Compare and contrast the fundamental differences between special-cause variation and common-cause variation. Provide one (1) business process example of each variation to support your response.
“Common cause of variances (also referred to as random causes of variances) would be your normal process of variation; things that we can expect (predictable). Special causes of variances would be something that is very difficult to predict, something unusual” (Fremouw, 2014). One (1) business process example of each variation for instance would be:
(Minitab17, 2016)
Process
Common cause of variation
Special cause of variation
Recording customer contact information
An experienced operator makes an occasional error.
An untrained operator new to the job makes numerous data-entry errors.
Companies that utilize statistical thinking strategies often use control charts and run charts to help provide good illustrations in gaging whether their process is one of stability or instability. If instable, “a common method for brainstorming is to ask questions about why a particular failure occurred to determine the root cause. You can also us a cause-and-effect diagram (also called “fishbone diagram”) to get to the root of the breakdown in the process.
Reference
Fremouw, B. (2014). Project Management Concept #5: Common Causes of Variance vs Special Cause of Variance. Passionate Project Management. Retrieved April 10, 2017 from https://www.youtube.com/watch?v=iYnzIlEVkf8
Minitab17. (2016). Using control charts to detect common-cause variations and special-cause variation. Retrieved April 19, 2017 from http://support.minitab.com/en-us/minitab/17/topic-library/quality-tools/control-charts/basics/using-control-charts-to-