Authors
Paul B. Cragg & Malcolm King
Abstract
Spreadsheet models are increasingly being used in decision making within organizations. With questions about the quality of these models, an investigation was conducted into the spreadsheet practices in ten firms, with an emphasis on the process of building spreadsheet models.
The study showed that spreadsheet models were usually built in an informal, iterative manner, by people from all organizational levels. These people had received very little training in the building of models, which could help explain why at least 25% of the models contained errors.
Other problems were also found. It was evident that the spreadsheet practices in the firms were inadequate. There is a need for increased training as well as setting and enforcing organizational spreadsheet standards.
This could provide an opportunity for OR workers if carefully handled. Although the study was viewed as exploratory, it indicated a need for further study into the effect of formal design practices on the incidence of errors and model creation time.
Sample
This is the output from a spreadsheet presented to a group of sophisticated managers and management teachers.
One of the authors tried to convince the group that there was an error in the calculation of "Number of Participant Days". However, this intervention was greeted with amazement, disbelief and lack of comprehension.
It was alarming that so many management teachers had complete faith in the figures just because they were produced on a spreadsheet.
(This is a subtle logic error: Number of Participant Days = Number of Course Days x Number of Participants. The formula implies that every participant attended every day of every course. Instead, if each participant attended every day of just one course, then Number of Participant Days = Number of Course Days / Number of Courses x Number of Participants.)
Publication
1993, Journal of the Operational Research Society, Volume 44, Number 8, pages 743-752
Full article
Not available
