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.
A. Redesign the product
Reduce ICDs by redesigning the product or the components of the product. Any redesign of the product or its components implies that the resulting product, after the redesign, would be acceptable to customers.
Reduce Performance Standards
|1||0||2003||They recognize that there is no way they can outperform their competitors in every facet of operations. Therefore they don't necessarily strive for perfection- unless perfection is explicit in their strategic value proposition, as it is at Federal Express and Tiffany. In fact, fully one-third of winning companies offered only average product quality. Which goes to show that many customers don't care about a level of quality that goes beyond their needs and desires.|
|2||1531||2000||Meritage Corp. says new home sales will decline due to the lack of affordability. So, Meritage Corp. will build smaller, less expensive houses to keep its sales up.|
|3||3571||2008||Many IT companies, such as Hewlett-Packard Co., are looking to consolidate their IT systems to cut costs. HP has been in a project since 2005 to cut the number of computer programs it uses by more than half, and reduce the number of its data centers from 85 to 6. HP wants to cut the 4% of its annual revenues that it uses on IT system maintenance down to 2%. It plans to cut IT power use and the IT department in half.|
|4||4111||1989||Other efforts include a modest revival of Greyhound's rural service. For those routes, the company is using fuel-efficient vans.|
|5||5942||2007||Fraud and the associated costs has forced some retailers to modify their return policy. Even honest customers are facing more stringent policies. Amazon allows 30 days for returns. After this period, a partial refund was available.|
|6||6531||1998||Boxer buys what the industry considers "Class C" buildings – cheaper properties that are located in suburbs rather than downtown. With low acquisition costs, Boxer can offer below-market rents.|
|7||7514||2005||In an effort to reduce the number of no-shows and the resulting financial loss, car-rental firms are introducing various techniques to ensure that customers claim their cars. Alamo Rent-a-Car offers a prepayment program which offers online customers who pay at the time of reservation a 10% discount. Those who cancel within 24-hours or fail to show up will pay a $25 penalty while those who cancel before that period will pay $10.|
|8||9400||2004||It's the little things that add up to big savings, but can annoy customers as well as employees. The University of Kansas identified 173 ways to save an estimated total of $1.7 million a year, last year. More than half the school's total annual target for cost reductions is expected to be met by setting thermostats to 75 degrees in the summer and 68 degrees in the winter, upgrading fluorescent lights to more efficient bulbs and other steps. Low-flow toilets and urinals will offer more savings.|
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