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.

6. Reduce use of Purchases and Capital ICDs

Warnings and advice

No.	Industry SIC	Year	Notes
1	0	1987	Rather than maximizing output and machine performance to produce as much as possible, JIT involves making only as much as is needed, when it is required. It is a "demand pull" rather than a "supply push" system. It thus saves money on inventory space and control.
2	0	1987	The average manufacturing company puts 3/4 of its effort into reducing labor costs, which often represent no more than 10% of its total costs, instead of concentrating on materials, which can represent more than half its costs.
3	0	2003	To compete on these new dimensions, companies must design modular products, in which the interfaces between components and subsystems are clearly specified.
4	0	2007	With an increasingly mobile workforce and new technology, companies can operate in multiple locations at a much lower cost. Entrepreneurs who work from home use the virtual offices to give a more professional experience. They can rent space for a few hours for client meetings with no long term commitment.
5	0	2007	With an increasingly mobile workforce and new technology, companies can operate in multiple locations at a much lower cost. A traditional office costs $500 to $2500, virtual models are much cheaper, starting anywhere from $10 to $150 a month, depending on the level of service. However, costs for additional services can add up and the savings diminish as a business grows.
6	0	2008	Supply-chain managers must develop a new set of skills to meet outsourcing and globalization problems. The need is to immerse themselves in new technology to help keep crucial company processes running. Inventory-control software is a common tool for supply-chain managers, but s/he must be able to integrate the inventory software with the rest of company's computer system so that other departments can use the information, as well as build crucial relationships inside and outside of their companies.
7	2891	2004	Nordson's equipment is prevalent in production centers because it helps clients save money. Adhesives, sealants, and coatings for packaging and manufacturing are expensive. The chemicals that go through Nordson's equipment over its life cycle cost 100 times more than the equipment itself, so it makes sense to buy equipment that will save some money.
8	3577	2004	A rigorous statistics-based method known as Lean Six Sigma enabled Xerox to and fix myriad quality problems, reducing operating costs for Xerox and its customers. A recent switch to a new manufacturing technique resulted in the loss of about 10% of toner during production. Pinpointing and replacing flawed parts led to higher yields, saving $240,000.
9	3861	1996	Olympus managers learned that even after a product family comes to market, the costs associated with new technology often decline quickly with the adoption of manufacturing programs that increase product quality – e.g. reducing the number of parts in a subassembly.
10	5311	1993	Wal-Mart offers promotions to workers who find ways to eliminate their own jobs.
11	5621	2004	Lately, Talbots has had some high profile stumbles that show the difficulty of holding the line on discounts. It delayed its midseason fall sale on summery items by two weeks, a costly move that the company says resulted in low traffic and sputtering sales because customers had moved on to winter clothes. Key sales numbers have faltered for more than two years and the company's normally impressive stock has been lagging.
12	5900	1996	Whatever a retailer's logistical strategy, it needs to be integrated, with coordination across buyers, planners, distribution, and stores.

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