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.

B. Redesign the process of producing the ICD or Output

Change the process used to produce the ICD or Output to eliminate activities.

2. Shift ICD to others outsdie the company with no payment for their assistance

Customers:
Create

No.	Industry SIC	Year	Notes
1	0	2005	Whirlpool wants to tap into an online community of customers who would be able to make digitized changes to their designs for home appliances and then send the suggestions to their company. The company expects to trim research time by a month and expenses by 30%. Dannon's Light n' Fit yogurts were being challenged by rivals who were offering a slimmer product. Dannon enlisted customers to evaluate yogurt names, package designs, nutritional labeling, and size. The activity took 6 days. Based on the research, Dannon named the new yogurt "Carb Control", put it in a red container, and highlighted the 80% less sugar for dieters. "The product took off very quickly."
2	3571	2006	IBM is pulling people together for the online equivalent of a town meeting, an “Innovation Jam.” Sixty-seven clients will have first-row seats as the company hashes out its strategies for the future. It's possible that competitors could lurk in virtual chat rooms, listening in on new ideas. Teams of IBMers will spend the next months sifting through the posts to identify the most promising. During phase two, which takes place September 12-15, everyone is invited to the jam site to refine and rate the best ideas based on their business value.
3	3572	1998	According to company executives, the centers allow customers to bring in applications and design a storage solution to meet their requirements.
4	3944	2005	RC2 has for years made miniature Nascar models for adults. It added toys for children and infants in 1999. To gain more research, it is sending products to mothers. They have the mothers test the products with their children and then send back the results as well as suggestions. RC2 then makes the changes. The whole approach has cut 8 weeks off the time it would have taken using conventional research.
5	7372	2004	When Microsoft Corp. launched Windows 95 operating systems, the company consolidated its market position and greatly enhanced its equity valuation by negotiating a billion dollar subsidy from many of its best customers and developers. During the product development the company sent out 400,000 beta version copies of Windows 95 to thousands of beta sites worldwide. Individuals and organizations would help track bugs and suggest improvements in exchange for receiving the software in advance and in effect influence the program's development and getting help with any problems that may arise. Microsoft essentially came up with a valuable technical population the size of a major city to help improve the quality and capabilities of its new operating system. The final stage of Windows 95 development was $900 million which is far more than the company had invested. The subsidy has enabled the company to produce a far better product for less money and time.

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