Unit of competency Outline

Date retreived
22/07/2026 12:48 PM AWST

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Undertake value analysis of product costs in terms of customer requirements

Undertake value analysis of product costs in terms of customer requirements

Unit of competency
National Code
MSACMT631A
State Code
W9018
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/12/2005
State Implementation and Classification
Approved Date
20/02/2013
Field of Education
080301 - Business Management
Original Release Date
20/02/2013
Nominal Hours
60
Description
This unit covers the knowledge and skills required by an employee who is required to analyse products and processes to determine the factors that most impact on meeting customer requirements. The analysis is in terms of cost factors and include options for improving cost efficiency. 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 employee uses an analysis of the benefits/features which a customer perceives to be in a product/products as a basis for determining waste and so reducing waste.
Notes
Elements and Performance Criteria
1. Analyse customer benefits and determine waste
  • 1.1. Determine features/benefits perceived by customer in product1.2. Analyse cost components and determine those which deliver customer features/benefits and those which don't1.3. Analyse waste cost components1.4. Determine alternative ways of reducing waste costs1.5. Select actions which maximise customer benefits and minimise costs
2. Analyse production performance variance
  • 2.1. Analyse required performance to meet customer pull2.2. Determine actual cycle time/s and variability of cycle time 2.3. Analyse cause of waste in throughput2.4. Analyse costs and determine methods of reducing costs/waste2.5. Take actions required to achieve cost/waste reduction/s
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Waste
Waste (also known as muda in the Toyota Production System and its derivatives) is any activity which does not contribute to customer benefit/features in the product.
Within manufacturing, categories of waste include:
excess production and early production
delays
movement and transport
poor process design
inventory
inefficient performance of a process
making defective items.
Waste for this unit may include activities which do not yield any benefit to the organisation or any benefit to the organisations customers.
Performance
Performance may be thought of as the rate of output of the plant compared to the rate required to meet demand.
Cycle time
Cycle time is the normal time to complete an operation on a product.
Pull
Pull is the concept of producing to demand, rather than for stock or some forecast.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the assessment guidelines for this training package.

Overview of assessment requirements
The employee will select a product/range of products to analyse and determine waste in terms of any cost which does not contribute directly to an identified customer benefit/feature and then proceed to determine and implement methods of reducing this waste.

What are the specific resource requirements for this unit?

Access to a workplace implementing competitive manufacturing strategies. No other specific resources are required.
In what context should assessment occur?

Assessment will need to occur in a workplace.
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/kaizen.
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 from a number of minor changes or from a single large change which had multiple facets and which was implemented over a period of months.
Replaces
State Code National Code Title Type
W2597 MCMT631A Undertake value analysis of product costs in terms of customer requirements Unit of competency
Replaced By
State Code National Code Title Type
WD563 MSS405031A Undertake value analysis of product or process costs in terms of customer requirements Unit of competency