Use to evaluate sources of variation. In Minitab, components of variance are used in ANOVA and Gage R&R.
Variance components assess the amount of variation in the response due to random factors. Random factors have levels that are selected at random; whereas fixed factors have levels that are controlled by the experimenter. For example, you conduct a study on the effect of two levels of pressure on output measured by randomly chosen operators. Pressure is fixed (2 levels); and operator is random. The variance components output lists the estimated variance for the operator and error term.
Variance components assess the amount of variation contributed by each source of measurement error, plus the contribution of part-to-part variability. The sum of the individual variance components equals the total variation. Sources of measurement error are:
Ideally, differences between parts should account for most of the variability; and variability from repeatability and reproducibility should be very small.