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.
4. Reduce movement of an Input (People, Purchases or Capital)
Reduce movement of both people and ICDs:
Move work centers closer together
No. | Industry SIC | Year | Notes |
1 | 3585 | 1994 | American Standard clustered machines needed to produce modules that it combines to make final products. It can complete these units so quickly that it starts producing most parts only after receiving an order. Inventories are dwindling. |
2 | 3585 | 1994 | American Standard moved representatives from order entry, design, planning, and other functions together; orders pass quickly between them and reach the factory floor in 1-3 days. |
3 | 3711 | 1986 | GM has invested $40 billion in such futuristic projects as Buick City, an industrial complex where suppliers' plants are just minutes from GM assembly lines. |
4 | 6311 | 2003 | On placing linked processes near one another, the company put all steps in the value stream next to one another, which reduced the silo effect and gave employees more acute awareness that they were part of an integrated whole. |
5 | 8361 | 1997 | ARC concentrates the elderly population and provides on-campus continuing care This is economical as a result of the ability to leverage infrastructure, including facilities, people, purchasing power, and capital. |
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