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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:
week
# ship
# ship w/defects
incorrect bill of lading
incorrect truck load
damaged product
trucks late
1
23
5
2
31
8
4
3
28
6
37
11
35
10
40
14
7
41
12
44
15
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:
# new hires
# terminations
Total # of workers
0
30
32
34
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.
If the probabilities of D1 ,D2 and D3 are 0.2 ,0.5,and 0.3, respectively,then what choice should be made under expected value? what is the EVPI?
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There are two vendors who can supply you with empty cans used in your pickle business. One says he'll replace any cans you find defective free of charge.
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What is the efficiency rating of the current operation? If the company decides to use only one container, how many parts must it hold?
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