ABSTRACT

The entry addresses how the demand‐driven supply chain can lead to lower variability and a three‐phase process for migrating to it. The production cell is another way to address variability, and the impacts are described. Other approaches described include lean, postponement, and Demand Flow (a trademark of the John Costanza Institute of Technology). The entry describes the principles underlying six sigma, an important tool for cost reduction in factories gained through removing process variation.