This unit describes the skills and knowledge required to identify major cost components of a process or part of a process and their basic relationship to customer benefit or customer perceived value. For the purposes of this unit any cost that does not directly lead to customer benefit is considered waste (muda). It differs from MSS403086 Improve cost factors in work practices, which focuses on costs rather than customer benefit. The term customer benefit is used to refer to expected value for the customer and the unit does not require review of customer feedback or determination of customer perceived value. Where information on customer perceived value is available this can be taken to meet the requirements of customer benefit. This unit applies to individuals who are required to determine costs that contribute to delivering customer benefits and those that don’t, and use this to identify changes within own work or work area that can reduce waste (muda).This unit applies to any organisation that is implementing continuous improvement or more formal competitive systems and practices. No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.