Scatter Diagram
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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. Shipments Shipments Incorrect Incorrect Damaged Trucks
with defects Bill of lading 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:
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?
In Excel please.
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Solution Summary
The solution describes the scatter diagram method for the identification of the relationship between two variables.
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