MSS405032 - Analyse cost implications of maintenance strategy assessment tool

Assessor Resource

MSS405032
Analyse cost implications of maintenance strategy

Assessment tool

Version 1.0
Issue Date: May 2024

This unit of competency covers the skills and knowledge required to analyse the cost implications of different maintenance strategies and to adjust or adopt a strategy to minimise or eliminate unnecessary costs. This unit applies to an individual in an organisation who is selecting or reviewing its proactive maintenance strategy. While technical factors are significant in the choice of maintenance strategy and tools, cost factors will also impact on the selection of a maintenance strategy. This unit covers the cost analysis of maintenance strategies and complements the technical analysis covered in MSS405081 Develop a proactive maintenance strategy. The technical analysis may be performed by the same or a different person to the person undertaking the cost analysis.

This unit primarily requires the application of skills associated with communication in gathering, analysing and applying costing information and consulting with maintenance personnel. Problem solving, initiative and enterprise, and planning and organising are required to analyse and estimate the cost of maintenance strategies.

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

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Evidence Required

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 cost components of maintenance	1.1	Determine cost of failure of plant/equipment.
		1.2	Determine cost of a planned maintenance shutdown activity, including costs of re-start.
		1.3	Determine cost of maintenance for a planned activity.
		1.4	Determine cost of maintenance for an unplanned activity.
		1.5	Determine costs of condition monitoring.
		1.6	Identify cost implications of different maintenance strategies.

2	Estimate life cycle costs of plant/ equipment	2.1	Determine initial capital cost.
		2.2	Estimate servicing, maintenance and repair costs.
		2.3	Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.
		2.4	Determine depreciation and other applicable allowances.
		2.5	Estimate ancillary costs, such as training, commissioning and productivity loss.
		2.6	Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.
		2.7	Estimate annualised costs in present value terms.
		2.8	Identify life cycle cost implications for strategy.

3	Liaise with proactive maintenance strategy developer	3.1	Identify cost implications for different strategies.
		3.2	Negotiate a strategy which minimises total costs.
		3.3	Monitor the implementation of the strategy to ensure the costs are minimised.
		3.4	Make required adjustments to strategy.

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 analyse cost implications of two (2) or more maintenance strategies and to:

analyse cost components for each strategy

estimate life cycle costs for each strategy

compare the cost implications and negotiate a strategy which minimises costs.

Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to analyse cost implications for maintenance strategies, including knowledge of:

cost components of maintenance strategies

direct and indirect costs

maintenance strategies appropriate to the organisation, their strengths and weaknesses

techniques for estimating production, sales and other costs related to maintenance strategies

depreciation, capital vs. expense

present day value of future costs â€“ determination and use of

life cycle costing

negotiation.

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 analysis of maintenance strategies 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.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title] Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Elements describe the essential outcomes.		Performance criteria describe the performance needed to demonstrate achievement of the element.
1	Analyse cost components of maintenance	1.1	Determine cost of failure of plant/equipment.
		1.2	Determine cost of a planned maintenance shutdown activity, including costs of re-start.
		1.3	Determine cost of maintenance for a planned activity.
		1.4	Determine cost of maintenance for an unplanned activity.
		1.5	Determine costs of condition monitoring.
		1.6	Identify cost implications of different maintenance strategies.

2	Estimate life cycle costs of plant/ equipment	2.1	Determine initial capital cost.
		2.2	Estimate servicing, maintenance and repair costs.
		2.3	Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.
		2.4	Determine depreciation and other applicable allowances.
		2.5	Estimate ancillary costs, such as training, commissioning and productivity loss.
		2.6	Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.
		2.7	Estimate annualised costs in present value terms.
		2.8	Identify life cycle cost implications for strategy.

3	Liaise with proactive maintenance strategy developer	3.1	Identify cost implications for different strategies.
		3.2	Negotiate a strategy which minimises total costs.
		3.3	Monitor the implementation of the strategy to ensure the costs are minimised.
		3.4	Make required adjustments to strategy.

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:	lean operations agile operations preventative and predictive maintenance approaches statistical process control systems, including six sigma and three sigma Just in Time (JIT), kanban and other pull-related operations control systems supply, value, and demand chain monitoring and analysis 5S continuous improvement (kaizen) breakthrough improvement (kaizen blitz) cause/effect diagrams overall equipment effectiveness (OEE) takt time process mapping problem solving run charts standard procedures current reality tree.
Maintenance strategies and techniques include one or more of:	total productive maintenance (TPM) reliability centred maintenance (RCM) root cause analysis (RCA) mean time between failures (MBTF) failure mode and effects analysis (FMEA) condition monitoring related proactive maintenance strategies.
Cost components of maintenance include all of:	direct costs, such as labour and materials indirect costs, such as management overhead comparison with cost of equipment replacement re-engineering breakdown repair cost of lost production under different maintenance strategies cost of inefficient equipment/plant operation due to poor maintenance.