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Evidence Guide: MSS403030 - Improve cost factors in work practices

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

 

MSS403030 - Improve cost factors in work practices

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

Analyse cost components of work area or team function

  1. Identify cost components in the product or process.
  2. Identify costs factors under control of area or employees in the team.
  3. Identify causes of variability in costs.
  4. Analyse impact of costs on production or process activities undertaken.
Identify cost components in the product or process.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify costs factors under control of area or employees in the team.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify causes of variability in costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse impact of costs on production or process activities undertaken.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Improve cost-efficiency of processes and procedures

  1. Identify methods of improving productivity and/or reducing costs within area or team’s responsibility.
  2. Determine cost/benefit ratio of alternative methods of improving productivity and/or reducing costs.
  3. Consult with all relevant stakeholders regarding possible changes.
  4. Recommend changes which will increase productivity and reduce cost and variability.
  5. Implement recommended changes in consultation with relevant stakeholders.
Identify methods of improving productivity and/or reducing costs within area or team’s responsibility.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine cost/benefit ratio of alternative methods of improving productivity and/or reducing costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult with all relevant stakeholders regarding possible changes.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommend changes which will increase productivity and reduce cost and variability.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement recommended changes in consultation with relevant stakeholders.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Analyse cost components of work area or team function

1.1

Identify cost components in the product or process.

1.2

Identify costs factors under control of area or employees in the team.

1.3

Identify causes of variability in costs.

1.4

Analyse impact of costs on production or process activities undertaken.

2

Improve cost-efficiency of processes and procedures

2.1

Identify methods of improving productivity and/or reducing costs within area or team’s responsibility.

2.2

Determine cost/benefit ratio of alternative methods of improving productivity and/or reducing costs.

2.3

Consult with all relevant stakeholders regarding possible changes.

2.4

Recommend changes which will increase productivity and reduce cost and variability.

2.5

Implement recommended changes in consultation with relevant stakeholders.

Required Skills and Knowledge

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Analyse cost components of work area or team function

1.1

Identify cost components in the product or process.

1.2

Identify costs factors under control of area or employees in the team.

1.3

Identify causes of variability in costs.

1.4

Analyse impact of costs on production or process activities undertaken.

2

Improve cost-efficiency of processes and procedures

2.1

Identify methods of improving productivity and/or reducing costs within area or team’s responsibility.

2.2

Determine cost/benefit ratio of alternative methods of improving productivity and/or reducing costs.

2.3

Consult with all relevant stakeholders regarding possible changes.

2.4

Recommend changes which will increase productivity and reduce cost and variability.

2.5

Implement recommended changes in consultation with relevant stakeholders.

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.

Range Statement

This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Competitive systems and practices include one or more of:

lean operations

agile operations

preventative and predictive maintenance approaches

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.

Cost components include consideration of all of:

fixed and variable costs, such as power/energy, materials and other inputs, plant and equipment, salary and wages, and office expenses (e.g. telephone)

government taxes and charges.

Causes of variability in costs include one or more of:

time-based variation

fluctuations in variable costs related to different volumes of sales, production or operations

fluctuations in fixed/overhead costs related to changes in the economy, financial markets and similar

abnormal cost fluctuations due to poor design of product or process, poor scheduling, faults, breakdowns and other muda (waste).

Process includes consideration of all of:

all functions that go to meet customer requirements

all other required functions (e.g. regulatory related functions)

design

production

maintenance

logistics

office processes.

Procedures (written, verbal, visual, computer based, etc.) include one or any combination of:

work instructions

standard operating procedures (SOPs)

safe work method statements

formulas/recipes

batch sheets

temporary instructions

any similar instructions provided for the smooth running of the plant.

Benefits include all of:

positive benefits

negative benefits

quality

safety

reliability

similar issues which may be impacted by a cost saving.