Reduce the Unit of Input Not Producing Output

Reduce units of Input (I) available but not producing Intermediate Cost Drivers
(ICDs). This action makes Input levels more directly variable with the quantity of the ICD by reducing the amount of the available Input that is wasted or idle. For example, an employee (I) might produce one subassembly (ICD) per day. During that day, the employee spends a total of one hour waiting for parts for the subassembly. If the Company could eliminate that one lost hour of the employee's work day by providing parts in a more timely manner, the Company could reduce the number of employees (I) needed to produce the same subassembly (ICD) by 1/8th.

A. Assist Input in increasing ICDs.

Eliminate unexpected downtime. The company may know that it will have occasions of unplanned downtime and may take steps to reduce or eliminate this loss of efficiency.

Reduce other absenteeism

No. Industry SIC Year Notes
1 0 2007 Some major employers have hired personal assistance firms to handle services for their workers, including car washes, mailing, meals and dry-cleaning. These companies typically use these services as a way to attract quality workers in tight labor markets.
2 1041 1993 When Barrick discovered large gold reserves, it had to recruit 1300 miners. To house them, Barrick brought in a developer to build hundreds of homes. Barrick even waived the downpayment on the homes for some employees.
3 2621 1992 Scott Paper Co. offered a seminar for its managers at its headquarters, called "Managing Personal Change." Designed to help survivors deal with the after-effects of downsizing.
4 3140 2006 Stride Rite was determined to continue its growth. The CEO realized the importance of happy, productive employees and set up on-site day care centers which made their lives easier, allowing them to focus on work. The firm was able to attract and retain the best and brightest employees, which minimized turnover, training costs and productivity.
5 3316 2008 John McConnell managed Worthington Industries to become a conglomerate with nearly $2 billion in sales and an unbroken annual record of profits for almost 50 years. McConnell inspired employees through compassion, ambition, and compensation. There were on-site clinics and a cheap pharmacy. He maintained a barber in the plant where workers could get a $2 haircut. McConnell required all employees to carry a card inscribed with "Our Philosophy," essentially the Golden Rule for corporations.
6 3500 2005 With the growth of globalization, independent contractors, extreme commutes, expensive gas, and the broad-band connected micropolis, companies are finding it fruitful to untether their workers from the office. At Agilent Technologies, the company closed 48 U.S. sales offices in 2003 and swiftly instructed all the employees to work from home. Today, 70% of Agilent's workforce is connected remotely either some or all the time. The company estimates that these virtual workers cost 60%. Even though employees are farther away, executives at Agilent can keep even closer tabs by monitoring output anytime they want. Daily reports can keep a run-down on what an employee does: when a call is answered, how long it takes to resolve a technical issue, and how much time passed before the phone is put back into "ready" status. It can mean more hours for employees, but more flexibility.
7 3571 2004 The idea of thin-clients is growing popular again as technology becomes more advanced. Increasingly ubiquitous broadband Internet connections are making it more practical to serve up sophisticated applications remotely. Hardware companies have made inroads developing hardy and cheap thin-client-like computing devices as part of their efforts to computerize the developing world. And open-source software developers have created free operating systems and suites of applications that will run from a single CD-ROM. Then there's the security issue, Microsoft's great bugbear. Thin-client computers are simpler, presenting fewer technical openings for viruses, spyware, and other hacker tools to attack. Because thin clients' real brains are managed centrally, IT managers and service providers can make security related fixes for everyone at one time.
8 3711 1986 One balmy Friday, 15% of the second shift failed to show for work, forcing management to shut the plant and send the other 85% home, without pay. The same day, Honda, showed an absentee rate of about 2%. Honda pays attendance bonuses to employees.
9 3711 1989 By having workers handle all assembly jobs, Volvo avoids problems associated with repetitive assembly lines, including boredom, inattention, poor quality, high turnover, and high absenteeism. Morale is high, and absenteeism is only 8%.
10 3711 2004 Many hospitals, such at Stanford Medical Center, and other health care providers are using “paid time-off programs” which lump together vacation, holidays, sick and personal days. Allowing staff to buy days can save money for the company. General Motors said this month that it would give its 40,000 U.S. Salaried workers the chance to buy up to five additional vacation days for $175 each. It offered a similar program last year. Some 68% of its salaried staff bought days, saving the automaker $24.6 million.
11 3715 1995 At Wabash, employees are penalized for being late. Workers receive a $50 monthly bonus for perfect attendance.
12 3861 1993 At Xerox, the union agreed to "no-fault termination:" if a worker is absent 4 times for 2+ hours per year, he or she may be terminated (not including hospitalizations and vacations). Absenteeism has fallen from 8.5% to 2.5%.
13 3861 2007 Some employers allow employees to purchase an extra week of vacation. Employees sign up during the benefits-enrollment period in the fall. The cost is deducted from your pay over the year, often from pre-tax dollars. Xerox offers this and 10% of employees take part.
14 4213 1998 US Xpress has gone after non-traditional minority drivers. They have also instituted tuition reimbursement and the ability to take extended time off in a family crisis, while still holding the job and health insurance.
15 5300 2005 To further offset the higher costs of health care besides higher co-payments and deductibles, companies are testing new ways to find more savings. More companies are also turning to operators such as Nashville's American Healthways Inc., which has a booming business providing disease-management services. Under these programs, companies teach employees suffering from costly or chronic conditions such as asthma, diabetes, or heart disease how to better manage their health with improved diet, exercise, and medication. Since 2002, Lowe's Cos. has had such a program aimed at workers with diabetes and heart problems. The company's annual medical and drug costs for employees enrolled in the program have fallen by an average of 7%.
16 5812 1996 Businesses hope that the use of caller ID telephone service will increase productivity and worker safety.
17 6021 1988 Union Bank opened day care facility at ops center, saving $232,000 on decreased absenteeism.
18 6300 2004 Many hospitals, such at Stanford Medical Center, and other health care providers are using “paid time-off programs” which lump together vacation, holidays, sick and personal days. Iowa-based insurer United Fire & Casualty lets employees buy 8 to 40 vacation hours per year in addition to the standard vacation days they accrue. In January, they plan the number of days they want to buy. United deducts the equivalent pay from their salary. Some 5% of companies have plans that let workers buy and sell vacation days. This allows the company to save money.
19 6300 2006 Companies are now starting to hold employees responsible for security of portable devices they use for work. Aetna Inc. and other companies have banned employees from using personal portable digital assistants such as Palm Pilots and BlackBerrys, and MP3 players, on company computers without permission. Other companies are disabling extra USB connections on workplace computers so employees can't attach those accessories and smuggle confidential information out.
20 8062 2004 Many hospitals, such at Stanford Medical Center, and other health care providers are using “paid time-off programs” which lump together vacation, holidays, sick and personal days. Employees accrue them as they work and can take a day off for any reason. Some 18% of all industrial firms, 36% of financial firms and 28% of high-tech firms offer these programs. Companies like the programs better because they allow managers to plan absences better. And they don't foster a culture of dishonesty.

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