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.

7. Standarize ICDs

Standarize procedures in functional costs:
Sell

No.	Industry SIC	Year	Notes
1	2300	1997	Gucci's turnaround involved standardizing marketing, with similar store windows across the world.
2	2451	1997	The best dealers do what a Fleetwood salesmen calls “System Selling” where they say the same thing in the same way to every customer. The smaller Mom and Pop operations are not so well systematized and do not compete well against the company owned stores.
3	2844	2004	Avon expanded its cosmetics business globally by rebuilding its manufacturing and transportation infrastructure from top to bottom. First, Avon had to create a common database. Its central planning team spent many months putting in place standardized product codes, descriptions, and other information so that all the other countries were speaking the same language. The database gave Avon visibility into sales trends and inventory so that managers could look across the region and view both supply and demand.
4	2911	1996	New CEO consolidated Quaker's three chains into one national chain operating under the Q Lube name.
5	3861	1992	From 1985 to 1986, Xerox instituted a new product-delivery process designed to standardize procedures. Functionally and geographically integrated teams took responsibility for introducing a new product in all major markets.

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