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
Stock keeping unit (SKU)
SKUs are products or services that have a unique identifier in an organisation’s inventory system. They may relate to items that are either purchased, offered for sale, or manufactured/conducted internally and which needs to be tracked. An SKU will usually be a physical product but may include:
countable services/events (e.g. time slots available for service calls charged by the hour, insurance claims)
Relevant metric
Relevant metric is the metric on which the analysis will be based. For a Glenday Sieve this will be sales volume. However, other appropriate metrics may include:
profit
profitability
sales/profit growth
Time basis
The time basis is the period of time over which the metric is considered. For a Glenday Sieve this will be one year. However, other periods may be appropriate, particularly in a cyclical/seasonal business and longer/shorter periods may yield better results
Analysis tool
Analysis tool is the methodology used for grouping the SKUs and may include, but is not limited to:
Glenday Sieve
Pareto analysis
80:20 rule
Sensitivity
Sensitivity testing is:
repeating the analysis using either a different tool or a different metric/time basis and examining the change this makes to the groupings
Strategic response
The strategic response is the application to which this grouping is to be put. This may include:
the levelling of production
the creation of different virtual production processes
the application of kaizen blitz to some groups
other relevant tool or strategy

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 the ability to:
select an appropriate analysis tool and metrics
apply that tool to group SKUs
develop and recommend an appropriate response.
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 some 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.