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 Capital ICDs: Use People or components requiring less Capital:
Change work hours to extend capital usage
|1||0||2004||JetBlue also gets better utilization out of its aircraft than Southwest because they are new-they can be run for longer hours and are more fuel efficient.|
|2||3500||2006||Germany sees job gains due to the increased flexibility by Europe's labor. HAWE Hydraulics also wanted to satisfy the company's need for a longer workweek so that it could increase production. In the end, it decided to follow BMW's model: Employees who worked Saturday would get an extra day off, giving them a four-day workweek. Though HAWE had to hire more workers to operate the same number of machines, productivity rose nearly 15% because the machines were running longer.|
|3||4512||1997||Thanks to more flexible union contracts, Alaska was able to keep its planes aloft more than 11 hours a day last year, up from just over 8 hours/day in 1993. The extra flying gave it the equivalent of 28 additional planes at virtually no cost.|
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