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Variation
Curious Cat Management Improvement Encyclopedia
Variation - difference in the output of a process (or inputs to a process) over time. Variation consists of common cause variation, special cause variation and structural variation (and some include tampering).
Shewart provide the control chart as a tool to use when managing processes. The reduction of variation has profound impacts on the reduction of costs and increase in customer satisfaction.
Related Terms:
Common Cause Variation - variation resulting from the system. Every system will have some amount of variation of results. The way to improve common cause variation is to change the system.
Special Cause Variation - variation resulting from a assignable cause. Special causes should be addressed by finding the special cause and taking action. Special Causes can be beneficial, in which case identify the cause and seek to incorporate it in the standard practice.
Structural Variation - trends within the data. They often take the form of seasonal variation and growth or decline (where the data has, for example, a underlying trend of increasing 4% annually).
Tampering - taking action based on the belief that a common cause is a special cause. The tendancy to take action, often leads to action without reason which causes more problems than it fixes. Dr. Deming stated that most variation (97% plus) was common cause variation not due to special causes. Tampering can also be considered a form of variation.
Out of Control Process (unstable process) - a process not in statistical control. Many Quality and Statistical tools require a stable process and therefore using them when the process is out of control will not provide accurate results.
Stable Process - one in statistical control. Various methods exist to determine whether a process is in statistical control.
Control Chart - chart of data to aid in determining wether a process is in control and to make it easier to spot data that may indicate special causes.
Online Resources:
Understanding Variation by Tom Nolan and Lloyd Provost, May 1990 
Highly recommended. An excellent article to increase your understanding of variation and the impact of that knowledge on management improvement.
Variation Through the Ages by Lloyd Provost and Clifford Norman, Quality Progress, Dec 1990.
Variation, Management and W. Edwards Deming by Brian Joiner and Marie Gaudard, 1990.
The Cornerstone: Theory of Variation - email from Deming Electronic Network archive by Phil Monroe.
Find More Management Resources
Management Dictionary: Affinity Diagram, Cause and Effect Diagram, Common Cause, Control Chart, Cycle Time, PDSA, Poka Yoke, Quality Function Deployment (QFD), Red Bead Experiment,
Root Cause Analysis, Run Chart, Statistical Process Control (SPC), Variation