Spreadsheet Errors

This page incorporates part of the findings of my research on spreadsheet errors.

Error Rates found by recent studies

Studies have shown that a significant amount of errors occur within spreadsheets. The table below shows three recent studies undertaken examining the percentage of models with errors. Note that in these studies, only significant errors were considered.

Source: Raymond R. Panko 2000 "What we know about spreadsheet errors"

Stories about Spreadsheet Errors

Numerous stories where published where spreadsheet errors cost significant amounts of money to the organisations. The followings are examples of them:
1. TransAlta - A big Canadian power generator
A simple cut and paste error cost the company US$24 million.
Source: The Register.
2. Dallas Oil Company
A number of executives lost their jobs because spreadsheet logic errors cost the organisation millions of dollars on a deal.
Source: Wall Street Journal, August 4^th 1986[40,6,16]
3. Various examples of industry spreadsheet errors reported in Business Week in 1984
- 30,000 components were ordered when 1,500 were required.
- A consultant underestimated a client's market by $36 Million.
Source: European Spreadsheet Risks Interest Group

                                                       
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