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.
3. Automate an ICD
Write software to automate a repetitive task: Delivery information to or from user:
Product in digital format
No. | Industry SIC | Year | Notes |
1 | 2022 | 1991 | Alpine Lace Brands last month laid off several administrative employees, and installed a voice-mail system so that it would no longer need a human telephone operator. |
2 | 2731 | 2004 | In an effort to lure back students who buy used textbooks because the costs of new textbooks are too high, Pearson PLC is offering 300 of its most popular U.S. textbooks online at half the price for print versions. Pearson generated 19% of its revenue and 30% of its operating profit from college publishing. Unlike some other e-books, the online textbooks will allow students to take notes in what amounts to the margins and to search for specific topics or pages. Analysts say that Pearson's new strategy could put pressure on profitability margins of college publishing. Educational publishers typically make between $15-$20 profit from a book set at a retail price list of $100, after subtracting costs for author royalties, printing, distribution, and retailers' take. By moving the texts online, publishers will be able to cut inventory costs, eliminate returns, reduce shipping expenses, and perhaps make a dent in the used-textbook business, luring back the more budget-minded students. |
3 | 4724 | 2001 | Most air travel sold online uses E-tickets and electronic confirmations so the products need not be stored in warehouses or shipped. |
4 | 4813 | 2001 | In just the past few months, it has become cost effective to do wireless networking in offices or in homes using the "Wi-Fi" wireless. This technology allows you to share files and printers through out the house without tearing up walls. |
5 | 5963 | 2001 | In radiology, x-rays and other forms of imaging can move easily across the internet so patients can get second opinions from out of state practitioners without having to travel. |
6 | 7379 | 2000 | CenterBeam's goal is to never send a technician to a company site. The company has built an entire infrastructure around wireless networks which means that the customer's computers can be relocated easily. |
7 | 7812 | 2004 | Digital cinema, where films are saved on disk drives and a digital projector sends the images to the screen, improves picture quality and may save movie studios billions and boost theaters ad revenue. Movies would not be shipped but sent by satellite, saving in distribution costs. Exhibitors could use the projectors for alternative programming. However, the rollout of this technology will be expensive and there are concerns of compatibility and piracy. Regal Entertainment and AMC Entertainment are testing the equipment but will not order more until the business issues are resolved. |
8 | 7822 | 2006 | Film studios are pushing simultaneous release of DVDs and on-demand films. When films are delivered digitally, studios can save on packaging and transporting DVDs. |
9 | 7841 | 2005 | When consumers buy a DVD, they pay Wal-Mart $18, and $15 goes to the studio. When a consumer downloads a movie with video on demand (VOD) , he pays three or four bucks and one or two goes to the studio. So the secret in the movie industry is DVD and not VOD. |
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