Boston Electric Generators has been getting many complaints from its major customer, Home Station, about the quality of its shipments of home generators. Daniel Shimshak, the plant manager, is alarmed that a customer is providing him with the only information the company has on shipment quality. He decides to collect information on defective shipments through a form he has asked his drivers to complete on arrival at customers’ stores. The forms for the first 279 shipments have been turned in. They show the following over the past 8 weeks: NO. OF SHIP- REASON FOR DEFECTIVE SHIPMENT NO. OF MENTS INCORRECT INCORRECT SHIP- WITH BILL TRUCK DAMAGED TRUCK WEEK MENTS DEFECTS LOADING LOAD PRODUCT LATE 1 23 5 2 2 1 2 31 8 1 4 1 2 3 28 6 2 3 1 4 37 11 4 4 1 2 5 35 10 3 4 2 1 6 40 14 5 6 3 7 41 12 3 5 3 1 8 44 15 4 7 2 2 Even though Daniel increased his capacity by adding more workers to his normal contingent of 30, he knew that for many weeks he exceeded his regular output of 30 shipments per week. A review of his turnover over the past 8 weeks shows the following: NO. OF NO. OF Total NO OF WEEK NEW HIRES TERMINATIONS WORKERS 1 1 0 30 2 2 1 31 3 3 2 32 4 2 0 34 5 2 2 34 6 2 4 32 7 4 1 35 8 3 2 36 a) Develop a scatter diagram using total number of shipments and number of defective shipments. Does there appear to be any relationship? b) Develop a scatter diagram using the variable “turnover” (number of new hires plus number of terminations) and the number of defective shipments. Does the diagram depict a relationship between the two variables? c) Develop a Pareto chart for the type of defects that have occurred.
