Extra Credit Project . Hohl Industrial Services is a specialized fabrication facility in Tonawanda, New

Extra Credit Project

Hohl Industrial Services is a specialized fabrication facility in Tonawanda, New York. One of the company’s major sources of revenue is their fabricated line of various metal structural components. These pieces are fabricated and sold to various customers in New York State. Mike Reilly, the plant manager, is concerned about setting appropriate costs for each fabricated item. To investigate, Michael Reilly, gathered information on a random sample of 26 recent fabricated items and develops a model to include the factors thought to be related to the cost of fabrication. The data collected included:

Fabrication : The time in minutes that it takes to add value to piece.

Material Handling : The time in minutes that it takes to perform non value activities to

the material such as unloading material from trucks and staging

for fabrication.

Material Price This is the price paid for the material used in fabrication.

Material Weight : The average weight of the fabricated item. Increased weight affects

handling time.

Cost: Total Cost of fabrication

Develop the model to explore the relations hip between the cost of fabrication and the other variables. Then follow the steps outlined in class to arrive at the final version of the model and conduct all appropriate hypothesis tests at a level of significance of (.05) five percent. Please print only the EXCEL pages that are necessary. Our technique generates a lot of EXCEL sheets but we only use a few so lets save a tree.