The measurement of variation reduction

Abstract

In this paper the general concept of ‘variety’ is discussed and its importance is highlighted with respect to economic production and the needs of the market place. A technique is presented with respect to measuring changes in variety within an enterprise and it is demonstrated that a numerical value can be established relating to the degree of variety within a firm at a given point in time. The paper also contains a case study, conducted by the authors in a truck body building company, where the concepts of variety reduction have been applied.