Archive for December, 2011

Why always seek to reduce variation?

December 13, 2011

Thanks for asking why we should always seek to reduce variation (after taking the actions mentioned earlier).

Agreed, innovation in revealing and fulfilling yet more customer needs (including the psychological need for expectations to be satisfied) is indeed the key to success in a consumer-driven economy.

So is the design and operation of reliable production processes through mistake-proofing.

Unreliable processes may cause the people involved to increase the amount of work in progress “just in case” something goes wrong with an earlier process (or be idle).

Customers are expected to pay directly for this wasted inventory (and time) up and down the supply chains. The rest of us pay the avoidable environmental costs of waste.

Competitors with reliable processes waste less so they can afford to reduce their prices while making more profit to share with employees, shareholders and as taxpayers.

Competitors with reliable processes may yield more as taxpayers, attract more investment and attract more creative employees for innovation.

Our economy (some of the taxes could be invested in educating and training people for more creative and fulfilling lives) and our environment thereby benefit from reliable processes. .

Hence, we can see a virtuous cycle arising from the widespread design and operation of reliable production processes to result in products that fulfill the needs of paying customers.

Processes with more dependability should be a result of developing and running process-based management systems.

Within these systems people may cost effectively eliminate the “vital few” special and common causes of variation after designing to eliminate causes of nonconformity.

Such is the importance of organizations running reliable processes to result in needed goods and services.