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.

A. Redesign the product

Reduce ICDs by redesigning the product or the components of the product. Any redesign of the product or its components implies that the resulting product, after the redesign, would be acceptable to customers.

2. Reduce Performance Standards

Overall product: Lessen the quality o the experience the customer has with the product:
Sensory experience

No.	Industry SIC	Year	Notes
1	1531	1996	Calsouth makes the homes it creates simpler to build, minimizing corners, curves; it also makes nonessential features (microwave, fireplaces) optional.
2	1531	1997	Eliminating such features as doorbells and installing smaller windows are other cost-cutting moves.
3	3711	1986	Chrysler cut costs on its Omni/Horizon car by first eliminating the car's many options. A larger engine, cloth seats, and a rear-window defroster were standardized. Options are limited to a radio, an A/C, and one of 2 single-price packages. Exterior colors were cut to 6 from 13, and two-tone paint jobs were banned. 701 kinds of parts were eliminated.
4	3721	2005	Legroom on board an aircraft has always been a source of complaint but the situation has worsened on international flights where struggling airlines attempt to cram in more seats for a greater profit. Many of the wide-bodied 747s flying on 10-hour plus journeys have less legroom than discount leader Southwest on domestic flights. Singapore and Cathay Pacific have a longer seat pitch but many carriers have just 31 inches in coach, the same as domestic discounters. Air France and Virgin Atlantic are the worst with only 30 to 32 inches. Frequent fliers are frustrated because there is no way to know if the plane will be spacious or cramped and seat pitch can vary in different locations of the same planes. Some airlines have responded to the problem by adding extra room for marathon flights, like Singapore's 18-hour Singapore to New York.
5	4512	1996	USAir Group pared seat capacity 10%, replaced jets with turboprops on unprofitable routes, and squeezed out more flights per plane by turning them around faster at the gate.
6	4512	1996	Delta has pared one flight attendant from most types of aircraft, putting carriers at federal minimum staffing levels. Flight attendants say they often can't finish a beverage service on shorter flights.
7	4512	2004	As most airlines fight to trim costs, Ryanair is struggling to find the few ounces of fat hasn't already cut. Ryanair has even converted some costs into revenues. Three Ryanair planes are flying billboards for Guinness stout and other products, each generating a one-time, six-figure net gain. Flight attendants are paid commission for on-board food sales, included cups of airline coffee for about $3.50, allowing Ryanair to pay them less in salary.
8	4512	2004	Through change at the top, through 9/11, in a lousy industry, Southwest Airlines still is the hottest thing in the sky. Through decades of battling the big airlines, Southwest hasn't really changed its original formula. It enters markets in which traditional airlines hold sway and then blasts them with much lower fares. Southwest flies “point to point,” ignoring the hub-and-spoke model of most other airlines. It flies only 737s. It serves no meals, only snacks. It charges no fees to change same-fare tickets. It has no assigned seats. It has no electronic entertainment on its planes, relying instead on relentlessly fun flight attendants to amuse passengers. That formula has so far proved unbeatable.
9	4512	2004	Northwest Airlines cuts costs back even more than it already has. Surprisingly enough, even after 3 years and 8 rounds of cost cutting, Northwest still had plenty of fat it could lose. Northwest started in 2001 by immediately laying off 200 management employees. It has since then shifted maintenance work to overseas contractors, designed a new, cheaper paint job for its jets, and begun buying less expensive orange juice from Australia for its Asian flights. Last year, it started using lighter-weight paper for its boarding passes – to save $500,000 a year. It negotiated lower landing fees at the airport in Detroit, quit printing time tables, and stopped carrying domestic mail for the U.S. Postal Service.
10	4512	2004	Space is tighter on European flights. While JetBlue flights have 32 to 34 inches between seat rows, European discounters average about 29 inches. Since most flights within Europe are shorter than two hours, the focus is efficiency, not comfort.
11	4512	2005	In order to make up for massive budget deficits, major airlines are charging for perks that were once free. Curbside checking, snacks and pillows have become add-on services on many flights including American, United and Continental. Frequent fliers and elite members often avoid these fees but the general public is forced to reconcile rock bottom fares with few amenities. These changes have made no-frills carriers such as JetBlue and Southwest seem downright luxurious.
12	4512	2005	Independence Air is a BYOB airline. Either bring your own blanket and pillow or go without.
13	5411	2004	While dollar stores still rely on low-income households for the majority of sales, some dollar store companies are moving up the retail food chain. As a result, dollar stores are gaining clout among the consumer-products and food manufacturers who once ignored them. Procter & Gamble Co., for example, created for dollar stores a special 18-ounce bottle of Dawn dish soap that sells for $1. Kraft Foods Inc. sells a 12-ounce box of macaroni and cheese through dollar stores. It's about 25% larger than the traditional supermarket size and isn't available in fancy shapes or enhanced flavors. Limiting such choice is one way dollar stores simplify their distribution processes and keep costs down.
14	5411	2004	While dollar stores still rely on low-income households for the majority of sales, some dollar store companies are moving up the retail food chain. Dollar Stores, usually located in strip malls, have few frills. Most feature linoleum-tile flooring, fluorescent lighting and metal shelves. Historically, dollar stores were the dumping ground for a hodgepodge of leftover merchandise. Some have recently expanded into more exotic goods, including frozen shrimp and brand-name underwear. Some chains sell everything for dollar or less, while others sell products for as much as $10. Items are almost always priced in whole numbers for the sake of simplicity.
15	5541	2006	The discount dynasty in Wyoming, run by the Call family, keeps the gasoline cheap. The first chain, called Maverick, was started in the early 1960s. Today, it has about 175 stations across the Western U.S. and Canada. While other gas-station owners of the era bragged about good service, Maverick specialized in stripped down stations with gravel driveways and offices barely big enough to fit a desk. Maverick helped to pioneer the self-service pumps and gas station convenience stores in the region, slashing their labor costs and boosting their revenue with high margin items like milk and candy.
16	5611	2004	To hold down costs, Men's Wearhouses are located in shopping plazas rather than malls, and they shun splashy flagship stores in high-rent neighborhoods. They recently cut expenses by moving the manufacturing of one line of suits from Italy to Korea.
17	7011	2006	The trend of outfitting low-cost hotels with smart twists has been gaining ground overseas for a few years. Another newcomer to the world of no-frills chic is easyHotel, which has recently opened franchises in the normally expensive cities of London and Basel, Switzerland. Rooms are none too large but plenty cheap. They are essentially prefabricated pods in DayGlo orange and white, inserted into existing buildings. Its London property used to be an 18-room hotel, but upon easyHotel's conversion, there were 35 units. Rooms come with shower/toilet booths, pay-per-view televisions and double beds, and are priced on a sliding scale depending on how full the hotel gets. Prices start at an amazingly cheap $44 per night for a double room in London and $25 in Basel, and neither is ever priced for much more than $90.
18	7832	1992	New wool rugs are purchased locally at 45% savings, butterless popcorn saves $2 million per year, fire exits are left unpainted and total costs of furnishing and decorating fell to $500 a seat from $1400.
19	9400	2004	It's the little things that add up to big savings, but can annoy customers as well as employees. The University of Kansas identified 173 ways to save an estimated total of $1.7 million a year, last year. More than half the school's total annual target for cost reductions is expected to be met by setting thermostats to 75 degrees in the summer and 68 degrees in the winter, upgrading fluorescent lights to more efficient bulbs and other steps. Low-flow toilets and urinals will offer more savings.

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