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.

B. Redesign the process of producing the ICD or Output

Change the process used to produce the ICD or Output to eliminate activities.

1. Warnings and advice

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

3. Automate an ICD


REDUCE MOVEMENT OF AN INPUT (People, Purchases or Capital)

  1. Warnings and advice Advisories>>

  2. Reduce movement of people

    1. Provide portable tools for field work Examples>>

    2. Have employees work from home to avoid commute Examples>>

    3. Create a virtual office location to avoid commute Examples>>

    4. Use signals or electronics to communicate Examples>>

    5. Make changes in the field from a central location Examples>>

    6. Use teleconferencing for meetings to avoid travel Examples>>

    7. Place electronic sensors or measurement tools in remote locations Examples>>

    8. Design work flow to bring interacting people closer together Examples>>

    9. Other Examples>>

  3. Reduce movement of ICDs

    1. Reduce loading and unloading

      1. Use shipping pallet for rack at store Examples>>

      2. Use floating production, storage and off loading barges Examples>>

      3. Use gravity to move product Examples>>

      4. Group items with similar destinations during process Examples>>

      5. Customize shipping process Examples>>

      6. Other Examples>>

    2. Do more steps at one location Examples>>

  4. Reduce movement of both people and ICDs

    1. Complete multiple activities on same trip Examples>>

    2. Place functions closer to where the product is used to reduce communication difficulties Examples>>

    3. Place functions closer to supplies Examples>>

    4. Make heavy equipment mobile Examples>>

    5. Reduce the impediments to movement Examples>>

    6. Use direct shipping Examples>>

    7. Move work centers closer together Examples>>

    8. Get project participants feedback early to avoid later ICDs

      1. Business functions Examples>>

      2. Suppliers Examples>>

      3. Customers Examples>>

      4. Other Examples>>

  5. Reduce movement of information by making an immediate connection between work or sale progress information and supporting systems

    1. Locate and assign work to employees in the field Examples>>

    2. Replenish inventory Examples>>

5. Reduce errors in process

6. Reduce use of Purchases and Capital ICDs

7. Standardize ICDs

8. Accept risk of lower profits

9. Other

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