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Using statistics for managementdecisions

Hands-on case study!

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The correct way!

but harder

Internal AND external buy-in!

WHY????????????????

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Best when combined

- Loans of books are down from 60 000 to 40000

- Full-text downloads are up from 40 000 to 60000

- BUT student numbers have halved!

- NO! student numbers have doubled!

HOW?????????????

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Technical University of Atlantis

A brand new institution, the collection of

monographs has to be built up. An initial fundof A$1,000,000 has been given, and now thelibrary has been asked to explain to theSenate Library Committee how they are

going to divide this equitably amongst thedifferent departments

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Per head division

Add up all students, dividemoney by total and

multiply result pernumbers in eachdepartment!!!

QED!!

Faculty ofEngineering:

Mechanical 16000

Marine 80000

Civil 230000

Astronautics 10000

Quality 20000

Faculty of Applied

SciencesMarine biology 230000

EnvironmentalScience

80000

Horticulture 20000

Biotechnology 160000

Vulcanology

10000

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Problem!

The Faculty Librarian for Applied Sciences

looks at this and says Theres no way wecan have A$230,000 for Marine Biology, butonly A$10000 for Vulcanologyyou cantbuild a collection with only A$ 10000!!

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Solution

Divide the budgetinto two:

Use half for anequal distributionfor departments,and half per

student

Per dept Per student Total

Faculty ofEngineering:

Mechanical 50000 8000 58000

Marine 50000 40000 90000

Civil 50000 115000 165000

Astronautics 50000 5000 55000

Quality 50000 10000 60000

Faculty of AppliedSciences

Marine biology 50000 115000 165000

Environmental Science 50000 40000 90000

Horticulture 50000 10000 60000

Biotechnology 50000 80000 130000

Vulcanology 50000 5000 55000

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Everyone happy!

The Faculty Librarian for Engineering clears his

throat: Thislooks

fair, but we have been toldthat as a library we need to support researchand we all know that my Faculty producesmost of the research! AND we know that the

material used by researchers and studentsdoing research is more expensive! But thisdoesnt show it!

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Solution

Divide the budget into three:

Use one-third for an equal distribution fordepartments, one-third per student, and onethird to be divided on the basis of researchoutput and postgraduate students

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Result

Per dept Per student PG studentsResearch

output Total

Faculty of Engineering:

Mechanical 33333 53333 4167 21667 112500Marine 33333 26667 8333 21667 90000

Civil 33333 76667 0 21667 131666

Astronautics 33333 3333 8333 21667 66666

Quality 33333 6667 16667 21667 78333

Faculty of Applied Sciences

Marine biology 33333 76667 66667 11667 188333

Environmental Science 33333 26667 16667 11667 88333

Horticulture 33333 6667 4167 11667 55833

Biotechnology 33333 53333 41667 11667 140000

Vulcanology 33333 3333 0 11667 48333

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Now everyones happy!

Head of Technical Services is still frowning:

Weve taken into account the number ofstudents, research needs and even protectedsmaller departments, but in my departmentwe know that the price of material varies

widelyVulcanology pays four times asmuch as Horticulture for their material! Surelythis must be taken into account?

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Final solution?

Divide into quarters:

One quarter per departmentOne quarter for students

One quarter for research

One quarter for cost of items.

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Final division!

Per dept Per student PG studentsResearchoutput Total

Faculty of Engineering:Mechanical 25000 40000 3125 16250 25000 109375Marine 25000 20000 6250 16250 15789 83289Civil 25000 57500 0 16250 22368 121118

Astronautics 25000 2500 6250 16250 42763 92763Quality 25000 5000 12500 16250 12500 71250

Faculty of Applied Sciences

Marine biology 25000 57500 50000 8750 17105 158355Environmental Science 25000 20000 12500 8750 38158 104408Horticulture 25000 5000 3125 8750 13158 55033Biotechnology 25000 40000 31250 8750 25000 130000Vulcanology 25000 2500 0 8750 38158 74408