CILT International Introductory Certificate in Logistics & Transport

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1 CILT International Introductory Certificate in Logistics & Transport Wisdom Educational Institute CILT Accredited Center

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3 Chartered Institute of Logistics and Transport (UK), 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Chartered Institute of Logistics and Transport (UK). CILT International Introductory Certificate in Logistics and Transport Syllabus for Accredited Learning Centres Version 2 April 2011 Document Owner: CILT(UK) Awarding Organisation Manager

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5 Contents Guidance Notes 1 Mandatory Units 4 M1-L2 Introduction to Logistics 6 M2-L2 Introduction to Customer Service and Marketing 16 Option Units 26 O1-L2 Introduction to Freight Transport Services 28 O2-L2 Introduction to Passenger Transport Services 38 O3-L2 Introduction to Warehousing and Inventory 48 O4-L2 Introduction to Purchasing 60 O5-L2 Introduction to Planning and Operation of Freight Transport 72 O6-L2 Introduction to Planning and Operating Passenger Transport 84

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7 Guidance Notes Introduction This document defines the standards of the new CILT International Introductory Certificate in Logistics and Transport. Structure of the Qualification: This is a professional qualification requiring 160 guided learning hours. To achieve the CILT International Introductory Certificate in Logistics and Transport, learners must study and pass two mandatory units and two option units. Option units allow learners to specialise in different areas of logistics and transport and choose units that suit themselves and their employer. A summary of the units is as follows and full details are provided later in this document: Code Title Status M1-L2 Introduction to Logistics Mandatory M2-L2 Introduction to Customer Service and Marketing Mandatory O1-L2 Introduction to Freight Transport Services Option O2-L2 Introduction to Passenger Transport Services Option O3-L2 Introduction to Warehousing and Inventory Option O4-L2 Introduction to Purchasing Option O5-L2 Introduction to Planning and Operation of Freight Option Transport O6-L2 Introduction to Planning and Operating Passenger Option Transport Pathways CILT International Introductory Certificate in Freight Transport This will be awarded to learners who have completed: M1-L2 Introduction to Logistics M2-L2 Introduction to Customer Service and Marketing O1-L2 Introduction to Freight Transport Services O5-L2 Introduction to Planning and Operation of Freight Transport CILT International Introductory Certificate in Passenger Transport This will be awarded to learners who have completed: M1-L2 Introduction to Logistics M2-L2 Introduction to Customer Service and Marketing O2-L2 Introduction to Passenger Transport Services 1

8 O6-L2 Introduction to Planning and Operating Passenger Transport CILT International Introductory Certificate in Supply Chain This will be awarded to learners who have completed: M1-L2 Introduction to Logistics M2-L2 Introduction to Customer Service and Marketing O3-L2 Introduction to Warehousing and Inventory O4-L2 Introduction to Purchasing CILT International Introductory Certificate in Transport Planning and Operations This will be awarded to learners who have completed: M1-L2 Introduction to Logistics M2-L2 Introduction to Customer Service and Marketing O5-L2 Introduction to Planning and Operation of Freight Transport O6-L2 Introduction to Planning and Operating Passenger Transport CILT International Introductory Certificate in Logistics and Transport This will be awarded to learners who do not wish to specialise in any one area and who have completed any other combination of option units than those listed above. Short Awards Each unit can be provided as a short course with assessment and CILT certification. Assessment All learners must take and pass a written examination in the two mandatory units and two optional units. Each unit will be assessed by means of a 30- question examination paper. The exams will comprise a selection of multiplechoice questions and short answer questions requiring an answer in the form of short sentences or a simple calculation. The examination will be of 1 hour s duration. All examinations are closed book and the pass mark for each examination will be 50%. All examinations must be completed within 2 years of initial enrolment. Examination papers are obtained from CILT(UK) and must be booked 6 weeks prior to the examination date. To order an examination paper, please contact or telephone +44(0)

9 Examination papers will be ed from CILT(UK) two days before the examination date. Answer papers will not be ed until the day following the examination. Moderation: Centres will be responsible for invigilating and marking examinations. CILT will moderate a proportion of marked scripts. Contact: Costs: $ 3000 Enrolment fees with CILT per student which includes: Course materials Assessment fees Certification fees One year access to e-services offered by CILT(UK). This includes: Access to records of 33,000 journals and 12,00 books Full text articles from 4,500 journals 10,000 global economy reports 800 newspapers from 78 countries in 39 languages for last 60 days Webshop with over 800,000 titles Enrolments on individual units as short awards are not eligible for student membership of CILT or access to e-services. Enrolment Students enrol and pay their fees to the CILT Accredited Learning Centre Further Study Upon completion of this qualification, learners can continue their studies by enrolling on the Level 3 CILT International Certificate in Logistics and Transport. 1 One examination per unit (a total of FOUR examinations) is included in the assessment fees. If re-sits are required, they will be charged at 60 per paper. 3

10 Standards for the CILT International Introductory Certificate in Logistics and Transport Mandatory Units M1-L2 Introduction to Logistics M2-L2 Introduction to Customer Service and Marketing 4

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12 M1-L2 Introduction to Logistics Unit purpose and aim This unit is designed to introduce students to the concept of logistics in its widest sense and to some of the general practices that are important in every part of the logistics working environment. The Unit is made up of four elements that contain sufficient knowledge for students starting out on a logistics career, wherever they may be employed within a logistics context. In each of these sections the emphasis is placed on the principles involved. The programme aims to equip students with a solid foundation of knowledge on which they can build with experience. Elements M1-1 Understanding Logistics M1-2 People in the Logistics Working Environment M1-3 Sustainability and the Environment M1-4 The Role of Communications Technology in Context 6

13 Element M1-1 Learning Outcomes The learner will: 1.1. Understand the purpose and scope of logistics. Understanding Logistics Assessment Outcomes The learner can: Describe the purpose and scope of logistics Know the features of a supply chain Describe the features of a supply chain Know the features of different types of supply chain Know what logistics activities are used by organisations Understand the contribution of logistics to organisational objectives Identify the logistical decision factors Understand the principle of the total cost approach Know the elements of a total cost model Understand how trade-offs are used to produce optimal logistics solutions Differentiate the features of a range of supply chains Describe the types of logistics activities carried out in a range of organisations Recognise opportunities for logistics operations to contribute to organisational objectives Describe the logistical decision factors Apply decision factors in a range of logistical situations Describe the principle of the total cost approach Explain the purpose of total costing Demonstrate how a total cost model is built up from separate cost elements Perform a simple total cost calculation Describe the purpose of trade-offs Demonstrate the use of trade-offs in a range of logistics situations. 7

14 Indicative Content The nature of logistics and supply chains. The role of logistics. Organisational and logistics objectives. Factors in logistics decision making. The logistics solution. Logistics related activities; different types of supply chains, e.g. Automotive; Chemical and Petroleum; Clothing and Footwear; Construction; Electronics and Electrical; Food and Drink; Furniture and Furnishings; Paper and Printing; Pharmaceutical and Healthcare; Utilities; Third Party Logistics; Schools; Passenger Transport. Organisations as users of logistics and transport. How logistics contributes to achieving the organisation s objectives. Demand; distance; cost; resource availability; regulations; customers requirements. Trade-off between factors to achieve best result; total cost approach. 8

15 Element M1-2 Learning Outcomes The learner will: 2.1. Know the operational characteristics of organisations in the public, private and not-for-profit sectors Understand the logistics roles and responsibilities of employees in the public, private and not-for-profit sectors Understand the aims of staff training and staff development Know the areas for which there is a requirement for statutory compliance training Understand the benefits and problems of the training and development of logistics employees Know the purpose of health and safety regulations relating to logistics operations Understand the main health and safety issues in logistics operations Know the legal responsibilities of logistics employers and employees relating to health and safety Understand the difference between risk and hazard, for the purposes of risk assessment. People in the Logistics Working Environment Assessment Outcomes The learner can: Describe the operational characteristics of organisations in the public, private and not-for-profit sectors Differentiate between the roles and responsibilities of employees in the public, private and not-for-profit sectors Distinguish between the purpose of staff training and staff development Classify the areas of logistics operations to which statutory compliance training applies Give the positive and negative points for the training and development of a range of logistics employees Define the aims of health and safety regulations for a range of logistics operations Describe the main types of health and safety problems arising from logistics operations Describe the main areas of responsibility for logistics employers and employees Describe the health and safety training requirements for a range of logistics employees Define risk and hazard in the context of risk assessment. 9

16 Learning Outcomes The learner will: Know the process used for a health and safety risk assessment. Assessment Outcomes The learner can: Perform a simple risk assessment appropriate to an area of a logistics operation. Indicative Content The working environment. Logistics roles and responsibilities. Training and development. Health and safety. Risk assessment Different types of organisations: private sector (large and small); public sector; not-for-profit; relevant features and specific issues. Types of jobs and their key functions. Definitions; statutory and optional training; Continuing Professional Development (CPD); careers and progression. Implications for organisations and individuals; ethical behaviour; individual responsibilities; training requirements; regulations affecting logistics operations The nature of risk; the nature of hazards; the need for vigilance; risk assessment process; the need for action. 10

17 Element M1-3 Learning Outcomes The learner will: 3.1. Know the main requirements for a sustainable environment Understand the importance of sustainable logistics operations Understand the features of sustainable logistics practices Know the main environmental and global challenges Understand the main areas in which change to sustainable practices is needed Understand how good practice in the workplace can be developed into long-term initiatives. Sustainability and the Environment Assessment Outcomes The learner can: Define the features of a sustainable environment Describe the reasons for developing sustainable logistics operations Describe the problems arising from environmentally unacceptable practices Describe the positive and negative points of sustainable good practice in logistics operations Use a range of examples to illustrate environmentally unacceptable impacts of logistics in each of the following areas: industrial; commercial; social and economic Estimate the areas of key importance for change towards sustainable practice Assess the opportunities for using good practice to make long-term improvements in sustainability. 11

18 Indicative Content Sustainability. Environmentally acceptable ways of working. Current considerations and challenges. Good practice. Definition. The need to ensure sustainability. Sustainable practices, good and best practice, problems if industry fails to respond. An assessment of a sample of current world issues, related to the environment and the need for change. Actions able to be taken at work in order to support and protect the environment, e.g. an overview of ISO

19 Element M1-4 Learning Outcomes The learner will: 4.1. Know the respective characteristics of data, information and knowledge Know the main elements used in Information Communications Technology (ICT) Understand the reasons for using operating systems Know the features of standard ICT applications used in logistics operations Know how ICT can be used in a logistics operation Know the main e-business applications Know the main legal responsibilities of organisations for data protection Understand the problems of ensuring data security Know the health and safety requirements relating to users of ICT. The Role of Communications Technology in Context Assessment Outcomes The learner can: Differentiate between data, information and knowledge Define the features of an information system Describe the ICT elements of: hardware; software and systems Describe the purpose and value of using Microsoft Windows and other operating systems Classify the features of a range of standard ICT applications: Microsoft Office; EPOS; RFID and Paragon Perform a range of simple operations appropriate to a logistics context, using ICT applications from one of the following: Microsoft Office; EPOS; RFID or Paragon Describe the features of a range of e-business applications: Internet; Intranet; Extranet; B2B; B2C Describe the main provisions of the Data Protection Act, relating to organisations responsibilities Classify the main data security risks Describe a suitable process for managing data security Describe the scope and main provisions of the Display Screen Regulations Describe the process of a health and safety risk assessment for ICT users. 13

20 Indicative Content Difference between data and information. Elements of ICT. Operating systems. Common applications. E-business. Data security. Data confidentiality. Display Screen Regulations. Nature of data facts and figures used for decision making; the nature of information and knowledge. Hardware; software and systems. Windows and other operating systems. Applications including MS Office and those that relate to logistics (EPOS, RFID and Paragon). Definition; scope; application; Internet; extranets; intranets; B2B and B2C. Hacking; viruses and data back-up. Data Protection Act. Scope and risk assessment. 14

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22 M2-L2 Introduction to Customer Services and Marketing Unit purpose and aim This Unit is designed to introduce students to customer service and the principles of marketing. The Unit is made up of four elements that contain sufficient knowledge to give students an overall view of the important roles played by these elements in the context of logistics and transport. The programme aims to equip students with a solid foundation of knowledge on which they can build with experience. Elements M2-1 Introduction to Customer Service M2-2 Communications and Customer Service M2-3 Understanding the Market M2-4 Principles of Marketing 16

23 Element M2-1 Learning Outcomes The learner will: 1.1. Understand the characteristics of different types of customers and their requirements Know the features of different types of demand Understand the different expectations of customers and their stakeholders. Introduction to Customer Service Assessment Outcomes The learner can: Classify customers into external, internal, business to business, and the general public Describe the requirements of customers in these classifications Define different types of demand: primary; secondary; derived; dependent and independent Differentiate between the expectations of customers and their stakeholders Understand the relationship between organisations and their stakeholders Understand the need for organisations to build and maintain relationships with customers Understand the need for responsible trading practices Know the elements to be included in a typical service level agreement Use a range of examples to illustrate relationships between organisations and stakeholders Describe the reasons why organisations build and maintain relationships with customers Describe organisations responsibilities to: customers; suppliers; employees; the local community and the environment Select appropriate elements to be included in a service level agreement for a typical transaction. 17

24 Indicative Content Defining the customer. Nature of demand. Organisational relationships. Responsibility. External; internal; business to business; general public. Supply and demand variations; primary and secondary (derived) demand; dependant and independent demand. Expectations of customers and stakeholders, and the importance of building and maintaining customer relationships. Service level agreements; role in operations; ethics and environmental considerations. 18

25 Element M2-2 Learning Outcomes The learner will: 2.1. Understand the need to give effective customer service. Communications and Customer Service Assessment Outcomes The learner can: Describe the reasons for giving effective customer service Know the components of an effective customer service process Understand how organisational structures influence individual roles and responsibilities for customer service Understand the importance of effective internal and external communications Know the advantages and disadvantages of different methods of internal and external communications Understand the importance of improving customer service Describe the role of the following in providing effective customer service: information provision; staff attitudes; response to unplanned incidents; service recovery; complaints handling and feedback processes Classify the main types of organisational structures and their reporting lines Assess the impact of different structures on individuals roles and responsibilities for customer service Assess the impacts of good and poor internal and external communications Describe the role of internal and external communications in organisations in managing: customer service policy; media relations; staff communications; publicity and advertising; branding and image Illustrate the use of appropriate and inappropriate language in internal and external communications Compare the positive and negative points of different methods of internal and external communications Assess the role of improved customer service in bringing about: better customer retention; better value for money and excellent performance. 19

26 Indicative Content Customer Service. Role of the individual. Communication. Improving customer service. Information provision; staff attitude; response to unplanned incidents; service recovery; handling of complaints; customer feedback processes. Company structures and responsibilities; reporting lines; individual actions and the effect on customer service. Internal and external methods; customer service policy; media relations; staff communications; publicity and advertising; appropriate language; branding and image. Customer retention and value to the organisation; exceeding expectations and problem solving. 20

27 Element M2-3 Learning Outcomes The learner will: 3.1. Know how the market boundaries are defined Understand the process of market segmentation. Understanding the Market Assessment Outcomes The learner can: Define the concept of market boundaries Describe the features of market boundaries: size; modal or intermodal; geographic issues and demography Describe a range of segmental characteristics: time; cost; distance; quality; common interest; retail; B2B; home shopping; special demand and legal requirements Understand the responses to change in service from different customer groups Know the main categories of information for assessing customer service expectations Assess the potential sensitivity of different customer groups to service changes Estimate the business, cultural and diversity impacts of service changes for different customer groups Classify information by: service access; on/off-board services; price; frequency; speed; stopping patterns; vehicle quality; location; product availability and removal of trade barriers. 21

28 Indicative Content Market boundaries. Segments. Customer response. Solutions. Size of market; modal or inter modal; geographic considerations and demographic characteristics. Demand by time; cost; distance; quality;, common interest; retail; business to business; home shopping; special demands or legislative considerations. Sensitivity of different groups to change, effect on business, cultural and diversity issues. Realistic application of information; service access; on/off-board services; price; frequency; speed; stopping patterns; vehicle quality; location; product availability and removal of barriers to trade. 22

29 Element M2-4 Learning Outcomes The learner will: 4.1. Understand the purpose of marketing activities Know how target markets are defined. Principles of Marketing Assessment Outcomes The learner can: Describe the purpose of marketing activities Define passenger, goods and logistics markets Define a range of segments within passenger, goods and logistics markets Know the basic activities required to address the expectations of target markets Know the types of data used in marketing Know how marketing data is researched Understand the main external influences on markets Know how to produce a simple marketing plan Know how to use the SWOT analysis Describe activities used to address the expectations of target markets: using market intelligence, decision making processes, sales and promotion activities Use a range of examples to classify data as: primary; secondary; local; national; regional; organisational and official Describe the positive and negative points of different types of data Describe the main sources and methods of research used in marketing Assess the impact of a range of external influences: within modes; between modes; customer perceptions; environmental factors and legal constraints Describe the components (4Ps) of a simple marketing plan: product, price, promotion and place Estimate the resource requirements for each of the 4Ps Apply the SWOT analysis to a marketing situation. 23

30 Indicative Content Purpose. Information. External influences. Simple marketing plan. Define the passenger, goods or logistics market; define segments within the market, the use of market intelligence, decision making processes, sales and promotion. Primary and secondary data. (Official statistics, national and local, company data, annual and financial reports.) Methods of research. Advantages and disadvantages of different types. Completion; same mode and other mode; customer perceptions; environmental and legislative. 4Ps Product, Price, Promotion, Place. SWOT analysis, resource requirements at each stage. 24

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32 Standards for the CILT International Introductory Certificate in Logistics and Transport Option Units O1-L2 O2-L2 O3-L2 O4-L2 O5-L2 O6-L2 Introduction to Freight Transport Services Introduction to Passenger Transport Services Introduction to Warehousing and Inventory Introduction to Procurement Introduction to Planning and Operation of Freight Transport Introduction to Planning and Operating of Passenger Transport 26

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34 O1-L2 Introduction to Freight Transport Services Unit purpose and aim This Unit is designed to introduce students to freight transport services. The Unit is made up of five sections that contain sufficient knowledge to give students an overall view of this essential role. The programme aims to equip students with a solid foundation of knowledge on which they can build with experience. Elements O1-1 Transport and Freight Movements O1-2 Freight Transport Characteristics O1-3 The Organisational Structure of the Freight Transport Industry O1-4 Freight Transport Costs and Charges 28

35 Element O1-1 Learning Outcomes The learner will: 1.1. Appreciate the role of freight transport in society Understand the supply and demand features relating to freight transport. Transport and Freight Movements Assessment Outcomes The learner can: Distinguish correctly between Transport and Movement Appreciate how transport acts as a driver of social and economic development including: trade, economic expansion, sources of goods, processing and consumption Describe the supply and demand characteristics of freight transport: primary and secondary demand; derived demand; volumes; flows; modal selection and tradeoffs Identify the principle control and monitoring mechanisms operating within the freight transport industry Describe how planning enables effective movements of freight transport Understand some of the key considerations when moving freight internationally Outline the main regulatory and monitoring mechanisms in the freight transport industry: international controls, national controls and local controls Explain the need for flexibility Describe the tools and techniques related to planning movements and transport: resource availability; suitability; facilities; variables; international factors; security; costs and IT applications Identify some of the principle issues that may arise when moving goods internationally and how they may be resolved: documentation; cultures; language; communication; currency; insurance; security and compatibility. 29

36 Indicative Content Principles of freight movements. Types of movements. The role of freight transport in society. Components of the freight transport system. Market segments. Types of freight. Reasons for movement. Purpose of freight movement, centralised control, regulation flexibility and utilisation of capacity. Regular, non-regular and demand driven. Requirement to move goods to trade, between points of source, manufacture and consumption and key to prosperous communities. The route, hubs and warehousing, control and communications, and vehicles and staff. Raw materials, finished goods and parcels. Bulk; Gases; Powders and Liquids; Livestock; Temperature-controlled; Perishable; Dangerous; High Value; Abnormal and multi-drop. Source of materials, labour market and destination market. 30

37 Element O1-2 Learning Outcomes The learner will: 2.1. Describe the characteristics of the different modes of transport Identify the principle components of freight transport systems Explain the different market segments, different service levels and the role of load unitisation Identify the different types of freight and their main characteristics. Freight Transport Characteristics Assessment Outcomes The learner can: Explain the characteristics of the major modes of transport: road, rail, air, sea and waterway Identify principle minor modes and their applications Compare the characteristics of freight transport systems: routes; hubs; interchanges; warehousing; storage; distribution; control; communications; vehicles/craft and staff Outline different freight transport market segments: raw materials, goods-in progress and finished goods Describe different service level provision and operations: third party provision; returns and repatriation; containers; demountables and unitisation Describe the main types of freight being moved and the related requirements: containers; bulk; gases; powders and liquids; livestock; temperature-controlled; perishable; dangerous; parcels; high value and abnormal size Explain what resources are required to support freight transport and the need for resource optimisation Explain the levels and types of support resources used in the freight transport industry: land; labour; skills; capital; infrastructure; storage and processing; services; docking and handling of loads Consider the need for the optimum use of all required resources. 31

38 Indicative Content Supply and demand characteristics. Modes of freight transport. Collection and distribution centres. Facilities and resources of collection and distribution centres. Constraints on supply; primary, secondary and demand (derived demand) volumes; flow; what influences the choice of mode time/cost/availability trade-offs. Road, rail, sea & waterway, air and pipeline. Definition, role and function, size and influence of location. Infrastructure and storage services, docking, handling of loads and facilities. 32

39 Element O1-3 Learning Outcomes The learner will: 3.1. Know the basic organisational structures within the freight transport industry for different modes. The Organisational Structure of the Freight Transport Industry Assessment Outcomes The learner can: Describe the basic management and operational structures of the different modes of transport: road, rail, sea/waterway and air Outline the functions of service ancillaries: shipping and other agents, freight forwarders and groupage providers Describe the organisation and role of logistics and distribution providers and how supply chains are structured and function Describe the basic structure of the freight transport industry at international, national/regional and local levels Compare the structural characteristics of user organisations in different modes and different operations Define the resources required by user organisations in different modes Outline forms of logistics operation and function and the role of freight transport in supply chains: logistics operation, 3PL, 4PL, supply chain management and supply chain activity Assess the different geographic structures of the freight transport industry at different levels: international, national/regional and local Describe the different characteristics of different freight transport user organisations in the different modes: global; national; PLCs; SMEs; micro business and the public sector Consider the different resources and services required by modern user organisations using freight transport services: service level issues and high street servicing. 33

40 Indicative Content Basic structure of the freight industry for different modes. Geographically-based structures for the freight transport industry. Sizes and types of organisations. Resources required for different modes. Road, rail, sea & waterway, air and pipeline. International, national, regional and local. Global, national, PLCs, small/medium enterprises and micro business. Land, labour and capital. 34

41 Element O1-4 Learning Outcomes The learner will: 4.1. Know the types of costs incurred in freight transport services Understand the link between cost, pricing and profit and the purpose/role of profit in freight transport operations Calculate a charge-out rate using cost data and a required profit level to customers Describe the principles of discounting. Freight Transport Costs and Charges Assessment Outcomes The learner can: Understand the purpose of cost in freight transport operations Classify types of costs such as fixed, variable, direct and indirect/overhead Appreciate additional journey costs that may be incurred Explain the relationships between: cost, pricing and profit Stakeholders, customers, shareholders and partners Re-investment and exchange rate issues Calculate a charge-out rate to include a specified profit level, using given cost data: per tonne, per mile and per pallet Recognise the opportunities to reduce costs: large consignments; off-peak traffic; economies of scale; overhead sharing; back-loading; contracts and partner organisations. 35

42 Indicative Content Terminology and types of costs. Profit consideration. Charges/tariffs/rates. Volume discounts. Differential pricing. Terminology: cost centre and cost unit. Types of costs: fixed, variable, direct, indirect and overhead. Importance of including all costs of operation (e.g. third party, tolls, etc.). Types of stakeholder: customers, shareholders, partners and re-investment in business. Per load, per tonne, per mile and per pallet. Recognition of opportunities for cost savings over large volume, economies of scale and overhead sharing. How reduced rates can be used to fill space on vehicles (e.g. back-loading ). 36

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44 O2-L2 Introduction to Passenger Transport Services Unit purpose and aim This Unit is designed to introduce students to passenger transport services. The Unit is made up of five elements that contain sufficient knowledge to give students an overall view of this essential role. The programme aims to equip students with a solid foundation of knowledge on which they can build with experience. Elements O2-1 Transport and Passenger Movements O2-2 Passenger Transport Characteristics O2-3 Structures and Organisations in the Passenger Transport Industry 02-4 Passenger Transport Costs 38

45 Element O2-1 Learning Outcomes The learner will: 1.1. Know the principles of passenger movement. Transport and Passenger Movements Assessment Outcomes The learner can: Distinguish correctly between Transport and Movement Understand how the principles apply to different types of service Understand the role of passenger transport in society Know the components of a passenger transport system Know the different passenger market segments Understand the characteristics of the different types of passenger transport Know the causes for the demand for international passenger movement. Apply the principles of movement to: scheduled, non-scheduled and demandresponsive services. Describe the role of transport in society, including movement for: employment, education, leisure and social reasons Explain the functions of: The way; interchanges and terminals; control and communications systems; ticketing; information; vehicles and staff Classify a range of passenger travel market segments: business, education, leisure, personal and group Describe the characteristics and related transport needs of a range of passenger types: individual, group, special needs, time dependence and price sensitive Assess the factors that cause demand for international passenger movements: globalisation, international business and leisure. 39

46 Indicative Content Principles of passenger movements. Types of movements. The role of passenger transport in society. Components of passenger transport systems. Market segments. Passenger characteristics. Route and time constrained controlled by the operator. Flexible or contracted influenced and specified by the passenger. Scheduled, non-scheduled and demand responsive. Requirement of people to move about for employment, education, leisure and social reasons. The way; interchanges; control and communications; ticketing and information; and vehicles and staff. Business, education, leisure, personal and group. Individual; group; those with particular needs (e.g. physical impairment); time dependent and price sensitive. 40

47 Element O2-2 Learning Outcomes The learner will: 2.1. Understand the supply and demand of passenger transport Understand the characteristics of different modes of passenger transport Know the role and functions of terminals and interchanges Know the facilities and resources used at terminals and interchanges Understand passenger transport operations and facilities in other countries. Passenger Transport Characteristics Assessment Outcomes The learner can: Describe the factors which constrain the supply of passenger transport Differentiate between: primary transport demand and secondary (derived) transport demand Compare the characteristics of different modes: road, rail, sea/waterway and air Define the purpose and role of terminals and interchanges Describe the spatial and land locations of terminals and interchanges Compare the activities carried out at terminals and interchanges Describe the facilities and resources used at terminals and interchanges Explain the importance of: communication and information, language needs and cultural differences Understand the options for passenger movements involving more than one transport mode Assess the options for combining modes of transport in passenger journeys. 41

48 Indicative Content Supply and demand characteristics. Modes of passenger transport. Terminals and interchanges. The facilities and resources of terminals and interchanges. Constraints on supply, primary and secondary demand (derived demand), volumes, tidal flows and what influences the choice of mode time/cost/availability tradeoff. Road, rail, sea & waterway and air. Definition, role and functions, size and influences of location. Infrastructure and support services, facilities for modes, facilities for passengers and safety and security. 42

49 Element O2-3 Learning Outcomes The learner will: 3.1. Know the basic structure for the passenger industry Know the characteristics of organisations in different modes and operations. Structures and Organisations in the Passenger Transport Industry Assessment Outcomes The learner can: Describe the basic industry structure: internationally, nationally, regionally and locally Compare the characteristics of different types of organisations: global; national; PLCs; SMEs; micro-businesses and not-for-profit (local authority, social enterprises and community-based) Know the reasons for monitoring and controlling international passenger movements Understand the requirements for monitoring and controlling international passenger transport Describe the purpose of monitoring and controlling international passenger movements Describe the border controls for: checking and controlling documentation; assessing and collecting Customs duties; controlling emigration and immigration and minimising terrorist and security threats Know the assets required by passenger transport organisations Assess the requirements for: land, labour and capital. 43

50 Indicative Content Basic structure of the passenger industry for different modes. Geographically-based structures for the passenger industry. Sizes and types of organisations. Resources required for different modes. Road, rail, sea & waterway and air. International, national, regional and local. Global; national; PLCs; small/medium enterprises; not-for-profit organisations (social enterprises, local authority and community-based) and micro-business. Land, labour and capital. 44

51 Element O2-4 Learning Outcomes The learner will: 4.1. Know the types of costs incurred in passenger transport services Understand the purpose of profit for passenger transport operations Know the different methods of calculating charges to customers. Passenger Transport Costs Assessment Outcomes The learner can: Understand the purpose of cost in passenger transport operations Classify types of costs such as: fixed, variable, direct and indirect/overhead Explain the relationships between: cost, pricing and profit Distinguish the interests of for profit and not-for-profit organisations Differentiate between charges: per passenger, per vehicle and per mile/kilometre Calculate a charge-out rate to include a specified profit level, using given cost data. 45

52 Indicative Content Terminology and types of costs. Profit consideration. Charges/fares. Differential pricing. Terminology: cost centre and cost unit. Types of costs: fixed; variable; direct; indirect and overhead. Importance of including all costs of operation. Types of Stakeholder: customers, shareholders, partners and re-investment in business. Sustaining not-for-profit operations. Per vehicle, per passenger and per mile. Recognition of opportunities once full costs have been met. 46

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54 O3-L2 Introduction to Warehousing and Inventory Unit purpose and aim This Unit is designed to introduce students to the concept of Warehousing & Storage. The Unit is made up of five elements that contain sufficient knowledge to give students an overall view of the important role played by Warehousing and Inventory in the context of logistics management. The programme aims to equip students with a solid foundation of knowledge on which they can build with experience. Elements O3-1 Inventory O3-2 The Warehouse O3-3 Warehouse Principles O3-4 Storage and Materials Handling O3-5 Warehouse Processes 48

55 Element O3-1 Learning Outcomes The learner will: 1.1. Know the purpose and characteristics of inventory Know the elements of an inventory process Know the costs associated with inventory Know the purpose and methods of stock identification. Inventory Assessment Outcomes The learner can: Define inventory Describe the characteristics of inventory Describe an inventory process Describe the costs of inventory Describe the purpose of stock identification Compare methods of stock identification Know the main categories of stock Classify stock as: raw materials; parts made; parts supplied; work in progress; fast-moving; cycle; safety; seasonal; promotional; valuable; perishable and dead Understand the role and functions of stock control Know the factors which determine stockholding Understand the purpose and functions of reverse logistics Understand the role and function of inventory measurement Understand methods used to assess and satisfy demand and service levels Define stock control Differentiate stock control by value and by level Compare the use of stockholding determinants Define reverse logistics Use a range of examples to illustrate the functions of reverse logistics Describe the role and function of inventory measurement Compare a range of inventory performance indicators Perform a service level calculation using a performance indicator Compare methods of assessing demand and service levels. 49

56 Indicative Content Inventory. Categories of stock. Function of stock control. Reverse logistics. Performance indicators. Demand satisfaction. What is inventory? definition, process, purpose of inventory and costs. Raw materials; parts made and supplied; work in progress; fast moving goods; cycle stock; safety stock; seasonal; promotional; valuable; perishable and dead. Levels vs. values and stockholding drivers. Definition, purpose and drivers. Purpose, service levels and calculation. Purpose and calculation. 50

57 Element O3-2 Learning Outcomes The learner will: 2.1. Understand the role and function of warehouses in the supply chain. The Warehouse Assessment Outcomes The learner can: Define a warehouse Describe the purpose of warehouses Assess the need for warehousing Know the factors which determine warehouse location, type, size and number Understand the impact of e-business on warehouse operations Know the main cost areas for warehouse operations Understand the process of managing security risks in warehouses Understand the health and safety issues in warehouses Know the main health and safety and environmental responsibilities applying to warehouse operation Describe the factors which determine the location, type, size and number of warehouses used in supply chains Use a range of examples to illustrate how e-business has affected warehouse operations Classify the main costs of operating a warehouse: infrastructure, staff, equipment and stock Define the main areas of security risks in a warehouse Describe the purpose and process of risk assessment in a warehouse context Describe the health and safety issues in warehouses relating to: manual handling; hazardous goods; personal protective clothing/equipment; waste disposal and environmental management Describe the key areas of health and safety regulations covering warehouse operations Use a range of examples to illustrate a safe method of disposing of hazardous waste. 51

58 Indicative Content The nature and purpose of warehouses. Definition, development and reasons for having a warehouse. Types of warehouse locations. Warehouse issues. Number, size and implications of e- business. Warehouse costs. Security. Health, safety and the environment. Infrastructure, staff, equipment and stock. Need for risk analysis. Laws and regulations covering the warehouse; manual handling; hazardous goods; protective equipment and waste/ environmental management. 52

59 Element O3-3 Learning Outcomes The learner will: 3.1. Understand the need to use warehouse space effectively Know the features of the main flow patterns used in warehouses Understand the requirement to segregate stock according to its characteristics Understand the concept and application of unitisation. Warehouse Principles Assessment Outcomes The learner can: Define the cube Describe the requirement to maximise use of warehouse volume Using an example, calculate the free space in a warehouse as a proportion of total size Describe through flow and U flow Describe the reasons for segregating stock according to characteristics: contamination, damage, safety, theft and loss Compare methods of segregating stock Define the principle of unitisation Describe the advantages of unitisation Use a range of examples to apply unitisation principles to different types of stock Know the purpose and processes of stock rotation Know the purpose, role and function of packaging Know the main legal requirements relating to packaging Define stock rotation Describe purpose of stock rotation Compare the process of stock rotation by first in/first out (FIFO) and last in/first out (LIFO) Describe the purpose, role and function of packaging Use a range of examples to illustrate the correct packaging of different types of goods Describe the main legal requirements relating to packaging Describe the reasons for recycling packaging materials. 53

60 Indicative Content Location. Using the cube. Flow. Stock separation. Unitisation. Stock rotation. Packaging. Location factors. Definition. Movement paths, through flow and U flow. Valuable; hazardous; hygiene; damage; outside storage; heavy and awkward. Definition, examples, and advantages. Definition and purpose, process, FIFO and LIFO. Definition and purpose, law and recycling. 54

61 Element O3-4 Learning Outcomes The learner will: 4.1. Know the types of storage equipment used in warehouses Understand the requirement for flexibility in warehouse equipment Know the purpose and features of location numbering systems used in warehouses Know the main alternatives for storage strategies Know the role and functions of mechanical handling equipment (MHE) Understand the criteria for selecting MHE Know the maintenance issues relating to MHE Understand how ICT is used with MHE. Storage and Materials Handling Assessment Outcomes The learner can: Describe the types and features of storage equipment used in warehouses Use information provided by the Storage Equipment Manufacturers Association (SEMA) Assess the requirement for flexibility in warehouse equipment Describe how aisle width affects the use of racking Describe the purpose of location numbering Describe the format of a location numbering system Use of an example to illustrate the use of location numbering Give the positive and negative points for alternative storage strategies: popularity zoning, fixed zoning and random location Define the purpose, role and functions of MHE Classify the types of MHE used in warehouses Describe the advantages of using MHE Describe the criteria for selecting MHE Describe the maintenance issues relating to MHE Illustrate the use of ICT with MHE. 55

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