Develop the competitive systems and practices approach

This unit of competency covers the skills and knowledge required to take a strategic view and further develop the organisation’s competitive systems and practices philosophies and approaches.


This unit applies to organisation leaders and is intended for managers and people with a similar sphere of influence and scope of authority and responsibility. It is a global unit covering the analysis and further development of the overall competitive systems and practices approach adopted by an organisation to ensure that the development fits with customer and other value stream member requirements. For a greater focus on reviewing and developing specific competitive systems and practices refer to MSS408002A Audit the use of competitive tools.

The unit applies to individuals who are familiar with competitive systems and practices as applied at an organisational level. Where this is not the case the following units can be completed to supply the necessary skills:

MSS405001A Develop competitive systems and practices for an organisation

MSS405002A Analyse and map a value stream

MSS405004A Develop business plans in an organisation implementing competitive systems and practices

MSS405011A Manage people relationships.

The following units may also be relevant in some circumstances:

MSS405005A Manage competitive systems and practices responding to individual and unique customer orders

MSS405007A Introduce competitive systems and practices to a small or medium organisation.

This unit may also be applied to service organisations applying competitive systems and practices principles.


Not applicable.

Elements and Performance Criteria


Analyse organisation’s current competitive systems and practices approach


Identify the organisation’s competitive advantages and weaknesses


Identify current health, safety and environment (HSE) profile


Determine current competitive systems and practices/ proactive maintenance strategy and analyse for consistency of application across organisation


Compare the strategy to current competitive needs


Determine potential changes which might impact on competitive systems and practices strategy


Identify areas where improvement is necessary


Discuss potential improvement areas with relevant managers


Analyse fit with value stream


Review value stream map against current competitive and strategic position


Determine the impact of changes which have occurred


Identify areas where improvement is necessary


Review and modify the competitive systems and practices approach


Determine required strategy changes


Negotiate changes with relevant stakeholders


Develop an agreed revised strategy


Develop an agreed implementation plan


Obtain support from process/system owners


Manage the development of cascading tactical implementation plans


Implement modified strategy


Obtain necessary permissions and authorities


Monitor the implementation of the modified strategy and tactical plans


Take required actions to achieve planned outcomes


Check that planned improvements have occurred


Take action to sustain improvement by standardising

Required Skills

Required skills

Required skills include:

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

analysing current state/situation of the organisation and value stream, including appropriateness of vision, strategy, operations and internal and external relationships especially with value stream members

overseeing the setting of appropriate key performance indicators (KPIs)

generating and evaluating complex proposals for improvement based on qualitative and quantitative data

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

prioritising situations and actions based on:

value for customers

cost/benefit analysis

readiness analysis

tactical survival response

reviewing and modifying strategies and KPIs, as required

Required knowledge

Required knowledge includes:

competitive systems and practices at both a strategic and tools level, including advantages and limitations of:

value stream mapping


Just in Time (JIT)

mistake proofing

process mapping

establishing customer pull

breakthrough improvement and continuous improvement (kaizen and kaizen blitz)

setting of KPIs/metrics

identification and elimination of waste (muda)

six sigma and lean six sigma

continuous improvement processes, including implementation, monitoring and evaluation strategies

types of KPIs and their impacts on performance

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 the ability to:

critically review current competitive systems and practices strategy and tactical implementation initiatives and plans in organisation and, where relevant, the value stream

determine appropriateness of current KPIs

establish process for ongoing review of strategies and tactical implementation initiatives

implementation of improvement plans

modify strategies, tactics and KPIs, as required.

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 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 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


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

Codes of practice/standards

Where reference is made to industry codes of practice, and/or Australian/international standards, the latest version must be used


All changes implemented are expected to be at least neutral, or preferably beneficial, in their impact on HSE


Organisation includes:

any part of a operations or service organisation

companies, government bodies or other body of people aiming to produce a product to service a customer

Sustaining improvement

Improvement may be sustained by including it in:

standard procedures and work instructions

standard practice

other relevant documents and practices


Manager may include:

any person who may have either a permanent or an ad hoc role in facilitating the function of multiple teams in a workplace, departments or entire organisations


Unit sector

Competitive systems and practices

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.