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 Capital ICDs:
Use existing networks or facilities

No.	Industry SIC	Year	Notes
1	0	2007	Online tools from Google, Yahoo, Microsoft and eBay allow small businesses to network employees, sell goods and manage their business without having a brick-and-mortar operation or expensive equipment. Google Apps functions like a company's internal computer network. Users can share documents and calendars, host websites, email and massage. The basic version is free and the premier model, which includes virtual conference room, storage space and advanced tools costs $50 per employee annually.
2	2752	2006	VistaPrint now dominates the online printing sector with its large fan base. Besides cheap labor, VistaPrint saves money by running a Web-only operation that doesn't require big investment in physical locales. Lower costs mean lower prices – and low prices are a big reason VistaPrint's customer base continues to swell. The Web site averages 3.5 million unique hits a month. Its nearest competition fields only 1 million unique visitors a quarter. VistaPrint's third-quarter revenue rose 66% from a year earlier to $41.6 million. New orders moved up 60% to 1.3 million.
3	3577	2002	Not having to install cable to every desk will save money, so for a new office setup wireless makes sense, especially for small to midsized businesses. These businesses can use wireless for internal communication.
4	4813	1997	AT&T has developed "Project Angel" which is a radio technology intended to let AT&T provide local telephone service and high-speed Internet access without having to run a wire to anybody's house.
5	5122	2003	SureScript plans to use existing online connections for its transaction engine. SureScript says makers of health-claim and bill-paying software already have these electronic connections.
6	5812	2001	Morrison Management is able to keep its capital costs down. It is a low-cash investment and a high-return business. The company is basically providing management services in someone else's facility.
7	6211	1996	Internet brokers keep their overhead low by having no brokers and few offices, w/ the Internet allowing customers to trade on weekends and after work when brokers aren't available.
8	7372	2002	Since computing capacity already existed on most factory floors, Invensys were able to cleverly link automation with accounting. They did so by inserting dynamic performance measures(DPM) software formulas, or algorithms, directly into computer systems already connected to the manufacturing process via sensors that measure process flows, fluid levels, temperatures, pressures, and other variables.
9	7375	2006	3 a.m. Labs uses free and low prices to compete with big firms like Citrix. 3am Labs has a handful of patents for managing network traffic. The technology makes better use of users' own Internet connections, rather than routing everything through 3am Labs' network. That means 3am Labs can offer the service much cheaper than rivals and treat the free version as a marketing tool. In that respect, each new user costs less than $5 to acquire, a sum that's easily recouped by the paid services. By giving it away, it's getting awareness in a way that's much more cost-effective than any other way.
10	7832	1986	Wometco has been converting many of its single-screen movie theaters into multiple screens. Rent stays the same, but revenue goes up.
11	8299	2005	Despite ongoing investigations of ITT Educational Services, the for-profit educator has remained on track. In 2004, student enrollment rose 14% from a year earlier. The company has diversified its product line, with a series of bachelor degree programs. With the difficult tech market, the company has branched out beyond tech jobs, such as associate and bachelor degrees in criminal justice and business. A new 2+1 hybrid program allows students to go to class two days on site and one day online, increasing capacity utilization at ITT's facilities.
12	8742	2006	Consulting company, Accenture Ltd., is a virtual company run by executives on the fly. Technology helps keep the virtual company on track. Every day, Accenture employees log onto the company's internal Web site to record where they are working. Documents and financial data are shared through Accenture's internal Web sites. When the executives want to see, as well as hear, each other, videoconferences are conducted.
13	8742	2006	Consulting company, Accenture Ltd., is a virtual company run by executives on the fly. Benefits of this virtual company include no overhead costs of a headquarters, which Accenture's executives say would be steeper than their extra travel costs. And spending time with clients cements relationships. Nearly 85% of the firm's 100 largest accounts have been Accenture clients for 10 years or more. Executives say their frequent contact with lower-level employees working with clients is another plus.
14	8999	1997	Web shopping sites have a built in pricing advantage over brick and mortar stores because they do not have a physical store front and labor intensive staffing.

<<Return to Reduce Unique ICDs in Process