Company X has recently completed an analysis of its primary value-added process.

Question

Company X has recently completed an analysis of its primary value-added process. As part of this analysis, the major flows have been mapped such that the process has been broken down into 10 major activities. To better understand the process, the times to complete each of these activities have been carefully monitored over the past month. The results of this monitoring follow. What is the average completion time for this value-added process? What is the standard deviation for the entire process? What is the probability that process will be completed in 75 hours? in 80 hours? in 70 hours? Develop a 95 percent confidence interval for the process.

Explanation / Answer

from above

averanfe competion tiem =73

std deviation =(93.95)1/2 =9.693

P(X<75)= P(Z<(75-73)/9.693)=P(Z<0.2063)=0.5817

P(X<80) =P(Z<0.7222)=0.7649

P(X<70)=P(Z<-0.3095)=0.3785

for 95% CI; z=1.96

hence confidence interval =mean +/- z*std deviation =54.002 ; 91.998

mean std deviation variance 8 2.4 5.76 4 1.2 1.44 15 2.1 4.41 3 3 9 1 0.4 0.16 10 6 36 5 2.8 7.84 3 3 9 20 4.5 20.25 4 0.3 0.09 total 73 93.95

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