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.

4. Customers

Slow growth

No. Industry SIC Year Notes
1 2086 2000 The new CEO of Cott corrected its problems by shedding unprofitable small customers and divesting everything but soft drinks.
2 2320 1991 Phillips bought B.H. Bass, pared down inventory, narrowed the # of shoe styles, and eliminated distribution to lowbrow discounters.
3 2385 1998 Refocusing on its core "technical" clothing that stresses function over fashion, the company dropped retailers and reduced its product offerings.
4 3571 1997 Operating w/ little or no inventory, many small shops offer individual buyers cutting-edge microprocessors, or some other component long before brand-name makers. For example, IBM initially uses its allotments of new chips for corporate demand.
5 4813 1998 AT&T has stopped chasing low-use customers who cost the company an estimated $500 million last year even though it means immediate declines in revenue and calling volume.
6 8721 1994 Ernst & Young an example of an accounting firm trying to cut costs by reducing staff. Small customers complaining that they are not receiving good service and are moving to smaller competitors. Big firms focusing on big customers.

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