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 (units of investment used to produce end product Output):
Warnings and advice

No. Industry SIC Year Notes
1 0 1993 In order to reduce inventory, companies need to analyze 3 sources of uncertainty in the supply chain: suppliers, manufacturing, and customers.
2 0 1993 In order to reduce inventory investment in supply chains, companies should benchmark current performance, understand levels of uncertainty, and map out projected effects of changes.
3 3550 2002 Saving space is common to kaizen events anywhere. So far the tools group has freed up 112,000 square feet. Most of it remains empty, the floor shining from a new coat of urethane, the area blocked off by yellow caution tape so it doesn't fill with something else. In time it will be used for new products.
4 3570 1993 Study found that the root causes of HP's inventory are 40% minimum stock, small percentages process variance and supply variance, and the great majority of inventory is due to demand variance.
5 3711 2003 Toyota's lean-production system is legendary: the company's cars routinely win quality awards, its capital efficiency is extraordinary, and a lot of its plants have breakeven points at 30 to 40 percent of capacity. Underlying lean techniques are four principles: the elimination of waste, the control of variability, flexibility, and the full utilization of human talent.
6 5331 1999 A smaller inventory makes it easier for Costco to manage inventory and to obsessively monitor prices.
7 5331 2000 Value America also kept no inventories, relying on outside suppliers to fill orders and deliver the goods. This caused it to lose control of the sales process and take heat when consumer orders went awry.
8 5900 1996 Stocks of fast-selling items should frequently be held in the distribution center and stores replenished on demand with full cases of items. For slow-selling, high-value goods, it's worth shipping individual items packed with other slow-selling products out to stores. Other items, such as very large goods, should involve little or no intermediate handling between supplier and store.
9 5945 2000 During the summer of 1999, inventory controls were so stringent that each store manager was limited to ordering 30 rolls of scotch tape at a time which severely restricted promotional opportunities during the holidays.

<<Return to Reduce Unique ICDs in Process