Application

This unit describes the skills and knowledge required to analyse processes, products or services to determine the value-adding factors that most impact on meeting customer requirements.
This unit applies to managers, technical specialists or those in similar roles who are required to determine the relationship between cost and customer perceived value across a significant part of a value stream, including appropriate and unnecessary (muda) cost, and to recommend changes to reduce waste and/or increase customer value.
This unit applies to any organisation that is implementing 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.

What You'll Learn

Assessment Requirements

Performance Evidence

There must be evidence the candidate has completed the tasks outlined in the elements and performance criteria of this unit, and demonstrated the ability to:
• determine cost, value and waste with reference to customer perceived value of at least one process, product or service
• identify, evaluate and recommend improvements.

Knowledge Evidence

There must be evidence the candidate has knowledge of:
• cost components, direct and indirect costs
• sources of information to identify customer perceived value
• factors influencing saleability
• impact of features and benefits on customer-perceived value, sales, market share and firm’s profitability
• major costs which are controllable (and how to control them)
• types of muda
• how to distinguish between appropriate costs and muda
• methods of reducing appropriate costs and muda.

Assessment Conditions

Skills must have been demonstrated in the workplace or in a simulated environment that reflects workplace conditions and contingencies. The following conditions must be met for this unit:
• use of suitable facilities, equipment and resources, including:
• information on customer perceived value in relation to process, product or service
• modelling of industry operating conditions.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.

Foundation Skills

• {'skill': 'Foundation Skills', 'description': 'This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.\n• Reading skills to interpret complex workplace documentation\n• Writing skills to document recommendations\n• Oral communication skills to consult with stakeholders\n• Numeracy skills to interpret performance data and determine costs and value.\nOther foundation skills essential to performance are explicit in the performance criteria of this unit.'}

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