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

Standardize procedures in functional costs:
Make/Produce

No.	Industry SIC	Year	Notes
1	1521	2004	Prefabricated building companies are revising their images with custom homes. Detailed drawings and numbered panels are provided for the workers who assemble the homes while all the sections complete with windows are fabricated in Estonia. The cost is 20% less than traditional construction methods and boasts higher quality and fewer defects.
2	3569	1991	In a German machinery company, certain parts were connected to each other by different methods. After discussions with the supplier, the manufacturer decided to standardize connection methods in order to use the same manufacturing process for all parts. The company reduced purchasing costs of the parts by 30%, while decreasing delivery time and improving quality.
3	3711	2004	Toyota's global body line program started in 1996 with trials at a small, labor intensive plant in Vietnam that assembles Camrys. The following year it was installed at a more automated plant in Japan that produces Prius hybrid cars. Since then it has gone to work in France, Britain, and the US. Whether people or robots are doing the welding, the underlying architecture is the same: a single pallet that supports the parts from the inside.
4	3711	2004	In Toyota's new car manufacturing system, the cars are built from inside out. Working in this manner not only simplifies the operation but also increases flexibility, since as many as eight different models can be moved through the same body shop. That makes it easier to produce boutique models, for which total volume is small but profit on each sale is hefty. Since the global body line is almost in place everywhere, Toyota plants building the same car in different countries can promptly share production-line fixes.
5	3861	1992	Xerox started requiring plants to 1)adopt global standards for basic processes that apply to all operations; 2) maintain common business processes but, where necessary, tailor them to local needs; and 3) set site-specific processes for only those systems that must conform to local needs. Over two years, this saved Xerox $20 million.
6	4512	2003	Drawing on the collective expertise of its mechanics, it could develop standard work routines, making use of enhanced tools and fixtures that would substantially increase the efficiency of their wrench time. Simply by eliminating ongoing searches for parts, tools, and paperwork, a carrier may improve the productivity of its repair operations by more than 30%.
7	7372	2004	Product life-cycle management (PLM) software is being embraced as a way of using software to manage a product from dawn to dusk of its life: from creation through development, manufacturing, testing, and then maintenance in the field. In the high-tech industry, where Motorola, Palm, Microsoft, and others have lost sales due to poor manufacturing and supply readiness for a new product launch, PLM allows a "perfect product launch." PLM ensures that cross-functional elements are all in sync: that manufacturing and supplier tooling and processes have been proven out, field-service documentation prepared, and marketing promotions put in place.
8	8062	2007	As the financial and human costs of medical errors become apparent, some hospitals are working to improve their system and reduce costs. Cincinnati Children's implemented strict preoperative procedures to ensure that all safety measures were in place.

<<Return to Reduce Unique ICDs in Process