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

Components: Eliminate component with low value added:
Customer does not need

No. Industry SIC Year Notes
1 2844 1986 Colgate-Palmolive eliminated the handle from its small plastic bottles of liquid Ajax sold in Europe. Market trials indicated that consumers would accept the change, and space-conscious storekeepers were ecstatic. On this one item Colgate expects to save 25% on packaging costs.
2 3571 2005 Many organizations are taking PCs off people's desktops and replacing them with “thin client” systems. Software is another important consideration. In many cases, companies that switch to thin clients simply don't need the full complement of pricey Windows software that they would get bundled with a regular desktop PC. Workers with well-defined tasks, including many in government, health care, manufacturing, and retail, often can get by with just one or two of Microsoft's programs – and sometimes less expensive open-source tools work just as well.
3 3571 2005 Many organizations are taking PCs off people's desktops and replacing them with “thin client” systems. IDC, a market-research firm, predicts that by 2008, thin clients will account for nearly 10% of the market for desktop computers at large and medium-size companies, up from about 5.4% this year. IDC projects even faster growth for related systems called blade PCs. Unlike thin clients, which run off big central servers, blade-PC systems give each worker a trimmed-down version of an ordinary PC, but store the machines in a central computer room for easier maintenance. IDC predicts sales of blades will grow to 6.5 million in 2008 from just 350,00 this year.
4 3571 2006 The race is on to create a PC for “the next billion” in emerging markets. Some critics don't believe people in poor countries need to computer at Autobahn speeds. eMachines Inc.'s goal is to sell not PCs, but “thin clients,” diskless machines that work only if connected to a server. Since a single PC can run 10 of these devices, schools and libraries in impoverished areas could get computers in front of many more people far more cheaply than buying actual PCs for everyone. eMachines device, little more than a chip surrounded by plastic, costs just $70 or so.
5 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.
6 3711 1920 Chrysler pointed out that meticulous sandpapering and painting was time consuming. Since the aesthetic appeal was of no value, Chrysler told the production manager to eliminate the sandpapering and final cost of varnish, thus cutting two days off the production time.
7 3711 1995 Honda integrated a dashboard clock into the radio display, replaced trunk hinge with a simpler design that cut costs in half, and used 30% fewer threads in rear seat materials, replacing vinyl and interior trim with cheaper fabrics.

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