4 questions

4 questions

Q1

“One-factor-at-a-time (OFAAT) and  Design of Experiment (DOE)” Please respond to the following:

 please select one of the two subjects to discuss.

·         Per the textbook, trying to understand factors that impact the outcomes of business process is an important aspect of improving business operations. Conventional wisdom plans experiment one-factor-at-a-time (OFAAT). Compare and contrast the main advantages and disadvantages of OFAAT and DOE and select the approach (e.g., OFAAT or DOE) that you would use in order to obtain effective business process. Provide a rationale for your response. 

·         Select one (1) project from your working or educational environment that you would apply the DOE technique for the work process. Next, analyze the overall manner in which you would utilize DOE to manage and improve the work process of the project in question. Provide a rationale for your response. 

Q2

The experiment data in below table was to evaluate the effects of three variables on invoice errors for a company. Invoice errors had been a major contributor to lengthening the time that customers took to pay their invoices and increasing the accounts receivables for a major chemical company. It was conjectured that the errors might be due to the size of the customer (larger customers have more complex orders), the customer location (foreign orders are more complicated), and the type of product. A subset of the data is summarized in the following Table.

Data table:http://imgur.com/a/Ch1u2

Reference: Moen, Nolan, and Provost (R. D. Moen, T. W. Nolan and L. P. Provost. Improving Quality through Planned Experimentation. New York: McGraw-Hill, 1991) Use the date in table above and answer the following questions in the space provided below:

1.      What is the nature of the effects of the factors studied in this experiment?

2.      What strategy would you use to reduce invoice errors, given the results of this experiment?

Q3

“Confidence Interval” Please respond to the following:

 please select one of the two subjects to discuss.

·         research articles on confidence interval and its application in business. Select one (1) company or organization which utilized confidence interval technique to measure its performance parameters (e.g., mean, variance, mean differences between two processes, etc.). Give your opinion as to whether or not the utilization of such a technique improves business process for the company or organization that you selected. Justify your response.  

·         Select one (1) project from your working or educational environment in which you would use the confidence interval technique for the process. Next, speculate on one to two (1-2) challenges of utilizing such a technique in the process and suggest your strategy to mitigate the challenges in question.  

Q4

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows:                        Treadmill          Exercise Bike Total sold                   185                           123 Service contracts       67                             55 The store can only sell a service contract on a new piece of equipment. Of the 185 treadmills sold, 67 included a service contract and 118 did not. Complete the following questions in the space provided below:

1.      Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold on treadmills versus exercise bikes.

2.      Is there a major difference between the two pieces of equipment? Why or why not?