Kenora Electric Generators has been getting many complaints from its major custo
ID: 372142 • Letter: K
Question
Kenora Electric Generators has been getting many complaints from its major
customer, Home Station, about the quality of its shipments of home generators.
Daniel Magill, 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 SHIPMENTS
NO SHIPMENTS WITH DEFECTS
INCORRECT BOL
INCORRECT TRUCK LOAD
DAMAGED PRODUCT
TRUCKS 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 HIRES
NO OF TERMINATIONS
TOTAL NO OF 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.
d. Draw a fish-bone chart showing the possible causes of the defective
shipments.
REASON FOR DEFECTIVE SHIPMENT
WEEK
NO OF SHIPMENTS
NO SHIPMENTS WITH DEFECTS
INCORRECT BOL
INCORRECT TRUCK LOAD
DAMAGED PRODUCT
TRUCKS 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
Explanation / Answer
D- Draw a fish-bone chart showing the possible causes of the defective shipments.
It is a cause & effect tool that helps understand the causes of the problem by root cause analysis –i.e., to identify the root cause of the problems.
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