Question 3

To improve the payroll processing and market it as new software, the company has undertaken a Kaizen to find critical flaws, system processing errors, workflow, and re-code the entire system. The team conducted a Kaizen study and collected data points as shown in table 1 below.

Kaizen (hours)
28	27	32	33	35	42	48	32	30	37
38	28	25	24	28

The hypothesized new processing software is expected to be less than the standard of 40 minutes per bulk processing. Construct the following hypotheses and evaluate the statistical significance based on 5%, using the appropriate statistical method.

(i) The current distribution is less than 40 minutes per bulk processing.

(ii) The new processing software processing time is less than the current method.

(iii) Comment on both results