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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify cost components deriving from customer benefits and other costs
   • Identify customer features/benefits in product or process being undertaken
   • Identify cost components which deliver customer features/benefits and those which don't
2. Compare required performance of product or process steps with actual performance
   • Identify performance required to meet customer needs in own work and that of team
   • Identify actual performance
   • Compare cost components of products or process with current customer-related targets
   • Separate costs components into those that contribute to customer features/benefits and those that do not contribute
   • Determine non-contributing cost components which are under control of the individual or team
3. Minimise waste
   • Recommend changes to eliminate or reduce waste
   • Adopt changes which minimises waste
   • Monitor effect of changes to ensure gains are made against customer features/benefits

Required Skills

Required skills

numeracy analysis communication and literacy

Required knowledge

ability to access company information about customer featuresbenefits cost components of products made costs concepts such as expense and income major cost contributors to product eg energy the difference between internally and externally controlled costs difference between overhead labour and consumables

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the Performance Criteria required skills and knowledge the Range Statement and the Assessment Guidelines for this Training Package
Overview of assessment requirements	An employee will as part of their everyday routine aim to minimise waste and establish a focus in their work on meeting targets that contribute to customer featuresbenefits
What are the specific resource requirements for this unit	Access to a workplace implementing competitive manufacturing strategies No other specific resources are required
What critical aspects of evidence are required to demonstrate competency in this unit	Evidence of being able to identify cost factors in employees work in terms of customer featuresbenefits and having made appropriate recommendations to reduce waste Evidence of implementing changes which reduce waste
In what context should assessment occur	Assessment will need to occur in a workplace or through a project in a simulated work environment
Are there any other units which could or should be assessed with this unit or which relate directly to this unit	This unit may be assessed concurrently with appropriate units on continuous improvement
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	Evidence should be available from several episodes of analysis and implementation of recommendations to reduce waste and improve customer featuresbenefits

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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.
Customer features/benefits	Customer features/benefits are those characteristics of the product or service which add value to the customer, this value may be assessed in financial or features terms. The customer may be internal or external.
Performance	Performance may be thought of as the rate of output of the plant compared to the rate required to meet demand. Performance might also be thought of in terms of takt where takt time is the allowable time to produce one product at the rate and quality customers are demanding it. This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to takt time).
Customer-related targets	Customer-related targets are the internally set financial and operational targets that contribute to meeting customer features/benefits.
Non-contributing cost components	Some costs incurred make a direct contribution to customer features/benefits. These costs continue to need to be incurred (although they may be minimised) in order to gain the customer feature/benefit. Other costs do not contribute to customer features/benefits (non-contributing cost components) and either must be maintained such as regulatory compliance and occupational health and safety (OHS) costs while other costs are not required and do not contribute to customer features and so should be eliminated if possible. This is also defined in terms of waste - see below.
Waste	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 delays movement and transport poor process design inventory 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.

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