This unit of competency covers the skills and knowledge required by an individual to be able to identify the major cost components of either products or processes, the basic relationship of these to customer benefit, and use this to help minimise waste (defined as anything not delivering value as defined by the customer). It has a different focus to MSS402082 Apply cost factors to work practices, which focuses on costs in isolation, whereas this unit regards all costs not directly leading to customer benefit as waste. This unit applies to an individual who uses their understanding of the customer's requirements of the product or process being undertaken as the basis for investigating work processes to identify waste sources and then takes action relevant to their level of competency and authority to reduce this waste. It requires an understanding of both the cost factors in the products they make and also the benefits which the customer derives from the product.This competency may be performed individually or in a team-based environment.This unit requires the application of skills associated with analysis and problem solving to identify waste and determine ways to minimise waste. This unit requires initiative and enterprise and application of learning in concepts of waste and waste minimisation.No licensing, legislative or certification requirements apply to this unit at the time of publication.