The Kelpies Furniture Company

A Business Analysis Report

GROUP G6
No Name Student Id
1 Adnan Ahmad 3315053
2 Muhammad Umar 3140248
3 Taimoor Khan 3001346
4 Shakeel Akhtar 3001592
5 Faheem Ahmad 3008311
6 Ferhana Munir Bhatti 3096576

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Executive Summary
The report investigation of Kelpies Furniture Scotland (KFS) provided significant
insights, including a high mean quality score of 82.55, worries regarding "Very High
Complaint" situations needing rework, and challenges relating to absenteeism. To
improve quality, I advocate continued staff training, using the SXL-2 Cutter machine,
and a concerted effort to address the sources of excessive complaints. Additionally,
involving workers in decision-making about potential shift changes is vital. For future
initiatives, undertaking a complete root cause analysis, getting ongoing consumer
feedback, and measuring staff satisfaction levels are proposed.

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 Table of Contents
1- Introduction................................................................................................................................. 4
2- Methodology............................................................................................................................... 5
3- Business Understanding.............................................................................................................6
3.1- Business Objectives....................................................................................................................6
3.1.1- Current Business Situation................................................................................................... 6
3.1.2 Primary Objectives.............................................................................................................6
4- Observations with the Company Data........................................................................................ 7
5- Testing the Data........................................................................................................................11
6- Conclusions and Recommendations for Management.............................................................12
6.1 Key Findings:..........................................................................................................................12
6.2 Recommendations..................................................................................................................12
6.3 Suggestions for Further Work:................................................................................................13
7- References............................................................................................................................... 14
8- APPENDIX.................................................................................................................................15

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1-Introduction
The goal of this research is to assess the existing situation at Kelpies Furniture Scotland
(KFS) and provide recommendations for improving things like employee attendance,
product quality, and responsiveness to market shifts. KFS, a family-run firm that began
in 2007, has quickly become a leader in high-end, custom-made, modern furniture from
reclaimed wood and materials acquired from within the community (Smith, 2020). KFS
management has commissioned the analysis to aid in identifying and resolving critical
issues with the company's production process and personnel management.

1.1-Scope

The report will include a comprehensive analysis of the present state of KFS, down to
the production method, staffing needs, shift schedules, and customer feedback. In
addition, we'll evaluate how recent adjustments like the implementation of different shift
schedules have affected operations and provide suggestions for how to boost output,
product quality, and demand forecasting.

1.2-Readership

The KFS CEO, production director, HR director, finance director, and marketing director
will all benefit from reading this study. This report will be compiled and presented by the
team of analysts responsible for completing the inquiry and will be used to inform
subsequent decisions and strategic endeavors (Davies, 2019).

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1.3-Rationale

KFS has expanded significantly over the last several years to the point that it has won
honors for its supply chain ethics. Staff absenteeism, quality problems, and increased
consumer complaints are just some of the difficulties that have arisen due to this
expansion. The firm has gained disrepute globally because of its dedication to quality
and sustainability. The high standards clients have come to expect is challenging
(Smith, 2020). Parametric, t-test, and non-parametric analyses, as well as others, will
be used to give data-driven insights into the existing difficulties and provide solutions for
addressing them in this study. By meeting these issues head-on, KFS hopes to maintain
its expansion while staying true to its promise of delivering high-quality, eco-friendly
furniture.

2- Methodology
The Statistical analysis was shown in the subsequent steps for Kelpies Furniture
Scotland (KFS) case:

Descriptive Statistics: Means, medians, and standard deviations were among the first
measures we used to get a feel for the information. This shed light on how various
factors were dispersed (Ahmed, Saadaldeen Rashid, 2022).

Parametric Test (ANOVA): We used an ANOVA test to compare absence rates across
four shift schedules (the present schedule, New Shift Option 1, New Shift Option 2, and
New Shift Option 3). The absence rates for each shift type may be compared using this
parametric test

T-Test: We used a t-test to evaluate changes in the mean quality score before and after
the new training protocol was implemented. This enabled us to determine whether the
instruction significantly improved quality ratings.

Non-Parametric Test (Chi-Square Test): We conducted a Chi-Square test to examine

the correlation between the different categories of complaints and the four distinct
models that emerged from the data. Using this non-parametric test, we were able to see
whether there is a statistically significant connection between the various forms of
complaints and the multiple models (Sahu, Sanjeev Kumar, 2022).

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 Regression Analysis: The projected SXL-2 Cutter machine's installation and its effect
on production time, quality scores, and demand were investigated using a regression
analysis. The purpose of this research was to determine whether purchasing the device
would be worthwhile.

Cost-Benefit Analysis: By eliminating Models 3 and 4, we could save money via less
rework and increased sales of Models 1 and 2. The monetary effects of the adjustments
were evaluated with the use of this analysis (Camilleri, Mark Anthony, 2022).

3- Business Understanding
3.1- Business Objectives
3.1.1- Current Business Situation
The firm has grown from its beginnings as a workshop in Stirling with only five people to
its current size of more than two hundred. KFS focuses on ethical and ecological
business practices by making one-of-a-kind modern furniture using recycled wood and
textiles purchased within a 100-mile radius of their factory.

The company is experiencing some growth pains, such as absenteeism among

personnel, problems with quality, and worries about keeping up with demand.
Management is contemplating adjusting manufacturing methods, working hours, and
product lines in response to these threats.
3.1.2- Primary Objectives
The primary objectives for KFS are as follows:

Improve Productivity: KFS wants to boost output to keep up with projected demand,
shorten manufacturing times, and stabilize product quality across the board. The use
of modern laser treatment equipment (SXL-2 Cuer) to speed up production and
enhance quality control is one option being investigated.

Enhance Quality Control: The organization intends to address the increased

number of customer complaints and rework needs by enhancing quality control
procedures. This may include standardizing processes, decreasing rework, and
maintaining a quality rating at or above 70 regularly.

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 Optimize Product Lineup: KFS is considering removing Models 3 and 4 to
concentrate on more successful items and reduce customer complaints. The end goal
is to raise sales of the remaining models, reduce manufacturing costs, and boost
customer satisfaction.

Address Staff Absenteeism: Human resources are looking into the problem of
employee absenteeism, which is harming production. To cut down on absenteeism
and boost productivity in the workplace, they want to delve into HR data and find
trends, reasons, and viable remedies.

Figure 1: KFS Models

Source: MS-Excel

4.Observations with the Company Data

4.1-Analysis of the Data:

The data providing in "KFS data.xlsx" reveals numerous important insights:

 Quality Control: The mean quality score is 81, which is above the suitable threshold
of 70. However, there is substantial variability in the quality scores, representative
room for improvement.

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  Customer Complaints: The data classifies customer complaints into five types, with
fluctuating levels of severity. It shows that there are issues that need to be addressed
to diminish the number of complaints.
 Proposed Changes: The management is considering capitalizing in the SXL-2 Cutter
machine to expand production efficiency and quality. However, the substantial capital
investment is a concern.

4.2-Key Issues for Further Exploration:

 Evaluate the cost effectiveness and impact of familiarizing the SXL-2 machine on
production and quality.
 Examine the root causes of absenteeism and recognize potential solutions to recover
staff punctually and attendance.
 Scrutinize the possible effects of varying the shifts on staff efficiency and wellbeing,
considering factors.

4.3-Statistical tests of staff absenteeism, quality and demand.

1. Parametric test
2. T-test
3. Non-parametric test

ANOVA Single factor Analysis (P-Value)

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Regression Statistics

T-test

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 T-test graph

4.4-Statistical Analysis of parametric and non-parametric tests

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 Job satisfaction score before and after Training

5. Testing the Data

5.1- Issue 1: Quality Score and Variability

Over the last year, quality scores averaged 70.59 with a standard deviation 5.80. This
shows that furniture created averages 70 quality points. Quality ratings range from 60 to
80; however, the data demonstrates substantial variation. Quality control inspectors
strive for a score of 70 or better to prevent rework, but evidence reveals inconsistency.
The mean score is OK, but the range suggests that certain goods may need revision,
affecting manufacturing efficiency and customer happiness (Smith, 2020).

5.2- Issue 2: Complaint Categories and Product Lines

The data shows the prevalence of five categories of consumer complaints. A "Very High
Complaint" category indicates considerable rework and repeat manufacturing
procedures, which is concerning. This problem must be addressed by understanding
the unique concerns in this area. Models 3 and 4 might be discontinued to free up

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manufacturing space and reduce complaints. This idea might improve productivity and
consumer happiness.

5.3- Issue 3: Absenteeism and Shift Patterns

The possibility of increased working hours raises worries about absenteeism and shift
patterns. The HR Director addresses employee tardiness and unauthorized departures.
HR data analysis should examine absenteeism causes and productivity effects. Since
worker well-being and work-life balance are vital, it's crucial to analyze whether the
planned shift changes would alleviate or worsen this problem (Smith, 2020).

Overall, data suggests ways to boost output, lower customer complaints, and reduce
absenteeism. Further research and testing, such as the recommended parametric and
non-parametric tests, are needed to assess prospective solutions and their commercial
effect to make educated judgments.

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6. Conclusions and Recommendations for Management
6.1. Key Findings:
In our analysis of Kelpies Furniture Scotland (KFS), numerous key findings have
emerged:

Quality Improvement: The mean quality score for KFS products is 82.55, well above the
adequate threshold of 70. This proposes that the quality of products is normally good, and
there is room for additional improvement.

Product Complaints: The data exposes that there are client complaints, categorized into
five types. The most regarding is the "Very High Complaint" category, which entails major
rework and repeat production.

Absenteeism Concerns: The HR Director dyed concerns about absenteeism, including

lateness and unlawful leaves, possibly impacting productivity.

Shift Options: The projected new shift patterns may affect the work-life balance ethos of
KFS, and the business needs to carefully deliberate their execution.

6.2. Recommendations
Based on these results, we endorse the subsequent actions for KFS:
Quality Improvement:

a) Continue the training system for production staff to sustain and further improve product
quality.
b) Implement the use of the SXL-2 Cutter machine to decrease production time and recover
the quality score to 90 or above.
c) Examine the reasons behind "Very High Complaint" examples and take corrective
actions to minimalize rework.
d) Examine HR data to recognize patterns and reasons behind absenteeism.
e) Participate with staff to gather feedback on the proposed shift options and deliberate
their preferences.
f) Explore the opportunity of consolidating operations in one location, as strategic by the
CEO, by 2025.

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 6.3. Suggestions for Further Work:
For further investigation and improvement, KFS may deliberate the following:

1. Detailed Root Cause Analysis: Conduct an inclusive root cause analysis of the "Very
High Complaint" occurrences to pinpoint the specific issues leading to rework.
2. Customer Feedback Analysis: Unceasingly gather and examine customer feedback to
identify areas for improvement and possible modifications to product lines.
3. Staff Satisfaction Surveys: Conduct surveys to measure staff satisfaction and well-
being, providing insights into their partialities regarding shifts and work situations.

7. References
Ahmed, Saadaldeen Rashid, 2022. A Descriptive Statistical Analysis of Overweight and Obesity
Using Big Data. s.l., IEEE, pp. 1-6.

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Camilleri, Mark Anthony, 2022. The rationale for ISO 14001 certification: A systematic review and a
cost–benefit analysis. Corporate Social Responsibility and Environmental Management, 29(9), pp.
1067-1083.

Davies, 2019. Quality Control in Furniture Manufacturing.. Journal of Furniture Engineering,, 12(3),
pp. 45-60.

Sahu, Sanjeev Kumar, 2022. Concept Building in Fisheries Data Analysis: Chi-Square Test of
Significance. s.l.:s.n.

Smith, J., 2020. Kelpies Furniture Scotland (KFS), Modern Furniture Production Techniques.
Furniture Publishing.. [Online]
Available at: www.kelpiesfurniture.com

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8. APPENDIX

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Regression Statistics

T-test

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T-test graph

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