Company A has been getting many complaints from its major customer. The manager decides to collect information on defective shipments through a form he has asked his drivers to complete on arrival at customers' stores. The records for the first 558 shipments have been turned in. They show the following over the past 8 weeks:

Week	No of shipments	No of defective shipments	Reason for defective shipment
			Incorrect Bill of Landing	Incorrect Truck Load	Damage Product	Truck Late
1	46	10	4	4	2	0
2	62	16	2	8	2	4
3	56	12	4	6	2	0
4	74	22	8	8	2	4
5	70	20	6	8	4	2
6	80	28	10	12	6	0
7	82	24	6	10	6	2
8	88	30	8	14	4	4

Even though the manager increased his capacity by adding more workers to his normal contingent of 60, he knew that he exceeded his regular output of 60 shipments per week for many weeks. A review of his turnover over the past 8 weeks shows the following:

Week	No of New Hires	No of Terminations	Total No of Workers
1	2	0	60
2	4	2	62
3	3	2	64
4	4	2	68
5	4	4	68
6	4	8	64
7	8	2	70
8	6	4	72

1. Develop a scatter diagram using the variable “ratio of shipments per manpower” (the number of shipments divided by the total number of workers) and the number of defective shipments. Explain the relationship between these two variables.

2. Develop a scatter diagram using the variable “turnover” (number of new hires plus number of terminations) and the number of defective shipments. Explain the relationship between these two variables.

3. Develop a Pareto chart for the type of defects that have occurred for the past 8 weeks.

4. Based on the analysis, interpret a), b), and c).

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Qa The relationship between the variables indicate that the increase in nu... View the full answer