| Corporate Sales & Operations Dept. Data 2017 |
| Order | Dept | Area | Month | # of Employees | Labor Costs | # of Process Transactions | # Process Errors | Error Repair Cost | Utility Costs | Facility Costs | Supply Costs | Raw Material Costs | Shipping Costs | T & E | Revenue | Monthly costs |
| 1 | 999 | Sales | 1 | 50 | 500,000.00 | 100 | 10 | 15,000.00 | 500.00 | 50,000.00 | 200.00 | 0.00 | 0.00 | 6,000.00 | 1,300,000.00 | 521,710.00 |
| 2 | 999 | Sales | 2 | 50 | 500,000.00 | 100 | 1 | 20,000.00 | 500.00 | 50,000.00 | 220.00 | 0.00 | 0.00 | 7,500.00 | 1,300,000.00 | 528,221.00 |
| 3 | 999 | Sales | 3 | 50 | 500,000.00 | 100 | 1 | 2,050.00 | 500.00 | 50,000.00 | 200.00 | 0.00 | 0.00 | 7,500.00 | 1,300,000.00 | 510,251.00 |
| 4 | 999 | Sales | 4 | 50 | 500,000.00 | 190 | 1 | 1,000.00 | 400.00 | 50,000.00 | 240.00 | 0.00 | 0.00 | 8,000.00 | 300,000.00 | 509,641.00 |
| 5 | 999 | Sales | 5 | 50 | 500,000.00 | 200 | 25 | 1,000,000.00 | 400.00 | 50,000.00 | 600.00 | 0.00 | 0.00 | 20,000.00 | 26.000.000.00 | 1,521,025.00 |
| 6 | 999 | Sales | 6 | 50 | 500,000.00 | 700 | 10 | 300.00 | 800.00 | 50,000.00 | 250.00 | 0.00 | 0.00 | 7,000.00 | 1,300,000.00 | 508,360.00 |
| 7 | 999 | Sales | 7 | 50 | 500,000.00 | 705 | 10 | 45,000.00 | 800.00 | 50,000.00 | 120.00 | 0.00 | 0.00 | 7,000.00 | 12,300,000.00 | 552,930.00 |
| 8 | 999 | Sales | 8 | 50 | 500,000.00 | 200 | 5 | 1,500.00 | 800.00 | 50,000.00 | 160.00 | 0.00 | 0.00 | 12,000.00 | 1,300,000.00 | 514,465.00 |
| 9 | 999 | Sales | 9 | 50 | 500,000.00 | 200 | 40 | 1,200.00 | 400.00 | 50,000.00 | 200.00 | 0.00 | 0.00 | 10,000.00 | 1,300,000.00 | 511,840.00 |
| 10 | 999 | Sales | 10 | 50 | 500,000.00 | 250 | 1 | 1,400.00 | 500.00 | 50,000.00 | 200.00 | 0.00 | 0.00 | 4,000.00 | 1,300,000.00 | 506,101.00 |
| 11 | 999 | Sales | 11 | 50 | 500,000.00 | 400 | 40 | 1,200,000.00 | 500.00 | 50,000.00 | 200.00 | 0.00 | 0.00 | 8,000.00 | 28,000,000.00 | 1,708,740.00 |
| 12 | 999 | Sales | 12 | 50 | 500,000.00 | 50 | 1 | 2,800.00 | 500.00 | 50,000.00 | 1,200.00 | 0.00 | 0.00 | 13,000.00 | 1,300,000.00 | 517,501.00 |
| 13 | 999 | Marketing | 1 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 4,000.00 | 1,200,000.00 | 249,605.00 |
| 14 | 999 | Marketing | 2 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 6,000.00 | 1,200,000.00 | 251,605.00 |
| 15 | 999 | Marketing | 3 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 6,500.00 | 1,200,000.00 | 252,105.00 |
| 16 | 999 | Marketing | 4 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 400.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 8,000.00 | 1,200,000.00 | 253,505.00 |
| 17 | 999 | Marketing | 5 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 400.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 22,000.00 | 1,200,000.00 | 267,505.00 |
| 18 | 999 | Marketing | 6 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 800.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 6,500.00 | 1,200,000.00 | 252,405.00 |
| 19 | 999 | Marketing | 7 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 800.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 6,525.00 | 1,200,000.00 | 252,430.00 |
| 20 | 999 | Marketing | 8 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 800.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 11,000.00 | 1,200,000.00 | 256,905.00 |
| 21 | 999 | Marketing | 9 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 400.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 10,000.00 | 1,200,000.00 | 255,505.00 |
| 22 | 999 | Marketing | 10 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 11,000.00 | 1,200,000.00 | 256,605.00 |
| 23 | 999 | Marketing | 11 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 20,000.00 | 1,200,000.00 | 265,605.00 |
| 24 | 999 | Marketing | 12 | 60 | 240,000.00 | 1500 | 5 | 5,000.00 | 500.00 | 35,000.00 | 100.00 | 0.00 | 0.00 | 12,000.00 | 1,200,000.00 | 257,605.00 |
| 25 | 999 | Product Mgmt | 1 | 55 | 275,000.00 | 2000 | 0 | 0.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,500.00 | 1,500,000.00 | 277,100.00 |
| 26 | 999 | Product Mgmt | 2 | 55 | 275,000.00 | 2500 | 0 | 0.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,200.00 | 1,500,000.00 | 276,800.00 |
| 27 | 999 | Product Mgmt | 3 | 55 | 275,000.00 | 2000 | 0 | 0.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,000.00 | 1,500,000.00 | 276,600.00 |
| 28 | 999 | Product Mgmt | 4 | 55 | 275,000.00 | 3000 | 0 | 0.00 | 400.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 17,000.00 | 1,500,000.00 | 292,500.00 |
| 29 | 999 | Product Mgmt | 5 | 55 | 275,000.00 | 4000 | 0 | 0.00 | 400.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 2,000.00 | 1,500,000.00 | 277,500.00 |
| 30 | 999 | Product Mgmt | 6 | 55 | 275,000.00 | 3000 | 8 | 40.00 | 800.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 4,000.00 | 1,500,000.00 | 279,948.00 |
| 31 | 999 | Product Mgmt | 7 | 55 | 275,000.00 | 2800 | 7 | 35.00 | 800.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 3,000.00 | 1,500,000.00 | 278,942.00 |
| 32 | 999 | Product Mgmt | 8 | 55 | 275,000.00 | 2900 | 10 | 50.00 | 800.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,000.00 | 1,500,000.00 | 276,960.00 |
| 33 | 999 | Product Mgmt | 9 | 55 | 275,000.00 | 3000 | 0 | 0.00 | 400.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,000.00 | 1,500,000.00 | 276,500.00 |
| 34 | 999 | Product Mgmt | 10 | 55 | 275,000.00 | 3100 | 0 | 0.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,000.00 | 1,500,000.00 | 276,600.00 |
| 35 | 999 | Product Mgmt | 11 | 55 | 275,000.00 | 2000 | 10 | 50.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,000.00 | 1,500,000.00 | 276,660.00 |
| 36 | 999 | Product Mgmt | 12 | 55 | 275,000.00 | 1000 | 10 | 50.00 | 500.00 | 40,000.00 | 100.00 | 0.00 | 0.00 | 1,900.00 | 1,500,000.00 | 277,560.00 |
| 37 | 999 | Order Process | 1 | 40 | 180,000.00 | 150,000 | 5 | 10.00 | 500.00 | 20,000.00 | 100.00 | 20,000.00 | 120.00 | 500.00 | 0.00 | 201,235.00 |
| 38 | 999 | Order Process | 2 | 40 | 180,000.00 | 165,000 | 4 | 8.00 | 500.00 | 20,000.00 | 100.00 | 21,000.00 | 120.00 | 500.00 | 0.00 | 202,232.00 |
| 39 | 999 | Order Process | 3 | 40 | 180,000.00 | 180,000 | 0 | 0.00 | 500.00 | 20,000.00 | 100.00 | 21,000.00 | 120.00 | 500.00 | 0.00 | 202,220.00 |
| 40 | 999 | Order Process | 4 | 40 | 180,000.00 | 185,000 | 0 | 0.00 | 400.00 | 20,000.00 | 100.00 | 22,000.00 | 120.00 | 500.00 | 0.00 | 203,120.00 |
| 41 | 999 | Order Process | 5 | 40 | 180,000.00 | 190,000 | 0 | 0.00 | 400.00 | 20,000.00 | 100.00 | 22,000.00 | 120.00 | 500.00 | 0.00 | 203,120.00 |
| 42 | 999 | Order Process | 6 | 40 | 180,000.00 | 200,000 | 0 | 0.00 | 800.00 | 20,000.00 | 100.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 196,520.00 |
| 43 | 999 | Order Process | 7 | 40 | 180,000.00 | 210,000 | 0 | 0.00 | 800.00 | 20,000.00 | 100.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 196,520.00 |
| 44 | 999 | Order Process | 8 | 40 | 180,000.00 | 180,000 | 0 | 0.00 | 800.00 | 20,000.00 | 100.00 | 21,000.00 | 120.00 | 500.00 | 0.00 | 202,520.00 |
| 45 | 999 | Order Process | 9 | 40 | 180,000.00 | 190,000 | 0 | 0.00 | 400.00 | 20,000.00 | 100.00 | 22,000.00 | 120.00 | 500.00 | 0.00 | 203,120.00 |
| 46 | 999 | Order Process | 10 | 40 | 180,000.00 | 200,000 | 7 | 14.00 | 500.00 | 20,000.00 | 100.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 196,241.00 |
| 47 | 999 | Order Process | 11 | 40 | 180,000.00 | 210,000 | 6 | 12.00 | 500.00 | 20,000.00 | 100.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 196,238.00 |
| 48 | 999 | Order Process | 12 | 40 | 180,000.00 | 220,000 | 5 | 10.00 | 500.00 | 20,000.00 | 100.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 196,235.00 |
| 49 | 999 | Trans. Process | 1 | 30 | 120,000.00 | 300,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| 50 | 999 | Trans. Process | 2 | 30 | 120,000.00 | 300,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| 51 | 999 | Trans. Process | 3 | 30 | 120,000.00 | 320,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| 52 | 999 | Trans. Process | 4 | 30 | 120,000.00 | 310,000 | 0 | 0.00 | 400.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,090.00 |
| 53 | 999 | Trans. Process | 5 | 30 | 120,000.00 | 280,000 | 0 | 0.00 | 400.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,090.00 |
| 54 | 999 | Trans. Process | 6 | 30 | 120,000.00 | 500,000 | 0 | 0.00 | 800.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,490.00 |
| 55 | 999 | Trans. Process | 7 | 30 | 120,000.00 | 480,000 | 0 | 0.00 | 800.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,490.00 |
| 56 | 999 | Trans. Process | 8 | 30 | 120,000.00 | 400,000 | 0 | 0.00 | 800.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,490.00 |
| 57 | 999 | Trans. Process | 9 | 30 | 120,000.00 | 300,000 | 0 | 0.00 | 400.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,090.00 |
| 58 | 999 | Trans. Process | 10 | 30 | 120,000.00 | 350,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| 59 | 999 | Trans. Process | 11 | 30 | 120,000.00 | 500,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| 60 | 999 | Trans. Process | 12 | 30 | 120,000.00 | 200,000 | 0 | 0.00 | 500.00 | 20,000.00 | 70.00 | 15,000.00 | 120.00 | 500.00 | 0.00 | 136,190.00 |
| | | | | | | 6572495 | 277 |
| Assumptions About the Data and Work Functions | | | | | | | | | Areas |
| | | | | | | | | | Sales |
| 1. Sales, Marketing and Product Areas - Employees primarily have offices on higher floors in the building | | | | | | | | | Marketing |
| 2. Processing Areas work on the open floors - lower in the building where there is lower rent | | | | | | | | | Product Management |
| 3. Thinking like a true Six Sigma person, identify the % of errors and what could be possible causes of the errors | | | | | | | | | Order Processing |
| 4. Your Management would like to see pictures, graphs, trends and explanations for your choices | | | | | | | | | Transaction Processing |
| 5. Think about the types of errors that might occur in certain areas and why are some more costly |
| 6. What is your Hypothesis - Just by eyeballing the data? |
| 7. Accept or Reject Hypothesis based on data |
| 8. All areas above are in the same department but the areas have distinct functions. Some have Profit Centers and others have just Cost Centers. What does that mean? |
| 9. Consider the monthly salary per employee |
| Percentage of errors | | | % |
| Total process transactions | | 6572495 |
| Total Errors commited | | 277 |
| Errors on Trans Process | | 0 | 0 |
| Errors on order process | | 27 | 9.7472924188 |
| Errors on product mngt | | 45 | 16.2454873646 |
| Erors on marketing | | 60 | 21.6606498195 |
| Errors on sales | | 145 | 52.3465703971 |
| % of errors to # process transaction | | | 0.0042145334 |
| Some causes of these errors are lack of the training especially on area of sales where errors are many to help identify appropriate corrective actions for human errors,lack of the management commitment to ensure offers maximum support to all areas, lack of the effective correctional system because we find errors repeating in the following months, lack of the sales follow up, unrealistic forecasting, confusion of tactic and startegy on area of marketing and lastly |
| Descriptive Analysis |
| Total Labour cost | 15,780,000.00 |
| Total No. Of employees | 2820 |
| Total errors repair costs | 2,350,529.00 |
| Shipping costs | 2,880.00 |
| total utility cost | 33,000.00 |
| Total facility cost | 1,980,000.00 |
| total supply cost | 8,230.00 |
| T&E | 281,125.00 |
| Total Revenue | 83,400,000.00 |
| Cost Analysis | labour | repair | utility | facility | supply | Raw material | Shipping | T&E | Total cost | % of the cost | % of the repair cost for sales |
| Sales area | 6,000,000.00 | 2,290,250.00 | 6,600.00 | 600,000.00 | 3,790.00 | 0.00 | 0.00 | 110,000.00 | 9,010,640.00 | 43.24 | 25.4171734749 |
| marketing | 2,880,000.00 | 60,000.00 | 6,600.00 | 420,000.00 | 1,200.00 | 0.00 | 0.00 | 123,525.00 | 3,491,325.00 | 16.75 |
| Product Mngt | 3,300,000.00 | 225.00 | 6,600.00 | 480,000.00 | 1,200.00 | 0.00 | 0.00 | 35,600.00 | 3,823,625.00 | 18.35 |
| Order Process | 2,160,000.00 | 54.00 | 6,600.00 | 240,000.00 | 1,200.00 | 224,000.00 | 1,440.00 | 6,000.00 | 2,639,294.00 | 12.66 |
| Transaction process | 1,440,000.00 | 0.00 | 6,600.00 | 240,000.00 | 840.00 | 180,000.00 | 1,440.00 | 6,000.00 | 1,874,880.00 | 9.00 |
| | 15,780,000.00 |
| % of labour cost to total cost | 75.72 | 2,350,529.00 |
| | Draw Pareto Diagram | Costs | % of total | cumulative percent | | | | | 20,839,764.00 |
| | Sales | 9,010,640.00 | 43.2377257247 | 43.2377257247 |
| | Product managent | 3,823,625.00 | 18.3477365675 | 61.5854622922 |
| | Marketing | 3,491,325.00 | 16.7531887597 | 78.3386510519 |
| | Order process | 2,639,294.00 | 12.6647019611 | 91.003353013 |
| | Transaction process | 1,874,880.00 | 8.996646987 | 100 |
| | Total cost | 20,839,764.00 | 100 |
| | Areas | costs | Cumulative percent | | 80% marker |
| | sales | 9,010,640.00 | 43.2377257247 | | 80 |
| | product management | 3,823,625.00 | 61.5854622922 | | 80 |
| | marketing | 3,491,325.00 | 78.3386510519 | | 80 |
| | order process | 2,639,294.00 | 91.003353013 | | 80 |
| | Transaction process | 1,874,880.00 | 100 | | 80 |
| | Pareto Diagram of Cost in areas in the Department |
| Considering the pareto chart above, it clearly shows the major area that demands the attention is sales. It has the highest count which is the then folowed by the product management and then marketing follow in the third position. If three main counts will be addressed, the management will have dealt with about 80% of the costs. looking at the cumulative line, it is steep which simply show that the first three problems rapidly add to a high percentage of the total cost. |
| Monthly Cost Analsyis for the five departments and revenue |
| months | sales | marketing | product management | order process | transaction process |
| 1 | 521,710.00 | 249,605.00 | 277,100.00 | 201,235.00 | 136,190.00 |
| 2 | 528,221.00 | 251,605.00 | 276,800.00 | 202,232.00 | 136,190.00 |
| 3 | 510,251.00 | 252,105.00 | 276,600.00 | 202,220.00 | 136,190.00 |
| 4 | 509,641.00 | 253,505.00 | 292,500.00 | 203,120.00 | 136,090.00 |
| 5 | 1,521,025.00 | 267,505.00 | 277,500.00 | 203,120.00 | 136,090.00 |
| 6 | 508,360.00 | 252,405.00 | 279,948.00 | 196,520.00 | 136,490.00 |
| 7 | 552,930.00 | 252,430.00 | 278,942.00 | 196,520.00 | 136,490.00 |
| 8 | 514,465.00 | 256,905.00 | 276,960.00 | 202,520.00 | 136,490.00 |
| 9 | 511,840.00 | 255,505.00 | 276,500.00 | 203,120.00 | 136,090.00 |
| 10 | 506,101.00 | 256,605.00 | 276,600.00 | 196,241.00 | 136,190.00 |
| 11 | 1,708,740.00 | 265,605.00 | 276,660.00 | 196,238.00 | 136,190.00 |
| 12 | 517,501.00 | 257,605.00 | 277,560.00 | 196,235.00 | 136,190.00 |
| Total | 8,410,785.00 | 3,071,385.00 | 3,343,670.00 | 2,399,321.00 | 1,634,880.00 |
| considering the trend analysis of the cost in five areas, they all follow the same pattern. During the first three months, they are constant and on may they increase to the pick. However, they all decrease in the month June, remain within the constant range until the tenth month where they all shoot up in the 11th month and later, they decrease on the 12th month. |
| Mothly Revenue analysis |
| Month | Sales | marketing | product | order process | transaction process |
| 1 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 2 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 3 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 4 | 300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 5 | 26,000,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 6 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 7 | 12,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 8 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 9 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 10 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 11 | 28,000,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| 12 | 1,300,000.00 | 1,200,000.00 | 1,500,000.00 | 0.00 | 0.00 |
| Considering revenue analysis within the department, it is only in three areas that there is revenue generation which are sales, marketing and product management while order and transaction process records zero reveneu for the in all twelve months. For the sales, 5th and 11th month records highest revenue , where on the same months, cost incurred is highest. However, for marketing and product management areas, they have constant revenue for all 12 months. |
| Monthly Profit Analysis | Sales | marketing | product management | Order process | Transaction process |
| 1 | 778,290.00 | 950,395.00 | 1,222,900.00 | -201,235.00 | -136,190.00 |
| 2 | 771,779.00 | 948,395.00 | 1,223,200.00 | -202,232.00 | -136,190.00 |
| 3 | 789,749.00 | 947,895.00 | 1,223,400.00 | -202,220.00 | -136,190.00 |
| 4 | -209,641.00 | 946,495.00 | 1,207,500.00 | -203,120.00 | -136,090.00 |
| 5 | 24,478,975.00 | 932,495.00 | 1,222,500.00 | -203,120.00 | -136,090.00 |
| 6 | 791,640.00 | 947,595.00 | 1,220,052.00 | -196,520.00 | -136,490.00 |
| 7 | 11,747,070.00 | 947,570.00 | 1,221,058.00 | -196,520.00 | -136,490.00 |
| 8 | 785,535.00 | 943,095.00 | 1,223,040.00 | -202,520.00 | -136,490.00 |
| 9 | 788,160.00 | 944,495.00 | 1,223,500.00 | -203,120.00 | -136,090.00 |
| 10 | 793,899.00 | 943,395.00 | 1,223,400.00 | -196,241.00 | -136,190.00 |
| 11 | 26,291,260.00 | 934,395.00 | 1,223,340.00 | -196,238.00 | -136,190.00 |
| 12 | 782,499.00 | 942,395.00 | 1,222,440.00 | -196,235.00 | -136,190.00 |
| Total | 68,589,215.00 | 11,328,615.00 | 14,656,330.00 | -2,399,321.00 | -1,634,880.00 | 90,539,959.00 |
| From the above analysis, Sales recorded highest profit, followed by product management and then marketing department. Other areas which are Order process and Transaction did not record a single value of the profit buit rather recorded losses. In this case, would therefore conclude that order and transaction process were cost centres while sales, marketing and product managmenty were profit centers. However, though we had two cost centers, the department was able to make a profit of 90,539,959. |
| Quick view of each area in department depending on three factors which are cost, revenue and profits |
| Area of sales |
| month | costs | revenue | profit |
| 1 | 521,710.00 | 1,300,000.00 | 778,290.00 |
| 2 | 528,221.00 | 1,300,000.00 | 771,779.00 |
| 3 | 510,251.00 | 1,300,000.00 | 789,749.00 |
| 4 | 509,641.00 | 300,000.00 | -209,641.00 |
| 5 | 1,521,025.00 | 26,000,000.00 | 24,478,975.00 |
| 6 | 508,360.00 | 1,300,000.00 | 791,640.00 |
| 7 | 552,930.00 | 12,300,000.00 | 11,747,070.00 |
| 8 | 514,465.00 | 1,300,000.00 | 785,535.00 |
| 9 | 511,840.00 | 1,300,000.00 | 788,160.00 |
| 10 | 506,101.00 | 1,300,000.00 | 793,899.00 |
| 11 | 1,708,740.00 | 28,000,000.00 | 26,291,260.00 |
| 12 | 517,501.00 | 1,300,000.00 | 782,499.00 |
| Considering the analysis of the area of sales, the department made highest profits on the 5th month, 7th month and 11th month as shown in the above diagram. |
| Area of marketing |
| month | costs | revenue | profit |
| 1 | 249,605.00 | 1,200,000.00 | 950,395.00 |
| 2 | 251,605.00 | 1,200,000.00 | 948,395.00 |
| 3 | 252,105.00 | 1,200,000.00 | 947,895.00 |
| 4 | 253,505.00 | 1,200,000.00 | 946,495.00 |
| 5 | 267,505.00 | 1,200,000.00 | 932,495.00 |
| 6 | 252,405.00 | 1,200,000.00 | 947,595.00 |
| 7 | 252,430.00 | 1,200,000.00 | 947,570.00 |
| 8 | 256,905.00 | 1,200,000.00 | 943,095.00 |
| 9 | 255,505.00 | 1,200,000.00 | 944,495.00 |
| 10 | 256,605.00 | 1,200,000.00 | 943,395.00 |
| 11 | 265,605.00 | 1,200,000.00 | 934,395.00 |
| 12 | 257,605.00 | 1,200,000.00 | 942,395.00 |
| Considering the area of marketing, the departement received almost the constant profit for twelve months and if there was a change, was always by a small margin. The revenue generated by this area of the department was 1,200,000 each month for twelve months. Cost was also almost constant with highest cost reported on 5th month. |
| Area of the product management |
| Month | costs | revenue | profit |
| 1 | 277,100.00 | 1,500,000.00 | 1,222,900.00 |
| 2 | 276,800.00 | 1,500,000.00 | 1,223,200.00 |
| 3 | 276,600.00 | 1,500,000.00 | 1,223,400.00 |
| 4 | 292,500.00 | 1,500,000.00 | 1,207,500.00 |
| 5 | 277,500.00 | 1,500,000.00 | 1,222,500.00 |
| 6 | 279,948.00 | 1,500,000.00 | 1,220,052.00 |
| 7 | 278,942.00 | 1,500,000.00 | 1,221,058.00 |
| 8 | 276,960.00 | 1,500,000.00 | 1,223,040.00 |
| 9 | 276,500.00 | 1,500,000.00 | 1,223,500.00 |
| 10 | 276,600.00 | 1,500,000.00 | 1,223,400.00 |
| 11 | 276,660.00 | 1,500,000.00 | 1,223,340.00 |
| 12 | 277,560.00 | 1,500,000.00 | 1,222,440.00 |
| Considering the area of product managament, revenue was constant for the twelve months with each month recording a revenue of 1,500,000. The profit margin was also almost equal for all month and any registered increase was on a small margin and also the same appeared to the costs. This area of the department was able to take control of its operations and did not regeister a loss any single month. |
| Area of order processing |
| Month | cost | revenue | profits |
| 1 | 201,235.00 | 0.00 | -201,235.00 |
| 2 | 202,232.00 | 0.00 | -202,232.00 |
| 3 | 202,220.00 | 0.00 | -202,220.00 |
| 4 | 203,120.00 | 0.00 | -203,120.00 |
| 5 | 203,120.00 | 0.00 | -203,120.00 |
| 6 | 196,520.00 | 0.00 | -196,520.00 |
| 7 | 196,520.00 | 0.00 | -196,520.00 |
| 8 | 202,520.00 | 0.00 | -202,520.00 |
| 9 | 203,120.00 | 0.00 | -203,120.00 |
| 10 | 196,241.00 | 0.00 | -196,241.00 |
| 11 | 196,238.00 | 0.00 | -196,238.00 |
| 12 | 196,235.00 | 0.00 | -196,235.00 |
| Area of the Order processing was only a cost center within the department. This owed to the fact that, it recorded a zero revenue for the twelve months. However, it incurred cost where they increased with a small marging for the first five months and then decreased. In this regard, this area only registered a loss and it was only a consuming department and its value addition cannot be established on its own unless it is connected with other areas within the department. |
| Area of Transaction processing |
| month | cost | revenue | profits |
| 1 | 136,190.00 | 0.00 | -136,190.00 |
| 2 | 136,190.00 | 0.00 | -136,190.00 |
| 3 | 136,190.00 | 0.00 | -136,190.00 |
| 4 | 136,090.00 | 0.00 | -136,090.00 |
| 5 | 136,090.00 | 0.00 | -136,090.00 |
| 6 | 136,490.00 | 0.00 | -136,490.00 |
| 7 | 136,490.00 | 0.00 | -136,490.00 |
| 8 | 136,490.00 | 0.00 | -136,490.00 |
| 9 | 136,090.00 | 0.00 | -136,090.00 |
| 10 | 136,190.00 | 0.00 | -136,190.00 |
| 11 | 136,190.00 | 0.00 | -136,190.00 |
| 12 | 136,190.00 | 0.00 | -136,190.00 |
| Considering area of the transaction , it is what can be generally be referred as the cost center. This is due to the fact that it records only cost or in other words incurs cost while revenue generation is equal to zero. It is an area that reinforces operation of other areas such as sales, marketing and product management wthin the departnent which generate revenue and posts substantail amount of the profit. However, it is good note that their conribution or rather value addition to the other areas within the department is positive since the overal profit of the department is positive . |
| Hypothesis |
| Null Hypothesis | There is no significant difference between sales and marketing cost |
| Alternative Hypothesis | There is significant difference between sales and marketing cost |
| Testing the Hypothesis |
| level of significance | 5% |
| | sales | marketing | cost per unit sale | cost per unit marketing |
| labour cost | 6,000,000.00 | 2,880,000.00 | 10000 | 4000 |
| repair cost | 2,290,250.00 | 60,000.00 | 15794.8275862069 | 1000 |
| utility | 6,600.00 | 6,600.00 | 550 | 550 |
| facility | 600,000.00 | 420,000.00 | 50000 | 35000 |
| supply | 3,790.00 | 1,200.00 | 315.8333333333 | 100 |
| Raw & materials | 0.00 | 0.00 | 0 | 0 |
| Shipping | 0.00 | 0.00 | 0 | 0 |
| T&E | 110,000.00 | 123,525.00 | 9166.6666666667 | 10293.75 |
| Mean | 1,126,330.00 | 436,415.63 | 10,728.42 | 6,367.97 |
| Variance | 3933556104425 | 870754330458.984 | 251639417.109558 | 127983197.631836 |
| Standard deviation | 2120257.69442571 | 997570.952984718 | 16958.4169446345 | 12094.0692729635 |
| Standard error | | | 6888.601 |
| Degrees of freedom | | | 14 |
| Mean of sales-mean of marketing | | | 4,360.45 |
| Null hypothesis | U1=U2=0 |
| Alternative hypothesis | u1#u2#0 |
| Test statistics | 0.6329945947 |
| P-value | 0.5369403958
Windows User: P-value |
| Concusion; P-value (0.5369) is greater than the level of the significance level hence we fail to reject the null Hypothesis. Therefore, theres is no singinficance difference between f sales and marketing costs. |