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 producing losses: Due to high costs:
Inefficient capital structure
|1||3339||1998||Due to the depressed nickel price environment, Inco management introduced a $35-45 million cost-cutting program in November 1997 that involves closing high-cost mines and expanding a low-cost, high-grade mines.|
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