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ASSIGNMENT NUMBER 1: BASIC BUSINESS ANALYTICS
The following answers have been provided with reference to a fixed price project. The project was already supported for the last two years which is an added advantage. Optimum estimations are being made for the price. The same staffs are working on the project who has been involved in the past two years. Three different staffs have come up with three different project processes, the details regarding which are discussed below.
Q1. The data regarding the productivity of the last two years has been provided in the excel sheet. The average of the data given is 21.88. This has been calculated using the excel formula. So to include the new application in the scope of the project, at least the productivity level of 21.88 is required.
Now it is to be considered if the target is good or not. If the data is checked statistically, then this figure has been reached in most of the weeks. In fact in some cases the value has gone even above that. So, the target is good and can be achieved easily.
Q2. Ramu, Somu and Arasu has given their separate ideas and three types of process improvement data can be generated from the given ideas. It is to be checked as to whose idea is the best and has been successful in giving the required results. For this the average of the productivity from the three ideas are to be checked. The past two years data of the ideas of these three employees are present but the average will be taken only for the production of the new year since recently the project has been renewed and the current productivity level is to be checked. Currently the data available are for 11th week in the current year.
The average of the productivity of the new year data are as follows. The calculations have been done using the excel formula:
Ramu, Process Improvement Data 1 – 25.43
Somu, Process Improvement Data 2 – 22.35
Arasu, Process Improvement Data 3 – 15.40
As per the average productivity calculated in the first question, both the ideas of Ramu and Somu are meeting the productivity requirements since the average production under both the options are above 21.88. The idea of Arasu does not meet the criteria. But since the production under the idea of Ramu is highest, so that will be considered to be best idea. But analysis will be done in details below to reach the conclusions.
Q2.1. The assumption is that Ramu’s idea is being followed and currently week 2 is going on and the data is available only for week 1 and 2, then to check if the right direction is followed or not the weekly productivity is to be compared with the average productivity of the last two years.
Week 1 productivity – 24.03
Week 2 productivity – 24.80
Average productivity of last two years – 21.88
Production of both the weeks is above the average production of last two years. So, it can be concluded that right direction is followed.
Q2.2. If the process improvement data 1 is analyzed then it can be seen that there has been an improvement in the productivity. As already calculated above the average production of the eleven week production in the current year is 25.43 which is much higher than the average production of the last two years which was 21.88. So, as per this idea not only the production targets are fulfilled but also there is an improvement in the production.
Q2.3. The assumption is that Somu’s idea is being followed and currently week 2 is going on and the data is available only for week 1 and 2, then to check if the right direction is followed or not the weekly productivity is to be compared with the average productivity of the last two years.
Week 1 productivity – 21.40
Week 2 productivity – 21.78
Average productivity of last two years – 21.88
Production of both the weeks is slightly below the average production of last two years. Although the margin is very low and there are high probabilities of the production...