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.
1. Reduce Performance Standards
Reduce information available to the customer
|1||3011||1991||Cooper spends just 5 cents to sell $1 of its goods, compared w/ around 20 cents for larger rivals. Spends little on advertising, offices, research.|
|2||5632||2005||Steve & Barry's University Sportswear has become one of the fastest growing retailers due to their mantra of low costs. One reason is that its advertising budget is less than 1% of revenue.|
|3||6282||2002||William Blair is an investment bank that refuses to advertise. Instead, it lets its bankers make headlines. It recently guided J.M. Smuckers in its acquisition of Jif peanut butter and Crisco shortening for $731 million from Procter & Gamble.|
|4||7372||2007||Companies often reduce labor costs by sending customers with questions and complaints to their website. However, search tools are often unsophisticated and inadequate. Some companies are investing in new technology which will improve access to live help.|
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