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.
2. Reduce Performance Standards
|1||2731||2004||Educational publishers typically make between $15 and $20 profit from a book with a retail list price of $100, after subtracting costs for author royalties, printing, distribution and retailers' take. In a goodwill gesture to college bookstores, Pearson said it would offer retailers a cut of revenue from online sales if stores direct students to the publisher's Web site.|
|2||4512||2003||Delta is betting that technology can help it close a cost gap with discount carriers, which have been eating its biggest markets alive. Today, industry-wide online ticket sales save carriers an estimated $200 million a year. By eliminating steps such as printing and mailing, an airline can process and online ticket for less that $1, vs. $6 to $8 for a paper one.|
|3||4512||2004||A discount of $5 is awarded for booking tickets online, as a move to promote online ticket reservations. As a result 63% of the tickets were booked online in 2002, which is also JetBlue's cheapest form of distribution.|
|4||5331||2005||Tuesday Morning signs flexible leases that allow easy outs, and targets out-of-the-way stores near upscale towns. By avoiding fancy shopping centers, Tuesday Morning can open a new store for $100,000, less than half of what specialty stores pay.|
|5||5411||2005||To find growth, Save-A-Lot is setting up shops in inner cities. At the beginning, the founder told workers to let displays sell down before replenishing them. Workers also saved time by not “spinning” labels, the practice of rotating cans so all fronts face forward. The founder also designed some cans with two identical faces.|
|6||7011||2006||For $22 a night, IndiOne Hotel offers a serious bargain. The biggest savings are in staff. The 100-room indiOne has seven full time employees, while a comparable U.S. Motel has about 50. IndiOne outsources everything from cleaning and laundry to computer support and cafeteria service. Guests stuff valuables in lockers, cutting the need for security. Most bookings are made online, where rates are about 6% cheaper, and word of mouth usually is enough to keep the hotel full. Indian Hotels dubs its new room format “smart basic.” To free up space in very compact rooms, TVs are mounted on the wall. The furniture, flooring, and bathroom fixtures are made of easy-to-clean materials. Even so, guests are asked to eat only in the cafeteria, which offers cheap meals.|
<<Return to Reduce Unique ICDs in Process