The variety reduction model is concentrated on special teams or groups. The whole procedure of the variety reduction process is done by recruiting a team of a few people to study the problem. A simple procedure is depicted below:
In the above diagram standardization method is used in two kinds of industry, generic technology is used, and product-level standardization is related to system-level standardization, which can eliminate the unnecessary recurring costs.
The team finds out the problem, reports the problem, and draws some procedures for implementing the corrective steps. The assigned team systematically scrutinizes the identical products with various code numbers whose sales are low. When the problems are found on a certain product, these are removed by considering the profitability. The salient techniques of variety reduction are specialization, standardization, and simplification. Besides the standardization several analyses are done in the following steps.
|Outlining a table to list the causes and frequencies as percentage form.|
|Positioning the problems in the descending in order of significance of the causes.|
|Adding accumulated percentages from the column of the table.|
|Depict the causes on x- and accumulated percentage on y-axis.|
|Joining the points to construct a curve.|
|Plotting a bar graph on x- and frequencies on y-axis.|
|Depicting line in the 80% into y-axis parallel to x-axis.|
|Dropping the line in the point of intersection.|