Elements and Performance Criteria

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.
Competitive systems and practices

Competitive systems and practices may include, but are not limited to:
lean operations
agile operations
preventative and predictive maintenance approaches
monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP) and proprietary systems
statistical process control systems, including six sigma and three sigma
JIT, kanban and other pull-related operations control systems
supply, value, and demand chain monitoring and analysis
5S
continuous improvement (kaizen)
breakthrough improvement (kaizen blitz)
cause/effect diagrams
overall equipment effectiveness (OEE)
takt time
process mapping
problem solving
run charts
standard procedures
current reality tree
Competitive systems and practices should be interpreted so as to take into account:
the stage of implementation of competitive systems and practices
the size of the enterprise
the work organisation, culture, regulatory environment and the industry sector
Stakeholders
Stakeholders may include:
managers
supervisors
employees and their representatives
shareholders
suppliers
customers
service providers
Internal limiting factors
Internal limiting factors may include:
free cash
management time and expertise
machinery
work organisation and workforce skills and knowledge
External limiting factors
External limiting factors may include lack of bargaining power or effective communication with:
suppliers
customers
financial institutions
other factors
Expected returns
Expected returns may include factors such as:
cost savings due to more consistent or higher quality
benefits from greater on-time delivery
savings from lower inventories and reduction in waste
Actions which will free up required resources
Actions which will free up required resources will vary according to the size of the SME and the nature of the operations undertake. Examples include:
reduction of inventory
reduction of scrap
decreased throughput times
changes in approval processes/delegations
use of computers instead of paper-based processes
Prioritise plans
Prioritise plans according to criteria such as:
greatest benefit
ease of implementation
best fit with strategy
available resources

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Evidence of the ability to organise implementation of competitive systems and practices in a SME should be available.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
A person who demonstrates competency in this unit must be able to provide evidence of their ability to:
analyse existing SME operations
determine competitive systems and practices key performance indicators for a SME organisation
determine improvements that deliver the greatest overall benefit
develop and supervise the implementation of competitive systems and practices strategy, techniques and tools in a SME.
Context of and specific resources for assessment
Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices.
Access may be required to:
workplace procedures and plans relevant to work area
specifications and documentation relating to planned, currently being implemented, or implemented changes to work processes and procedures relevant to the assessee
documentation and information in relation to production, waste, overheads and hazard control/management
reports from supervisors/managers
case studies and scenarios to assess responses to contingencies.
Method of assessment
A holistic approach should be taken to the assessment.
Competence in this unit may be assessed by using a combination of the following to generate evidence:
demonstration in the workplace
workplace projects
suitable simulation
case studies/scenarios (particularly for assessment of contingencies, improvement scenarios, and so on)
targeted questioning
reports from supervisors, peers and colleagues (third-party reports)
portfolio of evidence.
In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge.
Where applicable, reasonable adjustment must be made to work environments and training situations to accommodate ethnicity, age, gender, demographics and disability.
Guidance information for assessment
Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the candidate and the work being performed.