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.

2. Shift ICD to others outside the company with no payment for their assistance


No. Industry SIC Year Notes
1 3576 1999 Thanks to a web site that’s chock full of information and free software, a remarkable 80% of Cisco's customer service issues are handled electronically, shaving off millions in product supplies.
2 4512 2003 Delta recently embarked on a $200 million, three-year technology makeover that is aimed at changing the way people use airports. The airline has installed kiosks systems where passengers work with a check-in screen to find a seat and print out a boarding pass. Delta is using everything from high-definition screens providing real-time info to direct phone access to reservation agents to speed up travel.
3 4813 1993 AT&T recently said it will save about $200 million a year by eliminating 3,000 to 4,000 operator jobs, closing roughly 1/3 of its operator centers and relying instead on voice-recognition technology.
4 6021 1992 McKinsey report says that German bank employees are 32% less productive and British employees are 36% less productive than their U.S. counterparts. A major cause is the extensive use of automated teller machines and backoffice computers by U.S. banks.
5 6021 1994 Since BAI added banking software, they have added 50 new branches without any increase in personnel and with minimal investment in systems development. The average number of personnel per branch has dropped from 7 or 9 to 3 or 4.
6 6021 2004 In retail banking, less expensive channels such as ATMs and Internet have helped reduce average transaction cost over the past 15 years by nearly 15 percent.
7 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.
8 6321 2003 Cigna, a healthcare provider, has a pilot reward program. Aetna plans to expand a program that rewards participants for filling out an online survey about their health. The cost savings work both ways. "Over time, everyone wins. Consumers have incentives and can stay healthier longer. Employers win because they get a healthier and more productive work force."
9 6321 2003 An increasing number of health plans are offering everything from health-club memberships and vacations to quit smoking in order to make their patients healthier. PacificCare Health is the largest health-maintenance organization and will launch Health Credits. This will award points to partcipants who engage in healthy activities.
10 6411 2005 The insurance carriers have not reduced the agent's costs, in fact, they have increased them. In addition to reducing commissions, they are passing work back to the agents. This work includes issuing certificates of insurance within guidelines and printing policies for the agent.
11 7372 2007 Companies often reduce labor costs by sending customers with questions and complaints to their website. However, search tools are often unsophisticated and inadequate. Some companies are investing in new technology which will improve the discussion forum feature. Especially knowledgeable customers are often willing to offer help to others at little cost to the company. A good discussion forum can build customer loyalty and promote future ventures. However, the company must monitor the forum to ensure that users get answers. When faced with diminished customer satisfaction, Palm beefed up its forum. It now relies on 20 active contributors who moderate forums and step in to answer user questions. Palm rewards them with products and giveaways. Questions that are not answered are passed along to customer support.
12 7514 2006 Why do rental-car companies charge so much to put gas in the tank? Rental agencies set the price high to deter clients from bringing back vehicles with an empty tank and thus offset the steep cost of refueling. Rental agencies don't have efficient systems for shipping and storing fuel.

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