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.
A. Assist Input in increasing ICDs.
Recognize efficiency. When people understand that the company is measuring efficiency, they pay more attention to what is measured.
Add evaluation of levels of efficiency: Compare efficiency to outside benchmarks:
|1||0||2008||Software start-ups such as Carbonetworks Corp., Optimum Energy LLC, and Verdien Corp. are making new programs to help businesses monitor their energy use and cut fuel bills. Microsoft Corp. is rolling out software to help measure and track greenhouse emissions in 40 cities around the world.|
|2||3571||2007||Servers are more popular and powerful but require more power to run and cool over their lifespan. As energy costs rise, vendors are introducing new technology to manage energy usage. IBM offers software that monitors servers' power use. Additional software will prevent servers from overheating.|
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