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Elements and Performance Criteria

  1. Map the value stream
  2. Define customer need
  3. Assess the value added at each step
  4. Reduce waste

Evidence Required

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

Overview of assessment requirements

The person will have a current value map and will be continuously updating the analysis of the value chain to drive further improvement both in their own organisation and also others in the value chain

What are the specific resource requirements for this unit

Access to an organisation following competitive manufacturing

What critical aspects of evidence are required to demonstrate competency in this unit

Evidence of a current analysis of the value chain should be available along with the waste reductions which flow from it

In what context should assessment occur

Assessment needs to occur in an organisation pursuing competitive manufacturing or by use of a project or case study

Are there any other units which could or should be assessed with this unit or which relate directly to this unit

This unit could be assessed concurrently with other units related to development and improvements of systems for competitive manufacturing

What method of assessment should apply

Assessors must be satisfied that the person can consistently perform the unit as a whole as defined by the Elements Performance Criteria skills and knowledge A holistic approach should be taken to the assessment

Assessors should gather sufficient fair valid reliable authentic and current evidence from a range of sources Sources of evidence may include direct observation reports from supervisors peers and colleagues project work samples organisation records and questioning Assessment should not require language literacy or numeracy skills beyond those required for the unit

The assessee will have access to all techniques procedures information resources and aids which would normally be available in the workplace

The method of assessment should be discussed and agreed with the assessee prior to the commencement of the assessment

What evidence is required for demonstration of consistent performance

Where evidence is provided from an initial value chain analysis then this may provide sufficient evidence Where evidence is from an ongoing updating of an analysis then evidence is required from a range of analysesproducts

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.

Value chain

Competitive manufacturing organisations encompass the entire production system, beginning with the customer, and includes the product sales outlet, the final assembler, product design, raw material mining and processing and all tiers of the value chain (sometimes called the supply chain). Any truly 'competitive' system is highly dependent on the demands of its customers and the reliability of its suppliers. No implementation of competitive manufacturing can reach its full potential without including the entire 'enterprise' in its planning.

Value added

Value added is measured against its contribution to the customer benefits/features and may be in the form of:

technical benefits/features

location benefits/features

aesthetic benefits/features

information benefits/features.

Just in time (JIT)

Just in time (JIT) is a production scheduling concept that calls for any item needed at a production operation - whether raw material, finished item, or anything in between, to be produced and available precisely when needed, neither a moment earlier nor a moment later.


Waste (also known as muda in the Toyota Production System and its derivatives) is any activity which does not contribute to customer benefit/features in the product. Within manufacturing, categories of waste include:

excess production and early production


movement and transport

poor process design


inefficient performance of a process

making defective items.

Waste for this unit may include activities which do not yield any benefit to the organisation or any benefit to the organisations customers.