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.

5. Reduce errors in process

Warnings and advice

No.	Industry SIC	Year	Notes
1	0	1987	Companies w/ strong customer service make outlandish efforts to hire only the right people, to train & motivate them, & to give them the authority necessary to serve customers well.
2	0	1987	The typical factory invests a staggering 20-25% of its operating budget in finding and fixing mistakes. As many as 1/4 of all factory hands in the average factory don't produce anything–they just rework things that weren't done right the first time.
3	0	1988	Authors say that quality can't be built-in unless first designed-in. About 40% of all quality problems can be traced to poor design.
4	0	1989	Writer says that quality, service-oriented companies must give employees the responsibility and authority to deliver a higher level of satisfaction to customers.
5	0	1992	Drucker: When quality management programs stall, shut down programs in businesses where dramatic change in economic performance is needed. Quality management programs yield only incremental improvements. Also, choose a single theme, while still being careful not to see it as an end rather than means.
6	0	2007	The Six Sigma process has been criticized because it has a very low tolerance for risk because risk increases variation. As a result, companies are reluctant to bring new innovations to market. However, a company can benefit from Six Sigma's emphasis on quality and productivity and creative innovation by separating the more ambitious efforts at innovation from ongoing efforts at continuous improvements. The ambidextrous organization employs independent project teams.
7	0	2008	In an effort to retain customers on the Web, companies are turning to technology tools to monitor their "customer experience." Studies showed that online retailers are allocating 21% of their total 2008 marketing budgets to online customer retention. Companies spend around $200,000 to $400,000 to buy and implement customer-oriented software. They say that the technology results in a 10% to 20% reduction in customer calls to companies' call centers.
8	2000	2004	In studying the trade off between service quality and costs, the logistics costs of the high performers were 25% lower and they moved goods four times faster out of inventory. They had better quality ratings and delivery times on the service side. What is obvious is that the best companies refuse to bow to the trade-off: they have informal contacts with customers and partners which serve to bypass slow formal lines of communication through companies' buyers and sales staff while also allowing market knowledge to be acquired. They also participate with their customers in capacity planning.
9	2834	2006	After a heart drug debacle, Pfizer Inc. is reassessing the way it bets on unproven technology. It's going to overhaul the process of licensing and co-developing products invented by other drug companies. For starters, it's going to shatter the barriers that have prevented several proud Pfizer units from functioning as a team, unclogging the communication lines and allowing executives to spot and nix problems early on. Pfizer is also going to closely monitor what Pfizer's competitors, large and small, are doing in the same treatment areas. It will broaden the definition of collaboration beyond mergers and licensing to include co-promotion deals, equity investments, and other options.
10	3600	2004	Raytheon increased its missile production by revamping its whole manufacturing system. Going back to the lean-production playbook, it distilled its assembly process down to the barest value-added components and rooted out waste – time spent searching for misplaced items and moving materials around the plant. It solicited suggestions from workers and experimented with new solutions such as an assembly line built by employees. It eventually increased inventory turns 400% and reduced the cost per missile by 40%.
11	3711	2002	The plants that have the highest quality are also the ones that are the most productive. That's because a good manufacturing process means guaranteeing quality at each point.
12	5411	1999	Retailers seek manufacturers with proven expertise in product development and sophisticated production processes. Manufacturers able to meet those requirements are offered supply agreements at much higher margins.
13	5731	2008	Retailers and manufacturers are taking new steps to stem the tide of product returns. Last year, the U.S. electronics industry spent about $13.8 billion to re-box, restock, and resell returned products. Only about 5% of returns were because a product was truly defective. Defects aren't even in the top three reasons for returns. Most consumers give up on products for other reasons, such as the device being too confusing to use.
14	5731	2008	Retailers and manufacturers are taking new steps to stem the tide of product returns. Best Buy Co. and other retailers have set up consumer concierge services, sometimes for a fee, to resolve complaints before customers have a chance to return the product.
15	5961	1997	DM Management's more targeted circulation strategy has translated into higher page counts, higher average order sizes, and higher response rates, all on fewer mailings.
16	7372	2008	Outstart, an online technologies provider, allows ExactTarget's sales force to post and answer questions about the software company's products and procedures. Frontline employees often have real-world experience that training-support staff can't offer, thus getting the information from other employees is a good solution.
17	8062	2006	Research has found that many preventable hospital incidents occur during handoffs. Britain's largest children's hospital borrowed techniques from Ferrari pit crews to ensure that the transfer of patients from one section to another is smooth. A team met with Ferrari managers to analyze the process and ask for advice on improvements. After the process was changed, it was found that technical errors and information handover omissions fell dramatically. The process was also slightly quicker and problems were identified more efficiently.

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