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.
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.
Explain objectives of work
|1||0||1995||Economic Value Analysis (EVA) training should include everyone in the corporation. Varity gave EVA training to all of its employees.|
|2||3711||2007||As its top executives reach retirement age, the company relies more on foreign workers and quality issues arise, Toyota is introducing educational initiatives to make sure that Toyota culture remains the same. Employees are required to apply the Toyota Way to business as well as engineering decisions. Retired engineers are paid to mentor new employees and old employees are sent to management retreats to reinforce the company message.|
|3||4424||1993||Sea-Land Service found that once its employees have met with customers and listened to their needs, productivity goes up. Employees understand better what real live customers need.|
|4||3400||2008||Van Meter Industrial Inc. and other employee-owned companies are setting up education committees to teach their employees what each of them can do to raise their stock price and their own net worth. One of Van Meter's employee committees has rolled out a series of campaigns with catch slogans and giveaways to raise awareness of stock ownership and to get workers thinking about how to raise their stock.|
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