Unit of competency Outline

Date retreived
23/07/2026 10:40 PM AWST

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Manage a value chain

Manage a value chain

Unit of competency
National Code
MSACMS602A
State Code
W8980
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/12/2005
State Implementation and Classification
Approved Date
30/06/2011
Field of Education
080301 - Business Management
Original Release Date
30/06/2011
Nominal Hours
60
Description
This unit covers the knowledge and skills needed to manage a value chain, a supply chain or a demand chain, including the close liaison with suppliers and customers and even the managing of the supply/demand chain of smaller suppliers/customers (if they wish it).This unit covers the managing of the supply chain, the demand chain as well as the overall value chain and may be applied to the managing of the chain internally/externally within an organisation.
Notes
Elements and Performance Criteria
1. Evaluate the value chain
  • 1.1. Identify all members in the value chain for product/s in area of responsibility
  • 1.2. Identify value added by each member of the chain
  • 1.3. Identify acute and chronic issues which impact on the value chain
  • 1.4. Develop priority list of items for improvement
2. Liaise regularly with chain members
  • 2.1. Establish and maintain regular liaison with all chain members
  • 2.2. Identify current and forecast issues with each member
  • 2.3. Work with members to help them address their issues
  • 2.4. Build trust and confidence in the relationship
  • 2.5. Develop a priority list of items for improvement
  • 2.6. Negotiate with all chain members to ensure improvements benefit chain members and improve the benefits/features perceived by the ultimate customer
3. Monitor the value added at each step
  • 3.1. Identify changes in value added by each chain member
  • 3.2. Identify areas where changes to value added are required
  • 3.3. Develop a priority list of items for improvement
  • 3.4. Work with chain member to bring about improvements to value added
4. Continue to reduce waste
  • 4.1. Identify waste in value chain
  • 4.2. Work with chain members to continually reduce waste
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.
Value chain
Competitive manufacturing organisations encompass the entire supply system, beginning product design, raw material mining and processing and all tiers of the value chain. Any truly 'competitive' system is highly dependent on the demands of its customers and the reliability of its suppliers. No implementation of competitive manufacturing can reach its full potential without including the entire 'enterprise' in its planning.
Value added
Value added is measured against its contribution to the customer benefits/features and may be in the form of:
technical benefits/features
location benefits/features
aesthetic benefits/features
information benefits/features.
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.
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 be continuously monitoring the value chain to drive further improvement both in their own organisation and also others in the value chain.

What are the specific resource requirements for this unit?

Access to an organisation following competitive manufacturing.
What critical aspects of evidence are required to demonstrate competency in this unit?

Evidence of ongoing improvements in the value chain should be available, along with the waste reductions which flow from it.
In what context should assessment occur?

Assessment needs to occur in an organisation pursuing competitive manufacturing or by a suitable project or case study.
Are there any other units which could or should be assessed with this unit or which relate directly to this unit?

This unit could be assessed concurrently with other units related to development and improvements of systems for competitive manufacturing.
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 should be from an ongoing monitoring and improvement of the supply chain.
Replaces
State Code National Code Title Type
W2568 MCMS602A Manage a value chain Unit of competency
Replaced By
State Code National Code Title Type
WD547 MSS405003A Manage a value stream Unit of competency
State Code National Code Title Type
W529 MSA61108 Advanced Diploma of Competitive Manufacturing Qualification
D552 MSS50111 Diploma of Sustainable Operations Qualification