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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,

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 287 shipments have been turned in. They show the following over the past 8 weeks:

Week

No. of

Shipments

No. of

Shipments with Defects

1

23

10

2

31

11

3

30

11

4

39

13

5

35

12

6

42

14

7

43

15

8

44

16

a) Using the point drawing tool eight times, develop a scatter diagram using total number of shipments and number of defective shipments.

2.

Kathleen McFadden's restaurant in Boston, has recorded the following data for eight recent customers:

Customer

Number, i

Minutes from

Time Food

Ordered Until

Food Arrived

(yi)

No. of Trips

to kitchen

by Waitress

(xi)

1

10.25

4

2

10.75

4

3

13.00

4

4

8.75

2

5

7.00

2

6

10.00

4

7

15.00

6

8

11.00

5

a) Kathleen wants you to graph the eight points xi, yi, i=1, 2, ..., 8. She has been concerned because customers have been waiting too long for their food, and this graph is intended to help her find possible causes of the problem. Create the proper graph

b) This is an example of what type of graph?

3. MacDonald Products, Inc., of Clarkson, New York, has the option of

(a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or

(b) having the value analysis team complete a study.

If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 100,000 units at $560 each, with a probability of 0.78 and a 0.22 probability of 75,000 at $560. If, however, he uses the value analysis team (option b), the firm expects sales of 80,000 units at $750, with a probability of 0.64 and a 0.36 probability of 65,000 units at $750. Value engineering, at a cost of $95,000, is only used in option b. Which option has the highest expected monetary value (EMV)?

Part 2

The EMV for option a is_____ and the EMV for option b is _____

Therefore, option a b has the highest expected monetary value. (Enter your responses as integers.)

4.

Develop a Pareto chart of the following causes of poor grades on a test

Number

Reason for Poor Grade

Frequency

1

Insufficient time to complete

16

2

Late arrival to test

8

3

Difficulty understanding material

21

4

Insufficient preparation time

3

5

Studied wrong material

4

6

Distractions in test room

7

7

Calculator batteries died during test

2

8

Forgot test was scheduled

1

9

Felt ill during test

5

Part 2

Choose the correct Pareto chart below.

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