Making spreadsheets safer

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MM company example

In the following sequence of slides, we shall model a simple company whose income and other attributes grow by a certain amount each year. Do please note that the example is kept deliberately simple so that it fits on a screen and is easy to read. We do realise that real business models would be more complicated than this!

object company
        incomings : real
        outgoings : real
        profit    : real
        profit[t] = incomings[t] - outgoings[t].

In the above piece of MM code, we are describing the attributes and behaviour of a simple company object. The behaviour says that the profits at any time t are always equal to the incomings minus the outgoings at that time.

It is easy to translate this to a spreadsheet. We could allocate profit to column A, incomings to column B and outgoings to column C. Successive time points can be allocated to successive rows. Then the appropriate formula can be loaded into each cell. In essence, that's how MM works.


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Copyright © 1998 J Ireson-Paine. All rights reserved