Margin Makers PDI DOE Plan and Results

Margin Makers’ PDI DOE Plan and Results

After mapping the PDI Field Operation process and reviewing the available data, the Margin Makers believe dispatch time is critical to minimizing both price rebates and idle time cost. To adjust the dispatch time, the team needs to have an accurate prediction of travel time to the customer location. They know travel time is a result of distance to the customer and speed (mph) of the Field Operator. They believe Field Operator speed may be determined by vehicle type, package weight, facility location, and time slot and have therefore designed their experimental runs to test these factors. If the team can successfully predict speed, they can choose the least expensive vehicle and adjust the dispatch time accordingly.

The team set up a full factorial experimental design with two replicates using Vehicle, Time Slot, Facility and Weight as factors. They randomized the run order and recorded MPH as the response variable. Their results and analysis follow:

Factorial Fit: MPH versus Vehicle, Time Slot, Facility, Weight Estimated Effects and Coefficients for MPH (coded units)[FK1]

S = 0.856227 R-Sq = 99.18% R-Sq(adj) = 98.41%

Analysis of Variance for MPH (coded units)

Unusual Observations for MPH

R denotes an observation with a large standardized residual.

Estimated Coefficients for MPH

(using data in uncoded units)

[FK1] AU: Please review this table carefully to ensure that it is still okay after editing and coding.