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.

Provide paid training:
On sales techniques

No. Industry SIC Year Notes
1 2273 1996 Shaw was the first to develop a formal sales training program, and essentially professionalized the carpet sales profession. The other mills have begun to develop this approach, and have hired Shaw sales representatives away.
2 2834 1987 Merck has an intense training program to turn new hires into the kind of salespeople who will uphold the co.'s No.1 rating for service to pharmacists & doctors.

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