PrinciplesOfProductDevelopmentFlow.ExploitingVariability

Back

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

Back