A large manufacturing firm is concerned about lost production (i.e., production capability that was not utilized...

 

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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 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 l and Type Il errors in this context. Submit both the complete report and your Excel spreadsheet. 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 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 l and Type Il errors in this context. Submit both the complete report and your Excel spreadsheet.