MID

306
Manajemen Operasional Pendahuluan/Bahan kajian

Chapter 6 –
Managing Quality

Fasilitator :
Tiena Gustina Amran, Ir,PhD

Program Studi Magister Teknik Industri

Fakultas Teknologi Industri 2020
© 2006 Prentice Hall, Inc. Universitas Trisakti 6–1
 Outline
 Hyundai : Kissing Clunkers Goodbye
 Quality And Strategy
 Defining Quality : The Dimension of Quality
 Product Quality
 Service Quality
 Responsibility for Quality
 Benefits of Good Quality
 The Consequences of Poor Quality
 National Quality Award - The Deming Prize
 Cost of Quality (COQ)

© 2006 Prentice Hall, Inc. 6–2

 Outline – Continued

 Ethics and Quality Management

 International Quality Standards
 ISO 9000
 ISO14000
 ISO 24700
 GRS (Global Recycle Standard)

© 2006 Prentice Hall, Inc. 6–3

 Outline – Continued
 Total Quality Management
 Continuous Improvement
 Competitive Benchmarking
 Employee Empowerment
 Team Approach
 Decisions based on facts rather than opinions
 Knowledge of tools
 Supplier Quality
 Champion
 Quality at the source
© 2006 Prentice Hall, Inc.
 Suppliers 6–4
 Outline – Continued
 Problem Solving and Process Improvement
 The Plan-Do-Study-Act Cycle
 Six Sigma
 Quality Tools
 Flowcharts
Check Sheets
 Histograms
 Pareto Analysis
 Scatter Diagrams
Control Charts
Cause and effect Diagrams
 Run Charts
© 2006 Prentice Hall, Inc. 6–5
 Outline – Continued
Additional tools that are useful for
problem solving and/or for process
improvement
Methods for Generating Ideas :
✓ Brainstorming,
✓ Quality circles,
✓ Benchmarking.

© 2006 Prentice Hall, Inc. 6–6

 Learning Objectives
When you complete this chapter, you
should be able to:
Identify or Define:
 Quality
 National Quality Award - The Deming Prize
 ISO International Quality Standards
 Kaizen Concepts

© 2006 Prentice Hall, Inc. 6–7

 Learning Objectives
When you complete this chapter, you
should be able to:
Explain:
 Why quality is important
 Total Quality Management (TQM)
 Ten tools of TQM
 Shewhart, Deming, Juran, Feigenbaum,
Crosby, Ishikawa, Taguchi, Ohno and
Shingo

© 2006 Prentice Hall, Inc. 6–8

 Managing Quality Provides a
Competitive Advantage
HYUNDAI MOTOR :
“KISSING CLUNKERS GOODBYE”
 The Goals : Hyundai Quality of its cars to “Toyota
Levels”
 Virtually every type of quality tool is employed
 Continuous improvement
 Employee empowerment
 Benchmarking
 Customer Focus
© 2006 Prentice Hall, Inc. 6–9
 Operation Strategy
 Quality and Productivity is positive link for
achieving high quality
 Quality helps firms to get a potential
customers and never ending journey for
continual improvement
 Building a total quality management is
majority from all process

© 2006 Prentice Hall, Inc. 6 – 10

 Ways Quality Improves
Productivity
Sales Gains Supply chain
 Improved response  Minimize Defect
 Higher Prices  Long lead times
 Improved reputation  Good Services and
Deliveries

Reduced Costs
 Increased productivity
 Lower rework and scrap costs
 Lower warranty costs
Figure 6.1

© 2006 Prentice Hall, Inc. 6 – 11

 Ways Quality Improves
Productivity
QUALITY AND THE SUPPLY CHAIN

Tighter control of vendors and worker training can

reduce these risks. Variation results from processes that
are not in control; it can be reduced through statistical
quality control.
~ Stevenson - Operations Management 13th Edition 2018

© 2006 Prentice Hall, Inc. 6 – 12

 The Flow of Activities
Organizational Practices
Leadership, Mission statement, Effective operating
procedures, Staff support, Training
Yields: What is important and what is to be accomplished

Quality Principles
Customer focus, Continuous improvement, Benchmarking,
Just-in-time, Tools of TQM
Yields: How to do what is important and to be
accomplished
Employee Fulfillment
Empowerment, Organizational commitment
Yields: Employee attitudes that can accomplish
what is important
Customer Satisfaction
Winning orders, Repeat customers
Yields: An effective organization with
Figure 6.2 a competitive advantage

© 2006 Prentice Hall, Inc. 6 – 13

 Defining Quality

Quality, The ability of a product or

service to consistently meet or exceed
customer expectations.

Stevenson

© 2006 Prentice Hall, Inc. 6 – 14

 Different Views
 User-based – better performance,
more features
 Manufacturing-based –
conformance to standards,
making it right the first time
 Product-based – specific and
measurable attributes of the
product

© 2006 Prentice Hall, Inc. 6 – 15

 Implications of Quality
1. Company reputation
 Perception of new products
 Employment practices
 Supplier relations
2. Product liability
 Reduce risk
3. Global implications
 Improved ability to compete
© 2006 Prentice Hall, Inc. 6 – 16
 Key Dimensions of Quality

 Performance  Reliability
 Aesthetics  Durability
 Special Features  Perceived quality
 Conformance  Servicebility
 Consistency

© 2006 Prentice Hall, Inc. 6 – 17

 The Deming Prize National
Quality Award
 Named honor by W. Edward Deming, Established in 1989 by the
Japanese firms

 Focus of the judging on statistical quality control and more on

customer satisfaction

 Recent winners
1. Florida Power and Light became the first U.S. company to win the
award (U.S - based power utility company serving, It generates,
transmits, distributes and sells electric energy.)
2. Siemens Gamesa Renewable Power (India - working to provide the
world's best offshore and onshore wind turbines and services.)
3. Shiroki Corporation (Japan - car body parts manufacturer)

© 2006 Prentice Hall, Inc. 6 – 18

 Kaizen

The Japanese use the

term kaizen to refer to
continuous improvement.

This resulted in a strong

interest in the continuous
improvement approach.

© 2006 Prentice Hall, Inc. 6 – 19

 Costs of Quality
 Prevention costs Costs of preventing defects from
occurring.

 Failure costs Costs caused by defective parts or

products or by faulty services.
 Internal failures Failures discovered during
production.
 External failures Failures discovered after delivery to
the customer.
 Return on quality An approach that evaluates the
financial return of investments in quality.

© 2006 Prentice Hall, Inc. 6 – 20

 Costs of Quality
Total Cost
Total Return on quality
Cost

Quality Improvement

© 2006 Prentice Hall, Inc. 6 – 21

 International Quality
Standards
 ISO 9000 series (Europe/EC)
A set of international standards on quality
management and quality assurance, critical to
international business.
8 QMS Principles
5. A system approach to
1. Customer focus
management
2. Leadership
6. Continual improvement
3. Involvement of people
7. Use of a factual approach
4. A process approach
to decision making
8. Mutually beneficial
© 2006 Prentice Hall, Inc. supplier relationships 6 – 22
 ISO 14000
Environmental Standard
Three major standard for ISO 14000
certification :
 Management systems
 Operations
 Environmental systems

© 2006 Prentice Hall, Inc. 6 – 23

 ISO 24700
Quality and performance of office equipment
that contains reused components

 Perfomance Virgin Material

 Upgrades ISO 9000

 Testing New
Product
 Quality
 Safety and Electromagnetic Recycle Material
emissions ISO 24700
 Warranties
 Service
 Environmental
Responsibility
 Supplier Declaration
 Documentation

© 2006 Prentice Hall, Inc. 6 – 24

 GRS
Global Recycle Standart

The Global Recycled Standard is a holistic certification for

products with recycled content.

Guidance include following selected criteria of the Recycled

standard :
1. Recycled Material Requirements
2. Supply Chain Requirements
3. Social Policy and Requirements
4. Environmental Management System and Requirements
5. Chemical Requirements
6. Tools, Resources,
7. Reclaimed Material Supplier Agreement
8. Waste Management

© 2006 Prentice Hall, Inc. 6 – 25

 Leaders in Quality

Walter a Shewhart W.-Edward-Deming

W.-Edward-Deming
Control charts; Quality is fitness-for-
variance reduction Deming’s 14 Points
use; quality trilogy

Kaory Ishikawa
Armand Feigenbaum Philip B. Crosby
Cause-and-effect
Quality is a total field; the Quality is free; zero diagrams; quality circles
customer defines quality defects
© 2006 Prentice Hall, Inc. 6 – 26
 Leaders in Quality

Walter a Shewhart Taichi Ohno and Shigeo Shingo

Control charts; Philosophy and methods of kaizen
variance reduction
Continuous improvement

© 2006 Prentice Hall, Inc. 6 – 27

 Ethics and Quality
Management
 Operations managers must
deliver healthy, safe, quality
products and services
 Poor quality risks injuries,
lawsuits, recalls, and regulation
 Organizations are judged by
how they respond to problems

© 2006 Prentice Hall, Inc. 6 – 28

 TQM

A philosophy that involves everyone

in an organization in a continual
effort to improve quality and achieve
customer satisfaction.

© 2006 Prentice Hall, Inc. 6 – 29

 Deming’s Fourteen Points
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop
depending on inspection
4. Build long term relationships based on
performance, not price
5. Continuously improve product, quality,
and service
6. Start training
7. Emphasize leadership
Table 6.1
© 2006 Prentice Hall, Inc. 6 – 30
 Deming’s Fourteen Points
8. Drive out fear
9. Break down barriers between
departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of
education and self-improvement
14. Put everybody in the company to work
on the transformation
Table 6.1
© 2006 Prentice Hall, Inc. 6 – 31
 Ten Concepts of TQM

 Continuous improvement  Knowledge of tools.

 Competitive benchmarking  Supplier quality
 Employee empowerment  Champion
 Team Approach  Quality at the source
 Decisions based on facts  Suppliers
rather than opinions

© 2006 Prentice Hall, Inc. 6 – 32

 Continuous Improvement

Continuous improvement Philosophy that

seeks to make never-ending improvements
to the process of converting inputs into
outputs.

© 2006 Prentice Hall, Inc. 6 – 33

 Shewhart’s PDCA Model

1.Plan
4. Act Identify the
Implement improvement
the plan and make
a plan

3. Check 2. Do
Is the plan Test the
working? plan

Figure 6.3

© 2006 Prentice Hall, Inc. 6 – 34

 Six Sigma
 Originally developed by Motorola, Six Sigma refers
to an extremely high measure of process
capability
 The term Six Sigma has several meanings.
Statistically, Six Sigma means having no more
than 3.4 defects per million opportunities in any
process, product, or service.
 A business process for improving quality, reducing
costs, and increasing customer satisfaction.
© 2006 Prentice Hall, Inc. 6 – 35
 Six Sigma
1. Define critical outputs
and identify gaps for DMAIC Approach
improvement
2. Measure the work and
collect process data
3. Analyze the data
4. Improve the process
5. Control the new process to
make sure new performance
is maintained
© 2006 Prentice Hall, Inc. 6 – 36
 Six Sigma Implementation
 Emphasize DPMO as a standard metric
 Provide extensive training
 Focus on corporate sponsor support
(Champions)
 Create qualified process improvement
experts (Black Belts, Green Belts, etc.)
 Set stretch objectives

This cannot be accomplished without a major

commitment from top level management

© 2006 Prentice Hall, Inc. 6 – 37

© 2006 Prentice Hall, Inc. 6 – 38
© 2006 Prentice Hall, Inc. 6 – 39
 Employee Empowerment
Giving workers the responsibility for improvements
and the authority to make changes to accomplish
them provides strong motivation for employees.
This puts decision making into the hands of those
who are closest to the job and have considerable
insight into problems and solutions

© 2006 Prentice Hall, Inc. 6 – 40

 Quality Circles
Groups of workers who meet to discuss ways of
improving products or processes.

Quality circles have had very little authority to implement

any but minor changes; continuous improvement teams
are sometimes given a great deal of authority.

Consequently, continuous improvement teams have the

added motivation generated by empowerment.

© 2006 Prentice Hall, Inc. 6 – 41

 Benchmarking
Benchmarking is an approach that can inject new energy into
improvement efforts.

Benchmarking Process of measuring performance against the

best in the same or another industry.

The benchmarking process usually involves these steps:

1. Identify a critical process that needs improvement
2. Identify an organization that excels in the process
3. Contact the benchmark organization, visit it, and study the
benchmark activity.
4. Analyze the data.
5. Improve the critical process at your own organization.

© 2006 Prentice Hall, Inc. 6 – 42

 Quality Circles
Groups of workers who meet to
discuss ways of improving
products or processes

© 2006 Prentice Hall, Inc. 6 – 43

 Best Practices for Resolving
Customer Complaints
 Make it easy for clients to complain
 Respond quickly to complaints
 Resolve complaints on first contact
 Use computers to manage
complaints
 Recruit the best for customer
service jobs
© 2006 Prentice Hall, Inc. 6 – 44
 Tools of TQM

 Flowcharts.
 Check sheets.
 Histograms.
 Pareto Analysis.
 Scatter Diagrams.
 Control Charts.
 Cause-and-Effect Diagrams.
 Run Charts.

© 2006 Prentice Hall, Inc. 6 – 45

 Eight Tools for TQM
(a) Flowcharts.
A flowchart is a
visual representation
of a process

> SOP
> WI

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 46

 Eight Tools for TQM
(b) Check sheets.
A check sheet is a simple tool frequently
used for problem identification.

Record and organize data

> Checklist Maintenance Mesin
> Checklist QC Inspections

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 47

 Eight Tools for TQM
(c) Histogram A chart that shows an empirical
frequency distribution
> Review Employee performance
> Evaluation Customer Surveys
> Evaluation Supplier

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 48

 Eight Tools for TQM
(d) Pareto Charts: A diagram that arranges categories from
highest to lowest frequency of occurrence

To see a large percentage of the total number of cases

> Data complaints, defect, material reject, and waste.

Frequency

A B C D E
© 2006 Prentice Hall, Inc. 6 – 49
 Eight Tools for TQM
(e) Scatter Diagram
A graph that shows the degree and direction of
relationship between two variables
> Summary of sales
> Employee Turn Over

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 50

 Eight Tools for TQM
(f) Control chart
A statistical chart of time-ordered values of
a sample statistic

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 51

 Eight Tools for TQM
(g) Cause-and-effect diagram
A diagram used to organize a search for the
cause(s) of a problem; also known as a fishbone
diagram
> Root cause Produksi

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 52

 Eight Tools for TQM
(h) Run chart Tool for tracking results over a period of
time.

> Production Result

> Waste Record

Figure 6.5

© 2006 Prentice Hall, Inc. 6 – 53

 Inspection
 How much to inspect and how often
 At what points in the process inspection
should occur
 Whether to inspect in a centralized or on-
site location
 Whether to inspect attributes

© 2006 Prentice Hall, Inc. 6 – 54

 When and Where to Inspect
1. How much to inspect and how often
2. At what points in the process inspection should occur
3. Whether to inspect in a centralized or on-site location
4. Whether to inspect attributes (i.e., count the number of
times something occurs) or variables

Where to Inspect in the Process

1. Raw materials and purchased parts.
2. Finished products.
3. Before a costly operation.
4. Before an irreversible process.
5. Before a covering process.

© 2006 Prentice Hall, Inc. 6 – 55

 Taguchi Loss Function
Taguchi believes that any deviation from the target value
represents poor quality, and that the farther away from target a
deviation is, the greater

The implication for Taguchi is that reducing the variation

inherent in a process (i.e., increasing its capability ratio) will
result in lowering the cost of poor quality, and consequently, the
loss to society.

© 2006 Prentice Hall, Inc. 6 – 56

 Service Industry Inspection
What is
Organization Standard
Inspected
Making Potato Chips How to handle a used a system of conveyor belts with
Hanover York fragile potato chip gently vibrating slides and gently moved
County, PA, Amerika through the process.
Serikat Size of Potatoes
The potatoes were separated into big and
small sizes; and separate machine through
the process.
Jays company
(Now Snyders)
So pair of human inspectors gave the
Potato is rotten potatoes a quick squeeze as they moved
inside along a conveyor, and removed those likely
tohave rot.

The chips laser- Chips with dark spots or holes were

inspected. removed by a puff of air that knocked them
off the line, into a discard bin.

© 2006 Prentice Hall, Inc. 6 – 57

 Service Industry Inspection
What is
Organization Standard
Inspected
BAR CODES using bar scans the bar code attached to the
MIGHT CUT DRUG codes patient to see what drug is needed
ERRORS IN attached to and when
HOSPITALS patients’
wristbands

(more than 7,000 the drug’s bar code is scanned to

hospital patients using bar verify that the medication is correct.
die each year codes
because of drug attached at
errors) drugs

Table 6.4

© 2006 Prentice Hall, Inc. 6 – 58

 TQM In Services
Total quality management (TQM) A philosophy that involves everyone in
an organization in a continual effort to improve quality and achieve
customer satisfaction.
A number of other elements of TQM are important:
1. Continuous improvement.
2. Competitive benchmarking.
3. Employee empowerment.
4. Team approach.
5. Decisions based on facts rather than opinions.
6. Knowledge of tools.
7. Supplier quality.
8. Champion.
9. Quality at the source.
10. Suppliers

© 2006 Prentice Hall, Inc. 6 – 59

 Determinants of Service Quality
Dimensions of product quality don’t adequately describe service quality.
Service quality is often described using the following dimensions :

Convenience
Courtesy
Reliability
Tangibles
Responsiveness
Consistency
Time
Expectations
Assurance

© 2006 Prentice Hall, Inc. 6 – 60