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.

7. Standardize ICDs

Warnings and advice

No.	Industry SIC	Year	Notes
1	0	1988	Single sourcing improves communication with suppliers, since the requirements for a given part have to communicated to just one supplier. Single-source purchasing also provides administrative efficiencies from dealing with fewer suppliers.
2	0	1988	Single-source purchasing allows greater flexibility in altering production schedules in response to shifts in demand. It is easier to coordinate a single supplier's production schedule with yours.
3	3523	1986	Deere has become somewhat disillusioned with its flexible manufacturing system. It found itself paying for the ability to produce many different parts when all it needed was a few. Now, Deere is building simpler and less costly manufacturing cells–a series of machines committed not to endless diversity, but to families of similar parts.
4	3571	2006	Hewlett-Packard is making sweeping changes in the way of HP operations. Making a Wal-Mart-style data warehouse could help HP make headway on its most vexing problem in recent years: how to capitalize on its vast breadth. While HP sells everything from $10 ink cartridges to multimillion-dollar supercomputers, the company has operated more like a conglomerate of separate companies than a one-stop tech superstore. If all the information were integrated, it would enable HP to know exact information on sales in specific places and who its customers are.
5	3711	1989	Chrysler has taken a conservative approach to its Imperial (high price point) styling, partly because it shares many parts and features with the boxy New Yorker.
6	3711	1999	Ford bought Jaguar in 1989 and it planned to share platforms between Jaguar and Lincoln. The result of this was hundreds of millions of dollars in loss for Ford during the years of harmonization.
7	3711	2004	Inflexibility in a manufacturing line can lead to missed opportunities. A case in point is Chrysler's PT Cruiser. Based on the Neon compact car, the PT cruiser was a big hit in the 2000 and 2001 model years; demand quickly exceeded the capacity of the Mexican plant where it was built. Chrysler was unable to shift overflow production to its Neon plant in Illinois (which was operating below capacity) because planners did not make the Illinois paint shop tall enough for the PT Cruiser, which is a few inches higher than the Neon.
8	4512	2004	As a result of not delivering the core objectives Continental failed to get the kind of utilization from its airplanes that lead to Southwest's low cost structures. For example, Continental was unable to replace a canceled flight with another plane because, unlike Southwest's all Boeing 737 fleet, Continental had 16 different types of planes. Further, Continental's maintenance staff did not have the in-depth expertise of Southwest maintenance staff because Continental's maintenance had to understand the mechanical problems and spare parts requirements of 16 different airplanes.
9	6300	2003	JPF had given employees considerable freedom in managing their work. But by doing so, the company had made it difficult for other workers to fill in when there were absences or transfers. The lean team insisted that files be stored alphabetically and in the same drawer at each workstation
10	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. However, not all companies will embrace such an idea. One deterrent is concern about the potential liabilities of misinformation slipping into the work force or employees using the system to post negative comments about other works.

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