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.

5. Reduce errors in process

Improve the diagnosis of the situation: Use an expert to diagnose problem:
Customer advocate

No. Industry SIC Year Notes
1 6324 2004 Aetna Inc. is taking steps to cut down the costs of healthcare by turning to medical experts. Since last summer, Aetna focuses chiefly on high-risk pregnant women, encouraging them and their obstetricians to consult with a perinatologist, a physician who specializes in high-risk pregnancy. Aetna also pays for a nurse to visit such women at home, to teach them the signs of pre-term labor. It says its up-front costs for handling high-risk pregnancies pay off in lower delivery and neonatal costs. Aetna calculates that babies born to women who entered the program in the first trimester spend 20% fewer days in neonatal intensive care, cutting costs by the same amount.
2 8062 2006 Veterans' Hospitals are now national leaders in efficiency and quality because of a large dose of technology. Before it was reformed, the veterans' health system was huge and under utilizing its resources. As a first step, the top dozen managers decided to carve the country into a dozen territories, each with its own budget, managers, and performance goals. Every patient got a primary care doctor. The agency shifted away from an expensive hospital-based model to one that emphasized outpatient community clinics and primary care.

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