Reduce Unique ICDs by Redesigning the Product or the Process

The objective of this activity is to reduce the number of ICDs by reducing the occurrence of an ICD in producing a unit of Output, or by reducing the number of separate ICDs used in the Output. A unique ICD is one of the key activities in the work center's contribution to the final product (O). It is separate and distinct from any other activity in the work center. For example, the fastening of a part onto a subassembly and a quality control check of the subassembly would be unique ICDs.

B. Redesign the process of producing the ICD or Output

Change the process used to produce the ICD or Output to eliminate activities.

2. Shift ICD to others outside the company with no payment for their assistance

Employees

No. Industry SIC Year Notes
1 0 2004 All Jetblue pilots are provided with HP laptops to calculate the load and balance of their planes before take-off eliminating the dependence on dispatchers to crunch the numbers for them as with other major carriers.
2 3711 2005 Chrysler is working to close cost, efficiency gaps at U.S. plants to compete with the growing number of nonunion factories in North America run by Asian and European rivals. That means training hourly workers to do more jobs and to take more responsibility for eliminating wasted time and motion. Chrysler is looking to follow the example of a Saltillo pickup truck assembly plant in Mexico. The plant has adopted a system of self-directed work teams. About 10 to 12 workers take on a set of tasks and tools, including specified maintenance, quality-control, productivity and safety jobs. Workers rotate among different tasks every few hours. They are encouraged to find ways to cut time and wasted effort, and if they do, those whose jobs become redundant are reassigned. Saltillo's production has increased to about 38 vehicles an hour from 30 without additional hiring and without overtime work.
3 3730 1992 General Dynamics used to employ 53 people to administer its matched-savings plan. It cut that number to 15 by installing a computer-based phone service several years ago.
4 4512 2004 Northwest Airlines cuts costs back even more than it already has. The company has also acted on some employee suggests, extracting a total of $6 million in annual savings from worker ideas. It has cut back on the number of coffee pots boarded on planes, saving Northwest $120,000 a year. A manager had an idea that resulted in an annual saving of $916,000 on maintenance on DC-10 thrust reversers. A customer service agent suggests that blanket folding and washing be done in-house, for savings of $205,000 annually.
5 6321 2003 UFCW Local 770 union has 70,000 members in Southern California who work at Kroger Co.'s Ralphs, Vons and Albertson's Inc. The union members rejected the grocers' detailed offer in late September. Last weekend they refused to cut $1 billion from the health care budget. Unlike most working Americans, these union workers have long enjoyed health benefits including no deductibles, but chains say they can no longer afford this. They're asking workers to share more of the costs, including deductibles and premiums. Initial proposals were to raise deductibles from $0 to $750. Workers were to pay $20 for the first dozen visits to doctors' offices and then $40 per visit thereafter. All specialist visits start at $40 each. They'd also have to pay $10 or 10% of costs-whichever is higher-for each generic drug, and $25 25% for each name brand drug. For branded drugs not on an insurer's preapproved list, they'd pay $35 of 35% of drug costs.
6 6531 2004 When Re/Max International started 1973, it decided to bring in the best real estate agents by offering bigger commissions than the decades-old industry standard. Re/Max introduced the way many real estate companies are now set up. Re/Max was set up so that agents shared office expenses for advertising, secretarial services, and insurance, while also paying the company a fee. After paying their prorata share, the agents kept their sales commissions. This also allowed them the freedom to negotiate whatever commission they're willing take with each individual seller.
7 7372 2008 Outstart, an online technologies provider, allows ExactTarget's sales force to post and answer questions about the software company's products and procedures. To use SellingEdge, employees email their questions to a particular email address and their questions get posted automatically on the site. Another sales rep or sales-support staffer can then provide answers. Employees can subscribe to get email alerts every time a new question is posted. Reps can rate each other's answers and questions as well and flag inaccuracies.
8 7372 2008 Outstart, an online technologies provider, allows ExactTarget's sales force to post and answer questions about the software company's products and procedures. Sales-support staff can also post useful tools on the website, including videos, training quizzes, and case studies. ExactTarget has also designated half a dozen sales reps to be the system's internal champions, encouraging and showing others how to use it.

<<Return to Reduce Unique ICDs in Process