ABSTRACT
Variation, or randomness, exists in systems. Variation plays a huge role in the ability to complete work on time and ultimately on product cost. Variation can come from varying levels of demand, equipment breakdowns, scrap and rework effects, material issues, employees calling in sick, or any of the dozens of reasons that turn operations managers into fire fighters on any given day of the week. For this very reason, Lean initiatives seek to eliminate, or eradicate, variation. Accounting for the fact that things happen—that randomness cannot be totally eliminate—is not a bad strategy. Building in the correct amount of delay and doing things to strategically mitigate it makes sense.
