Elements and Performance Criteria
- Analyse total cost components of a product or service
- Optimise costs
- Analyse causes of costs which lead to customer features/benefit.
- Determine methods of increasing the customer benefit/cost ratio.
- Analyse causes of muda costs.
- Determine methods of reducing/eliminating muda costs.
- Analyse interactions between cost components.
- Check that one method of reducing costs does not cause an increase in another cost/reduction in consumer benefit.
- Check that cost reduction plans do not reduce required levels of regulatory compliance or work health and safety (WHS).
- Implement cost optimisation