Why is quality concerned with reducing variation? Because it improves prediction. Managers should be more interested in what is about
to happen than what has happened.
Capability measures tell us what is about to happen - what will
predictably occur next week, next day, next hour and so on.
What is predictable about customer demand, process efficiency, error
rates, time for work to go through a process? What is predictable about individual
performance, team performance or whole division performance? Measures of these things,
plotted in control charts, give managers and workers the means to learn from and improve
performance.
For example, if we know what matters to our customers, we can measure and
improve it using measures of variation.
What matters to customers - are there any 'key
quality characteristics'? It is vital to know what is happening to the customer,
especially on those things by which the customers judge you.
What governs efficiency or revenue?
It is equally vital to know how well processes perform, particularly those
that affect costs and sales.
Capability measures can be whole-process or whole-system
measures.