Reduce Unique ICDs by Redesigning the Product or the Process

The objective of this activity is to reduce the number of ICDs by reducing the occurrence of an ICD in producing a unit of Output, or by reducing the number of separate ICDs used in the Output. A unique ICD is one of the key activities in the work center's contribution to the final product (O). It is separate and distinct from any other activity in the work center. For example, the fastening of a part onto a subassembly and a quality control check of the subassembly would be unique ICDs.

A. Redesign the product

Reduce ICDs by redesigning the product or the components of the product. Any redesign of the product or its components implies that the resulting product, after the redesign, would be acceptable to customers.

2. Reduce Performance Standards

Components:
Offer less of a component in the product

No.	Industry SIC	Year	Notes
1	0	2002	The latest technology allows companies to decide when to answer your telephone call based on your account. Richer customers will be put through to agents right away while smaller customers will be put on hold or quizzed on their account number.
2	2711	1996	In a move fueled by skyrocketing newsprint prices, The Washington Post plans to publish on slimmer, 50-inch web-width newsprint by the fall of 1998. The Post would become the largest US daily to switch from the standard 54-inch width.
3	4111	1989	Other efforts include a modest revival of Greyhound's rural service. For those routes, the company is using fuel-efficient vans.
4	4214	1986	Executives got rid of almost half of downtown warehouses, and Bekins was back in the black.
5	4512	1996	Before cost-cutting, Delta had one mechanic at each gate. Now, one mechanic covers 3-4 gates. Flights are often delayed as planes wait for mechanics to finish one job before going on to another.
6	4512	1996	USAir Group pared seat capacity 10%, replaced jets with turboprops on unprofitable routes.
7	4512	2004	It's the little things that add up to big savings, but can annoy customers as well as employees. In the summer of 2002, Continental Airlines stopped offering passengers a full can of soda and started serving drinks in cups instead. While it lightened the garbage bags because there was less leftover liquid, passengers weren't pleased, especially on longer trips. Continental Airlines made a compromise: It would give cans to those who asked.
8	4512	2004	Through change at the top, through 9/11, in a lousy industry, Southwest Airlines still is the hottest thing in the sky. Southwest management has been working hard to keep a lid on costs as costs rise for all carriers. For instance, late last year, the company announced it was closing down three call centers to save money – more than $20 million annually – as more of its customers make reservations online.
9	5400	1985	Cub figures its shoppers save 15% to 20% on groceries. Most Cubs use blackboards to change prices, avoiding cost of changing signs.
10	5411	2004	Dollar stores are gaining in popularity as a growing legion of shoppers find Wal-Mart too pricey or too hard to get to. Many suppliers are also courting the dollar chains. Procter & Gamble has installed a team of workers at Dollar General's headquarters, just like at Wal-Mart. Its products now account for 11% of Dollar General's sales. P&G is even producing special, smaller sizes of its products so that the discount stores can hit their low prices. For example, P&G produces 18-ounce bottles of Dawn dish soap to sell at $1.
11	5812	1996	McDonalds also hopes to make up $4 million by buying more air time from cable networks and by reducing 60 second commercials in favor of 30 second ones.
12	6324	2001	HMOs have claimed that they could cut costs by increasing patients' interest in preventive care. Their plan was to keep people healthy and keep costs down. This, however, did not happen and patients merely got restricted access to medical care.

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