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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Manage in and out sourcing 
SAQA US ID UNIT STANDARD TITLE
123194  Manage in and out sourcing 
ORIGINATOR
SGB Transport and Logistics Operations 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 11 - Services Transport, Operations and Logistics 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6 
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 
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.

This unit standard will be useful to people in the mid and senior level positions in public and private sector organisations or those aspiring for such positions. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
The credit calculation is based on the assumption that learners are already competent in terms of the following outcomes or areas of learning when starting to learn towards this unit standard:
  • Communication NQF level 4.
  • Supervisory tasks.
  • Mathematics LiteracyNQF level 4.
  • Business acumen NQF level 5. 

  • 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.

    The aim of the unit standard is to empower mid level decision makers within the purchasing discipline or people aspiring for such positions to be able to make effective in/out sourcing decisions and to ensure that they consider all the relevant implications and that they can apply good practices when implementing these decisions. In order to achieve this aim the unit standard level at NQF 6 will be appropriate. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Understand the need to optimise input cost. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Explaining the underlying purpose of the make-or-buy (in/outsourcing) decision. 

    ASSESSMENT CRITERION 2 
    Recognising opportunities for developing the disadvantaged business community through the outsourcing decision. 

    SPECIFIC OUTCOME 2 
    Understand the difference between in sourcing, outsourcing, subcontracting and make-or-buy decisions. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Explaining the difference between the concepts of in sourcing, outsourcing, subcontracting and make-or-buy. 

    SPECIFIC OUTCOME 3 
    Understand which cost factors must be considered to take a make-or-buy (in sourcing/outsourcing) decision. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Identifying the cost factors which must be considered with the make-or-buy decision. 

    ASSESSMENT CRITERION 2 
    Doing a make-or-buy analysis with real cost figures. 

    ASSESSMENT CRITERION 3 
    Making recommendations based on a make-or-buy (in/outsourcing) analysis. 

    SPECIFIC OUTCOME 4 
    Understand the advantages and disadvantages of outsourcing. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Explaining the advantages and disadvantages of outsourcing. 

    SPECIFIC OUTCOME 5 
    Understand the process and factors influencing the "make or buy" (in/outsourcing) decision. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Explaining the tactical and strategic factors influencing the outsourcing decision. 

    ASSESSMENT CRITERION 2 
    Illustrating and explain a systematic process to for a make-or-buy (in/outsourcing) decision. 

    SPECIFIC OUTCOME 6 
    Understand the implications of and the arrangements associated with the outsourcing decision. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Explaining the implications of the outsourcing decision to the organisation. 

    ASSESSMENT CRITERION 2 
    Explaining the administration of the outsourced activities. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this unit standard must be accredited by the Transport SETA and/or 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 
    Essential embedded knowledge will be assessed through assessment of the Specific outcomes in terms of the stipulated Assessment criteria. Candidates are unlikely to achieve all the Specific outcomes, to the standards described in the Assessment criteria, without knowledge of the listed embedded knowledge. This means that for the most part, the possession or lack of the knowledge can be directly inferred from the quality of the candidate's performance. Where direct assessment of knowledge is required, Assessment criteria have been included in the body of the unit standard.

    The following embedded knowledge is addressed in an integrated way in the unit standard:
  • 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 COLLECTING 
  • 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 ASSESSOR CRITERIA 
    Methods and tools of assessment:

    The following methods of assessment have been identified as the preferred measurement and assessment of learner competence in the above-mentioned Performance Assessment Criteria.
  • In-situ (on the job) observations OR simulation.
  • Oral assessment methods (e.g. presentations).
  • Written tests/case studies/projects.
  • A portfolio of evidence - valid, reliable and authentic evidence from past achievements and experience may serve to supplement the assessment of applied competence.

    These methods must be carefully selected based on the purpose of the assessment (For example, the written method could be used to assess knowledge or on-job demonstration for practical competence). The assessment must integrate a number of different methods (no less than two of those detailed above) in order to give the assessor reliable and valid proof of competence and evidence of required attitudes.

    The following tools may be used to supplement the above minimum assessment methods:

    Valid, reliable and authentic evidence (presented as a portfolio of evidence) from past achievements and experience may serve to supplement the assessment of applied competence. The portfolio should include inter alia:

    Examples:
  • Written statements from persons (e.g. current and/or previous employer, colleague, peer, manager, external customers) confirming competence of the learner.
  • Relevant certificates or awards.
  • Previous assessment records.
  • Journals/logbook.

    Conducting assessments:
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA and be familiar with the full text and subject matter content of the Unit Standard being assessed.
  • The assessor must ensure that the assessment covers the specific outcomes, critical cross-field outcomes and essential embedded knowledge. 

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

    UNIT STANDARD NOTES 
    Notes to assessors:

    Assessors should keep the following principles in mind when designing and conducting assessments against this unit standard:
  • Focus the assessment activities on gathering evidence in terms of the main outcome expressed in the title to ensure assessment is integrated rather than fragmented. Remember we want to declare the person competent in terms of the title. Where assessment at title level is unmanageable, then focus assessment around each Specific outcome, or groups of Specific outcomes.
  • Make sure evidence is gathered across the entire range, wherever it applies. Assessment activities should be as close to the real performance as possible, and where simulations or role-plays are used, there should be supporting evidence to show the candidate is able to perform in the real situation.
  • Do not focus the assessment activities on each assessment criterion. Rather make sure the assessment activities focus on outcomes and are sufficient to enable evidence to be gathered around all the Assessment criteria.
  • The Assessment criteria provide the specifications against which assessment judgements should be made. In most cases, knowledge can be inferred from the quality of the performances, but in other cases, knowledge and understanding will have to be tested through questioning techniques. Where this is required, there will be Assessment criteria to specify the standard required.
  • The task of the assessor is to gather sufficient evidence, of the prescribed type and quality, as specified in this unit standard, that the candidate can achieve the outcomes again and again and again. This means assessors will have to judge how many repeat performances are required before they believe the performance is reproducible.
  • All assessments should be conducted in line with the following well documented principles of assessment: appropriateness, fairness, manageability, integration into work or learning, validity, direct, authentic, sufficient, systematic, open and consistent. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  79406   National Certificate: Maintenance Coordination  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered" 
    2015-06-30  MERSETA 
    Core  50245   National Certificate: Maintenance Coordination  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2010-11-11  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.
     
    NONE 



    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.