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.
8. Accept risk of lower profits
Accept the potential of higher costs:
Do less accounting
|1||0||2002||A quick-hit cost reduction program can have an immediate impact on spend rates by identifying and eliminating procedures that waste money and time. One retailer saved $440,000 by halving the number of inventory counts taken each week. By eliminating tasks, a company can reach most of its savings.|
|2||2834||1994||Johnson & Johnson did away with monthly closing of its books; now closing occurs quarterly.|
|3||3861||1991||One camera manufacturer scrapped the checking of spare parts invoices entirely because there were so few problems. It was grossly uneconomical to keep an invoice checking department.|
|4||3861||1992||Xerox discovered that it spent much more than its competitors on order processing its small items because it tracked them by serial number as if they were big ticket items; other companies didn't bother.|
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