2. If the management uses a 95% confidence level and an accuracy of ;5%, is their current...
Question:
2. If the management uses a 95% confidence level and an accuracy of ;5%, is their current sample size sufficient?
Fast & Fresh Pastry is a medium-sized company in Australia, specialized in baking and distributing pastries in high volumes.
They serve gas stations, convenience stores, and cafeterias. Their products line includes cinnamon rolls, croissants, bear claws, biscuits, buns, and flatbreads. Their processes are highly standardized, with the same steps needed for all their products. Recently they had a request from their customers to introduce croissant sandwiches, with ham, lettuce, butter, and mayonnaise in it. They would need to produce 400 units during their 8-hour morning shift.
The procedure of making the requested croissant sandwich is simple and the new ingredients are readily available from nearby supermarkets. The company would have to halve the croissant, put the required ingredients in it, package it individually, and stamp the production date and time on it. The issue was that it added a new element into their well-working process. The management also worried about the number of employees they would have to hire, since the additional labor cost would cut into their already thin profit margin.
To estimate the time needed for the additional step, one of their workers (with a performance rating of 115%), performed the task 20 times with the following results (in seconds):
Fast & Fresh Pastry generally applies a fatigue allowance of 5%, and a personal allowance of 7%. They pay their employees the equivalent of $10.50 per hour
Step by Step Answer:
Operations Management: Sustainability And Supply Chain Management
ISBN: 9780135225899,9780135202722
13th Edition
Authors: Jay Heizer; Barry Render; Chuck Munson