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
Overall product: Lessen the quality of the experience the customer has with the product:
|1||4512||2004||As most airlines fight to trim costs, Ryanair is struggling to find the few ounces of fat hasn't already cut. Having already shifted more than 95% of its ticket sales to the Internet and ordered 120 efficient new planes, it's running out of big cuts. The Irish no-frills carrier charges passengers for food, drinks, and newspapers. It uses tiny airports far from city centers and bargains for big discounts on landing fees. Employees pay for their own training and uniforms, and are told to cut stationary costs by taking hotel notepads. Ryanair won't even consider ticket refunds, for any reason, even if the airline cancels a flight. Ryanair's new planes won't have window shades, which delay takeoff preparations as staff open them. Seat back magazine pockets are out, to cut cleaning time. New seats won't even recline, to shrink the repair bill. And the airline recently raised its excess baggage fee by 17%.|
|2||4512||2004||In an effort to compete with the growing number of carriers, European airlines slash their prices and amenities. As the summer traveling season approaches, price wars are bringing ticket prices to new lows. Ireland's RyanAir offers tickets from London to Berlin starting at a mere $25, and Italy's Volare Group will fly from Milan to Barcelona for less than $27. To accommodate for all the price reductions, these discounter airlines strip their planes of satellite TVs, movies, personalized air vents, airsickness bags, velcro-on fabric head protection flaps on the head rests, and even reclining seats. Ryanair expects to save $2.4 million a year in seat-repair costs. Discounter airports are basically warehouses with no toilet seats in the bathrooms. Spaces have also become tighter – an average of 29 inches between seats on European carriers compared with 32-34 inches on JetBlue flights.|
|3||4512||2004||Discount airlines such as Southwest in the US and the Ireland's RyanAir made their names and fortunes offering true no-frills service. By stripping out perks such as assigned seating and in-flight entertainment, they kept costs and fares low and grabbed big chunks of their markets.|
|4||4512||2004||American Air will no longer offer free meals in coach on domestic flights but will begin selling food on longer flights. The airline expects to save $30 million a year with these cuts. Special-requests will also be discontinued on non-transcontinental domestic flights. A morning and afternoon snack box will be offered at $3 a piece. More extensive options will be available on longer flights, including sandwiches. Food in first class will continue to be free and the free beverage service in coach will still offer granola bars or pretzels.|
|5||4512||2006||As part of an attempt to increase revenues, many airlines have begun charging for food and drinks, skycap services and phone reservations. The newest trend is seating. Allegiant Air charges $10 each way for passengers to reserve a seat. About 80% of passengers opt to pay this fee.|
|6||5812||2000||Low prices and no frills has made the take-and-bake pizza chain Papa Murphy's the 7th largest pizza chain. Papa Murphy's has done away with needless frills; such as, cooking, table service, and delivery.|
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