Natural Laws in Economics, Principia and Lean Six Sigma


Isaac Newton in his third book the Pricipia the "System of the world", describes the four rules of reasoning and demonstrates that the principle of gravity is in agreement with the phenomena. Newton does not assign a cause, and concludes that "to us it is enough that gravity exists". Newton's demonstration was based on induction. Adam Smith took the concept of nature as a law bound system of the matter in motion and in his model he represented society as a collection of individuals pursuing their self-interest in an economic order governed by the laws of supply and demand.

If supply and demand will work, then we will have a wider diversification of the world markets rather than a concentration of products within certain geographical areas. Adam Smith wrote "a stock of goods of different kinds, therefore, must be stored up somewhere sufficient to maintain him, and to supply him with the materials and tools of his work till such time, at least, as both these events can be brought about. A weaver cannot apply himself entirely to his peculiar business, unless there is beforehand stored up somewhere, either in his own possession or in that of some other person, a stock sufficient to maintain him, and to supply him with the materials and tools of his work, till he has not only completed, but sold his web. This accumulation must, evidently, be previous to his applying his industry for so long a time to such a peculiar business."
Lean Six Sigma applies the concept of supply and demand through its pull and push system and determines the volume of products/services from a client demand perspective. Because each person is different the services and products should be produced based on an individualized approach rather than collectivism. Once the services and products are diversified based on client's will, we can then apply and close the loopholes between Newton and Smith.

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