Reduce Unique ICDs in Process

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.

Advisories: These examples contain warnings and advice that should be considered as you are using the approach to cost improvement described below.

Examples: These are brief examples for each cost management concept, describing a situation where the concept is used or implied. Use these supporting examples in order to expand your range of ideas. These examples are neither mutually exclusive nor collectively exhaustive. There may be other illustrations of the concept in the outline.

We offer you both a short version and a long version of some of these cost management concepts. We have enough examples of some of these concepts to expand the concept into more specific concepts with their examples. Use the short version to complete your innovation in less time. Use the long version for more in-depth innovation.

A. Redesign the product

Reduce ICDs by redesigning the product or the components of the product. Any redesign of the product or its components implies that the resulting product, after the redesign, would be acceptable to customers.

1. Warnings and advice Advisories>>

2. Reduce Performance Standards Short Examples>> Long Examples>>

3. Reduce or change components Short Examples>> Long Examples>>

B. Redesign the process of producing the ICD or Output

Change the process used to produce the ICD or Output to eliminate activities.

1. Warnings and advice Advisories>>

2. Shift ICD to others outside the company with no payment for their assistance Short Examples>> Long Examples>>

3. Automate an ICD Short Examples>> Long Examples>>

4. Reduce movement of an Input (People, Purchases or Capital) Short Examples>> Long Examples>>

5. Reduce errors in process Short Examples>> Long Examples>>

6. Reduce use of Purchases and Capital ICDs Short Examples>> Long Examples>>

7. Standardize ICDs Short Examples>> Long Examples>>

8. Accept risk of lower profits Short Examples>> Long Examples>>

9. Other Examples>>

C. Eliminate customer activities with low value to the customer

Reduce ICDs by eliminating activities for which customers either will not pay or will not pay enough to cover their costs.

1. Warnings and advice Advisories>>

2. Products and services Short Examples>> Long Examples>>

3. Businesses Short Examples>> Long Examples>>

4. Customers Short Examples>> Long Examples>>

<<Return to Improve/Costs Innovation Ideas

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