To: Devin Dalton, CEOFrom: Engineering Team 18RE: Shipping IssuesDate: September 18, 2013The direct user, the Logistics Manager of D. Dalton Technologies, needs a clear and effective way to rank the available shipping companies. This ranking will put one company above the rest, one that will be the most reliable and best overall choice for his company, D. Dalton Technologies, to use when shipping their products from Ceramica to Bowman in keeping with their just-in-time strategy. Along with a procedure the Logistics Manager needs an example of the procedure carried out on sample data and reasoning for each step in the procedure.Our procedure is designed to first eliminate the companies that are the most consistently late, and then rank the remaining companies based off of how late they are when they are late. A successful procedure will allow a single company to be chosen that can get the materials to Bowman with the best accuracy in delivery time to coincide with the Just-In-Time production plan.It is appropriate to use our procedure when there is a sufficient amount of data to accurately represent each company (for example, 100 shipping times). We are assuming the data given for each shipping company is representative of their normal delivery delays. However, certain limitations exist in that only being provided the data on delivery times, our procedure cannot factor in other criteria such as cost, ease of access and use, and security of packages.The procedure is as follows:1. Calculate the total number times that each of the shipping companies delivered their package late by counting the number of non-zero data points in a data-analyzing program, such as Excel.2. Rank the companies for the first time based on the sums from the previous step, giving the company with the lowest total rank number 1, the second lowest number 2, and so on. This ranking will correspond with how many points the company is awarded for this round.Note: If two companies tie for a ranking at any point in calculations, for example for first place, give them both that first ranking. Give the next company the third ranking, number three, as though the second ranking was filled without the tie.3. Now calculate the mean, or average time the company was late, for each. Total the hours a company delivered the package over the time limit, then divide by the number of deliveries the company made, according to the data set provided.Note: Round the calculations to two decimal places to take account of significant figures.4. Rank the companies a second time, again giving the company with the lowest mean value the rank number 1, the second lowest mean rank number two, and so on. Again assign corresponding points according to each company’s rank.5. Now calculate the median late time for each company. Arrange the data set for a company in numerical order, and alternately cross off the highest and lowest value until a middle value is reached. This is the median. If there are two values left at the end, find the median by adding them together and dividing by two.6. Rank the companies a third and final time by again assigning the highest ranking to the company with the lowest median value. The company ranked number one will receive one point, the second ranked will receive two points, and so on in the same way as the other steps.7. Add the points that each of the companies earned from the three different rankings for a total point value for each company. Whichever company has the lowest total points will have gained the best overall rank. In case of a tie, use the ranking for the number of late deliveries as the tie-breaker. If there is still a tie, use the median ranking as the tie-breaker.Here is a sample procedure carried out:The rationale behind finding the total number of times late was that the most important factor is being on time, as hours or even minutes can make the difference. No matter how excessively or minutely late a company was, the Just-In-Time production plan suffers. This is also why this total was used as the tie-breaker for the final selection. The procedure also finds the median because that more accurately finds the center of a data set in the case that the set is skewed one way or the other. Mean is also a useful descriptive statistic, and so was used as well. Mean and median both find center values, so they are both important and ranked in this procedure. The use of standard deviation was not included in the procedure because this descriptive statistic fails to provide useful data on how often the companies are on time or late, rather it merely states how consistent they were either way.A point system was then implemented, with the rationale that all these methods would have a say in the final selection process and the company that had ranked well across the board would turn up at the top in the end.To: Devin Dalton, CEOFrom: Engineering Team 18RE: Shipping Issues Date: September 18, 2013The direct user, the Logistics Manager of D. Dalton Technologies, needs a clear and effective way to rank the available shipping companies. This ranking will put one company above the rest, one that will be the most reliable and best overall choice for his company, D. Dalton Technologies, to use when shipping their products from Ceramica to Bowman in keeping with their just-in-time strategy. Along with a procedure the Logistics Manager needs an example of the procedure carried out on sample data and reasoning for each step in the procedure. Our procedure is designed to first eliminate the companies that are the most consistently late, and then rank the remaining companies based off of how late they are when they are late. A successful procedure will allow a single company to be chosen that can get the materials to Bowman with the best accuracy in delivery time to coincide with the Just-In-Time production plan.It is appropriate to use our procedure when there is a sufficient amount of data to accurately represent each company (for example, 100 shipping times). We are assuming the data given for each shipping company is representative of their normal delivery delays. However, certain limitations exist in that only being provided the data ondelivery times, our procedure cannot factor in other criteria such as cost, ease of accessand use, and security of packages.The procedure is as follows:1. Calculate the total number times that each of the shipping companies delivered their package late by counting the