Walk a variance to root cause
Investigate a cost variance by splitting the driver and asking for root cause before corrective action.
Unfavorable labor efficiency The report says labor efficiency is unfavorable by $38,500, but the process evidence points to press jams. If the variance becomes blame too early, the real cause survives into next month. Variance to cause Split -> Observe -> Ask why -> Act Use the cost report to find the signal, then use process evidence to find the controllable cause. Blame Labor variance means crew problem The fix targets the system, not the report label. A variance name is not a root cause. 01 Split 02 Observe 03 Act Decision 1 The variance formula points to excess labor…
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