Case: Internal Process Improvement

The VP of Operations has concluded that the forecasting and material ordering function of your company is wasteful and highly inefficient. The VP assesses that too many manual steps exist in the sales activities and the materials planning, order placement, and fulfillment processes. You have been assigned to a team to perform research and benchmarking of the complete sales process and to make recommendations about any changes that can be implemented.

Consider what data in the data could be employed for a test of significant difference.

Carry out the following activities:

1. Produce a null and alternative hypothesis and carry out a t-test on the data you have selected. Determine if you should accept or reject the null hypothesis.
2. Consider whether a parametric or non-parametric test of significant difference should be carried out. Identify which non-parametric test you would employ. Explain the rationale for your choice.
3. Produce a null and alternative hypothesis and carry out an ANOVA on data that supports testing three or more data samples.
4. Determine if you should accept or reject the null hypothesis.
5. Consider whether an ANOVA or a non-parametric version of the ANOVA should be carried out. Identify which non-parametric test you would employ. Explain the rationale for your choice.
6. To what extent could this data answer the research questions we have developed? What other questions would this data enable us to answer?

Competency 4: Systems Analysis Competency 3: Order processing Competency 2: Purchasing Dept A Dept B Dept C Dept D Dept E Dep Competency 1: Forecasting Dept B Dept C Dept D Dept E 3 1 2 Dept C Dept D Dept E Dept A 1 Dept A Dept B 3 3 2 N Dept C Dept D Dept E un 5 CO N un Dept A Dept B 3 3 5 un N 4 3 4 4 Un 2 3 4 3 WN NW NN 3 WN N N AWW N 4 W N F U W UT UT N W W W W N A UI A UT W H W UT AWN N ANNANHUW NNW W N P WNANA N N NUUN W N W N N W N N w\fIdentified Defects per Department Per Month 1 2 3 4 5 6 7 8 9 10 Order Entry 20 23 26 5 22 37 8 35 27 4 Material Planning 5 6 17 10 18 7 5 11 8 15 Production 14 2 25 12 19 8 16 3 6 16 Warehouse 53 31 33 11 63 43 68 42 23 49 Shipping 18 41 34 26 7 11 36 32 49 13 Quality 13 6 34 11 21 19 18 9 28 6 Total 124 111 172 79 155 131 158 140 150 113 Identified Defects per Department Per Waste Category (monthly) 1 2 3 4 5 6 7 8 9 10 Transportation 21 3 29 22 43 10 33 34 33 17 Inventory 57 29 51 53 30 8 68 31 50 17 Motion 14 5 12 20 1 12 7 19 12 19 Waiting 9 16 26 12 10 17 34 9 3 21 Overprocessing 0 2 16 44 21 27 19 20 51 Overproduction 14 16 15 22 33 13 25 16 3 Defects 2 20 28 28 32 25 16 24 11 15 Skills 0 16 36 10 16 15 11 20 26 13 4 Total 175 200 182 171 221 194 208 201 199 210\fQ4: The current process is controlled and optimized Q3: 1 perceive existing processes to be outdated Q2: The existing material planning processes are followed consistently Dept B Dept C Dept D Dept E Q1: The existing material planning processes understood by all Dept E Dept A Dept A Dept B Dept C Dept D Dept A Dept B Dept C Dept D Dept E 5 4 Dept B Dept C Dept D Dept E Dept A 4 3 2 2 1 3 PANWNA Note: 1 = Strongly disagree 5 = Strongly agree H N D D H N N N H N U W A U N H P H P H A W U W H W A W H N H U H H A U A W A NUNNNUNWWWWWWWWWNNWWWEPPENWNWNWHEWHEW NNOWNWN HHHHHH WN NE WHE W W N W W H NH HHPPP WA W W N " I N N N H W AN AN K NW AWW NNWA WHAANWANWNNANANA ( W H W W N N A U N D W U D H U P N A U W W N H ANDUWANUBUWONE W W N U N N NEN NENWNNNNWHONENEWEWWNNNWNEWNNE AWNWAHWASWHNENNEWWNWWNAH PHRAAWWPHAN IPHUWWHHWHAWNABUENAUENAKAUUHUNNWWWWARD W AU NOW A NU NU N D N U N U U N N N A UN D P NU AND ANNANDAW HNWHNNUNWHONWHEWNWNHEWHEWW NE WHEWWANNNA W N D D N H W H W H D D P H A H A N N U N W A N W N H W N N N H W NW WAW WWUD DADUNUN DUMUNAPAWNNNNAVALWNNUAUHNWA DNAANANDNUNNNANDANNNWPWNPWPPNNAP