Understanding Variation

Variation is inherent in everything that we do. We define variation as: a change or difference in condition, amount, or level, typically with certain limits and/or a different or distinct form or version of something.

Let me explain it this way. Suppose you decided to collect data on how long it took you to drive to work each day within the following limitations:

• Leave the house at the same time each day
• Drive the same route to work each day
• Maintain the same vehicle speed to work each day

After 1 week of collecting data, you would have variation in the amount of time it took you to drive to work each day. Why?

1. Because you speed would vary no matter how hard your tried to maintain it.
2. There would be different amounts of traffic each day
3. There could be unanticipated traffic delays
4. You would not leave the house at the same time each day now matter how hard you tried to do so

As mentioned earlier this type of variation is inherent in everything that we do.

Let's look a classroom temperature for a new scenario. The ideal temperature to have in a classroom for effective and efficient learning is 68 degrees. If the temperature increases to 69 or to 67, it is virtually undetectable by our bodies; however, if the temperature changes to 78 or to 58, most everyone in the classroom will be able to detect the change...

...so, using 58 degrees and 78 degrees as our specifications, we could say in this scenario as long as we keep the temperature variation within these specs we are in good shape. And, while that range would be acceptable to all of us, we all also know that the closer we can stay to 68 degrees the better we all are.

Therefore, there is a loss of functionality as we drift away from the target. This concept is called The Taguchi Loss Function and that functional loss can be financially measured.

If we someone find a way to reduce or remove the variation then the functionality is going to experience less loss and supposedly our perceived quality will improve.

What if we can create a situation where the temperature varies no more than 1 degree on either side? Would you want to be a student in that kind of environment? Would you want to teach in that type of environment? Would you want to manage that type of environment?

This is what is referred to as Systems Thinking. We must look at the way work gets done as a System that has variation and spend our time removing or reducing the variation so that our product or outcome increases in quality which increases value and wealth.

In order to do this, we must change the way we look at work.