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.
B. Redesign the process of producing the ICD or Output
Change the process used to produce the ICD or Output to eliminate activities.
Shift ICD to others outside company with no payment for their assistance
|1||2844||2004||Avon expanded its cosmetics business globally by rebuilding its manufacturing and transportation infrastructure from top to bottom. Dealing with a smaller number of suppliers delivered other benefits as well. In the process of standardizing bottles, Avon asked the suppliers for help designing new ones in the most cost-effective way. In many cases, Avon had to adjust its own approach so that suppliers could manufacture its products more cost-effectively. For instance, the company agreed to change its order patterns to reduce the suppliers' manufacturing setup costs.|
|2||3498||1996||Shaw usually bills contract customers for materials at their published market prices, so clients bear the risk of price rises.|
|3||3571||2006||IBM is pulling people together for the online equivalent of a town meeting, an “Innovation Jam.” Sixty-seven clients will have first-row seats as the company hashes out its strategies for the future. It's possible that competitors could lurk in virtual chat rooms, listening in on new ideas. Teams of IBMers will spend the next months sifting through the posts to identify the most promising. During phase two, which takes place September 12-15, everyone is invited to the jam site to refine and rate the best ideas based on their business value.|
|4||4512||2004||Northwest Airlines cuts costs back even more than it already has. The company has also acted on some employee suggests, extracting a total of $6 million in annual savings from worker ideas. It has cut back on the number of coffee pots boarded on planes, saving Northwest $120,000 a year. A manager had an idea that resulted in an annual saving of $916,000 on maintenance on DC-10 thrust reversers. A customer service agent suggests that blanket folding and washing be done in-house, for savings of $205,000 annually.|
|5||5411||2004||Albertson's is using new technology to gather information and build customer loyalty. The hand-held devices, Shop 'n' Scans, are being tested at more than a 100 stores in Chicago. The devices allow customers to tally and bag groceries as they shop, eliminating time on check-out lines. They also remind customers about items they may have forgotten. Albertson's customers who use the Shop 'n' Scan devices are on average buying twice as much as they used to on each store visit. One reason: Because they can track the amount they are spending as they shop, they know exactly when they hit their budget limit and feel freer to buy until they do.|
|6||6289||2000||If investors buy or sell an exchange traded fund, they have to go through a broker rather than directly to the fund itself. That means the exchange traded funds don't have the cost of dealing with small investors so they should have lower expenses.|
|7||7375||2007||People are willing to carry out a mundane task for free or very low rates if it is made into a game. Amazon.com has a site called Mechanical Turk which pays low rates for various tasks, like writing a movie plot summary.|
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