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 safety and quality
|1||3711||1988||Mazda devotes 3 training days to program of continual improvement.|
|2||3711||2006||General Motors Corp. is hoping that its new state-of-the-art factories built in Lansing, Michigan are more efficient and better-suited to compete with Toyota Motor Corp. and other foreign companies. The Cadillac factory has been ranked the most productive luxury car plant in North America in 2003, 2004, and 2005. It has received the Gold Plant Award for 2004. The factory has the highest, initial quality for all assembly operations in North and South America, and ranked third overall in the world. production employees work in teams of four to six members on the assembly line, each cross-trained to do every job in the group. Each worker has the power to stop the assembly line if a problem arises. That gives UAW members a mix of responsibility and authority not present in most GM factories.|
|3||3724||1992||Allied-Signal hired Coopers & Lybrand to train company trainers on total quality management. Now, A-S trainers travel the company teaching quality methods. Production teams bring their own problems to training, then return to work them out with help from on-site trainers.|
|4||4210||2008||A growing number of companies are implementing driver safety programs for employees in an effort to save lives and their bottom line. In 2001, Liberty Mutual Insurance Company reported that 61% of business executives surveyed believe their company receives a return on investment of $3.00 or more for every $1.00 they spend on improving workplace safety.|
|5||4210||2008||A growing number of companies are implementing driver safety programs from employees in an effort to save lives and their bottom line. The average crash costs an employer $16,500. When an employee is involved in an on-the-job crash that results in an injury, the average cost is $74,000. If a fatality is involved, costs can exceed $500,000. Driver safety programs teach employees about securing materials on cars, seat belt use, distracted driving, drunk driving, fatigued driving, aggressive driving, and young drivers.|
|6||4210||2008||A growing number of companies are implementing driver safety programs for employees in an effort to save lives and their bottom line. The Network of Employers for Traffic Safety (NETS) has developed a 10-step program to minimize crash risk. The steps help employers ensure hiring capable drivers and that only eligible drivers will get behind the wheel on company business. Employees are properly trained and supervised, company vehicles are properly maintained, motor vehicle costs are kept at a minimum.|
|7||7011||2000||Each new employee undergoes a month long certification program plus 310 hours of training classes. Each must be recertified annually, a process that includes another 125 hours of class work.|
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