Quality Management in the Contemporary Business Environment, Essay

Excerpt from 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
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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

7

105,863

8

163,746

9

183,134

10

205,348

11

265,599

12

197,901

13

113,093

14

219,758

15

192,949

16

174,363

17

80,148

18

212,387

Process Average

168,671

The data collected within the 18 weeks sales reveal the variation of high of 265,599 to a low of 80,148, and the X-Bar or the average weekly sales is 168,671. Using this data, the paper calculates the moving average as being revealed in Table…

Sources Used in Documents:

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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