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.

C. Eliminate customer activities with low value to the customer

Reduce ICDs by eliminating activities for which customers either will not pay or will not pay enough to cover their costs.

3. Businesses

Loss making

No. Industry SIC Year Notes
1 2096 1996 Anheuser-Busch announced it will close its unprofitable Eagle Snacks.
2 3571 2005 Technology companies have tried to strike a good balance between PC profitability and market share, and failed. International Business Machines Corp. struggled for years to reach that equilibrium in its PC business. In the end though, IBM gave up the fight. Last year it agreed to sell of its PC business to Chinese computer company Lenovo Group Ltd.
3 3674 2004 In 1968, Robert N. Noyce, co-inventor of the integrated circuit, Gordon E. Moore and chemical engineer, and Andrew S. Grove left Fairchild Semiconductor International Inc. and founded Intel, short for integrated electronics. They set a pace of technological innovation, with the development of a chip that can be packed with 1.5 billion transistors each. More than 80% of the world's 1 billion-plus PCs run on Intel chips. They centralized manufacturing in giant chip fabrication plants, helping them undercut competitors, encouraged their engineers to constantly think of new ways of doing things faster, cheaper and more reliably. Massive Japanese investment in the chip industry nearly bankrupted the company in the 1980's, forcing Intel to sell 12% of the company to IBM and dump the memory business and focus on microprocessors.
4 3711 2000 BMW's first attempt to enter the small-car market ended in failure when it was forced to sell the Rover Group after posting billions of dollars in losses.
5 3721 1996 Daimler-Benz said it stopped funding its money-losing aircraft subsidiary, NV Fokker, in a move designed to restore D-B's profitability.
6 3995 1999 The company has recently innovated its smallest division (marketing products) by selling unprofitable overseas operations.
7 4899 1996 PSINet announced that it would cut 50% of its workforce and close down its consumer-oriented Internet service.
8 4911 1997 The Aviation Group has recently disposed of some under-performing operations such as: Its ground services operations at New York's Kennedy International Airport Its VIP lounge in Chile and Its in-flight kitchen operations at the Miami International Airport.
9 5331 2001 99 Cents Only profits got a boost last year from the sale of its underperforming Universal Unit, a discount chain of 65 stores in the Midwest, Texas and upstate NY.
10 5621 1998 Limited Inc. has announced plans to close its unprofitable 118-store Cacique lingerie chain.

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