V1:    The Principle of Beneficial Variability
  • Variability can create economic value

V2:    The Principle of Asymmetric Payoffs
  • payoff asymmetries enable variability to create economic value

V3:    The Principle of Optimum Variability
  • Variability should neither be minimized or maximized

V4:    The Principle of Optimum Failure Rate
  • Fifty percent failure rate is usually optimum for generating information

V5:    The Principle of Variability Pooling
  • Overall variation decreases when uncorrelated random tasks are combined

V6:    The Principle of Short-Term Forecasting
  • Forecasting becomes exponentially easier at short time-horizons

V7:    The Principle of Small Experiments
  • Many small experiments produce less variation than one big one

V8:    The Repetition Principle
  • Repetition reduces variation

V9:    The Reuse Principle
  • Reuse reduces variability

V10:    The Principle of Negative Covariance
  • We can reduce variance by applying a counterbalancing effect

V11:    The Buffer Principle
  • Buffers trade money for variability reduction

V12:    The Principle of Variability Consequence
  • Reducing consequences is usually the best way to reduce the cost of variability

V13:    The Nonlinearity Principle
  • Operate in the linear range of system performance

V14:    The Principle of Variability Substitution
  • Substitute cheap variability for expensive variability

V15:    The Principle of Iteration Speed
  • It is usually better to improve iteration speed than defect rate

V16:    The Principle of Variability Displacement
  • Move variability to the process stage where its cost is lowest