ABSTRACT
We live in a variable world. Managers have to make decisions in an environment subject to variability. Without understanding the nature of variability, managers face the danger of making wrong decisions and mistakes that can be very costly to their organisations. Variation exists in all processes, and reducing variation is the key to improving productivity, quality, and profitability. However, as W. Edwards Deming said, “The central problem in management and in leadership
… is failure to understand the information in variation.” Statistics tells us how to deal with variation, and how to collect and use data so that we can make informed decisions.
