This unit of competency covers the skills and knowledge required by an individual to evaluate the product or process outcomes of a team or work group in terms of their cost components and to be able to determine, in general terms, the cost impacts of alternative actions.

Typical decisions include the efficient organisation of own work and that of others in a work area or within a team/group and the improvement of throughput and cycle times.

Decisions are made within the scope of the authority of the individual and other employees in the area or team/group and according to procedures.

This unit primarily requires the application of skills associated with communication and information gathering, teamwork and problem solving to analyse the cost components of work processes. Initiative and enterprise, and planning and organising are also required to identify opportunities for improved cost-efficiency. This unit also requires a degree of self-management and learning to effectively operate and maintain skills and performance.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy the requirements of the elements and performance criteria and include the ability to improve cost factors on one (1) or more occasion and to:

analyse cost components

improve cost efficiency in an area related to own work

express cost factors in specific terms, such as cost per item, per unit of time or other measures of output.

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.

The unit should be assessed holistically and the judgement of competence shall be based on a holistic assessment of the evidence.

The collection of performance evidence is best done from a report and/or folio of evidence drawn from:

a single project which provides sufficient evidence of the requirements of all the elements and performance criteria

multiple smaller projects which together provide sufficient evidence of the requirements of all the elements and performance criteria.

A third-party report, or similar, may be needed to testify to the work done by the individual, particularly when the project has been done as part of a project team.

Assessment should use a real cost improvement activity in an operational workplace.

Knowledge evidence may be collected concurrently with performance evidence or through an independent process such as workbooks, written assessments or interviews (provided a record is kept).

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Conditions for assessment must include access to all tools, equipment, materials and documentation required, including relevant workplace procedures, product and manufacturing specifications associated with this unit.

Foundation skills are integral to competent performance of the unit and should not be assessed separately.

Assessors must satisfy the assessor competency requirements that are in place at the time of the assessment as set by the VET regulator.

The assessor must demonstrate both technical competency and currency.

Technical competence can be demonstrated through:

relevant VET or other qualification/Statement of Attainment AND/OR

relevant workplace experience

Currency can be demonstrated through:

performing the competency being assessed as part of current employment OR

having consulted with an organisation providing relevant environmental monitoring, management or technology services about performing the competency being assessed within the last twelve months.

This section describes those required skills (language, literacy and numeracy) that are essential to performance.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Not applicable

Competitive systems and practices