Elements and Performance Criteria

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
Cost components
Cost components may include:
fixed and variable costs, such as power/energy, materials, plant and equipment, salary and wages, and office expenses (e.g. telephone)
government taxes and charges
Variability in costs
Variability in costs should be assessed over a suitable time. The time should be sufficient to identify:
fluctuations in variable costs related to different volumes of sales, production or operations
abnormal cost fluctuations due to poor design of product or process, poor scheduling, faults, breakdowns and other waste
Process
Process includes all functions that go to meet customer requirements as well as other required functions (e.g. regulatory related functions). Examples include:
design
production
maintenance
logistics
office processes
Procedures
Procedures may include:
work instructions
standard operating procedures
drawings and specifications
manuals
formulas/recipes
batch sheets
temporary instructions and similar instructions provided for the smooth running of the organisation
good operating practice as may be defined by industry codes of practice (e.g. good manufacturing practice (GMP) and responsible care)
government regulations
Procedures may be:
written, verbal, computer based or in some other format
Benefits
Benefits should include:
positive benefits as well as negative benefits, such as quality, safety, reliability and similar issues which may be impacted by a cost saving

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:
identify the scope of their own work and the team or area work and relate it to the overall flow of work in the organisation
express cost factors in specific terms (e.g. cost per item, process and task)
identify and express cost factors in basic financial terms
analyse variability in costs and recommend improvements
use cost/benefit to select preferred improvement strategies.
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 project(
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 oracy, language and literacy capacity of the candidate and the work being performed.