Eliminating Variance from the Workplace

Understanding Variance in the Workplace

Grasp the concept of variance in the context of business operations. Variance refers to the degree of discrepancy between standard, planned or expected business performance and the actual outcome.
A high degree of variance can represent inefficiency and inconsistency in business operations, which may negatively affect productivity and profitability.
It’s important to remember that variance can be positive or negative. Positive variance indicates better performance than standard, while negative variance suggests underperformance.

Variance can arise from many sources like changes in market conditions, unpredictable events such as natural disasters, or internal issues such as equipment failure, miscommunication or interruptions in supply chains.
There can also be behavioural or human-factor related issues leading to variance. These might include incompetence, lack of training, or resistance to change.
It’s essential to identify the sources of variance to devise the right strategies for dealing with them.

One of the key methods to eliminate variance includes regular monitoring and controls. Through real-time monitoring of operations, businesses can detect variances early and take corrective actions swiftly.
Continuous training and development of the workforce can reduce variances arising from human errors, while regular servicing and up-gradation of equipment can help eliminate variance related to machinery or equipment.
Establishing good communication channels can also help reduce variance as it significantly reduces misunderstandings and misinterpretations within a team or department.
Implementing Quality Management Systems like ISO 9001 can greatly help in establishing standard procedures, thus minimising variances.

By eliminating variance, a business can ensure consistency and predictability in its performance, which is vital for long-term success and customer satisfaction.
Reducing variance also means saving costs incurred due to waste, rework, and delays, hence boosting the profitability of the firm.
It can also instill customer trust, as customers would appreciate the firm’s ability to deliver consistent quality and meet their expectations consistently.
Finally, less variance leads to a more stable work environment, improving employee morale and productivity.

Regularly review performance reports against pre-set standards or benchmarks, to identify areas of major discrepancies.
Random sampling is another effective technique, where random samples of the firm’s products or services are taken and then compared against the quality standards.
Conduct post-mortems of projects or products that heavily underperformed or exceeded expectations. This can help the firm identify significant factors contributing to the variance and take necessary action.
Implement a feedback system where customers and employees can provide inputs about the quality and areas of improvement. This can provide valuable insights to pinpoint areas of variance.