{"id":437,"date":"2007-11-01T05:45:04","date_gmt":"2007-11-01T12:45:04","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/437\/the-variability-tree"},"modified":"2014-10-09T16:58:23","modified_gmt":"2014-10-09T21:58:23","slug":"the-variability-tree","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/the-variability-tree\/437\/","title":{"rendered":"Impact of Variability on Process Performance and the Queue"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>All processes are subject to some variability.\u00a0 More common explanations of variability describes variability as either <a title=\"common cause or special cause variation\" href=\"https:\/\/staging.opexlearning.com\/resources\/statistical-process-control-why-you-should-care\/241\/\">Common-Cause or Special-Cause<\/a>.\u00a0 The former is easiest explained as expected variation within a process that is produced by the process itself.\u00a0 The latter, on the hand, is variation that is produced by the process by is assignable to some outside force. And this isn&#8217;t just theory either. There are very real applications where variation is a key, such as the <a title=\"zipcar penalty fee and variation effects\" href=\"https:\/\/staging.opexlearning.com\/resources\/zipcar-customer-experience-variability-utilization-queueing\/9176\/\">Zipcar Penalty Fee<\/a> issue.<\/p>\n<p>From a <a title=\"queueing theory\" href=\"https:\/\/staging.opexlearning.com\/resources\/queueing-theory\/\">Queueing Theory<\/a> perspective, another way to think of variation is by stratifying variation based on predictable and unpredictable.\u00a0 But, before we go there, let&#8217;s revisit what <a title=\"queueing theory\" href=\"https:\/\/staging.opexlearning.com\/resources\/queueing-theory\/\">Queueing<\/a> is all about.<\/p>\n<p>All processes involve inputs, a server, and outputs. This flow of events can be approximated with the picture below:<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10169 \" title=\"waiting-line-design\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/waiting-line-design.jpg\" alt=\"waiting line design\" width=\"724\" height=\"333\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/waiting-line-design.jpg 500w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/waiting-line-design-300x138.jpg 300w\" sizes=\"(max-width: 724px) 100vw, 724px\" \/><\/p>\n<p>The picture above is simplified, but several points of variability can enter this simple system.\u00a0 For example, we take our kids to Picture People, a place we you can have your pictures takes (highly recommended for high quality pictures).\u00a0 We enter their system, wait, pictures are taken, then we leave.\u00a0 All business have either documented &#8220;busy times&#8221; and it&#8217;s by hunch &#8212; and the hunch is actually correct.\u00a0 This point is important.<\/p>\n<p>Below is a Variability Tree, showing Predictable and Unpredictable Variability. This distinction is important because managing either type of variability will be different:<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10168 \" title=\"variation-variability-tree\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/variation-variability-tree.jpg\" alt=\"variability tree, variation\" width=\"719\" height=\"499\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/variation-variability-tree.jpg 500w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/variation-variability-tree-300x208.jpg 300w\" sizes=\"(max-width: 719px) 100vw, 719px\" \/><\/p>\n<p>Most systems will show evidence of variability, as explained in the picture above; some will show both types, but typically one type will dominate.<\/p>\n<p>For processes where arrivals are bursty\u009d or unpredictable, then the tools of <a title=\"queueing theory\" href=\"https:\/\/staging.opexlearning.com\/resources\/queueing-theory\/\">Queueing Theory<\/a> makes sense to apply; but for processes where the arrivals are predictable or seasonal, then it might make sense to apply the tools of Build-Up Diagrams.<\/p>\n<h2><strong>How To Manage Variability<\/strong><\/h2>\n<p>When reducing or eliminating variation is not the answer, then managing it is the next best thing to do.\u00a0 Below is a simple table that shows the impact of variability on a system.\u00a0 I built this diagram quickly, but you can modify this table for your particular process; I&#8217;ve made it general enough so that you can apply it to your particular situation:<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10170 aligncenter\" title=\"impact-of-variation-on-business\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/impact-of-variation-on-business.jpg\" alt=\"variation and impact on operations\" width=\"642\" height=\"442\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/impact-of-variation-on-business.jpg 500w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2007\/11\/impact-of-variation-on-business-300x206.jpg 300w\" sizes=\"(max-width: 642px) 100vw, 642px\" \/><\/p>\n<p>I&#8217;m using the term Inventory\u009d in a generic way here \u201d it can mean people (patients) or actual things.\u00a0 For example, when the Waiting Room Size is bigger, then output can increase but there&#8217;s also an increase in the amount of patients in the room (patients = inventory).\u00a0 Use this trade-off table as it applies to your process.<\/p>\n<h2><strong>It&#8217;s About the Customer<br \/>\n<\/strong><\/h2>\n<p>It&#8217;s important to always remember that it is Variation that people feel, not the average.\u00a0 Managing the variability in your process takes work and some knowledge of tools that are pragmatic and helpful.\u00a0 The average\u009d is an inadequate measure and is not descriptive of what the customer is feeling.\u00a0 If the customer is to benefit, we must take action against variation through reducing it or eliminating it and then managing it.<\/p>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>All processes are subject to some variability.\u00a0 More common explanations of variability describes variability as either Common-Cause or Special-Cause.\u00a0 The former is easiest explained as expected variation within a process that is produced by the process itself.\u00a0 The latter, on the hand, is variation that is produced by the process by is assignable to some [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":10169,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[29],"tags":[641,643,642,640],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - 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