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:
Pursue patent and trademark infringement
|1||2084||2006||Top vineyards are fending off counterfeit wine with sophisticated methods of protecting themselves. For its 2001 Brunello vintage introduced in February, Ciacci Picolomini d'Aragona di Bianchini S.S. of Tuscany grafted elaborate holograms into the wrapping that seals the cork. The winemaker also has experimented with embedding microchips in the label that can be read with an optical scanner. Penfolds Grange, owned by Foster's Group Ltd., invested in security measures, laser-etching the wine's name, vintage year and a five-digit alphanumeric code directly into the bottle's glass. Penfolds has also expanded the number of “recorking clinics,” where clients bring unopened bottles to have them tasted for authenticity by Penfolds' chief wine maker. The checked wines are then recorked, dated, and marked with security codes than can be read only under a black light.|
|2||3652||2005||Four global music companies – Universal Media Group, Sony Corp., Sony BMG Music Entertainment, and Warner Music Group – have just launched a strategy in Mexico, in conjunction with government authorities, aiming to replace the pirated CDs sold by street vendors with new lines of cut-rate legitimate CDs. The companies are betting that the movie studios and record labels can woo back consumers abroad by slashing the price of legally manufactured DVDs and CDs. Their discs are of superior quality, eliminating the risk of buying substandard goods and justifying the premium they want consumers to pay. The CDs being released for the program, some of which carry labels identifying the discs as specially made for street markets. The discs, which include minimal artwork and packaging, cost around $4.50. To find cheap ways to sell current hits, the music companies are working on budget-priced singles.|
|3||5699||2006||Built NY, an accessories maker based in New York, is stopping product imitators in patent infringement cases. Built NY discovered that if companies spend a little money and find a patent lawyer who knows trademarks, they can work on a strategy that fits their budget. In 2005, Built NY spent $450,000, or 4% of its total revenue, on legal costs to protect its patents. Of the infringement cases that it has won, its rivals have had to destroy their inventory, pay licensing fees, abandon the mark, pay a percentage of sales, and repay Built NY's legal costs.|
|4||5948||2006||Luxury-good companies are fighting back against counterfeiters with a new arsenal of legal tactics. Still, recent victories are only a small setback for pirates. Industry officials say the fake luxury-goods business makes up about 5% of the overall $545 billion in annual sales of counterfeit products. Luxury-goods executives and their lawyers say their next step could be to target international shipping companies which they say transport fake products around the world or financial-services companies whose credit cards are used to buy fake goods online.|
|5||5948||2006||Luxury-good companies are fighting back against counterfeiters with a new arsenal of legal tactics. LVMH Moet Henessy Louis Vuitton SA have set up big signs in NYC's Canal Street warning that the bags could be fakes, but the punishments for selling them are real. In addition to targeting manufacturers and sellers of fakes, they are turning their attention to land-lords, shipping companies, credit-card companies, and any other part of the supply chain that leads to the sale of counterfeit wares.|
|6||7372||2007||In order to take advantage of Windows Vista and Office 2007, users will have to validate their copies online. Only users with authentic copies will be able to download programs and get extra features. Often, users are unaware that they are using a pirated copy. When they go to validate it, they will be encouraged to let Microsoft know where they purchased the product and download an authentic version for a reduced price.|
|7||7812||2006||Pornography industry is showing mainstream Hollywood how to fight back against pirates. Falcon Foto, a porn magazine publisher, has seven lawyers on its payroll to chase down pirates; it also has half a dozen lawsuits going right now. It also recently hired a software engineering firm to design a program to scour the Net for other unauthorized users. Other producers of porn are starting to share revenues from online movies with the distributors of their DVDs, who might otherwise feel endangered by digital distribution online. Bolder yet, one large studio is allowing fans who buy movies online to burn them from their computers onto DVDs, with some protections included.|
|8||7812||2006||Walt Disney Co. is launching a new marketing campaign in China in hopes of getting consumers to help it weed out counterfeit products. The company's "Disney Magical Journey” promotion, its biggest Chinese marketing campaign of the year for consumer products, is a twist on the traditional customer-loyalty program. To enter a contest for free Disney DVDs, television sets, and trips to Hong Kong Disneyland, customers peel a sticker off a Disney product, attach it to a form, fill in a few personal details, and mail it in. The catch: only legitimate Disney products carry the specific red hologram-covered stickers, in a market rife with pirated Disney products that are often of similar quality to the real thing.|
<<Return to Reduce Unique ICDs in Process