Reduce Unique ICDs by Redesiging 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.
|1||2400||2006||While Weyerhaeuser has sold minor assets and sold mills, it has not undergone any significant restructuring until now. The company plans to sell its fine-paper operation to Canada's Domtar Inc. This division is viewed as the weakest link in its portfolio and investors may benefit from the sale.|
|2||3572||1997||The company has decided to discontinue its 3-inch mobile drive program. Although showing some promise, the company decided that the opportunity was not large enough to support the current investments.|
|3||3711||2005||Ford Motor Co. plans to overhaul its global purchasing process to offer larger, long-term contracts to a smaller group of suppliers on future models, a switch that could save billions of dollars a year. As part of its makeover, Ford has announced plans to cut 2,700 salaried workers this year in North America, sold rental-car division Hertz, and unveiled plans to ramp up production of hybrid-engine vehicles.|
|4||4899||1996||PSINet announced that it would cut 50% of its workforce and close down its consumer-oriented Internet service.|
|5||5331||2001||99 Cents Only profits got a boost last year from the sale of its underperforming Universal Unit, a discount chain of 65 stores in the Midwest, Texas and upstate NY.|
|6||6411||1996||The old Travelers insurance operation, acquired by Primerica, has been stripped of its health-insurance unit & had $400 million taken out of expense base. Employment at original Travelers ops – 37k in 1987 – now stands at 15k.|
|7||8731||1996||Corning Inc. is looking to unload its faltering laboratory services division.|
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