Reduce Unique ICDs by Redesigning the Product or 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.
2. Reduce Performance Standards
Overall product: Increase the resources the customer must use with the product:
|1||4512||2004||Many major airlines recently started charging fees for bookings made through US call centers and at airport ticket counters. Airlines also are charging fees for paper tickets.|
|2||4512||2004||American Airlines will start charging passengers a $250 one-way fee to use frequent-flier miles to convert low-cost international tickets into first-class or business class seats. The nonrefundable fee will apply to discounted and deeply discounted coach-class tickets. Full-fare coach tickets and business-class tickets will be exempt from the fee.|
|3||5149||1994||Management of Continental has cut back on frequency of deliveries to smaller customers.|
|4||5812||2004||People always think that innovation is risky. However, Starbucks got customers to prepay for their coffee and no one else had ever thought of that before. It really wasn't risky, the technology was known.|
|5||6321||2002||Definity Health's web site members can check their account balances, view claims transactions and compare prices. A person can spend $45 to $61 in the provider network for blood pressure consultation, or $67 to $73 by going outside it. A month's supply of Allegra costs $33 at the pharmacy versus $30 via mail order.|
|6||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. Budget Rent-a-Car levies a full day's rental fee for those who fail to cancel at least 24 hours in advance.|
|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.|
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