MGT 455 WEEK 3 PROBLEM 6 16
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:
REASON FOR DEFECTIVE SHIPMENT
WEEK NO.OF NO.OF SHIPMENTS INCORRECT BILL INCORRECT DAMAGED TRUCKS
SHIPMENTS WITH DEFECTS OF LANDING TRUCK 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:
WEEK NO. OF NEW NO. OF TOTAL NO.OF
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.
USA 
India