In metrics the most honest finding will be that your metrics will have degrees of variation. Understanding where and how those metrics occur, is the key to using your data in a forward thinking strategy. Let’s start with something simple, like toy production. We are going to track some standard variation sources.

Variation Sources

Within Unit Encoding

This variation source occurs when you are measuring output from a single production cycle. Some places that variation is likely to occur are the width of parts, color shading, length of toy etc. Now you can choose to analyze different production cycles on the same day or alternating days, but you will always be comparing samples from the same cycle. A new production sample means a new data point.

Between Unit Encoding

These names are dead giveaways, but I digress! This implies that you are looking at samples from two different production cycles. This is different in that you would want to identify two different samples from different production cycles. The variations you are looking for will give you some clue as to whether the variations are operation influenced or process influenced.

Temporal Encoding

This is the trickiest variation source. This specifically calls for you to compare your variation averages from all of your data points in a single day. So you can theoretically have both within unit variation data and between unit variations data, depending on how specific you need to get.

The key to getting the most out of your data is to understand what it’s telling you. Understanding where the variations are coming from is the first step to getting the most out of your data.