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

Use RFID technology to:
Locate items

No.	Industry SIC	Year	Notes
1	3711	2005	IBM is using radio frequency identification transmitters, also known as smart tags, to help an automaker add custom accessories to its vehicles. IBM teamed up with WhereNet, a privately held maker of wireless technology, for the project. The pentagon already uses RFID to track military stores. Wal-Mart Stores uses the technology to keep track of inventory.
2	5331	2004	To increase its dominance in distribution, Wal-Mart is spearheading an effort to implement radio-frequency identification technology, which could sharply cut distribution costs and potentially save the company billions of dollars.
3	5331	2006	With $30 billion in theft, there's a revolution in surveillance systems. Soon stores may replace EAS tags altogether with RFID tags that offer a more precise and inconspicuous way of tracking items on a sales floor. The tags communicate with a handheld device, telling workers the exact location of a given item. Retail giants like Wal-Mart and Target are big advocates of RFID technology, but for now use them mostly to monitor inventory. Cost is one reason for holding back. Tags run from 7-20 cents a piece, based on quantity. Many companies are waiting for a 5 cent tag before investing in the technology.
4	5331	2006	Wal-Mart is pushing the use of radio frequency identification (RFID) technology in its stores and on its suppliers. These tags are increasingly used in retail settings to track products as they move from factory to store. RFID data can be used to predict consumer demand, lower suppliers' labor costs, and reduce out-of-stock incidents.

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