Unit of competency Outline

Date retreived
22/07/2026 9:28 PM AWST

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Undertake analysis of cost and waste in terms of customer value

Undertake analysis of cost and waste in terms of customer value

Unit of competency
National Code
MSS405047
State Code
OER34
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
16/12/2022
View on TGA
State Implementation and Classification
Approved Date
03/05/2023
Field of Education
080317 - Quality Management
Original Release Date
03/05/2023
Nominal Hours
55
Description
This unit describes the skills and knowledge required to analyse processes, products or services to determine the value-adding factors that most impact on meeting customer requirements. This unit applies to managers, technical specialists or those in similar roles who are required to determine the relationship between cost and customer perceived value across a significant part of a value stream, including appropriate and unnecessary (muda) cost, and to recommend changes to reduce waste and/or increase customer value. This unit applies to any organisation that is implementing competitive systems and practices.No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.
Notes
Elements and Performance Criteria
1. Determine appropriate costs and waste (muda) in terms of customer-perceived value
  • 1.1 Identify features and benefits of process, product or service that reflect customer- perceived value
  • 1.2 Review process, product or service to determine process steps or features which deliver customer perceived value
  • 1.3 Identify additional features that may improve saleability
  • 1.4 Analyse cost components of process, product or service to determine costs that deliver customer value, appropriate costs and muda
  • 1.5 Analyse muda cost components to identify options to reduce direct and indirect muda costs
2. Determine process waste (muda) in terms of customer- perceived value
  • 2.1 Review process or operational steps with reference to customer-perceived value to determine cost impact of muda
  • 2.2 Review performance data with reference to customer-perceived value to determine cost impact of muda
  • 2.3 Consult with stakeholders to confirm identified muda and determine options to reduce waste
3. Recommend improvements
  • 3.1 Determine expected cost improvement and impact on customer-perceived value from waste reduction options
  • 3.2 Determine cost and expected customer value from proposed additional features
  • 3.3 Short list actions which maximise expected customer value and minimise costs
  • 3.4 Seek input from stakeholders to develop recommendations, including initial plans or scoping, for short listed actions
  • 3.5 Submit recommendations according to approval processes
No information
No information
Replaces
State Code National Code Title Type
BAJ88 MSS405031 Undertake value analysis of product or process costs in terms of customer requirements Unit of competency