Examples of Effectiveness Using Product and Process Redesign
Family Dollar Stores maintains a focused merchandizing strategy. This allows it to carry fewer products and to avoid advertising because customers know what to expect.
(Year 2001 – SIC 5331)
Explanation: Family Dollar has reduced its unique ICDs by designing its service around fewer products.
Chrysler noted that meticulous sandpapering and painting was time consuming, while the aesthetic appeal was of no value. The Company eliminated the sandpapering and final costs of varnish, cutting two days off production time.
(Year 2004 – SIC 3711)
Explanation: The Company redesigned its product to reduce ICDs. This improves Effectiveness.
Ryanair has become a success in the rapidly growing budget airline business. It has cut costs by avoiding the service of any food on the plane trip. (
Year 2000 – SIC 4512)
Explanation: Ryanair has eliminated ICDs from its service and has shifted the responsibility for food to its customers. This improves Effectiveness.
Through the web, EBay's citizens have access 24 hours a day to every trend, every sale and every new regulation in the EBay world. (
Year 2003 – SIC 7375)
Explanation: EBay has improved Effectiveness. It desgned its process to eliminate ICDs using People by moving information electronically.
The new CEO of Cott corrected its problems by shedding unprofitable small customers and divesting everything but soft drinks. (
Year 2000 – SIC 2086)
Explanation: The Company reduced its costs by eliminating ICDs used to serve small customers and to produce non-soft drink products.
DEC found at one plant that 10% of its products were producing 90% of the profits. The Company eliminated many products and improved its cost structure 20 to 30%. (
Year 1996 – SIC 3571)
Explanation: DEC eliminated ICDs devoted to products with low value to customers.
FedEx uses independent fleet truck drivers contracted on demand. The Company pays these contractors 58% of the shipping price. The drivers pay for the fuel. (
Year 2004 – SIC 4513)
Explanation: The Company eliminated ICDs by contracting out its trucking to those with lower costs.
Most semi-conductor chip makers don’t own chip fabrication plants. Instead, these so-called fabless companies use contractors like Taiwan Semiconductor Manufacturing Company. (
Year 2003 – SIC 3674)
Explanation: These companies reduce their ICDs by outsourcing them to others with lower costs.
Kodak joint ventured with H.P. to produce a $60M ink jet photo mini-lab for cramped retailer stores and for emerging markets overseas. (
Year 2000 – SIC 3861)
Explanation: Kodak reduced its unique ICDs by joint venturing with a partner who had capabilities it did not have.
Sonic signed a deal with Adaptec Inc. Sonic will shoulder Adaptec’s sales channel to sell packaged products. Both of the companies’ names will be used. (
Year 2002 – SIC 3695)
Explanation: Adaptec eliminated unique ICDs by partnering with Sonic.