Rational Decision Making: Audit the Results.

An audit of the results is a comparison of what happened against the predictions. Do the results of a decision analysis reasonably agree with its projections? If a new machine tool was purchased to save labor and improve quality,did it? If so, the economic analysis seems to be accurate. If the savings are not being obtained, what was overlooked? The audit may help ensure that projected operating advantages are ultimately obtained. On the other hand, the economic analysis projections may have been unduly optimistic.Wewant to know this, too, so that the mistakes that led to the inaccurate projection are not repeated. Finally, an effectiveway to promote realistic economic analysis calculations is for all people involved to know that there will be an audit of the results!

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