Unit of competency

Modification History

Release 1. Supersedes and is equivalent to MSS402031A Interpret product costs in terms of customer requirements.

Release 2. Unit code in Application updated. Equivalent outcome.

Application

This unit of competency covers the skills and knowledge required by an individual to be able to identify the major cost components of either products or processes, the basic relationship of these to customer benefit, and use this to help minimise waste (defined as anything not delivering value as defined by the customer). It has a different focus to MSS402082 Apply cost factors to work practices, which focuses on costs in isolation, whereas this unit regards all costs not directly leading to customer benefit as waste.

This unit applies to an individual who uses their understanding of the customer's requirements of the product or process being undertaken as the basis for investigating work processes to identify waste sources and then takes action relevant to their level of competency and authority to reduce this waste. It requires an understanding of both the cost factors in the products they make and also the benefits which the customer derives from the product.

This competency may be performed individually or in a team-based environment.

This unit requires the application of skills associated with analysis and problem solving to identify waste and determine ways to minimise waste. This unit requires initiative and enterprise and application of learning in concepts of waste and waste minimisation.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Pre-requisite Unit

Nil

Competency Field

Competitive systems and practices

Unit Sector

Not applicable

Elements and Performance Criteria

Foundation Skills

This section describes those required skills (language, literacy and numeracy) that are essential to performance.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range of Conditions

Unit Mapping Information

Release 1. Supersedes and is equivalent to MSS402031A Interpret product costs in terms of customer requirements

Links

The MSS Sustainability Companion Volume implementation Guides are available from VETNet: - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=5b04f318-804f-4dc0-9463-c3fb9a3fe998

Assessment requirements

Modification History

Release 1. Supersedes and is equivalent to MSS402031A Interpret product costs in terms of customer requirements.

Release 2. Unit code in Application updated. Equivalent outcome.

Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy the requirements of the elements and performance criteria and include the ability, on one (1)  or more occasions to recommend muda reduction related to their workplace, and to:

• identify and distinguish between cost components leading to customer benefit or otherwise
• take steps to minimise muda in their workplace.

Knowledge Evidence

Must provide evidence that demonstrates knowledge relevant to their job role sufficient to fulfil their job role under routine only supervision, including:

• contributions towards customer perceived benefit
• concepts of expense, income and capital
• fixed and variable cost components relevant to own work:

• power/energy
• materials, plant and equipment
• production or process time, including impact of salary and wages
• office expenses
• government taxes and charges

• relative impact of each of these
• financial and non-financial impacts of cost reductions
• the difference between internally and externally controlled costs
• difference between overhead, labour and consumables.

Assessment Conditions

• The unit should be assessed holistically and the judgement of competence shall be based on a holistic assessment of the evidence.
• The collection of performance evidence is best done from a report and/or folio of evidence drawn from:

• a single project which provides sufficient evidence of the requirements of all the elements and performance criteria
• multiple smaller projects which together provide sufficient evidence of the requirements of all the elements and performance criteria.

• A third-party report, or similar, may be needed to testify to the work done by the individual, particularly when the project has been done as part of a project team.
• Assessment should use a real project in an operational workplace.
• Knowledge evidence may be collected concurrently with performance evidence or through an independent process such as workbooks, written assessments or interviews (provided a record is kept).
• Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.
• Conditions for assessment must include access to all tools, equipment, materials and documentation required, including relevant workplace procedures, product and manufacturing specifications associated with this unit.
• Foundation skills are integral to competent performance of the unit and should not be assessed separately.
• Assessors must satisfy the assessor competency requirements that are in place at the time of the assessment as set by the VET regulator.
• The assessor must demonstrate both technical competency and currency.
• Technical competence can be demonstrated through:

• relevant VET or other qualification/Statement of Attainment AND/OR
• relevant workplace experience

• Currency can be demonstrated through:

• performing the competency being assessed as part of current employment OR
• having consulted with an organisation providing relevant environmental monitoring, management or technology services about performing the competency being assessed within the last twelve months.

Links

The MSS Sustainability Companion Volume implementation Guides are available from VETNet: - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=5b04f318-804f-4dc0-9463-c3fb9a3fe998