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.
B. Shift demand to use unproductive resources.
The company may shift demand from one location, or time period, to another in order to take advantage of idle capacity.
|1||6722||2004||In a world once dominated by Wall Street stock-trading houses like Citigroup Inc. and Goldman Sachs Group Inc., Fidelity Investments and other big money managers now hold most of the cards. Fidelity has installed a tracking system to see which brokers can execute trades most efficiently. Those that don't measure up get the boot. The company has whittled the number of brokers it uses to about 75 from 500. A favored 30 get most of the business. Fidelity's probably the least profitable account for any brokerage firm to service. It extracts every drop of value it can.|
<<Return to Reduce Input Not Producing Output