This assignment is the first of four steps in completing the business memorandum. This assignment will require you to: Solve a statistics problem – you will solve the statistics problem and include it in this assignment (in the appendix.) – You will use the calculations you complete to inform the recommendation you make for this problem. Answer the problem questions included in the assignment template -through doing this you will articulate an understanding of the problem and what you are being asked to do with that problem, the value of the statistical calculation to addressing the problem, and who the audience you are asked to address is and how their role and status will influence what and how you write your memorandum. Complete a draft of the memorandum – through doing this you will demonstrate an ability to understand and explain a statistical problem in language appropriate to the professional status and background of the audience you are addressing

QUESTION

Writing Requirements

This assignment is the first of four steps in completing the business memorandum. This assignment will require you to:

1. Solve a statistics problem – you will solve the statistics problem and include it in this assignment (in the appendix.) – You will use the calculations you complete to inform the recommendation you make for this problem.
2. Answer the problem questions included in the assignment template -through doing this you will articulate an understanding of the problem and what you are being asked to do with that problem, the value of the statistical calculation to addressing the problem, and who the audience you are asked to address is and how their role and status will influence what and how you write your memorandum.
3. Complete a draft of the memorandum – through doing this you will demonstrate an ability to understand and explain a statistical problem in language appropriate to the professional status and background of the audience you are addressing

To complete this assignment you will use:

• The Business Memorandum Template – open this template and complete the assignment in it
• The Business Memorandum Guide – this will provide guidance on the content of the memorandum
• The problem description below – this is the statistical problem you will address.

You may also reference the Business Memorandum example to see what the completed assignment will look like.

What will you be graded on?

This assignment will be graded on completeness ONLY. However, it is the document on which you will get feedback from your classmates, so you should produce your best work, in order to get the best possible feedback. Be sure to look at the assignment rubric to assure that you have completed the required elements prior to turning in the assignment.

Problem Description

In this section, you will find a description of the problem, requested recommendation and audience for the final memorandum for this assignment.

Problem description:

You are a line manager in Super Car Part’s Eversville manufacturing facility. The company produces automotive parts, and you have responsibility for the line producing steel shafts for the gearbox manufactured in the Eversville Plant. The acceptable dimension of the shaft is 2.5±0.05 inches in diameter with the most desirable product having a diameter of exactly 2.5 inches. The current equipment is approaching the end of its useful life and needs to be replaced. Two vendors are trying to sell your company, Super Car Parts Incorporated, their machines for the shaft-machining task. You have been asked to assess the machines from each vendor, and to make a recommendation for a machine vendor supported by a justification for your decision.

You asked both vendors to supply data on the machining accuracy of their machines for the given task. Both vendors machined 100 shafts, collected data, plotted histograms, fitted the histograms with normal distributions and supplied you with their findings.

Let X= diameter in inches of the gearbox shaft

Aballo Machines Inc.: X has a normal distribution with a mean of 2.49 and a standard deviation of 0.030

Lu Equipment Corp.: X has a normal distribution with a mean of 2.53 and a standard deviation of 0.015

Audience: You are creating this document for the company’s Chief Operating Officer (Links to an external site.), Lenore Georges, and copying the Chief Financial Officer, (Links to an external site.) Anahita Kourosh. Documents involved in major financial decisions like this may also be distributed by the addressees to other executives and the corporate board members.

ANSWER

Memorandum

To: Lenore Georges, Chief Operating Officer

CC: Anahita Kourosh, Chief Financial Officer

From: [Your Name]

Date: [Date]

Subject: Recommendation for Shaft-Machining Machine Vendor

I am writing to provide a recommendation for the vendor to be selected for the replacement of the shaft-machining machine in the Eversville manufacturing facility. After assessing the machines from Aballo Machines Inc. and Lu Equipment Corp., I believe that Lu Equipment Corp. should be chosen as the preferred vendor for this crucial task. 

Problem Understanding

As a line manager responsible for the production of steel shafts for the gearbox in the Eversville Plant, I understand the significance of maintaining precise dimensions for the shafts. The acceptable diameter range for the shafts is 2.5±0.05 inches, with the most desirable diameter being exactly 2.5 inches. The current equipment is nearing the end of its useful life and needs to be replaced. To make an informed decision, I requested data from both vendors regarding the machining accuracy of their machines. Each vendor machined 100 shafts, collected data, plotted histograms, and fitted the histograms with normal distributions.

Statistical Analysis

Vendor 1: Aballo Machines Inc.

Mean (μ) = 2.49 inches

Standard Deviation (σ) = 0.030 inches

Vendor 2: Lu Equipment Corp.

Mean (μ) = 2.53 inches

Standard Deviation (σ) = 0.015 inches

Based on the provided data, it is evident that the mean diameter of shafts machined by Aballo Machines Inc. is slightly below the desired value of 2.5 inches, with a mean of 2.49 inches. On the other hand, Lu Equipment Corp. achieves a mean diameter of 2.53 inches, which is slightly above the desired value. Moreover, the standard deviation of Lu Equipment Corp.’s machining process is significantly lower than that of Aballo Machines Inc. (0.015 inches compared to 0.030 inches). A lower standard deviation indicates a higher precision in the machining process.

Recommendation

Considering the statistical analysis and the criticality of maintaining accurate dimensions for the gearbox shafts, I recommend selecting Lu Equipment Corp. as the preferred vendor for the shaft-machining machine replacement. The slightly higher mean diameter achieved by Lu Equipment Corp., coupled with the significantly lower standard deviation, suggests that their machining process is more precise and consistent. This aligns with the requirement of producing shafts within the 2.5±0.05 inches range, with a focus on the desired diameter of exactly 2.5 inches.

Justification

By choosing Lu Equipment Corp., Super Car Parts Incorporated will benefit from a more reliable and accurate machining process, resulting in a higher proportion of shafts falling within the desired specifications. This improvement in precision will enhance the overall quality of the manufactured gearbox shafts, leading to reduced rework, fewer customer complaints, and improved customer satisfaction. Additionally, the reduced standard deviation indicates that the Lu Equipment Corp. machine’s output will be more consistent, allowing for a smoother production process with fewer variations and disruptions.

Audience and Influence

This memorandum is directed to Lenore Georges, the Chief Operating Officer of Super Car Parts Incorporated, with Anahita Kourosh, the Chief Financial Officer, copied. As major financial decisions like this often involve multiple executives and corporate board members, it is essential to communicate the recommendation clearly and effectively. The audience’s role and status emphasize the need to provide a well-reasoned and evidence-based recommendation that highlights the statistical analysis of the machining accuracy and its implications on product quality and customer satisfaction.

Conclusion

In conclusion, based on the statistical analysis of the machine accuracy provided by the two vendors, I recommend selecting Lu Equipment Corp. as the preferred vendor to replace the shaft-machining machine. Their slightly higher mean diameter and significantly lower standard deviation indicate a more precise and consistent machining process, aligning with the company’s objective of producing gearbox shafts within the desired specifications. This decision will result in improved product quality, reduced rework, and enhanced customer satisfaction.

Please find the detailed statistical calculations in the appendix of this memorandum.

Thank you for your attention to this matter.

Sincerely,

[Your Name]