A large manufacturing firm is concerned about lost production (i.e., production capability that was not utilized...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A large manufacturing firm is concerned about lost production (i.e., production capability that was not utilized for a variety of reasons). One of the causes of such lost production was identified as employees taking time off work because of illness. Last year, the organization estimated that about 53,000 units of production were lost each week due to this cause, with a standard deviation of 4,800. The Department of Human Resources decided to monitor, on a weekly basis, a small sample of 20 employees on the production line in terms of their attendance at work, and to translate this into a weekly production loss figure for the company. For the first eight weeks the results are as follows: Estimated Lost Production (000 units) Week 1 50.3 Week 2 53.9 Week 3 55.6 Week 4 51.2 Week 5 51.0 Week 6 50.9 Week 7 48.7 Week 8 49.3 Directions 1. Within Excel, construct a control chart that will be of use to the Department of Human Resources. Insert the chart, using proper APA format, into the executive briefing in step 2 below. 2. Prepare a 250- to 350-word executive briefing that (a) reviews the issue under study and the rationale for your analysis (ensure that your briefing includes the quantitative analysis that yielded the mathematical results of warning and action limits); (b) outlines the potential for using control charts in monitoring lost production on a regular basis (highlight which, if any, weeks need management's attention, and support these claims using your numerical analysis); and (c) explains Type l and Type Il errors in this context. Submit both the complete report and your Excel spreadsheet. A large manufacturing firm is concerned about lost production (i.e., production capability that was not utilized for a variety of reasons). One of the causes of such lost production was identified as employees taking time off work because of illness. Last year, the organization estimated that about 53,000 units of production were lost each week due to this cause, with a standard deviation of 4,800. The Department of Human Resources decided to monitor, on a weekly basis, a small sample of 20 employees on the production line in terms of their attendance at work, and to translate this into a weekly production loss figure for the company. For the first eight weeks the results are as follows: Estimated Lost Production (000 units) Week 1 50.3 Week 2 53.9 Week 3 55.6 Week 4 51.2 Week 5 51.0 Week 6 50.9 Week 7 48.7 Week 8 49.3 Directions 1. Within Excel, construct a control chart that will be of use to the Department of Human Resources. Insert the chart, using proper APA format, into the executive briefing in step 2 below. 2. Prepare a 250- to 350-word executive briefing that (a) reviews the issue under study and the rationale for your analysis (ensure that your briefing includes the quantitative analysis that yielded the mathematical results of warning and action limits); (b) outlines the potential for using control charts in monitoring lost production on a regular basis (highlight which, if any, weeks need management's attention, and support these claims using your numerical analysis); and (c) explains Type l and Type Il errors in this context. Submit both the complete report and your Excel spreadsheet.
Expert Answer:
Related Book For
An introduction to management science quantitative approaches to decision making
ISBN: 978-1111532222
13th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
Posted Date:
Students also viewed these accounting questions
-
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per...
-
A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells for $650 an ounce, but the price is extremely volatile and could fall as low as $630 or rise as high...
-
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per...
-
Metro builds and operates traditional shopping malls. It holds a $25 million deferred tax asset relating to credit carryforwards at the state, local, and Federal levels. No valuation allowances...
-
Dartmouth Distribution Warehouse makes deliveries of a large number of products to its customers. It is known that 85% of all the orders it receives from its customers are delivered on time. Let p be...
-
Distinguish between positive and negative emotions, and explain how they can be judged.
-
Explain the meaning of bond ratings and their impact on buying decisions.
-
Kogan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A...
-
FM Manufacturing Co. considers the purchase of two different types of machines, Machine A and Machine b, to manufacture ball bearings, one of the many products it produces for the car market. Each...
-
A financial engineer designs a new financial instrument that he calls, the Simplex. This instrument gives the holder access to the following cashflows: For the first 6 years, the holder receives...
-
Please answer the following question with the attached image. Part A and B. Delta Corporation has the following capital structure: A. If the firm has $30 million in retained earnings, at what size...
-
A particle with a positive charge of 29.9 x 10 -6 C is traveling at a constant rate of 82,656 m/s. It enters a uniform magnetic field of 3.6 T that is directed at an angle of 24 degrees with respect...
-
A piston-cylinder assembly contains air, initially at 3.1 bar, 144 K, and a volume of 3.8 m. The air undergoes a process to a state where the pressure is 0.8 bar, during which the pressure-volume...
-
An airplane in a holding pattern flies at constant altitude along a circular path of radius 3.70 km. If the airplane rounds half the circle in 170 s, determine the following. (a)Determine the...
-
A product dealer has collected the sales data for the past 10 years, shown in the following table. Year 1 23456roag 7 8 9 10 Product Sales (Units) 15 28 36 17 25 9 13 22 18 26 (a) Compute the...
-
Remark: Do not copy following code (tabs, spaces are mixed). Type the main function and fill the missing code. def main(): acct= # you bought a phone with $200, add the transaction properly. #you...
-
The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets Cash Accounts receivable Inventory...
-
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
-
Assume you are given a minimization linear program that has an optimal solution. The problem is then modified by changing a greater-than-or-equal-to constraint in the problem to a...
-
Suppose that Westsides management in Problem likes the operational efficiency of ordering once each month and in quantities of 1000 units. How much more expensive would this policy be than your EOQ...
-
FRED® (Federal Reserve Economic Data), a database of more than 3000 U.S. economic time series, contains historical data on foreign exchange rates. The following data show the foreign exchange...
-
Which statement is false? a. In terms of actual numbers of events, women commit more fraud than men. b. Fraudsters act alone about 70 percent of the time. c. Employees are the largest number of...
-
Which statement is false? a. Women are more likely than men to report fraudulent activity. b. Older employees are more likely to report fraudulent activities than younger employees. c. For each \(\$...
-
What would be the worst strategy to catch ghost employees? a. Insure segregation of payroll preparation, disbursement, and distribution functions. b. Check for inflated invoices. c. Examine payroll...
Study smarter with the SolutionInn App