Deciding on reasonable tolerances
Deciding on reasonable tolerances has a lot to do with the scale and nature of your operation.
If you're an eight-year-old kid running a lemonade stand on a summer weekend, you can get away with very loose tolerances on product quality, customer experience, and all the rest.
If you're running a nuclear reactor, then you probably need a little more attention to detail.
Chances are your organization is somewhere in between.
If you're spotting flaws in your systems, ask yourself how much of that kind of problem you're willing to accept. It's probably more than 0% and less than 100%.
If you can measure, or even estimate, the frequency and the impact of those flaws, then you're in a good position to start taking action.
There's nothing wrong with just going by feel. But measuring and monitoring can make it a lot easier to take specific corrective action when you want to.
All the best,
A.