Like you – maybe – I have been enjoying my holiday. But even then I think about the numbers involved. Sorry, can’t help it. We drove to Cornwall for a wonderful week, and my car’s computer proudly told me that the 448 mile round trip was done at an average of 45.6 miles to the gallon. But – as you expect from – I check this. Having carefully brimmed the tank before we set off I check the actual fuel used, and therefore the actual fuel consumption. With a sign of disappointment, and maybe a call from some of you that I have a lead right foot – 41.3 mpg. The computer lies.
That’s not all. It is only someone like me who actually checks these things. Most drivers will either believe the car computer, or just fill up and not measure at all.
Why are still still talking about miles per gallon, in a country where fuel by the gallon has not been sold since January 1995? Could it be because mpg is a bigger number than mpl, or litres/hundred miles (ltr/100km is commonly used across Europe). Cars are still advertised using mpg, and the bigger number makes them seem more economical.
Of course even the Motoring press have been here before, but it hasn’t captured out attention. Where else are we looking at the numbers, but not really questioning what they say?
Buzzword of the Week
Inventory
Definition – a list of items…what it means in business is its the stuff you have that you are going to sell – whether that is raw materials, finished goods, or everything in between those two, know as Work in Progress. Known in the UK as Stock.
Alternative View – its not how much, its how long you hang on to it! The ideal is get stock in during the morning, and sell it in the afternoon. This rarely happens, so retailers, wholesalers and manufacturers have vast stockrooms and warehouses full of stuff. Most clothing retailers seem to keep their entire stock crammed onto rails so you cant see what they have and whether its your size! More useful measure is Stock (invcentory) Turnover, usually in terms of how many days on average you have it, and systmes to keep track of indiviual lines. Less commonly measured in how many times a year the stock turns over – so 61 days = 6 times a year. The quicker – the lowest number of days, or highest number of annual turnover – the better. Irrelevant to businesses without stock – like software/web design, and even training consultants.