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 uses of Purchases and Capital ICDs
Reduce Purchased ICDs (items purchased for end product Output):
Set specific limits on expense
|1||0||2007||As hotel costs increase and companies cut spending on corporate travel, business travelers who once visited boutique hotels and expensive restaurants are noticing a shift in corporate culture. They find themselves forced to share rooms, prepare their own meals or stay with friends. Software allows companies to ensure that travelers choose the most affordable travel options. Some firms are renting apartments in cities where their employees visit frequently and still others are turning to teleconferencing to eliminate travel all together.|
|2||6141||2008||MasterCard, in partnership with the Royal Bank of Scotland, is launching a corporate card that allows companies to set strict parameters on which restaurants, bars, and hotels their employees can patronize. It will help reduce maverick spending, improve compliance with corporate policies, and simplify accounting. On inControl's web interface, a supervisor can set up an overall spending limit for an individual employee or an entire staff category, as well as compile a list of approved hotels and restaurants. They can also choose to have charges declined after a certain hour or at a questionable establishment. A feature allows managers to receive real-time updates on their employees' spending via email or text message. The system also allows companies to issue cards that are good for one time use or expire in a week.|
<<Return to Reduce Unique ICDs in Process