INSTITUTE OF BUSINESS

MANAGEMENT

QUANTITATIVE ANALYSIS
FOR DECISION MAKING
TERM REPORT
PREPARED BY
Muhammad Aqib Aziz Khan (20010)

SUBMITTED TO
Mr, Muhammad Shahbaz

Introduction:
Report under consideration is based on application of various statistical analysis techniques on data
set acquired from Maintenance Department of a company
Data set is used in this report is extracted from SAP. It contains maintenance orders and other
related details. Analysis of this data set would be helpful in achieving following objectives:

Identification of machines with high maintenance costs.

Identification of machines with high maintenance frequency.
Comparison of maintenance costs among various units.
Analysis of most frequent types of maintenance work performed.

Variables:
Following is brief description of variables contained in the data set:
1. Order: Order (Order Number) is a unique number assigned to every maintenance work
performed. It may serve as primary key also.
2. Description: Short text containing brief description of maintenance operation
3. Equipment: Equipment tag is unique alpha-numeric value assigned to every
machine/equipment.
4. Description of technical object: It is the text describing Equipment Tag.
5. Main WorkCentre: Main WorkCentre is the department/unit by which the job is
performed.
6. Order Type: Code that defines type of maintenance order.
7. Priority Text: It describes the priority of job to be performed.
8. Created On: Date on which maintenance order is created.
9. Total Sum Plan: Amount in rupees planned for maintenance work.
10. Total Sum Actual: Amount in rupees incurred for maintenance work.
11. Problem Type: Rotating or Static problem
Data Optimization:

Above mentioned table is descriptive analysis of Planned and Actual costs of maintenance orders.
Following are the results concluded from above table:
Data is widely spread.
Value of skewness shows that data is right skewed.
As our main concern is actual cost incurred on any maintenance activity, we will focus on Total
sum (actual)

Box and Whisker Plot and Frequency Histogram above infers that data contains outliers which
needs to be eliminated and discussed separately.
By analysing Box and Whisker Plot, highest values may be eliminated, however this resulted in
generating new outliers. After multiple iterations it is concluded that values less than Rs 10,000 are
less significant and may be eliminated. More over only two extreme outliers on higher side were
also eliminated and discussed separately. This resulted in normally distributed data. Detailed
analysis of various variables is performed in up-coming sections.
Descriptive Analysis:

Above mentioned is the descriptive analysis table of Total Sum (actual) containing mean, range,
Std. deviation and skewness of the data set. Value of skewness depicts that data is normally
distributed.
Charts:
Frequency Polygon:
Frequency analysis of equipment tags is performed to find out which equipment has highest
maintenance frequency. Results indicate that KGT-306-A i.e. Syn. Gas Compressor has highest
maintenance frequency and needs technical evaluation.

Box and Whisker Plot and Frequency Polygon:

Box and whisker plot of Total actual cost illustrated below. It reveals that no outliers present in the
data. More over data is slightly right skewed as shown in both charts below.

Normality Test:

Above table shows normality test for Actual Cost, unit wise. Sig. value of Shapiro-Wilk test shows
that actual cost incurred by eqptamm is not normally distributed. Given below are the normal Q-Q
Plots of all three categories.

One Sample T Test:

The below test was conducted on the test value of 50000 at a confidence interval of 95%. Since the
significance value is not less than the level of significance (0.774> 0.05) therefore the mean is equal
to 50000.

Independent Sample T Test:

Independent Sample T Test was performed on a confidence interval of 95% in order to check
whether the means of actual cost incurred on rotating and static type of problems are same or not.
Since significance value of levene test is not less than level of significance (0.269 > 0.05) therefore
population variances are equal between both categories. Levenes test indicates that equal variances
case should be selected which tells that total cost incurred in both categories are same.

One Way Anova:

The below test was conducted to check whether the cost incurred in three different units is same
or not at confidence interval of 95%. The below table shows that means of profit for all units are
equal (0.187 > 0.05).

Goodness of Fit Test:

The below test is conducted to test whether actual costs incurred are equally distributed or not.
The below test shows that costs are not equally distributed as 0.000 < 0.05.

Independent Test:
The below test was conducted to test that whether actual cost is dependent on problem type or not.
The result shows that both values are independent (0.420> 0.05)

Linear Regression:

Linear regression is performed among Planned and Actual Costs. Table above shows that sig, value
is greater than confidence level i.e. no significant relationship exists.