The Corrupting Influence of Variability - Variability Laws
5 important questions on The Corrupting Influence of Variability - Variability Laws
When is a system out of control?
A system is out of control if its variability level is inconsistent with the variation expected or inherent to that system.
What can be the consequence of not investing in variability reduction?
1. Lost throughput
2. Wasted capacity
3. Inflated cycle times
4. larger inventory levels
5. Long lead times and/or poor customer service
How is the law of variability buffering defined? What is the most important implication of this?
Variability in a production system will be buffered by some combination of:
1: Inventory
2: Capacity
3: Time
It implies that there is a choice in how variability will degrade performance.
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Name at least 3 possible benefits (with regard to manufacturing management concepts) if variability is reduced.
For example:
- increased throughput
- less wasted capacity
- smaller cycle times
- smaller inventories
- shorter lead times and/or higher service level
- etc.
What is the role of flexibility for buffers of variability?
A flexible buffer reduces the required amount of buffering.
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