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.
3. Automate an ICD
Write software to automate a repetative task:
|1||0||2006||Firms try to cut costs by using payroll cards. Similar to debit cards, they can be used to withdraw cash at ATMs or to make purchases. More than 4 million workers at over 3,000 companies nationwide use payroll cards. Among the employers distributing payroll cards are Amerco's U-Haul International, Lowe's Cos. and Sears Roebuck. Companies want employees to either use these cards or direct deposit to a bank account because a paperless payroll can lower costs by as much as 75%, according to a 2002 study by Celent.|
|2||3711||1992||Ford no longer accepts invoices. When properly ordered goods arrive, a check is issued to the supplier. If goods weren't ordered, they're shipped back to the supplier. Ford cut out the old process of coordinating invoices to purchase orders and warehouse receipt tickets.|
|3||4813||1999||Some of the companies are selling electronic cards, like Destia's Prestocard, via the Internet. No longer does a customer have to buy a physical card.|
|4||6141||2001||PayPal allows sellers to avoid waiting for paper checks to arrive. Users attach a payment to an email, then send virtual money to anybody with an email address. PayPal has become a hit on eBay. New comers no longer need to build a network from scratch.|
|5||6141||2002||NextCard promised to revolutionize the credit card industry by approving customer applications online.|
|6||6513||2005||AvalonBay Communities, an apartment real-estate investment trust controlling 148 properties believes allowing credit cards is worth it even at a low usage rate because accepting cards gives their properties a competitive advantage. They also believe automatic rent payments are more efficient, saving them in costs and manpower and time spent on processing checks.|
|7||7513||2004||Employers are cutting costs and easing management of non-banking employees through prepaid cards that allow employees to access paychecks, cash bonuses and flexible spending accounts, even insurance payouts. This cuts administrative, processing and distribution costs significantly. U-Haul will save a half a million dollars a year by moving away from paper paychecks. The cards offer convenience and security if lost or stolen. The cards target the "unbanked" population that includes students, part-time or low-income workers, about 14.2 million households. .|
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