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.

3. Automate an ICD

Write software to automate a repetitive task: Delivery information to or from user:
Customer orders and questions

No.	Industry SIC	Year	Notes
1	2000	1991	Nabisco now receives 88% of orders electronically. They provided independent food brokers with a computer program that allows them to communicate electronically with a logistics data base in Nabisco's central order processing facility, eliminating the need for faxes, phone calls, and internal hand-offs. Its order processing staff went from 34 to 7.
2	2911	1995	At one Chevron subsidiary, Warren Petroleum, workers were writing purchase orders and invoices by hand and mailing them back and forth to the home office for processing. Now they use new SAP software; managers can instantly find out how much they've spent, who placed what order, when it was processed, and whether it was received.
3	3571	2001	Quanta is reducing its costs through its Taiwan direct shipment service launched for brands like HP. Quanta fills orders received electronically from U.S. brands and then fills the order within five working days for the U.S. and three for Japan.
4	3600	1992	GE says it's halfway to its goal of handling 80% of its business transactions by direct electronic data interchange links. So far, this has eliminated almost 4 million business forms a year at the GE end.
5	3949	1996	Sports Authority invested in computer systems early on to monitor inventory at each store on a daily basis. Orders are automatically transmitted to suppliers, who ship to stores directly. Eliminates need for a distribution center.
6	4213	2002	Schneider's CEO is now extending the business intelligence software across the company. Over 200 customers are tapping into the system through a tool called InterAcc that Schneider created using the BI software. For a small subscription fee, starting at a few cents per invoice, customers get access via the Web to cubes, analysis tools, and portions of Schneider's database so that they can track their own logistics.
7	4513	1995	UPS built customer-service centers around the country because agents needed to look at written records to trace a package or assign a pickup. Today the entire system is computerized, and all agents have access to the same info. So UPS is consolidating into 8-10 locations.
8	4513	1996	AEI has mimicked FedEx's introduction of computer info technology to monitor package status so that it could quickly forward that info to shippers. AEI has spent $200m on its logistics info system.
9	5180	2006	Pepsi Bottling Group Inc. overhauled its supply chain in an effort to reduce product shortages. The new program, which included technology upgrades, revised work schedules, and a renewed focus on customer service went into effect earlier this year. Among the changes: Warehouse workers called "pickers" now wear head-sets and bar-code scanners on their wrists to create "certified pallets" whose contents are almost 100% accurate with what retailers have ordered. A computer program sorts though daily orders and generates an electronic voice instructing workers which drinks to load by hand or with a forklift. Then a worker affixes a printout with a bar code attesting to the accuracy of the pallet.
10	5251	2001	Retailers are constantly looking for better and better technology because of the intense competition and low profit margins they face. Globalization and e-tailing have caused an overcapacity in retailing. Home Depot is responding with an "enterprise nervous system." This would mean that when a customer buys a GE light bulb in Home Depot, GE will know. The new system will track faxes, billing, e-mails, and purchase orders across all platforms used by the stores and suppliers.
11	5411	1999	Webvan has tied these separate functions through a highly technical network, allowing it to track orders throughout the system and ensuring timely delivery of customer orders.
12	5600	1993	Designs' cash registers are tied into an automated inventory system, LeviLink, by which core items are automatically replenished.
13	6021	1996	By polling customers, NationsBank found that service was one of its credit card's draws. So it installed a client-server network called FronTier. It's designed to help customer service reps answer questions faster. Before, reps had to go through 11 screens to process an address change. Now it's done on 1 screen in a 30-second process.
14	6300	2005	Hartford, Travelers and Zurich Financial are among the small business insurance carriers that now use straight-through processing to handle 60 to 80% of their applications submitted online through the carriers' websites.
15	7311	2000	The company established a secure web site so the clients in any time zone could eliminate travel and air express shipments and cut approval times.
16	7375	2003	Through the Web, eBay's citizens have access, 24 hours a day, to every trend, every sale, every new regulation in the eBay world. The system is utterly transparent now.
17	8111	1994	Law firm Sheppard, Mullin improved profits, profitability, and service by having e-mail hook-ups with 25 to 30 clients.

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