Engineering Statistics Case Solution

Introduction:

Engineering statistics is a scientific method to analyze data by combining of two approaches which are engineering and statistics. Engineering statistics is the study of data related to manufacturing processes such as material types and its quality, component dimensions, control processes and restraints. There are several methods which can be used in engineering analysis but here, independent Z-test, T-test and chi square test are appropriate.

The data has been collected from four different suppliers related to purchase of an equipment, which are meeting the expectations and specifications of equipment needed. In which; after performing some statistics test upon it, the capable supplier will be chosen who will provide the needed equipment along with the fulfillment of all standard specifications.

Hypothesis will be made accordingly with different tests performed in SPSS,which will be described in statistical analysis part. Hypothesis presentation will be in null and research form, in which we will apply different tests in order to evaluate research question.

There is a requirement of three technical machines, which will be used for production purpose. In order to maintain the quality standards, there must be some errors or damage to products that might occur, which will be in different quantity, in each month, for each supplier. Different test statistics have been performed in SPSS to find the capable supplier who provides maximum acceptable output without incurring much maintenance cost.

Four suppliers’ data provide some of the acceptable products out of total number of products manufactured in each technical machines. There are three technical machines, which are; standard, DAC and operator.

Objective:

Main objective for this engineering statistics is to find the capable supplier after analyzing the engineering scenario in which maintenance cost will be predicted, which will further help to choose the best supplier who will meet the requirement and specifications of technical machines, which ultimately is the source material to produce the final product.

Problem Statement:

In this scenario, there is an availability of four suppliers who offer same machinery for three different products. Although the work is same that will be performed by the machines, but the average monthly maintenance cost and number of acceptable products according to the quality control department, will be different from all machines purchased by different suppliers. Now the company wants to know about the capable supplier who will provide efficient and effective machinery with high number of acceptable products and minimum maintenance cost.

Literature Review:

Maintenance Engineering Society of Australia (MESA) specifies that maintenance is used to achieve the required asset capabilities that can be in business and economic context. Maintenance is a part of engineering decisions that is used for the purpose of achieving optimization level of equipment capability. Here, the definition of capability is to perform some functions which are used to measure firm’s performance. Its measurement levels are its capacity level, rate, quality and safety along with responsiveness rate(U. Kumar, 2013).

Business strategy should be made to deliver maintenance approach to the manufacturing department and product model strategies. Such as Just in Time (JIT) requires high machinery ultimately high maintenance. Apart from this, Total Quality Management (TQM) department requires good working conditions such as excellent machinery, skilled labors and minimum number of detective products.(Jorge M. Simões, 2011).

Statistical Analysis:

Standard technical machine’s average monthly maintenance cost is taken, which is around $ 2,430 while its 95% confidence interval range is from $ 1,683 to $ 3,175, which shows that the actual monthly maintenance cost for standard technical machine purchased by supplier one will be between the provided confidence interval ranges. Another technical machine called DAC’s average monthly cost has been taken, which has been purchased by the same supplier, the average monthly maintenance cost is around $ 1,141 while its 95% confidence interval range is from $ 678 to $ 1,603, which shows that the actual monthly maintenance cost for DAC technical machine purchased by supplier one will be between the provided confidence interval ranges. And the third one, called operator, whose average monthly maintenance cost is around $ 3,529 while its 95% confidence interval ranges is from $ 2,120 to $ 4,939 which shows that actual monthly maintenance cost for Operator technical machine purchased by supplier one will be between the provided confidence interval ranges.

The average monthly maintenance cost of Standard technical machine from supplier has been taken average, which is around $ 5,750 while its 95% confidence interval range is from $ 3,898 to $ 7,603, which shows that actual monthly maintenance cost for standard technical machine purchased by supplier two will be between the provided confidence interval ranges. Another technical machine DAC’s monthly which is from the same supplier, its average monthly maintenance cost has been taken, which is around $ 5,428, while its 95% confidence interval range is from $ 4,043 to $ 6,814, which shows that actual monthly maintenance cost for DAC technical machine purchased by supplier two, will be between the provided confidence interval ranges. And the third machine i.e. Operator’s average monthly maintenance cost has been taken, which is around $ 5,135, while its 95% confidence interval range is from $ 3,436 to $ 6,834, showing that the actual monthly maintenance cost for Operator technical machine purchased by supplier two will be within the provided confidence interval range.

Third supplier’s standard technical machine’s average monthly maintenance has been taken, which is around $ 4,308, while its 95% confidence interval range is from $ 3,212 to $ 5,404, which shows that the actual monthly maintenance cost for standard technical machine purchased by supplier three will be between the provided confidence interval ranges. Another technical machine i.e. DAC’s which is from the same supplier; its average monthly maintenance cost has been taken, which is around $ 4,185 while its 95% confidence interval range is from $ 2,018 to $ 6,352 which shows that the actual monthly maintenance cost for DAC technical machine purchased by supplier three will be within the provided confidence interval range. And the third one, called operator, whose average monthly maintenance cost is around $ 4,873 while its 95% confidence interval range is from $ 2,216 to $ 5,217 which shows that actual monthly maintenance cost for Operator technical machine purchased by supplier three will be within the provided confidence interval range.

Standard technical machine from supplier four, whose average monthly maintenance cost has been taken, which is around $ 4,885, while its 95% confidence interval ranges is from $ 2,983 to $ 6,787, which shows that actual monthly maintenance cost for standard technical machine purchased by supplier four will be within the provided confidence interval range. Another technical machine called DAC from the same supplier, whose average monthly maintenance cost is around $ 3,287 while its 95% confidence interval range is from $ 2,333 to $ 4,241, showing that the actual monthly maintenance cost for DAC technical machine purchased by supplier four will be within the provided confidence interval range. And the third one, called operator, whose average monthly maintenance cost has been taken, which is around $ 3,717, while its 95% confidence interval ranges is from $ 2,216 to $ 5,217, which shows that the actual monthly maintenance cost for Operator technical machine purchased by supplier four will be within the provided confidence interval range…………..

 

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