Application

This unit of competency covers the skills and knowledge required to examine the costs of a product or service and determine methods of reducing costs. This unit applies to an individual a who is required to undertake a detailed study of a product or service’s costs, including analysing it by its cost components to determining the best method of lowering the cost overall. This unit differs fromMSS405031Undertake value analysis of a product or process costs in terms of customer requirements, in that it looks at all costs, including overheads and takes a wider and more traditional approach to the cost of the product. Information and cost reduction strategies gained from the application of this unit may support other cost approaches in the enterprise, including value stream costing.
This unit primarily requires the application of skills associated with communication in gathering, analysing and applying information. Problem solving, initiative and enterprise, and planning and organising are required to calculate cost components and determine cost optimisation strategies. This unit also requires aspects of self-management and learning to ensure feedback and new learning is integrated into costing methods.
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 to optimise costs for one (1) or more products or services and to:
• analyse all cost components
• optimise costs and minimise muda
• implement the cost optimisation.

Knowledge Evidence

Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to optimise costs, including knowledge of:
• cost component categories
• methods of allocating indirect costs and their implications
• expressing customer perceived benefit in cost or dollar value terms
• major controllable costs for the organisation, and how to control them
• types of muda and how to reduce it
• benefit cost/ratios, their determination and application.

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 should use a real cost optimisation project for 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.'}

Parent Qualifications

• PMB50121 — Diploma of Polymer Technology
  PMB

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