Accounting Crisis Mode --Dickeson

Shot in the Foot

In large measure our bleeding wounds are self-inflicted. We shoot ourselves in the GLA (our left foot) and then in the JCA (right foot) for good measure. Then we hop around screaming that we knew better all along and it would feel much better if we didn't do that.

Come on.

Why don't we demand a statistical model that supports decisions for managing the Five Sisters? Who are these Five Sisters, you ask. The Pleiades? No. They're not a constellation of heavenly bodies. These are the five working capital inventories: A) Cash, B) Raw materials, C) Work in process, D) Finished goods and E) Accounts receivable. We must know the magnitude and the days and hours of dwell-time of each Statistical Sister every week. Do we know them now? Unlikely. But we must know them in order to survive and thrive.

If we can't manage those Five Sisters, then we'd better sell, merge or quit the printing business. Now. Today. "But, Rog, nobody told us about those Five Sisters before." Hey, we're not playing the popular political game of "what did Martha know and when did she know it." We know it now and we're accountable from at least this moment on.

No more whining about how over-capacity has driven prices down. If we have over-capacity, then downsize. Now. Today. Do we know what our capacity is and how much of it we're using? Unlikely.

Do we know the stability and capability of each of our production processes? Unlikely. For years Deming, Shewhart, Goldratt, Ohno and Wheeler have been telling us to listen to the voice of the process. They've shown us the way to provide that data easily, accurately and currently. Prediction is management control. We've just never really been serious about predicting process variance. Let's do it. Now. Today.