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
Reduce Purchased ICDs: Use People or components requiring less Purchases:
Lower energy costs
|1||3400||2007||Pelican Products adopted high-efficiency lights and equipment and expects to save $130,000 on energy costs in 2007.|
|2||3674||2006||Data centers are looking for alternative sources of power in an effort to save money on energy costs. Intel developed technology called demand-based switching, which allows a computer's power consumption to be reduced based on workload. Intel says that technology saves 25% of power consumption in some instances. The company is also looking at more-efficient power supplies.|
|3||4212||2007||While consumers often want the cleanest, most efficient vehicles on the road, many corporations want the cheapest and almost efficient vehicles for their fleets. However, as gas prices rise, hybrid technology is starting to seem cheaper. UPS is rolling out diesel-electric hybrids and expects to save 44,000 gallons of fuel over the year. Although the green vehicles form only 2% of its global fleet, UPS is hoping to expand its program further.|
|4||4213||2006||As oil prices soar, some of the nation's biggest energy consumers are revamping their operations to shrink energy bills. Trucking company Schneider National is installing fat tires that improve gas mileage by a few percentage points. Because fewer fat tires that improve gas mileage by a few percentage points. Because fewer fat tires are needed per truck, there's less air resistance. Schneider also uses in-cab heaters that allow drivers to cut the engine while sleeping and stay warm, saving about a gallon of gas per hour.|
|5||4512||2006||The dramatic fuel conservation efforts of airlines have led to lower costs for fliers. In all, airlines last year burned 13.8 billion gallons of fuel flying domestic routes, 4% less than they did in 1999, according to the federal Bureau of Transportation Statistics. Even Southwest has worked to improve its fuel efficiency, despite the windfall of its hedging, by installing "winglets" on its jets. The wind extensions, curved up vertically, reduce fuel burn by about 3%.|
|6||4512||2006||The dramatic fuel conservation efforts of airlines have led to lower costs for fliers. Airlines have reduced their fuel purchases by grounding older gas-guzzlers and sticking to more fuel-efficient planes with better engines and more aerodynamic wing technology. Filling planes fuller helps too. UAL Corp's United Airlines lowered the cruise speed on some of its planes to save fuel. Several airlines put life vests on more planes so they can fly more-direct routes over water, often on trips into an out of Florida. And a few airlines have purchased big tractors to move planes to maintenance hangars rather than taxiing them with power from the planes' engines.|
|7||5812||2007||In order to reduce energy consumption, McDonald's introduced a system which monitors and controls the equipment, lighting and temperature at McDonald's outlets. The equipment, provided by Echelon technologies, allows the restaurant to adjust usage according to peak times. While existing franchisees will not be required to purchase the expensive equipment, new and remodeled outlets will have it installed as part of the standard procedure. The company hopes to reduce usage by 10%. This is part of a larger trend as prices for commercial power rose 23% in just one year.|
|8||9400||2004||It's the little things that add up to big savings, but can annoy customers as well as employees. The University of Kansas identified 173 ways to save an estimated total of $1.7 million a year, last year. More than half the school's total annual target for cost reductions is expected to be met by setting thermostats to 75 degrees in the summer and 68 degrees in the winter, upgrading fluorescent lights to more efficient bulbs and other steps. Low-flow toilets and urinals will offer more savings.|
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