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
Just in Time (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
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 operations, 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
activities which do not yield any benefit to the organisation or any benefit to the organisations customers
Cost
Cost includes:
the monetary value of expenditures able to be directly identified for supplies, services, direct labour, components, cost of inventory, faults and reworks, rejects/scrap, equipment and other items used in the production of the product
allocations and estimates for indirect costs (e.g. indirect labour, rent, power and water) where a direct monetary value cannot be identified
Determine customer feature/benefits
This unit does not require that customer features/benefits must be obtained by the person undertaking the unit directly contacting customers. The features/benefits may have already been determined by sales and marketing personnel and passed on to operations. However, the unit requires that the product or process must be analysed to determine how the product or process supplies the features/benefits and by which step/feature of the product or process
Performance
Performance is may be thought of as the rate of output or delivery of the performance or service compared to the rate required to meet demand for the product or service
Cycle time
Cycle time includes:
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

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.
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:
identify customer features/benefits for a product and their impact on market share or saleability of the product
determine direct/indirect costs in a product
determine which costs are waste
analyse cycle times and make suggestions for reduction in cycle time
develop a cost/waste reduction plan.
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.