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.

4. Reduce movement of an Input (People, Purchases or Capital)

Reduce movement of ICDs: Reduce loading and unloading:
Use floating production, storage and off loading barges

No. Industry SIC Year Notes
1 2911 2006 Companies like Royal Dutch Shell and Exxon Mobil have found ways to cut oil prices by using floating oil factories, which allow tankers to load at sea, avoiding political instability and saving billions. The tankers, called "floating production, storage, and offloading vessels," or FPSOs, can hold up to 2 million barrels in their bellies, but their main purpose is to load up tankers out at sea, rather than piping crude oil to an onshore terminal. FPSOs spare them billions of dollars in infrastructure costs, years of construction time, and significant costs and set backs associated with political instability.

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