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:
Control access to assets
|1||2834||2004||Biotech giant Amgen has engineered a solution to soaring drug demand by building a new, state-of-the-art factory for mass production. Unlike BioNow, where everything is contained with in sterile spaces and requires extensive cleaning, large reactors at BioNext are constructed behind walls, with access portals in the clean rooms. That places massive amounts of hardware and huge unused spaces outside the clean rooms, which are extremely expensive to maintain. Amgen estimates capital savings of up to $400 per square foot, as well as savings from the elimination of energy-intensive, high-efficiency particulate-air filters and refrigeration.|
|2||3600||2004||Raytheon increased its missile production by revamping its whole manufacturing system. Parts that had been stocked alongside the assembly line are now stored in the trailers in which they are delivered. When a trailer is emptied, it is replaced with a waiting one and gets hauled off for a refill. Inventory has been reduced from four months' production to ten days.|
|3||3711||2005||Ford Motor Co. has started selling its second hybrid vehicle with a new online approach. The company is encouraging buyers to go online to place orders at www.marinerhybrid.com, where they will be assigned a "personal sales consultant" to help them find a dealer, arrange a price and schedule times for signing of papers and pickup at dealership. As a result, dealers won't have Mariners on their lots for test drivers. Each region, however, will have a vehicle available to be tried out that dealers can schedule to use. Lincoln Mercury is hoping that this new online approach will ensure the limited number of new hybrids get to the customers who want them, instead of sitting on dealer lots in places where there is little or no demand.|
|4||6211||2004||While branches continue to be an engine for acquiring customers, efforts are made to avoid reintroducing the installed base into this higher-cost service channel: investor education seminars, for example, often convene at third party locations. By guiding customers through the sales and service process, Schwab has succeeded in offering them the benefits of a multichannel model while containing the cost of providing it.|
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