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.

5. Reduce errors in process

Improve the diagnosis of the situation: Segment customers with specific buying patterns to focus marketing efforts:
Use historical company sales data

No.	Industry SIC	Year	Notes
1	5411	2006	Wal-Mart's largest non-American operation, Asda, has been struggling recently as its top local rival, Tesco PLC, is thriving. The data from its loyalty program let Tesco tailor promotions to individual shoppers and figure out how quickly new initiatives are working. After Tesco introduced Asian herbs, cooking oil, and other ethnic foods in neighborhoods with many Indians and Pakistanis, the data showed the new products were also popular with affluent white customers. The company quickly expanded the rollout. Tesco's computers often turn up counter-intuitive results. Shoppers who buy diapers for the first time at Tesco can expect to receive coupon for baby wipes, toys, and beer. Tesco's analysis showed that new fathers tend to buy more beer because they are home with the baby and can't go to the pub.
2	5411	2008	Tesco PLC opened its first stores in the U.S. last month, using Dunnhumby Ltd., which also works for Kroger Co., to fine-tune its offerings to shoppers' needs. Because of the data Dunnhumy collected from Krogers' customers, Kroger introduced three-quarter gallon milk containers for their two-person household customers. Coffee was rearranged on shelves by caffeinated and decaffeinated, which data indicated that customers looked for first when looking for coffee.
3	5411	2008	Tesco PLC opened its first stores in the U.S. last month, using Dunnhumby Ltd., which also works for Kroger Co., to fine-tune its offerings to shoppers' needs. For example, Kroger used to run sales on its best-selling products, but data showed that meant discounts for middle-income people who would have bought the products at full price anyway. Now Kroger cuts prices on store brands and other value items bought by its most price-sensitive customers.
4	5411	2008	Tesco PLC opened its first stores in the U.S. last month, using Dunnhumby Ltd., which also works for Kroger Co., to fine-tune its offerings to shoppers' needs. Dunnhumby analysts don't create profiles of individuals, but use individual buying records to make patterns and group shoppers into segments. Those categories such as "budget-conscious" or "family-focused" help Kroger to design its stores and mail coupons for products customers have already bought, and, based on others in the segment, might buy in the future.
5	5511	2006	Used-car specialist CarMax has been adding stores at a steady pace. CarMax's biggest advantage over rivals is its database. Circuit City Stores started CarMax in 1993. It now has 12 years worth of data telling it which vehicles in which colors and with which options sells best in which markets. That's one key to its success. In order to have a no-haggle model, you need to have a lot of information so you can generate a lot of inventory turns.
6	6141	2004	McKinsey has found four broad approaches that suggest ways for credit card issuers to use risk management to improve their profitability by as much as 5%-15%. First is optimizing value, not minimizing risk. Many issuers still rely primarily on risk factors when they make underwriting decisions, assign credit lines and products, and manage accounts. One alternative is to forecast the net present value of potential customers – an approach that helps issuers approve accounts for the people most likely to use them and to maintain a healthy balance.
7	6211	1999	Fidelity was expanding its online offerings to meet the special needs of more active traders. Specifically, in September 1999, the company launched a new brand, Powerstreet accessible from fidelity.com.
8	7011	1996	Marriott has been data mining, going through digitized customer files to detect patterns in records to find out who is most likely to respond to a mailed flier. It's increased the response rate to its direct mail pitches from .75% to 1%.

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