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:
Liquidate assets falling in value
|1||5731||2005||Woot.com sells one product a day from one manufacturer at a steep discount. Brian Carlness of Rockford Corp. in Arizona rid his inventory of digital streamers in just 8 hours by selling it on woot.com for $199 instead of the original $800. Manufacturers like the website because they can sell their merchandise without having to compete with others selling similar items. The website makes money by charging the manufacturer a commission for each sale. Sale starts midnight Central Time and ends at 11:59PM or if stock sells out first.|
|2||7389||2006||Channel Velocity helps sellers recoup more for returned and overstocked items. It never buys inventory, but gets a 10%-30% cut of each sale. It also passes eBay fees onto its clients. For example, a 50-inch plasma TV sells for $2,500 for Philips Electronics. Channel Velocity will get $250 of that sale, pass through a $50 eBay fee, and net the client about $2000. The customer always gets a nice recovery on the item.|
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