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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. Analyse cost components of team's function
   • Identify cost components in the product or process
   • Identify costs factors under control of the team
   • Identify causes of variability in costs
   • Analyse impact of costs on production or process activities undertaken by team
2. Improve cost efficiency of team processes
   • Identify methods of improving productivity and/or reducing costs within team's area of responsibility
   • Determine cost/ benefit ratio of alternative methods improving productivity and/or reducing costs
   • Consult with all relevant stakeholders regarding possible changes
   • Recommend changes which will increase productivity and reduce cost and variability
   • Implement recommended changes in consultation with relevant stakeholders

Required Skills

Required skills

basic numeracy

Required knowledge

cost components of products made costs concepts such as expense income and cost benefit 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	The person will as part of their routine decision making aim to maximise the cost efficiency of their work team within their scope of authority There should be evidence of their doing so
What critical aspects of evidence are required to demonstrate competency in this unit	Evidence of routinely analysing cost factors relevant to their teams operation and implementing improvements to the teams cost efficiency
In what context should assessment occur	Assessment will need to occur in a workplace or by use of a work based 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 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 over a period of time or from more than one process or product
What are the specific resource requirements for this unit	Access to a workplace implementing competitive manufacturing strategies No other specific resources are required

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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.
Cost components	Cost components may include fixed and variable costs such as power/energy, materials, plant and equipment, salary and wages, office expenses such as telephone, and government taxes and charges.
Process	Process may include a production, maintenance, logistics or office process in a manufacturing environment.
Procedures	Procedures include all work instructions, standard operating procedures, formulas/recipes, batch sheets, temporary instructions and similar instructions provided for the smooth running of the plant. They may be written, verbal, computer based or in some other form. For the purposes of this Training Package, 'procedures' also includes good operating practice as may be defined by industry codes of practice (e.g. Good Manufacturing Practice (GMP), Responsible Care) and government regulations.
Benefits	Benefits should include positive benefits as well as negative benefits such as quality, safety, reliability and similar issues which may be impacted by a cost saving.

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