Slide 22 of 54

How can you tell how successfully the Supply System is meeting the Need?

The actual output, as measured against each of the critical success factors, will continually vary over time. It is this Variance that makes the system, apparently randomly, produce a product or service that is unacceptable to the customer or creates unnecessary costs.

The “variance” is a property of the supply system and indicates how often the system will fail in the future.