Reduce the Units of Input Not Producing Output

Reduce units of Input (I) available but not producing Intermediate Cost Drivers
(ICDs). This action makes Input levels more directly variable with the quantity of the ICD by reducing the amount of the available Input that is wasted or idle. For example, an employee (I) might produce one subassembly (ICD) per day. During that day, the employee spends a total of one hour waiting for parts for the subassembly. If the Company could eliminate that one lost hour of the employee's work day by providing parts in a more timely manner, the Company could reduce the number of employees (I) needed to produce the same subassembly (ICD) by 1/8th.

A. Assist Input in increasing ICDs.

Train employees in efficiency. The company may incur costs to train employees in the expectation that these expenses will result in even greater cost savings through better efficiency.

Provide paid training:
On other specific functional skills

No.	Industry SIC	Year	Notes
1	0	1988	German manufacturers train most employees for 3 1/2 years in a much admired apprenticeship program. So German workers have high productivity.
2	3519	1989	Cummins' truck-driver training is 30% in the classroom and 70% behind-the-wheel. It's much cheaper to teach people in the classroom.
3	3571	1986	Last November, IBM dedicated a multimillion-dollar educational facility focused on manufacturing.
4	3571	1986	To avoid layoffs, in 1985, IBM spent $550 million educating workers – from training secretaries to be technicians to teaching engineers how to keep up. Some 10,000 employees were trained for new jobs. About 7300 changed locations, at a cost to the company of $60,000 each.
5	3585	1992	Carrier plant applicants must complete a grueling six-week course, a selection process that results in a job for only one of every 16 applicants and yields a top-quality work force.
6	3585	1992	Carrier's workers suggested that they themselves install new automation machines. Mgmt agreed, and some workers flew to machine-tool plants to learn how to assemble the equipment. Workers feel a sense of ownership, and the company saved $1 million on installation costs. Plus, workers don't have to wait for maintenance workers to come fix a machine that breaks down.
7	3629	1988	Lincoln Electric sends recruits to welding school to get hands-on training, then are trained in a specialty, with leaders as mentors. Recruits are more loyal than at other companies.
8	3711	1989	Volvo gives its workers 16 weeks' training before they are allowed near a car, and on-the-job orientation lasts 16 months more.
9	3711	2005	Chrysler is working to close cost, efficiency gaps at U.S. plants to compete with the growing number of nonunion factories in North America run by Asian and European rivals. That means training hourly workers to do more jobs and to take more responsibility for eliminating wasted time and motion. Chrysler is looking to follow the example of a Saltillo pickup truck assembly plant in Mexico. The plant has adopted a system of self-directed work teams. About 10 to 12 workers take on a set of tasks and tools, including specified maintenance, quality-control, productivity and safety jobs. Workers rotate among different tasks every few hours. They are encouraged to find ways to cut time and wasted effort, and if they do, those whose jobs become redundant are reassigned. Saltillo's production has increased to about 38 vehicles an hour from 30 without additional hiring and without overtime work.
10	4213	1998	MS Carriers has been doing a good job with new driver training school. They have made significant strides also in penetrating the tough market for owner operators.
11	4522	1997	The company has a comprehensive training program for its pilots, but many of the company's pilots have substantial experience.
12	5812	2004	Buffalo Wild Wings has also changed the way it trains managers so that they are now trained to specialize in one area of the restaurant business-whether it's bar, dining area, or kitchen-rather than focusing on all aspects of the restaurant.
13	7500	1986	Minit-Lube has operations down to a science. Strong, uniform employee training.

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