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.

C. Eliminate customer activities with low value to the customer

Reduce ICDs by eliminating activities for which customers either will not pay or will not pay enough to cover their costs.

2. Products and services

Products that have become commodities

No. Industry SIC Year Notes
1 2273 1996 Within the last 12 months, Mohawk has moved to shut down over 750,000 sq. ft. of spinning capacity, blaming weak prices and a move into polypropylene fiber extrusion.
2 2300 1985 To reduce buyout debt, many companies sell off major businesses and such unproductive assets as real estate.
3 3085 1997 Crown has closed four PET plastic container operations to help improve profitability.
4 3651 2006 Matsushita Electric Industrial Co. is taking efficiency to new heights to counter low-cost rivals. To compete against low-cost rivals in Korea, China, and elsewhere in Asia, Matsushita is rearranging factories so they can quickly shift gears to make gadgets that are hot, and ease up on those that are selling more slowly. Its strategy is to get a product out on the market earlier than rivals. Then when the low-cost manufacturers come in and try to beat it on pricing, Matsushita gets out.
5 4213 2001 Economic problems hit truckers in late 1999. Heartland cut operations to include only the most profitable freight. Cutbacks slowed revenue yet earnings were among the highest in the industry.
6 4512 2004 Delta Air Lines plans to drop nearly one-third of the flights at its low-fare Song unit from its schedule in September. The move is likely to fuel speculation that Song's future is up in the air as Delta struggles to cut its cost and avert bankruptcy-court protection filing. Launched in April 2003, Song was formed to operate at lower costs while providing perks such as leather seats and in-flight television. Atlanta-based Delta spent $65 million to launch the airline-within-an-airline experiment. Low-fare upstarts such as JetBlue Airways have invaded Delta's turf along the East Coast, and Song once was headed for a coast-to-coast rollout. Song achieved operating costs that were 20% below those for mainline 757s.
7 5331 2001 Fred's Inc. changed the mix to include more home furnishings such as lamps, rugs and gift ware. The company also did away with low-margin lawn-and-garden items – such as big lawn mowers- and added higher-margin goods such as potting soil and plants.
8 5399 1998 Patrick & Co. tried selling computers 15 years ago but it was a mistake because it couldn't offer a satisfaction guarantee. Similarly, it offered printing services but that was discontinued since it couldn't compete with Kinko's.
9 5731 2006 RadioShack will close up to 10% of its stores in an attempt to restore profit growth. Meanwhile, the company plans to expand its kiosk business and relocate some RadioShack stores. RadioShack used to rely on cell phones and service plans, but with other stores now offering them as well, it says it wants to replace old, slower-selling merchandise with new goods within higher-growth categories.
10 5734 1997 Hoping to earn more money on lower sales, Egghead will close 77 of its 156 stores.
11 7841 1997 Company watches each store carefully; closes or relocates underperforming stores to less-competitive small towns.

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