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Brainstorming Ideas: Reduce the Units of Input Not Producing ICDs or Output

Reduce units of Input (I) available but not producing Intermediate Cost Drivers
(ICDs). This action makes Input levels more directly variable with the quantity of the ICD by reducing the amount of the available Input that is wasted or idle. For example, an employee (I) might produce one subassembly (ICD) per day. During that day, the employee spends a total of one hour waiting for parts for the subassembly. If the Company could eliminate that one lost hour of the employee’s work day by providing parts in a more timely manner, the Company could reduce the number of employees (I) needed to produce the same subassembly (ICD) by 1/8th.

A. Assist Input in increasing ICDs.

1. Recognize efficiency

2. Train employees in efficiency

3. ELIMINATE UNEXPECTED DOWNTIME
. The company may know that it will have occasions of unplanned downtime and may take steps to reduce or eliminate this loss of efficiency.

  1. Warnings and advice Advisories>>
  2. Reduce turnover Examples>>
  3. Anticipate health problems Examples>>
  4. Reduce other absenteeism Examples>>
  5. Other Examples>>

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