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Evidence Guide: MSACMT630A - Optimise cost of product

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

MSACMT630A - Optimise cost of product

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse total cost components of product

  1. Identify all cost components of product
  2. Allocate cost components to major categories such as overhead, depreciation, energy, consumables and labour
  3. Distinguish between costs which directly deliver customer features/benefits and waste
Identify all cost components of product

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Allocate cost components to major categories such as overhead, depreciation, energy, consumables and labour

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Distinguish between costs which directly deliver customer features/benefits and waste

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Optimise costs

  1. Analyse causes of costs which lead to customer features/benefit
  2. Determine methods of increasing the customer benefit/cost ratio
  3. Analyse causes of waste costs
  4. Determine methods of reducing/eliminating waste costs
  5. Analyse interactions between cost components
  6. Check that one method of reducing costs does not cause an increase in another cost/reduction in consumer benefit
  7. Check that cost reduction plans do not reduce required levels of regulatory compliance or Occupational Health and Safety (OHS)
Analyse causes of costs which lead to customer features/benefit

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Determine methods of increasing the customer benefit/cost ratio

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Analyse causes of waste costs

Completed
Date:

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Evidence:

 

 

 

 

 

 

 

Determine methods of reducing/eliminating waste costs

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Analyse interactions between cost components

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Check that one method of reducing costs does not cause an increase in another cost/reduction in consumer benefit

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Check that cost reduction plans do not reduce required levels of regulatory compliance or Occupational Health and Safety (OHS)

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Implement cost optimisation

  1. Develop cost optimisation plans
  2. Negotiate with relevant people to agree on implementation plans
  3. Take actions to implement the cost optimisation
  4. Monitor the implementation of the cost optimisation
  5. Make adjustments to the plan as required
Develop cost optimisation plans

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Negotiate with relevant people to agree on implementation plans

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Take actions to implement the cost optimisation

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Monitor the implementation of the cost optimisation

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Make adjustments to the plan as required

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the assessment guidelines for this training package.

Overview of assessment requirements

The person will select a product to analyse and determine cost components. Costs will be identified as waste or otherwise as an aid to determining their treatment. The cost reduction plans will optimise the cost of the product overall in terms of benefit delivered.

What are the specific resource requirements for this unit?

Access to a workplace implementing competitive manufacturing strategies. No other specific resources are required.

In what context should assessment occur?

Assessment will need to occur in a workplace.

Are there any other units which could or should be assessed with this unit or which relate directly to this unit?

This unit may be assessed concurrently with appropriate units on continuous improvement/kaizen.

What method of assessment should apply?

Assessors must be satisfied that the person can consistently perform the unit as a whole, as defined by the Elements, Performance Criteria, skills and knowledge. A holistic approach should be taken to the assessment.

Assessors should gather sufficient, fair, valid, reliable, authentic and current evidence from a range of sources. Sources of evidence may include direct observation, reports from supervisors, peers and colleagues, project work, samples, organisation records and questioning. Assessment should not require language, literacy or numeracy skills beyond those required for the unit.

The assessee will have access to all techniques, procedures, information, resources and aids which would normally be available in the workplace.

The method of assessment should be discussed and agreed with the assessee prior to the commencement of the assessment.

What evidence is required for demonstration of consistent performance?

Evidence from a single optimisation may be adequate, although generally analyses of a few products with different cost structures or customer benefit structures would be required.

Required Skills and Knowledge

Required skills

calculation

analysis

problem solving

planning

Required knowledge

cost components of product

major costs which are controllable (and how to control them)

types of waste

interrelationship of cost components and costs and benefits

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.

Waste

Waste (also known as muda in the Toyota Production System and its derivatives) is any activity which does not contribute to customer benefit/features in the product. Within manufacturing, categories of waste include:

excess production and early production

delays

movement and transport

poor process design

inventory

inefficient performance of a process

making defective items.

Waste for this unit may include activities which do not yield any benefit to the organisation or any benefit to the organisations customers.