Application

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.
This unit applies to an individual who is required to contribute to, and be involved in, the assessment of cost factors in their work. This may be done individually or in a team environment.
The unit covers the skills to be able to assess the relative costs of the alternatives and use this as one of the key factors in making decisions. Decisions are made within the scope of the employee's authority and according to procedures. Typical decisions include those that contribute to the efficient organisation of own work and the improvement of production time and cycle times.
This unit requires the application of skills associated with problem solving to identify cost factors and cost implications of own work and self-management to apply cost-effective practices.
No licensing, legislative or certification requirements apply to this unit at the time of publication.

What You'll Learn

Assessment Requirements

Performance Evidence

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, on one (1) or more occasions to use cost factors in making a decision related to their workplace, and to:
• identify major cost components
• distinguish components which they can control from those they can’t
• make decisions which minimise overall cost and explain these to stakeholders.

Knowledge Evidence

Must provide evidence that demonstrates knowledge relevant to their job role sufficient to fulfil their job role under routine only supervision, including:
• concepts of expense, income and capital
• fixed and variable cost components relevant to own work:
• power/energy
• materials, plant and equipment
• production or process time, including impact of salary and wages
• office expenses
• government taxes and charges
• relative impact of each of these
• financial and non-financial impacts of cost reductions
• the difference between internally and externally controlled costs
• difference between overhead, labour and consumables.

Assessment Conditions

• The unit should be assessed holistically and the judgement of competence shall be based on a holistic assessment of the evidence.
• The collection of performance evidence is best done from a report and/or folio of evidence drawn from:
• a single project which provides sufficient evidence of the requirements of all the elements and performance criteria
• multiple smaller projects which together provide sufficient evidence of the requirements of all the elements and performance criteria.
• A third-party report, or similar, may be needed to testify to the work done by the individual, particularly when the project has been done as part of a project team.
• Assessment will use a real project in an operational workplace.
• Knowledge evidence may be collected concurrently with performance evidence or through an independent process such as workbooks, written assessments or interviews (provided a record is kept).
• Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.
• Conditions for assessment must include access to all tools, equipment, materials and documentation required, including relevant workplace procedures, product and manufacturing specifications associated with this unit.
• Foundation skills are integral to competent performance of the unit and should not be assessed separately.
• Assessors must satisfy the assessor competency requirements that are in place at the time of the assessment as set by the VET regulator.
• The assessor must demonstrate both technical competency and currency.
• Technical competence can be demonstrated through:
• relevant VET or other qualification/Statement of Attainment AND/OR
• relevant workplace experience
• Currency can be demonstrated through:
• performing the competency being assessed as part of current employment OR
• having consulted with an organisation providing relevant environmental monitoring, management or technology services about performing the competency being assessed within the last twelve months.

Foundation Skills

• {'skill': 'Foundation Skills', 'description': 'This section describes those required skills (language, literacy and numeracy) that are essential to performance.\nFoundation skills essential to performance are explicit in the performance criteria of this unit of competency.'}

Related Units

• MSS403080 — Improve changeovers
  Same training package
• MSS402022 — Apply quick changeover procedures
  Same training package
• MSS407029 — Improve visual management in the workplace
  Same training package
• MSS403057 — Map an operational process
  Same training package
• MSS014016 — Evaluate sustainability impact from a work area or process
  Same training package
• MSS403040 — Facilitate and improve implementation of 5S
  Same training package