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Elements and Performance Criteria

  1. Identify cost components deriving from customer benefit and other costs
  2. Compare required performance of product or process steps with actual performance
  3. Minimise waste

Range Statement

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.

Customer features/ benefits include all of:

characteristics of the product or service which the customer perceives as meeting their need

characteristics of the product or service which the customer perceives as adding value

financial or features items which the customer perceives and a benefit.

Performance includes all of:

takt - the allowable time to produce one product at the rate and quality customers are demanding it

the rate of output of the plant compared to the takt time.

Customer-related targets includes all of:

internally set financial targets that contribute to meeting customer features/benefits

operational targets that contribute to meeting customer features/benefits

other targets that contribute to meeting customer features/benefits.

Contributing cost components include all of:

costs that make a direct contribution to customer features/benefits.

costs that need to be incurred (although they may be minimised) in order to gain the customer feature/benefit.

Non-contributing cost components include all of:

costs that do not contribute to customer features/benefits

costs that must be maintained, such as regulatory compliance costs which do not contribute to customer features and so should be minimised

costs that neither contribute to customer features/benefits nor must be maintained (muda) and so should be eliminated if possible.

Muda (waste) includes all of:

any activity which does not contribute to customer or organisation benefit/features in the product

activities which do not yield any benefit to the organisation or any benefit to the organisation’s customers

excess production and early production

delays

movement and transport

poor process design

inventory

inefficient performance of a process

making defective items.

Knowledge Evidence

Must provide evidence that demonstrates knowledge relevant to their job role sufficient to fulfil their job role under routine only supervision, including:

contributions towards customer perceived benefit

concepts of expense, income and capital

fixed and variable cost components relevant to own work:

power/energy

materials, plant and equipment

production or process time, including impact of salary and wages

office expenses

government taxes and charges

relative impact of each of these

financial and non-financial impacts of cost reductions

the difference between internally and externally controlled costs

difference between overhead, labour and consumables.