AC Electrical Generators has been getting many complaints from its major customer, Home Station, about the quality of its shipments of home generators. Dominic Campion, the plant manager, is alarmed that a customer is providing him with the only information the company has on shipment quality. He decided to collect information on defective shipments through a form he has asked his drivers to complete on arrival at thecustomers stores. The forms for the first 279 shipments have been returned to him. Table 6a shows the results gathered over the last 8 weeks:

A] To provide Dominic with some indication if there is any relationship between the number of shipments and the number of defects, develop a scatter diagram using total number of shipments and number of defective shipments.

Does there appear to be any relationship between these two variables?

Even though Dominic increased his capacity by adding more workers to his normal contingent of 30 staff, he knew that for many weeks he exceeded his regular output of 30 shipments per week.

A review of his turnover over the last 8 weeks show the following information collected in Table 6b:

B] To see if there is any relationship between staff turnover and defective shipments, develop a scatter diagram using the variable turnover (this can be calculated by adding the number of new hires to the number of terminations) and the number of defective shipments.

Does your diagram depict a relationship between these two variables?

Table 6a: AC Electrical Generators - Defective shipments Reason for defective shipment Week No. of No. of Incorrect Incorrect Damaged Trucks shipments shipments Bill of truck load product late with defects Lading 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 Table 6b: Labour turnover for AC Electrical Generators Week No. of new hires No. of terminations Total no. of employees 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