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 of the experience the customer has with the product:
Image

No.	Industry SIC	Year	Notes
1	1531	1997	Eliminating such features as doorbells and installing smaller windows are other cost-cutting moves.
2	1531	2000	Meritage Corp. says new home sales will decline due to the lack of affordability. So, Meritage Corp. will build smaller, less expensive houses to keep its sales up.
3	4512	2004	In attempt to slow the profit-loss, American Airlines has changed its strategy, emulating the successful low-cost carriers. First class blankets are made in China instead of Italy and light bulbs are changed less frequently. Windows are changed when needed, not on a regular schedule and airlines are polished every two years instead of annually. These cost cutting tactics, along with concessions from unions, have saved the company $4 billion, reducing annual costs by 20%.
4	5331	1998	In keeping with the low-budget format, value retailers tend to go into locations left vacant by other tenants at rents of around $3 to $4 per square foot, less than half the discount-store average.
5	5661	2005	DSW Inc. is a brand-name shoe retailer. DSW has a talented team of buyers who are adept at accessing in-style designer-label goods at low prices and at making opportunistic buys. Constant restocking with new products is what drives the sales. As an off-price retailer, DSW can buy well-known brands and designer labels at low prices because of relationships it's developed with vendors since its start in 1997. It has ties with 300 leading brands, including Kenneth Cole.
6	6531	1998	Boxer buys what the industry considers "Class C" buildings – cheaper properties that are located in suburbs rather than downtown. With low acquisition costs, Boxer can offer below-market rents.

<<Return to Reduce Unique ICDs in Process