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.
8. Accept risk of lower profits
Accept the potential of higher costs:
Do less testing
No. | Industry SIC | Year | Notes |
1 | 2800 | 2004 | Procter & Gamble's beauty department is a trend based and fashion based business that does not have the time it takes for consumer testing. When baby-boomers where wild for Botox the department launched Olay Regenerist, a line of skin-care-products based on wound-healing technology that P&G had been developing with Sederma Laboratories in France. Regenerist is now number one in the anti-aging category in the U.S. By cutting down on test-marketing, P&G has reduced product launch time from three years to 18 months companywide. |
2 | 4911 | 1996 | SCE is installing a system to infer nitrogen oxide emissions from natural gas fuel flow, freeing itself from more expensive stack-gas measurement methods to comply with government regulations. SCE has reduced nitrogen oxide emissions by an average of 86%. |
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