Unit of competency
Modification History
Release 1. Supersedes and is equivalent to MSS405031A Undertake value analysis of product or process costs in terms of customer requirements
Application
This unit of competency covers the skills and knowledge required by an individual who is required to analyse products and processes to determine the value-adding factors, including design and processing costs that most impact on meeting customer requirements and which may also include competitor benchmarking. The unit also includes implementing identified changes that increase cost-efficiency. The unit may be applied individually or in a team environment.
In this unit an individual uses an analysis of the benefits/features which a customer perceives to be in a product or service as a basis for determining appropriate or unnecessary (muda) cost and so identifying and reducing muda (waste).
This unit primarily requires the application of skills associated with communication in gathering, analysing and applying information. Problem solving, initiative and enterprise, and planning and organising are required to determine cost-efficiencies. This unit also requires aspects of self-management and learning to ensure feedback and new learning is integrated into costing methods.
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
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
||
1 |
Analyse customer benefits to determine appropriate or muda (waste) costs |
1.1 |
Analyse product or service to determine features/benefits perceived by customer in product. |
1.2 |
Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda. |
||
1.3 |
Determine any additional features that may be added to improve saleability. |
||
1.4 |
Analyse muda cost components and allocate to direct and indirect cost categories. |
||
1.5 |
Determine options for reducing direct and indirect muda costs. |
||
1.6 |
Select cost-related actions which maximise customer benefits and minimise costs. |
||
1.7 |
Where required, undertake competitor benchmarking to provide reference points. |
||
2 |
Analyse performance variance |
2.1 |
Identify muda processing or operational steps for product or service following completion of customer benefit analysis. |
2.2 |
Analyse all costs and determine methods of reducing costs and muda. |
||
2.3 |
Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability. |
||
2.4 |
Submit plan and recommendations to stakeholders. |
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
This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. |
|
Competitive systems and practices include one or more of: |
|
Muda includes all of: |
|
Cost includes all of: |
|
Unit Mapping Information
Release 1. Supersedes and is equivalent to MSS405031A Undertake value analysis of product or process costs in terms of customer requirements
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=5b04f318-804f-4dc0-9463-c3fb9a3fe998