Brainstorming Ideas: Reduce Unique Intermediate Cost Drivers in Process

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.

1. Warnings and advice

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

3. AUTOMATE AN ICD

Warnings and advice Advisories>>
Write software to automate a repetitive task
1. Schedule work Examples>>
2. Monitor situation Examples>>
3. Deliver information to or from user
  1. Work standards, instructions and guidelines Examples>>
  2. Information on customers or employees Examples>>
  3. Customer orders and questions Examples>>
  4. Product information, including specs and delivery
    1. Product and service availability Examples>>
    2. Specifications and service questions Examples>>
  5. Product in digital format Examples>>
4. Guide robots or other manufacturing processes Examples>>
5. Find efficient routes between points Examples>>
6. Reach decisions based on rules Examples>>
7. Manage payments Examples>>
8. Translate Examples>>
Use RFID technology to
1. Identify items Examples>>
2. Locate items Examples>>
Use bar code technology to
1. Identify items Examples>>
2. Locate items Examples>>

4. Reduce movement of an Input

5. Reduce errors in process

6. Reduce use of Purchases and Capital ICDs

7. Standardize ICDs

8. Accept risk of lower profits

9. Other

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