
Performance on Purpose • 163
have learned that cost goes up by 20 to 35% per unit every time variety
doubles,
12
so it creates a need to set up as oen as variety dictates and
process one at a time. e fact that the 2013 Global Electronics Forum in
Shanghai featured 22,000 new products
13
means today’s businesses need
to be built to handle ever-increasing variety. We can no longer compete
with old thoughtware based on an industrial age that operated on an each-
discrete-function, eciency-is-paramount model.
ere is a widening chasm between what our current management
models can solve and what they need to solve, especially when we
don’t know ...