Reduce the Units of Input Not Producing 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.

F. Speed the Process


No. Industry SIC Year Notes
1 3721 1990 By vastly reducing its product line, Cessna is improving its productivity – it now takes 20% fewer man-hours to produce an airplane.
2 4512 2004 The in-house maintenance facility may not be as cost-effective as outsourcing maintenance but because of the core objective of quick turnaround the trade-off is clear to everyone.
3 5141 1997 Frequent-buyer cards also help cut inventory and speed distribution because they reveal how quickly certain products are selling and how fast so stores can order more closely to their needs.
4 5311 1996 Sears began dictating how and when suppliers make deliveries. It also started imposing financial penalties on suppliers that fail to meet deadlines.
5 5311 1996 Sears' new logistics man requires that communications to him must be printed on 3-by-5 cards, which he says forces concise writing. Stand-up meetings have the same rationale.
6 7370 1987 The Unisys plant has reduced the number of suppliers to 107 from 750 five years ago, enabling it to work more closely with each on delivery.

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