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 kiosks and remote inventory

No. Industry SIC Year Notes
1 3861 2004 Digital technology now allows consumers to take pictures, store them on the Internet or a PC and print them at home without ever visiting a store. So, Kodak is juggling several strategies at once. It has offered retailers, including Walgreens, kiosks that let digital shutterbugs print out photos for a fee. It has also gone around the retailers with its Ofoto Web site for consumers to process and order digital prints. Kodak is also investing heavily in printers that consumers can use to print their digital photos at home. Some of those strategies created confusion and alienated Walgreens executives, who feared Kodak was cutting them out of the business. As a result, Kodak should receive less than $400 million in revenue from Walgreens this year. That compares with about $500 million in 2000. The figures include rebates and allowances.
2 5211 2004 In the past three years the Chief Executive of Home Depot has spent $2 billion on technology, including inventory management systems and Web-based kiosks in stores that offer shoppers access to thousands of special order items.
3 5600 2005 Brick-and-mortar retailing is turning to “lifestyle centers” to compete in the world of the Internet. Coldwater Creek, once solely a catalog retailer, has been opening up new stores at a rapid space, often in upscale lifestyle centers. The women's apparel retailer also offers shoppers the ability to use Internet kiosks in its stores to order goods with free shipping. That enables the stores to carry only 35% to 40% of the merchandise offered in its catalogs, saving on inventory and reducing the physical space needed.

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