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.

6. Reduce use of Purchases and Capital ICDs

Reduce Purchased ICDs (items purchased for end product Output):
Reuse components

No.	Industry SIC	Year	Notes
1	3531	1999	Chrysler saved $100,000 in annual costs by sending recycable shipping containers.
2	3571	2001	IBM makes sure resold computers aren't obsolete by upgrading them with the latest chip and other technology. The refurbished items also sell at a discount. Prices vary by model, age and power, but they can be 15% to 20% or more below the price of a new machine.
3	3571	2003	A top IBM worker helped IBM slash $3 billion by selling off 3 factories, shifting manufacturing to cheaper locations like China and Ireland and simplifying product designs. In the process, IBM has reduced inventory by a third, slashed its suppliers by half to 22,000 and pinched pennies everywhere; it now packages PCs in cheaper cardboard boxes and recycles components from old mainframes.
4	3600	2004	Raytheon increased its missile production by revamping its whole manufacturing system. Suppliers also cooperated. Instead of having a part bubble-wrapped and then taped into a box for shipment, Raytheon devised reusable containers with precut padded casings, simplifying the packing process. Once the company received a parts shipment, workers could empty it in a matter of minutes and return the casing to the supplier for a refill.
5	3861	2001	Eastman Kodak Co., and Fuji Photo Film Co., have revolutionized photography. Their single-use cameras are rebuilt as many as 10 times after customers drop them off to be developed. This recycling trend is known as re-manufacturing.
6	4213	1998	Roadway is undertaking a fleet replacement program. Its linehaul power fleet is almost nine years old, with most of the tractors having been reengined once. That's still bordering on the antique.
7	4953	1997	Amoco lubricants has a new used oil service program operated by Safety-Kleen as an independent contractor.
8	4953	1997	WMI plans to build the Williamsburg bridge in NYC out of recycled concrete and metal reinforcement bars.
9	5812	1996	Au bon Pain heats water by using the exhaust of air conditioner.
10	6282	1993	As many as 70 of 110 steps to register a new client were redundant at IDS before process re-design. Only 30% of planners remain.
11	7999	2004	Harrah's casino company doesn't spend on broadcast and print ads to coax families and young professionals to sojourn on the Strip. The company instead has set out to change the reason that customers come to its casinos and to persuade existing customers to up their usage levels. Harrah's paid for the 35th annual Poker World Series, continually broadcast on ESPN. Each of the 13,000 poker players who entered the World Series filled out a form at the Rio the night before the tournament began; the information went straight into Harrah's database of 9,300 people, targets of telemarketing and direct-mail blitzes. Harrah's showgirls appeared outside the main poker room luring spectators to casinos by offering free tickets to comedy shows and comps for food. Discounts on rooms at the Rio and Harrah's kept both places booked solid through the last night of the tournament.

<<Return to Reduce Unique ICDs in Process