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Quality Management In The Contemporary Business Environment, Essay

Quality Management In the contemporary business environment, business control chart is very critical to enhance continuous business process and business improvement. The use of statistical process control charts (SPC) is very critical to enhance improvement and quality of products and service. Process control chart is a statistical tool that allows business to record data regarding the performances of business process on a regular basis. The data may be recorded hourly, weekly or on daily basis. The major objective for using SPC is to compare the present product performances with the past product performances and allow a business to prevent defective materials. Thus, SPC is powerful tool to enhance continuous business improvement. (Harrington, 2009).

Objective of this paper is to use the control chart process to determine the weekly sales process of Ford Motor Company.

X Bar and R. Process Control Charts for Weekly Sales of Ford Motor

The charts are produced from the data collected referred to X-Bar and R. chart. X-Bar is calculated from the average of 18-week sale's sample while the R. is the range between the highest and lowest sample of data. The main objective of this chart is to measure the variations within the samples as well as comparing those variations between the samples. If the variations are consistence with the sample variations, the process is predictable and is in control.

The paper uses the X Bar R. Chart technique because this process is ideal statistical process control. This technique takes the sample data and calculates the average or the arithmetic mean, and measure the difference between the largest and the smallest sample. As being revealed in Table 1, the paper provides the 18-week sales of Ford auto-car to determine the R. Chart.

Table 1: 18-Week Sales

Weekly Sales X and R. chart

Weekly Sales X

1

104,679

2

115,537

3

134,696

4

177,393

5

205,437

6

184,038

Using this data, the paper calculates the moving average as being revealed in Table 2.
Table 2: Moving Average

Weekly Sales X and R. Chart

Weekly Sales X

Moving Range R

1

104,679

2

115,537

10,858

3

134,696

19,159

4

177,393

42,697

5

205,437

28,044

6

184,038

21,399

7

105,863

78,175

8

163,746

57,883

9

183,134

19,388

10

205,348

22,214

11

265,599

60,251

12

197,901

67,698

13

113,093

84,808

14

219,758

106,665

15

192,949

26,809

16

174,363

18,586

17

80,148

94,215

18

212,387

132,239

Process Average

168,671

52,417

From the table 2, R-Bar is equal to 52,417 revealing that the process is in control. The paper calculates the control limit to determine whether the process is in control. The control limits are…

Sources used in this document:
References

Florida Department of Health (2011). Basic Tools for Process Improvement Module 10. Control Chart. Florida. USA.

Harrington, H, J. (1991). Business Improvement Process: The Breakthrough Strategy for Total Quality Productivity, and Competitiveness. McGraw-Hill Professional. UK.
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