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1.1 Identify resource requirements from analyses of organisational needs

Unit 22: Manage Physical Resources

Unit reference number: K/506/1989 QCF level: 4

Credit value: 4

Guided learning hours: 26

Unit type: Competence

Unit summary

Every organisation will need physical resources to enable them to function and operate efficiently and there will often be occasions when it is necessary to purchase new or updated resources. When considering the purchase of new resources there are several factors that need to be considered such as the cost, potential benefits and the need to follow organisation procedures in the procurement of any purchase.

In this unit, you will learn how to identify the need for physical resources that meet the operational requirements of the organisation. You will learn how to evaluate alternative options for obtaining resources and the impact the new resources will have for the organisation. You will learn the organisational procedures and policies to follow in the procurement of the resource. You will gain an understanding of the factors that need to be taken into account when obtaining physical resources and the importance of using sustainable resources. You will gain an understanding of the importance of ensuring that the resources are managed and used efficiently.

Learning outcomes and assessment criteria

To pass this unit, the learner needs to demonstrate that they can meet all the learning outcomes for the unit. The assessment criteria outline the requirements the learner is expected to meet to achieve the unit.

Unit 22: Manage Physical Resources

Learning outcomes

Assessment criteria


Be able to identify the need for physical resources

1.1 Identify resource requirements from analyses of organisational needs

1.2 Evaluate alternative options for obtaining physical resources

1.3 Evaluate the impact on the organisation of introducing physical resources

1.4 Identify the optimum option that meets operational requirements for physical resources


Be able to obtain physical resources

2.1 Develop a business case for physical resources that is supported by evidence, cost estimates, contingency arrangements and an analysis of likely benefits

2.2 Obtain authorisation and financial commitment for the required expenditure

2.3 Negotiate best value from contracts in accordance with organisational standards and procedures

2.4 Adhere to organisational policies and procedures, legal and ethical requirements when obtaining physical resources

2.5 Check that the physical resources received match those ordered


Be able to manage the use of physical resources

3.1 Take action to ensure physical resources are used in accordance with manufacturers` instructions

3.2 Evaluate the efficiency of physical resources against agreed criteria

3.3 Recommend improvements to the use of physical resources and associated working practices

3.4 Analyse the benefits of effective equipment in the conservation of energy and the environment

Information for tutors
Suggested resources

Barrat C and Whitehead M – Buying for Business: Insights in Purchasing and Supply Management (John Wiley and Sons, 2004) ISBN 9780470092460

Chopra S and Meindl P – Supply Chain Management: Strategy, Planning and Operation, 4th Edition (Pearson Education, 2009) ISBN 9780136094517

Christopher M – Logistics and Supply Chain Management, 4th Edition (Financial Times/Prentice Hall, 2010) ISBN 9780273731122

Emmett S – Supply Chain Management in 90 Minutes (Management Books 2000, 2004) ISBN 9781852524760

Institute of Leadership and Management – Controlling Physical Resources (ILM Super Series), 4th Edition (Pergamon, 2002) ISBN 9780750658867


www.supplymanagement.com – the Chartered Institute of Purchasing and Supply website provides up to date information on purchasing and supply news, laws, analysis and resources


This unit is internally assessed. To pass this unit the evidence that the learner presents for assessment must demonstrate that they have met the required standard specified in the learning outcomes and assessment criteria and the requirements of the Assessment Strategy.

To ensure that the assessment tasks and activities enable learners to produce valid, sufficient, authentic and appropriate evidence that meets the assessment criteria, centres should apply the Unit Assessment guidance and the requirements of the Assessment Strategy below.

Wherever possible, centres should adopt a holistic approach to assessing the units in the qualification. This gives the assessment process greater rigour and minimises repetition, time and the burden of assessment on all parties involved in the process.

Unit assessment requirements: 

Unit 22: Manage Physical Resources

This unit must be assessed in the workplace in accordance with the Skills CFA Assessment Strategy for Business Administration, Customer Service and Management and Leadership, in Annexe A. Simulation is not allowed for this unit.

All evidence of occupational competence should be generated through performance under workplace conditions; this includes evidence of achievement for knowledge- based learning outcomes and associated assessment criteria.

Unit assessment guidance

This guidance supports assessors in making decisions about how best to assess each unit and the evidence needed to meet the assessment requirements of the unit. Centres can adapt the guidance for learners and the particular assessment context, as appropriate.

The evidence to demonstrate achievement of the learning outcomes is likely to come from a combination of learner work products, professional discussion or reflective accounts and witness testimonies.

For learning outcome 1 the learner’s work products such as emails or minutes from meetings could be used to evidence where they have identified resource requirements, evaluated the alternative options for obtaining the resources, identified the optimum option and evaluated the impact of purchasing the resource (AC1.1, AC1.2, AC1.3, AC1.4). Alternatively the evidence could be provided in a professional discussion or a reflective account. The evidence must be in sufficient depth to demonstrate that the learner has satisfied the command verbs of identify and evaluate.

For learning outcome 2 the learner should use the resource need identified in learning outcome 1 to develop a business case for the physical resource. Work products such as emails, minutes from meetings, purchase orders and invoices could provide evidence for AC2.1 and AC2.2. Relevant sections from organisational policies and procedures supported by witness testimony will provide evidence for AC

2.3  and AC2.4. The signed delivery note which highlights that resources have been checked will provide evidence for AC2.5.

The evidence for learning outcome 3 could be generated by witness testimonies from a line manager or colleagues, which shows that actions have been taken to ensure that the resource purchased in learning outcome 2 is used in accordance with the instructions provided by the manufacturer (AC3.1). Work products such as emails or minutes from meetings could provide evidence on the evaluation of the efficiency of the resource and recommendations for improvements to the use of the resource (AC3.2 and AC3.3). Alternatively the evidence could be provided in a professional discussion or a reflective account. The evidence must be in sufficient depth to satisfy the command verb of evaluate for AC3.2. A reflective account could be used to provide evidence for AC3.4, to demonstrate where the learner has analysed the benefits of effective equipment in the conservation of energy and the environment.

Evidence of Recognition of Prior Learning (RPL) can also be used within the unit to confirm competence. Wherever possible, the learning outcomes in this unit should be assessed holistically across the qualification.

Unit 22: Manage Physical Resources

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