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 described 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 I and Type II errors in this context. 

Answer rating: 100% (QA)

Answer Last year the mean estimation was 53 with upper limit of 578 and lower limit of 482 With the ... View the full answer