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 Caplital ICDs: Use People or components requiring less Capital:
Use low cost locations
|1||4011||1992||CSX Corp recently avoided having to buy or rebuild 3500 coal cars by running more efficient unit trains and storing export coal on the ground at piers rather than in rail cars.|
|2||5112||1989||Staples' central distribution center permits it to operate smaller stores than competitors that use their space as both warehouse and shop.|
|3||5399||2005||Brick-and-mortar retailing is turning to “lifestyle centers” to compete in the world of the Internet. Springing up all over the country, these small, convenient, open-air retailing complexes are laid out to evoke the small-town shopping districts of a previous generation. They cost less to build and maintain than enclosed malls, which require huge expenditures on air conditioning and heating. Lifestyle centers are also more in tune with the rise of Net shopping. Because most have walkways and parking next to each store, they offer shoppers the ability to get in and out quickly – a must when shoppers have already identified what they want through browsing. Unlike enclosed malls, lifestyle centers give more prominence to high-end restaurants, movie theatres, and other alternatives to shopping, such as strolling around landscaped paths.|
|4||5411||2004||Dollar stores, which sell staples and knickknacks at cut-rate prices, are now the fastest-growing retailers in America. They offer an alternative to those who find Wal-Mart too pricey or difficult to get to. From 2001 to 2004, the stores have grown by 34%, an increase of more than 4,000 stores. While they only total a small portion of Wal-Mart's income, they are attracting more and more customers and name-brand products. Location is important for these stores, they can fit into downtown neighborhoods where Wal-Mart can't and are also more accessible in terms of size and parking.|
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