STATS FOR: SHAHIMER
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wk4_written_assignment.docWeek 4 Written Assignment
Analyze this situation by addressing the five questions on the last page of this document:
The “All-too-familiar” Budget Meeting [TRUE STORY!]
The dreaded bi-weekly discussion of the budget is the next meeting in your busy day. Times are “tight” and “accountability” is in the air. Once again, conversational snippets of “It’s not my fault!”, “You have to understand that something happened that we didn’t plan for,” etc. (ad nauseum) permeate the air as well as the predictable promises to “get right on it” (Yawn!).
A manager previously on the “hot seat” for budget performance regarding her paid FTE time (See the recent string of 10 out of 11 periods being above budget?) showed how the last three two-week periods have been below budget. Cries of “Well done” fill the room, so she is asked to share how she did it.
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This particular manager is progressive and a good friend of yours. She has always been one of the best at utilizing resources. After giving her helpful “suggestions” to the room, she sits down and you catch her eye. You give her that “ ‘Whom do you think you are kidding?’ look,” and she smiles and discreetly slides you the following:
This meeting is so “typical” and dreadfully boring, so you sketch individual run charts (time plot with median drawn in) of both total FTE and the variance from budget (Data next page, charts on last page with dialogue questions).
Why is she smiling?
[This data is also attached in two Excel files: “BPChart_budget.xls” is ready to “Load” directly into the BPChart macro, and “Budget_data.xls” is a plain Excel file that can be analyzed either via Excel or QIMacros]
Period FTE Variance from Budget
1/18/98 107.35 -2.320
2/1/98 110.95 0.386
2/15/98 106.97 -3.682
3/1/98 105.98 -3.269
3/15/98 107.49 -2.612
3/29/98 106.37 -2.593
4/12/98 110.41 0.031
4/26/98 102.55 -8.138
5/10/98 105.44 -3.702
5/24/98 106.81 -2.375
6/7/98 106.10 -0.666
6/21/98 111.87 5.207
7/5/98 112.38 5.730
7/19/98 107.32 0.389
8/2/98 109.25 4.734
8/16/98 107.43 0.734
8/30/98 106.48 0.232
9/13/98 109.24 3.182
9/27/98 109.66 2.000
10/11/98 103.31 -6.096
10/25/98 107.10 0.635
11/8/98 109.81 1.790
11/22/98 106.96 -0.810
12/6/98 106.94 -1.488
12/20/98 104.77 -1.912
1/3/99 111.65
1/17/99 103.96 [Median = -0.666]
1/31/99 106.43
2/14/99 105.24
2/28/99 106.15
[Median = 106.695]
FTE
95
100
105
110
115
120
1/18/982/15/983/15/984/12/985/10/98
6/7/987/5/988/2/98
8/30/989/27/98
10/25/9811/22/9812/20/98
1/17/992/14/99
Period
Individual Value
Variance from Budget
-15
-10
-5
0
5
10
1/18/982/15/983/15/984/12/985/10/98
6/7/987/5/988/2/98
8/30/989/27/98
10/25/9811/22/9812/20/98
Period
Individual Value
1) Do you see any potential special causes in these run charts? If so, do you have any possible theories for what caused them?
2) Regardless, how does she seem to be doing relative to budget?
3) Is the “every two week meeting” a common cause or special cause strategy?
4) To complete the picture and analysis, get the two control charts.
a. Interpret each of them: What further insights have you gained?
b. Given the current budget, if nothing changes , what is the expected range for any random two-week interval?
c. If nothing changes, what do you predict her end-of-year budget performance will be?
d. Do you have any recommended actions?
5) Should the “every two week meeting” continue to be routinely scheduled? Can you suggest a better alternative?
