Data Analysis and Reporting

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Running Head: DATA ANALYSIS AND REPORTING 1

DATA ANALYSIS AND REPORTING 2

After analysis of the Corporate and Operations Department data for 2017 using SAS software in the excel, the following are the findings that will use to inform on the areas that need to reduce cost; labour cost in the area of the sales was $500,000 per month, with total of 3195 transactions in a year, maximum number of the transactions being 705 and minimum of 50 and with a total of 50 employees who were paid monthly. Area of the marketing had a labour cost of $240,000 per month, a number of the transaction in the year was 18000 with constant transactions of 1500 per month and with a total of 60 employees. Area of product management had 55 employees, labour cost of $275,000 per month, the minimum transaction of 1000 and a maximum transaction of 4000. Area of order process had a labour cost of $1,800,000 per month, 2,280,000 transactions per year, minimum of 150,000 and maximum of 220,000 transactions. Lastly, the area of the transaction process, had a labour cost of $1, 200, 000, minimum transactions being 200,000 and maximum transactions 500,000 and the number of employees was 30.

Further analysis reveals that labour cost accounts for 75% of the total cost and therefore, this is one of the areas to consider in order reducing cost in the operations. From the analysis, it has been clear that labour cost per month in each area is constant and employees in each area are constant in each given month. However, the number of the transaction carried seem to vary where have identified with some months postings a high number of the transactions and others recording very low number of the transactions. The variances simply show that employees are not efficient in their duties and operations and therefore, it is of great important some be laid off and be left with an optimal number that will ensure operations run smoothly to the better reduce the labour cost that is taking three-quarter of the total cost. Also, on the same area of the labour cost, I would recommend remunerations to be on wages and not salary basis, since this will ensure that workers are paid for the value of their services and their productivity (Noe et al….,2017).

Another area of waste that have identified that can be reduced is the repair of the errors cost. According to the findings, there a total of 277 errors that have been committed which account for $2,350,529. One of the things that I find very absurd is that, even after the error has occurred, there is a repeat and increase of errors in the following months. I, therefore, do recommend that correctional measure should be taken where error follow-up forms should be examined by the quality control supervisor, administrative supervisor and the head of the department. The causes of errors should be investigated adequately and revocable errors corrected to avoid a repeat of them hence reduce wastage in repairing them in future ( Tenera & Pinto, 2014).

References

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Tenera, A., & Pinto, L. C. (2014). A Lean Six Sigma (LSS) project management improvement model. Procedia-Social and Behavioral Sciences, 119, 912-920.