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.