Unit of competency Outline

Date retreived
22/07/2026 10:28 AM AWST

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Optimise process costs

Optimise process costs

Unit of competency
National Code
MSS405038
State Code
OEQ41
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
030101 - Manufacturing Engineering
Original Release Date
03/05/2023
Nominal Hours
60
Description
This unit describes the skills and knowledge required to examine and optimise the costs of a process, product or service. This unit applies to supervisors, managers, technical experts and those in similar roles with the responsibility to analyse overall costs, including major cost categories and overheads, determine how to optimise costs and implement optimisation/s. This unit applies to any organisation that is implementing continuous improvement or more formal 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. Analyse total cost components of a process, product or service
  • 1.1 Identify all cost components of process, product or service
  • 1.2 Allocate cost components to major categories
  • 1.3 Distinguish between costs which directly deliver customer features and benefits and muda (waste)
2. Optimise costs
  • 2.1 Analyse causes of costs which lead to customer features and benefits
  • 2.2 Determine methods of increasing the customer benefit/cost ratio
  • 2.2 Analyse causes of muda costs
  • 2.3 Determine methods of reducing or eliminating muda costs
  • 2.4 Analyse interactions between cost components
  • 2.5 Check that one method of reducing costs does not cause an increase in another cost or reduction in customer benefit
  • 2.6 Check that cost reduction plans do not reduce required levels of regulatory compliance or work health and safety (WHS)
3. Implement cost optimisation
  • 3.1 Develop cost optimisation plan that is based on analysis
  • 3.2 Negotiate with relevant people to agree on plan implementation
  • 3.3 Take actions to implement cost optimisation plan in accordance with workplace processes
  • 3.4 Monitor implementation of cost optimisation plan
  • 3.5 Make adjustments to improve plan in accordance with workplace processes
No information
No information
Replaces
State Code National Code Title Type
BAJ89 MSS405030 Optimise cost of a product or service Unit of competency