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© The McGraw-Hill Companies, Inc., 2003 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook

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Page 1: Bahan Quality Management

© The McGraw-Hill Companies, Inc., 2003

DAVIS

AQUILANO

CHASE

PowerPointPresentation

byCharlieCook

Page 2: Bahan Quality Management

Introduce those individuals, often referred to as quality gurus, who have played a significant role in the evolution of quality management, and describe their specific contributions.

Identify the different dimensions of quality as they relate to both good and services.

Define the various elements that comprise the cost of quality.

Describe the more successful management quality initiatives such as total quality management (TQM) and Six Sigma.

Present the various quality awards and recognition that promote and encourage firms to provide high quality goods and services.

Page 3: Bahan Quality Management

Defining quality from the customer’s perspective. Constant increases in the level of quality of

today’s goods and services. Identifying quality dimensions that are most

important to customers. Avoiding the costs of poor quality products and

services. Customer loyalty that is increasingly based on

quality.

Page 4: Bahan Quality Management

Total quality management (manajemen kualitas total) may be defined “managing the entire organization so that it excels on all dimension of products and services that are important to the costumer”

It has two fundamental operational goal, 1. Careful design of the product and service2. Ensuring that the organization’s system can consitently produce the design

These two goals can only be achieved if the entire organization is oriented toward them—hence theterm quality management.

TQM became national system in the united states in the 1990, primarily as a response to Japanese quality superiority in the manufacturing automobiles and other durable goods such as room air conditioners.

A widely cited study of Japanese and U.S air conditioning manufacturers showed that the best-quality American Products had higher product average defect than those of the poorest Japan manufacturers.

Page 5: Bahan Quality Management

The roots of Total Quality Management (TQM) can be traced back to early 1920s when statistical theory was first applied to product quality control. This concept was further developed in Japan in the

40s led by Americans, such as Deming, Juran and Feigenbaum. The focus widened from quality of products to quality of all issues within an organisation – the start of TQM.

The following shows the history of Total Quality Management, from inspection to quality award

Inspection Quality Control and Statistical Theory Quality in Japan Total Quality Management Quality Awards

Page 6: Bahan Quality Management

Quality in Japan

Inspection involves measuring, examining, and testing products, process and services against specified requirements to determine conformity.

During the early years of manufacturing, inspection was used to decide whether a worker’s job or a product met the requirements; therefore, acceptable.

It was not done in a systematic way, but worked well when the volume of production was reasonably low. However, as organisations became larger, the need for more effective operations became apparent.

InspectionInspection

Quality control and statistical

theory

Total Quality Management

Quality Award

Page 7: Bahan Quality Management

In 1911, Frederick W. Taylor helped to satisfy this need. He published ‘The Principles of Scientific Management’ which provided a framework for the effective use of people in industrial organisations. One of Taylor’s concepts was clearly defined tasks performed under standard conditions. Inspection was one of these tasks and

was intended to ensure that no faulty product left the factory or workshop;

focuses on the product and the detection of problems in the product;

involves testing every item to ensure that it complies with product specifications;

is carried out at the end of the production process; and relies on specially trained inspectors.

This movement led to the emergence of a separate inspection department. An important new idea that emerged from this new department was defect prevention, which led to quality control.

Inspection still has an important role in modern quality practices. However, it is no longer seen as the answer to all quality problems. Rather, it is one tool within a wider array. 

Quality in Japan

InspectionInspection

Quality control and statistical

theory

Total Quality Management

Quality Award

Page 8: Bahan Quality Management

Quality Control was introduced to detect and fix problems along the production line to prevent the production of faulty products. Statistical theory played an important role in this area.

In the 1920s, Dr W. Shewhart developed the application of statistical methods to the management of quality. He made the first modern control chart and demonstrated that variation in the production process leads to variation in product. Therefore, eliminating variation in the process leads to a good standard of end products.

Statistical Quality Control: ◦ focuses on product and the detection and control of quality

problems; ◦ involves testing samples and statistically infers compliance

of all products; ◦ is carried out at stages through the production process; and

relies on trained production personnel and quality control professionals.

Shewart’s work was later developed by Deming, Dodge and Roming.  However, manufacturing companies did not fully utilise these techniques until the late 1940s.

Quality in Japan

Inspection

Quality control and statistical

theory

Quality control and statistical

theory

Total Quality Management

Quality Award

Page 9: Bahan Quality Management

ASPEK KUALITAS: Kualitas Obyektif: kualitas produk merupakan realitas obyektif tentang

produk, independen dari keberadaan manusia. Kualitas Subyektif: kualitas produk relatif berdasarkan persepsi , perasaan

dan sense konsumenPioner and visionary of modern quality control (peta-peta kendali)

STATISTIKA DALAM PENGENDALIAN KUALITAS

Batas Kendali Atas

Batas Kendali Bawah

Garis Tengah Variasi alamiah, terkandung dalam proses & disebabkan oleh sebab-sebab umum (ada selama proses tidak diubah; tanggung jawab: manajemen). (cronic)

Variasi tak-alamiah, disebabkan oleh sebab-sebab khusus di luar proses, seperti material, pekerja, peralatan, dll. (sporadic)

Page 10: Bahan Quality Management

0

5

10

15

20

Defe

cts

Time

Historical Level

Improved Level

Chronic problem which can be economically eliminated

Sporadic departure from historical level

• Perubahan tiba-2 dari status quo;• Pendekatan perbaikan: pengendalian untuk

mengembalikan ke status semula.

• Perubahan yang berlangsung lama;• Pendekatan perbaikan: perubahan

status quo melalui perbaikan proses.

Masalah Sporadis:

Masalah Kronik:

Page 11: Bahan Quality Management

In the 1940s, Japanese products were perceived as cheep, shoddy imitations.

Japanese industrial leaders recognised this problem and aimed to produce innovative high quality products. They invited a few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim.

In the 1950s, quality control and management developed quickly and became a main theme of Japanese management.

The idea of quality did not stop at the management level. Quality circles started in the early 60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects of workplace, and make presentations to management with their ideas.

Quality in Japan

Quality in Japan

Inspection

Quality control and statistical

theory

Total Quality Management

Quality Award

Page 12: Bahan Quality Management

In the 1980s to the 1990s, a new phase of quality control and management began. This became known as Total Quality Management (TQM).

Having observed Japan’s success of employing quality issues, western companies started to introduce their own quality initiatives. TQM, developed as a catchall phrase for the broad spectrum of quality-focused strategies, programmes and techniques during this period, became the centre of focus for the western quality movement.

A typical definition of TQM includes phrases such as: customer focus, the involvement of all employees, continuous improvement and the integration of quality management into the total organisation.

Quality in Japan

Inspection

Quality control and statistical

theory

Total Quality ManagementTotal Quality Management

Quality Award

Page 13: Bahan Quality Management

Quality GurusIndividuals who have been identified as making a significant contribution to improving the quality of goods and services.Walter A. ShewhartW. Edwards DemingJoseph M. JuranArmand FeigenbaumPhilip CrosbyGenichi Taguchi

Page 14: Bahan Quality Management
Page 15: Bahan Quality Management
Page 16: Bahan Quality Management

• Philip Crosby is an American who promoted the phrases “zero defects” and “right first time”.

• “Zero defects” doesn’t mean mistakes never happen, rather that there is no allowable number of errors built into a product or process and that you get it right first time.

• Philip Crosby believes management should take prime responsibility for quality, and workers only follow their managers’ example. He defined the Four Absolutes of Quality Management.

• The Four Absolutes of Quality Management• Quality is conformance to requirements • Quality prevention is preferable to quality inspection• Zero defects is the quality performance standard• Quality is measured in monetary terms – the price of

non-conformance

ZERO DEFECT

Page 17: Bahan Quality Management

• Crosby's 14 Steps to Quality Improvement1. Management is committed to quality – and this is clear to all 2. Create quality improvement teams – with (senior)

representatives from all departments. 3. Measure processes to determine current and potential quality

issues. 4. Calculate the cost of (poor) quality 5. Raise quality awareness of all employees 6. Take action to correct quality issues 7. Monitor progress of quality improvement – establish a zero

defects committee. 8. Train supervisors in quality improvement 9. Hold “zero defects” days 10. Encourage employees to create their own quality improvement

goals 11. Encourage employee communication with management about

obstacles to quality 12. Recognise participants’ effort 13. Create quality councils 14. Do it all over again – quality improvement does not end

ZERO DEFECT

Page 18: Bahan Quality Management

Philip Crosby defined the Five characteristics of an“Eternally Successful Organisation1. People routinely do things right first time 2. Change is anticipated and used to advantage 3. Growth is consistent and profitable New products and services appear when needed 4.Everyone is happy to work there

Page 19: Bahan Quality Management

RANTAI REAKSI:

MANAJEMEN KUALITAS (MANAGEMENT OF PROFOUND KNOWLEDGE)

RE

WO

RK

DE

LAY

UT

ILIS

AS

I

PENINGKATAN PENINGKATAN KUALITASKUALITAS REDUKSI BIAYAREDUKSI BIAYA PENINGKATAN PENINGKATAN

PRODUKTIVITASPRODUKTIVITAS

PENINGKATAN PENINGKATAN DAYA SAINGDAYA SAING

PERTUMBUHAN PERTUMBUHAN USAHAUSAHA

Page 20: Bahan Quality Management

Advocated Statistical Process Control (SPC)› Methods which signal shifts in a process that will likely

lead to products and/or services not meeting customer requirements.

› Emphasized an overall organizational approach to managing quality.

› Demonstrated that quality products are less costly than poor quality products.

› Identified 14 points critical for improving quality.

The Deming Prize› Highest award for industrial excellence in Japan.

Page 21: Bahan Quality Management

1. "Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning.

2. "Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.

3. "Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.

4. "Move towards a single supplier for any one item." Multiple suppliers mean variation between feedstocks.

5. "Improve constantly and forever". Constantly strive to reduce variation.

6. "Institute training on the job". If people are inadequately trained, they will not all work the same way, and this will introduce variation.

7. "Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.

Page 22: Bahan Quality Management

8. "Drive out fear". Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organisation's best interests.

9. "Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

10. "Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.

11. "Eliminate management by objectives". Deming saw production targets as encouraging the delivery of poor-quality goods.

12. "Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction.

13. "Institute education and self-improvement". 14. "The transformation is everyone's job".

Page 23: Bahan Quality Management

Emphasized the importance of producing quality products through an approach focused on quality planning, control, and improvement.

Defined product quality as “fitness for use” as viewed by the customer in: (i) Quality of design, (ii) Quality of conformance, (iii) Availability, (iv) Safety, (v)Field use

Categorized the cost of quality as: (i) Cost of prevention, (ii) Cost of detection/appraisal,(iii) Cost of failure

Page 24: Bahan Quality Management

TRILOGI MANAJEMEN KUALITAS:

QUALITY QUALITY PLANNINGPLANNING

QUALITY QUALITY IMPROVE-IMPROVE-

MENTMENT

QUALITY QUALITY CONTROLCONTROL

• Penentuan segmen pasar;• Pemenuhan kebutuhan konsumen;• Pengembangan karakterisrtik produk

sesuai dengan keinginan konsumen;• Pengembangan proses yang dapat

menghasilkan karakteristik produk;• Transfer rencana operating forces.

• Evaluasi performansi produk;• Komparasi performansi aktual

& sasaran;• Tindakan terhadap perbedaan.

• Pembangunan infrastruktur;• Identifikasi proyek perbaikan;• Pembentukan tim proyek;• Menyediakan pelatihan SDM &

motivasi untuk: Diagnosis sebab Stimulasi penanganan Penetapan kendali untuk

mencapai goal

TRILOGI KUALITAS

Page 25: Bahan Quality Management

Design quality refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm.

The dimension of design quality

Design Quality

Conformance Quality

Quality at source

Dimensions of quality

Dimension Meaning

Performance Primary product or services characteristics

Features Added touches, bell and whistles, secondary carachteristics

Reliability/ durability

Consitency of performance over time, probability of failing, useful life

Serviceability Ease of repair

Aesthetics Sensory characteristics (sound, feel, look, and so on)

Perceived quality

Past performance and reputation

Page 26: Bahan Quality Management

A firm design product or services with certain performance characteristics and features based on what intended market expect.

Material and manufacturing process atributes can greatly impact the reliability and durability of a product company attempts to design a product or sevices that can be produced or delivered at reasonable cost.

The serviceability of the product may have great impact on the cost of a product or service to the costumer after the initial purchase is made; may impact the warranty and repair cost to the firm

Aesthetics may greatly impact the desirability of the product or service, in particular consumer products.

Consitency in the relative performance of the product compared to the state of the art this may be very important to the long run success of the product or servicess.

Design Quality

Conformance Quality

Quality at source

Dimensions of quality

Page 27: Bahan Quality Management

Conformance quality refers to the degree to wich the product or service design spesifications are met. Product can have high design quality but low conformance quality, and viece versa??????

Conformance Quality

Design Quality

Quality at source

Dimensions of quality

Page 28: Bahan Quality Management

Frequently discussed in the context of conformance quality that person who does the work takes responsibility for making sure that his/her output meets specification

Quality at source at product: responsibility of manufacturing management;

Quality at source at services firm: responsibility of branch operations management.

Quality at source

Design Quality

Conformance Quality

Dimensions of quality

Page 29: Bahan Quality Management

Dimensions of quality

Design Quality

Conformance Quality

Quality at Source

Measures

Dimension Product examples:Laser printer

Service exampleChecking account at a bank

Performance Page per minutesPrint density

Time to process customer requests

Features Multiple paper traysColor capability

Automatic bill paying

Reliability/durability

Mean time between failuresEstimated time to obsolescenceExpected life of major components

Variability of time to processKeeping pace with industry trends

Serviceability Availability of authorized repairs centersNumber of copies per print cartridgeModular design

Online reportsEase to getting udated information

Aesthetics Control button layoutCase styleCourtesy of dealer

Apperance of bank lobbyCourtesy of teller

Perceived quality

Brand name of recognitionRating in consumerReports

Endorsed by community leaders

Page 30: Bahan Quality Management

This issue was recognized by Joseph Juran, who wrotes about it 1951 in his Quality Control Handbook

There are number of definitions and interpretation of the term cost of quality › All the cost attributable to the production of quality that is not

100 percent perfect› Cost that are the difference between what can be expected

form excellent performance and the current costs that exist

How significant is the cost of quality??› It has been estimated at between 15 and 20 percent of every

sales dollar –the cost of reworking, scrapping, repeated service, inspections, tests, warranty, and other quality-related items

› Philip Crosby states that the correct cost for a well-run quality management program should be under 2.5 percent.

Page 31: Bahan Quality Management

The cost of quality are generally classified into four types:

Appraisal cost: costs of the inspection, testing, and other tasks to ensure that the product or process is acceptable

Prevention cost: the sum of all the costs to pevent defects, such as cost to identify the cause of the defect, to implement corrective action to eliminate the cause, to train personnel, to redisgn the product or system, and to purchase new equipment or make modifications.

Internal failure cost: costs for defects incurred within the system: scrap, rework,repair

External failure cost: costs for defects that pass through the system: warranty replacement, loss of customers or goodwill, handling complaints, and product repair.

Page 32: Bahan Quality Management
Page 33: Bahan Quality Management

Often increase in productivity occur by product of efforts to reduce cost of quality.

Example:› The bank developed this productivity measure for

the loan processing area: the number of tickets processed divided by resources required (labor cost, computer time, ticket forms).

› Before the quality improvement program, the productivity index was 0,2660 [( 2.080/($11,23 X 640 hours+$0,50x 2.600 forms+$500 for systems)]

› After the quality improvement project was completed, labor time fell to 546 hours and the number of form rose to 2100, for a change index to 0,3088, an increase in productivity of 16 percent

Page 34: Bahan Quality Management

Testing designs for their reliability in the lab and the field

Gathering performance data on products in the field & resolving quality problems in the field

Planning & budgeting the QC program in the plant

Designing & overseeing quality control systems & inspection procedures

Carrying out inspection activities requiring special technical knowledge to accomplish

Page 35: Bahan Quality Management

Six sigma refers to philosophy and methods such GE and Motorola uses to eleminate defects in their products and processes

A defect is a simply any component that does not fall within the customer’s specifiction limits; each step or activity in a company represents an opportunity for defects to occur and six sigma programs seek to reduce variation in the processes that lead to these defects.

A processes that is in six sigma control will produce no more than two defects out of every billion units.

One of benefits of sig-sigma thinking is that is allows managers to readily describe the performance of the process in term of variability and compare to different process using a common metric. This metrics is defects per million oppurtinities (DPOM)

000.000.1xunits of number unitx per error iesforopportunit of number

defects of numberDPMO

Page 36: Bahan Quality Management

Goals of Six Sigma› To reduce process variation to the point where

only 3.4 defects per million are produced by a process that involves a high volume of manufactured units or service transactions on a continuous basis.

› Provide a framework and methodologies to analyze and evaluate business processes and reduce waste.

Successful Implementation› Training and selection of the workforce› Impressive cost savings of program

Page 37: Bahan Quality Management

Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation?

Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation?

000,1DPMO 1,000,000 x

200,000 x 1

200

000,1DPMO 1,000,000 x

200,000 x 1

200

So, for every one million letters delivered this city’s postal managers can expect to have 1,000 letters incorrectly sent to the wrong address.

So, for every one million letters delivered this city’s postal managers can expect to have 1,000 letters incorrectly sent to the wrong address.

Cost of Quality: What might that DPMO mean in terms of over-time employment to correct the errors?

Cost of Quality: What might that DPMO mean in terms of over-time employment to correct the errors?

9-37

Page 38: Bahan Quality Management

Six Sigma Process Capability

SIGMA DPMO COPQ CAPABILITY

6 sigma 3.4 <10% of sales World Class

5 sigma 230 10 to 15% of sales

4 sigma 6200 15 to 20% of sales Industry average

3 sigma 67,000 20 to 30% of sales

2 sigma 310,000 30 to 40% of sales Noncompetitive

1 sigma 700,000

DPMO – Defects Per Million OpportunitiesCOPQ – Cost of Poor Quality

Page 39: Bahan Quality Management

LSL USL

Poor Process Capability

Very High Probability of Defects

LSL USL

Excellent Process

Capability

Very Low Probability of Defects

Very High Probability of Defects

Very Low Probability of Defects

LSL USL

Poor Process Capability

Very High Probability of Defects

LSL USL

Excellent Process

Capability

Very Low Probability of Defects

Very High Probability of Defects

Very Low Probability of Defects

Low SigmaLow Sigma High SigmaHigh Sigma

Page 40: Bahan Quality Management

DMAIC CYCLE (define, measure, analyze,improve, and control)

DMAIC CYCLE is more detailed version of the PDAC (plan, do, check, act) –that underly continous improvement (continous improvement, also called Kaizen, seeks continual improvement of machinery, materials, labor utilization, and production methods through application of suggestions and iedas of company teams)

Page 41: Bahan Quality Management

1. Define (D)

2. Measure (M)

3. Analyze (A)

4. Improve (I)

5. Control (C)

Customers and their priorities

Process and its performance

Causes of defects

Remove causes of defects

Maintain quality

Page 42: Bahan Quality Management

We are the maker of this cereal. Consumer reports has just published an article that shows that we frequently have less than 16 ounces of cereal in a box.

What should we do?

9-42

Page 43: Bahan Quality Management
Page 44: Bahan Quality Management

Upper Tolerance = 16.8

Lower Tolerance = 15.2

ProcessMean = 15.875Std. Dev. = .529

What percentage of boxes are defective (i.e. less than 15.2 oz)?

Z = (x – Mean)/Std. Dev. = (15.2 – 15.875)/.529 = -1.276

NORMSDIST(Z) = NORMSDIST(-1.276) = .100978

Approximately, 10 percent of the boxes have less than 15.2 Ounces of cereal in them!

9-44

Jika dari 1.000.000 produk berapa yang

cacat????Kira-kira berapa

sigma????

Page 45: Bahan Quality Management
Page 46: Bahan Quality Management

The analytical tools of six sigma have been used for many years in traditional quality improvement programs.

What makes their application to six sigma unique is the integration of these tools to corporatewide management system.

What tools???› Flowcharts, run charts, pareto charts, checksheets,

cause and effect diagrams

Page 47: Bahan Quality Management

Flowcharts: there are many types of flow charts SIPOC (supplier, input, process, output, customer) analysis.

SIPOC in essence is a formalized input-output model, used in the define stage of a project.

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Run charts the depict trend in data over time, and thereby help to understand the magnitude problem at define stage.

Can be used to identify when equipment or processes are not behaving according to specifications

Can be used to identify when equipment or processes are not behaving according to specifications

0.440.460.48

0.50.520.540.560.58

1 2 3 4 5 6 7 8 9 10 11 12Time (Hours)

Dia

me

ter

MEASUREMEASURE

Page 49: Bahan Quality Management

Pareto charts these charts help to break down a problem into relative contributions of its component. These are based on the common empirical finding that a large percentage of a problems are to due to a small percentage of causes.In example, 80% percent of customer complaints are due to late deliveries, which are 20 percent of the caused listed.

25%

50%

75%

100%

Page 50: Bahan Quality Management

Checksheets these are basic form that help standardize data collection. They are used to create histogram such as shown on the Pareto Chart.

Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

Monday

Can be used to keep track of defects or used to make sure people collect data in a correct manner

Can be used to keep track of defects or used to make sure people collect data in a correct manner

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Cause-and-effect diagramsalso called fishbone diagrams, they show hypothesized relationship between potential causes and problem under study.

EffectEffect

ManManMachineMachine

MaterialMaterialMethodMethod

EnvironmentEnvironment

Possible causes:Possible causes: The results or effectThe results or effect

Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)

ManMan

EFFECTEFFECT

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Page 53: Bahan Quality Management

Opportunity flow diagram these used to separate value added from non-value added steps in a process

Value added activities (Vertical steps) vs.

Non-value added activities (horizontal steps)

Value added activities (Vertical steps) vs.

Non-value added activities (horizontal steps)

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Control charts these are time sequenced charts showing plotted values of a statistic including a centerline average and one or more control limits.

Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality

Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality

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Others tools:› Failure mode and effect analysis (FMEA) this

structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process. It begins with identifying each element, assembly, or part of the process and listing the potential failure modes, potential cause, effects of each failure. A Risk priority number (RPN) is calculated for each failure mode. It is an index used to measure the rank importance of the items listed in the FMEA charts.

Page 56: Bahan Quality Management

High RPN items should be targetted for improvement firstHigh RPN items should be targetted for improvement first

FMEA suggests a recommended action to eliminate the failure conditions by assigning a responsible person or department to resolve…...

FMEA suggests a recommended action to eliminate the failure conditions by assigning a responsible person or department to resolve…...

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Severity ratingsCritical Safety hazard. Causes or can cause injury or death

Major Requires immediate attention. System is non-operational

Minor Requires attention in the near future or as soon as possible. System performance is degraded but operation can continue

Insignificant

No immediate effect on system performance

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Severity ratings

1 None Effect will be undetected by customer or regarded as insignificant

2 Very minor A few customers may notice effect and may be annoyed

3 Minor Average customers will notice effect

4 Very low Effect recognised by most customers

5 Low Products is operable, however performance of comfort or convinience items is reduced

6 Moderate Products is operable, however comfort or convinience items are inoperable

7 High Product is operable at reduced level of performance. High degree of customer dissastisfaction

8 Very High Lost of primary function renders product inoperable. Intolerable effects apparent to customer.May violate non-safety related governmental regulations. Repairs lengthyand costly.

9 Hazardous-with warning

Unsafe operation with warning before failure or non-conformance with government regulations. Risk of injury or fatality.

10

Hazardous-without warning

Unsafe operation without warning before failure or non-conformance with governnment regulations. Risk of injury or fatality.

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1 Unlikely ≤ in 1.5 million (≤ 0,0001%)

2 Low (few failures) 1 in 150.000 (≤ 0,001%)

3 1 in 15.000 (≤ 0,01%)

4 Moderate (occasional failures)

1 in 2.000 (0,05%)

5 1 in 400 (0,25%)

6 1 in 80 (1,25%)

7 High (repeated failure) 1 in 20 (5%)

8 1 in 8 (12,5%)

9 Very high (relatively consistent failure)

1 In 3 (33 %)

10 ≥1 in 2 (50 %)

Note: if a failure falls between two values, use the lower rate of occurrence. For example, if failure is 1 in 5, use rating of 8Note: if a failure falls between two values, use the lower rate of occurrence. For example, if failure is 1 in 5, use rating of 8

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1 Excellent: control mechanisms are foolproof

2 Very high; some question about effectiveness of control

3 High; unlikely cause or failure will go undetected

4 Moderately high

5 Moderate; control effective under certain conditions

6 Low

7 Very low

8 Poor; control is insufficient and causes or failures extremly unlikely to be prevented or detected

9 Very poor

10 Ineffective; causes or failures almost certainly not prevented or detected

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Design for experiments (DOE)› DOE, sometimes referred to as multivariate

testing,is a statistical methodology used to determining the cause and effect relationship between process variable (X) and the output variable (Y).

› DOE permits experimentation with many variables simultaneously through carefully selecting a subset of them.

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The following is a brief summary of the personnel practices that are commonly employed in six-sigma implementation

Executive leaders, who are truly commited to six sigma and who promote it throughout the organization, and champions, who take ownership of the process that are to be improved

Corporate training in Six-sigma concepts and tools. GE spend over a billion dollars training its professional workforce in the concepts. Now, virtually every proffesional in the organization is qualified in six sigma techniques.

Black belt: who coach or actually lead six sigma improvement teamMaster black belt: who receive-in depth training on statistical tools and process improvement (they perform many of same funcstion as black belt but for a larger number of teams)Green belt: who are employes who have received enough six-sigma training to participate in a team , or in some companies, to work individually on a small –scale project directly related to their own job.

Setting of stretch objectives for improvement Continous reinforcement and rewards.

Executive leaders, who are truly commited to six sigma and who promote it throughout the organization, and champions, who take ownership of the process that are to be improved

Corporate training in Six-sigma concepts and tools. GE spend over a billion dollars training its professional workforce in the concepts. Now, virtually every proffesional in the organization is qualified in six sigma techniques.

Black belt: who coach or actually lead six sigma improvement teamMaster black belt: who receive-in depth training on statistical tools and process improvement (they perform many of same funcstion as black belt but for a larger number of teams)Green belt: who are employes who have received enough six-sigma training to participate in a team , or in some companies, to work individually on a small –scale project directly related to their own job.

Setting of stretch objectives for improvement Continous reinforcement and rewards.

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A

Sponsor/ champion

Master Black Belt Black belt

or green belt

Improvement team

Improvement team

Sponsor/ champion

Master Black Belt

Black Belt

Green belt or team leader

Oversee/ Guide Project (s)

Oversee/ Guide Project (s)

Coach/ Support Project Leader

Coach/ Support Project Leader

Lead Project to SuccessLead Project to Success

Analyze &implement improvement

Analyze &implement improvement

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Two aspects of the shingo system in particular have received great attention. › How to accomplish drastic cuts in equipment setup times by

single-minute exchange of die (SMED)› The use of source inspection and the poka-yoke system to

achieve zero defect Shingo’s argument:

› SQC methods do not prevent defects. Although they provide information to tell us probabilistically when a defect will occur, they are after the fact.

› Central to Singo’s approach is the difference between errors and defects.

› Defects arise when people make errors. Even though errors are inevitable, defects can be prevented by providing workers with feedback on errors

› Feedback check: succesive check, self check, source inspection.

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Fail-safe procedures or devices (called poka-yoke). Poka yoke: (1) Prevent the worker from making an error that leads to a defect before starting the process or (2) gives rapid feedback of abnormalities in the process to worker in time to correct them.

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Strongly connected Connected

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Poka-Yoke Example (Placing labels on parts coming down a conveyor)

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Iso is the series of international quality standars that have been developed by the International Organization for Standardization.

More than 1000 countries now recognize the 9000 series. The idea the standarss is defects can be prevented through

the planning and application of best practices at every stage of business-from design through manufacturing and then installation and servicing.

These standards focus on identifying criteria by which any organization, regardless of weather it is manufacturing or service oriented, can ensure that product leaving its facility meets the requirement of its customers.

These standards ask a company to first document and implement its systems for quality management, and then to verify, by means of an audit conducted by an independent accredited third party, the complience of those systems to the requirement of the standards.

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Fundamentally these standards can be grouped into two categories:1. Requirement—These mandatory standards dictate what company

shall do. Companies become registered to or compliant with one of the requirement standards. There are four requirement standards ISO 9001 Model for quality assurance: design, development,

production, installation and servicing ISO 9002 Model for quality assurance: production, installation

and servicing ISO 9003 Model for quality assurance: final inspection and test IS0 10012 Requirement for measuring equipment

2. Guidelines---These assist a company to interpret the requirement standards, suggesting what a company should do. There are four guidelines: ISO 8402 Quality management and quality assurance

vocabulary ISO 9000 Guidelines for selection and use ISO 9004 Quality management and quality system elements ISO 10011 Guidelines for auditing quality systems ISO 10013 Guidelines for quality manual

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The principal standar: ISO 9001,9002, and 9003. These are requirements standars, and all of the

other standards within the series are related to these three.

ISO 9001 is the most comprehensive; devided into 20 specific elements, it provided a foundation for basic quality management and continous improvement.

ISO 9002 and ISO 9003 are derivatives of the 9001 requirement standard. Much work and expense may be needed to accredited at the highest level, which is 9001.

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Why is it important to become ISO 9000 certified?.......... There are three forms of certification:

The best certication of a firm is through third party.Once passed third party audit, a firm is certified and may registered and recorded as having achieved ISO 9000 status, and becomes part of registry of certified companies

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A standard approach to measure the gap between what customers expected and their perceptions of service provided in a service ecounter.

The size of the gap indicates where improvements should be made.

Dimensions of Service Quality

ReliabilityResponsibility

AssuranceEmpathyTangibles

Expected service

Perceive service

Perceived Service Quality1.Expectation exceeded ES<PS (Quality surprise)2.Expectation meet ES=PS(Satisfactionary quality)3.Expectation not met ES>PS (Unacceptable quality)

Word of mouth Personal needsPast

experience

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Word-of-mouthCommunications

Personal Needs Past experience

Expected Service

Perceived Service

ServiceDelivery

ExternalCommunicationsTo Customers

Service QualitySpecs

ManagementPerceptions of

Customer Expectations

CUSTOMER

PROVIDER

Gap 1

Gap 2

Gap 3

Gap 4

Gap 5

Reasons for the GapsGAP 1 Not knowing what customers expectGAP 2 The wrong service quality standardsGAP 3 The service performance gapGAP 4 When promises do not match actual deliveryGAP 5 The difference between customer perception and

expectation

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The Parasuraman, Zeithaml and Berry model.. Originally identified 10 dimensions of quality

and developed a list of 97 items on a seven point scale…

After testing and subsequent refinement (i.e. factor analysis) the list was collapsed into a 22-item questionnaire covering 5 dimensions..) called SERVQUAL

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Reliability : the ability to perform service as promised, both dependably, and accurately

Responsiveness: willingness to help customers promptly

Assurance : knowledge and courtesy of employee, as well as their ability to convey trust

Empathy: caring and individualized attention Tangibles: the appearance of physical facilities,

equipment, and personnel, as well as other factors affecting the sense such as noise and temperature

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Weigted servqual : the servqual procedure also permits assignment of importance weightings on each of five dimensions.Bank customers, for example, usually weight reliability heavely and tangibles lightly.

E-service quality:A new version of servqual, e-service quality, has been developed to evaluate service on internet. E-SQ is defined as the extent to which a web site facilitates efficien shopoing, purchasing, and delivery. Its dimensions: reliability, responsiveness, access, flexibility, ease of navigation, efficiency, assurance trust, security privacy, price knowledge, site asthetics, customization/ personalization.

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TANGIBLES 11%

EMPATHY 16%

RELIABILITY 32%

ASSURANCE 19%

RESPONSIVENESS

22%

77

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Relative Importance of Service Quality Dimensions [Study 2]Mean Number of Points Allocated out of 100 Points

37

9

1318

23

29

12

17

19

23

28

12

18

20

23

33

11

1519

23

32

14

1518

21

Computer Manufacturer All Companies Retail Chain

Auto Insurer Life InsurerReliability Responsiveness Assurance Empathy Tangibles

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Customer Web site

Requirements

Perceivede-SQ

PerceivedValue

Purchase/Repurchase

Management’s Beliefs

about Customer Requirements

Design and Operation

of the Web site

Marketingof the

Web site

DesignGap

InformationGap

Conceptual Model for Understanding and Improving e-Service QualityCustomer

Company

CommunicationGap

FulfillmentGap

Customer Web site

Experiences

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Promotion of High Quality Goods and Services› Malcolm Baldrige National Quality Award

(MBNQA) (United States)› Deming Prize (Japan)› European Quality Award (European Union)

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Fundamentals of Operations Management 4e© The McGraw-Hill Companies, Inc., 2003 6–81

Background› Established in 1987 to recognize total

quality management in American industry. Purpose

› Stimulate U.S. companies to improve quality and productivity.

› Establish guidelines and criteria to evaluate quality.

› Recognize those firms that improve their quality.

› Provide guidance in how to achieve quality.

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Kategori kepemimpinan merupakan pendorong utama untuk semua kategori. Kategori kepemimpinan bersama-sama dengan kategori manajemen strategik serta kategori fokus pada konsumen dan pasar akan membentuk tiga serangkai dorongan bagi perusahaan (driver triad).

Kategori kepemimpinan merupakan pendorong utama untuk semua kategori. Kategori kepemimpinan bersama-sama dengan kategori manajemen strategik serta kategori fokus pada konsumen dan pasar akan membentuk tiga serangkai dorongan bagi perusahaan (driver triad).

Kategori manajemen sumber daya manusia dan kategori manajemen proses akan membentuk usaha inti (work core) dari perusahaan, dan dari kedua kategori ini akan dihasilkan output yang dinyatakan sebagai kategori hasil-hasil bisnis.

Dalam model ini, kategori informasi dan analisis merupakan sistem saraf untuk seluruh sistem TQM, yang memberikan informasi dan umpan balik bagi semua kategori.

Kategori manajemen sumber daya manusia dan kategori manajemen proses akan membentuk usaha inti (work core) dari perusahaan, dan dari kedua kategori ini akan dihasilkan output yang dinyatakan sebagai kategori hasil-hasil bisnis.

Dalam model ini, kategori informasi dan analisis merupakan sistem saraf untuk seluruh sistem TQM, yang memberikan informasi dan umpan balik bagi semua kategori.

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Baldrige guidelines can be used to:› Help define and design a total quality

system.› Evaluate ongoing internal relationships

among department, divisions, and functional units within an organization.

› Assess and assist outside suppliers of goods and services to a company.

› Assess customer satisfaction.

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Japan Union of Scientist & Engineer (JUSE) memberikan Deming Prize Award (sejak1951) untuk individual dan organisasi yang memiliki kontribusi pada pengembangan kualitas.

Japan Productivity Center for Socio-Economic Development (JPC-SED) mengambil inisiatif untuk Japan Quality Award sejak 1995.

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European Foundation for Quality Management (EFQM)› Stimulate and assist European organizations

in quality improvement activities.› Support managers in the adoption of TQM.

EFQM Excellence Model› A non-prescriptive frame work based on

nine criteria that recognizes that there are many approaches to achieving sustainable excellence.

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Indonesia???