Brainstorming Ideas: Reduce Unique Intermediate Cost Drivers in Process

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.

  1. Warnings and advice
  2. Reduce performance standards
    1. Use alternative forms of component Examples>>
    2. Improve quailty to reduce later spending Examples>>
    3. Other Examples>>

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