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Elements and Performance Criteria

1. Analyse the current operations systems and processes
   • Review the reasons for introducing competitive systems and practices and confirm the expected benefits with relevant stakeholders
   • Determine any internal limiting factors which will constrain the introduction of competitive systems and practices
   • Determine any external limiting factors which will constrain the introduction of competitive systems and practices
   • Quantify expected returns from achieving the benefits of introducing competitive systems and practices

Required Skills

Required skills

Required skills include analysing current processes used in the SME including appropriateness of strategy operations and internal and external relationships including value stream members distinguishing between and prepare strategic and tactical plans selecting and adapting appropriate competitive systems and practices and techniques for an SME environment such as value stream mapping S Just in Time mistake proofing process mapping kaizen and kaizen blitz setting of KPIsmetrics identification and elimination of waste developing KPIs appropriate for an SME communicating to individuals with different levels of literacy and numeracy monitoring implementation and establishing continuous improvement

Required knowledge

Required knowledge includes competitive systems and practices principles and tools including value stream mapping S JIT mistake proofing process mapping kaizen and kaizen blitz setting of KPIsmetrics identification and elimination of waste establishing customer pull standardisation quick changeovers continuous improvement principles principles for deciding acceptable benefitcost ratios in a SME

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	Evidence of the ability to organise implementation of competitive systems and practices in a SME should be available
Critical aspects for assessment and evidence required to demonstrate competency in this unit	A person who demonstrates competency in this unit must be able to provide evidence of their ability to analyse existing SME operations determine competitive systems and practices key performance indicators for a SME organisation determine improvements that deliver the greatest overall benefit develop and supervise the implementation of competitive systems and practices strategy techniques and tools in a SME
Context of and specific resources for assessment	Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices Access may be required to workplace procedures and plans relevant to work area specifications and documentation relating to planned currently being implemented or implemented changes to work processes and procedures relevant to the assessee documentation and information in relation to production waste overheads and hazard controlmanagement reports from supervisorsmanagers case studies and scenarios to assess responses to contingencies
Method of assessment	A holistic approach should be taken to the assessment Competence in this unit may be assessed by using a combination of the following to generate evidence demonstration in the workplace workplace projects suitable simulation case studiesscenarios particularly for assessment of contingencies improvement scenarios and so on targeted questioning reports from supervisors peers and colleagues thirdparty reports portfolio of evidence In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge Where applicable reasonable adjustment must be made to work environments and training situations to accommodate ethnicity age gender demographics and disability
Guidance information for assessment	Assessment processes and techniques must be culturally appropriate and appropriate to the oracy language and literacy capacity of the candidate and the work being performed

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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.
Competitive systems and practices	Competitive systems and practices may include, but are not limited to: lean operations agile operations preventative and predictive maintenance approaches monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP) and proprietary systems statistical process control systems, including six sigma and three sigma 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 Competitive systems and practices should be interpreted so as to take into account: the stage of implementation of competitive systems and practices the size of the enterprise the work organisation, culture, regulatory environment and the industry sector
Stakeholders	Stakeholders may include: managers supervisors employees and their representatives shareholders suppliers customers service providers
Internal limiting factors	Internal limiting factors may include: free cash management time and expertise machinery work organisation and workforce skills and knowledge
External limiting factors	External limiting factors may include lack of bargaining power or effective communication with: suppliers customers financial institutions other factors
Expected returns	Expected returns may include factors such as: cost savings due to more consistent or higher quality benefits from greater on-time delivery savings from lower inventories and reduction in waste
Actions which will free up required resources	Actions which will free up required resources will vary according to the size of the SME and the nature of the operations undertake. Examples include: reduction of inventory reduction of scrap decreased throughput times changes in approval processes/delegations use of computers instead of paper-based processes
Prioritise plans	Prioritise plans according to criteria such as: greatest benefit ease of implementation best fit with strategy available resources

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