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Evidence Guide: MSS405032 - Analyse cost implications of maintenance strategy

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Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

MSS405032 - Analyse cost implications of maintenance strategy

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse cost components of maintenance

  1. Determine cost of failure of plant/equipment.
  2. Determine cost of a planned maintenance shutdown activity, including costs of re-start.
  3. Determine cost of maintenance for a planned activity.
  4. Determine cost of maintenance for an unplanned activity.
  5. Determine costs of condition monitoring.
  6. Identify cost implications of different maintenance strategies.
Determine cost of failure of plant/equipment.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine cost of a planned maintenance shutdown activity, including costs of re-start.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine cost of maintenance for a planned activity.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine cost of maintenance for an unplanned activity.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine costs of condition monitoring.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify cost implications of different maintenance strategies.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate life cycle costs of plant/ equipment

  1. Determine initial capital cost.
  2. Estimate servicing, maintenance and repair costs.
  3. Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.
  4. Determine depreciation and other applicable allowances.
  5. Estimate ancillary costs, such as training, commissioning and productivity loss.
  6. Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.
  7. Estimate annualised costs in present value terms.
  8. Identify life cycle cost implications for strategy.
Determine initial capital cost.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate servicing, maintenance and repair costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine depreciation and other applicable allowances.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate ancillary costs, such as training, commissioning and productivity loss.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate annualised costs in present value terms.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify life cycle cost implications for strategy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Liaise with proactive maintenance strategy developer

  1. Identify cost implications for different strategies.
  2. Negotiate a strategy which minimises total costs.
  3. Monitor the implementation of the strategy to ensure the costs are minimised.
  4. Make required adjustments to strategy.
Identify cost implications for different strategies.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate a strategy which minimises total costs.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor the implementation of the strategy to ensure the costs are minimised.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make required adjustments to strategy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Analyse cost components of maintenance

1.1

Determine cost of failure of plant/equipment.

1.2

Determine cost of a planned maintenance shutdown activity, including costs of re-start.

1.3

Determine cost of maintenance for a planned activity.

1.4

Determine cost of maintenance for an unplanned activity.

1.5

Determine costs of condition monitoring.

1.6

Identify cost implications of different maintenance strategies.

2

Estimate life cycle costs of plant/ equipment

2.1

Determine initial capital cost.

2.2

Estimate servicing, maintenance and repair costs.

2.3

Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.

2.4

Determine depreciation and other applicable allowances.

2.5

Estimate ancillary costs, such as training, commissioning and productivity loss.

2.6

Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.

2.7

Estimate annualised costs in present value terms.

2.8

Identify life cycle cost implications for strategy.

3

Liaise with proactive maintenance strategy developer

3.1

Identify cost implications for different strategies.

3.2

Negotiate a strategy which minimises total costs.

3.3

Monitor the implementation of the strategy to ensure the costs are minimised.

3.4

Make required adjustments to strategy.

Required Skills and Knowledge

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Analyse cost components of maintenance

1.1

Determine cost of failure of plant/equipment.

1.2

Determine cost of a planned maintenance shutdown activity, including costs of re-start.

1.3

Determine cost of maintenance for a planned activity.

1.4

Determine cost of maintenance for an unplanned activity.

1.5

Determine costs of condition monitoring.

1.6

Identify cost implications of different maintenance strategies.

2

Estimate life cycle costs of plant/ equipment

2.1

Determine initial capital cost.

2.2

Estimate servicing, maintenance and repair costs.

2.3

Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.

2.4

Determine depreciation and other applicable allowances.

2.5

Estimate ancillary costs, such as training, commissioning and productivity loss.

2.6

Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.

2.7

Estimate annualised costs in present value terms.

2.8

Identify life cycle cost implications for strategy.

3

Liaise with proactive maintenance strategy developer

3.1

Identify cost implications for different strategies.

3.2

Negotiate a strategy which minimises total costs.

3.3

Monitor the implementation of the strategy to ensure the costs are minimised.

3.4

Make required adjustments to strategy.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy the requirements of the elements and performance criteria and include the ability to analyse cost implications of two (2) or more maintenance strategies and to:

analyse cost components for each strategy

estimate life cycle costs for each strategy

compare the cost implications and negotiate a strategy which minimises costs.

Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to analyse cost implications for maintenance strategies, including knowledge of:

cost components of maintenance strategies

direct and indirect costs

maintenance strategies appropriate to the organisation, their strengths and weaknesses

techniques for estimating production, sales and other costs related to maintenance strategies

depreciation, capital vs. expense

present day value of future costs – determination and use of

life cycle costing

negotiation.

Range Statement

This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Competitive systems and practices include one or more of:

lean operations

agile operations

preventative and predictive maintenance approaches

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.

Maintenance strategies and techniques include one or more of:

total productive maintenance (TPM)

reliability centred maintenance (RCM)

root cause analysis (RCA)

mean time between failures (MBTF)

failure mode and effects analysis (FMEA)

condition monitoring

related proactive maintenance strategies.

Cost components of maintenance include all of:

direct costs, such as labour and materials

indirect costs, such as management overhead

comparison with cost of equipment replacement

re-engineering

breakdown repair

cost of lost production under different maintenance strategies

cost of inefficient equipment/plant operation due to poor maintenance.