Why Do Business Outputs Vary?

It is indeed true that the outputs of the business vary depending on the technology used, competition faced, and resources used. The different combination of these inputs makes the output vary as well. Irrespective of the size of the company, these varying inputs makes the output different as well. As mentioned, truly, competition is the most important factor which makes the companies uses their resources differently to get an advantage over their competitors. Increased competition as compared to no competition makes the companies look for improvement, innovation, and constant variation in their products and services. The change in these business inputs varies the business output. You are right that the business output can be in the form of success or failure. The effectiveness of the variation in the business inputs can be tested through changes in the common and special causes. The use of statistical tools can aid in the testing of common causes, through variations like poor training of personnel, errors in designs, and procedures. The special causes cannot be tested by the lack of any fundamental resource.

It is a good perspective of the variation of the output. Evidently, the involvement of the humans in the input makes the consistency of the output nearly impossible. The skill of each human is different. Subsequently, dependent on the skills utilized in the form of human resource, machine operators, and technology operators, the business output cannot be the same as well. I agree with you that the quality and the quantity of the products can be made through the constant use of machinery; however, the operators of the machines are still dependent on the human skills. For the testing of the common causes and special causes of variations, several methods can be used. You are absolutely right in saying that the special causes are unforeseen and unpredictable barriers or changes in the normal production routine. The coping of the companies to these inputs depends on their stability and proactive mechanisms. The variation in the common causes is predictable and shows the operational strengths.