Guide to Competitive Systems and Practices

phone: 1800 358 458 • email: info@mskills.com.au • website: www.mskills.com.au

Who is it for?Lean has been delivering efficiency gains globally for more than 80 years. Developed in the manufacturing sectors it is sometimes referred to as Lean manufacturing or Lean production.

However Lean is now being applied across many different industries to establish and maintain competitive operations. Lean focuses on the elimination of all types of waste; and this goes beyond physical waste and cost issues. Waste includes any form of inefficiency so could be wasted time and energy, unnecessary processing and product features, stockpiles of materials and inventory, poor use of human resources and errors / rework.

These wastes can be found in any type of organisation and in any sector; and wherever there is waste Competitive Systems and Practices can be applied. In Australia these changes are being applied in areas as diverse as healthcare, banking, warehousing, government, food processing, dairy and pharmaceuticals. They are also being applied across large and small organisations.

The Competitive Systems and Practices qualifications provide a systematic approach to eliminating waste and achieving continuous improvement. They provide the skills that target efficiency and that complement ‘core’ job skills.

Competitive Systems and Practices‘Competitive Systems and Practices’ is a suite of qualifications that capture the skills and knowledge required to embed Lean principles within an organisation. The systems and practices support immediate and ongoing improvements to a business typically targeting improvements in efficiency, customer service and employee morale and reduced waste and costs.

Competitive Systems and Practices has adapted and expanded Lean for the Australian context and provides qualifications covering the full range of occupations from operational and support roles to technical specialists and managers.

While Lean has been around for several decades there have been mixed experiences for Australian businesses, due to misinformation and misunderstandings about what Lean can achieve and how to maximise the benefits for an enterprise.

This guide will help managers to review the options and make informed decisions about whether to implement Competitive Systems and Practices and how to go about it. The Competitive Systems and Practices will not suit every business.

They do require a significant commitment of time and effort throughout the organisation – top to bottom – to achieve sustainable results. In most cases they will also require financial investment which might range from reorganising work spaces and layout, undertaking preventive maintenance, replacing unserviceable Personal Protection Equipment through to capital expenditure projects.

MSA would like to thank the following organisations for their photographic contributions: AgriFood Skills Australia, Community Services & Health Industry Skills Council (CS&HISC), Construction and Property Services Industry Skills Council (CPSISC ), Flair Cabinets Wodonga, Government Skills Australia (GSA), Innovation and Business Skills Australia (IBSA), O-I Glass Australia, Regional Express (Rex), Service Skills Australia and Workspace Training.

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What can Competitive Systems and Practices do for a business?Competitive Systems and Practices can achieve results quickly by focusing on areas with high potential for improvement. However it is not:

• a simple cost cutting exercise

• a quick fix

• about getting rid of people

• about cutting corners or taking risks.

Whole of business Most businesses can get some quick runs on the board using Competitive Systems and Practices. However, there is no silver bullet and achieving long term improvements requires significant investment and a commitment to make changes to:

• procedures

• physical work spaces and layout

• workplace culture

• management culture.

To get the best results a business needs to apply the changes across the whole organisation – it is hard to sustain efficiencies, improvements and culture change in an isolated section of an organisation.

Competitive Systems and Practices have a strong focus on process, systems and embedding the principles and practices into the organisational culture. Therefore it is most successful when applied across a whole business, so that the interconnections or ‘chain’ of processes are aligned and not working against each other. Similarly the culture change that is usually

required to achieve a continuous improvement environment needs to be embedded across all sections of the organisation.

Competitive Systems and Practices provide tools, knowledge and skills for establishing business systems and work practices that support immediate and ongoing improvements in an enterprise. They provide methods for analysing problems, measuring and improving performance and managing the organisational changes needed to achieve its defined goals.

Individual workers may learn these skills but they can only be put into practice in a business where the systems are being implemented, providing the environment where the skills can actually deliver results. For example, one or two workers might learn all about Kaizen Blitz and try to undertake a blitz in their area. However, they will only be able to make limited changes without the participation and support of other team members, their line managers and senior management. They might only be able to achieve improvements in their direct area of responsibility – which may be their personal behaviour.

It is imperative that management provide the leadership and commitment to implement the program and to support and challenge the business and its staff to achieve excellence.

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They define the knowledge, skills and performance

criteria that are needed to perform to the standard

required in the workplace.

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CODE TITLE

MSS20312 Certificate II in Competitive Systems and Practices

MSS30312 Certificate III in Competitive Systems and Practices

MSS40312 Certificate IV in Competitive Systems and Practices

MSS50312 Diploma of Competitive Systems and Practices

MSS60312 Advanced Diploma of Competitive Systems and Practices

MSS70312 Vocational Graduate Certificate in Competitive Systems and Practices

MSS80312 Vocational Graduate Diploma of Competitive Systems and Practices

Workforce skills and qualifications ‘Competitive Systems and Practices’ provides a suite of qualifications designed to be relevant to workers at different levels in an organisation, ranging from operational and support staff through to supervisors, team leaders and managers.

The building blocks that make up the Competitive Systems and Practices qualifications are the national Competency Standards, or units of competency. The units of competency have been developed with industry input and endorsed as part of the national training system. They define the knowledge, skills and performance criteria that are needed to perform to the standard required in the workplace.

In Competitive Systems and Practices the units cover a breadth of skills including

specific Lean practices such as 5S, continuous improvement, just in time and six sigma. They also cover culture change and people skills, sustainable resource use and planning and implementing Lean. They can be applied in a range of business contexts and in most industry sectors.

Each qualification has its own packaging rules. These rules define the core units that everyone must do and the elective units that can be chosen to meet the specific skill needs of a learner or an organisation.

The Competitive Systems and Practices qualifications are designed for existing workers, to support organisations who are implementing a continuous improvement and/or Lean culture. These skills are additional and complementary to any specific occupational skills and general equipment operations.

The following qualifications are available:

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At a minimum a business case should include:

• reasons for undertaking Competitive Systems and Practices. This could be expressed, for example, in terms of:

- identified problems or crises to be addressed

- specific goals to be achieved

- how it fits with the broader business or strategic plan

- how it can assist in developing the businesses Sustainable Competitive Advantage (SCA).

• measurable outcomes to be achieved. This should include objectives that are ‘SMART’ - Specific, Measurable, Achievable, Realistic and Timely.

• resources (funds, personnel, equipment etc) that are required and how they will be made available. This will show that the firm has thought through the level of investment and support required and is providing a Competitive Systems and Practices environment which enables the application of the skills being achieved through the training program.

• approval from senior management. A business case should be approved by the CEO, COO, State Manager, Site Manager or similar, to ensure that the required resources and support will be made available.

What commitment is needed from management?In order to get the best from Competitive Systems and Practices the enterprise needs support from management for both the implementation of systems and changes as well as the development of workers’ skills and knowledge. A business case can help managers to plan for both of these.

In NSW a business case, approved by senior management, is required as part of an application for funded Traineeship pathways. It needs to show that the enterprise is committed to implementing Competitive Systems and Practices across its day to day operations. The aim is to ensure that the trainees will have suitable opportunities to learn and apply their skills and therefore maximise the return on investment for the business.

But for any organisation even a simple business case will help to clarify the focus, costs and expected benefits from implementing Competitive Systems and Practices and ensure that the resources are available.

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What sort of workplace activities should be included in a skills program?A skills development program using the Competitive Systems and Practices qualifications can help a business to embed the culture and behaviour change to achieve ongoing efficiency improvements. Integrating the skills program with the implementation of Lean business systems will maximise the return on both investments.

Typically the implementation work will be undertaken through a series of projects, providing the opportunity to address a specific issue or area and achieve defined outcomes. This is ideal for skills development and demonstrating competency so any skills programs should incorporate or be embedded within real work activities.

Whether they are generated from the implementation work or from the skills development program these projects should:

• focus on real issues

• identify improvements in the immediate area

• link to improvements in overall systems and procedures

• enlist the whole team for the relevant area

• seek input from other stakeholders (other teams, units or divisions; customers; managers)

• set clear goals

• focus on particular tools.

In addition, to support the development of workers’ skills and competence they should clearly:

• link to the enterprise systems for reporting, documentation and record keeping

• provide opportunities for using technology, problem solving, communications and team work at the level required in each role

• encourage and foster continuous improvement

• require consistent performance over time.

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Organisation (RTO) can award a nationally recognised Competitive Systems and Practices qualification or units of competency (Statement of Attainment).

What is Lean or Competitive Systems and Practices?The aim of both Lean and Competitive Systems and Practices is to establish and maintain a culture of efficiency and continuous improvement within an organisation. They rely on foundational concepts of:

• customer focus – value is only what the customer values

• eliminate waste – if it is not value then it is waste and get rid of it

• smooth flow – levelling out any variations to achieve consistent flow of processes

• manage efficiencies along the supply chain rather than create departments and silos

• continuous improvement – continually find ways to make even small improvements

• respect for people – valuing the expertise of people who know their work.

The Competitive Systems and Practices qualifications provide a structure for developing the skills and knowledge to apply the right tools in the right areas to achieve improvements. However even the most skilled workers cannot implement improvements in an environment that really does not want to change.

To achieve the best results over the long term the implementation of Competitive Systems and Practices should be systematic and planned; and it needs to be embedded into the enterprise systems, culture and practices across its operations.

Where are the pitfalls? Enterprises are often approached by consultants and training providers with a strong sales pitch along the lines of “Have we got a deal for you!” These offers might be backed up with statistics about the real improvements that have been achieved through Lean or Competitive Systems and Practices. They may also highlight the government subsidies and incentives for training.

However, as emphasised above, there is no such thing as a ‘free lunch’. Significant long term outcomes can really only be achieved through a planned and integrated approach to implementing systems such as Lean and continuous improvement. And this approach needs to have real support from management and buy in from the team. Supporting the implementation and culture change activities with structured, competency based training aligned to the Competitive Systems and Practices qualifications can be very effective and will help to embed the changes.

However, training on its own, will not deliver significant results, despite any government subsidies. As with any government funding, there are conditions for eligibility and requirements for monitoring and reporting. The availability of funding, and the conditions attached, will vary between States and Territories, so it is important to be clear about the specific local requirements. Further information can be found in the section on Traineeships, below.

Any provider – whether they focus on training delivery or business consultancy – can refer to the Competitive Systems and Practices units of competency and use these in providing services to the enterprise. However, only a Registered Training

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Tools Competitive Systems and Practices provide a systematic process and a range of tools which are used in combination to target the key issues. Many organisations begin their Lean journey using the tools Kaizen, 5S and Value Stream Mapping which are outlined below.

KaizenKaizen roughly translated means “continual improvement”. It is achieved by breaking down a process to find ways to make it better. It includes:

• observing the process

• identifying the value-adds

• identifying the wastes

• ideas and improvements from people who do the work using their knowledge common sense and intuition

• many small, continuous improvements that collectively achieve large gains

• kaizen blitz – which targets a specific process to quick returns and ‘runs on the board’.

5SThe 5S tool comprises five steps that lead to an orderly and standardised way of working, helping to eliminate wastes such as waiting time, looking for tools and poorly used space. The steps are:

• Sort… to identify what is needed, when and how often

• Set in order… to ensure that things are available where and when they are needed – and things that are not needed are removed

• Shine… ensuring things are clean, in good working order and ready to use

• Standardise… establishing systems that make the first three steps part of routine practice

• Sustain… sometimes the hardest step, ensuring that these practices are maintained and the improvements in productivity are ongoing.

Value Stream MappingValue Stream Mapping provides a system and series of symbols which are used to observe and make a map of all aspects of a process including the activities, resources, locations, information flow and decision points. The map can then be used to:

• identify which of these add value and which are ‘wastes’

• identify the things that a customer will reasonably pay for

• support the Kaizen process (above)

• identify areas where value add can be maximised and where new products/services can be developed.

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What’s new in Competitive Systems and Practices?The recent revisions to the qualifications have resulted in a name change – from Competitive Manufacturing to Competitive Systems and Practices. This is not just a ‘cosmetic’ change.

The revisions have extended the application of Competitive Systems and Practices by developing new units of competency and revising the existing units. This clarifies that the units can be achieved by people who are not in a formal team leader role.

The terminology throughout the units and qualifications has also been revised so that it is clear that the skills and knowledge apply beyond the manufacturing context.

Extended coverageMost of the Competitive Manufacturing units of competency have been carried forward into Competitive Systems and Practices and are deemed equivalent. There are some exceptions where Elements or Performance Criteria have been amended, so it is important to check the information in the MSS11 Sustainability Training Package, which now contains the qualifications.

Additional clarification has been brought into the units, for example, in the Application and Range Statements.

There are also some additional units in Competitive Systems and Practices. These cover a range of areas where specific skills and knowledge may be needed in order to apply Lean to office and service type work processes. However, any of the units of competency can be applied and/or adapted for use in office and service contexts.

Six SigmaSix Sigma applies a structured statistical approach to improving a process. It focuses on reducing any variations in the elements of the process in order to improve the overall process. It includes the five steps of Define, Measure, Analyse, Improve and Control (DMAIC).

Six Sigma defines a hierarchy of roles and expertise ranging from white belt to yellow belt to green belt to black belt. Training for these belts is not currently aligned to any Training Package units of competency or qualification. In the Australian Competitive Systems and Practices environment Six Sigma is seen as one of many improvement tools and its methods are reflected in three specialist units of competency. There are also related units for System Control and Data Acquisition (SCADA), statistics, process capability, mistake proofing and designing experiments.

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The office/service units are:

• MSS402041A Apply 5S in an office

• MSS402053A Participate in breakthrough improvements in an office

• MSS403006A Facilitate implementation of Competitive Systems and Practices in an office

• MSS403007A Map an office value stream

• MSS403039A Facilitate and improve 5S in an office

• MSS403042A Facilitate mistake proofing in an office

• MSS403043A Facilitate breakthrough improvements in an office

• MSS405033A Optimise office systems to deliver to customer demand.

Additional units have also been developed to cover extended skills in areas such as:

• visual workplace

• theory of constraints

• process mapping

Unit codesChanges have been made to the Australian Qualifications Framework (AQF) level reference in the unit codes. While this might seem like a change to the level of a unit, it is not. It brings the codes into line with units in other Training Packages so that the AQF reference aligns to the first level at which the unit is packaged. For example, MSACMC611A Manage people relationships was originally packaged at AQF 6, but was also available as an elective at AQF 5. Therefore it is now coded as MSS405011A Manage people relationships because it is first available at AQF 5.

Packaging and AQF levelsThe qualifications are listed as new but are equivalent to the Competitive Manufacturing qualifications at the same level. Additional electives are available in all the qualifications, although some units have been dropped because they have been deemed equivalent or very similar to other units.

The AQF levels have been reviewed and the total number of units required has been increased in some qualifications, reinforcing the different levels of the qualifications.

The pre-requisites have been reviewed and many have been removed, improving the flexibility of training and pathways for many learners.

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Traineeships and funding Australian Apprenticeships refer to all trade apprenticeships and non-trade traineeships. They are aligned to Training Package qualifications and combine time at work with training and can be full-time or part-time. The qualifications are developed and managed nationally by the Industry Skills Councils. The Australian Apprenticeships for the qualifications are implemented by each State and Territory government.

An Australian Apprenticeship requires a contract of training which is set up through an Australian Apprenticeship Centre and which is also signed by the employer and the trainee/apprentice. The contract defines the training plan and hours of training for the trainee/apprentice and the responsibilities of each party.

There are several programs for funding Australian Apprenticeships, however in the climate of skills shortages and workforce development responses to sustainability and global markets this is a dynamic area. An outline of funding and financial support is provided, along with links to the key websites for keeping up to date with any changes.

The Competitive Systems and Practices qualifications may be funded under one or several of the programs. In most jurisdictions the qualifications will be referred to as traineeships.

State fundingFunding for Australian Apprenticeships has traditionally been implemented by each State/Territory government. It usually targets students and new workers, rather than existing workers and therefore usually covers Certificates II, III and IV. In some cases higher level qualifications may attract funding.

Funded training is available is to both public and private training providers who meet the State/Territory requirements. This funding is paid directly to the training provider nominated in the contract of training.

See the State Training Authority (STA) website (below) for details of Australian Apprenticeships available in each jurisdiction and to check for any State incentives.

State Organisation Address

ACT Dept of Education and Training www.det.act.gov.au/home

NSW Dept of Education and Training www.training.nsw.gov.au/

NT Dept of Education and Training www.det.nt.gov.au/

QLD Dept of Education and Training www.trainandemploy.qld.gov.au/

SA Skills South Australia www.skills.sa.gov.au/

TAS Skills Tasmania www.skills.tas.gov.au/home

VIC Skills Victoria www.skills.vic.gov.au

WA Dept of Training and Workforce Development

www.dtwd.wa.gov.au/dtwd/detcms/portal/

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Australian Apprenticeships Incentives Program

Australian Apprenticeship Incentives Program provides Commonwealth payments to the employer of new and existing workers in Australian Apprenticeships that meet particular eligibility requirements. These include, for example, existing workers who achieve a qualification at Certificate III or above, mature aged workers who achieve a Certificate II or higher qualification and wages support for adult apprentices and apprentices with a disability. Note that some of these may only apply to qualifications that relate to the government’s identified skill shortage areas.

For more information on Australian Apprenticeships and the incentives see

www.australianapprenticeships.gov.au/ and www.australianapprenticeships.gov.au/Info_Emps/Incentives.asp

Australian Government funded programs National Workforce Development Fund

Under the National Workforce Development Fund an enterprise can identify their current and future business and workforce development needs and apply for funding to support the training of existing workers and new workers in areas of shortages.

Training must either be a nationally endorsed industry Training Package qualification or a Training Package Skills Set recognised under the Australian Qualifications Framework.

• For new workers these qualifications can include Certificate II, III, IV, Diploma, Advanced Diploma, Vocational Graduate Certificate and Vocational Graduate Diploma.

• For existing workers these qualifications can include Certificate III, IV, Diploma, Advanced Diploma, Vocational Graduate Certificate and Vocational Graduate Diploma.

• Workers undertaking training in a Skills Set must already hold a qualification at a Certificate III level or above.

For more information see: www.deewr.gov.au/Skills/Programs/SkillTraining/nwdf/Pages/default.aspx or contact your Industry Skills Council.

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About MSAManufacturing Skills Australia (MSA) is the national Industry Skills Council, owned by industry and recognised by the Australian Government to ensure that the skills needs of enterprises are being met.

In its core activities MSA:

• analyses industry intelligence gathered through a range of consultative processes

• provides advice to the Australia Workforce and Productivity Agency, the Australian Government and enterprises on workforce development and skills needs

• ensures high quality training and workforce development products and services for industry, including Training Packages

• provides independent advice to enterprises on identifying skills and training needs and finding solutions

• provides a free web based workforce development planning and tracking tool for enterprises

• provides a free web account for individuals to track their skills and manage their careers

• works with enterprises, employment service providers, training providers and government to allocate funded training places.

Manufacturing Skills Australia Level 3, 104 Mount Street North Sydney NSW 2060

Phone: 1800 358 458 Email: info@mskills.com.au Web: www.mskills.com.au

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IntroductionCompetitive Manufacturing reflects practices and principles that have been developed in the manufacturing sectors over the last 80 years, often referred to as Lean manufacturing, Lean production or just Lean. It

© Manufacturing Skills Australia (MSA) 2012

This publication is intended as general information only to provide a broad understanding of training options based on Competitive Systems and Practices qualifications and units of competency. Users should undertake detailed research on available options to determine whether they are suitable for their needs.

MSA does not accept any liability to any person for the information or advice (or the use of such information or advice) which is provided in this material or incorporated into it by reference.

This publication was produced by MSA with the assistance of funding provided by the Australian Government through the Department of Industry, Innovation, Science, Research and Tertiary Education.

Published by: Manufacturing Skills AustraliaAugust 2012

Level 3, 104 Mount StreetNorth Sydney NSW 2060PO Box 289North Sydney NSW 2059Australia

ABN: 88 006 441 685

Phone: +61 2 9955 5500Fax: +61 2 9955 8055Email: info@mskills.com.au

Website: www.mskills.com.au

@MSA_ISC

Manufacturing Skills Australia

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