Process improvements. One way to improve a process is to eliminate nonvalue-added activities (e.g., extra movements) and

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Process improvements. One way to improve a process is to eliminate non–value-added activities (e.g., extra movements)

and wasted effort (e.g., looking for materials). A consultant was hired to improve the efficiency in a large shop floor operation. She tested three different workspace designs and two different storage/retrieval systems. She measured process flow time for three randomly selected operations through each of the combinations of workspace design and storage/retrieval systems. The data and twoway ANOVA results are shown here.

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a) Is this an experiment or observational study? Explain.

b) What is the response variable?

c) How many treatments are involved?

d) Based on the two-way ANOVA results, management concludes that neither the workspace design nor the storage/
retrieval system impacts process flow time (and that the consultant wasn’t worth the money). Do you agree with this conclusion? Explain.

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Business Statistics

ISBN: 9780321716095

2nd Edition

Authors: Norean D. Sharpe, Paul F. Velleman, David Bock, Norean Radke Sharpe

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