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Evidence Guide: MSS405031 - Undertake value analysis of product or process costs in terms of customer requirements

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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!

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MSS405031 - Undertake value analysis of product or process costs in terms of customer requirements

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

Analyse customer benefits to determine appropriate or muda (waste) costs

  1. Analyse product or service to determine features/benefits perceived by customer in product.
  2. Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda.
  3. Determine any additional features that may be added to improve saleability.
  4. Analyse muda cost components and allocate to direct and indirect cost categories.
  5. Determine options for reducing direct and indirect muda costs.
  6. Select cost-related actions which maximise customer benefits and minimise costs.
  7. Where required, undertake competitor benchmarking to provide reference points.
Analyse product or service to determine features/benefits perceived by customer in product.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine any additional features that may be added to improve saleability.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse muda cost components and allocate to direct and indirect cost categories.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine options for reducing direct and indirect muda costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select cost-related actions which maximise customer benefits and minimise costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Where required, undertake competitor benchmarking to provide reference points.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse performance variance

  1. Identify muda processing or operational steps for product or service following completion of customer benefit analysis.
  2. Analyse all costs and determine methods of reducing costs and muda.
  3. Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability.
  4. Submit plan and recommendations to stakeholders.
Identify muda processing or operational steps for product or service following completion of customer benefit analysis.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse all costs and determine methods of reducing costs and muda.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Submit plan and recommendations to 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 customer benefits to determine appropriate or muda (waste) costs

1.1

Analyse product or service to determine features/benefits perceived by customer in product.

1.2

Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda.

1.3

Determine any additional features that may be added to improve saleability.

1.4

Analyse muda cost components and allocate to direct and indirect cost categories.

1.5

Determine options for reducing direct and indirect muda costs.

1.6

Select cost-related actions which maximise customer benefits and minimise costs.

1.7

Where required, undertake competitor benchmarking to provide reference points.

2

Analyse performance variance

2.1

Identify muda processing or operational steps for product or service following completion of customer benefit analysis.

2.2

Analyse all costs and determine methods of reducing costs and muda.

2.3

Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability.

2.4

Submit plan and recommendations to stakeholders.

Required Skills and Knowledge

Elements describe the essential outcomes.

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

1

Analyse customer benefits to determine appropriate or muda (waste) costs

1.1

Analyse product or service to determine features/benefits perceived by customer in product.

1.2

Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda.

1.3

Determine any additional features that may be added to improve saleability.

1.4

Analyse muda cost components and allocate to direct and indirect cost categories.

1.5

Determine options for reducing direct and indirect muda costs.

1.6

Select cost-related actions which maximise customer benefits and minimise costs.

1.7

Where required, undertake competitor benchmarking to provide reference points.

2

Analyse performance variance

2.1

Identify muda processing or operational steps for product or service following completion of customer benefit analysis.

2.2

Analyse all costs and determine methods of reducing costs and muda.

2.3

Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability.

2.4

Submit plan and recommendations to 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 undertake value analysis on one (1) or more products or processes and to:

distinguish between appropriate costs and muda

distinguish between direct and indirect costs

determine methods of reducing both appropriate costs and muda

develop a plan to increase customer perceived benefits/ saleability and/or reduce costs and muda.

Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to undertake value analysis, including knowledge of:

cost components, direct and indirect costs

customer perceived benefits

factors influencing saleability

impact of customer features/benefits on sales, market share and firms profitability

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

types of muda

methods of reducing muda.

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.

Muda includes all of:

excess production and early production

delays

movement and transport

poor process design

inventory

inefficient performance of a process

making defective items

activities which do not yield any benefit to the organisation or any benefit to the organisations customers.

Cost includes all of:

the monetary value of expenditures able to be directly identified for supplies, services, direct labour, components, cost of inventory, faults and reworks, rejects/scrap, equipment and other items used in the production of the product

allocations and estimates for indirect costs (e.g. indirect labour, rent, power and water) where a direct monetary value cannot be identified.