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Value Stream Constraints: Variation

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Analyzing our Value Stream we identify a number of constraints that limit its effective capacity. The most visible constraints are the capacity of the different steps. But there are other, not so obvious, constraints such as the capacity variation of some steps. Process variation has been described as a virus infecting the value stream: it causes chaos and it is often undetected.     Dice Throwing Exercise A bottleneck limits the effective capacity of the whole line. Bottlenecks caused by variation are more subtle and difficult to detect and act upon. Process simulation can help us experience the effects of different types of constraints, try solutions and detect possible side effects. Process simulation helps us understand the value stream dynamic behavior: how variation affects key process metrics such as WIP, Lead time, Throughput, Cycle time, On Time Delivery, etc. Understanding these dynamic effects will enable us to get to the root cause of problems implementing definite solution

Random Variation Vs Trends

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Understanding variation is key to interpret the value stream behavior.  Not all variation is the same. Random Variation Vs Trends: Statistical Process Control     Variation These are some factors which may add variation to the process of cooking a turkey.  Every process has variation. Some causes of variation may be identified and acted upon. We can use two metrics for variation which complement each other: Manual Dice Throwing This simple exercise can help to experience process variation and understand the difference between a process change and inherent process variation. This understanding is key on management decisions to avoid both overreaction and lack of reaction. To run the exercise with actual dice print the form: Exercise: You will need a printed form and 4 dice for each team Throw 4 dice and add the outcomes Record the result in the Run Chart Repeat 50 times Join the dots in the Run Chart with a line Build the Histogram by counting the total number of dots on each group of