2-Sample t for Decrease Cash-to-cash Cycle Time

Use 2-Sample t to demonstrate that average cash-to-cash cycle time decreases after a process improvement.

This example applies to the Supply Chain Module. For more information, go to www.minitab.com/supply-chain-module.

Example

Cash-to-cash cycle time is the length of time between the purchase of raw materials and payment for a finished product.

In this worksheet, Number of Days contains the cash-to-cash cycle times. Process Change indicates whether the cash-to-cash cycle times are before or after a process improvement.

C1	C2-T
`Number of Days`	`Process Change`
55	Before
62	Before
58	Before
59	Before
42	After
44	After

How-to

Choose Solutions Modules > Functions > Supply Chain KPIs, then select Launch.
Under Cycle Time, select Cash-to-cash cycle time.
Select Decrease cash-to-cash cycle time, then click OK.
Select 2-Sample t, then click OK.
From the drop-down list, select Both samples are in one column.
In Samples, enter the column of cycle time data.
In Sample IDs, enter the column that indicates whether the data are from before or after your process improvement.
Click Options. In Alternative hypothesis, select Difference > hypothesized difference. The hypothesized difference defines your null hypothesis. By default, the hypothesized difference = 0. This one-sided test has greater power to detect whether the cash-to-cash cycle time has decreased after the process change.
Click OK.

Tip

For more information about this analysis, click Help in the main dialog box.