When do financial tools help?
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At a recent meeting, one of your coworkers stated that "Using the right analysis tool will compensate for inexperienced managers."
How would you reply to your coworker? Consider the following items in your discussion:
1. Do the tools help only in certain situations such as routine, daily, or rather mundane decisions, like cost controls, quality controls, or staffing questions (in term of number of people needed)?
2. How can analysis tools help the finance or accounting arms of a company more so than operations managers? (For example, do computers really think? Do they learn from their mistakes? Can they manipulate or change their environment?)
3. What happens if the data entered are wrong?
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Solution Summary
Your response is 411 words and discusses input errors from GE, why there are more tools in finance work, and what types of tasks generally have tools for them.
Solution Preview
Your response is 411 words and discusses input errors from GE, why there are more tools in finance work, and what types of tasks generally have tools for them.
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How would you reply to your coworker?
This is a big issue. I worked for a framing company that had a shipping report we used track activity. One day it showed that we shipped 66,666 frames. Heck, we didn't have that many in the warehouse so inventory turned up NEGATIVE! Yikes! Turns out the shipping clerk put something on the keyboard and it entered 6's until the field was full. So, yes, the inputs can be flawed. That is why an experienced manager can usually detect when something is "off" and go look at the data (like we did with the 6's). We ended up putting logic codes around the field (can't be above a certain number, can't be negative, can't be a letter, and so forth) so that it would reject an obvious error. This helps to cut down on bad input but is not fool proof. You still have to ...
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