SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Manage in and out sourcing 
SAQA US ID UNIT STANDARD TITLE
336679  Manage in and out sourcing 
ORIGINATOR
SGB Procurement, Logistics and Supply Chain Mngt 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Procurement 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard will enable learners to manage in and out sourcing. People credited with this Unit Standard will be able to demonstrate a clear understanding of the in/outsourcing decision, the implications, the advantages and disadvantages and the factors to be considered in the decision.

A learner credited with this Unit Standard will be able to:
  • Analyse the key elements of in and out sourcing.
  • Manage the process to take a make-or-buy (in sourcing/outsourcing) decision.
  • Evaluate the effectiveness of in and out sourcing. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 4.
  • Mathematical Literacy at NQF Level 4. 

  • UNIT STANDARD RANGE 
    The applied competence expressed in this standard covers the knowledge and understanding of:
  • The in/out sourcing decision making process.
  • Assessing strategic alignment and core competencies.
  • The types of in/out sourcing.
  • Doing in/out sourcing cost analysis.
  • Considering the non cost factors of in/out sourcing.
  • The advantages and disadvantages of in/out sourcing.
  • How to apply good practices for in/out sourcing. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the key elements of in and out sourcing. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The need to optimise input cost are assessed to determine its influence on in and out sourcing. 

    ASSESSMENT CRITERION 2 
    The underlying purpose of the make-or-buy (in/outsourcing) decision is evaluated to assess its impact on in and out sourcing. 

    ASSESSMENT CRITERION 3 
    The outsourcing decision is analysed to determine if it presents opportunities for developing the disadvantaged business community. 

    ASSESSMENT CRITERION 4 
    The key concepts of in and out sourcing are critically analysed to determine their relationship with each other. 
    ASSESSMENT CRITERION RANGE 
    key concepts include but are not limited to the difference between in sourcing, outsourcing, subcontracting and make-or-buy decisions.
     

    SPECIFIC OUTCOME 2 
    Manage the process to take a make-or-buy (in sourcing/outsourcing) decision. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A systematic process for a make-or-buy (in/outsourcing) decision to be made is determined. 

    ASSESSMENT CRITERION 2 
    The make-or-buy (in sourcing/outsourcing) decision is made by conducting an analysis of the advantages and disadvantages of outsourcing. 

    ASSESSMENT CRITERION 3 
    Cost factors are identified and assessed to determine how they impact on the make-or-buy decision. 

    ASSESSMENT CRITERION 4 
    A make-or-buy analysis is conducted with real cost figures. 

    ASSESSMENT CRITERION 5 
    Recommendations are made based on a make-or-buy (in/outsourcing) analysis. 

    SPECIFIC OUTCOME 3 
    Evaluate the effectiveness of in and out sourcing. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The in and out sourcing process and factors influencing the "make-or-buy" (in/outsourcing) decision are evaluated to determine their contribution to the supply chain. 

    ASSESSMENT CRITERION 2 
    Tactical and strategic factors influencing the outsourcing decision are examined. 

    ASSESSMENT CRITERION 3 
    The implications of and the arrangements associated with the outsourcing decision to the organisation are recognised. 

    ASSESSMENT CRITERION 4 
    The administration of the outsourced activities is measured and evaluated to determine areas for improvement. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this unit standard must be accredited by the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA at its discretion.
  • Moderation should encompass achievement of competence described in both individual unit standards as well as the integrated competence described in the Qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Understanding of the need for ongoing optimisation and the improvement of the cost efficiency of organisations within a global environment.
  • Understanding of the differences between in and out sourcing.
  • Understanding of the implications of the in/out sourcing decision on the stakeholders within the supply chain.
  • Understanding of the in/out sourcing decision making process.
  • Understanding of the impacts of new product development on the supply environment.
  • Understanding of the impact of new technology and the shifting life cycles of technology on the supply strategy.
  • Understanding of the various in/out sourcing analysis models.
  • What the typical situations are that drive the in/out sourcing decisions.
  • What is meant by the core competence of organisations.
  • What some of the key advantages and disadvantages are that support the in/out sourcing decision.
  • What the processes are that should be followed in making the in/out sourcing decision.
  • Be able to describe the problems associated with allocating fixed overhead costs to an in sourcing project.
  • Be able to site examples of effective in/out sourcing.
  • What the non cost factors are that will impact on the in/out sourcing decision. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Identifying problems associated with allocating fixed overhead costs to an in sourcing project. 

  • UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community during:
  • The make-or-decision-making process. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • Determining a systematic process for a make-or-buy (in/outsourcing) decision to be made. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information when:
  • Perform a make-or-buy analysis with real cost figures and make recommendations based on an analysis.
  • Collecting, analysing, organising and critically evaluating information on the make-or-buy (in sourcing/outsourcing) analysis. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion when:
  • Examining tactical and strategic factors influencing the outsourcing decision. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Presentations to relevant stakeholders. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Analysing the pros and cons of the in and outsourcing decisions in meeting the market demand. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  74149   National Certificate: Supply Chain Management  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Academics Dynamics (Pty) Ltd 
    2. Aldabri 106 Institute for Quality Pty Ltd 
    3. BPL Academy 
    4. Centre for Logistics Excellence (Pty) Ltd 
    5. College for Business and Maritime Studies 
    6. College of Production Technology 
    7. COMMERCE EDGE SOUTH AFRICA PTY LTD 
    8. Global Maritime Legal Solutions Pty Ltd 
    9. KVR TRAINING AND BUSINESS SOLUTIONS PTY LTD 
    10. Makwedeng Training 
    11. Metro Minds 
    12. Phephani Learnerships cc 
    13. School of Shipping 
    14. Skills Development Specialists 
    15. UKWAKHILE TRAINING 
    16. Y2K College 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.