Question
A company is contemplating redesigning one of its business processes to reduce the time required to complete the process and reduce operating costs. The company
A company is contemplating redesigning one of its business processes to reduce the time required to complete the process and reduce operating costs. The company has developed a simulation model for its current process design and two proposed design changes. 20 replications were performed using common random numbers. The following table displays the completion times in hours for the current design and each proposed design.
A. Plot the replication completion times for each design and discuss the extent to which the completion times appear to be correlated, including discussing whether the observed correlation is positive or negative.
B. Calculate the sample mean and variance for the completion times for each design and discuss the apparent effectiveness of the proposed design changes with respect to reducing the process completion time.
C. Calculate a 95% confidence interval for the difference between the following:
i. Current design and proposed design A
ii. Current design and proposed design B
iii. Proposed design A and proposed design B
D. Discuss the implications of the confidence intervals with respect to the effect of the proposed design changes on the process completion time.
Replication | Completion Time | Completion Time | Completion Time |
Current Design (hours) | Proposed Design A | Proposed Design B | |
(hours) | (hours) | ||
1 | 8.11 | 7.52 | 6.81 |
2 | 11.78 | 13.35 | 8.9 |
3 | 10.43 | 11.55 | 8 |
4 | 7.71 | 6.66 | 7.17 |
5 | 10.8 | 11.43 | 7.52 |
6 | 7.68 | 7.43 | 6.7 |
7 | 11.36 | 11.09 | 8.38 |
8 | 10.11 | 10.26 | 7.73 |
9 | 11.1 | 13.6 | 8.87 |
10 | 8.2 | 11.87 | 8.33 |
11 | 8.92 | 9.27 | 7.49 |
12 | 12.96 | 14.73 | 9.87 |
13 | 11.47 | 14.01 | 8.87 |
14 | 8.48 | 7.33 | 7.44 |
15 | 11.88 | 12.57 | 9.47 |
16 | 8.45 | 8.18 | 7.37 |
17 | 12.5 | 12.2 | 9.22 |
18 | 11.13 | 11.29 | 8.51 |
19 | 12.67 | 16.21 | 10.48 |
20 | 8.18 | 14.16 | 9.16 |
Step by Step Solution
3.38 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
A To better visualize the completion times for each design we can create a scatter plot for each design with the xaxis representing the completion times for the current design and the yaxis representi...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started