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Effects of variation on operational excellence

Using the Wheeler text as a framework, explain the effects of variation on operational excellence. Include, where applicable, examples from past experience or research, differing opinions on metrics (i.e. Deming vs Wheeler), practical application, viability of certain metrics or any other point of view you have developed through your experience. Not all of the topics listed need be included. 3 pages please!

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Wheeler's text says that the effects of variables on operational excellence need to be looked at and interpreted in a holistic manner. Data needs to be interpreted by looking at the patterns and not at individual points. If there is data about performance measures, it is necessary to watch for patterns in the data and not focus on individual points. Consider the performance of the machining department at a factory. You observe that during the third quarter this year, there was 15 percent lower production. Then you observe the data for last ten years and observe that during the third quarter every year there is a decline in performance during the third quarter by between 10 and 15 percent. Once you observe the pattern, you find out that the performance of the machining department is lower during this period because during this period there is the largest number of changes in machining specifications. The machining department should not be blamed for lower production. It is the change in specifications that slows down production every year. The observation of yearly pattern was important to identify the cause of adverse variation. Another area in which Wheeler's observations are relevant is the data related to stock-prices. The investors ...

Solution Summary

This solution explains the impact of changes in data on operational excellence. The sources used are also included in the solution.