Develop business plans in an organisation implementing competitive systems and practices

This unit of competency covers the skills and knowledge required to develop business plans in an organisation implementing competitive systems and practices.


This unit applies to a person in an organisation implementing competitive systems and practices (e.g. a production/plant manager, purchasing/technical officer or similar) who is required to develop a section business plan to meet the requirements of the overall strategic plan of the organisation. The plan includes the impact on the value stream and other critical competitive systems and practices factors. Due to competitive pressures this may be a reasonably frequent activity and can occur at any time over the business cycle. The plan may be in response to a specific change, or it may be a plan for the next period.

This unit assumes that up-to-date information about the organisation’s role in the value stream is available. For detailed mapping and analysis of the value stream refer to MSS405002A Analyse and map a value stream.

This unit primarily requires the application of skills associated with gathering, analysing and applying information and consulting with stakeholders. Problem solving, initiative and enterprise, and planning and organising are required to develop an effective and measurable business plan. This unit also requires aspects of self-management and learning to ensure feedback and new learning is integrated into competitive systems and practices strategies.


Not applicable.

Elements and Performance Criteria


Determine purpose of plan


Confirm reason for developing plan and expected outcomes from plan


Confirm purpose of plan with all relevant stakeholders


Check expected outcomes from plan with overall strategic plan for organisation


Identify any potential areas for conflict between proposed plan and strategic directions


Negotiate with relevant stakeholders to resolve issues


Develop objectives and strategies


Draft objectives for business plan


Draft strategies to achieve these objectives


Determine implications for value stream


Determine capital or workplace layout/organisation implications for objectives and strategies


Develop plans to meet objectives and strategies


Negotiate with relevant stakeholders over implications for objectives and strategies


In liaison with relevant stakeholders, develop plans to meet objectives


Determine relevant key performance indicators (KPIs) for plan


Check KPIs are appropriate for purpose of plan


Check plan will deliver planned purpose


Map plan to changed value stream


Adjust plan to optimise value stream


Validate plan with relevant stakeholders


Monitor the implementation of the plan


Release plan for implementation


Check the key progress points against the key stages of the plan


Note any discrepancies


Take appropriate action to ensure correct implementation of plan

Required Skills

Required skills

Required skills include:

communicating at all levels in the organisation and value stream and to audiences of different levels of literacy and numeracy

undertaking self-directed problem solving and decision-making on issues of a broad and/or highly specialised nature and in a wide variety of contexts

analysing organisation overall strategic plan for implications relevant to competitive systems and practices implementation

determining appropriate KPIs and methods of data collection

determining best means of gathering data, including data from 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

identifying value stream members and performance

determining implications of business plan for value stream

analysing data, including competitive systems and practices indicators and verifying results with stakeholders

determining key parameters for business plan, including:



objectives in terms of customer benefit

relationship to overall organisation objectives



implementation strategy

risk management

monitoring and adjustment strategy

approval process

Required knowledge

Required knowledge includes:

organisation strategic directions

business planning methods and types of plans

contingency planning and other risk mitigating planning tools

the organisation’s value stream

analysis of value stream

competitive systems and practices

application of quality principles

human resources and industrial relations

occupational health and safety (OHS)

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.

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:

develop a business plan that conforms to organisation overall strategic directions

determine implications of business plan for competitive systems and practices practice in organisation

determine KPIs appropriate for business plan

monitor the implementation of a business plan and make adjustments as necessary.

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 control/management

reports from supervisors/managers

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 studies/scenarios (particularly for assessment of contingencies, improvement scenarios, and so on)

targeted questioning

reports from supervisors, peers and colleagues (third-party 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.

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 SCADA software, ERP systems, MRP and proprietary systems

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


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


Plan may include:

any sort of business plan and may emphasise any of the areas for sub-plans over the others


Objectives may include performance in terms of:






competitive systems and practices

human, physical, financial and environmental/resource use

Objectives and strategies

Objectives and strategies may include:

human and industrial relations practice

material/component and resources use

sustainable environmental practices

sales and marketing


regulatory compliance

Relevant stakeholders

Relevant stakeholders may include:

other team members

other workers


technical specialists

other members of the value stream

Value stream

The value stream begins with the customer and includes all actions (both value adding and non value added) by both internal sections/departments and external organisations to meet a customer requirement.

Depending on the operations and the customer requirement stages where value stream actions may occur include:

sales outlet/representative

information gathering, data analysis and research

product design

raw material sourcing

intermediate processing

final assembler/ collation/preparation

support services (e.g. accounting, finance and legal)

storage and delivery to customer

after market support


Unit sector

Competitive systems and practices

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.