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:

No. Industry SIC Year Notes
1 3651 2008 Retailers and manufacturers are taking new steps to stem the tide of product returns. Last year, Sharp Corp. launched an added help service for customers who purchase high-end Aquos TVs that are 42 inches or larger. The Aquos advantage program allows members to get free telephone and Internet advice, including how to set up your equipment, and a Saturday in-home service. Members also receive promotions for extended warranties, installations, and accessories.
2 3651 2008 Retailers and manufacturers are taking new steps to stem the tide of product returns. Sony Corp. added an option allowing consumers to engrave their name or other message on a Vaio computer 2006. It expanded the program to its digital cameras as well. The program lets customers personalize products, but a side benefit for Sony is that engraved products can be returned only because of defects or other reasons that are the company's fault. So far the company has saved more than $1 million with the program.
3 4512 2004 Over the past three years, discounter airlines have seized the opportunities created by the crisis roiling traditional airlines and, in doing so, exacerbated their woes. Traditional carriers now face discount-airline competition on at least 70% of their domestic routes, and they have lost the ability to raise prices even when traffic is strong. AirTran grabbed a fleet of nearly new planes abandoned by American Airlines when the nation's largest airline took a knife to its operations after Sept. 11, 2001. Swapping out its older, less-efficient planes and growing faster than planned, AirTran now spends less on fuel and maintenance, and its planes are more attractive to customers. It has also hired pilots laid off by American.
4 4911 2007 In order to meet demands from customers and regulators and avoid constructing new facilities, many utility companies are using technology to change the energy usage of their customers. Tools such as advanced electric meters, in-home displays, remote control devices and innovative pricing plans are designed to help consumers make conscious decisions about their energy usage. Progress Energy distributed wireless devices that measure energy use by interacting with the electric meter. People can switch appliances off and on and immediately see the savings in money and kilowatt hours.

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