The document discusses the concepts of necessary and sufficient conditions. It provides examples to illustrate the difference. A necessary condition is one that must be present for a result to occur, but by itself is not sufficient to produce the result. For example, fuel is necessary but not sufficient to create a fire - oxygen and a spark are also needed. Only when all necessary conditions are present together are the conditions sufficient to produce the desired result. The document uses examples of reducing input costs to increase margins and the conditions needed for fire to explain necessary versus sufficient conditions.
1 of 1
Download to read offline
More Related Content
17. what is necessary and sufficient
1. Keur Knowledge Centre Article # 2020/17
www.keur.in
What is Necessary & Sufficient
While managing companies, sometimes you face a
situation where some actions are taken expecting a
particular result & then you find that expected result
didnt materialise. In such situations, it could be a
problem of sufficiency.
For eg. suppose you reduced cost of input material
that goes into your product & because of that, you
were expecting your margin earned will increase
(Figure 3).
When you check your Profit & Loss statement, you
find that margin has not increased.
What happened?
It means that only this single action of reducing input
material cost was not sufficient to increase margin.
Something else is required along with it & that
something else is missing (Figure-4).
It could be that Sales price was reduced (by giving
more discount to clients). Thus, we have one more
Necessary condition so as to get increase in margin
earned Dont increase discount. These
conditions together, will then give desired result.
Whenever you dont get expected result, check for
missing Necessary conditions to achieve sufficiency.
Let us take one example which we discussed in
article no. 15, about relationship between actions &
results.
In Figure-2 above, to get result (fire), we need to
take three actions (provide fuel, oxygen and
spark). These three actions (hereafter we will call
them conditions) when present together, will give
the result.
When we go from Result to Actions, it is called
Necessary conditions.
For eg. from Fire we can go to Fuel which is one
of the three conditions. So, we can say, Fuel is a
Necessary condition to get Fire. However it is
not Sufficient to get Fire. Why? Because it is only
one of the three conditions required to be present
together, to cause Fire.
Thus, Fuel is Necessary but not Sufficient to
cause Fire.
Similarly, from Fire we can go to Oxygen or
Spark.
Like Fuel, Oxygen is Necessary but not Sufficient
to cause Fire.
Similarly, Spark is Necessary but not Sufficient to
cause Fire.
Thus, each of the three conditions, individually, are
Necessary but not Sufficient to cause Fire.
When we go from Actions to Result, it is called
Sufficient conditions.
All three conditions (Fuel, Oxygen and Spark)
together are Sufficient conditions to cause Fire.
When we say Sufficient it means no other
condition is required.
Thus, we can say that these three conditions are
Necessary And Sufficient conditions to cause Fire.