Shares and Scope

Honest Cost-Bucket Scope

The final lesson states the boundary: this is deterministic cost-bucket arithmetic.

highlighted = computed this step

Deterministic buckets

The calculations use fixed cost buckets.

deterministic cost-bucket arithmetic\text{deterministic cost-bucket arithmetic}
Cost sharesThe chart shows the grouped totals and the two exact shares.cost shares and scopetotal 60; nonconformance share 2/3preventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25conformance 20nonconformance 40external share 5/12bucketgroupcostpreventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25deterministic cost-bucket arithmetic only

Not ROI

The arithmetic does not prove return on investment or causality.

outside scope: ROI and causality\text{outside scope: ROI and causality}
Cost sharesThe chart shows the grouped totals and the two exact shares.cost shares and scopetotal 60; nonconformance share 2/3preventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25conformance 20nonconformance 40external share 5/12bucketgroupcostpreventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25deterministic cost-bucket arithmetic only

Not a forecast

The arithmetic does not forecast future costs or prove root causes.

outside scope: forecasts and root-cause proof\text{outside scope: forecasts and root-cause proof}
Cost sharesThe chart shows the grouped totals and the two exact shares.cost shares and scopetotal 60; nonconformance share 2/3preventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25conformance 20nonconformance 40external share 5/12bucketgroupcostpreventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25deterministic cost-bucket arithmetic only

Honesty note

This is deterministic cost-bucket arithmetic only. It does not prove ROI, causality, forecasts, root causes, or improvement.

deterministic cost-bucket arithmetic only\text{deterministic cost-bucket arithmetic only}
Cost sharesThe chart shows the grouped totals and the two exact shares.cost shares and scopetotal 60; nonconformance share 2/3preventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25conformance 20nonconformance 40external share 5/12bucketgroupcostpreventionconformance12appraisalconformance8internal failurenonconformance15external failurenonconformance25deterministic cost-bucket arithmetic only