Unit of competency Outline

Date retreived
22/07/2026 1:33 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Apply cost factors to work practices

Apply cost factors to work practices

Unit of competency
National Code
MSS402030A
State Code
WD501
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
02/05/2012
State Implementation and Classification
Approved Date
24/10/2014
Field of Education
080301 - Business Management
Original Release Date
24/10/2014
Nominal Hours
35
Description
This unit of competency covers the skills and knowledge required by an individual to identify cost components in their work and to be able to determine, in general terms, the cost impacts of alternative actions.
Notes
Elements and Performance Criteria
1 Identify the major cost components of product or process in own work area
  • 1.1 Identify cost components in the product or process in own work area
  • 1.2 Recognise the impact of current or alternative actions on costs
2 Identify constraints to cost-efficiency
  • 2.1 Identify required production/process rate and major costs
  • 2.2 Identify costs factors under individual or team control
  • 2.3 Relate identified costs factors to impact on overall cost of production/process
  • 2.4 Identify cost factors that are a constraint to cost-efficiency in own work area
3 Apply cost-efficient work practices
  • 3.1 Identify and explain to relevant people the implications of possible actions/changes to improve cost-efficiency in simple financial terms
  • 3.2 Identify non-financial implications of proposed changes in discussion with relevant people
  • 3.3 Select actions which minimise overall costs
  • 3.4 Monitor actions to ensure cost-efficiency in own work area is maintained
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 include:
fixed and variable costs, such as power/energy, materials, plant and equipment, production or process time, including impact on salary and wages
office expenses, such as telephone
government taxes and charges
Process
Process may include:
a production, maintenance, logistics, office or other support process in an organisation
Overall cost
Overall cost may include:
the assessment of negative and positive financial implications
negative long-term issues, such as occupational health and safety (OHS), environmental and regulatory issues
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 and their teams 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) and not just in a general manner
identify and express costs factors in simple financial terms
use cost factors to select lower cost alternatives when making decisions.
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 projects
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.
Replaces
State Code National Code Title Type
W8987 MSACMT230A Apply cost factors to work practices Unit of competency
Replaced By
State Code National Code Title Type
BAK49 MSS402030 Apply cost factors to work practices Unit of competency
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