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 uses infrequently

No. Industry SIC Year Notes
1 1521 2005 Pulte Homes Inc. is insulating itself from downturns. In rethinking what a homebuilder should look like, Pulte has plucked ideas from all over the business world. From manufacturers such a Toyota Motor Corp., Pulte is borrowing the notion of reducing product variation to save money and remove complexity. It's whittling the number of Pulte floor plans from 2,200 to 600 by yearend, keeping only those that have proven popular. Another Toyota lesson: make upscale features standard to get economies of scale. Now, luxury carpets and top-notch applications are standard in Pulte houses – making purchases simpler for buyers.
2 2711 1990 Some newspapers deleting sections from their papers in an effort to cut costs. "Critics fear the new measure will hurt newspaper quality and in the end prove to be bad for business."
3 4512 1997 Alaska's director of in-flight food service looked at food trays to see what meal items could be eliminated. After noticing that first-class passengers seldom ate luncheon desserts, he substituted chocolate mints.
4 4512 2006 The dramatic fuel conservation efforts of airlines have led to lower costs for fliers. Most carriers have put their airplanes on diets to make them lighter in order to burn less fuel. Alaska Airlines said it was saving $10,000 a year in fuel by taking 5 magazines off each plane. Airlines ripped phones out of the seat backs since they weren't being used anymore, and carry less water on board to reduce weight.

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