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.
|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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