
5.1.3 Recognition of current competence...................................................25
5.1.4 Assessors..........................................................................................25
5.2 Underpinning skills and knowledge___________________________25
5.2.1 Assessment of underpinning skills and knowledge...........................25
5.2.2 Examples of assessment tasks.........................................................26
5.3 Suggested assessment for Manage and purchase stock__________26

Appendices

1 Competency assessment result.

2 Group trainee or student assessment record.
3 List of overheads and handouts.
4 Trainee or student evaluation sheet.
5 Amendment list.
Table of Contents
Section 1
Introduction to this guide
1.1 Introduction
Welcome to this guide.

This guide uses Competency Based Training to teach workplace skills. It is based on
competency standard that is a nationally agreed statement of the skills, attitude and
knowledge needed for a particular task. The major emphasis is on what an individual can do
as a result of training. One of the most important characteristics of Competency Based
Training is its focus on training individuals for actual jobs in the workplace.

This will help you teach the competency Manage and purchase stock.

This guide deals with the skills and knowledge required to establish stock control and stock
purchasing systems within a tourism or hospitality context.

Linkages to other units

1. This unit should be assessed with or after the following units:
a. ITHHGCS08AES Establish and conduct business relationships
b. ITHHGLE03AES Develop and implement operational plans.
2. Care should be taken in developing training to meet the requirements of this unit. For
general and prevocational training, organisations providing training must take into
consideration the full range of industry contexts, with no basis towards individual sectors.
The Range of Variables will assist in this regard. For sector-specific delivery, training
should be tailored to meet the needs of that sector.
Teachers and Trainer or teachers should structure their sessions according to the:
 needs of their trainees or students
 requirements of their organisation
 time available for training
 training situation.

A delivery strategy has been provided for the teachers and Trainer or teachers. The
suggested content gives an indication of what needs to be covered in the program to meet the
competency standard.

The delivery strategy used and assessment provided in this unit are not compulsory and
should be used as a guide. Trainer or teachers are encouraged to utilise their own industry
knowledge, experience, local examples and products to adapt the materials or develop their
own resources, in order to ensure the relevance of the training.

1.2 Time required to achieve competency

Under Competency Based Training, the focus should be on achieving competence, not on
fulfilling a particular time requirement, as different trainees or students may take different
lengths of time to be competent in a particular skill.

Package for Hospitality Training – Manage and purchase stock 1

Section 2
Help for the Trainer or
teacher or teacher
2.1 The role of the Trainer or teacher or teacher

One of your roles as a trainer or teacher is to ensure high standards of service through
effective training. To ensure that you are ready to start working on this competency with
trainees or students, consider the following questions:
How confident do you feel about your own knowledge and skills required to deliver each
element?
Is there any new information or laws that you may need to access before you start training?
Do you feel confident about demonstrating the practical tasks?
Will you be able to clearly explain the underpinning knowledge that your trainee or student will
need to do the job properly?
Are you aware of the scope of industry situations in which the competency may apply?
Are you aware of the language, literacy and numeracy skills your trainees or students need to
demonstrate competency in this standard?
Have you consider access and equity issues in planning the delivery of this training program?

2.2 Delivery strategies

The range of training activities that has been suggested for delivering this competency may
include:
 actual tasks
 projects and assignments
 case studies
 lectures
 videos and references
 group activities
 role plays and simulations.

Trainer or teachers should select training strategies that are appropriate for the competency
being taught, the situation and the needs of the learners. For example, if practising on-the-job
is not possible, varied simulations and role-plays may be appropriate.

2.3 Delivery requirements

Classroom space for delivery to trainees or students, whiteboard / blackboard, overhead
projector, overhead projector screen, flip chart, flip chart paper and multimedia.

2.4 Source of additional information

Sources of information may include some of the following categories:
 text books
 professional journals
 Tourism Training Australia website: www.tourismtraining.com.au
 Industry Associations – Indonesian Hotels and Restaurant Association (PHRI)
Jl. R.P. Soeroso 27 27 GHI (Gondangdia lama) Jakarta 10350
Phone: (021) 310 2922
 Teacher Associations – PPPG
Jl. Raya Parung KM.22-23 Bojongsari, Sawangan – Bogor
Phone: (021) 743 1271

Package for Hospitality Training – Manage and purchase stock 2

Section 3
The competency
standard
3.1 Use of the competency standard
In a training situation the competency standard assists the trainer or teacher to:
 identify what trainees or students have to do
 identify what trainees or students have already done
 check trainees or students’ progress
 ensure that all elements and performance criteria in training and assessing are
covered.

3.2 Competency standard

UNIT ITHHGLE17AES MANAGE AND PURCHASE STOCK

UNIT DESCRIPTOR This unit deals with the skills and knowledge required to
establish stock control and stock purchasing systems within
a tourism or hospitality context.

ELEMENTS PERFORMANCE CRITERIA

01 Establish and 1.1 An order and supply process is established and
implement an order implemented in the workplace.
and supply process 1.2 Economic order qualities are established based on
internal information and supplier advice.
1.3 Stock levels are determined according to peak
seasons, special events and supplier's lead time.
1.4 Process is developed to include monitoring of
quality during supply and delivery processes.
02 Establish and 2.1 Stock control systems are developed and
implement stock communicated to all appropriate staff.
control systems 2.2 Special control systems are applied to items
showing high wastage or loss.
2.3 A range of data is used to calculate standard
methods and measures and these are
communicated to appropriate staff.
2.4 Systems are monitored in the workplace and
adjustments made according to feedback and
operational experience.
2.5 Staffs are trained to minimise stock wastage.
03 Develop optimum 3.1 Quality of supply is evaluated based on feedback
supply arrangements from colleagues and customers.
3.2 Potential suppliers are sourced and reviewed
against enterprise requirements.
3.3 Purchase specifications are developed.
3.4 Suppliers are assessed against specifications.
3.5 Sources of supply are amended in accordance with
assessment.

RANGE OF VARIABLES
1. This unit applies to all hospitality establishments.
2. Stock may include but is not limited to:
2.1 Food and beverage
2.2 Linen
2.3 Housekeeping supplies

Package for Hospitality Training – Manage and purchase stock 3

 2.4 Stationery
2.5 Cleaning agents and chemicals
2.6 General stores.
3. Data for establishing stock control systems may include but is not limited to:
3.1 Yield tests
3.2 Historical sales figures
3.3 Stocktaking figures.
4. Stock control systems may include but are not limited to:
4.1 Integrated point of sale systems
4.2 Impress
4.3 Ledgers
4.4 Bin cards
4.5 Stock taking systems
4.6 Stock valuation systems
4.7 Stock reporting systems.

EVIDENCE GUIDE
1. Underpinning Skills and Knowledge:
1.1 To demonstrate competence, evidence of skills and knowledge in the
following areas is required:
a. methods of stock valuation
b. methods of yield testing
c. planning
d. supplier and market knowledge.
2. Context of Assessment:
2.1 This unit may be assessed on or off-the-job. Assessment should include
practical demonstration either in the workplace or through a simulation.
Portfolios of evidence relating to workplace experience may be appropriate.
Simulated activities must closely reflect the workplace and may need to take
place over a period of time to allow the candidate to address the ongoing
implementation and monitoring aspects of this unit. This should be
supported by a range of methods to assess underpinning knowledge.
3. Critical Aspects of Assessment:
3.1 Look for:
a. ability to develop and stock purchasing and control systems within a
specific tourism or hospitality context.
4. Linkages to Other Units:
4.1 This unit should be assessed with or after the following units:
a. ITHHGCS08AES Establish and Conduct Business Relationships
b. ITHHGLE03AES Develop and Implement Operational Plans.
4.2 Care should be taken in developing training to meet the requirements of this
unit. For generic prevocational training, organisations should provide
training that considers the full range of industry contexts with no basis
towards individual sectors. The Range of Variables will assist in this regard.
For sector specific delivery, training should be tailored to meet the needs of
that sector.

KEY COMPETENCIES IN THIS LEVEL KEY COMPETENCIES IN THIS LEVEL

UNIT UNIT

Collecting, organising and 3 Using mathematical ideas and 2

analysing information techniques

Communicating ideas and 3 Solving problems 3

information

Planning and organising activities 3 Using technology 2

Package for Hospitality Training – Manage and purchase stock 4

 Working with others and in teams 3

Package for Hospitality Training – Manage and purchase stock 5

Section 4
Delivery strategy
4.1 The content plan
Note: In delivering the training below, teachers, Trainer or teachers, Trainees or students, students and assessors ensure
compliance with full details contained in the competency standard.
Element and Performance Range of Variables Additional Content Training Topics Activity Visual
Criteria
01. Establish and implement an This unit applies to all hospitality
order and supply process. establishments.
1.1 An order and supply process An order and supply The purchasing procedures Dis HO 1
is established and process.
implemented in the workplace.
1.2 Economic order quantities are Data for establishing stock control Economic order quantity Control activities related to Dis OHT 1
established, based on internal systems may include but is not purchasing.
information and supplier limited to:
advice.  yield tests
 historical sales figures
 stock-take figures.
1.3 Stock levels are determined Stock control systems may Forecasting Storage recording system: Dis HO 2
according to peak seasons, include but are not limited to:  stock records cards
special events and supplier’s  integrated point of sale  physical inventory
lead-time. systems form.
 impress
 ledgers
 bin cards
 stock taking systems
 stock valuation systems
 stock reporting systems.
1.4 Process is developed to Stock may include but is not Purchase order Check and report the Dis OHT 2
include monitoring of quality limited to: condition of stocks. HO 3
during supply and delivery  food and beverage
processes.  linen
 housekeeping supplies

Package for Hospitality Training – Manage and purchase stock 5

 Element and Performance Range of Variables Additional Content Training Topics Activity Visual
Criteria
 stationery
 cleaning agents and
chemicals
 general stores.

02. Establish and implement Stock control systems may

stock control systems. include but are not limited to:
2.1 Stock control systems are  integrated point of sale Control system Designing and Dis HO 4
developed and systems Implementation implementing control
communicated to all  impress systems
appropriate staff.  ledgers
 bin cards
 stock taking systems
 stock valuation systems
 stock reporting systems.
2.2 Special control systems are Special control systems Inventory control Dis OHT 3
applied to items showing procedures
high wastage or loss.
2.3 A range of data is used to Data for establishing stock control Requisition order and See 2.1 Pre
calculate standard methods systems may include but is not bin card Dis
and measures and these are limited to:
communicated to  yield tests
appropriate staff.  historical sales figures
 stock-take figures.
2.4 Systems are monitored in Effective performance Dis. OHT 4
the workplace and standard
adjustments made according
to feedback and operating
experience.
2.5 Staffs are trained to General procedure for Prevention of pilferage and Dis OHT 5
minimise stock wastage. control storage thefts

Package for Hospitality Training – Manage and purchase stock 6

 Element and Performance Range of Variables Additional Content Training Topics Activity Visual
Criteria
03. Develop optimum supply
arrangements
3.1 Quality of supply is evaluated Security concern during Receiving procedures Dis OHT 6
based on feedback from storage
colleagues and customers.
3.2 Potential suppliers are Potential suppliers Selecting suppliers Dis OHT 7
sourced and reviewed HO 5
against enterprise
requirements.
3.3 Purchase specifications are Purchase specifications Standard purchase Pre OHT 8
developed. specifications Dis HO 6

3.4 Suppliers are assessed Selecting of suppliers See: 3.2 Dis

against specifications.
3.5 Sources of supply are Minimum/maximum stock The cycle of purchase Pres OHT 9
amended in accordance with Dis
assessment.

Legend:
Brainstorm – B Guest Speaker – GS Project – Pro
Case Study – CS Handout – HO Questioning – Q
Demonstration – Dem Multimedia – MM Role Play – RP
Discussion – Dis Overhead Transparency – OHT Research – R
Excursion – Ex Practical Application – PA Simulation – S
Group Work – GW Presentation – Pre Video – V

Package for Hospitality Training – Manage and purchase stock 7

4.2 How to teach the competency standard
What skills, knowledge and How will I transfer the skills, knowledge and attitude to the trainee or student?
attitude do I want the trainee or
student to have?
The purchasing procedures Trainer or teacher to show Handout 1 [The purchasing procedures] and discuss with trainees or students
about that topic.

Control activities related to purchasing Trainer or teacher to show OHT 1 [Control activities related to purchasing] and discuss with the trainees or
students about the control activities.

Storage recording system Trainer or teacher to show Handout 2 [Storage recording system], and trainees or students come to
practical.

Check and report the quality of stocks Trainer or teacher to show and discuss OHT 2 [Checking and reporting the quality of stocks] and Handout
3 [Checking and reporting the quality of stocks].
Trainees or students one point at a time the ways to check and report the quality of stocks.

Designing and implementing control Trainer or teacher to show and discuss Handout 4 [Designing and implementing control system] with the
systems trainees or students.

Inventory control procedures Trainer or teacher to show and discuss OHT 3 [Inventory control procedures], with trainees or students
about the sequence of inventory control and document needed.

Effective performance standard Trainer or teacher to show and discuss OHT 4 [Effective performance standard] with the trainees or
students.

Prevention of pilferage and theft Trainer or teacher to show and discuss OHT 5 [Prevention of pilferage and theft] with the Trainees or
students understanding.

Receiving procedures Trainer or teacher to show and discuss OHT 6 [Receiving procedures] with the trainees or students.

Selecting suppliers Trainer or teacher to show and discuss OHT 7 and Handout 5 [Selecting suppliers] with the trainees or
students to demonstrate an understanding about how to selected suppliers.

Package for Hospitality Training – Manage and purchase stock 8

 What skills, knowledge and
attitude do I want the trainee or
student to have?
Standard purchase specification
How will I transfer the skills, knowledge and attitude to the trainee or student?
Trainer or teacher to show and discuss OHT 8 and Handout 6 [Standard purchase specifications] with the
trainees or students about the standard purchase.

The cycle of purchase Trainer or teacher to give the trainees or students OHT 9 [The cycle of purchase].
Trainees or students to practice.

Package for Hospitality Training – Manage and purchase stock 9

4.3 Support materials
(Overhead transparencies/
Handouts)
 HO 1

The purchasing procedures

Step by step purchasing procedures is as

follows:
1. The food and beverage manager/department
completes an issue requisition when it needs
items.
2. The storeroom issues required products to the
user department.
3. When the products reach a predetermined re-
order point, the storeroom forwards a purchase
requisition to the purchasing department.
4. The purchasing department orders required
products from the suppliers, perhaps using a
purchase order.
5. The supplier delivers the products to the
receiving department along with a delivery
notice.
6. The receiving department transfer products to
the storeroom and forwards the invoice,
perhaps with other documents, to the
purchasing department.
7. After necessary processing, the purchasing
department transmits source document to the
accounting department.
8. After further processing, the accounting
department sends payment to the suppliers.

Package for Hospitality Training – Manage and purchase stock 10

 OHT 1

Control activities related to purchasing

1. Make a spot check of quotation sheet.

2. Compare prices with friendly competitors buying

similar merchandise.

3. Analyse the distribution of the purchases to

different suppliers.

4. Examine merchandise on hand.

5. Make a forecast of price trends for future trading

periods.

Package for Hospitality Training – Manage and purchase stock 11

 HO 2

Storage recording system

Reason for systems:

 receiving deliveries, checking them into storage
and tagging or making them with the date
received and the price paid.
 maintaining orderly arrangement and
cleanliness in storage areas.
 informing the supervisor when stocks are low or
when they need attention.
 assisting in food pricing and in the taking of
inventory.
 ensuring that stocks are rotated and that foods
are used promptly.

Recording systems:
 stock records cards used to indicate the quantity
of stock that exists on inventory. These cards
are used all items on hand and indicate how
much has been received from purveyors, how
much has been issued and how much remain.
 physical inventory form is an actual count of
what is on the shelves.

Package for Hospitality Training – Manage and purchase stock 12

 OHT 2

Checking and reporting

the quality of stock

To inspect condition of the stock:

1. Check

2. Reports:

 invoice receiving

 blind check receiving.

Package for Hospitality Training – Manage and purchase stock 13

 HO 3

Checking and reporting

the quality of stock

Inspect condition of the stock as follows:

a. Check:
 quality
 suitable temperature and packaging
 damage to packaging and canning
 discoloration, bruises, freezer burns
 odours, moulds, spores
 maturity
 viscosity, clarity
 compositions
 canning dates
 use by dates
 packing dates
 expiration dates.

b. Reports:
 Invoice receiving
The invoice accompanying the delivery is
checked against the merchandise, along with the
specifications, the purchase order, the quotation
and order sheet.

 Blind check receiving

A blind receiving method involves giving the clerk
a blank invoice or purchase order listing the
incoming merchandise but committing the
quantities, quality, weight, and prices.

Package for Hospitality Training – Manage and purchase stock 14

 HO 4

Designing and implementing

control systems

A control system is a series of coordinated activities that

help assure managers that the actual results of operation
closely match the planned results.
Factors to be considered in designing a control
system:
 accuracy
 timeliness
 objectivity
 priorities
 cost effectiveness
 realism
 appropriateness
 flexibility
 specificity
 acceptability.

An effective control system offers:

 feed back on the operation
 identification of problems early so they can be
resolved before they turn into bigger problems
 management the ability to asses the effect of
changes necessitated by the economy, market,
reactions, and competition
 the ability to determine where problems are
occurring in a complex business such as a food and
beverage operation
 to identify and resolve mistakes

Package for Hospitality Training – Manage and purchase stock 15

 the ability to determine whether delegated tasks are
being carried out correctly.

Package for Hospitality Training – Manage and purchase stock 16

 OHT 3

Inventory control procedures

The third major concern in storage after security

and quality retention involves record keeping:

 financial accounting systems

 daily control procedures

 available quantities of products.

Procedures:
 inventory turnover is measured to see how
much money is tied up in a non productive
inventory.

 physical inventory system, periodically assess

the value of food and beverage products in
inventory.

 perpetual inventory system, keep a running

balance of the quantity of food and beverage
products in inventory.

Package for Hospitality Training – Manage and purchase stock 17

 OHT 4

Effective performance standard

Effective performance standards set the benchmark

by which an enterprise operates and should:

 accurately reflect results desired by the

organisation.

 be high enough to encourage excellence but

not so high as to be unattainable and result in
frustration.

 be specific and measurable.

 when attained, be raised slightly to encourage

further creativity and challenge.

 include feedback as part of the control system.

staff members must know how they are doing.

Package for Hospitality Training – Manage and purchase stock 18

 OHT 5

Prevention of pilferage and theft

Once in storage, attention must be given to

maintaining appropriate security at all time.

Prevention measures include:

 adequate locks

 effective control of keys

 never leaving storerooms unattended

 no unauthorised person being permitted in

storage areas

 maintenance of stock records

 strict control over issues

 appropriate supervision.

Package for Hospitality Training – Manage and purchase stock 19

 OHT 6

Receiving procedures

Checking incoming products against the purchase

order or purchase records.

Checking incoming products against quality

specifications.

Checking incoming products against delivery

invoice.

Accepting incoming products, normally by signing

the delivery invoice.

Removing incoming products to storage

immediately. Security to minimise employee theft
is a concern here.

Completing the receiving clerk’s daily report and

any other necessary documents.

Package for Hospitality Training – Manage and purchase stock 20

 OHT 7

Selecting suppliers

Factors to be considered when selecting new

suppliers:

 quality of suppliers operation

 location

 technical ability of suppliers staff

 value

 compatible attitudes

 honesty and fairness.

Package for Hospitality Training – Manage and purchase stock 21

 HO 5

Selecting suppliers

Factors to be considered when selecting new

suppliers:
 quality of supplier’s operation, assess
sanitation, in house processing, handling of
orders, quantity and quality of items in stock.
 location, if the supplier’s facility is close to the
food and beverage operation, delivery time and
transportation costs are reduced, chance of
accidents and similar delays might also be
lessened.
 technical ability of supplier’s staff, good sales,
persons are more than order takers.
 value, reasonable prices related to product
quality has already been discussed.
 compatible attitudes, a good working
relationship between the food and beverage
operation and the supplier requires mutual
beliefs about ethics and fair treatment of both
customer and supplier.
 honesty and fairness, these traits must be seen
in the ongoing business relationship.

Package for Hospitality Training – Manage and purchase stock 22

 OHT 8

Standard purchase specifications

A purchase specifications is a concise

description of the:

 quality

 size

 weight

 price.

Package for Hospitality Training – Manage and purchase stock 23

 HO 6

Standard purchase specifications

Standard purchase specifications, if carefully

prepared, are useful in several ways:

 they force the management team to determine

exact requirements, in advance for any
commodity.

 they eliminate misunderstandings between the

purchaser and purveyors if they are circulated.

 circulation of specifications for one commodity

to several purveyors makes competitive bidding
possible.

 they eliminate the need for detailed verbal

descriptions each time a commodity is ordered.

 they facilitate checking food when it is received.

Package for Hospitality Training – Manage and purchase stock 24

 OHT 9

The cycle of purchase

Department
Department
Issues
Requested Requisition form
Products
Store
Storeroom
room

Purchase requisition
Purchase
Order
Purchasing
Purchasing
Record
Purchase
Order

Accounting
Accounting

Check Invoice

Supplier
Supplier Receiving
Receiving

Delivery Product, Invoice

Package for Hospitality Training – Manage and purchase stock 25

Section 5
Assessment
5.1 Workplace assessment issues

5.1.1 Workplace assessment

Assessment is the process of collecting evidence and making judgements on progress

towards satisfying the performance criteria set out in the competency standard. At the
appropriate point, judgement is made as to whether competence has been achieved.
Assessment identifies the achievements of the trainee rather than relating the performance of
the trainee to other trainees or students.

5.1.2 Competent

Ask yourself the question, “what does an employee really need to be able to do?” The
answer to this question will tell you what we mean by the word “competent”. To be competent
in a work related skill implies that the person is able to:
 perform at an acceptable level of skill
 organise the required tasks
 respond and react appropriately when things go wrong
 fulfil a role in the scheme of things at work
 transfer skills and knowledge to new situations.

When you assess this competency you must take into account all of the above issues to
reflect the real nature of work.

5.1.3 Recognition of current competence

An integrated national assessment principle provides for the recognition of current

competencies regardless of where they have been acquired. Assessment recognises that
individuals can achieve competence in a variety of ways:
 prior qualifications
 informal learning.

Recognition of current competence gathers evidence to assess an individual against

competency standards in order to determine whether they have achieved the required
competence for a job role or for recognition for a formal qualification. The assessment of
recognition of current competence is undertaken by industry certified workplace assessor.

5.1.4 Assessors

In workplace situations, an industry certified assessor would determine whether a worker was
competent to undertake the tasks entailed by this unit of competency. If you are certified to
assess this unit, then you may choose from the methods offered in this guide, or develop your
own to conduct assessment. Assessors must look at the evidence guides in the competency
standards before arriving at the assessment methods to use.

5.2 Underpinning skills and knowledge

5.2.1 Assessment of underpinning skills and knowledge

Evidence should include a demonstrated ability to correctly explain and apply principles and
practices in the hospitality industry.

Package for Hospitality Training – Manage and purchase stock 25

You must now assess your trainee’s or students’ underpinning skills and knowledge. This
section must be completed before you go on to the next section. Underpinning skills and
knowledge for competency standard are:
a methods of stock valuation
b methods of yield testing
c planning
d supplier and market knowledge.

Should your trainees or students not have the underpinning skills and knowledge required,
you must ensure that you deliver this material before you progress to the next section.

This training may be delivered through a variety of activities including:

 theory/practical session
 workplace observation
 workplace training
 questioning – oral/written
 role play
 project work/case study.

5.2.2 Examples of assessment tasks

Use these tasks to determine if your trainees or students have the necessary underpinning
skills and knowledge. The table below can be used to record the result of each student and
what further training is needed.

Assessment tasks Yes No Further training

needed

What is meant by the terms yield testing, impress,

ledger, bin cards?

Describe the steps to follow to establish a stock

control system based on historical sales figures.

Differentiate between a perpetual inventory

system and a periodic inventory system.

Describe the stocktaking system in your

organisation.

5.3 Suggested assessment for Manage and purchase

stock
The following pages list some of the methods that can be used to assess this competency.
The proposed assessments have been designed to address each element, performance
criteria and underpinning skills and knowledge for the competency.

Package for Hospitality Training – Manage and purchase stock 26

Results of a successful
assessment should indicate
sufficient and relevant
knowledge and understanding to
be able to infer competence.
Therefore the trainee is assessed
as either competent /
competence to be achieved.
Examples of assessment results
sheets are include in Appendix 1
and 2.

Package for Hospitality Training – Manage and purchase stock 27

 Evidence gathering methods

Assessment of practical demonstration in the workplace may include observation of the trainee:
 observation generally not applicable for this unit.

Third party/documentary evidence may include:

 peer or supervisor report (written or oral)
 reports from suppliers (written or oral)
 details of previous training, work experience
 portfolio which contains purchasing/stock control systems and supporting documents previously prepared by the candidate.

Oral question or some form of written assessment/project would be useful to determine underpinning knowledge such as:
 methods of stock valuation
 method of yield testing
 planning techniques
 supplier and market knowledge.

In off-the-job assessment, simulated activities could be used to allow the trainee to provide of skills through practical
demonstration:
 project/workplace scenario which requires the candidate to establish and implement an order and supply process which develop
optimum supply arrangements for the enterprise.
 project/workplace scenario which requires the candidate to establish and implement a stock control system.

Package for Hospitality Training – Manage and purchase stock 28

Sample methods On-the- Job Off-the- Job

1. You have just been employed to manage a small tourism operation, which has grown rapidly in the last ü
few years. The shop, which began as a small craft outlet, has also grown and now accounts to a
large percentage of your revenue and profit. It sells a variety of products including souvenirs,
clothing, postcards, food and beverage. Systems to manage purchasing and control of stock have
never been developed resulting in high wastage and frequent stock shortages. Investigate the
options and develop a suitable system for managing and purchasing of stock. This may be
automated or manual.

2. Develop purchase specifications for a range of items (eg retail stock, printed materials, operating
ü
materials) used in the place where you work. Clearly identify the criteria, which must be met by the
supplier. Then, calculate the economic order quantity (EOQ) for the items. Finally, calculate the re-
order point.

Questions On-the- Job Off-the- Job

Questioning should focus on:
1. Techniques and processes ü
 Describe the steps to follow to establish an order and supply system. ü
 What are the advantages of having purchase specifications?
ü
 What are the most important factors when assessing suppliers against a purchase
specification?
2. Organisation and planning
 How do you calculate an economic order quantity and a re-order point? ü
 What events can affect lead-time in ordering stock? ü
3. Communication with others
 Regarding quality of supply, what feedback do you ask for from colleagues and from ü
customers? How do you obtain this feedback?
4. Problem solving
 What elements should be covered in a training program to minimise stock wastage? ü
5. Health and safety
 What are the safety issues to consider in the storage of stock? ü

Package for Hospitality Training – Manage and purchase stock 29

Package for Hospitality Training – Manage and purchase stock 30
Appendices
 Appendix 1

Competency assessment result

Unit code: ITHHGLE17AEA Title: Manage and purchase
stock

Trainee or student name:

Assessor name:

The Trainee was assessed as: Competent 

Competency to be achieved 
Feedback to trainee

Signatures

The trainee has been informed of the Signature of assessor:

assessment result and the reasons for
the decision

Date:

I have been informed of the Signature of trainee:

assessment result and the reasons for
the decision

Date:

Package for Hospitality Training – Manage and purchase stock Appendix 1 - Page 1
 Appendix 2

Group trainee or student assessment record

Unit code: ITHHGLE17AEA Title: Manage and purchase
stock

Group:

Assessor name:

Trainee name Competent Competency

to be
achieved

Package for Hospitality Training – Manage and purchase stock Appendix 2 - Page 1
 Appendix 3

List of overheads and handouts

Overhead Handout Title

number number
(OHT) (HO)
1 The purchasing procedures

1 Control activities related to

purchasing

2 Storage recording system

2 3 Checking and reporting the

quality of stock

4 Designing and implementing

control systems

3 Inventory control procedures

4 Effective performance standard

5 Prevention of pilferage and theft

6 Receiving procedures

7 5 Selecting suppliers

8 6 Standard purchase specifications

9 The cycle of purchase

Package for Hospitality Training – Manage and purchase stock Appendix 3 – Page 1
 Appendix 4

Trainee or student evaluation sheet

Unit code: ITHHGLE17AEA Title: Manage and purchase

stock

Agree Don’t Disagree Doesn’t

The following statements are about the competency
know apply
you have just completed. Please tick the appropriate
box.
1. There was too much in this competency to
cover without rushing.    
2. Most of the competency seemed relevant to me.
   
3. The competency was at the right level for me.
   
4. I got enough help from my trainer.
   
5. The amount of activities was sufficient.
   
6. The competency allowed me to use my own
initiative.    
7. My training was well organised.
   
8. My trainer had time to answer my questions.
   
9. I understood how I was going to be assessed.
   
10. I was given enough time to practice.
   
11. My trainer feedback was useful.
   
12. Enough equipment was available and it worked
well.    
13. The activities were too hard for me.
   

The best things about this unit were

The worst things about this unit were

The things you should change in this unit are

Package for Hospitality Training – Manage and purchase stock Appendix 4 – Page 1
 Appendix 5

Hotel and Restaurant Materials

Amendment List

Unit code: ITHHGLE17AEM

Unit title: Manage and purchase stock

Example:

No Amendment Version Page Line Amender Date

number number number initials completed

1. Replace ‘garish’ into ‘garnishes’ A 34 5 WW 12 Mar. 02

Amendment Version Page Line Amender Date

No number number number initials completed

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Package for Hospitality Training – Manage and purchase stock Appendix 5 – Page 1