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s T e s tP V a l u e : 0 . 0 0 0T e s t S t a t i s t i c : 7 7 . 4 3 1F T e s tF a ct o r L e v e l s20xx20xxT e st f o r E q u a l V a r i a n ce s f o r C o st / E m p l o ye56 Control: Prove You ImprovedTest Averages 57 Control: Prove You ImprovedTest Averages P value is .05 so, a statistically proven change on average TwoSample TTest and CI: Cost/Employee, Year Twosample T for Cost/Employee Year N Mean StDev SE Mean 20xx 22 17274 6024 1284 20xx 11 14285 685 206 Difference = mu (20xx) mu (20xx) Estimate for difference: 2989 95% CI for difference: (291, 5687) TTest of difference = 0 (vs not =): TValue = PValue = DF = 22 58 Graphical AnalysisBoxplot of Averages 20xx20xx3000020xx010000Y e a rCost/EmployeeB o x p l o t s o f C o s t / E m p b y Y e a r( m e a n s a r e i n d i ca t e d b y so l i d ci r cl e s)59 Control: Process Sigma (Post) 1. Determine number of defect opportunities O = ______ per unit 2. Determine number of units processed N = ______ 3. Determine total number of defects D = ______ made (include defects made and later fixed) 4. Calculate Defects Per Opportunity DPO = = ______ 5. Calculate Yield Yield = (1DPO) x 100 = ______ 6. Look up Process sigma in the Process Sigma Table Process Sigma = ______ D N x O 60 Control: Process Sigma (Post) Answer 1. Determine number of defect opportunities O = __1__ per unit 2. Determine number of units processed N = __34___ 3. Determine total number of defects D = ___4___ made (include defects made and later fixed) 4. Calculate Defects Per Opportunity DPO = = 5. Calculate Yield Yield = (1DPO) x 100 = 6. Look up Process Sigma in the Process Sigma Table Process Sigma = D N x O 。 Directors Project Team Communications CEO, COO VPs HR, Finance, Business Units Monitoring Results Project Team Finance HR Reps HR Directors Legal VP HR VP Finance Which groups or individuals should be: 48 Improve: Generating and Selecting Solutions In the Analyze phase the group found that BCS as a group had significantly lower costs than other Business groups. On investigation they learned that BCS owns their own trucking line and sometimes uses their own trucks to move employees. This results in significant cost savings. Based on this the group generated a list of potential solutions: ?Move all TRW employees in North America with BCS trucks ?Bid all moves with BCS trucking as one of the Bidders ?Start a TRW wide trucking pany. ?Contract with one moving pany nation wide in order to get lower rates (using BCS costs as a benchmark). Use the Paired Choice Matrix on the following page to select the solution(s) which will be implemented. In a Paired Choice Matrix, pare two solutions to each other and select the preferred solution. Repeat this for all possible pairs. The solution that is selected most frequently is usually the one the group will implement. Be prepared to share your findings with the class. 49 Improve: Generating and Selecting Solutions A B C D A Make all moves with BCS trucks B Bid all moves, include BCS trucks in bidding C Start TRW Trucking Company D Contract with one trucking pany nationwide to get lower rates 50 Improve: Generating and Selecting Solutions Sample Answer A B C D A Make all moves with BCS trucks B A D B Bid all moves, include BCS trucks in bidding B D C Start TRW Trucking Company D D Contract with one trucking pany nationwide to get lower rates 51 Control: Monitoring Success ?As a group, identify what you would do to ensure that project successes are maintained. ?Indicate what data you would gather and what analysis you would plete. ?Who would be the process owner to whom this would be turned over on closeout? Be prepared to discuss your ideas with the class. 52 Control: Monitoring Success Sample Answers ?As a group, identify what you would do to ensure that project successes are maintained. ?Indicate what data you would gather and what analysis you would plete. ?Gather costs on all relocations ?Identify costs relative to Transportation of Goods。 HR Reps Purchasing Legal Business Unit VPs VP HR HR Directors Planning implementation Project Team amp。E diagram are correlated to “High Transportation Costs” using Minitab. Create a fitted line plot for cost vs. days in storage, cost vs. volume and cost vs. distance. Be able to demonstrate and discuss your findings. If the move was for a distance of 1375 miles, what would the expected cost be? File: 41 Analyze: Correlation Exercise Answers Stat Regression Fitted Line Plot… Perform function for each variable (storage days, volume and distance) 42 Analyze: Correlation Exercise Answers The one point at 63 days was investigated by the team and determined to be due to a special cause (estimate for lost data) and is helping to show a moderate correlation (RSq=%). With this point eliminated, there does not appear to be a correlation between storage days and cost (RSq=%). 0 10 20 30 40 50 60 2 0 0 0 3 0 0 0 4 0 0