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Elements and Performance Criteria

  1. Analyse cost components of work area or team function
  2. Improve cost-efficiency of processes and procedures

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.

Cost components include consideration of all of:

fixed and variable costs, such as power/energy, materials and other inputs, plant and equipment, salary and wages, and office expenses (e.g. telephone)

government taxes and charges.

Causes of variability in costs include one or more of:

time-based variation

fluctuations in variable costs related to different volumes of sales, production or operations

fluctuations in fixed/overhead costs related to changes in the economy, financial markets and similar

abnormal cost fluctuations due to poor design of product or process, poor scheduling, faults, breakdowns and other muda (waste).

Process includes consideration of all of:

all functions that go to meet customer requirements

all other required functions (e.g. regulatory related functions)

design

production

maintenance

logistics

office processes.

Procedures (written, verbal, visual, computer based, etc.) include one or any combination of:

work instructions

standard operating procedures (SOPs)

safe work method statements

formulas/recipes

batch sheets

temporary instructions

any similar instructions provided for the smooth running of the plant.

Benefits include all of:

positive benefits

negative benefits

quality

safety

reliability

similar issues which may be impacted by a cost saving.

Knowledge Evidence

Must provide evidence that demonstrates knowledge relevant to their job role sufficient to fulfil their job role independently, including:

cost components of products made

costs concepts, such as expense/capital, income and benefit/cost ratios

major cost contributors to product (e.g. energy, materials/other inputs, labour and distribution, and so on depending on the product and process)

distinguish between internally and externally controlled costs

distinguish between overhead/capital, expense, labour and other consumables.