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.
Eliminate unexpected downtime. The company may know that it will have occasions of unplanned downtime and may take steps to reduce or eliminate this loss of efficiency.
|1||2893||2005||Facing pressure from off-brand ink sellers and sticker-shocked customers, Hewlett-Packard and Lexmark International are launching lower-capacity ink cartridges with smaller price tags. Canon is still the only company to offer individual color cartridges, which run about $12 each, in its cheapest printers. That means running out of, say, yellow, doesn't force users to throw away their unused portions of magenta and cyan. The firm's cartridges also feature see-through plastic that tells users how much ink they're getting.|
|2||3651||2008||Retailers and manufacturers are taking new steps to stem the tide of product returns. Last year, Sharp Corp. launched an added help service for customers who purchase high-end Aquos TVs that are 42 inches or larger. The Aquos advantage program allows members to get free telephone and Internet advice, including how to set up your equipment, and a Saturday in-home service. Members also receive promotions for extended warranties, installations, and accessories.|
|3||3695||2008||Retailers and manufacturers are taking new steps to stem the tide of product returns. Seagate Technology did away with installation CDs and lengthy instruction booklets when it launched a consumer line of digital storage products called OneTouch last fall. The installation software now comes preloaded onto the device and a short leaflet is included. Seagate says return rates have declined since the changes were made.|
|4||4800||2007||Several new technologies can allow in-the-field service providers to increase productivity. Autodial software can check to make sure that customers are at home while technicians travel toward them and may dramatically reduce the number of abortive visits.|
|5||7372||2008||Outstart, an online technologies provider, allows ExactTarget's sales force to post and answer questions about the software company's products and procedures. At first, ExactTarget downloaded a free wiki-like program off the internet and modified it for the company's use. Wiki is a technology that allows users to collaborate on a project and edit each other's work. However, it needed more maintenance than the free program or the company could give. That's how it found OutStart.|
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