Unit of competency
Modification History
Release 1. Unit code changed. Unit title changed. Application changed. Elements changed. Performance Criteria changed. Foundation Skills populated. Range of Conditions removed. Assessment Requirements changed. Supersedes and is equivalent to MSS405030 Optimise cost of a product or service.
Application
This unit describes the skills and knowledge required to examine and optimise the costs of a process, product or service.
This unit applies to supervisors, managers, technical experts and those in similar roles with the responsibility to analyse overall costs, including major cost categories and overheads, determine how to optimise costs and implement optimisation/s.
This unit applies to any organisation that is implementing continuous improvement or more formal competitive systems and practices.
No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.
Pre-requisite Unit
Nil
Competency Field
Competitive systems and practices
Elements and Performance Criteria
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Elements |
Performance Criteria |
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Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
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1. Analyse total cost components of a process, product or service |
1.1 Identify all cost components of process, product or service 1.2 Allocate cost components to major categories 1.3 Distinguish between costs which directly deliver customer features and benefits and muda (waste) |
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2. Optimise costs |
2.1 Analyse causes of costs which lead to customer features and benefits 2.2 Determine methods of increasing the customer benefit/cost ratio 2.2 Analyse causes of muda costs 2.3 Determine methods of reducing or eliminating muda costs 2.4 Analyse interactions between cost components 2.5 Check that one method of reducing costs does not cause an increase in another cost or reduction in customer benefit 2.6 Check that cost reduction plans do not reduce required levels of regulatory compliance or work health and safety (WHS) |
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3. Implement cost optimisation |
3.1 Develop cost optimisation plan that is based on analysis 3.2 Negotiate with relevant people to agree on plan implementation 3.3 Take actions to implement cost optimisation plan in accordance with workplace processes 3.4 Monitor implementation of cost optimisation plan 3.5 Make adjustments to improve plan in accordance with workplace processes |
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.
- Reading skills to interpret workplace documentation
- Writing skills to communicate with a range of audiences
- Oral communication skills to facilitate engagement and participation
- Numeracy skills to determine and analyse costs.
Other foundation skills essential to performance are explicit in the performance criteria of this unit.
Unit Mapping Information
Release 1. Supersedes and is equivalent to MSS405030 Optimise cost of a product or service.
Links
Companion Volume Implementation Guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=5b04f318-804f-4dc0-9463-c3fb9a3fe998
