Unit of competency Outline

Date retreived
22/07/2026 8:34 AM AWST

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Undertake value analysis of product or process costs in terms of customer requirements

Undertake value analysis of product or process costs in terms of customer requirements

Unit of competency
National Code
MSS405031
State Code
BAJ88
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
22/06/2016
View on TGA
State Implementation and Classification
Approved Date
08/08/2016
Field of Education
080317 - Quality Management
Original Release Date
08/08/2016
Nominal Hours
60
Description
This unit of competency covers the skills and knowledge required by an individual who is required to analyse products and processes to determine the value-adding factors, including design and processing costs that most impact on meeting customer requirements and which may also include competitor benchmarking. The unit also includes implementing identified changes that increase cost-efficiency. The unit may be applied individually or in a team environment.In this unit an individual uses an analysis of the benefits/features which a customer perceives to be in a product or service as a basis for determining appropriate or unnecessary (muda) cost and so identifying and reducing muda (waste).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 determine cost-efficiencies. 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.
Notes
Elements and Performance Criteria
1 Analyse customer benefits to determine appropriate or muda (waste) costs
  • 1.1 Analyse product or service to determine features/benefits perceived by customer in product.
  • 1.2 Analyse cost components of product or service and determine those which deliver customer features/benefits and those which are either appropriate or muda.
  • 1.3 Determine any additional features that may be added to improve saleability.
  • 1.4 Analyse muda cost components and allocate to direct and indirect cost categories.
  • 1.5 Determine options for reducing direct and indirect muda costs.
  • 1.6 Select cost-related actions which maximise customer benefits and minimise costs.
  • 1.7 Where required, undertake competitor benchmarking to provide reference points.
2 Analyse performance variance
  • 2.1 Identify muda processing or operational steps for product or service following completion of customer benefit analysis.
  • 2.2 Analyse all costs and determine methods of reducing costs and muda.
  • 2.3 Develop plan and recommendations for actions required to achieve cost improvement or added customer benefits to improve saleability.
  • 2.4 Submit plan and recommendations to stakeholders.
No information
No information
Replaces
State Code National Code Title Type
WD563 MSS405031A Undertake value analysis of product or process costs in terms of customer requirements Unit of competency
Replaced By
State Code National Code Title Type
OER34 MSS405047 Undertake analysis of cost and waste in terms of customer value Unit of competency