Required:

For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection. hour is $$8,$ and the cost per pound of materials is $$10.$

c$.$ A product currently requires $6$ moves. By redesigning the manufacturing layout, the number of moves can be reduced from $6$ to $0.$ The cost per move is $$20.$ manufacture. The net effect was to achieve a close to zero$-$defect state and eliminate the need for any inspection activity. component can reduce the average number of components to $6$ components per unit. The cost per component is $$500.$ products so that they all have $4$ components in common. This will reduce the demand for purchasing, receiving, and paying bills. Estimated savings from the reduced demand are $$900,000$ per year.