decission making
From my readings I have created the following spreadsheet's which should help you in your decision making processes :
1) I am a strong believer in Dr. Demings teachings about businesses being a process. From D. Wheelers book "Understanding Variation" (SPC Press 2000) I took the structure and formulas to create a process analysis spreadsheet [76 KB]
which helps seperating special cause variation from common cause variation.
If you are looking for more check out the link to the "quality section" from my main page.
Any process shows special cause variation if :
- a single observation is outside the process limits or
- 3 out of 4 consecutive observations are situated closer to one process limit than to the process average or
- 8 consecutive observations are situated on one side of the process average
valuing worksheet
The following valuing worksheet [22 KB]
supports decision making based on changes in throughput (=T), operating expenses (=OE) and capital employed (=I) and is based on throughput accounting principles.