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.

5. Reduce errors in process

Improve the diagnosis of the situation:
Train employee to spot emerging problem

No.	Industry SIC	Year	Notes
1	1623	2007	Even a few outstanding bills can have a dramatic influence on a small company's bottom line. As they do not have the resources to hire full-time collection agents, some are turning to alternative resources. Nicholas & Co. realized that many of their clients took more than a month to pay. In response, the company changed its sales-pay structure to base commissions partly on how much of a sales representative's accounts are current and how long customers take to pay. Previously, representatives received their commissions before customers paid their bills, reducing their incentive to go after delinquent clients. Stricter payment standards were imposed for high risk clients. This has reduced the firm's reliance on borrowing although some staff initially resisted the change.
2	2834	1993	At J&J's McNeil Consumer Products subsidiary, workers who previously had no opportunity to interact with customers can now visit a special booth in the plant to hear queries and complaints from the outside world that come in on an 800 line.
3	2844	2004	Avon expanded its cosmetics business globally by rebuilding its manufacturing and transportation infrastructure from top to bottom. Education and training was another critical piece to Avon's transformation. The company quickly saw that the employees' skills needed to be upgraded and teamed up with Britain's Cranfield University to create a curriculum that taught the employees the competencies needed for the jobs. To introduce new thinking, the program brought in experienced supply chain managers from leading companies in a range of industries. Avon plans to repeat the program every year with new groups of people to ensure that everyone in the organization understands what a world-class supply chain looks like.
4	3085	1993	When Mid-South fell short on Xerox's efficiency standards, it invested $40K to upgrade its assembly line with robotics and other computer automation. It also invested $1 million in training workers how to be more efficient. Annual operating costs were trimmed 5%, and product defects were nearly eliminated.
5	3572	1987	At CDC, workers were made responsible for examining the product as it came to them on the line. Within a month of implementation, operator errors were reduced by 90%.
6	3751	1987	At both Huffy and Unisys, workers are expected to inspect their own work and to act as a quality control on the person or machine just ahead of them in the process. Problems are corrected before dozens of defective bikes or terminals are returned.
7	3812	1988	Whistler cut its defect rate and improved productivity/worker by 100% with new system: kanban system pulls parts through the plant; workers can send units back or halt assembly lines to fix a problem; workers and management agree on production goals; and workers can leave early if they've met their quota.
8	4424	1993	Sea-Land Service found that once its employees have met with customers and listened to their needs, productivity goes up. Employees understand better what real live customers need.
9	5300	2005	To further offset the higher costs of health care besides higher co-payments and deductibles, companies are testing new ways to find more savings. More companies are also turning to operators such as Nashville's American Healthways Inc., which has a booming business providing disease-management services. Under these programs, companies teach employees suffering from costly or chronic conditions such as asthma, diabetes, or heart disease how to better manage their health with improved diet, exercise, and medication. Since 2002, Lowe's Cos. has had such a program aimed at workers with diabetes and heart problems. The company's annual medical and drug costs for employees enrolled in the program have fallen by an average of 7%.
10	6300	2005	Each of this agent's producers are focused on only two to three industries. The best producers focus on only one to two industries. Each of these producers knows the top three to five insurance companies serving his market.
11	8062	2007	Doctors are receiving less training in medical procedures. Treatment can be inadequate and even dangerous should the doctor not have adequate experience. In response, some hospitals are creating special procedure services and advanced training, reducing complications and the risk of malpractice suits. Cedars-Sinai has seen a dramatic reduction in complication rates and wait times. Interns are encouraged to focus on and master a specific set of procedures.

<<Return to Reduce Unique ICDs in Process