List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1 | Analyse total cost components of a product or service | 1.1 | Identify all cost components of product or service. |
| 1.2 | Allocate cost components to major categories, such as overhead, depreciation, energy, consumables and labour. |
| 1.3 | Distinguish between costs which directly deliver customer features/benefits and muda (waste). |
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2 | Optimise costs | 2.1 | Analyse causes of costs which lead to customer features/benefit. |
| 2.2 | Determine methods of increasing the customer benefit/cost ratio. |
| 2.3 | Analyse causes of muda costs. |
| 2.4 | Determine methods of reducing/eliminating muda costs. |
| 2.5 | Analyse interactions between cost components. |
| 2.6 | Check that one method of reducing costs does not cause an increase in another cost/reduction in consumer benefit. |
| 2.7 | 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 plans. |
| 3.2 | Negotiate with relevant people to agree on implementation plans. |
| 3.3 | Take actions to implement the cost optimisation. |
| 3.4 | Monitor the implementation of the cost optimisation. |
| 3.5 | Make adjustments to the plan, as required. |
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 to optimise costs for one (1) or more products or services and to:
analyse all cost components
optimise costs and minimise muda
implement the cost optimisation.
Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to optimise costs, including knowledge of:
cost component categories
methods of allocating indirect costs and their implications
expressing customer perceived benefit in cost or dollar value terms
major controllable costs for the organisation, and how to control them
types of muda and how to reduce it
benefit cost/ratios, their determination and application.
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 cost optimisation project for 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.