EXCEL LOGISTICS SERVICES

Please note: This case did not come with a spread sheet. Thus, as a first step, you will have to create data files in EXCEL for Exhibits 3, 4 and 5 (shown on pages 6, 7, and 8). If you look at the data carefully, you will see that the numbers in Exhibit 3 represent the totals from Module 1 Performance in Exhibit 4, and Module 3 performance in Exhibit 5. Question 1 Prepare a run chart for each category of the receiving process Exhibit 3 provides the data for this the categories are Slotter Errors, Keying Errors, Let Down Errors, ITR ADJ Errors, Putaway Errors, Other Errors and Total Errors. A run chart shows proportion of errors on the Y-axis, and days along the X-axis. As an example, in Exhibit 3, the proportion of slotter errors for 06/01 is 4/800 = 0.005. For the 2nd day, 06/02, proportion of slotter errors is 11/800 = 0.01375. The run chart is also referred to as a line chart see an example here (you can find lots of examples on the internet): http://deming.eng.clemson.edu/pub/tutorials/qctools/runm.htm Please prepare separate run charts for each error categories mentioned above. Be sure to briefly summarize your observations on each chart (ideally just below the chart for easy reference). Question 2 Prepare control charts for total errors in (a) Exhibit 3 (Overall Performance), (b) Exhibit 4 (Module 1 Performance) and (c) Exhibit 5 (Module 3 Performance). Thus, you will prepare 3 separate control charts in answering this question. Please be sure to comment on whether the performance is in control in each case. Question 3 Using data on total errors from Exhibit 3 (total errors=655, total slots checked=36,000), calculate the probability of the proportion of errors exceeding 2%. Assume a total of 8000 transactions per day (n=8000). This question can be answered using the material on sampling distribution of proportions see slides for Chapter 7. Question 4 Prioritize the set of actions you would have to take to ensure that more than 99% of the days have less than 2% receiving process errors (all we need is a Pareto chart showing different error categories in Exhibit except the Total) do you believe that the other errors is meaningful given its contribution to the Total errors?