MSS408004A
Develop the value stream

This unit of competency covers the skills and knowledge required to develop or further develop a positive relationship with all value stream members so that they can work cooperatively to their mutual benefit and so deliver better value for the customer.

Application

The unit applies to managers and people with a similar sphere of influence and scope of authority and responsibility who are responsible for the further development of the value stream. Individuals completing this unit should be familiar with competitive systems and practices, value stream mapping and have an ability to relate to personnel in external organisations. Where this is not the case the following units may be completed to supplythe necessary skills:

MSS405002A Analyse and map a value stream

MSS405010A Manage relationships with non-customer external organisations.

This unit applies where the value stream has been analysed and mapped and is already being managed. This unit is more about the relationships along the value stream than the direct flow of value, materials or goods. All value stream members are potentially covered.

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

The equivalent team leader level unit to this unit is MSS407004A Facilitate improvements in the internal value stream.


Prerequisites

Not applicable.


Elements and Performance Criteria

1

Review relationship with value stream members

1.1

Identify areas which could be improved

1.2

Develop position of own organisation with regard to these areas

1.3

Discuss areas of interest (within relevant regulatory framework) with relevant value stream personnel and develop position of own organisation with regard to any issues raised

1.4

Develop an agreed list of areas for action

1.5

Validate list with own management

1.6

Agree on a framework for progressing agreed list

2

Manage changes

2.1

Take required actions within own organisation to implement changes

2.2

Monitor progress of changes within own organisation

2.3

Take required actions to ensure changes achieve their objective

2.4

Monitor changes across value stream and their impacts

2.5

Provide appropriate assistance to value stream members implementing agreed changes

3

Manage ongoing relationship with value stream members

3.1

Undertake regular review of value stream relationships

3.2

Review benefits obtained and costs incurred by value stream members

3.3

Review benefits obtained by customer/value stream as a whole

3.4

Optimise benefit/cost distributions and ratios across the value stream

3.5

Explore areas of mutual benefit

3.6

Analyse value stream synergies and conflicts

3.7

Develop approaches to maximise customer benefit flowing from the value stream

Required Skills

Required skills

Required skills include:

analysing proposed and past changes to operations, products and processes within the value stream to determine if change adds or has added value to the customer

making significant, high level, independent judgements on required improvements in the value stream

demonstrating responsibility and broad-ranging accountability for decisions

communicating and explaining quantitative and qualitative concepts and data with representatives of the value stream across a range of numeracy and literacy levels

analysing views and reasons put forward by others on past performance of the value stream and relating to metrics and other evidence

prioritising value stream improvement proposals and related actions and justifying priorities to others

negotiating with others using analysis of information, including past and proposed metrics and concepts, to achieve a consensus position

analysing restrictions and non-conformances to root cause

standardising processes along the value stream

Required knowledge

Required knowledge includes:

competitive systems and practices principles, processes and techniques

organisational goals, operations, products and processes

operations, products and processes of value stream members

continuous improvement and workplace improvement processes and procedures

approval processes within own organisation and value stream members

cost/benefit analysis methods

methods of determining the impact of a change

communication methods across a variety of media and formats, including preparation of formal proposals and negotiations

customer perception of value

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 value stream relationships and maximise the benefit flowing from them

present and facilitate consensual improvements across the value stream

critically evaluate the strengths and weaknesses of the value stream and its members

facilitate and monitor changes along the value stream

monitor changes and improvements against qualitative and quantitative indicators.

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

Just in Time (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

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

Codes of practice/standards

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

Health, safety and environment (HSE)

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

Areas of interest

Areas of interest include:

commercial and contractual relationships with value stream members and include common regulatory and commercial frameworks

Change

Changes may:

be to plant, procedures or practice

arise from continuous improvement (or an improvement event/project

have been intended to make an improvement or to implement new products, technology or systems

include the implementation of a change

Changes do not include an engineering review of a major capital expenditure or similar review

Presentation of information

Information may be presented:

in terms of graphs or other appropriate visual forms

Stakeholders

Stakeholders may include:

work team members, value stream members as well as other stakeholders

Results of change

Results of change may include:

an initial improvement followed by a return to previous performance

a change which has resulted in continued improvement

continued detriment or other variations over time

Improvements

Improvements may:

be to process, plant, products, procedures or practice

include changes to ensure positive benefits are maintained

Manager

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


Sectors

Unit sector

Competitive systems and practices


Employability Skills

This unit contains employability skills.


Licensing Information

Not applicable.