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:
Excessive marketing and sales costs
|1||5500||1988||Arco sold its Philadelphia refinery, cut costs by 20%, cut work force by 18%, disposed of poor-profit properties, and withdrew from slow markets east of the Mississippi.|
|2||5912||2000||After a poor initial internet performance Vitaminshoppe.com is trying to correct past mistakes by avoiding costly television advertising.|
|3||6211||1999||DIR is cutting back on advertising because it is not clear that it increases awareness.|
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