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:
Volatile costs without hedging opportunities
|1||3575||1990||Sun has dropped all Intel- and Motorola-based products that made inventory decisions a high-risk forecasting gamble.|
|2||3711||2005||General Motors launched its successful employee pricing program without substantially increasing its marketing spending. It did so by reducing local advertising and the promotion of leases, a smart long-term strategy as the return of leases is often costly.|
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