Reduce Unique ICDs by Redesigning the Product or 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.
4. Reduce movement of an Input (People, Purchases or Capital)
Reduce movement of people:
Design work flow to bring interacting people closer together
No. | Industry SIC | Year | Notes |
1 | 3711 | 2005 | BMW is opening a new factory in Leipzig, Germany despite the fact labor costs for auto workers, at $42 per hour, are the highest in the world. The factory is a paradigm of efficient design. The star-shaped layout, with logistics engineers, quality experts, and administration located at the center, is meant to speed communications by keeping managers and technicians a few steps from the production line instead of in a separate building. The assembly line can handle any of BMW's 10 model series, allowing the company to rejigger production quickly when demand for a given model surges or flags. That strategy helps the carmaker achieve operating margins of around 8%, among the highest in the industry. |
2 | 3949 | 1991 | Coleman moved its repair shop to the factory, so repairmen are at most a two-minute walk from the farthest machine. |
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