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.

B. Shift demand to use unproductive resources.
The company may shift demand from one location, or time period, to another in order to take advantage of idle capacity.

1. Warnings and advice


  1. Place single function in fewer locations
    1. Customer ordering and service Examples>>
    2. Purchasing Examples>>
    3. Technology Examples>>
    4. Manufacturing Examples>>
    5. Distribution Examples>>
    6. Other Examples>>
  2. Place multiple functions in fewer locations
    1. Institute “work from home” programs Examples>>
    2. Regionalize businesses and functions Examples>>
    3. Combine related businesses Examples>>
    4. Centralize businesses and functions Examples>>
    5. Other
  3. Other Examples>>

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