Solving Cow Industrials Ltd's Production Problem for Board of Directors

In summary, the conversation is about a medium sized engineering company, Cow Industrials Ltd, facing complaints from customers about substandard products and late deliveries. This has led to a decrease in production due to high absenteeism among the workforce. The production manager has asked for help from the information analyst to analyze employee data and find ways to reduce absenteeism and increase production. The factors being considered are age, holiday entitlement, and pay scale. The goal is to meet production targets and retain valued customers. The analyst is advised to perform comprehensive analysis and calculations to prepare for potential questions from the managing director and production manager. The suggestion is to start with a multiple regression analysis using a software like SPSS.
  • #1
soph.
4
0
Looking for guidance on the following: The text outlines a company's problem, and ways to solve it. Results are hypothetically to be presented to the 'Board of Directors' ina week's time. Help please!

Cow Industrials Ltd is a medium sized Engineering Company. A number of their regular customers have made complaints over the last few orders they have received from Cow Ltd. These complaints are as follows:

• Products have been of a substandard nature
• Products are arriving late
• A combination of the above

Some of the customers have threatened that if this continues, then they will cancel their future orders and find another local supplier.

Consequently, the Managing Director has asked the Production Manager to investigate this immediately. He has replied, saying that he cannot meet production and deadline targets, because a large number of his workforce is constantly absent. He has done some basic statistical calculations and says there is strong correlation between production and workers attendance. Clearly something must be done about this, as the company does not want to lose their valued customer base.

The company has therefore called you in, the Information Analyst, to help the Production Manager. You are being asked to give advice regarding the absenteeism of the production workforce, and your brief is to analyze certain factors to try and reduce this high absenteeism and therefore increase production.

After an initial discussion with the Production Manager, you have decided to take a representative sample of ten employees and look at three possible factors – the age of the employee, their holiday entitlement and their hourly rate of pay (grade) - that may affect absenteeism. The Production Manager has given you the required data for each employee in your sample:

Employee Days Absent Pay Scale Holiday AGE
Entitlement
A 12 B 25 18
B 14 C 25 57
C 10 B 25 44
D 18 C 20 32
E 6 A 30 21
F 4 A 30 19
G 20 E 20 23
H 19 D 20 39
I 28 E 15 45
J 7 B 30 52
N.B. Employees are paid different hourly rates depending on their grade. These are as follows:

Grade A - £ 10.00 per hour
Grade B - £ 8.00 per hour
Grade C - £ 7.00 per hour
Grade D - £ 6.00 per hour
Grade E - £5.00 per hour
Grade F - £4.75 per hour

In a week’s time, the Production Manager and Managing Director will be asking a variety of questions regarding the above data. You are therefore advised to comprehensively analyze this data and do your calculations.
 
Last edited:
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  • #2
I think, I need to ask - Can production targets be met if attendance is improved? Which is obviously yes, it's fundamental, surely? There's already been stated a positive correlation between production and workers' attendance.

I'm stuck which relationships are relevant and those that are not, for example pay vs attendance. What relevance does holiday entitlement have? Argh!

Thanks for your patience, hehe.
 
  • #4
oops, sorry!

Do you have any suggestions to my problem though?

Thanks!
 
  • #5
soph. said:
oops, sorry!

Do you have any suggestions to my problem though?

Thanks!

I guess I'd start with some sort of multiple regression analysis. I think a package like SPSS should have this function. http://www.statsoft.com/textbook/stmulreg.html
 

1. How did the production problem at Cow Industrials Ltd arise?

The production problem at Cow Industrials Ltd likely arose due to a combination of factors such as inadequate resources, inefficient processes, and lack of proper planning and management. It is important to conduct a thorough analysis to identify the root cause of the problem before implementing any solutions.

2. What are the potential solutions for Cow Industrials Ltd's production problem?

Some potential solutions for Cow Industrials Ltd's production problem may include investing in new technology and equipment, improving the supply chain, optimizing production processes, and implementing better management practices. It is important to evaluate each potential solution carefully and choose the most effective one.

3. How long will it take to solve Cow Industrials Ltd's production problem?

The time it takes to solve Cow Industrials Ltd's production problem will depend on the complexity of the problem and the chosen solutions. It is important to have a realistic timeline and to regularly monitor and adjust the progress to ensure timely and effective implementation of the solutions.

4. How can Cow Industrials Ltd prevent similar production problems in the future?

To prevent similar production problems in the future, Cow Industrials Ltd should regularly review and improve their processes, invest in continuous training for employees, closely monitor production data, and continuously adapt to changes in the market and industry. It is also crucial to have a crisis management plan in place to quickly address any potential production issues.

5. How can Cow Industrials Ltd ensure the successful implementation of the chosen solutions?

Cow Industrials Ltd can ensure the successful implementation of the chosen solutions by involving all relevant stakeholders in the decision-making process, clearly communicating the goals and expectations, providing necessary resources and support, and regularly monitoring and evaluating the progress and results. It is also important to have a contingency plan in case any unforeseen challenges arise during the implementation process.

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