Elements and Performance Criteria

Cost components may include fixed and variable costs such as power/energy, materials, plant and equipment, salary and wages, office expenses such as telephone, and government taxes and charges.


Process may include a production, maintenance, logistics or office process in a manufacturing environment.


Procedures include all work instructions, standard operating procedures, formulas/recipes, batch sheets, temporary instructions and similar instructions provided for the smooth running of the plant. They may be written, verbal, computer based or in some other form.

For the purposes of this Training Package, 'procedures' also includes good operating practice as may be defined by industry codes of practice (e.g. Good Manufacturing Practice (GMP), Responsible Care) and government regulations.


Benefits should include positive benefits as well as negative benefits such as quality, safety, reliability and similar issues which may be impacted by a cost saving.

Overview of assessment requirements
The person will as part of their routine decision making aim to maximise the cost efficiency of their work team within their scope of authority. There should be evidence of their doing so.

What critical aspects of evidence are required to demonstrate competency in this unit?
Evidence of routinely analysing cost factors relevant to their team's operation and implementing improvements to the team's cost efficiency.

In what context should assessment occur?
Assessment will need to occur in a workplace or by use of a work based 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 may be assessed concurrently with appropriate units on continuous improvement.

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 available over a period of time or from more than one process or product.

What are the specific resource requirements for this unit?
Access to a workplace implementing competitive manufacturing strategies. No other specific resources are required.