Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sun Jan 18, 2009 6:39 pm Post subject: Luck and Management
In October 2008 a business grossed $115K. The next month, sales were $90K. Management was alarmed by the almost 23% drop in sales. All sorts of things transpired, we have to get those sales back! Employees were reprimanded for not doing their share. If this continues, people may have to loose their jobs!
Many people have experienced such foolishness. There is not enough data to begin to draw such a conclusion. If the company operates a five-day week, October has 23 work days. November has 20. Thanksgiving and the Friday after are often holidays and the store is closed. In fact the company earned $5,000 per day in both months, there was no change in sales.
Superstitious management has created a crisis and fear for no reason. Nervous employees start looking for another job. Next month the company is short handed and loses far more sales. Dr. Deming encouraged managers to gain a working knowledge of statistics.
Making better decisions is not a matter of luck. It’s a matter of understanding and using data properly. In our More Information category, registered users can find a great deal more information. Statistical Process Control (SPC) is not difficult to learn or apply. Better decisions produce better outcomes. As Dr. Deming urged in Point Fourteen, Take action to accomplish the transformation.
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