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Understanding Variation

Activities as varied as answering customers’ questions, preparing invoices, manufacturing products, delivering services, powering offices and factories, and even gaining new business can all be understood as “processes”. A fundamental property of all but the most trivial of processes is that their outputs vary, and such variation is usually troublesome. The foundation of Dr W Edwards Deming’s guidance on process improvement was the understanding of that variation, with the aim of reducing it and thus making the process more reliable and predictable.

Process behavior charts are an essential aid. They are widely used in manufacturing, though oftentimes not in the way that Dr Deming (and indeed their creator, Dr Walter A Shewhart) recommended. In the service industries they are still little used, which itself explains much of the current difference between manufacturing and service quality. “Improvements” that are based merely on opinion or “gut feel” stand on thin ice. Charting process performance and important related factors—and knowing how to interpret those charts—is the springboard for process improvement. The process behavior chart is the “voice of the process”, telling us both (i) what the process is currently doing and (ii) what the process is capable of doing—which may be very different.

This article comprises a main discussion on Understanding Variation and three links which provide additional practical information.

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