Modification History
New unit, superseding MSACMT231A Interpret product costs in terms of customer requirements - Equivalent
Unit Descriptor
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 MSS402030A 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.
Application of the Unit
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.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
1 |
Identify cost components deriving from customer benefit and other costs |
1.1 |
Identify customer features/benefits in product or process being undertaken |
1.2 |
Identify cost components which deliver customer features/benefits and those which do not |
2 |
Compare required performance of product or process steps with actual performance |
2.1 |
Identify performance required to meet customer needs in own work and that of team |
2.2 |
Identify actual performance |
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2.3 |
Compare cost components of products or process with current customer-related targets |
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2.4 |
Separate costs components into those that contribute to customer features/benefits and those that do not |
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2.5 |
Determine non-contributing cost components which are under control of the individual or team |
3 |
Minimise waste |
3.1 |
Recommend changes to eliminate or reduce waste |
3.2 |
Adopt changes which minimises waste |
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3.3 |
Monitor effect of changes to ensure gains are made against customer features/benefits |
Required Skills and Knowledge
This section describes the skills and knowledge required for this unit. |
Required skills |
Required skills include:
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Required knowledge |
Required knowledge includes:
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Evidence Guide
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
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Context of and specific resources for assessment |
Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices. Access may be required to:
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Method of assessment |
A holistic approach should be taken to the assessment. Competence in this unit may be assessed by using a combination of the following to generate evidence:
In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge. Where applicable, reasonable adjustment must be made to work environments and training situations to accommodate ethnicity, age, gender, demographics and disability. |
Guidance information for assessment |
Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the candidate and the work being performed. |
Range Statement
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Competitive systems and practices |
Competitive systems and practices may include, but are not limited to:
Competitive systems and practices should be interpreted so as to take into account:
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Customer features/benefits |
Customer features/benefits include:
The customer may be:
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Performance |
Performance may include:
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Customer-related targets |
Customer-related targets include:
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Contributing and non-contributing cost components |
Contributing costs include:
Non-contributing costs include:
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Waste |
Waste (also known as muda in the Toyota Production System and its derivatives) includes:
Categories of waste include:
Waste for this unit may include activities which do not yield any benefit to the organisation or any benefit to the organisations customers |
Unit Sector(s)
Unit sector |
Competitive systems and practices |
Custom Content Section
Not applicable.