Brainstorming Ideas: Reduce the Units of Input Not Producing ICDs or Output
Reduce units of Input (I) available but not producing Intermediate Cost Drivers
(ICDs). This action makes Input levels more directly variable with the quantity of the ICD by reducing the amount of the available Input that is wasted or idle. For example, an employee (I) might produce one subassembly (ICD) per day. During that day, the employee spends a total of one hour waiting for parts for the subassembly. If the Company could eliminate that one lost hour of the employee’s work day by providing parts in a more timely manner, the Company could reduce the number of employees (I) needed to produce the same subassembly (ICD) by 1/8th.
A. Assist Input in increasing ICDs.
1. Recognize efficiency
2. TRAIN EMPLOYEES IN EFFICIENCY
. The company may incur costs to train employees in the expectation that these expenses will result in even greater cost savings through better efficiency.
- Warnings and Advice Advisories>>
- Publish best practices. The best practices train the employees on how to do their work.
- Explain objectives of work Examples>>
- Encourage personal learning Examples>>
- Provide paid training
- Assign multiple tasks to employees Examples>>
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